Global Marketing of Wine

This research reviews the activities of LVMH Moet Hennessy Louis Vuitton of France within the context of the global marketing of wine. The findings of this review are presented in discussions related to (1) background of the firm, (2) the firm's globalization history, (3) STEP analysis, and (4) the global strategy of the firm.

The family-owned cellars, as major players in the wine industry in France, have virtually disappeared (Echikson, 112). The surviving entities are conglomerates that articulate the language of brand management and asset utilization. Acutely attuned to the difference between mass and class, they have learned to walk the fine line between exclusivity and demand rationing. Among these conglomerates is the world's largest luxury group, LVMH Moet Hennessy Louis Vuitton of France, who, among other things, purvey Moet & Chandon champagne and Hennessy cognacs.

Since 1993, the firm's sales have been increasing at an average rate of 20 percent per year, while profits have been increasing at an annual rate of 36 percent per year (Echikson 112). LVMH gives each of the firm's brands almost complete freedom to pursue its own vision.

The LVMH conglomerate was capitalized at US$14 billion on the Paris bourse (Echikson 113). The firm has approximately 15,000 employees, and annual sales exceed US$5 billion (Osborne 12-25).

Richard Hennessy began making brandy in Cogn

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emaining markets and is also traditionally divided into two sectors·champagne and sparkling wines, or vins mousseux (Wine 65). The labeling of champagne is most rigorously controlled by law and it must be produced from only three varieties of grapes (Pinot Noir, Pinot Meunier and Chardonnay) cultivated exclusively in the French province of Champagne. France is one of the world's leading producers of wines, and perhaps the most famous of all grape growing countries (Wine 67). As befits its status, the country boasts a substantial wine production which has fluctuated in accordance with annual harvests, and remains heavily influenced in the longer term by the total land area given over to viniculture. Output of wine has fluctuated downwards for a number of years now in accordance with the trend in consumption within France (Wine 67). Thus, a global marketing strategy is important to the French wine industry. Global Strategy of the Firm A part of the firm's global strategy in marketing fine wines is to maintain a high sales price (Echikson 112). The purpose of this elements of the firm's strategy is to preclude a devaluation of the brand name Building and maintaining brand equity is an objective of the firm's global strateg
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Some common words found in the essay are:
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Approximate Word count = 1431
Approximate Pages = 6 (250 words per page)

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