Diapositive 1

1
CROSS CULTURAL CHALLENGES IN THE EUROPE WIDE
MARKETING THE WINE INDUSTRY FRANCE- HUNGARIA-
BULGARIA
2
SUMMARY

• The Wine Industry
• Countries analysis
• The Hofstede model
• The French wine industry
• The Hungarian wine industry
• The Bulgarian wine industry
• Comparison of the 3 countries
• SWOT analysis

3

• The Wine Industry

• Wine grape  species and varieties
• Cultivation
• Wine regions  varieties
• Choosing a grape vineyard location
• The uses of wine
• The present and future of the wine sector in
  Europe
• The easternalization of the EU wine market

4
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

5
Location Where should we plant?

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

6
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
7
The Uses of Wine

• Apperitif (Appetizer Wines)
• Red Dinner Wines
• White Dinner Wines
• Sparkling Wines
• Table Wines
• Dessert Wines

8
European Union

• The European Union (EU) leads the wine sector in
  terms of
• 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".

9

• Countries Analysis

• The Hofstede model
• The French wine industry
• The Hungarian wine industry
• The Bulgarian wine industry

10

• The Hofstede Model

• 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)

11
France
12
Hungary
13
Bulgaria
14

• The French wine industry

• Background and Regions
• General aspects of wine in France
• Trends
• Economical aspects

15
Background Regions

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

16
Trends

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

17
Economical Aspects

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

18

• The Hungarian wine industry

• 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.

19
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

20
The Different Wine Producing Regions 21 wine
regions
21

• The Bulgarian wine industry

• Bulgaria is probably the oldest wine producing
  countrysome 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

22

• 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 

23
BULGARIAN VARIETIES OF WINE
OTHER VARIETIES

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

• Cabernet Sauvignon
• Merlot
• Pinot Noir
• Chardonnay
• Rkatziteli
• Muscat Ottonel
• Traminer
• Riesling

24

• 5 main producing regions
• North region
• The East region and the Black Seas shore
• The Under-Balkanises region (Centre)
• The South- West region
• The South region

• Exportation 70 of the countrys industrial
  production
• 785 470 hectolitres in 2002
• Importation40 282 hectolitres in 2002

25
Comparison of the 3 countries
26
Political
Economical
27
Social
Technological
28
Legal
29
The Hofstede analysis for our 3 countries
France/ Bulgaria
30
France/ Hungaria
31
Bulgaria/ Hungaria
32
SWOT analysis
33
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

34
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

35
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

36

• Conclusion

37
Thanks to Mr David CHELLY Me Mary Mc KINLEY Mr
François DESCHEEMAEKERE Mr Geert HOFSTEDE

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