Nicaragua Mortgage

Moulton K. and Lapsley J. (2004); Marketing Strategies, Successful Wine Marketing,

Geographical concepts within the research question

Parker, R. (2004): Wine with an altitude: Argentine Malbec; Culinaire Publishers

Movement of information is rapidly affecting the vineyard because its consumers are getting more and more influenced by their surroundings. They are receiving news that these days wine that sells is pure quality wine. Other wine producers like Spain are making 100 % red wine rather than blends. Trends are created very fast and are also spread equally fast because of increased spatial interaction. Another piece of information that has been spreading quickly throughout the world is the issue of grapes. Companies are now emphasizing the type of grape that produced a given wine rather than the company name. This means that Bodega Catena needs to be aware of such trends created by better flow of information i.e. spatial interaction.

Statement of research question

This refers to the impact of global processes to locals. A cause for alarm in the wine industry and consequently for Bodega Catena vineyard is the fact that their consumers are dwindling in the international market. This is especially so in Europe and America. The youth have been ceased by a coke and beer loving culture. Fewer younger consumers are drinking wine. For example in the year 1995, France consumed about nineteen gallons of wine while in the year 2004 it consumed seventeen gallons. On the other hand, in the year 1989, Italy drank nineteen gallons of wine yet six years later the country drank sixteen gallons annually. In the wake of these challenges, vineyards need to resort to more stringent measures. Some of the tactics that have been used before by other wine producers include price reductions, distilling excess wine into alcohol for industrial use among others. The feasibility of such solutions needs to be examined in relation to the vineyard under study. (Tagliabue, 1997)

Bodega Catena is the largest vineyard in Argentina; therefore challenges facing the wine industry are quite related to challenges facing this vineyard. The product chosen for review has the potential to become large in the international markets but this has not been achieved. The country of location had some recent problems like an economic crisis in the nineties. These will need to be incorporated into the business processes of the Company. (Moulton and Lapsley, 2004)

Rationale for the research question

Tagliabue, J. (1997): Europe's wine industry is facing serious shortages; The New York Times (18th March)

Scale

The research question will be: ‘What can Bodega Catena Zapata vineyard do to attain international success?' When handling this question, one needs to look at the financial, climatic and production problems facing the wine producer and then come up with a suitable solution for the crisis.

PART 1: RESEARCH PROPOSAL

This refers to the effects brought about by global processes on place, neighbors and regions. The world is rapidly becoming a global village. Information about a particular issue within a distant country can be accessed by the click of a button. Consumer behavior is also following this trend. Most people are getting more similar and it is easy to penetrate markets now that it was before. This is because most markets are quite similar to each other. On the other hand, it can be disadvantageous because there is increased competition from external players within a particular industry; more and more companies are exporting their goods (Parker, 2004)

Selection of topic

This refers to the risk between local and global scales. Traditionally, European countries were associated with the production of wine. Argentinean wine producers were competing with relatively few players in the global market. In the recent decade however, there have been new players in the wine producing industry. These players come from unconventional countries like South Africa and Australia. This implies that vineyards in Argentina need to tighten their belts to stay ahead of the competition. Decisions made within the vineyard will affect their sales in the global market.

Gaithersburg, Maryland: Aspen Publication

Space, place and landscape

Wild, J. J. et al (2006); International Business, Prentice Hall

The topic chosen for discussion centers around the growth of a particular brand of red wine known as Malbec in ‘Bodega Catena Zapata'; this is a vineyard located in Argentina's Capital – Mendoza. The reason why the topic was selected is that there are certain economic concerns within the vineyard's location that need to be addressed before the vineyard can reach its full potential. Besides this, the vineyard produces a uniquely flavored wine that should make its stand out from the rest of the world in the market today. However, this has not been the case. There is a need to highlight some of the challenges that should be overcome by the vineyard in order to make it more influential in the international markets. Research shows that Malbec Wine from Argentina only accounts for one percent of all the red wine available in Europe. Bodega Catena vineyard is the biggest vineyard in Argentina and its actions will influence the overall image of wines from this country. (Anderson and Wittwer, 2001)

This refers to the movement of goods and information between people. Wines from the Argentinean vineyard have markets in the region; that is South America but they have been overtaken by wines from Italy and Spain. Therefore movement of their wines has been restricted by increasing competition from the external market. (Wild et al, 2006)

Human nature relations

Anderson K., N and Wittwer G. (2001); Globalization and the world's wine markets; Discussion Paper No. 0143, Centre for International Economic Studies, Adelaide University, Australia

Spatial interaction

Reference:

There are also recent revelations about the health benefits of red wine like Malbec. Therefore, Bodega Catena vineyard should realize this and put in place mechanisms to market its wine as beneficial to the consumers. Even though the European market is dwindling, there is potential for increased markets in untapped regions like Asia and Germany. Within these countries, people are discovering the positive aspects of taking red wine in moderation and the vineyard could exploit this potential.

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