The markets for quality wine are becoming more competitive as newer producers emerge and traditional producers improve their quality. The concept of terroir is one way to differenziate wines in a competitive market and to enhance producer income. However, differentiation of wines is insufficient to assure profitability. If producers are to exploit the concept of terroir they will need to develop a sound market plan that identifies and evaluates target markets, describes product attributes and how they meet consumer needs and wants, and establishes appropriate distribution and promotion programs. Both producers and their associations will need credible market research on which to base market decisions. Strategies that emphasize grabbing market share will not enlarge the wine market in the long term. A portion of promotional activities should be directed toward exanding all wine consumption.
Author: KIRBY MOULTON
Department of Agricuitural and Resource Economies, University of Califomia
207 Giannini Hall – Berkeley, CA 94720-3310