Does innovation propensity influence wineries’ distribution channel decisions?

2018 ◽  
Vol 30 (4) ◽  
pp. 446-462 ◽  
Author(s):  
Gian Luca Casali ◽  
Mirko Perano ◽  
Angelo Presenza ◽  
Tindara Abbate
Keyword(s):  
Cluster Analysis ◽  
Negative Relationship ◽  
Distribution Channel ◽  
Distribution Channels ◽  
Wine Industry ◽  
Strategic Decision ◽  
Social Implications ◽  
Content Type ◽  
Wholesale Distribution ◽  
The Way

Purpose The aim of this paper is to analyze the relationships between distribution strategies and the level of innovation propensity in the winemaking industry. It intends to identify the existence of patterns around the way wineries innovate and the way distribution channels are used. These determinants can support or constrain wineries’ behaviors in their strategic choices related to distribution channels. Design/methodology/approach The sample comprised 191 Italian small- to medium-sized enterprises in the wine industry. First, a two-step cluster analysis was used to identify patterns in the level of innovation propensity and differences in distribution channel strategies. Second, the research question was tested using multinomial logit regression. Findings Five clusters of innovation propensity were identified, varying from “no propensity to innovate” to “propensity for radical innovation”, and three clusters of distribution channel strategies were found. A significant negative relationship between innovation propensity and distribution channel strategies was revealed. This means that the greater the propensity to innovate, the smaller the need for a wholesale distribution option. Research limitations/implications As with most research, there are limitations to this study. First, the sample is from only one country. A second limitation is the sample size (191 Italian firms). A sample including large firms can be used to further validate the findings. Linked to the sample, another possible limitation is that all respondents were small- and medium-sized enterprises from a single industry. Practical implications This study contributes to the current innovation research by showing the existence of a negative relationship between innovation propensity and the choice of distribution channel in the wine industry. This knowledge is precious to entrepreneurs and managers in the wine sector, allowing them to better consider not only the type of strategies related to distribution channels but also the importance of building the firm’s propensity to innovate into the strategic decision-making process. Furthermore, the paper provides an opportunity for practitioners to reflect upon the fact that changing the distribution channel is more than just changing the outlet for their product; it might also require a revision in their innovation propensity to better facilitate the process. Social implications There are also social implications, in particular providing an advantage for consumers. The major advantage is based on the fact that consumers are now aware that the level of innovation propensity in a wine industry is directly linked to the type of distribution channel adopted. Therefore, wines with low-innovation propensity are most likely found to adopt wholesale distribution strategy, while the more innovative wineries adopt the wine expert and direct distribution channels. Originality/value For the first time, a cluster analysis approach was used to review different typologies of Italian wineries based on their propensity toward to innovation and subsequent distribution strategies. This study further explains the direct relationship between innovation propensity and the strategic choice toward between long or short distribution channels.

Skyworth TV: channel dynamics and growth in China's rural market

2013 ◽  
Vol 3 (4) ◽  
pp. 1-13
Author(s):  
Sherriff T.K. Luk ◽  
Ivy Siok Ngoh Chen ◽  
John Coombes
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Consumer Behaviour ◽  
Emerging Market ◽  
Distribution Channel ◽  
Distribution Channels ◽  
Channel Network ◽  
Household Appliances ◽  
Content Type ◽  
Brand Reputation

Subject area Marketing. Study level/applicability Target audience this decision case has been tried and tested in a classroom setting with final-year undergraduate BBA students and postgraduate students studying an MSc in marketing. The specific course in which this case was used was marketing management in China. This case may also be suitable for an undergraduate or masters level courses in consumer behaviour, distribution management or marketing in China. The case covers environment analysis, market segmentation, consumer behaviour and distribution channels. Case overview Skyworth, a Chinese manufacturer of television sets, was faced with some major decisions. Government subsidies on consumer purchases of household appliances had stimulated demand for TV sets especially in rural areas. However, there were limited distribution channels serving rural areas. Large-scale nationwide chain stores like Gome and Suning served mainly urban areas and top-tier cities. These retailer chains were less interested in selling TV sets as their profit margins were lower. How should Skyworth set up its distribution network to take advantage of the growth in rural markets? Establishing its own channel network would involve huge investments that would affect Skyworth's profits in the next few years. Relying on existing retailer chains may not give it the coverage it wanted. Skyworth's brand reputation had also suffered because of poor product quality and customer support. Can the distribution channel network help to improve its brand reputation and customer loyalty? This case highlights how government policies in China can shape the growth of the household appliance market and change consumption patterns. Expected learning outcomes By studying this case, students will: 1. Examine how environmental factors affect television manufacturers in China; 2. Understand the buying behaviour of rural households for household appliances; 3. Examine distribution channels in an emerging market; 4. Evaluate a company's product portfolio strategy; and5. Suggest segmentation bases for the market for television sets in China. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or e-mail [email protected] to request teaching notes.

Energy consumption flow and regional economic development: evidence from 25 economies

2017 ◽  
Vol 12 (1) ◽  
pp. 96-118 ◽  
Author(s):  
Bao-jun Tang ◽  
Pi-qin Gong ◽  
Yu-chong Xiao ◽  
Huai-yu Wang
Keyword(s):  
Cluster Analysis ◽  
Economic Development ◽  
Energy Consumption ◽  
Negative Relationship ◽  
Regional Economic Development ◽  
Embodied Energy ◽  
Gdp Per Capita ◽  
Regional Economic ◽  
Content Type ◽  
Per Capita

Purpose This paper aims to figure out the relationship between energy consumption flow from a new perspective of embodied energy inventory index (EEII) and regional economic growth. Design/methodology/approach The input-output approach has been applied to calculate embodied energy inventory (EEI) and EEII using the data of 25 economies. Meanwhile, cluster analysis and panel data modeling were applied to carry out detailed research. Findings The results of cluster analysis show that there is a roughly negative relationship between EEII and gross domestic product (GDP) per capita, although there are some exceptions, such as Russia and Taiwan (Province of China). Panel data model results provide further evidence that there is a negative relationship between EEII and GDP per capita. Population is an important productive factor in the regional economic development. The study showed a positive relationship between EEII and population. Therefore, energy consumption flow is closely related to regional economic development. Originality/value The value of this paper is to use EEI and EEII to comprehensively clarify the energy consumption flow. The advantage of EEII is that it can reflect the energy embodied in fixed assets and infrastructure.

Strategic project management as an innovative approach for sustainable green campus buildings in Africa

2016 ◽  
Vol 5 (3) ◽  
pp. 261-271 ◽  
Author(s):  
Pantaleo Mutajwaa Daniel Rwelamila ◽  
Neha Purushottam
Keyword(s):  
Project Management ◽  
Green Building ◽  
Strategic Decision ◽  
Content Type ◽  
Green Campus ◽  
Management Approaches ◽  
Contemporary Management ◽  
Seamless Connection ◽  
Strategic Project ◽  
The Way

Purpose Across the African continent many colleges and universities are facing hurdles in sustaining green building initiatives. Often the barriers to green building are not purely financial, they include a significant number of non-financial issues directly connected with the way green building initiatives are integrated within the management of these higher learning institutions (HLIs). The purpose of this paper is to explore the reasons behind widespread barriers and the ways in which the barriers could be overcome through strategic project management. Design/methodology/approach The paper includes a critical review of existing literature on barriers to sustaining green building initiatives and an argument is built on the need to manage these initiatives as projects. Consequently it establishes that there is a seamless connection between HLIs strategies and projects, hence strategic project management as a framework to sustain the green campus culture. Findings Despite numerous barriers facing African HLIs in embracing green campus buildings (GCBs) as part of their permanent business undertakings; this review strongly suggest a change of direction from “traditional approaches” to strategic project management, where all green building initiatives are transformed to programmes and portfolios dealing with sub-sets of the core business of HLIs. Practical implications Strategic decision to include green campus building initiatives (GCBIs) as part of HLIs core strategic business projects will bring permanence in GCB thinking and resources will be allocated to GCBIs and green campus thinking may become a norm and one of the metrics for organization success. Social implications Strategic project as a way to creating a conducive-environment for GCBIs success will become a constant and part of the way in which African HLIs are managed. Originality/value Contemporary management approaches like strategic project management is embraced as mean for allowing under-resourced African HLIs achieving significant reduction in greenhouse gas emissions.

Shavteli Winery: where to go from here?

2011 ◽  
Vol 1 (4) ◽  
pp. 1-27
Author(s):  
Armand Gilinsky ◽  
Brent Trela
Keyword(s):  
Emerging Economy ◽  
Subject Area ◽  
Government Support ◽  
Wine Industry ◽  
Strategic Decision ◽  
Export Market ◽  
Export Demand ◽  
Competitive Strategies ◽  
Content Type ◽  
Country Competitiveness

TitleShavteli Winery: where to go from here?Subject areaInternational marketing, national competitiveness, strategic decision‐making, wine.Study level/applicabilityUndergraduate and MBA.Case overviewThe nationally important Georgian wine industry by 2008 was in a deep recession due largely to the continuing 2006 Russian wine embargo, prior to which Russia had been the largest export market for Georgian wines. Second World War‐era Georgian wineries such as Shavteli (disguised), in the historic Racha‐Lechkumi wine‐producing region, were disadvantaged due to aging facilities, lack of tourist infrastructure, and inadequate capital to make needed changes to compete in the global markets for emerging economy wines. All nearby wineries faced continuing operating deficits, high inventory levels, and could lose much of their aging wine inventory to oxidation if they could not quickly sell more wine or convert the wine to brandy. To avert becoming another defunct producer, Shavteli needed a strategy. Industry observers were divided about whether Shavteli and its sister Georgian wineries should continue operating independently, seek government support, or form a marketing association to create new export demand. Students need to prepare a strategic plan for Shavteli and the Georgian wine industry.Expected learning outcomesStudents should develop well‐supported recommendations for competitive strategies in an emerging economy. Students should use strengths, weaknesses, opportunities, and threats and country competitiveness analyses to ascertain vision and mission, segmentation, targeting, positioning, and alliance strategies for international markets.Supplementary materialsTeaching notes.

Internet-based digitalmarketing strategies fordata-rich environments

2018 ◽  
Vol 31 (2) ◽  
pp. 98-113 ◽  
Author(s):  
Faiqa Kiran ◽  
Ahsan Zubair ◽  
Irum Shahzadi ◽  
Aamir Abbas
Keyword(s):  
Social Network ◽  
Social Network Analysis ◽  
Network Analysis ◽  
Longitudinal Design ◽  
Negative Relationship ◽  
Small Sample ◽  
Strategic Decision ◽  
Cross Sectional ◽  
Content Type ◽  
Rated Performance

Purpose The purpose of this paper is to first bring to light the essential digital strategies to study organizations. Second, how businesses can improve their strategic capabilities by using the information gathered from internet sources or networks. Third, this study investigates how employees in an organization tend to engage in positive and/or negative gossip and how gossips affect coworker-rated informal influence in organization and supervisor-rated performance. Social network analysis is used to find the underlying relationships between gossips, coworker-rated influence and supervisor-rated performance. Design/methodology/approach This research paper is divided into two parts. The first study based on profound synthesis of literature. Major digital sources to study organizations are identified. The strategies requirement for each channel is identified. Suggestions are given to managers to improve strategic decision-making based on big data. The second study is a cross-sectional study where questionnaires (survey) are used to elicit data. Social network analysis is used to analyze the data using ucinet 6 software. Findings The findings of the study pinpoint the skills required to analyze large data, available in organizations. The second study finds out that close friends are more engaged in gossips than coworkers who have only working relationships. The friends having high structural embeddedness are more likely to be involved in negative gossips. Coworker perceives those employees who are engaged in negative gossips as having high informal influence. However, there is negative relationship between negative gossips and supervisor-rated influence. Research limitations/implications The research study is cross-sectional in design; however, longitudinal design can be used to gain more insights about negative gossips and their effects. Second, a very small sample is used in this study. Practical implications This study can be used to understand informal communication network in the organization. Managers can use this channel to pass information quickly, as informal channels are faster than formal communication channels. This research can be used to understand the underling relationships between the coworkers in organizations Originality/value This paper provides guidelines to organizational life and information on how the informal networks within organization can be studied.

Millennial generation preferences for rosé wine

2019 ◽  
Vol 122 (8) ◽  
pp. 2443-2461
Author(s):  
Antonio Iazzi ◽  
Paola Scorrano ◽  
Pierfelice Rosato ◽  
Balakrishna Grandhi
Keyword(s):  
Small Sample Size ◽  
Distribution Channel ◽  
Small Sample ◽  
Wine Industry ◽  
Content Type ◽  
Academic Researchers ◽  
Descriptive Survey ◽  
European Markets ◽  
Self Administered Questionnaire ◽  
Rosé Wine

Purpose The purpose of this paper is to verify the preferences for the purchase of rosé wine by Italian and French Millennials, with the aim of allowing Italian companies to acquire knowledge in improving the positioning of this product in both the Italian and French markets. Design/methodology/approach The study involved a descriptive survey conducted between December 2018 and January 2019 on Millennials residing in Italy and France, intercepted via Facebook. In total, 500 valid responses to a highly structured self-administered questionnaire were collected. Descriptive and multivariate analysis techniques were used to examine the responses. Findings The two groups of Millennials show different preferences in the purchase of rosé wine. French Millennials rarely buy the product, and perhaps only for reasonable prices. Their purchasing process involves no characteristics of particular importance. On the other hand, Italian Millennials buy the product with a higher frequency and show a greater propensity to spend. In general, they attribute greater importance (though not a great deal of importance) to the characteristics of the product, paying attention to both its intrinsic aspects and its territorial origin and the quality certifications. Research limitations/implications The main limitation of the research is the small sample size. Future insights into the consumption of rosé wine will be sought in other significant European markets. Practical implications This study is of value to academic researchers, wine industry practitioners and other members of the wine distribution channel, as it provides insights into consumer behavior differences. Originality/value This research is the first to compare rosé wine preferences of Millennials in France and Italy.

Factors determining hotel activity outsourcing. An approach based on competitive advantage

2017 ◽  
Vol 29 (8) ◽  
pp. 2006-2026 ◽  
Author(s):  
Tomás F. Espino-Rodríguez ◽  
Juan Carlos Ramírez-Fierro
Keyword(s):  
Competitive Advantage ◽  
Negative Relationship ◽  
Strategic Positioning ◽  
Content Type ◽  
Study Results ◽  
The Matrix ◽  
Activity Performance ◽  
And Performance ◽  
The Relationship ◽  
The Way

Purpose The purpose of this study is to examine the levels of the main hotel outsourcing activities to identify the factors that determine the use of external suppliers for these activities. Design/methodology/approach A model was developed that analyzes the relationship between competitive advantage and outsourcing and how the relationship between competitive advantage and activity performance is affected by whether an activity is outsourced or not. Moreover, the study builds a matrix called “outsourcing and competitive advantage” where each of the activities can be placed. The study was carried out with a representative sample of hotels in a tourist destination, analyzing 12 activities from different departments in the hotels. Findings The study results indicate that there is a positive relationship between the competitive advantage of an activity and its outcome. In addition, the findings show that the relationship between competitive advantage and activity performance is stronger when the activity is developed internally than when it is outsourced. The study supports a negative relationship between the degree of outsourcing an activity and its competitive advantage. In addition, the findings showed that a change in the way of managing the outsourcing is determined by its performance. Practical implications This study aims to help managers make decisions about outsourcing by considering the perspective of the competitive advantage. Each hotel can situate the activities in the matrix created and compare itself to the sector mean for a strategic positioning of the outsourcing. Originality/value Most studies analyze asset specificity as a key variable; however, the competitive advantage has not been used in previous studies, in spite of being a better defined variable in the literature. This study classifies the activities into core and non-core and establishes their relationship with outsourcing. It also studies how the way of managing an activity (outsourcing or in-house) moderates the relationship between competitive advantage and performance. These aspects have not been analyzed in the literature..

To speak or not to speak the language of numbers: accounting as ventriloquism

2019 ◽  
Vol 32 (1) ◽  
pp. 337-361 ◽  
Author(s):  
Bertrand Fauré ◽  
François Cooren ◽  
Frédérik Matte
Keyword(s):  
Design Methodology ◽  
Democratic Republic ◽  
Social Innovation ◽  
Great Power ◽  
Social Implications ◽  
Content Type ◽  
Republic Of The Congo ◽  
Per Se ◽  
Practical Implications ◽  
The Way

Purpose The purpose of this paper is to extend the literature on accounting’s performativity by developing a ventriloquial perspective that directs the attention to the reciprocity between the accounting signs and the accountants: they both do things by making each other speak. This oscillation explains where accounting number’s authority, materiality and resistance come from. Design/methodology/approach In order to show the relevance of this approach, the authors examine various ways numbers manage to speak or do things in the context of video-recorded conversations taken from fieldwork completed with Médecins sans frontières (also known as Doctors without Borders) in the Democratic Republic of the Congo. Findings The analyses show how this ventriloquial perspective can inform the way the authors interpret what happens: when numbers do not say the same thing; when numbers are competing with other figures; and when numbers backfire on their own promoters. Research limitations/implications Even if some of the numbers studied are sometimes far from accounting per se, it shows how the absence or presence of accounting can make a difference. Practical implications The authors then discuss the implications of this research for accounting social innovation through accounting inscriptions. Social implications This perspective helps to understand that numbers can give great power, but that everything cannot be told with numbers. This is why making numbers speak is a great talent. Originality/value This refreshing perspective on accounting could be extended to other fields such as auditing and auditing.

Smartphones and wine consumers: a study of Gen-Y

2014 ◽  
Vol 26 (3) ◽  
pp. 188-207 ◽  
Author(s):  
Jean-Eric Pelet ◽  
Benoît Lecat
Keyword(s):  
Social Media ◽  
Distribution Channel ◽  
Wine Industry ◽  
Shopping Behavior ◽  
Foreseeable Future ◽  
Communication Tool ◽  
Content Type ◽  
Gen Y ◽  
Mobile Web ◽  
Social Media Platforms

Purpose – The purpose of this study is to explore the potential of m-commerce (mobile commerce) combined with social media for the wine industry in order to reach distinctive customer segments Differences about access to information and shopping habits on the Internet seem to exist according to the cohorts users belong to. Design/methodology/approach – Based on a study of 190 respondents, this paper describes the consumer behavior of the Y generation regarding several variables: level of Internet sophistication and orientation, brand loyalty, risk aversion, involvement, shopping behavior and perception of authenticity. Findings – Results of the study show that m-commerce and e-commerce applications using social media platforms may prove greatly efficient in the foreseeable future for wine growers. Different ways of selling and disseminating information about their products are observed. Research limitations/implications – The infancy of m-commerce implies a relative difficulty to gather data about m-consumption. Active users on m-commerce browse and purchase a few items on the mobile web and many brands still don’t have the proper interface of their website to fit with mobile screens. As a result, it is not easy to find users with similar interests on the mobile web based on product preferences, directly linked to their browsing and purchasing history. Practical implications – Results of the confirmatory study show that m-commerce and e-commerce applications using social media platforms may in the foreseeable future, offer wine growers greater efficiency to expand their selling opportunities and reach a wider audience. Social implications – This topic is promising since various data show that wine consumption is composed of 45% of occasional drinkers (once or twice a week); and between 25 and 34 years old, it is composed of 50% are occasional drinkers. Originality/value – Y-Gens are occasional drinkers and therefore, to link those occasional drinkers with wine, it is important to use social media as a communication tool and maybe a distribution channel to better reach this potential target.

A time series projection model of online seasonal demand for American wine and potential disruption in the supply channels due to COVID-19

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faizul Huq ◽  
Vernon Jones ◽  
Douglas Alfred Hensler
Keyword(s):  
Time Series ◽  
Time Series Data ◽  
Distribution Channel ◽  
Wine Industry ◽  
Switching Behavior ◽  
Series Data ◽  
General Applicability ◽  
Content Type ◽  
Online Sales ◽  
Consumer Switching

Purpose This study statistically examines the shifting distribution channels in the American wine industry based on the growth trajectory of sales, seasonality and disruption due to consumers switching to online platforms. The purpose of this paper is to design a model that will have general applicability beyond the wine industry. Design/methodology/approach The research uses regression-based additive decomposition of time series data to predict the trajectory of the market share for the digital distribution channel. The study develops a statistical prediction model using time series data between 2007 and 2020, inclusive, sourced from US Annual Wine Reports and Bureau of Alcohol, Tobacco and Firearms databases. Findings The results show an increasing trajectory of wine sales through the online distribution channel with predictable seasonality. The disruptive effects of consumer switching behavior point to a steady increase in sales due both to increasing demand and accelerating switching. Nevertheless, the model shows that bricks and mortar purchases will remain strong and continue to account for the bulk of wine sales. COVID-19 has caused a step function increase in online sales but this should moderate after the crisis subsides and can be tested further. Originality/value This study is original in developing a model for an industry where bricks and mortar sales are growing and are expected to remain strong while there is still identifiable switching to online sales. The wine industry presents a classic case of accelerating switching behavior where there is still a strong franchise for in-store purchases. The model should have general applicability to distribution channels beyond the wine industry where steady growth, marked seasonality and disruptive consumer switching are in evidence.

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