CROSS CULTURAL CHALLENGES IN THE CROSS CULTURAL CHALLENGES IN THE - - PowerPoint PPT Presentation

CROSS CULTURAL CHALLENGES IN THE CROSS CULTURAL CHALLENGES IN THE CROSS CULTURAL CHALLENGES IN THE CROSS CULTURAL CHALLENGES IN THE EUROPE WIDE MARKETING: EUROPE WIDE MARKETING: EUROPE WIDE MARKETING: EUROPE WIDE MARKETING: THE WINE INDUSTRY THE WINE INDUSTRY THE WINE INDUSTRY THE WINE INDUSTRY FRANCE FRANCE FRANCE FRANCE-

• HUNGARIA

HUNGARIA HUNGARIA HUNGARIA-

• BULGARIA

BULGARIA BULGARIA BULGARIA

SUMMARY

I. The Wine Industry II. Countries analysis 1. The Hofstede model 2. The French wine industry 3. The Hungarian wine industry 4. The Bulgarian wine industry III. Comparison of the 3 countries

• IV. SWOT analysis

1. Wine grape : species and varieties 2. Cultivation 3. Wine regions : varieties 4. Choosing a grape vineyard location 5. The uses of wine 6. The present and future of the wine sector in Europe 7. The easternalization of the EU wine market

• I. The Wine Industry

Wine Grape: Species and Varieties Thousands of grape varieties in wine industry Color Size Shape of berry Juice composition (including flavor) Ripening time Disease resistance. Vitis Vinifera? Variability in Color, taste, flavor

Sunlight Flora and fauna Soil and the lay of the land Climate

Location: Where should we plant?

Wine Regions: Varieties

Very important part in the label of wines.

The region of production Maturity of the fruit Variety of grape Year of production Also differentiated by color, sweetness, and aroma.

REGION In Europe

The Uses of Wine Apperitif (Appetizer Wines) Red Dinner Wines White Dinner Wines Sparkling Wines Table Wines Dessert Wines

The European Union (EU) leads the wine sector in terms of: a) Production: European vineyards about 45% 60% of world wine production b) Consumption: Almost 60% of world consumption c) Exports and Imports: Both world leading exporter and importer. Wine: Importance in final agricultural output + Community legislation : CAP

• “Quality wines produced in specific regions“
• “Table wines".

European Union

1. The Hofstede model 2. The French wine industry 3. The Hungarian wine industry 4. The Bulgarian wine industry

• II. Countries Analysis

• This model, created in 1967 by professor Hofstede is aimed at

understanding better the culture of an other country.

• “Geert Hofstede's research gives us insights into other cultures so

that we can be more effective when interacting with people in other countries.”

• Model based on 5 indexes which are:
• the power distance index (PDI)
• Individualism (IDV)
• Masculinity (MAS)
• Uncertainty avoidance index (UAI)
• Long-term orientation (LTO)
• 1. The Hofstede Model

France

Hungary

Bulgaria

20 40 60 80 100 PDI IDV MAS UAI

• 2. The French wine industry
• Background and Regions
• General aspects of wine in France
• Trends
• Economical aspects

Background & Regions

• France as a wine producing country
• The AC (Appellation Controlee system)
• The main regions ( Champagne, bordeaux…

etc)

Trends

• Consumption in France
• New tendencies
• Production
• Quality-Imports-Exports-Marketing

Economical Aspects

• Nominal Unit price
• Offer-demand
• Price declining
• Effects of new competitors

The Sector

• Introduction:
• Communism Era with Big Plants,
• Modern Methods and Tradition,
• Core of Hungarian Culture since 1000 years.
• Economical Aspects:
• Production in 2004: 4.5 million hectoliters (Increasing),
• Exports in 2004: 700,000 hectoliters (Decreasing)
• Political Issues:
• Not enough Financial supports,
• Not enough Marketing campaigns,.
• General Problems:
• Quality should be much higher,
• Lack of Marketing and Promotion.

3.The Hungarian wine industry

The Market

• The Impact of Hungarian Wine in Different Countries:
• Scandinavian,
• American,
• UK.
• The Impact of the EU Accession:
• Quality,
• Accession to foreign Markets.
• Consumer Behaviour:
• Spanish wines such as Sangria,
• Hungarian wines more and more « en vogue »,
• Social Criterion,
• Mid-to-low category of Hungarian wines are threatened

• The Different Wine Producing Regions: 21 wine

regions

• Bulgaria is probably the oldest wine producing

country:some wine was produced there between 6000 and 3000 years before JC

• With a hot climate and a varied geography, Bulgaria

produces quality wines and is generally seen as the most trustworthy of the Eastern countries in terms of wine production

• Under Communism: the 5th producing country, and the

2nd exporting country

3.The Bulgarian wine industry

Consumption and production

• An average of 5 litres per

person and per year

• Local « Quality Wines » bottles

between 2 and 4 euros

• In 2002, Bulgarian vineyard =

145 200 hectares (ie bigger than the Australian one!)

• Production in 2002 =

1 982 158 hectolitres. Average yield = 17, 29 Hl per hectare (a 4% increase since 2001)

• More than 200 types of wines

are produced: 24% as « Quality Wines », 76% as « Domestic Wines »

BULGARIAN VARIETIES OF WINE

Pamid Mavrud Gamza Chiroka melnishka loza (Melnik region) Rubin Dimyat Misket Vratchanski Misket

OTHER VARIETIES

Cabernet Sauvignon Merlot Pinot Noir Chardonnay Rkatziteli Muscat Ottonel Traminer Riesling

5 main producing regions:

• North region
• The East region and the Black

Sea’s shore

• The Under-Balkanises region

(Centre)

• The South- West region
• The South region

Exportation: 70% of the country’s

industrial production 785 470 hectolitres in 2002

Importation:40 282 hectolitres in 2002

III. Comparison of the 3 countries

Political

• The fall of the Iron Curtain

and the privatization of the caves: bad influence on the exports.

• Not a priority for the

Hungarian government,

• No real finacial support,
• No budget for wine

marketing.

• Diplomatic dinners, meetings:

wine is one of the pride of France. Bulgaria Hungary France

Economical

• Exports: from 140 million

euros in 1998 to 64 million euros in 2001(70% of its industrial production of wine (785,470 hectoliters in 2002, ie a 2% decrease)).

• Imports: increased between

2001 and 2002 (40,282 hectoliters in 2002, ie two times and a half more than the previous year).

• 2004’s production is

increasing (4.5 million hectoliters).

• 2004’s exports are declining

(700,000 hectoliters).

• Production is growing

(5,199,930 metric tons).

• Exports is falling (913.4

million bottles).

• Consumption is declining

(57.17 liters per capita per annum) Bulgaria Hungary France

Social

• Main alcoholic beverage: beer.
• But thanks to it strong image
• f wine producing country, the

wine consumption in Bulgaria is slowly but steadily growing.

• Wine is more and more “en

vogue” with Hungarian consumers.

• Usually young French people

prefer beer.

• And later they prefer to drink

wine.

Bulgaria Hungary France

Technological

• Privatization has also had a

very good effect: it enables Bulgarian wine growers to invest in good quality equipment as well as to introduce new ways

• f producing wine.
• Modern methods are associated

with traditional ones which give to the Hungarian wine its quality.

• The infrastructures are very
• modern. At the peak of its area.

Bulgaria Hungary France

Legal

• A law about wine and spirituous

beverages is applied since January 2001: according to this new regulation, Bulgarian wines are classified in different categories.

• Entrance in the European Union:

impact on the quality of the Hungarian wine through EU quality standards.

• Abolition of the custom duties

between the European countries.

• “Appellation d’Origine

Controllée”: guarantee the quality

• f French wine.
• Custom duties, product safety

and intellectual property: protect French wine.

Bulgaria Hungary France

The Hofstede analysis for our 3 countries: France/ Bulgaria

France/ Hungaria

Bulgaria/ Hungaria

IV. SWOT analysis

France

• Strenghts

– Famous, well known

• Weaknesses

– Marketing – Knowledge of foreign customer markets – Distribution channels – High Prices

• Opportunities

– EU enlargement (Single market) – Attractiveness of western products

• Threats

– Competition of new member states

Hungary

• Strenghts

– Quality and low prices – Modern techniques and EU standards – Foreign investments

• Weaknesses

– Marketing and promotion world wide – No subsidies from the State – Small sized national market – Hungarians habits

• Opportunities

– Purchasing power of Hungarians – EU accession

• Threats

– Competition of foreign quality wines

Bulgaria

• Strenghts

– Culture and Know-how – Modern infrastructures and Potential of production

• Weaknesses

– Not yet an EU member state – Lack of image – Bulgarians purchasing power and Bulgarians habits

• Opportunities

– Future EU accession – Foreign investments – Distribution networks – Consumer market potential

• Threats

– Social and Economical Bulgaria background – Competition of the New world producers

Conclusion

CASTRO Leopoldo FERRARA Elias FISCHER Mathieu GAILLY Maxime MATHIEU Marie SAKI Stéphanie

Thanks to: Mr David CHELLY Me Mary Mc KINLEY Mr François DESCHEEMAEKERE Mr Geert HOFSTEDE