Tatiana Trepalina IBUS 699 Branding & Wine Tourism in Latin ...
Tatiana Trepalina IBUS 699 Branding & Wine Tourism in Latin ...
Tatiana Trepalina IBUS 699 Branding & Wine Tourism in Latin ...
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<strong>Tatiana</strong> <strong>Trepal<strong>in</strong>a</strong><br />
<strong>IBUS</strong> <strong>699</strong><br />
<strong>Brand<strong>in</strong>g</strong> & <strong>W<strong>in</strong>e</strong> <strong>Tourism</strong> <strong>in</strong> Lat<strong>in</strong> America and Asia<br />
I. Overview and Observations<br />
1.1 <strong>Brand<strong>in</strong>g</strong>: the def<strong>in</strong>ition of the term and description of the concept.<br />
To understand brand<strong>in</strong>g it is important to know what brand is. The American Market<strong>in</strong>g<br />
Association def<strong>in</strong>es brand as “a name, term, design, symbol, or any other feature that identifies<br />
one seller’s good or service as dist<strong>in</strong>ct from those of other sellers” (American Market<strong>in</strong>g<br />
Association). A brand is the idea or image beh<strong>in</strong>d the specific product or service that consumers<br />
can relate to, by identify<strong>in</strong>g the name, logo, slogan, or design of the company who owns the idea<br />
or image.<br />
There are numerous def<strong>in</strong>itions of brand<strong>in</strong>g from various respectful sources. Bus<strong>in</strong>ess<br />
dictionary expla<strong>in</strong>s <strong>Brand<strong>in</strong>g</strong> as “the process <strong>in</strong>volved <strong>in</strong> creat<strong>in</strong>g a unique name and image for a<br />
product <strong>in</strong> the consumers' m<strong>in</strong>d, ma<strong>in</strong>ly through advertis<strong>in</strong>g campaigns with a consistent theme.<br />
<strong>Brand<strong>in</strong>g</strong> aims to establish a significant and differentiated presence <strong>in</strong> the market that attracts and<br />
reta<strong>in</strong>s loyal customers” (Bus<strong>in</strong>ess dictionary). Another source def<strong>in</strong>es it as “the market<strong>in</strong>g<br />
practice of creat<strong>in</strong>g a name, symbol or design that identifies and differentiates a product from<br />
other products” (Entrepreneur).<br />
Product brand<strong>in</strong>g has become the most efficient technique to attract customers s<strong>in</strong>ce the<br />
competition became fierce due to <strong>in</strong>creased number of products and services. In order to<br />
differentiate the product from the competitors companies try to establish a standard on which<br />
consumers can rely.<br />
Moreover, by associat<strong>in</strong>g to a particular brand, a person can demonstrate a level of<br />
success, and even boost person’s self-esteem (HVS, 2004).
<strong>Brand<strong>in</strong>g</strong> and brand management have been the lead<strong>in</strong>g areas of focus for both market<strong>in</strong>g<br />
academics and practitioners dur<strong>in</strong>g the f<strong>in</strong>al two decades of XX century and until nowadays.<br />
Various articles and research papers have been written and conferences conducted on the subject<br />
of brand and its global importance. ‘Brand recognition together with good reputation allows a<br />
company to expand beyond orig<strong>in</strong>al product and service and add value as well as revenue<br />
generated by the orig<strong>in</strong>al brand.<br />
A review of the literature reveals a broad range of academic <strong>in</strong>terest with regards to<br />
locations, such as countries, cities, towns and regions as the focus of market<strong>in</strong>g activity.<br />
1.2 Def<strong>in</strong>ition of the concept of “location brand<strong>in</strong>g”<br />
The concept of location brand<strong>in</strong>g is not new to the world. Small and big cities, states,<br />
prov<strong>in</strong>ces, regions and countries are try<strong>in</strong>g to achieve competitive advantages by embrac<strong>in</strong>g<br />
market<strong>in</strong>g strategies. The goal is to <strong>in</strong>crease tourism which will attract new bus<strong>in</strong>esses and create<br />
new jobs. However, only for the past two decades the term “location brand<strong>in</strong>g” got a wide<br />
recognition. The practice of brand<strong>in</strong>g geographic locations is <strong>in</strong>creas<strong>in</strong>g, yet there is a lack of<br />
published research on the topic.<br />
As Hank<strong>in</strong>son claims <strong>in</strong> his paper on location brand<strong>in</strong>g cited <strong>in</strong> Kavaratzis work, “In<br />
contrast to the market<strong>in</strong>g of locations, there are relatively few articles to be found <strong>in</strong> the<br />
academic literature with regard to the promotion of the location as brand. This is <strong>in</strong> contrast to<br />
the <strong>in</strong>creas<strong>in</strong>g evidence <strong>in</strong> the press that brand<strong>in</strong>g, at last as a concept, is <strong>in</strong>creas<strong>in</strong>gly be<strong>in</strong>g<br />
applied to locations” He also suggests that there are three areas relevant to the study: The urban<br />
plann<strong>in</strong>g perspective, the retail market<strong>in</strong>g perspective, and the tourism/vacation market<strong>in</strong>g<br />
perspective (Kavaratzis, 2005).<br />
From the urban plann<strong>in</strong>g perspective the importance of brand<strong>in</strong>g is “acknowledged<br />
through the clear recognition of the need for a strategy to communicate and promote the image of<br />
environmental mean<strong>in</strong>g”<br />
The implementation of the retail market<strong>in</strong>g perspective is that each organization (retailer)<br />
markets and brands itself separately, and by do<strong>in</strong>g so it potentially add to the overall brand image<br />
and economic prosperity of the location (Hank<strong>in</strong>son 2001).
F<strong>in</strong>ally, from the tourism perspective the location is a dest<strong>in</strong>ation, a place to visit. The<br />
understand<strong>in</strong>g of brand<strong>in</strong>g <strong>in</strong> vacation/tourism market<strong>in</strong>g is probably the most developed.<br />
However, the issue of control arises expressed <strong>in</strong> absence of control over visitor experience.<br />
The reason<strong>in</strong>g beh<strong>in</strong>d location brand<strong>in</strong>g popularization.<br />
Countless places formerly closed to the world have begun to <strong>in</strong>vest <strong>in</strong> their brand<strong>in</strong>g<br />
strategy <strong>in</strong> order to attract more tourists. Additionally, more and more countries, regions and<br />
cities with strong worldwide recognition expanded their place brand<strong>in</strong>g (or rebrand<strong>in</strong>g) over the<br />
past few years <strong>in</strong> order to stay on float and not let their potential customers to turn to the<br />
competitors.<br />
www.aegean-estates.com<br />
The possible benefits of location brand<strong>in</strong>g:<br />
In order to attract new tourists some nations and cities have<br />
developed tagl<strong>in</strong>es, slogans and even logos. Namely Turkey<br />
which created a world’s recognized logo of a country, which<br />
they place <strong>in</strong> advertisement commercials as well as on all k<strong>in</strong>ds<br />
of merchandize.<br />
• The major benefit is the <strong>in</strong>crease <strong>in</strong> tourist activities which generates extra <strong>in</strong>vestment<br />
<strong>in</strong>flow to the region result<strong>in</strong>g <strong>in</strong> job creation.<br />
• Economic growth of a region due to attraction of new bus<strong>in</strong>esses. This <strong>in</strong>cludes<br />
<strong>in</strong>frastructure development, better leav<strong>in</strong>g conditions and recreation<br />
• The overall positive changes foster a sense of pride among the community members.<br />
However, there are also a number of challenges the location brand<strong>in</strong>g is fac<strong>in</strong>g:
• There is no owner of the brand s<strong>in</strong>ce the brand is the place, but not a differentiated entity<br />
like product or service<br />
• Be<strong>in</strong>g a part of many other enterprises, location brand<strong>in</strong>g does not stand on its own.<br />
• The uniqueness of location brand<strong>in</strong>g is <strong>in</strong> that it must cover many different target groups,<br />
which is a challenge.<br />
Nevertheless, location market<strong>in</strong>g and location brand<strong>in</strong>g techniques are “believed to<br />
provide valuable tools for cities, regions and even nations to effectively manage their <strong>in</strong>ternal<br />
and external opportunities and transform them <strong>in</strong>to competitive advantages. Place brand<strong>in</strong>g is<br />
steadily grow<strong>in</strong>g <strong>in</strong>to an <strong>in</strong>dustry, which attracts significant amounts of <strong>in</strong>vestment” (Kavaratzis,<br />
2005)<br />
1.3 Def<strong>in</strong>ition the concept of “lifestyle brand<strong>in</strong>g”<br />
A lifestyle brand is a brand that attempts to embody the values and aspirations of a group<br />
or culture for purposes of market<strong>in</strong>g (Wikipedia)<br />
People view the best lifestyles as a reflection of themselves. Consumers want brands to<br />
stand for someth<strong>in</strong>g. As a result, consumption turns <strong>in</strong>to a sacred act due to special mean<strong>in</strong>g attached to it.<br />
(Birkner, 2011).<br />
Possible benefits of a lifestyle brand<strong>in</strong>g:<br />
• F<strong>in</strong>ancial benefit achieved by build<strong>in</strong>g a strong emotional long-term bond with the<br />
consumer<br />
• The <strong>in</strong>stant endorsement of a new product because of the strength of the brand name and<br />
customer loyalty.<br />
• Due to <strong>in</strong>stant endorsement lifestyle brands can achieve quicker return on <strong>in</strong>vestment by<br />
launch new products at lower costs to the company<br />
• Brand recognition and customer loyalty elim<strong>in</strong>ates the need for expensive advertis<strong>in</strong>d and<br />
promotion (JUNG, MERLIN, 2002-2003)<br />
Consumers are emotionally attached to an identifiable lifestyle, and by purchas<strong>in</strong>g and us<strong>in</strong>g<br />
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<br />
teenagers A&F is not just a brand, they def<strong>in</strong>e themselves through it, as <strong>in</strong> “I’m an Abercrombie<br />
girl”. The brand became a part of identity. “Consumers do not simply buy A&F, they are A&F”<br />
(Jung, Merl<strong>in</strong>, 2002-2003)<br />
Another example would be Nike corporation. They started as a runn<strong>in</strong>g shoe bus<strong>in</strong>ess<br />
Nike extended to apparel, watches and audio equipment. However, most importantly, the<br />
company provides an athletic lifestyle.<br />
www.nike.com<br />
Lifestyle brand<strong>in</strong>g makes consumers “envelop themselves <strong>in</strong>to brand”. Although, “most<br />
people who buy the brand are not part of that life, but they certa<strong>in</strong>ly identify with it, and that’s<br />
the reason it has such great loyalty. Most lifestyle brands are aim<strong>in</strong>g for aspiration because<br />
they’re sett<strong>in</strong>g an expectation that most of us can’t ever achieve. You walk <strong>in</strong>to the store, and it’s<br />
almost a theme park around that lifestyle,” V<strong>in</strong>cent says, the group director of strategy at Siegel<br />
+ Gale, a strategic brand<strong>in</strong>g and communications firm.<br />
Luis Vuitton is a good example of a high-end French<br />
retailer who exploits aristocratic, extravagant and luxurious<br />
lifestyle which not everybody can afford, but many want to be<br />
identified with.<br />
www.frillr.com<br />
Lifestyle brand<strong>in</strong>g achieves success by capitaliz<strong>in</strong>g on three ma<strong>in</strong> attributes which are:<br />
• us<strong>in</strong>g a product with self expressive benefits<br />
• implement<strong>in</strong>g an <strong>in</strong>tegrated market<strong>in</strong>g communications (IMC) strategy and<br />
• us<strong>in</strong>g range brand<strong>in</strong>g.
Self-expressive benefits becomes noticeable <strong>in</strong> a “social sett<strong>in</strong>g through the use of<br />
"second-sk<strong>in</strong>" products such as clothes, cars, cosmetics and dr<strong>in</strong>ks” (Jung, Merl<strong>in</strong> 2002-2003).<br />
Those are the products or affect<strong>in</strong>g personal image, and based on them a person can be<br />
consciously or subconsciously evaluated by other society members.<br />
The core of IMC strategy is that “companies must strategically <strong>in</strong>tegrate every po<strong>in</strong>t of<br />
contact with important customers and stakeholders to build profitable relationships” (Gronstedt,<br />
2000). For <strong>in</strong>stance customers of A&F can feel the style as soon as they enter the store: from the<br />
black and white posters, smell, lightn<strong>in</strong>g, to physical appearance of store employees.<br />
Range brand<strong>in</strong>g is an expansion of one brand name across multiple product categories.<br />
Unlike brand extension, range brand<strong>in</strong>g has one “carefully crafted identity that appears to one<br />
psychographic group” (Jung, Merl<strong>in</strong> 2002-2003).<br />
The methods used to create a lifestyle brand:<br />
Many designer brands use national identity as a source of a lifestyle. Ralph Lauren<br />
“crystallized the American style” (Gob, 2005). Ralph Lauren evokes images of a good life<br />
through their beautiful commercials, lavish exterior architecture and <strong>in</strong>terior design of their retail<br />
stores<br />
www.ralphlauren.com<br />
Another big source of a lifestyle brand is subculture. Companies like Burton and<br />
Quiksilver capitalized on market<strong>in</strong>g their products for snowboard<strong>in</strong>g and surf<strong>in</strong>g communities<br />
(Beverland, Farrelly, Quester, 2010)
www.chowbaby.com<br />
II. The concept and importance of w<strong>in</strong>e tourism<br />
Food and <strong>W<strong>in</strong>e</strong> historically have been “<strong>in</strong> the background of the tourist experience as a<br />
part of overall hospitality service provided for travelers” (Novelli, 2005). However, today’s<br />
tendency is that w<strong>in</strong>e and food has become a central po<strong>in</strong>t and determ<strong>in</strong>ant factor for travel<br />
decision mak<strong>in</strong>g. Moreover, w<strong>in</strong>e tast<strong>in</strong>g grew <strong>in</strong>to a hallmark attraction of a number of<br />
dest<strong>in</strong>ations around the globe (Carlsen, 2004).<br />
It was until mid n<strong>in</strong>eteenth century that food and w<strong>in</strong>e have been only a part of a tourist<br />
experience. Gradually, w<strong>in</strong>e became a travel product <strong>in</strong> its own, but at the <strong>in</strong>itial stage the<br />
number of tourists was <strong>in</strong>significant due to time and monetary costs of mobility. Only <strong>in</strong> early<br />
1970 with the improvement of technology resulted <strong>in</strong> development of means of transportation<br />
w<strong>in</strong>e tourism started to develop to any scale (Novelli, 2005).<br />
For better understand<strong>in</strong>g of the topic the w<strong>in</strong>e tourism term has to to be def<strong>in</strong>ed. <strong>W<strong>in</strong>e</strong><br />
tourism described as “visitation to v<strong>in</strong>eyards, w<strong>in</strong>eries, w<strong>in</strong>e festivals, and w<strong>in</strong>e shows for which<br />
grape w<strong>in</strong>e tast<strong>in</strong>g and/or experienc<strong>in</strong>g the attributes of a grape w<strong>in</strong>e region are the prime<br />
motivat<strong>in</strong>g factors for visitors” (Hall, 1996). This def<strong>in</strong>ition emphasizes w<strong>in</strong>e and w<strong>in</strong>e related<br />
activities as the ma<strong>in</strong> motives for visit<strong>in</strong>g w<strong>in</strong>e regions. However, “w<strong>in</strong>e tourism experiences are<br />
much more than merely dr<strong>in</strong>k<strong>in</strong>g w<strong>in</strong>e or enjoy<strong>in</strong>g the experience of w<strong>in</strong>e” (Dodd, 1995;<br />
Charters and Ali-Knight, 2000; Hall et al ., 2000 ; Charters and Ali-Knight, 2002 ; Mitchell and<br />
Hall, 2004 ). It is often part of an overall ‘ bundle of benefits ’ that <strong>in</strong>cludes not only visit<strong>in</strong>g
w<strong>in</strong>eries and tast<strong>in</strong>g w<strong>in</strong>e, but also visit<strong>in</strong>g the area, enjoy<strong>in</strong>g scenery and visit<strong>in</strong>g other local<br />
attractions (Cohen, Ben-Nun, 2009).<br />
Moreover, w<strong>in</strong>e tourism is a great way to ga<strong>in</strong> understand<strong>in</strong>g about local culture,<br />
heritage, and customs of an area. Some of the w<strong>in</strong>eries have a history go<strong>in</strong>g back to centuries or<br />
even millennia, and the production and consumption of w<strong>in</strong>e is deeply <strong>in</strong>gra<strong>in</strong>ed <strong>in</strong> the local<br />
culture (Fetter)<br />
2.1 Motivations of <strong>W<strong>in</strong>e</strong> Tourists.<br />
The motivation of tourists visit<strong>in</strong>g w<strong>in</strong>e regions varies depend<strong>in</strong>g on <strong>in</strong>terest, age and<br />
nationality. Although, there ten major reasons why people go visit w<strong>in</strong>eries:<br />
• To taste w<strong>in</strong>e<br />
• To ga<strong>in</strong> the knowledge about a product/ <strong>in</strong>dustry<br />
• To experience w<strong>in</strong>e sett<strong>in</strong>g , which can <strong>in</strong>clude meet<strong>in</strong>g a w<strong>in</strong>e<br />
maker and tour to v<strong>in</strong>eyards and v<strong>in</strong>e cellars<br />
• To enjoy the beauty of countryside, learn about farm<strong>in</strong>g and<br />
agri-tourism<br />
• To appreciate the comb<strong>in</strong>ation of local food and w<strong>in</strong>e. This<br />
k<strong>in</strong>d of vacation has its own name, which is cul<strong>in</strong>ary tourism.<br />
• To enjoy yourself, have fun. More emphasis is put on festivals<br />
and special events.<br />
• To enjoy the romance and elegance of w<strong>in</strong>e culture<br />
• To appreciate agriculture and art<br />
• To ga<strong>in</strong> knowledge about “green” and eco-tourism<br />
• To enjoy the health aspects of w<strong>in</strong>e<br />
www.v<strong>in</strong>overve.com (Thach, 2007)<br />
The research illustrates that visitor <strong>in</strong> New World w<strong>in</strong>e regions (US, Australia, New<br />
Zealand and South Africa) tend to be <strong>in</strong>terested <strong>in</strong> tast<strong>in</strong>g w<strong>in</strong>e, ga<strong>in</strong><strong>in</strong>g knowledge, and just
hav<strong>in</strong>g fun. On the other hand the tourists go<strong>in</strong>g to European w<strong>in</strong>eries tend to appreciate w<strong>in</strong>e <strong>in</strong><br />
comb<strong>in</strong>ation with local delicatessen and enjoy the ancient scenery of rural areas.<br />
Additionally, the trend of agri- and eco-tourism is ga<strong>in</strong><strong>in</strong>g popularity. Visitors of those<br />
regions are will<strong>in</strong>g to learn about grape cultivation and ma<strong>in</strong>tenance as well as susta<strong>in</strong>able<br />
practices. (Thach, 2007)<br />
F<strong>in</strong>ally, the romance, elegance and culture of w<strong>in</strong>e are good enough reasons for various<br />
romance getaway weekends to a w<strong>in</strong>e region (Carlsen, J. 2004).<br />
The survey of Getz and Brown demonstrates that w<strong>in</strong>e tourism <strong>in</strong> broader sense <strong>in</strong><br />
comb<strong>in</strong>ation with cultural activities is more attractive than an all-w<strong>in</strong>e vacation. The study of<br />
Getz and Brown reveal five primary features which v<strong>in</strong>eyard visitors take <strong>in</strong>to account when<br />
search<strong>in</strong>g for a place to go.<br />
www.blog.w<strong>in</strong>e-tours-france.com<br />
Firstly, tourists take <strong>in</strong>to consideration whether a w<strong>in</strong>ery is visitor<br />
friendly or not. Secondly, it is important if the region is rich on<br />
attractions and activities. Thirdly, visitors are concerned about<br />
attractiveness of scenery. Fourthly, they would like to make sure<br />
that w<strong>in</strong>ery staff is knowledgeable about w<strong>in</strong>e. F<strong>in</strong>ally, travelers<br />
want to know if w<strong>in</strong>eries are offer<strong>in</strong>g group tour options (Getz,<br />
Brown, 2007).<br />
2.3 Benefits & Challenges of w<strong>in</strong>e tourism for w<strong>in</strong>eries <strong>in</strong> general.<br />
The w<strong>in</strong>e tours allow to w<strong>in</strong>emakers to create personal relationships with customers,<br />
which later can lead to the direct or <strong>in</strong>direct sales through positive “word of mouth”.<br />
Furthermore, direct sales to the consumer results <strong>in</strong> <strong>in</strong>creased marg<strong>in</strong>s due to reduction of<br />
distributor costs. Additionally, producers ga<strong>in</strong> market<strong>in</strong>g <strong>in</strong>telligence on products and<br />
consumers through gett<strong>in</strong>g an <strong>in</strong>stant and valuable feedback from the costumers. Besides that<br />
w<strong>in</strong>ery serve as an additional sales outlet, it makes a big difference for small bus<strong>in</strong>esses. F<strong>in</strong>ally,
w<strong>in</strong>ery visitations lead to brand awareness and loyalty due to establish<strong>in</strong>g l<strong>in</strong>ks between<br />
producers and consumers, and purchas<strong>in</strong>g of company branded merchandise (Novelli, 2005).<br />
Besides its contribution to w<strong>in</strong>eries, w<strong>in</strong>e tourism considered to be an important element<br />
<strong>in</strong> the tourism <strong>in</strong>dustry <strong>in</strong> that the sector experience develops through the <strong>in</strong>vestment <strong>in</strong>flow<br />
which is the result of <strong>in</strong>creas<strong>in</strong>g number of new w<strong>in</strong>eries (Sanders, 2004).<br />
Accord<strong>in</strong>g to another study the w<strong>in</strong>e tourism plays role of an <strong>in</strong>itiator for regional<br />
development which <strong>in</strong>creases regional employment and economical advancement of an area.<br />
(Carlsen, 2004).<br />
However, besides the benefits of w<strong>in</strong>e tourism there a number of challenges for w<strong>in</strong>eries<br />
<strong>in</strong> general. Charters and O’Neil (2000) po<strong>in</strong>t out on an <strong>in</strong>sufficiency of empirical research on a<br />
subject of customer needs of the w<strong>in</strong>e tourist. Another major issue is that many w<strong>in</strong>ery operators<br />
are lack<strong>in</strong>g of service knowledge and experience. “They have entered the tourism and hospitality<br />
arena <strong>in</strong>tuitively and not <strong>in</strong> a strategic manner” (Macionis, 1998).<br />
Additionally, the government support is important for the <strong>in</strong>dustry development. ACIL<br />
Consult<strong>in</strong>g suggests that “public <strong>in</strong>frastructure, signage, the creation of w<strong>in</strong>e routes, and the need<br />
for region-wide market<strong>in</strong>g <strong>in</strong>itiatives are vital, as most w<strong>in</strong>eries lack the fund<strong>in</strong>g or authority to<br />
create their external tourism product <strong>in</strong>dependently” (Treloar, Hall, Mitchel, 2004).<br />
Furthermore, w<strong>in</strong>e tourism will not function without partnership with<strong>in</strong> the community.<br />
Strong cooperation with restaurants and hotels, police, medical agencies, employment services<br />
and environmental groups is widely needed to support the growth of the w<strong>in</strong>e tourism <strong>in</strong>dustry.<br />
F<strong>in</strong>ally, it is crucial to take a good care of the environment and rural beauty of the<br />
v<strong>in</strong>eyards so the region can keep its status of a w<strong>in</strong>e dest<strong>in</strong>ation (Thach, 2007).<br />
2.4 Reasons for a grow<strong>in</strong>g <strong>in</strong>terest <strong>in</strong> w<strong>in</strong>e tourism <strong>in</strong> general (<strong>in</strong>dividuals’ perspective).<br />
<strong>W<strong>in</strong>e</strong> tourism has been grow<strong>in</strong>g because of <strong>in</strong>terest <strong>in</strong> w<strong>in</strong>e <strong>in</strong> general. Additionally, <strong>in</strong><br />
many cases, government provides assistance to w<strong>in</strong>e producers. The Resource Guide for start-up<br />
suggests that “as government officials have become aware of the w<strong>in</strong>e <strong>in</strong>dustry’s potential to<br />
create economic opportunities <strong>in</strong> rural communities, they have <strong>in</strong>creas<strong>in</strong>gly supported <strong>in</strong>itiatives
such as plant<strong>in</strong>gs of v<strong>in</strong>es, other capital <strong>in</strong>vestments, and sales and market<strong>in</strong>g campaigns”.<br />
Governments realized the benefits of w<strong>in</strong>e production for the local economy. Hence, the<br />
governments are promot<strong>in</strong>g w<strong>in</strong>e tourism realiz<strong>in</strong>g the returns it provides (Start-up Guide, 2004).<br />
Another reason for the <strong>in</strong>crease response to the w<strong>in</strong>e <strong>in</strong>dustry is due to the change of<br />
values <strong>in</strong> society resulted <strong>in</strong> <strong>in</strong>creased <strong>in</strong>terest <strong>in</strong> environmental issues. The ‘Green’ tourist<br />
activities are ga<strong>in</strong><strong>in</strong>g popularity due to <strong>in</strong>creased <strong>in</strong>terest <strong>in</strong> environmental issues. That is why<br />
the agri- and eco-tourism are <strong>in</strong> trend (Thach, 2007).<br />
III. <strong>Brand<strong>in</strong>g</strong> and <strong>W<strong>in</strong>e</strong> <strong>Tourism</strong> <strong>in</strong> the Lat<strong>in</strong> America (focus ma<strong>in</strong>ly on Chile and<br />
Argent<strong>in</strong>a)<br />
3.1 General description of the w<strong>in</strong>e market <strong>in</strong> the Chile & Argent<strong>in</strong>a<br />
South America has the longest history of w<strong>in</strong>e mak<strong>in</strong>g than any other country <strong>in</strong> the New<br />
World. However, for many years these two largest markets were underestimated by the w<strong>in</strong>e<br />
lovers. Nowadays both countries are among the largest producers of w<strong>in</strong>e <strong>in</strong> the world. They are<br />
mak<strong>in</strong>g progress <strong>in</strong> improv<strong>in</strong>g quality of their w<strong>in</strong>e and gradually tak<strong>in</strong>g one of top positions <strong>in</strong><br />
w<strong>in</strong>e <strong>in</strong>dustry (Chandra, 2006).<br />
3.2 Description of most active w<strong>in</strong>e tourism regions <strong>in</strong> the Chile & Argent<strong>in</strong>a<br />
Chile major w<strong>in</strong>e produc<strong>in</strong>g regions.<br />
Chile is one of the largest w<strong>in</strong>e producers and importers <strong>in</strong> the world. Despite the<br />
country’s excellent natural conditions for w<strong>in</strong>e<br />
production, such as weather, soil, absence of diseases, and<br />
low costs, it was only dur<strong>in</strong>g the last decade that Chile<br />
became recognizable <strong>in</strong> <strong>in</strong>ternational w<strong>in</strong>e <strong>in</strong>dustry<br />
(Chandra, 2006).<br />
Chile has thirteen clearly identified w<strong>in</strong>e regions<br />
spread for 1000 km. From North to South: Elqui Valley,
Limari Valley, Aconcagua Valley, Casablanca Valley, San Antonio Valley, Maipo Valley,<br />
Cachapoal Valley, Colchagua Valley, Curico Valley, Maule Valley and the south region<br />
compris<strong>in</strong>g Itata Valley, Bio Bio Valley and Malleco Valley. Although, the w<strong>in</strong>e regions of<br />
Maule, Maipo, Aconcagua.<br />
smithfieldw<strong>in</strong>e.co.uk<br />
Cachapoal and Colchagua Maule, Maipo, Aconcagua,are the most attractive tourist<br />
dest<strong>in</strong>ations because of their closeness to the capital – Santiago.<br />
Six out of thirteen regions have established a w<strong>in</strong>e route for the tourists: Aconcagua<br />
Valley, Casablanca Valley, Cachapoal Valley, Colchagua Valley, Curico Valley, and Maule<br />
Valley. For example one of the most visited regions Casablanca valley (21% out of all visitors to<br />
the country <strong>in</strong> 2005) is comprised by ten w<strong>in</strong>eries with a specialty <strong>in</strong> white w<strong>in</strong>es. However, the<br />
most visited region - Maipo Valley with 116,000 visits <strong>in</strong> 2005, or 45% of all visits – does not<br />
have an established w<strong>in</strong>e route. Although, the location of the valley is extremely beneficial to the<br />
bus<strong>in</strong>ess s<strong>in</strong>ce the capital is located <strong>in</strong> the middle of the region (Kunc, 2008).<br />
Argent<strong>in</strong>ean major w<strong>in</strong>e produc<strong>in</strong>g regions.<br />
Among the country lead<strong>in</strong>g w<strong>in</strong>e produc<strong>in</strong>g<br />
regions are: Mendoza, San Juan, La Rioja, Catamarca,<br />
Jujuy, Salta, Patagonia, the Rio Negro and Neuquen.<br />
The most w<strong>in</strong>e production <strong>in</strong> Argent<strong>in</strong>a is<br />
concentrated <strong>in</strong> Mendoza. The region is responsible for<br />
two-thirds of all country yearly produced w<strong>in</strong>e.<br />
Previously known for the production of Cereza and<br />
Criolla Grande, nowadays Mendoza is concentrat<strong>in</strong>g on<br />
plant<strong>in</strong>g and production of superb Malbecs.
San Juan is the second largest region famous for produc<strong>in</strong>g red premium Syrah and<br />
Charbono, as well as sherry-style w<strong>in</strong>es, brandies, and vermouth.<br />
www.w<strong>in</strong>eanorak.com/argent<strong>in</strong>a_map.htm<br />
La Rioja region is one of the oldest regions with w<strong>in</strong>e production <strong>in</strong> Argent<strong>in</strong>a, which is<br />
known for its aromatic Mascatel de Alexadrias and Torrontes.<br />
The southern prov<strong>in</strong>ces of Río Negro and Neuquén are plant<strong>in</strong>g cool climate varietals of<br />
Chardonnay and P<strong>in</strong>ot noir (Wikipedia)<br />
3.3 Description of the most well known & <strong>in</strong>novative w<strong>in</strong>eries <strong>in</strong> the Chile & Argent<strong>in</strong>a<br />
Chilean <strong>W<strong>in</strong>e</strong>ries.<br />
Accord<strong>in</strong>g to the research conducted by Australian scholars, 67 percent of w<strong>in</strong>e visitors<br />
to Chile w<strong>in</strong>eries were from foreign countries, compared with 20 percent <strong>in</strong> Australia and New<br />
Zealand. In addition to that, visitors to Chilean w<strong>in</strong>eries spent approximately US $ 8 million<br />
compared with $ 120 million spent by visitors of Australian w<strong>in</strong>eries. The figures clearly<br />
demonstrate that Chile tourism <strong>in</strong>dustry is still <strong>in</strong> its <strong>in</strong>fancy. However, a number of w<strong>in</strong>eries is<br />
gradually <strong>in</strong>creases and quality of service gett<strong>in</strong>g better.<br />
One of the oldest and well respected w<strong>in</strong>eries is Santiago based Concha y Toro. The old<br />
mention of Mr. Concha y Toro attracts approximately 500 tourists daily. The w<strong>in</strong>ery is famous<br />
for the f<strong>in</strong>e selection of Cabernet Sauvignon, Merlot, Chardonnay, Sauvignon Blanc y Semillón<br />
as well as for their legendary “Casillero del Diablo” - Cellar of the Devil (Kunc, 2008).<br />
Walnut Crest is the second-largest exporter of w<strong>in</strong>e from Chile, Viña Undurraga, highly<br />
ranked by <strong>in</strong>dependent travelers (tripadvisor.com), and Viña Errázuriz, “Berl<strong>in</strong> Tast<strong>in</strong>g” awarded<br />
w<strong>in</strong>ery are the largest and worldwide known w<strong>in</strong>eries. (www.w<strong>in</strong>esofchile.org)<br />
Argent<strong>in</strong>ean <strong>W<strong>in</strong>e</strong>ries
Trapiche is a w<strong>in</strong>ery located <strong>in</strong> Mendoza region of Argent<strong>in</strong>a. The w<strong>in</strong>ery is a two-time<br />
w<strong>in</strong>ner of the International <strong>W<strong>in</strong>e</strong> and Spirit Competition as Argent<strong>in</strong>ean <strong>W<strong>in</strong>e</strong> Producer of the<br />
Year. Trapiche is also the largest producer of w<strong>in</strong>e <strong>in</strong> Argent<strong>in</strong>a (Wikipedia).<br />
Bodega Catena Zapata is another Mendoza based w<strong>in</strong>ery. Its famous for the high quality<br />
Malbec, as well as for the dist<strong>in</strong>ctively designed w<strong>in</strong>ery structure, which recalls a Mayan<br />
pyramid architecture (Wikipedia).<br />
Bodega Colome w<strong>in</strong>ery was founded <strong>in</strong> early thirties of n<strong>in</strong>eteenth century, and it is<br />
considered the oldest exist<strong>in</strong>g w<strong>in</strong>ery <strong>in</strong> Argent<strong>in</strong>a. Colome is famous for implementation of<br />
Biodynamic agriculture which allows us<strong>in</strong>g resources efficiently (<strong>W<strong>in</strong>e</strong>.com).<br />
3.4 Major activities <strong>in</strong>side & outside w<strong>in</strong>eries that boost w<strong>in</strong>e tourism participation.<br />
Chile and Argent<strong>in</strong>a are develop<strong>in</strong>g countries which is why the w<strong>in</strong>emakers should pay a<br />
special attention to the details. Such th<strong>in</strong>gs as adequate directional signage, strong entry<br />
statement and spacious and organized park<strong>in</strong>g lot are common for the developed countries.<br />
However, <strong>in</strong> develop<strong>in</strong>g countries lack of such th<strong>in</strong>gs may a big turn off for the customers.<br />
There are a number of ‘common’ activities employed by the most w<strong>in</strong>eries, such as w<strong>in</strong>e<br />
tours, w<strong>in</strong>e tast<strong>in</strong>gs and classes.<br />
Additionally, the collaboration with restaurants, hotels and spas can be beneficial for the<br />
w<strong>in</strong>emakers as well as for the whole region.<br />
It is important to keep a connection with the customer even after he or she left the w<strong>in</strong>ery.<br />
Newsletters, w<strong>in</strong>e club memberships, brand merchandise - these are the ways to stay <strong>in</strong> touch<br />
with a customer, attract new customers, and extend sales.<br />
In order to br<strong>in</strong>g a big group of visitors, w<strong>in</strong>eries and w<strong>in</strong>ery unions organize ‘big’ events<br />
like w<strong>in</strong>e festivals and concerts.<br />
Mitchell and Hall expla<strong>in</strong>ed food festivals as an important component of the w<strong>in</strong>e<br />
tourism product. They also po<strong>in</strong>ted out that it can be important “catalysts for future w<strong>in</strong>e tourism<br />
and w<strong>in</strong>e consumer behavior”.
There are two major w<strong>in</strong>e festivals <strong>in</strong> Chile. The largest and old one is Colchagua<br />
Harvest Festival. It br<strong>in</strong>gs 40,000 tourists to Santa Cruz annually. The festival lasts for three days<br />
dur<strong>in</strong>g which visitors enjoy the traditional dances and regional foods and crafts. The other<br />
festival takes place <strong>in</strong> Cachapoal Valley and lasts for two days. It’s called Jazz and <strong>W<strong>in</strong>e</strong><br />
<strong>in</strong>ternational festival (Kunc, 2008).<br />
3.5 Major alliances between the w<strong>in</strong>e sector and other sectors (educational & sector<br />
<strong>in</strong>stitutions, transportation, tourism & hospitality) that boost w<strong>in</strong>e tourism activities.<br />
Both Chilean and Argent<strong>in</strong>ean w<strong>in</strong>e makers are <strong>in</strong>tegrat<strong>in</strong>g with <strong>in</strong>stitutions of higher<br />
education. They consider such collaboration as a driver of <strong>in</strong>novation and a ma<strong>in</strong> region<br />
knowledge source. V<strong>in</strong>as de Chile, an organization of 45 w<strong>in</strong>eries represent<strong>in</strong>g some 90 percent<br />
of Chile’s domestic and export sales. This organization is cooperat<strong>in</strong>g with the Universidad<br />
Catolica de Chile with the focus on resources of university’s eng<strong>in</strong>eer<strong>in</strong>g, biology, and agronomy<br />
departments with the purpose to recognize w<strong>in</strong>e <strong>in</strong>dustry problems (Chandra, 2006). Likewise,<br />
Argent<strong>in</strong>ean w<strong>in</strong>e makers are cooperat<strong>in</strong>g with Universidad de Cyuo located <strong>in</strong> the heart of<br />
Mendoza.<br />
Chilean and Argent<strong>in</strong>ean producers understand the importance and benefits of regional<br />
collaboration. The purpose of such alliances is to ma<strong>in</strong>ta<strong>in</strong> and enhance the region image.<br />
For example, Chilean w<strong>in</strong>emakers founded the Association de Emperesarios Vitiv<strong>in</strong>icolas del<br />
Valle de Casablanca. This v<strong>in</strong>eyard trade association is formed by w<strong>in</strong>egrowers and grape<br />
producers “with the purpose of protect<strong>in</strong>g and dissem<strong>in</strong>ation the characteristics of the Casablanca<br />
Valley” (Casablanca Valley, 2011).<br />
Collaboration on the national level can benefit the <strong>in</strong>dustry as a whole. <strong>W<strong>in</strong>e</strong>s of<br />
Argent<strong>in</strong>a (WofA) is the group of more than hundred w<strong>in</strong>erues work<strong>in</strong>g together toward<br />
<strong>in</strong>creas<strong>in</strong>g on <strong>in</strong>ternational presence (ProsperAr).
VI. <strong>Brand<strong>in</strong>g</strong> and <strong>W<strong>in</strong>e</strong> <strong>Tourism</strong> <strong>in</strong> Asia (Focus ma<strong>in</strong>ly on Australia & New Zealand)<br />
lodgesofnz.co.nz<br />
3.1 General description of the w<strong>in</strong>e market <strong>in</strong> Asia (ma<strong>in</strong> products & competitive<br />
strategy)<br />
Although the European countries such as France, Italy and Spa<strong>in</strong> are rema<strong>in</strong><strong>in</strong>g the major<br />
producers and consumers of w<strong>in</strong>e <strong>in</strong> the world, they are fac<strong>in</strong>g competition from Asian-Pacific<br />
countries like Ch<strong>in</strong>a, Argent<strong>in</strong>a and New Zealand (PIRSA 2008).<br />
The new players are putt<strong>in</strong>g more emphasis on advertis<strong>in</strong>g and market<strong>in</strong>g campaigns.<br />
Furthermore, they are ready to provide competitive pric<strong>in</strong>g on high quality products.<br />
Additionally, while there is a tendency of decl<strong>in</strong>e <strong>in</strong> major w<strong>in</strong>e consum<strong>in</strong>g countries like<br />
France, there is an Asia-Pacific region which is progress<strong>in</strong>g at a rapid pace <strong>in</strong> w<strong>in</strong>e consumption<br />
(Treloar, Hall, Mitchell, 2004).<br />
For a better understand<strong>in</strong>g of the recent trend <strong>in</strong> w<strong>in</strong>e production and consumption it is<br />
important to take a look at Australia and New Zealand, the countries with a rapidly grow<strong>in</strong>g w<strong>in</strong>e<br />
<strong>in</strong>dustry.<br />
S<strong>in</strong>ce mid 1980s there has been a significant <strong>in</strong>crease <strong>in</strong> output and profits <strong>in</strong> the w<strong>in</strong>e<br />
<strong>in</strong>dustry <strong>in</strong> both Australian and New Zealand. This dramatic change resulted <strong>in</strong> <strong>in</strong>creased number<br />
of w<strong>in</strong>eries opened. Accord<strong>in</strong>g to ACIL Consult<strong>in</strong>g, the number of operat<strong>in</strong>g w<strong>in</strong>eries <strong>in</strong>
Australia <strong>in</strong>creased almost twice between 1992 and 2001. In New Zealand, the w<strong>in</strong>e <strong>in</strong>dustry has<br />
been experienc<strong>in</strong>g a period of substantial growth as well. The number of w<strong>in</strong>eries tripled from a<br />
year 1990 to 2001 (<strong>W<strong>in</strong>e</strong>growers of New Zealand 2003).<br />
The reason beh<strong>in</strong>d the emergence of the new ventures is the success of domestically<br />
produced w<strong>in</strong>e <strong>in</strong> foreign markets, <strong>in</strong>clud<strong>in</strong>g exports to the ‘old world’ countries. For <strong>in</strong>stance, <strong>in</strong><br />
2002, Australian w<strong>in</strong>e exports exceeded domestic consumption by 20 percent. Accord<strong>in</strong>g to New<br />
Zealand w<strong>in</strong>e makers, the exports counted for almost a quarter of all production (Treloar, Hall,<br />
Mitchell, 2004).<br />
However, there is a concern about susta<strong>in</strong>ability of this growth <strong>in</strong> a long run. It is a<br />
common prediction that the <strong>in</strong>dustry will decl<strong>in</strong>e. The studies of <strong>W<strong>in</strong>e</strong> Institute of California<br />
demonstrate the reduction <strong>in</strong> growth of world-wide and domestic w<strong>in</strong>e consumption levels<br />
(2003), which can result <strong>in</strong> over-supply.<br />
Additionally, there is a concern about disproportion <strong>in</strong> production and sales between<br />
small and large w<strong>in</strong>eries. Accord<strong>in</strong>g to a report prepared for the Australian Commonwealth<br />
Government, 94% of domestic w<strong>in</strong>e sales, and 98% of exports, are produced by 20 largest<br />
w<strong>in</strong>eries (ACIL Consult<strong>in</strong>g, 2002). The access of small and medium w<strong>in</strong>e producers to<br />
distribution medium is dim<strong>in</strong>ished by well known, large w<strong>in</strong>eries. Due to efficient market<strong>in</strong>g and<br />
promotions strategies, large w<strong>in</strong>eries are able to provide greater returns.<br />
Consider<strong>in</strong>g the possible challenges that Australian and New Zealand markets can be<br />
fac<strong>in</strong>g, w<strong>in</strong>eries <strong>in</strong> order to stay afloat need to implement direct sales, and one of the ways to sell<br />
directly and create loyalty is to boost w<strong>in</strong>e tourism approach.<br />
3.2 Description of most active w<strong>in</strong>e tourism regions <strong>in</strong><br />
Asia (Australia and New Zealand)<br />
New Zealand major w<strong>in</strong>e regions.<br />
This region is a popular dest<strong>in</strong>ation among w<strong>in</strong>e tourists<br />
for a reason: tour<strong>in</strong>g w<strong>in</strong>eries <strong>in</strong> New Zealand Tour<strong>in</strong>g is easy,<br />
because the v<strong>in</strong>eyards stretch nearly through the entire country.
Besides that, New Zealand w<strong>in</strong>e growers are achiev<strong>in</strong>g an <strong>in</strong>ternational reputation for excellence,<br />
especially with regards to Sauvignon Blancs, which acknowledged be<strong>in</strong>g among the best <strong>in</strong> the<br />
world (The Telegraph, 2007)<br />
www.travelenvoy.com<br />
New Zealand has eight major w<strong>in</strong>e grow<strong>in</strong>g regions: Auckland, Gisborne, Hawkes,<br />
Wairarapa, Marlborough, Nelson, Canterbury, and Central Otago. Each of these regions has<br />
unique and dist<strong>in</strong>ctive w<strong>in</strong>e grow<strong>in</strong>g conditions.<br />
The most famous and visited w<strong>in</strong>e region <strong>in</strong> New Zealand is Marlboro. “Marlborough’s<br />
fame is built upon its Savignon Blanc, which is known for its <strong>in</strong>tense flavor, its aromas of grass,<br />
herbs and gooseberries, and its grapefruit edge. In addition to Sauvignon Blanc”<br />
(<strong>W<strong>in</strong>e</strong>cyclopedia, 2011). The region also sets high standards <strong>in</strong> produc<strong>in</strong>g P<strong>in</strong>ot Noir,<br />
Chardonnay and Riesl<strong>in</strong>g. Hawake’s Bay region is known for produc<strong>in</strong>g Bordeaux Blend w<strong>in</strong>es<br />
and Syrah. Mart<strong>in</strong>borough and Central Otago regions along with Marlborough are the ma<strong>in</strong><br />
producers of P<strong>in</strong>ot Noir, the second largest export varietal after Sauvignon Banc (Wikipedia,<br />
2011).<br />
Australian major w<strong>in</strong>e regions.<br />
There are four ma<strong>in</strong> w<strong>in</strong>e regions New South Wales, Western Australia, South Australia,<br />
and Victoria. The letter two regions are the largest and the best known among w<strong>in</strong>e lovers<br />
(Wikipedia).<br />
3.3 Description of the most well known & <strong>in</strong>novative w<strong>in</strong>eries <strong>in</strong> Asia (focus<strong>in</strong>g on<br />
Australia and New Zealand)<br />
Australian profile.<br />
Australia is the world's fourth exporter, and seventh biggest consumer of w<strong>in</strong>e (NY Times,<br />
2008).
Although the variety of expert reviews and rank<strong>in</strong>gs make it difficult to provide the<br />
universal selection of Australian top w<strong>in</strong>eries, the paper will present Australian major w<strong>in</strong>e<br />
producers who are famous throughout the world.<br />
The Penfolds w<strong>in</strong>ery has been a producer of remarkable w<strong>in</strong>es s<strong>in</strong>ce 1844. This famous<br />
w<strong>in</strong>e maker first became known for <strong>in</strong>troduction of Penfolds Grange <strong>in</strong> 1951. Over the years the<br />
company has been provid<strong>in</strong>g an outstand<strong>in</strong>g quality and tradition which was a big <strong>in</strong>fluence on<br />
the entire Australian w<strong>in</strong>e ( Pebble Beach food and w<strong>in</strong>e, 2011)<br />
Wolf Blass has been a lead<strong>in</strong>g Australian w<strong>in</strong>e producer for over 30 years, and dur<strong>in</strong>g<br />
those years has received over 3.000 awards <strong>in</strong> various <strong>in</strong>ternational w<strong>in</strong>e shows <strong>in</strong>clud<strong>in</strong>g Trophy<br />
of the year (1992) and title of best Australian Producer (2001) at the International <strong>W<strong>in</strong>e</strong> and<br />
Spirit Competition (IWSC, 1992, 2001)<br />
Seppelt, with 160 years of history is well known for their wide selection of w<strong>in</strong>es for<br />
“every occasion from a fresh <strong>in</strong>novative sparkl<strong>in</strong>g, to the complex flavors of elegant table<br />
w<strong>in</strong>es”. The company <strong>in</strong> known for their <strong>in</strong>novative approach <strong>in</strong> whether it is creat<strong>in</strong>g of new<br />
w<strong>in</strong>e styles, new packag<strong>in</strong>g, or new ideas (Seppelt history).<br />
Another well-known and respected w<strong>in</strong>eries are Yalumba w<strong>in</strong>ery, Peter Lehmann w<strong>in</strong>es,<br />
Krondorf, Hardys, Wynns, and Rosemound. All together the v<strong>in</strong>eyards listed are account for over<br />
50 percent of all w<strong>in</strong>e <strong>in</strong> Australia (Moor, Blech, 2011)<br />
New Zealand profile.<br />
<strong>W<strong>in</strong>e</strong> critics <strong>in</strong> their rank<strong>in</strong>gs and <strong>in</strong>dependent reviews list hundreds of f<strong>in</strong>est New<br />
Zealand w<strong>in</strong>eries. It was decided to name a few <strong>in</strong> order not to overload the paper.<br />
Herzog w<strong>in</strong>ery is a Marlborough region premium dest<strong>in</strong>ation. The organically-managed<br />
estate v<strong>in</strong>eyard provides a f<strong>in</strong>e selection of Montepulciano, P<strong>in</strong>ot Noir, and the Bordeaux style<br />
Merlot Cabernet Sauvignon "Spirit of Marlborough”. Besides the w<strong>in</strong>e tast<strong>in</strong>g, Herzog offers a<br />
full meal d<strong>in</strong><strong>in</strong>g experience <strong>in</strong> the Michel<strong>in</strong>-starred restaurant, widely considered one of the best<br />
<strong>in</strong> the country (Herzog w<strong>in</strong>e cellars, 2011).
Another f<strong>in</strong>e w<strong>in</strong>e producer Cloudy Bay is well known around the world ma<strong>in</strong>ly due to<br />
the Sauvignon Blanc production. Because of its fruit-forward and very pronounced varietal<br />
character, Cloudy Bay w<strong>in</strong>es became one of the first New Zealand w<strong>in</strong>es for export (Wikipedia,<br />
2011).<br />
Villa Maria Estate is a company known as the most awarded w<strong>in</strong>ery. It has two w<strong>in</strong>eries<br />
located <strong>in</strong> Aucland and <strong>in</strong> Marlborough regions. Besides be<strong>in</strong>g one of the country biggest<br />
producers Villa Maria also famous for their event center and concert venue with various outdoor<br />
summer performances (Villa Maria estate).<br />
3.4 Description of the major w<strong>in</strong>e tourism activities <strong>in</strong> Asia. Describe the major activities<br />
<strong>in</strong>side & outside w<strong>in</strong>eries that boost w<strong>in</strong>e tourism participation.<br />
As it was previously mentioned, w<strong>in</strong>e experience is go<strong>in</strong>g beyond just w<strong>in</strong>e tast<strong>in</strong>g. Such<br />
services as restaurants, accommodations, and picnic and recreation facilities are crucial to overall<br />
customer satisfaction.<br />
Hav<strong>in</strong>g that <strong>in</strong> m<strong>in</strong>d, w<strong>in</strong>eries try to offer services that meet and even exceed visitor<br />
expectations.<br />
From the brand<strong>in</strong>g perspective, everyth<strong>in</strong>g start<strong>in</strong>g from the entrance, and f<strong>in</strong>ish<strong>in</strong>g with<br />
the ground and build<strong>in</strong>g should be ma<strong>in</strong>ta<strong>in</strong>ed and professionally presented. The place should<br />
look authentic and clearly def<strong>in</strong>e the po<strong>in</strong>ts of difference from other locations (Ronn<strong>in</strong>g 2009).<br />
However, what really makes a difference is the staff. <strong>W<strong>in</strong>e</strong> tast<strong>in</strong>g is always accompanied<br />
by conversation. The visitors discover nuances of w<strong>in</strong>emak<strong>in</strong>g through the dialog with personnel,<br />
which is why a w<strong>in</strong>ery staff is required to provide a high level of w<strong>in</strong>e and tourism knowledge <strong>in</strong><br />
a jargon-free manner, coupled with friendly attitude.<br />
The conditions described earlier are <strong>in</strong>gra<strong>in</strong>ed <strong>in</strong> the concept of w<strong>in</strong>e tourism, but<br />
nowadays w<strong>in</strong>eries are try<strong>in</strong>g to provide unique features <strong>in</strong> order to differentiate themselves from<br />
the competitors, and to make a visit memorable for the tourists. <strong>W<strong>in</strong>e</strong>ries are open<strong>in</strong>g their doors<br />
for the festivals, concerts and special events.
For <strong>in</strong>stance, the Meadowbank Estate, Australia offers activities like bl<strong>in</strong>d tast<strong>in</strong>g with<br />
prizes, a restaurant, an event center and an art gallery (<strong>W<strong>in</strong>e</strong>makers Federation of Australia).<br />
3.5 Major alliances between the w<strong>in</strong>e sector and other sectors (educational & sector,<br />
<strong>in</strong>stitutions, transportation, tourism & hospitality) that boost w<strong>in</strong>e tourism activities.<br />
It is a matter of great importance for a w<strong>in</strong>ery to establish either formal or <strong>in</strong>formal<br />
relationships with umbrella organizations and associations which can be beneficial <strong>in</strong> develop<strong>in</strong>g<br />
their bus<strong>in</strong>esses as well as attract<strong>in</strong>g new customers to the w<strong>in</strong>ery.<br />
The studies demonstrate that w<strong>in</strong>eries tend to build relationships with regional bus<strong>in</strong>ess<br />
organizations f<strong>in</strong>d<strong>in</strong>g it helpful <strong>in</strong> that bus<strong>in</strong>ess organizations, such as Chamber of Commerce<br />
and Bus<strong>in</strong>ess Development Boards provide opportunities for company promotion, as well as<br />
build<strong>in</strong>g a network. However, w<strong>in</strong>e producers consider connections with Bus<strong>in</strong>ess Development<br />
Board more beneficial because the organization may provide a small amount of funds for<br />
company development, as well as offer a formal advice.<br />
In order to <strong>in</strong>crease exports, w<strong>in</strong>eries are seek<strong>in</strong>g for support of National Trade<br />
Promotion Organizations. The study of Hall and Johnson demonstrates a high <strong>in</strong>volvement of<br />
New Zealand w<strong>in</strong>emakers <strong>in</strong>to relationships with two major central government organizations<br />
such as the Tradenz, the organization related to overseas trade, and New Zealand Way, an<br />
overseas brand<strong>in</strong>g organization with close l<strong>in</strong>ks to the New Zealand <strong>Tourism</strong> Board. The<br />
cooperation with these <strong>in</strong>stitutions helps the w<strong>in</strong>eries to boost their exports.<br />
The alliances with <strong>Tourism</strong> Organizations can provide the w<strong>in</strong>eries with new costumers,<br />
and more sales as a result. There has been a tendency of us<strong>in</strong>g Australian and New Zealand <strong>W<strong>in</strong>e</strong><br />
as an image <strong>in</strong> dest<strong>in</strong>ation market<strong>in</strong>g and promotion. However, the study New Zealand <strong>W<strong>in</strong>e</strong><br />
<strong>in</strong>stitute reveals law <strong>in</strong>volvement of the w<strong>in</strong>eries <strong>in</strong>to relationships with national level tourism<br />
organizations. Nevertheless, the same study showed w<strong>in</strong>eries’ vivid <strong>in</strong>terest <strong>in</strong> collaboration with<br />
local level organizations and visitor <strong>in</strong>formation centers. It can be expla<strong>in</strong>ed by possible
appreciation of <strong>in</strong>stant return to w<strong>in</strong>eries though direct sales, and by desire to promote a regional<br />
identity (Hall, Johnson 1997).<br />
Location and lifestyle brand<strong>in</strong>g and their connection to w<strong>in</strong>e tourism <strong>in</strong> Lat<strong>in</strong> America<br />
and Asia.<br />
The paper had its purpose <strong>in</strong> describ<strong>in</strong>g the brand<strong>in</strong>g concept <strong>in</strong> its relation the w<strong>in</strong>e<br />
tourism <strong>in</strong> Lat<strong>in</strong> America and Asia.<br />
Location brand<strong>in</strong>g and dest<strong>in</strong>ation market<strong>in</strong>g are relevant variables <strong>in</strong> the context of w<strong>in</strong>e<br />
tourism. The collective reputation of the place or location can <strong>in</strong>fluence consumers’ attitude<br />
towards w<strong>in</strong>e dest<strong>in</strong>ation.<br />
The dest<strong>in</strong>ation need to work on its brand image and identity based on natural resources<br />
that a region provides, such as culture, landscape, people, climate, etc. <strong>W<strong>in</strong>e</strong> and w<strong>in</strong>e production<br />
is imbedded <strong>in</strong>to place, region, or area. This special connection between w<strong>in</strong>ery and its location<br />
makes a location brand<strong>in</strong>g an essential part of w<strong>in</strong>ery promotion. Hence, the place reputation can<br />
either be beneficial for sell<strong>in</strong>g w<strong>in</strong>e product of experience, or it can damage the bus<strong>in</strong>ess. <strong>W<strong>in</strong>e</strong><br />
orig<strong>in</strong> makes considerable <strong>in</strong>fluence on consumers’ behavior.<br />
Consider<strong>in</strong>g globalization, when there are a variety of products with<strong>in</strong> one category,<br />
location can be used as a differentiation po<strong>in</strong>t. It is especially relevant to w<strong>in</strong>e products s<strong>in</strong>ce<br />
they have a strong bond with the place of orig<strong>in</strong>. For <strong>in</strong>stance, Sauvignon Blanc from<br />
Marlborough region of New Zealand most likely would be a first choice of a w<strong>in</strong>e lover <strong>in</strong><br />
comparison with products from different locations s<strong>in</strong>ce the New Zealand Sauvignon Blanc is<br />
considered paramount. Additionally, location can <strong>in</strong>fluence the price of the product.<br />
On the other hand, w<strong>in</strong>e produc<strong>in</strong>g <strong>in</strong>dustry can <strong>in</strong>fluence the region perception.<br />
The collaboration of w<strong>in</strong>e producers, likewise <strong>in</strong> the case with <strong>W<strong>in</strong>e</strong>s of Argent<strong>in</strong>a organization,<br />
can be a good tool of the promotion of a region.<br />
Lifestyle brand<strong>in</strong>g is another powerful market<strong>in</strong>g weapon of sell<strong>in</strong>g the product. Dr<strong>in</strong>k<strong>in</strong>g<br />
w<strong>in</strong>e has always been associated with a particular dist<strong>in</strong>ctive atmosphere. As it was mentioned
efore, consumers have an emotional attachment to the lifestyle they identify themselves with.<br />
<strong>W<strong>in</strong>e</strong>ry membership adds to a person’s status, travell<strong>in</strong>g for a w<strong>in</strong>e tast<strong>in</strong>g br<strong>in</strong>gs respect and<br />
aspiration. There is a variety of various w<strong>in</strong>e tours to all k<strong>in</strong>ds of dest<strong>in</strong>ations. Depend<strong>in</strong>g on<br />
taste and preferences there is a tour for every person, whether it is camp<strong>in</strong>g and w<strong>in</strong>e tast<strong>in</strong>g <strong>in</strong><br />
Casablanca Valley, or the whole experience with exclusive w<strong>in</strong>e tast<strong>in</strong>g accompanied with d<strong>in</strong>er<br />
and stay at a luxurious hotel <strong>in</strong> Marlborough prov<strong>in</strong>ce of New Zealand.<br />
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