The Chilean wine industry: new international strategies for 2020

Abstract

Subject area – International marketing, strategic marketing, international strategy, strategic decision making. Study level/applicability – MBA and masters (international business, marketing, international marketing). Case overview – The Chilean wine industry has undergone numerous and profound transformations over the past 30 years. This transformation has allowed a new generation of talented viticulturists and winemakers to capitalize on Chile's viticultural paradise and to produce World Class Wines. Chile exports 70 per cent of its wine production; making it the world's most globalized wine industry. Despite these undeniable successes, Chilean wines face very high levels of competition in the different world markets and its average prices are substantially lower than those of its competitors. As a consequence, the industry's present profitability levels are low, and there is an urgent need to elevate the premium positioning and average prices to achieve a sustainable return in the long term. The Chilean wine industry is preparing a new strategic plan and international marketing strategy for 2020 aiming guidelines for a vigorous course of international development and defines the industry's vision, mission, positioning, strategic objectives, opportunities and plans of action with a new strategic marketing perspective. The aim of the case is to develop this new strategic plan and international marketing strategy for the Chilean wine industry. Expected learning outcomes – Students should be able to make a clear competitive analysis with the information provided in the case. Students should also develop positioning maps, SWOT analysis, vision, mission, benchmarking analysis, segmentation, targeting and positioning strategies for international markets. The issues of country of origin effect and country image are relevant as well for analysis and positioning of Chilean wines in international markets . Supplementary materials – Teaching notes.