Accounting & Marketing

Hellenic Winery: The prospects for growth through new management and marketing strategies and the potential for permeation into international markets: The case of ‘Ktima Gerovassiliou Winery’ as a typical example of the new era

Abstract

Nikolaos Kartalis* and Georgakoudis Ioannis

Some Hellenic wineries have succeeded, after a concerted effort during the last decade, to create quality products and the infrastructure to gain recognition of international markets. They set aside the traditionally cheap wine which was offered for decades, and they have focused on quality wine that highlights the particular characteristics and varieties of the Greek land. They are constantly awarded in major international competitions for their quality, authenticity and diversity.

In 2009, for the first time in the history, Greek winemaking sector developed a strategic marketing plan so as Greek wine to acquire its own unique identity that will make it recognizable internationally. It also identified the target countries to which export efforts should focus. Greek wine prevails in the Greek market with rates above 90% but exports are stagnating in volume. It is encouraging though that there is a remarkable growth in the value of exports. Therefore, there are large margins of development for an economic activity that is estimated to consist of about 1200 wineries, 180.000 growers and thousands of executives and employees. Among the pioneers of the new era, the ‘Gerovassiliou Winery’ shows the way for the development of an industry that is active in an extremely competitive environment and in an economy experiencing a significant recession in recent years. Extroversion is the keyword for Hellenic wineries, which at the same time should maintain their dominant position on the Greek market against imported wines.

Examination and analysis of the domestic and international market conditions and trends of marketing are key elements for defining the management strategies that should be followed from wineries and the selection of an appropriate marketing mix. This is important for the growth of such companies, which by increasing their profitability and creating new jobs will simultaneously help the Greek economy in the recovery effort.