Analysis of the challenges of wine marketing

Domán, Szilvia

With the help of cluster analysis, three disparate categories may be identified among the businesses participating in this study: successful small businesses, problematic medium-sized enterprises and the market leaders, large businesses. Clearly the current situation, market behaviour and prospects for the three types of winemaking business categories differ considerably; consequently their strategies must also differ.

Medium-sized enterprises, which are too big to utilise the sales channels used currently (and for the foreseeable future) by small businesses, but are too small to have a presence in large retail chains as genuinely big businesses do, are in a critical situation. The uncertainties of large-scale and small trade together with underdeveloped networks present too great a market risk for them and consequently holds them back from the developments needed for expansion.

The future is not all that bright for small businesses either, because expanding their production holds little promise, while the traditional sales channels (direct to the buyer and the wine bars) are becoming increasingly uncertain as consumer demands change.

It is not accidental, therefore, that experts are encouraging small and medium-sized enterprises into co-operation of varying form, depth and direction, in which the advantages of network activities (concerted market presence, technological developments, innovations and investments, etc.) can be combined with the flexibility resulting from being small. The development of co-operative networks naturally involves governmental role (local, regional and national) primarily in supporting start-up conditions.

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