The size of the global wine industry ranged from $130-$180 billion in the beginning of the twenty-first century with an average growth rate of 1-2% per year since 1994. In general this market is very fragmented, because no company has reached more than one per cent of global retail sales in 2001. In order to describe this industry it is necessary to separate between two different wine-markets, the ‘New World’ and the ‘Old World’.
The international wine industry has been undergoing a significant restructuring. The ‘Old World’ producers such as Italy, France, Spain and Germany no longer dominate the global wine industry as they once did. No longer are the ‘New World’ producers such as Australia, New Zealand, South Africa and USA regarded with disrespect and underestimate.
However, there are still great differences between the two worlds regarding consumption, production and innovation. France, Italy and Spain share alone 75 percent of the worldwide wine production and consumption. A significant increase of the ‘New World’ production could be noticed during the last two decades. According to the World Wine Statistics the wine production has increased considerable especially in the ‘New World’ countries, from the average of 1997-2000 and 2001, for example, Australia by 34.77%, China by 57.03% and South Africa by 15.78% (for details please see Appendix, Table 1). Furthermore, we can see an expansion of the vineyard acreage in the ‘New World’ countries. Australia, for instance, has increased its acreage from 1991 to 1999 by 89.23% and the United States by 13.39% (please see Appendix, Table 3). Another significant increase of the wine consumption can be noticed in China with 52.88% in 2001 vs. 1997-2000 (please see Appendix, Table 2). From 2002 to 2003 the Global Wine market has shown a total increase of only 0.2% and has presented 2.45 billion cases.
These facts show the enormous growing competition in the wine industry. Especially the ‘New World’ producers were able to establish strong brands as well as to demonstrate a great wine quality through new technologies and intensive marketing. They are now taking market shares away from the ‘Old World’, which leads to the decline of the European wine market. In addition, it becomes harder to differentiate and emphasize this product. It is interesting to see how the table wine market is segmented.
Inhaltsverzeichnis (Table of Contents)
- ROBERT MONDAVI
- The Global Wine Industry
- Overview of the US Wine Market
- Robert Mondavi Corp.
- Competitive Forces
- Mondavi's Strengths and Opportunities
- Recommendations
- Confusing Image and Strategy
- Current Issues
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This case study analyzes Robert Mondavi Corporation and its position within the global and US wine markets. It examines the company's competitive landscape, strengths, and opportunities, ultimately aiming to provide recommendations for future success.
- The dynamics of the global wine industry, differentiating between "Old World" and "New World" producers.
- The evolution and current state of the US wine market.
- Robert Mondavi Corporation's brand image, market positioning, and competitive strategies.
- Analysis of the competitive forces impacting the wine industry.
- Identification of Robert Mondavi's strengths, weaknesses, opportunities, and threats.
Zusammenfassung der Kapitel (Chapter Summaries)
The Global Wine Industry: This section provides a broad overview of the global wine market, estimating its size and average growth rate. It highlights the fragmentation of the market and distinguishes between "Old World" (e.g., Italy, France) and "New World" (e.g., Australia, US) producers. Significant differences in consumption, production, and innovation are noted, with "Old World" producers still dominating production and consumption, yet "New World" producers experiencing substantial growth in recent decades, particularly in terms of production increases and vineyard acreage expansion in countries like Australia and the US, and consumption increases in China. The increasing competition within the industry is also emphasized, with "New World" producers establishing strong brands and leveraging new technologies and marketing strategies.
Overview of the US Wine Market: This section details the transformation of the US wine market, noting significant growth in retail sales from 1983 to 2003. It establishes the US's position as a major wine producer and consumer, with California dominating production. The analysis acknowledges a recent leveling-out of wine demand growth, influenced by increased competition and generational shifts, as well as the impact of external factors such as the September 11th attacks. Despite these challenges, the section points to signs of recovery in 2003, including growth in retail value and export markets, driven by factors like a weakening dollar and growing international recognition of California wine quality.
Robert Mondavi Corp.: This section introduces Robert Mondavi Corporation, highlighting its innovative approach and establishment of a high-end, luxury brand image. Founded in 1966, the company’s success in the global wine market is established, although further details on its specific strategies and market performance within the broader context of the industry are needed to complete the picture.
Schlüsselwörter (Keywords)
Global wine industry, Old World vs. New World producers, US wine market, Robert Mondavi Corporation, brand image, competitive forces, market analysis, wine production, wine consumption, market growth, competitive advantage.
Robert Mondavi Corporation Case Study: Frequently Asked Questions
What is the purpose of this case study?
This case study analyzes Robert Mondavi Corporation's position in the global and US wine markets. It examines the company's competitive landscape, strengths, opportunities, and provides recommendations for future success.
What are the key themes explored in the case study?
The study explores the dynamics of the global wine industry (distinguishing "Old World" and "New World" producers), the evolution of the US wine market, Robert Mondavi Corporation's brand image and competitive strategies, competitive forces impacting the wine industry, and an overall SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of Robert Mondavi.
What is covered in the chapter on "The Global Wine Industry"?
This chapter provides a broad overview of the global wine market, including its size, growth rate, and fragmentation. It differentiates between "Old World" and "New World" producers, highlighting differences in consumption, production, and innovation. The increasing competition within the industry, with "New World" producers leveraging new technologies and marketing strategies, is also emphasized.
What does the chapter on "Overview of the US Wine Market" discuss?
This section details the growth and transformation of the US wine market, particularly focusing on California's dominant role in production. It addresses the leveling-out of wine demand growth due to increased competition, generational shifts, and external factors (like 9/11). Despite challenges, the chapter highlights signs of recovery in 2003 driven by factors like a weakening dollar and growing international recognition of California wine quality.
What information is provided about Robert Mondavi Corporation?
This section introduces Robert Mondavi Corporation, highlighting its innovative approach and the establishment of a high-end, luxury brand image. While its success is acknowledged, the study indicates a need for further detail on its specific strategies and market performance within the broader industry context.
What are the key takeaways from the case study?
The study offers a comprehensive overview of Robert Mondavi Corporation within the context of the global and US wine markets. It highlights the complexities of the industry, the importance of brand image and competitive strategy, and the need for ongoing adaptation to succeed in a dynamic market environment.
What are the keywords associated with this case study?
Global wine industry, Old World vs. New World producers, US wine market, Robert Mondavi Corporation, brand image, competitive forces, market analysis, wine production, wine consumption, market growth, competitive advantage.
What is the overall structure of the case study?
The case study includes a table of contents, objectives and key themes, chapter summaries, and keywords. Each section provides a concise and structured overview of the key aspects of Robert Mondavi Corporation and its market position.
- Quote paper
- Vita Bataitis (Author), 2004, Case Study: Robert Mondavi and The Wine Industry, Munich, GRIN Verlag, https://www.grin.com/document/44474
