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Analysis of the Wine Sector

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Analysis of the Wine Sector ANALYSIS OF THE WINE SECTOR Student: Marta Babrerá Fabregat Tutor: Francesc Xavier Molina Morales DEGREE IN BUSINESS ADMINISTRATION 2015/2016 1 A. TABLE OF CONTENTS 1. INTRODUCTION ................................................................................................... 4 2. HISTORY OF WINE AS AN ECONOMIC ACTIVITY IN SPAIN ............................. 6 3. TYPES OF GRAPE VARIETES AND WINE MAKING ........................................... 8 3.1. Types of grape varieties ............................................................................... 8 3.1.1. Red varieties .......................................................................................... 8 3.1.2. White varieties ....................................................................................... 9 3.2. Wine Making ................................................................................................ 11 3.2.1. Red wine ............................................................................................... 12 3.2.2. White wine ............................................................................................ 15 4. INDUSTRY CHARACTERISTICS........................................................................ 18 4.1. The wine sector in Spain ............................................................................ 18 4.2. Protected Designations of Origin and Protected Geographical Indications. ............................................................................................................ 18 4.2.1. Protected Designation of Origin (P.D.O) ............................................ 20 4.2.2. Designation of Origin (DO) .................................................................. 21 4.2.3. Qualified Designation of Origin .......................................................... 23 4.2.4. Quality Wines with Geographical Indication. ..................................... 24 4.2.5. Wines of Pago. ..................................................................................... 24 4.2.6. Wines of Qualified Pago ...................................................................... 25 5. INNOVATION ...................................................................................................... 27 5.1. The Concept of Innovation ......................................................................... 27 5.2. Typology of Innovation .............................................................................. 27 5.3. The Difussion of Innovation. Stages ......................................................... 29 5.4. The Concept of Technological Innovation ................................................ 29 5.5. The Innovation in the Sector ...................................................................... 30 1. EMPIRICAL ANALYSIS ...................................................................................... 41 1.1. Questions about the attitude of wine consumption ................................. 41 1.2. Overall profile ............................................................................................. 49 ANALYSIS OF THE WINE SECTOR MARTA BARBERÁ FABREGAT 2 1.3. Results ........................................................................................................ 53 1.4. Conclusions ................................................................................................ 56 1.5. Improvement proposals ............................................................................. 57 2. CONCLUSIONS .................................................................................................. 59 3. REFERENCES .................................................................................................... 61 4. ANNEXES ........................................................................................................... 63 B. TABLE OF FIGURES Figure 1. Spanish, Italian and French wine exports (1849-2000). In million hectolitres ................................................................................................................... 7 Figure 2. Distribution of the frequency of consumption ........................................ 41 Figure 3. Distribution of because people do not consume wine ........................... 42 Figure 4. Distribution about the type of wine which consumers prefer ................ 43 Figure 5. Distribution about the consumption situations ...................................... 44 Figure 6. Distribution about the importance of aspects of wine, when consumers purchase .................................................................................................................... 45 Figure 7.Distribution about the place where the purchase is made. ..................... 46 Figure 8. Distribution about the price which the consumers are willing to pay in a supermarket .............................................................................................................. 47 Figure 9. Distribution about the price which the consumers are willing to pay in a restaurant .................................................................................................................. 48 Figure 10. Distribution about the social class the respondents ............................ 49 Figure 11. Distribution about the level of education in the responders ................ 50 Figure 12.Distribution about the age of the responders ........................................ 51 Figure 13. Distribution of respondents by sex ....................................................... 52 ANALYSIS OF THE WINE SECTOR MARTA BARBERÁ FABREGAT 3 C. TABLE OF TABLES Table 1. Distribution of the marketing of D.O.P. Spanish, campaign 2013/2014 .. 20 Table 2. Areas Wines of Pago in Castilla La Mancha ............................................. 25 Table 3. Areas Wines of Pago in Navarre ................................................................ 25 Table 4. Areas Wines of Qualified Pago in Andalucia ............................................ 25 Table 5. Areas Wines of Qualified Pago in Castilla y Leon .................................... 26 Table 6. Areas Wines of Qualified Pago in Principado de Asturias ...................... 26 Table 7. Product, Process, Marketing and Organizational Innovation .................. 28 Table 8. Percentages of often of consumption ...................................................... 41 Table 9. Percentages of because people do not consume wine ........................... 42 Table 10. Percentages about the type of wine which consumers prefer .............. 43 Table 11. Porcentages about the consumption situations .................................... 44 Table 12. Percentages about the importance of aspects of wine, when consumers purchase .................................................................................................................... 45 Table 13. Percentages about the place where the purchase is made. .................. 46 Table 14. Percentages about the price which the consumers are willing to pay in a supermarket .............................................................................................................. 47 Table 15. Percentage about the price which the consumers are willing to pay in a restaurant .................................................................................................................. 48 Table 16. Percentages about the social class the respondents ........................... 49 Table 17. Percentages about the level of education in the responders ............... 50 Table 18. Percentajes about the age of the responders ......................................... 51 Table 19. Percentages of respondents by sex ........................................................ 52 ANALYSIS OF THE WINE SECTOR MARTA BARBERÁ FABREGAT 4 1. INTRODUCTION In this research consists in to analyse the wine sector, the innovation projects that are in the current wine sector and analyze consumer attitudes and habits about drinking wine through an empirical analysis. Justification The wine sector is of great importance in our country, especially because it generates great economic value. Spain is the country with the most planted vineyard area in the world and it has 85 production areas of quality wines with Designation of Origin. In addition, it is the world's leading supplier of wine in terms of volume and second in terms of value. However, the figures for wine consumption not put Spain in a good place, as it becomes the tail of European countries. But the most worrying factor is the low wine consumption among young people aged 18 to 35 years, the study published by SYNOVATE (2009) shows that 45% of respondents agree that know the wine before having 18, because the family environment or celebrations, but only 5.5% of young people between 18 and 25 declare to consume wine regularly and only 10% of young people between 26 and 35 years declares to consume quite often. With these data it shows that there is a problem among the younger society and consumption of wine. The age at which young people start drinking it advances increasingly and the quantities of alcohol they consumed are greater. It is interesting to analyze because it is a rare drink in the habitual consumption and to raise a number of solutions that can canviar the frequency of consumption. Objectives The main objectives of this work is the knowledge of consumer attitudes wine of the Valencian society. To achieve this goal, it is proposed as a tool, a survey or market research to provide us with data
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