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Argentina should use the “country of origin” effect to compete abroad

August 17, 2012 by Mariano Zalazar | in Latest news, News, Opinions

The Chilean marketing specialist, Christian Felzensztein, will be one of the speakers in the most important event in the wine industry. The lecture will be focused on clusters and regional innovation.

“Competitiveness and international marketing strategies of companies in the wine business”, is the title of Christian Felzensztein’s paper, International Marketing specialist, considered a “think tank” in respect of clusters and regional innovation. He will be one of the lecturers of “VIII Foro Internacional Vitivinícola 2012(8th International Wine Forum 2012), to be held on September 18 and 19 at Bodegas Los Toneles.

In an interview with WineSur, the expert underlined the advantages and disadvantages Argentinian producers have over their competitors. In this sense, he commented: “based on our comparative study of the wine industry called “International Marketing Strategies in industrial clusters: insights from the southern hemisphere”, which was conducted throughout two years in Argentina, Chile, New Zealand, and Australia, I dare say Argentine wineries are understanding the internationalization and international marketing processes, compared with other countries (Australia, Chile, and New Zealand).”

In the face of this, Felzensztein pointed out that Argentine wines should compete in international markets by means of the “Country of Origin” effect.

Argentina has passion, history, matchless geography (such as Mendoza and Patagonia) and a historical connection with Europe that should promote the new sectorial image of the wines. These elements, together with the quality and variety of grapes, are fundamental to strengthen marketing campaigns and strategies.”

The New World’s image

The expert stressed that international importers and buyers have an excellent image of the New World. “For instance, UK’s new market segments prefer wines from these countries, as they are regarded as young, cool, and especially “trendy” products. Likewise, he added that belonging to this category is an advantage for Argentina’s wineries.

Business reality

Felzensztein enlightened that in order for industries to have international trade success, the rules in the country of origin should be clear.  It is especially important the good business climate, entrepreneurship promotion, and clear supporting lines for small and medium- sized companies trying to internationalize by means of exports, joint-ventures, or opening sales offices around the world.

Moreover, he continued: “it is well known that companies are currently facing an increasingly competitive scenery all over the world. Besides, they are subject to the dilemma of competing and cooperating with other companies of the same sector. The fact of creating a global competitive advantage depends on each company’s capability.  This way, the different kinds of market knowledge, customers, and innovation of products are becoming more and more important.”

Translation: Carolina Lucesole

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