Analysis of state and characteristics of wine tourism in Crimea, the definition of development opportunities

     • W - Weaknesses

     • O - opportunities

     • T – threats

In other words, SWOT analysis - an analysis of strengths and weaknesses of the market, as well as opportunities and threats from the external environment. «S» and «W» relate to the market, and the «O» and «T» to the external environment of the organization.

According to the results of situational analysis can estimate whether the company has internal forces and resources to realize the opportunities and counter threats, and what internal deficiencies requiring prompt removal.

The method of SWOT-analysis can determine both the internal and external factors that will influence the success of the case which makes it possible to analyze the resources and environment, in addition, to determine priorities. Analysis rather facilitates identification of strengths and opportunities that must be used, as well as weaknesses and threats that must be overcome. Through proper determination of the strengths and capabilities of the owner of the winery can compare policy options, make informed choices and to specify the strategy of action to create new concepts and plans. But we must understand clearly that you can control some of the weaknesses and threats, and some we do not have any effect.

There are five types of targets:

1. Economic: increased market share, improve product quality, caring for the environment, improve innovation, and improvement of service.

2. Resource: attracting skilled workers, attracting investment, improving infrastructure, creating animations and maintenance; greening of nature.

3. Innovation: the expansion of existing tourist number, the creation of new products, improvement of the existing proposals.

4. Social: increasing the income of workers, social security, job satisfaction, social integration, development of staff.

5. The objectives of the prestige of independence, image and prestige, political influence, social influence. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

4. Results of the study of the current state and development prospects and wine tourism in Crimea.

4.1. Analysis of Crimean wine market. 

     The current situation in the wine market in Ukraine is characterized by:

  1. The dynamics of the wine industry is about 5-6% per year. Increase in production capacity is achieved due to capacity by large enterprises and increase the volume of filling;

  2. Small manufacturers are working mostly locally, in their regions, and do not have a significant impact on the market as a whole;

  3. Domestic producers are forced to carry out the budget allocations for issuing licenses to a steady increase in excise tax has a negative impact on domestic manufacturers, forcing manufacturers to raise prices for their products or reduce the volume of production of cheap wine;

  4. In Ukraine, decreased production of natural grape wines. At the same time increased the production of powdered wine, and therefore, the market is characterized by the massive appearance of wine packaging Tetra Pak;

  5. As consumer preferences occur positive changes towards more expensive and quality wines, as well as the more significant - the orientation of consumers in the "natural wines".

     The volume of wine production in Ukraine to date has not yet reached the production figures before the anti-alcohol campaign in 1985, and hence production capacity today is far from being complete.

  However, the subjective and objective difficulties that exist in the industry do not make it an attractive investment for foreign companies. The main investors in Ukrainian winemaking, with rare exceptions, remain domestic companies.

In 2010, the proportion of wine at a price of 11-15 USD per bottle is about 23%, while last year the figure was 50% of the value. Production of $ 7 USD per bottle and disappeared completely from the shelves, while last year it accounted for 0.5%.

  From 9.8 to 4.4% decreased presence in the retail product price range from 7 to 10 USD per bottle.

     In turn, production of 20-27 USD reached a share of 36.4% against 12.9 USD last year. An increase in the more expensive wines showed: the share of the cost of 28-35 USD per bottle increased from 2.1 to 6.8%, 36-100 UAH. - From 1.8 to 2.2%.

According to the Association SOVAT for the 2009 vintage in Ukraine grew by 9.7%, amounting to about 18 million dollars. The most important dynamics is demonstrated by winemakers Odessa and Nikolaev regions, which could increase the volume of almost 27 (up to 5 million USD) and 23% (up to 3 million USD), respectively.

  In 2010, wine production in the Crimea increased by 14.7%, brandy - decreased by 25.9%

At last year production of wine in Crimea was 7737.7 thousand USD, which is 14.7% higher than in 2009.

  According to the Agriculture Ministry, in 2009, production of wine in the Crimea has increased in comparison with 2008 by 5.6% to 6688 thousand

Wine producers in Ukraine, now can not get money for products delivered from distributors and retailers. Those companies that do not want to run into debt stop the shipment.

      But this crisis has proven deterrent to the growth of international wines, unlimited growth is so afraid of Ukrainian wine after Ukraine's accession to the WTO and the reduction of import duties from 2-3 to 0.3-0.4 euros per liter. As a result of the crisis, today the country is practically impossible to bring products cheaper 4.5-5 dollars per bottle.

     Yet retail prices compared with last year, has declined. New World wine (Chile, Argentina) fell 25-30% (up to 34 USD per bottle), and Europe - 20% (from 39 USD per bottle). Sales volumes due to this almost doubled.

     True, the growing rate of the dollar reduced the growth rate. Importers have already corrected the prices, making them 20%. The result cheapening of imported drinks, compared with prices before the entry into the World Trade Organization will be at 5-7%.  Sold through a retail network of about 85% of all consumed products (in this case stands occupy about 20% of the total number of points), the remaining 15% are produced and consumed themselves or sold "by hand". For example, every twentieth family is alcoholic beverages.

       In the structure of sales of vodka and other spirits are about 65%, and wine - 20%. This ratio remains the last few years and significant shifts in favor of drinks with lower alcohol content, was observed.

On the export side, the data on its volumes are somewhat contradictory. According to statistics, and dollars, and the dollar amount of his contract, but managers surveyed wineries claim to be more export products abroad.

     Ukrainian wine market is reviving, growing more and more begins to resemble the other spirits markets. Wine production more closely linked to the activity of advertising companies, the degree of popularity of brands and marketing efforts. Most likely, the competition in the domestic market will benefit companies with strong brands. The consumer knows it is their, not interested, to which the union belongs to one or another market operator.

Problems with raw materials are forcing many manufacturers today, claiming a stable market position, to acquire their own agricultural production. In addition to the solutions so very real problem of the production of wine products, and featured another motive: a change of legislation concerning the classification of wines, vineyards and other "territorial binding" wine sooner or later still become a reality. And those who have time to react to such prospects, get a head start in the future.

     The emergence of new players will take place with sufficient regularity. This is caused not only by the fact that through the distribution system is still possible to achieve significant successes, but problems in positioning and marketing, even in many of today's market leaders. 

     Ukrainians market Branding of wine. 

     Brand - a brand at the national level, bringing its manufacturer significant added value. If we follow this definition, then the wine market of Ukraine there is no brand.

       Many owners of liquor brands disagree with me, they somehow just confident that own brands. What's the problem? By and large, the whole issue - the definition of concepts. If the brand is understood brand name, then no questions arise. If the brand is something more, then we discuss what is now in the wine segment, no.

       The main characteristic of the brand is recognition and customer loyalty. Brand - that is what allows you to emphasize a particular product from the mass counterparts, offered by competitors. Recognition of the wine brands in Ukraine does not exceed 40%.

     Consumer loyalty is hardly manifested.

The consumer is always looking for something new, try products from different manufacturers. Even if it is acceptable to its value, quality, design, soon to search resumes. The absence of wine brands can be proved by a simple comparison of the range of any two brands - they match up to 80 percent. But the brand - it is something unique in the eyes of your target audience.

The wine market brand - the unifying factor of internal communication, as with employees of the manufacturer, and with partners: distributors, shops, etc. Own Brand improves the efficiency of communication, but to become a brand, you need to significantly increase its awareness and consumer loyalty.

Why, in other brands of alcohol markets are, and the wine does not? Certainly, among the vodka and beer brands have real brands - no need to enumerate them, they are well known.

The presence of brands is due to the special national characteristics of the product: Vodka is a product of trust. 

The average consumer with great caution applies to the new vodka products, preferring well-known and "proven" commodity items. That's loyalty is formed.

  Ukrainian beer brands - a product of creative marketing managers of foreign beer companies. Those strategies that are used to promote beer abroad, and were carried on domestic soil, yielded excellent results.

   Another reason for the lack of wine brands is weak advertising support. The problem here is not only to legislative restrictions. A number of additional factors make the all-advertising ineffective. It should be noted, first of all, the limited advertising budgets. For example, according to the producers themselves, the margin obtained with a bottle of wine on average two times lower than the margin obtained with a bottle of vodka. If we add to this, and much smaller volumes of turnover in absolute terms, the difference in advertising opportunities to become more than apparent.

What's left for manufacturers and distributors to gain the consumer?

  Design and design again!

It should be recognized that the critical design fault in advance on the Ukrainian market is easy to explain - the fact that the Ukrainian buyer of wine is not too versed with increasing consumer demand for power quality, and thus more expensive products.

   If a customer has no preference, except, perhaps, the type of wine or country of origin, and he does not feel loyalty to a particular brand, then his choice is determined solely by the external attractiveness of the product: name, label design, bottle design, or PET package.

   The importance of design in promoting wine in the Ukrainian market will become clearer if we consider the situation of purchase: in the perception of the Ukrainian consumer wine - a festive drink. On the festive table should be, above all, a beautiful bottle.

Particularly important is the design during the initial selection of wine. Since in most cases (except in the premium wine) solution for a particular brand of choice is accepted at the store, the consumer chooses his eyes. In this case, very important is its beauty pictures, but not only.

To create a successful project, you must answer one simple question: why is the buyer of a few dozen of these (by type, country of manufacture, price) select the wine is your production? And he will choose it if you believe in product quality and conformity of the appearance of the inner content. Design should not just to attract attention, but also to give the maximum visual information about the product. If the wine on the shelf, for example, the Crimean, the buyer is at first sight should make sure that it is indeed a Crimean and not just like a product of Crimean wine.

     According to experts, the possible emergence of large international players, and large investments can seriously change the Ukrainian wine market.

At the same time the most problems occur in medium-sized companies, most of which are likely to disappear. Hence the eternal question - what to do? And the answer is: to prepare for the arrival of foreign players and meet them. The main weapon of upcoming marketing wars will be branding - something so far in the Ukrainian wine market there. Those companies, who want to secure a peaceful and prosperous future, should now think seriously about the need to invest much more effort and resources to develop and promote their brands. The conquest of loyalty - that is the foundation of successful marketing campaigns. As the Ukrainian consumer continues to buy the "eyes", the design will play a crucial role in attracting the target audience. But in order to keep the position requires not only high quality products, but also a more effective means of advertising and massive promotions. 

Wine market main problems.

   Now on the market of alcoholic beverages, there are two main problems. The first is the spread of illegal products.

Unfortunately, the Crimea is famous not only great wines, but poor imitations of these wines. Particularly clumsy forgeries strive to stick to the client in the summer, during high season. Falsification of the Crimean wines is at different levels, which can be purchased as a fake hand, and in the supermarket

The only radical method for the acquisition of this Crimean wine - buy them in retail stores, which have in any South Coast resort.

     The percentage of falsification in the wine market according to experts is up to 50% in Ukraine. It should not be confused with the concept of "shadow", characteristic of the vodka market. No, more properly, legally, but the buyer eventually gets completely the wrong product quality, which promised him a name, painted on the bottle.

Some manufacturers - completely legal, but not quite respectable - launched the production of the popular original Bulgarian names, such as the "Bear's Blood," "Monastic hut", "Mehandzhiyskoe", "Whisper of the monk," not observing the Bulgarian technology, using a blend of cheap wine stocks. This not only leads to cheaper products, but also to reduce its quality. After a well-known trademarks are the exact recipe, based on - the grapes of certain varieties. Breaking the mix - and you'll get a completely different wine. So this is mistake.

Its roots lie in the fact that, unfortunately, today, few domestic producers have and use their vineyards, while the good grapes - one of the foundations of any successful winery. And because high-quality foreign wine stocks are expensive, producers reduce raw material procurement requirements. The result is known: With this scheme, products are emerging on the market at dumping prices.

  Therefore, among the factors in the successful development of wine industry leaders and experts called streamlining legislation.

     Another problem associated with the advertising of alcoholic beverages. From 1 January 2010 in Ukraine is prohibited to advertise tobacco products, alcoholic beverages and related trade marks in all print media, except for specialized publications. The prohibition provided for in force the provisions of Article 22 "Advertising of alcoholic beverages and tobacco products, trademarks for goods and services, and other objects of intellectual property law, under which are produced alcoholic drinks and tobacco" Law of Ukraine "On Advertising". The very process of tightening the advertisement to combat excessive alcohol consumption started on 1 January 2009, when it was introduced a number of restrictions on advertising tobacco and alcohol.

However, today in the Ukrainian legislation does not give the definition of the term "specialized magazine", which allowed advertising of alcohol and tobacco.

  Thus, to date advertising of alcoholic beverages is prohibited on radio and television from 6 to 23 hours, in all print media, except for specialized publications in external and internal surfaces of transport vehicles and subway. Also prohibited advertising by means of internal and external advertising, with promotional activities, except for special exhibitions of alcoholic beverages.

Advertisements should not contain an image of the process of consumption of alcoholic beverages. It can not be located closer than 300 meters line of sight from the territory of kindergartens, secondary schools and other educational institutions in which children learn the age of 18.

     Sponsorship of the TV-, radio, theater and concert, sports and other events with the use of trademarks for goods and services, and other objects of intellectual property law, under which tobacco products are manufactured, is prohibited. But sponsorship is permitted with the use of trademarks for goods and services, and other objects of intellectual property law, under which alcoholic beverages are available. In general, sponsorship of events is prohibited for persons less than 18 years of age with signs for the goods and services produced by which tobacco products and alcoholic beverages.

     Advertising of alcoholic beverages, as well as trademarks for goods and services, and other objects of intellectual property law, under which these products are produced, must be accompanied by a text alert to the following: "Excessive alcohol consumption is harmful to your health."

      Each warning should be given not less than 15% of the area (volume) of all advertising. The color of the warning text should be black and the background color of the warning - white. In this regard, special attention to enterprises engaged in selling alcoholic beverages, should be given marketing policy, which should be the basis for the necessary market research. 

     4.2. The study of consumer preferences using questionnaires 

     According to the survey was conducted a series of operations that helped me to examine the result and help you see the situation of this tourism in Crimea. This summer, I vacationed in Yalta (Crimea) and decided to conduct a survey there, in the cradle of winemaking throughout Ukraine. Interviewing residents was conducted by different research such issues.

     More than 80% citizens of Crimea are using alcohol – this proportion based on data’s obtained by surveying.

     If we consider the sex composition Crimean consume alcoholic beverages, it should be noted, male consumers are not much more than women - 86 and 73% respectively.

       One of the trends in this market is a "rejuvenation" of consumers. So, today in Ukraine for more than 50% of adolescents aged 15-18 years consume alcohol.

       The study determined the frequency of consumption of the population of various alcoholic beverages.

     Frequency of consumption of wine was distributed as follows: approximately half of respondents (45.8%) use it 1-2 times a month, 14.7% - still less, and about one-third (31%) - do not use.

       
 
 

     According to a study in 2011 compared to 2010 the population of Ukraine decreased considerably the consumption of wine at 12.7%.

      But it is worth noting that the demand for fortified and sweet wines in Ukraine is falling, but in the dry - grows. Last year, the share of the latter was 12-15%. In 2012 - they can count on all 20%.

      Falling wine consumption observed among the Ukrainian population as a whole, For example, among those Ukrainians who consume alcohol (which is 60.4% of the population) tend to prefer wine 61.5%. In comparison with the previous year, wine consumption falls slightly - by 3.3%.