Romania between the Old World and the New World of wine!

Wine is a complex product that is fundamentally different from other types of products on the market. If we refer to what usually characterizes a product, we can see that there are major differences between wine and any other drink or food product such that:

1. The quality of a wine depends on the climatic conditions of each year, so there are no wines identical from one year to another. Over time, a bottled wine, the same wine, the same year, evolve in the bottle, so it changes its qualities. 

2. The properties of the wine and the perception of each of its attributes are influenced by the consumer's level of knowledge and experience. Evaluations of wine characteristics, in most cases, are subjective and are influenced by the situation or occasion, by the level of attachment to the producer, and to the product.

3. The wine brand or identity involves the simultaneous growth of several interrelated identities. So we have the identity of the producer, of the winery, which can be generically called the "master brand", but at the same time we have the wine ranges that can be considered sub-brands, as long as they are related to the producer's reputation, and each wine range has individual products, different varieties, and styles of wine. 

4. The consumer: normally, a consumer product should satisfy a market requirement of a consumer profile. In the case of wine, there is no market requirement, it has to be created. Much market research shows that there is no one wine market and no typical wine consumer. Instead, the wine market is made up of several, sometimes very niche, segments that are influenced by demographics, psychographics, and the situation in which it is consumed.

In addition to all the points presented above, we also add the fact that wine, more than a simple product, needs: serving service differentiated according to color, winemaking style, age of the wine; culinary association, and/or choice of wine in accordance with the event in which it is consumed; consumer experience.

If we are to discuss wine quality this time from the perspective of the producer and not the consumer, we will find that there are three directions of production. 

A production-oriented approach, a market-oriented approach, and an experience-oriented approach.

The difference between the three types of approaches lies in realizing who ultimately determines the quality of the wine produced by the winery.

A production-oriented approach may result in the production of wine, defined as qualitative by the producer and by certain standards, but with no particular consumer or market in mind. Instead, there is an inherent belief that the product is there and because it is "good" it will sell.

In a market-oriented approach, producers realize that it is the consumers who decide the quality of their wine, by virtue of their decision to buy it, not just once, but as part of an ongoing buying relationship.

The experience-oriented approach involves paying close attention, in wine sourcing, to the needs and experiences of consumers, and customers, and how they create and add value for customers in all production and sales chain elements. It combines market-oriented ordering with consumer engagement in unique experiences.

Romania today is still trying to create its identity. 

Being in the Old World of wine, because we are geographically located in the European space as viticultural areas and production, Romania does not have its own identity that fits into this old world of wine. 

This is partly because there was no continuity, the communist period broke the ties of tradition, family, and place-related identity, which characterize the Old World, and on the other hand, the new businesses in this field that started to appear relatively recently on market belong to people who never intended to make wine.

Encouraged by the European funds to support the replanting of vineyards and the purchase of equipment for the wineries but also attracted by the romanticized positioning of a wine producer, as part of a symbol and a social status, the investors were blinded by the idyllic image until the moment they came across the reality of marketing and selling wine.

All these aspects are rather characteristic of the New World of wine, and the skills of these new investors, both in making and selling wine, vary widely.

In the "Old World" of wine, wine is part of everyday life for millions of people. They grew up with wine, drinking it at every meal, and learned about its provenance, production, and quality through this experience and exposure. For these people, wine is sustenance, culture, and spirituality all rolled into one. Here, the consumption of wine (albeit at different levels of "quality") knows no class distinction. 

In the "New World" (primarily the wine-growing regions of South and North America, Asia, South Africa, Australia, and New Zealand), on the other hand, wine became a symbol of status, knowledge, and power. It is associated with special occasions and was usually reserved for a relatively small part of the middle class. For many of these people (and the upper echelons of Old World society), wine became a fashion item consumed to show who they were and what they had accomplished. Indeed, according to Brook (2000b, p. 21), fashion "came to influence not only the style of winemaking but the very color of the wine." Wine is therefore consumed as an experience, an event, and an emblem (Unwin, 1996; Brook, 2000a; Charters, 2006). 

Starting from the above, we can conclude that Romania is, today, at the intersection of the two worlds, in a desperate attempt to shape its own identity and brand. 

These historical distinctions between Old World and New World investors and consumers are only the tip of the iceberg when it comes to the complexity of the ever-changing wine market.

In this journey of identity penciling, it is absolutely necessary, if not mandatory, that most manufacturers move towards a market-oriented and experiences-oriented approach. 

Firms that follow a market-based and experiential approach focus on developing distinctive wines, building long-term relationships with customers, and understanding what is happening in their various chosen markets. They know their products create a niche their competitors can't penetrate and develop marketing plans with measurable goals and specific objectives.

Such an approach, transposed at the national level, could help Romania achieve a strong and stable country brand.

Article extracted from the presentation made by Ioana Bidian,
for Transilvania Executive Education, Economics for Managers & Entrepreneurs Module.
Copywriting: ArtVinium