DFJ Vinhos

: wines in China, a promising but difficult market : a case on internationalization process and positioning strategies

Abstract

The wine consumption in China has grown significantly and the prognosis for the following years seems very promising. In fact, with the increase of the middle class, the consumption habits within this country have started to shift, namely in what regards to the consumption of imported wines, which have achieved a prime position. Hence, China appears to be a market that no wine producer or exporter can afford to ignore. DFJ Vinhos, which has already occasionally exported to China, is a Portuguese wines’ company that aims to reposition itself within the Chinese wine market, turning occasional exportations into an ambitious project. The goal is to place 15% of its capacity in this market within the following two years. The challenge for José Neiva Correia, DFJ Vinhos’ CEO, is to find the correct place for his wines. Bearing this in mind, the cross point is: whether to position itself in a lower end segment, betting on higher turnovers, or risking in a higher end positioning through a well-orchestrated campaign. Furthermore, the company would have to take into consideration the fierce existing competition, the cultural expectations and the lack of visibility of Portugal’s brand image within this demanding market.

Date of Award	2013
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	João Borges Assunção (Supervisor) & Paulo Alexandre Gonçalves Marcos (Supervisor)