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Competitive advantage in the world of wine—an analysis of differentiation strategies developed by sectoral brands in the global market

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  • Micu, Daniel Marian
  • Arghiroiu, Georgiana Armenița
  • Micu, Ștefan
  • Beciu, Silviu

Abstract

This study aims to analyze the differentiation strategies developed by sectoral brands in the global wine industry and how these strategies interrelate. A sectoral brand is defined as having a distinctive brand name accompanied by a visual identity, with or without a slogan. Through an analysis of thirty-three sectoral brands developed by wine-producing countries, seven clusters of differentiation strategies and three clusters of differentiation attributes were identified, using quantitative and qualitative methods. The findings highlight the alignment between the differentiation strategies employed by sectoral brands and the underlying theoretical concepts, as well as overlaps between differentiation strategies and specific attributes. The results identify unrevealed opportunities for wine-producing countries that have not yet developed sectoral brands. This study’s main contribution consists of the application of a cluster analysis approach, which enabled the identification and interpretation of relationships among sectoral wine brands based on their differentiation strategies. Accordingly, the research addresses a notable gap in the existing literature by providing an integrative perspective on how sectoral brands differentiate within the world wine market. The practical implications of this study include offering valuable guidance to countries currently lacking sectoral wine brands and presenting a structured framework to effectively leverage unique national attributes.

Suggested Citation

  • Micu, Daniel Marian & Arghiroiu, Georgiana Armenița & Micu, Ștefan & Beciu, Silviu, 2025. "Competitive advantage in the world of wine—an analysis of differentiation strategies developed by sectoral brands in the global market," LSE Research Online Documents on Economics 128279, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:128279
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    File URL: http://eprints.lse.ac.uk/128279/
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    References listed on IDEAS

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    1. Schamel, Günter, 2009. "Dynamic Analysis of Brand and Regional Reputation: The Case of Wine," Journal of Wine Economics, Cambridge University Press, vol. 4(1), pages 62-80, April.
    2. Hervé Remaud & Jean-Pierre Couderc, 2006. "Wine business practices: A new versus old wine world perspective," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 405-416.
    3. Claudiu-Catalin Munteanu, 2015. "Competitive differentiation through brand extensions in the era of hyper competition," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 18(55), pages 57-70, March.
    4. Piermichele La Sala & Raffaele Silvestri & Francesco Contò, 2017. "Differentiation strategies for the wine and nursery sector: empirical evidence from an Italy region," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-17, December.
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    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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