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Mémoire
Bachelor thesis

What are the factors limiting La Côte wine producers to export?

    2018

Mémoire de bachelor: Haute école de gestion de Genève, 2018

exportation
vin
La Côte
English Today over 200 types of vine are grown within the Swiss territory. Despite a large variety of grapes, the production is limited as the vineyards are small and located in hillside, which complicates the harvest. Switzerland counts four main wine producing regions. Vaud region is the second largest, which is divided into four smaller ones. The largest of them, La Côte region is located on the western side of the Lake of Geneva, which enjoys from a micro-climate to guarantee a constant quality. In contrast to watches, cheese and chocolate, Swiss wine does not enjoy from large exports to increase its notoriety. Swiss wine exports represent around 1% of the total production volume. Local specialists argue that the restrained production volume and the high production costs have a certain effect on the exporting activities. In addition to that, Swiss wine fears a strong domestic competition as domestic consumption is largely dominated by foreign wine. Despite, being the favourite alcoholic beverage, its consumption is decreasing. The domestic competition and the decrease in consumption could incentivize La Côte wine producers to export. Unfortunately, for Swiss wine producers neighbouring markets are saturated and the demand for foreign wine is low to, almost inexistent. Consequently, Swiss winemakers need to find markets where the demand for fine wine is increasing. The sales strategies in the domestic and target foreign market are rarely similar. Consequently, the first companies to penetrate a new market, generally face important costs linked to this activity. On the other hand, they create opportunities for companies wishing to penetrate this market. Therefore, pioneer exporting activities are rarely profitable. Consequently, collective actions such as exporting consortium permit costs and risk reduction for wineries seeking to export. In this context, twenty-three wineries in La Côte were interviewed. This research paper aims at understanding the factors limiting exporting activities of La Côte wineries. To complete the study an interview with the Director of the Office des Vins Vaudois was pursued. The results revealed that exporting wineries invest more in their promotion and distribution strategies in the domestic market than non-exporting wineries. In addition to that, product and price adaptation play an important role to succeed in exporting activities. The use of comparative and linear regression analyses allowed the identification of internal wineries characteristics being determinant for exports. E.g. The winery size and the type of company have a strong linkage with export performance. On the other hand, the study has rejected the hypothesis that exporting wineries have a lower perception of exporting barriers than the non-exporting ones. The paper was completed with a section measuring the benefits generated by an export consortium. These findings lead to ask whether an export consortium for La Côte wine producers could enhance their exporting performance and for which market it should be created?
Language
  • English
Classification
Economics
Notes
  • Haute école de gestion Genève
  • International Business Management
  • hesso:hegge
License
License undefined
Identifiers
  • RERO DOC 323577
Persistent URL
https://sonar.ch/hesso/documents/314899
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