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Great Southern Drops

Discovering the New World

"We're fighting brand France, which isn't just wine. It's the gourmet and fashion fronts. That sort of thing is treated with great respect in Japan." Benjamin Holt, Wine Australia's regional manager for Japan.

As it is for most products, when buying wine, the image is more important than the substance. Unfortunately for Australia, a lack of a strong cultural image is a liability when trying to promote its wines in new markets - particularly in Asia.

Regional co-operation may be the solution to Australia's problem. Just as wine regions in Australia have banded together to promote their varieties, and their philosophies to an Australian market, "New World" wine nations should band together to promote the new world brand in Asia.

The New World nations share two significant traits that result in their wines being superior to those of the Old World. Firstly, they focus more on science than tradition. Secondly, the New World has ideal growing conditions.

Of course, the superiority of the wine counts little if the image isn't emotive. Although the New World hasn't effectively promoted its image, it has a number of characteristics that have great emotive appeal. One characteristic is the natural imagery. Pictures of Table Mountain of South Africa, the Andes of Chile, the desert land of Australia, and the glacial purity of New Zealand all have emotive appeal in Asia. Fortunately, such imagery is very easy to incorporate into wine advertisements.

In addition to the natural imagery, the New World also has some cultural imagery. South Africa has opera singers. Chile has latin dancers. As for Australia, although it may surprise many to know, the country has some cultural imagery that it should use to its advantage. One desirable form of cultural imagery is opal jewellry. Australia produces 90 per cent of the world's natural opal, and the opal's incorporation into pendants, broaches, rings and earrings can give Australia a sense of high-class culture. In addition to the opal culture, Australia also has a strong wood craft culture. Arguably, Australia's wood craft is the finest in the world. Pieces are vesicles of emotion, impressions of the natural environment and a bridge between the world of bush and humans. In China, the Australian style of wood craft is very very desirable. Finally, Australia has a strong horse racing culture. Again, combined with the fashion and the money, Australia's association with horses creates a bit of a casino image that can give the New World brand a sophisticated image.

As well as helping infuse some high-class culture into the New World brand, Australia can also infuse a track record of wine sales success. From 1990 to 2000, Australia increased its annual exports from 38 million litres worth $121 million, to around 354 million litres worth $1.7 billion - a 10 fold increase in volume and a 14 fold increase in value. In 1975 Australia was a net importer of wine. Today, it is the world's largest wine exporter behind France, Italy and Spain. In England, one of the world's most objective wine markets, it has the majority market share - surpassing even the French.

Aside from helping promote wine in Asia, a New World brand would help overcome some of the parochialism that hinders New World nations selling to each other. A similar psychology can be seen in an Albert Einstein quote about how different identities would be made salient by people who wanted to sell or reject him. According to Einstein:

"If my theory of relativity is proven correct, Germany will claim me as a German and France will declare that I am a citizen of the world. Should my theory prove untrue, France will say that I am a German and Germany will declare that I am a Jew."

Parochialism is not just limited to nations. It also extends to families, to cities, to states, and to collections of like-minded nations. These various identities are not mutually exclusive. Depending upon the stimulus that is communicated, the same individual may feel a different identity is important at different times. For example, at one time, a Melbournian's identity as a Melbournian will be important. At other times, being Australian will be more important. In some cases, he or she may even identify strongly with the human race. Likewise, a successful New World brand would helps form another social identity that potential wine buyers could feel an affinity with. Wine drinkers still identify with regions at specific times. At other times they identify with countries. At other times, they identify with the New World. As a consequence, the potential parochial supporters for each New World wine maker increases.

Applying such a theory would be very consistent with Game Theory – the theory that won John Nash the noble prize in 1994. Game Theory proposes that the best outcome is achieved when a individual does what is best for him or herself, and what is best for the group. The co-operative marketing within Australian wine regions is an example of such an application. Extending the principle to include other New World countries is much the same, except it is thinking bigger picture.

 

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