The competitiveness of French protected designation of origin wines: a theoretical analysis of the role of proximity

Ditter, Jean-Guillaume; Brouard, Joëlle

doi:10.1080/09571264.2014.871120

Cited by 11 publications

(12 citation statements)

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“…Case of late starters which a firm produces is closely linked to the designated destination of sale. In this context, it should be investigated whether PDO wines face challenges in an international environment, which would confirm the analysis of Ditter and Brouard (2014). In the food industry, Duvaleix-Tréguer et al (2015) have recently found PDO labelling to be more important in the EU context and argue that European consumers may be more familiar with the differentiation through PDO appellations compared to extra-EU exports.…”

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confidence: 86%

Exploring determinants of internationalisation: the case of late starters

Köhr

Malorgio

Aragrande

2017

IJWBR

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Purpose The purpose of this paper is to explore the determinants of internationalisation among late starters in the wine sector. Strategic implications for small and medium enterprises (SMEs) in a young wine producing region are derived based on the findings. Design/methodology/approach Data were collected through a quantitative survey among 38 wineries that are engaged in export activity in the Romagna wine producing area (Italy). Both multivariate analysis of cardinal company data through multiple and fractional regression models as well as nonparametric analysis of Likert-type survey elements were carried out. Findings The study identifies several determinants that affect the export intensity of businesses in the sample: Resources within the business turn out to be important, as well as the choice of distribution partners. Characteristics of exported goods were found to differ on comparing intra- and extra-EU exports. Practical implications Competitiveness in the international marketplace is closely linked to the product quality, distribution network and productivity of a firm. Regional networks can help businesses to develop these factors, overcome export barriers and strengthen the competitiveness of a region as a whole. Originality/value This study investigated the determinants of internationalisation in a wine producing region which is considered a late starter of internationalisation in the wine industry and it is the first one spotlighting on a regional firm-level in the Italian wine industry.

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confidence: 86%

Exploring determinants of internationalisation: the case of late starters

Köhr

Malorgio

Aragrande

2017

IJWBR

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“…Tough most of these studies just focus on the effectiveness and the success of business models based on quality and denominations of origin (Malorgio and Grazia, 2007;Engelbrecht et al, 2014), while just a few studies analyse in-depth the relationship between these strategies and the other regional and local determinants of producers' marketing strategies (Montaigne, 1999;2001). Ditter and Brouard (2014), using the proximity framework, detail the terroir-based strategy of Cahors and Chablis wine producers in order to understand the challenges of the French wine industry. With regard to regional studies and local economic development literature, Ilbery et al (2016) compare the development of the organic model in specific regions of England and Wales through the analysis of marketing channels and socio-economic factors that affect the geography of organic farming at regional and local scales.…”

Section: Introductionmentioning

confidence: 99%

“…land, cheaper or rare grape) and management specifications. These strategies limit productivity factors generating a 'managed scarcity' that in turn helps to maintain higher prices (Ditter and Brouard, 2014), cost leadership through economies of scale (Delord et al, 2015), economies of scope (Porter, 1985), quality differentiation (Corade and Delhomme, 2008) and product/process innovation (Jarrosson, 2004). Global competition is forcing regional and local firms to expand their distinctive competencies -and thus increasing differentiation -in order to overcome any location specific advantages produced by their rivals (Wiersema and Bowen, 2006).…”

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confidence: 99%

“…The second decision that is dynamically related to the first one, regards the degree of the wine quality and of the relative market segments for that type. The wine quality expressed by the GIs is a fundamental territorial asset (Ditter and Brouard, 2014), expression of a specific terroir that can have a great influence on competitiveness and firm's resources investment decisions. The strategic view of terroir (Charters, 2010) is intimately linked to the place of production and is expressed using PDO/PGI labels and other territorial or civic standards (i.e.…”

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confidence: 99%

“…In this vein, the strategic choice of quality is related to an organized proximity (Porter, 1998) through a territorial institutional setting (Ditter and Brouard, 2014) that assembles the identity of the place and of its product. The terroir strategy, which is a collective one (Loubaresse and Pestre, 2012), produce inimitable natural resources, specific competencies, barriers to entry and a territorial 'Ricardian' rent (Ditter and Brouard, 2014), allowing firms to develop unique and high-quality wines that may increase a consumer's willingness to pay a premium for a wine as result of the perceived 'territorial' quality. The third strategic decision for a winery is related to the choice of one or multiple marketing channels.…”

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confidence: 99%

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Explaining regional dynamics of marketing strategies: The experience of the Tuscan wine producers

Vergamini

Bartolini

Prosperi

et al. 2019

Journal of Rural Studies

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In traditional wine region such as Tuscany (Italy), the wine production is perceived by several industry players as weak and fragmented because it is mainly controlled by small and medium-sized wineries that have limited market power compared to large companies and distributors. We hypothesise that this problem was influenced -in a period of strong market growth -by producers' choices that underestimated the impact of several external forces (competition, changes in demand and regulation) and promoted strategies without considering their combination with key context-specific, physical, structural and socio-cultural regional factors. The study investigates the origin of these marketing strategies confronted with the contested fragmentation, exploring both current and future trends in Tuscany. The objective is to provide a better understanding on how the combinations between these factors and firm's activities define regional settings in which the different strategies are developed and how these settings can be used to promote more effective and calibrated strategies towards greater economic sustainability of the sector. The focus is to understand the nature and the dynamic of interlinkages between the adoption of differentiation strategies based on quality and the diversification of marketing channels and their regional and local determinants. We adopt a mixed quantitative and qualitative research approach composed of an analytical framework, an econometric analysis and producer's interviews. A mixed method enables to describe regional factors that impact investment in firm resources and quality choices and then determine alternative marketing strategies among Tuscan wineries. First, the method provides a conceptual framework to understand the interlinkages between producers' strategies and local and regional determinants. Then, the winery decision-making process is modelled through a two-by-two differentiation strategy model that represents the wineries' decision towards the adoption of PDO/PGI appellation or organic certification in relation with the choice of distribution channels. Through the reciprocal of the Herfindahl-Hirschman Index (HHI-1) -calculated on alternative marketing strategieswe verified the extent of diversification of sale channels under the different quality choices (i.e. PDO/PGI and organic or without them). Then, the determinants of the choice of distribution channels were quantified by applying censored regression model and the results were elaborated and discussed in the light of 32 producers' interviews. The main trend highlights the fragmentation of wine production that has been determined by the differentiation model adopted by the regional producers. The results confirm a great divide in strategies between those producing quality wines and those who do not: on the one hand being mainly involved in PDO/PGI or organic certification positively affects the choice of multiple distribution channels; on the other hand, those who are not involved in quality labels have concentrated their prod...

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Near infrared for white wine analysis

Power

Cozzolino

2022

White Wine Technology

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The competitiveness of French protected designation of origin wines: a theoretical analysis of the role of proximity

Cited by 11 publications

References 14 publications

Exploring determinants of internationalisation: the case of late starters

Exploring determinants of internationalisation: the case of late starters

Explaining regional dynamics of marketing strategies: The experience of the Tuscan wine producers

Near infrared for white wine analysis

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