Tatiana Trepalina

IBUS 699

Branding & Wine Tourism in Latin America and Asia

I. Overview and Observations

1.1 Branding: the definition of the term and description of the concept.

To understand branding it is important to know what brand is. The American Marketing

Association defines brand as “a name, term, design, symbol, or any other feature that identifies

one seller’s good or service as distinct from those of other sellers” (American Marketing

Association). A brand is the idea or image behind the specific product or service that consumers

can relate to, by identifying the name, logo, slogan, or design of the company who owns the idea

or image.

There are numerous definitions of branding from various respectful sources. Business

dictionary explains Branding as “the process involved in creating a unique name and image for a

product in the consumers' mind, mainly through advertising campaigns with a consistent theme.

Branding aims to establish a significant and differentiated presence in the market that attracts and

retains loyal customers” (Business dictionary). Another source defines it as “the marketing

practice of creating a name, symbol or design that identifies and differentiates a product from

other products” (Entrepreneur).

Product branding has become the most efficient technique to attract customers since the

competition became fierce due to increased number of products and services. In order to

differentiate the product from the competitors companies try to establish a standard on which

consumers can rely.

Moreover, by associating to a particular brand, a person can demonstrate a level of

success, and even boost person’s self-esteem (HVS, 2004).

Branding and brand management have been the leading areas of focus for both marketing

academics and practitioners during the final two decades of XX century and until nowadays.

Various articles and research papers have been written and conferences conducted on the subject

of brand and its global importance. ‘Brand recognition together with good reputation allows a

company to expand beyond original product and service and add value as well as revenue

generated by the original brand.

A review of the literature reveals a broad range of academic interest with regards to

locations, such as countries, cities, towns and regions as the focus of marketing activity.

1.2 Definition of the concept of “location branding”

The concept of location branding is not new to the world. Small and big cities, states,

provinces, regions and countries are trying to achieve competitive advantages by embracing

marketing strategies. The goal is to increase tourism which will attract new businesses and create

new jobs. However, only for the past two decades the term “location branding” got a wide

recognition. The practice of branding geographic locations is increasing, yet there is a lack of

published research on the topic.

As Hankinson claims in his paper on location branding cited in Kavaratzis work, “In

contrast to the marketing of locations, there are relatively few articles to be found in the

academic literature with regard to the promotion of the location as brand. This is in contrast to

the increasing evidence in the press that branding, at last as a concept, is increasingly being

applied to locations” He also suggests that there are three areas relevant to the study: The urban

planning perspective, the retail marketing perspective, and the tourism/vacation marketing

perspective (Kavaratzis, 2005).

From the urban planning perspective the importance of branding is “acknowledged

through the clear recognition of the need for a strategy to communicate and promote the image of

environmental meaning”

The implementation of the retail marketing perspective is that each organization (retailer)

markets and brands itself separately, and by doing so it potentially add to the overall brand image

and economic prosperity of the location (Hankinson 2001).

Finally, from the tourism perspective the location is a destination, a place to visit. The

understanding of branding in vacation/tourism marketing is probably the most developed.

However, the issue of control arises expressed in absence of control over visitor experience.

The reasoning behind location branding popularization.

Countless places formerly closed to the world have begun to invest in their branding

strategy in order to attract more tourists. Additionally, more and more countries, regions and

cities with strong worldwide recognition expanded their place branding (or rebranding) over the

past few years in order to stay on float and not let their potential customers to turn to the

competitors.

In order to attract new tourists some nations and cities have

developed taglines, slogans and even logos. Namely Turkey

which created a world’s recognized logo of a country, which

they place in advertisement commercials as well as on all kinds

of merchandize.

www.aegean-estates.com

The possible benefits of location branding:

• The major benefit is the increase in tourist activities which generates extra investment

inflow to the region resulting in job creation.

• Economic growth of a region due to attraction of new businesses. This includes

infrastructure development, better leaving conditions and recreation

• The overall positive changes foster a sense of pride among the community members.

However, there are also a number of challenges the location branding is facing:

• There is no owner of the brand since the brand is the place, but not a differentiated entity

like product or service

• Being a part of many other enterprises, location branding does not stand on its own.

• The uniqueness of location branding is in that it must cover many different target groups,

which is a challenge.

Nevertheless, location marketing and location branding techniques are “believed to

provide valuable tools for cities, regions and even nations to effectively manage their internal

and external opportunities and transform them into competitive advantages. Place branding is

steadily growing into an industry, which attracts significant amounts of investment” (Kavaratzis,

2005)

1.3 Definition the concept of “lifestyle branding”

A lifestyle brand is a brand that attempts to embody the values and aspirations of a group

or culture for purposes of marketing (Wikipedia)

People view the best lifestyles as a reflection of themselves. Consumers want brands to

stand for something. As a result, consumption turns into a sacred act due to special meaning attached to it.

(Birkner, 2011).

Possible benefits of a lifestyle branding:

• Financial benefit achieved by building a strong emotional long-term bond with the

consumer

• The instant endorsement of a new product because of the strength of the brand name and

customer loyalty.

• Due to instant endorsement lifestyle brands can achieve quicker return on investment by

launch new products at lower costs to the company

• Brand recognition and customer loyalty eliminates the need for expensive advertisind and

promotion (JUNG, MERLIN, 2002-2003)

Consumers are emotionally attached to an identifiable lifestyle, and by purchasing and using

particular brands he or she projects this lifestyle o society.

A good example of such a lifestyle brand would be Abercrombie and Fitch. For many

teenagers A&F is not just a brand, they define themselves through it, as in “I’m an Abercrombie

girl”. The brand became a part of identity. “Consumers do not simply buy A&F, they are A&F”

(Jung, Merlin, 2002-2003)

Another example would be Nike corporation. They started as a running shoe business

Nike extended to apparel, watches and audio equipment. However, most importantly, the

company provides an athletic lifestyle.

www.nike.com

Lifestyle branding makes consumers “envelop themselves into brand”. Although, “most

people who buy the brand are not part of that life, but they certainly identify with it, and that’s

the reason it has such great loyalty. Most lifestyle brands are aiming for aspiration because

they’re setting an expectation that most of us can’t ever achieve. You walk into the store, and it’s

almost a theme park around that lifestyle,” Vincent says, the group director of strategy at Siegel

+ Gale, a strategic branding and communications firm.

Luis Vuitton is a good example of a high-end French

retailer who exploits aristocratic, extravagant and luxurious

lifestyle which not everybody can afford, but many want to be

identified with.

www.frillr.com

Lifestyle branding achieves success by capitalizing on three main attributes which are:

• using a product with self expressive benefits

• implementing an integrated marketing communications (IMC) strategy and

• using range branding.

Self-expressive benefits becomes noticeable in a “social setting through the use of

"second-skin" products such as clothes, cars, cosmetics and drinks” (Jung, Merlin 2002-2003).

Those are the products or affecting personal image, and based on them a person can be

consciously or subconsciously evaluated by other society members.

The core of IMC strategy is that “companies must strategically integrate every point of

contact with important customers and stakeholders to build profitable relationships” (Gronstedt,

2000). For instance customers of A&F can feel the style as soon as they enter the store: from the

black and white posters, smell, lightning, to physical appearance of store employees.

Range branding is an expansion of one brand name across multiple product categories.

Unlike brand extension, range branding has one “carefully crafted identity that appears to one

psychographic group” (Jung, Merlin 2002-2003).

The methods used to create a lifestyle brand:

Many designer brands use national identity as a source of a lifestyle. Ralph Lauren

“crystallized the American style” (Gob, 2005). Ralph Lauren evokes images of a good life

through their beautiful commercials, lavish exterior architecture and interior design of their retail

stores

www.ralphlauren.com

Another big source of a lifestyle brand is subculture. Companies like Burton and

Quiksilver capitalized on marketing their products for snowboarding and surfing communities

(Beverland, Farrelly, Quester, 2010)

www.chowbaby.com

II. The concept and importance of wine tourism

Food and Wine historically have been “in the background of the tourist experience as a

part of overall hospitality service provided for travelers” (Novelli, 2005). However, today’s

tendency is that wine and food has become a central point and determinant factor for travel

decision making. Moreover, wine tasting grew into a hallmark attraction of a number of

destinations around the globe (Carlsen, 2004).

It was until mid nineteenth century that food and wine have been only a part of a tourist

experience. Gradually, wine became a travel product in its own, but at the initial stage the

number of tourists was insignificant due to time and monetary costs of mobility. Only in early

1970 with the improvement of technology resulted in development of means of transportation

wine tourism started to develop to any scale (Novelli, 2005).

For better understanding of the topic the wine tourism term has to to be defined. Wine

tourism described as “visitation to vineyards, wineries, wine festivals, and wine shows for which

grape wine tasting and/or experiencing the attributes of a grape wine region are the prime

motivating factors for visitors” (Hall, 1996). This definition emphasizes wine and wine related

activities as the main motives for visiting wine regions. However, “wine tourism experiences are

much more than merely drinking wine or enjoying the experience of wine” (Dodd, 1995;

Charters and Ali-Knight, 2000; Hall et al ., 2000 ; Charters and Ali-Knight, 2002 ; Mitchell and

Hall, 2004 ). It is often part of an overall ‘ bundle of benefits ’ that includes not only visiting

wineries and tasting wine, but also visiting the area, enjoying scenery and visiting other local

attractions (Cohen, Ben-Nun, 2009).

Moreover, wine tourism is a great way to gain understanding about local culture,

heritage, and customs of an area. Some of the wineries have a history going back to centuries or

even millennia, and the production and consumption of wine is deeply ingrained in the local

culture (Fetter)

2.1 Motivations of Wine Tourists.

The motivation of tourists visiting wine regions varies depending on interest, age and

nationality. Although, there ten major reasons why people go visit wineries:

• To taste wine

• To gain the knowledge about a product/ industry

• To experience wine setting , which can include meeting a wine

maker and tour to vineyards and vine cellars

• To enjoy the beauty of countryside, learn about farming and

agri-tourism

• To appreciate the combination of local food and wine. This

kind of vacation has its own name, which is culinary tourism.

• To enjoy yourself, have fun. More emphasis is put on festivals

and special events.

• To enjoy the romance and elegance of wine culture

• To appreciate agriculture and art

• To gain knowledge about “green” and eco-tourism

• To enjoy the health aspects of wine

www.vinoverve.com (Thach, 2007)

The research illustrates that visitor in New World wine regions (US, Australia, New

Zealand and South Africa) tend to be interested in tasting wine, gaining knowledge, and just

having fun. On the other hand the tourists going to European wineries tend to appreciate wine in

combination with local delicatessen and enjoy the ancient scenery of rural areas.

Additionally, the trend of agri- and eco-tourism is gaining popularity. Visitors of those

regions are willing to learn about grape cultivation and maintenance as well as sustainable

practices. (Thach, 2007)

Finally, the romance, elegance and culture of wine are good enough reasons for various

romance getaway weekends to a wine region (Carlsen, J. 2004).

The survey of Getz and Brown demonstrates that wine tourism in broader sense in

combination with cultural activities is more attractive than an all-wine vacation. The study of

Getz and Brown reveal five primary features which vineyard visitors take into account when

searching for a place to go.

Firstly, tourists take into consideration whether a winery is visitor

friendly or not. Secondly, it is important if the region is rich on

attractions and activities. Thirdly, visitors are concerned about

attractiveness of scenery. Fourthly, they would like to make sure

that winery staff is knowledgeable about wine. Finally, travelers

want to know if wineries are offering group tour options (Getz,

Brown, 2007).

www.blog.wine-tours-france.com

2.3 Benefits & Challenges of wine tourism for wineries in general.

The wine tours allow to winemakers to create personal relationships with customers,

which later can lead to the direct or indirect sales through positive “word of mouth”.

Furthermore, direct sales to the consumer results in increased margins due to reduction of

distributor costs. Additionally, producers gain marketing intelligence on products and

consumers through getting an instant and valuable feedback from the costumers. Besides that

winery serve as an additional sales outlet, it makes a big difference for small businesses. Finally,

winery visitations lead to brand awareness and loyalty due to establishing links between

producers and consumers, and purchasing of company branded merchandise (Novelli, 2005).

Besides its contribution to wineries, wine tourism considered to be an important element

in the tourism industry in that the sector experience develops through the investment inflow

which is the result of increasing number of new wineries (Sanders, 2004).

According to another study the wine tourism plays role of an initiator for regional

development which increases regional employment and economical advancement of an area.

(Carlsen, 2004).

However, besides the benefits of wine tourism there a number of challenges for wineries

in general. Charters and O’Neil (2000) point out on an insufficiency of empirical research on a

subject of customer needs of the wine tourist. Another major issue is that many winery operators

are lacking of service knowledge and experience. “They have entered the tourism and hospitality

arena intuitively and not in a strategic manner” (Macionis, 1998).

Additionally, the government support is important for the industry development. ACIL

Consulting suggests that “public infrastructure, signage, the creation of wine routes, and the need

for region-wide marketing initiatives are vital, as most wineries lack the funding or authority to

create their external tourism product independently” (Treloar, Hall, Mitchel, 2004).

Furthermore, wine tourism will not function without partnership within the community.

Strong cooperation with restaurants and hotels, police, medical agencies, employment services

and environmental groups is widely needed to support the growth of the wine tourism industry.

Finally, it is crucial to take a good care of the environment and rural beauty of the

vineyards so the region can keep its status of a wine destination (Thach, 2007).

2.4 Reasons for a growing interest in wine tourism in general (individuals’ perspective).

Wine tourism has been growing because of interest in wine in general. Additionally, in

many cases, government provides assistance to wine producers. The Resource Guide for start-up

suggests that “as government officials have become aware of the wine industry’s potential to

create economic opportunities in rural communities, they have increasingly supported initiatives

such as plantings of vines, other capital investments, and sales and marketing campaigns”.

Governments realized the benefits of wine production for the local economy. Hence, the

governments are promoting wine tourism realizing the returns it provides (Start-up Guide, 2004).

Another reason for the increase response to the wine industry is due to the change of

values in society resulted in increased interest in environmental issues. The ‘Green’ tourist

activities are gaining popularity due to increased interest in environmental issues. That is why

the agri- and eco-tourism are in trend (Thach, 2007).

III. Branding and Wine Tourism in the Latin America (focus mainly on Chile and

Argentina)

3.1 General description of the wine market in the Chile & Argentina

South America has the longest history of wine making than any other country in the New

World. However, for many years these two largest markets were underestimated by the wine

lovers. Nowadays both countries are among the largest producers of wine in the world. They are

making progress in improving quality of their wine and gradually taking one of top positions in

wine industry (Chandra, 2006).

3.2 Description of most active wine tourism regions in the Chile & Argentina

Chile major wine producing regions.

Chile is one of the largest wine producers and importers in the world. Despite the

country’s excellent natural conditions for wine

production, such as weather, soil, absence of diseases, and

low costs, it was only during the last decade that Chile

became recognizable in international wine industry

(Chandra, 2006).

Chile has thirteen clearly identified wine regions

spread for 1000 km. From North to South: Elqui Valley,

Limari Valley, Aconcagua Valley, Casablanca Valley, San Antonio Valley, Maipo Valley,

Cachapoal Valley, Colchagua Valley, Curico Valley, Maule Valley and the south region

comprising Itata Valley, Bio Bio Valley and Malleco Valley. Although, the wine regions of

Maule, Maipo, Aconcagua. smithfieldwine.co.uk

Cachapoal and Colchagua Maule, Maipo, Aconcagua,are the most attractive tourist

destinations because of their closeness to the capital – Santiago.

Six out of thirteen regions have established a wine route for the tourists: Aconcagua

Valley, Casablanca Valley, Cachapoal Valley, Colchagua Valley, Curico Valley, and Maule

Valley. For example one of the most visited regions Casablanca valley (21% out of all visitors to

the country in 2005) is comprised by ten wineries with a specialty in white wines. However, the

most visited region - Maipo Valley with 116,000 visits in 2005, or 45% of all visits – does not

have an established wine route. Although, the location of the valley is extremely beneficial to the

business since the capital is located in the middle of the region (Kunc, 2008).

Argentinean major wine producing regions.

Among the country leading wine producing

regions are: Mendoza, San Juan, La Rioja, Catamarca,

Jujuy, Salta, Patagonia, the Rio Negro and Neuquen.

The most wine production in Argentina is

concentrated in Mendoza. The region is responsible for

two-thirds of all country yearly produced wine.

Previously known for the production of Cereza and

Criolla Grande, nowadays Mendoza is concentrating on

planting and production of superb Malbecs.

San Juan is the second largest region famous for producing red premium Syrah and

Charbono, as well as sherry-style wines, brandies, and vermouth.

www.wineanorak.com/argentina_map.htm

La Rioja region is one of the oldest regions with wine production in Argentina, which is

known for its aromatic Mascatel de Alexadrias and Torrontes.

The southern provinces of Río Negro and Neuquén are planting cool climate varietals of

Chardonnay and Pinot noir (Wikipedia)

3.3 Description of the most well known & innovative wineries in the Chile & Argentina

Chilean Wineries.

According to the research conducted by Australian scholars, 67 percent of wine visitors

to Chile wineries were from foreign countries, compared with 20 percent in Australia and New

Zealand. In addition to that, visitors to Chilean wineries spent approximately US $ 8 million

compared with $ 120 million spent by visitors of Australian wineries. The figures clearly

demonstrate that Chile tourism industry is still in its infancy. However, a number of wineries is

gradually increases and quality of service getting better.

One of the oldest and well respected wineries is Santiago based Concha y Toro. The old

mention of Mr. Concha y Toro attracts approximately 500 tourists daily. The winery is famous

for the fine selection of Cabernet Sauvignon, Merlot, Chardonnay, Sauvignon Blanc y Semillón

as well as for their legendary “Casillero del Diablo” - Cellar of the Devil (Kunc, 2008).

Walnut Crest is the second-largest exporter of wine from Chile, Viña Undurraga, highly

ranked by independent travelers (tripadvisor.com), and Viña Errázuriz, “Berlin Tasting” awarded

winery are the largest and worldwide known wineries. (www.winesofchile.org)

Argentinean Wineries

Trapiche is a winery located in Mendoza region of Argentina. The winery is a two-time

winner of the International Wine and Spirit Competition as Argentinean Wine Producer of the

Year. Trapiche is also the largest producer of wine in Argentina (Wikipedia).

Bodega Catena Zapata is another Mendoza based winery. Its famous for the high quality

Malbec, as well as for the distinctively designed winery structure, which recalls a Mayan

pyramid architecture (Wikipedia).

Bodega Colome winery was founded in early thirties of nineteenth century, and it is

considered the oldest existing winery in Argentina. Colome is famous for implementation of

Biodynamic agriculture which allows using resources efficiently (Wine.com).

3.4 Major activities inside & outside wineries that boost wine tourism participation.

Chile and Argentina are developing countries which is why the winemakers should pay a

special attention to the details. Such things as adequate directional signage, strong entry

statement and spacious and organized parking lot are common for the developed countries.

However, in developing countries lack of such things may a big turn off for the customers.

There are a number of ‘common’ activities employed by the most wineries, such as wine

tours, wine tastings and classes.

Additionally, the collaboration with restaurants, hotels and spas can be beneficial for the

winemakers as well as for the whole region.

It is important to keep a connection with the customer even after he or she left the winery.

Newsletters, wine club memberships, brand merchandise - these are the ways to stay in touch

with a customer, attract new customers, and extend sales.

In order to bring a big group of visitors, wineries and winery unions organize ‘big’ events

like wine festivals and concerts.

Mitchell and Hall explained food festivals as an important component of the wine

tourism product. They also pointed out that it can be important “catalysts for future wine tourism

and wine consumer behavior”.

There are two major wine festivals in Chile. The largest and old one is Colchagua

Harvest Festival. It brings 40,000 tourists to Santa Cruz annually. The festival lasts for three days

during which visitors enjoy the traditional dances and regional foods and crafts. The other

festival takes place in Cachapoal Valley and lasts for two days. It’s called Jazz and Wine

international festival (Kunc, 2008).

3.5 Major alliances between the wine sector and other sectors (educational & sector

institutions, transportation, tourism & hospitality) that boost wine tourism activities.

Both Chilean and Argentinean wine makers are integrating with institutions of higher

education. They consider such collaboration as a driver of innovation and a main region

knowledge source. Vinas de Chile, an organization of 45 wineries representing some 90 percent

of Chile’s domestic and export sales. This organization is cooperating with the Universidad

Catolica de Chile with the focus on resources of university’s engineering, biology, and agronomy

departments with the purpose to recognize wine industry problems (Chandra, 2006). Likewise,

Argentinean wine makers are cooperating with Universidad de Cyuo located in the heart of

Mendoza.

Chilean and Argentinean producers understand the importance and benefits of regional

collaboration. The purpose of such alliances is to maintain and enhance the region image.

For example, Chilean winemakers founded the Association de Emperesarios Vitivinicolas del

Valle de Casablanca. This vineyard trade association is formed by winegrowers and grape

producers “with the purpose of protecting and dissemination the characteristics of the Casablanca

Valley” (Casablanca Valley, 2011).

Collaboration on the national level can benefit the industry as a whole. Wines of

Argentina (WofA) is the group of more than hundred winerues working together toward

increasing on international presence (ProsperAr).

VI. Branding and Wine Tourism in Asia (Focus mainly on Australia & New Zealand)

lodgesofnz.co.nz

3.1 General description of the wine market in Asia (main products & competitive

strategy)

Although the European countries such as France, Italy and Spain are remaining the major

producers and consumers of wine in the world, they are facing competition from Asian-Pacific

countries like China, Argentina and New Zealand (PIRSA 2008).

The new players are putting more emphasis on advertising and marketing campaigns.

Furthermore, they are ready to provide competitive pricing on high quality products.

Additionally, while there is a tendency of decline in major wine consuming countries like

France, there is an Asia-Pacific region which is progressing at a rapid pace in wine consumption

(Treloar, Hall, Mitchell, 2004).

For a better understanding of the recent trend in wine production and consumption it is

important to take a look at Australia and New Zealand, the countries with a rapidly growing wine

industry.

Since mid 1980s there has been a significant increase in output and profits in the wine

industry in both Australian and New Zealand. This dramatic change resulted in increased number

of wineries opened. According to ACIL Consulting, the number of operating wineries in

Australia increased almost twice between 1992 and 2001. In New Zealand, the wine industry has

been experiencing a period of substantial growth as well. The number of wineries tripled from a

year 1990 to 2001 (Winegrowers of New Zealand 2003).

The reason behind the emergence of the new ventures is the success of domestically

produced wine in foreign markets, including exports to the ‘old world’ countries. For instance, in

2002, Australian wine exports exceeded domestic consumption by 20 percent. According to New

Zealand wine makers, the exports counted for almost a quarter of all production (Treloar, Hall,

Mitchell, 2004).

However, there is a concern about sustainability of this growth in a long run. It is a

common prediction that the industry will decline. The studies of Wine Institute of California

demonstrate the reduction in growth of world-wide and domestic wine consumption levels

(2003), which can result in over-supply.

Additionally, there is a concern about disproportion in production and sales between

small and large wineries. According to a report prepared for the Australian Commonwealth

Government, 94% of domestic wine sales, and 98% of exports, are produced by 20 largest

wineries (ACIL Consulting, 2002). The access of small and medium wine producers to

distribution medium is diminished by well known, large wineries. Due to efficient marketing and

promotions strategies, large wineries are able to provide greater returns.

Considering the possible challenges that Australian and New Zealand markets can be

facing, wineries in order to stay afloat need to implement direct sales, and one of the ways to sell

directly and create loyalty is to boost wine tourism approach.

3.2 Description of most active wine tourism regions in

Asia (Australia and New Zealand)

New Zealand major wine regions.

This region is a popular destination among wine tourists

for a reason: touring wineries in New Zealand Touring is easy,

because the vineyards stretch nearly through the entire country.

Besides that, New Zealand wine growers are achieving an international reputation for excellence,

especially with regards to Sauvignon Blancs, which acknowledged being among the best in the

world (The Telegraph, 2007)

www.travelenvoy.com

New Zealand has eight major wine growing regions: Auckland, Gisborne, Hawkes,

Wairarapa, Marlborough, Nelson, Canterbury, and Central Otago. Each of these regions has

unique and distinctive wine growing conditions.

The most famous and visited wine region in New Zealand is Marlboro. “Marlborough’s

fame is built upon its Savignon Blanc, which is known for its intense flavor, its aromas of grass,

herbs and gooseberries, and its grapefruit edge. In addition to Sauvignon Blanc”

(Winecyclopedia, 2011). The region also sets high standards in producing Pinot Noir,

Chardonnay and Riesling. Hawake’s Bay region is known for producing Bordeaux Blend wines

and Syrah. Martinborough and Central Otago regions along with Marlborough are the main

producers of Pinot Noir, the second largest export varietal after Sauvignon Banc (Wikipedia,

2011).

Australian major wine regions.

There are four main wine regions New South Wales, Western Australia, South Australia,

and Victoria. The letter two regions are the largest and the best known among wine lovers

(Wikipedia).

3.3 Description of the most well known & innovative wineries in Asia (focusing on

Australia and New Zealand)

Australian profile.

Australia is the world's fourth exporter, and seventh biggest consumer of wine (NY Times,

2008).

Although the variety of expert reviews and rankings make it difficult to provide the

universal selection of Australian top wineries, the paper will present Australian major wine

producers who are famous throughout the world.

The Penfolds winery has been a producer of remarkable wines since 1844. This famous

wine maker first became known for introduction of Penfolds Grange in 1951. Over the years the

company has been providing an outstanding quality and tradition which was a big influence on

the entire Australian wine ( Pebble Beach food and wine, 2011)

Wolf Blass has been a leading Australian wine producer for over 30 years, and during

those years has received over 3.000 awards in various international wine shows including Trophy

of the year (1992) and title of best Australian Producer (2001) at the International Wine and

Spirit Competition (IWSC, 1992, 2001)

Seppelt, with 160 years of history is well known for their wide selection of wines for

“every occasion from a fresh innovative sparkling, to the complex flavors of elegant table

wines”. The company in known for their innovative approach in whether it is creating of new

wine styles, new packaging, or new ideas (Seppelt history).

Another well-known and respected wineries are Yalumba winery, Peter Lehmann wines,

Krondorf, Hardys, Wynns, and Rosemound. All together the vineyards listed are account for over

50 percent of all wine in Australia (Moor, Blech, 2011)

New Zealand profile.

Wine critics in their rankings and independent reviews list hundreds of finest New

Zealand wineries. It was decided to name a few in order not to overload the paper.

Herzog winery is a Marlborough region premium destination. The organically-managed

estate vineyard provides a fine selection of Montepulciano, Pinot Noir, and the Bordeaux style

Merlot Cabernet Sauvignon "Spirit of Marlborough”. Besides the wine tasting, Herzog offers a

full meal dining experience in the Michelin-starred restaurant, widely considered one of the best

in the country (Herzog wine cellars, 2011).

Another fine wine producer Cloudy Bay is well known around the world mainly due to

the Sauvignon Blanc production. Because of its fruit-forward and very pronounced varietal

character, Cloudy Bay wines became one of the first New Zealand wines for export (Wikipedia,

2011).

Villa Maria Estate is a company known as the most awarded winery. It has two wineries

located in Aucland and in Marlborough regions. Besides being one of the country biggest

producers Villa Maria also famous for their event center and concert venue with various outdoor

summer performances (Villa Maria estate).

3.4 Description of the major wine tourism activities in Asia. Describe the major activities

inside & outside wineries that boost wine tourism participation.

As it was previously mentioned, wine experience is going beyond just wine tasting. Such

services as restaurants, accommodations, and picnic and recreation facilities are crucial to overall

customer satisfaction.

Having that in mind, wineries try to offer services that meet and even exceed visitor

expectations.

From the branding perspective, everything starting from the entrance, and finishing with

the ground and building should be maintained and professionally presented. The place should

look authentic and clearly define the points of difference from other locations (Ronning 2009).

However, what really makes a difference is the staff. Wine tasting is always accompanied

by conversation. The visitors discover nuances of winemaking through the dialog with personnel,

which is why a winery staff is required to provide a high level of wine and tourism knowledge in

a jargon-free manner, coupled with friendly attitude.

The conditions described earlier are ingrained in the concept of wine tourism, but

nowadays wineries are trying to provide unique features in order to differentiate themselves from

the competitors, and to make a visit memorable for the tourists. Wineries are opening their doors

for the festivals, concerts and special events.

For instance, the Meadowbank Estate, Australia offers activities like blind tasting with

prizes, a restaurant, an event center and an art gallery (Winemakers Federation of Australia).

3.5 Major alliances between the wine sector and other sectors (educational & sector,

institutions, transportation, tourism & hospitality) that boost wine tourism activities.

It is a matter of great importance for a winery to establish either formal or informal

relationships with umbrella organizations and associations which can be beneficial in developing

their businesses as well as attracting new customers to the winery.

The studies demonstrate that wineries tend to build relationships with regional business

organizations finding it helpful in that business organizations, such as Chamber of Commerce

and Business Development Boards provide opportunities for company promotion, as well as

building a network. However, wine producers consider connections with Business Development

Board more beneficial because the organization may provide a small amount of funds for

company development, as well as offer a formal advice.

In order to increase exports, wineries are seeking for support of National Trade

Promotion Organizations. The study of Hall and Johnson demonstrates a high involvement of

New Zealand winemakers into relationships with two major central government organizations

such as the Tradenz, the organization related to overseas trade, and New Zealand Way, an

overseas branding organization with close links to the New Zealand Tourism Board. The

cooperation with these institutions helps the wineries to boost their exports.

The alliances with Tourism Organizations can provide the wineries with new costumers,

and more sales as a result. There has been a tendency of using Australian and New Zealand Wine

as an image in destination marketing and promotion. However, the study New Zealand Wine

institute reveals law involvement of the wineries into relationships with national level tourism

organizations. Nevertheless, the same study showed wineries’ vivid interest in collaboration with

local level organizations and visitor information centers. It can be explained by possible

appreciation of instant return to wineries though direct sales, and by desire to promote a regional

identity (Hall, Johnson 1997).

Location and lifestyle branding and their connection to wine tourism in Latin America

and Asia.

The paper had its purpose in describing the branding concept in its relation the wine

tourism in Latin America and Asia.

Location branding and destination marketing are relevant variables in the context of wine

tourism. The collective reputation of the place or location can influence consumers’ attitude

towards wine destination.

The destination need to work on its brand image and identity based on natural resources

that a region provides, such as culture, landscape, people, climate, etc. Wine and wine production

is imbedded into place, region, or area. This special connection between winery and its location

makes a location branding an essential part of winery promotion. Hence, the place reputation can

either be beneficial for selling wine product of experience, or it can damage the business. Wine

origin makes considerable influence on consumers’ behavior.

Considering globalization, when there are a variety of products within one category,

location can be used as a differentiation point. It is especially relevant to wine products since

they have a strong bond with the place of origin. For instance, Sauvignon Blanc from

Marlborough region of New Zealand most likely would be a first choice of a wine lover in

comparison with products from different locations since the New Zealand Sauvignon Blanc is

considered paramount. Additionally, location can influence the price of the product.

On the other hand, wine producing industry can influence the region perception.

The collaboration of wine producers, likewise in the case with Wines of Argentina organization,

can be a good tool of the promotion of a region.

Lifestyle branding is another powerful marketing weapon of selling the product. Drinking

wine has always been associated with a particular distinctive atmosphere. As it was mentioned

before, consumers have an emotional attachment to the lifestyle they identify themselves with.

Winery membership adds to a person’s status, travelling for a wine tasting brings respect and

aspiration. There is a variety of various wine tours to all kinds of destinations. Depending on

taste and preferences there is a tour for every person, whether it is camping and wine tasting in

Casablanca Valley, or the whole experience with exclusive wine tasting accompanied with diner

and stay at a luxurious hotel in Marlborough province of New Zealand.

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