Michael Beverland

Uncovering “theories‐in‐use”: building luxury wine brands

Despite the high profile of many international luxury brands, little is known about the processes by which these brands are created and how their market position is maintained. Research and practitioner experience suggests that these brands focus on building abstract, “timeless” images or dreams. However, no systematic research has been carried out on the processes and strategies of luxury marketers. Based upon case studies in the luxury wine trade, this research sought to uncover the tacit processes underlying the creation and maintenance of luxury wine brands. Results highlight that luxury brands are a complex combination of dedication to product quality, a strong set of values, tacit understanding of marketing, a focus on detail, and strategic emergence.

Organizational Life Cycles in Small New Zealand Wineries

Hanks (1990) noted that the life cycle analogy was developed in order to explain the development of organizations over time. Traditional management theories had failed to take into account issues such as organizational age, size, and complexity when they attempted to explain organizational effectiveness (Quinn and Cameron 1983). A central tenet of life cycle theory is that organizations move through a series of phases. Hanks et al. (1993, p.7) defined a life cycle phase as a unique configuration of variables related to organization context or structure. In a review of lifecycle models, Hanks et al. (1993) found that common across all models were start-up, expansion, consolidation, and diversification stages. All models stated that organizations grow larger and more complex as they age. As organizations develop, they go through a series of stages, deal with a number of different challenges, conflicts, and problems, and adopt different strategies and skills. Hanks (1990, p. 1) argued that a valid life cycle m odel would be of great value to those managing growing firms: It could provide a road map, identifying critical organizational transitions, as well as pitfalls the organization should seek to avoid as it grows in size and complexity. An accurate life cycle model could provide a timetable for adding levels of management, formalizing organization procedures and systems, and revising organization priorities. It could help management know when to let go of cherished past strategies or practices that will only hinder future growth. Despite the proliferation of models, attempts to prove the existence of a general model of life cycles have failed (Levie and Hay 1998). They argued that although life cycle models may provide an explanation of firm growth at an industry level, the existence of a general theory is unlikely McMahon (1998), like Hanks et al. (1993), called for the use of qualitative research to attempt to develop inductive models of firm growth. Life cycle models have also been criticized by small business experts for not taking into account the fact that many small business people may be motivated by factors other than a desire for profit and growth (OFarrell and Hitchens 1988). Life cycle models assume that economic growth is desired and therefore it would be appropriate to examine whether life cycles occur in growth-oriented firms. The purpose of this article is to examine the developmental patterns of profit-driven wineries in New Zealand through the use of in-depth case studies. The New Zealand Wine Industry The current life cycle stage of the New Zealand wine industry is critical for understanding the context within which the sampled firms operate (Swaminathan 1995). Beal (2000, P. 34) argued that an industrys life cycle stage could be characterized by: (1) Growth in the industrys sales during the past five years; (2) level of demand for the industrys products; (3) stage of development of the industrys products; (4) level of diffusion of information about the industrys products; (5) plant capacity over the past five years; (6) current price level of the industrys products; (7) growth in the different types of distribution channels for the industrys products; (8) level of the industrys advertising expenditures over the past three years. Some of this information is contained in Table 1. From 1990-1999, the number of export markets for New Zealand wine has increased, opening up a range of new distribution channels. A recent industry survey highlighted increased marketing activities in the industry, and in this context, New Zealand has established a reputation for the production of fine wine (Beverland 1999). This information would support the view by Rabobank (1999) that the industry is in a growth stage. This has attracted a number of new small start-up wineries into the industry. A recent survey by Beverland (1999) found that although most of these start-ups are motivated by a desire for personal fulfilment and economic return, many had little understanding of business issues. …

In search of the right in-store music

Have you ever been in a retail store without giving much thought to how long youve stayed there? Do some shoppers seem to move to the beat of the music while others opt for a hasty retreat? Professionally programmed in-store music can be the means to creating a powerful competitive edge. By providing the right sound, retailers can increase customers stay time, make a long-term link with their target market, and influence perceptions of product and service by building customer-brand relationships. However, they must identify a sound that will reflect their brand, help achieve their strategies, and interact harmoniously with other atmospheric elements.

Crafting a competitive advantage: tempering entrepreneurial action with positioning‐based values

The essence of entrepreneurship is “effectual action”. Researchers at the entrepreneurial/marketing interface suggest that small firms adapt marketing theory to their needs, undertaking a range of emergent actions in response to day‐to‐day events and problems, without recourse to formal planning or research. By way of contrast, brands require guided action, in order to build a sustainable position in the marketplace, while research also reveals that small specialist firms increase their chance of failure if they undertake a range of unguided actions that lead to niche drift. Based upon an in‐depth case study, identifies that SMEs do benefit from constant actions, but only if guided by a strong set of positioning values, which are diffused into an organisational culture, primarily via the actions of the leader.

Creating value through brands: the ZESPRITM kiwi fruit case

Agricultural products are generally characterised by their commodity status. After years of poor returns, the New Zealand kiwi fruit industry developed the ZESPRITM branding program in an attempt to position New Zealand kiwi fruit as an upmarket fruit category that appealed to today’s consumers. The brand has recently been released in New Zealand. This research assesses the effectiveness of ZESPRI’s strategy and explores the implications for branded fruit produce in general. The level of brand awareness of ZESPRI was found to be low among consumers, however brand awareness could be increased through a relationship marketing program involving targeted marketing and supply‐chain management.

Relationship Strategies for Market Entry

Abstract With the fall of Communism, many New Zealand exporters joined the initial euphoria of the business community and took steps to re-establish trade with Eastern Europe. Despite some initial problems, most exporters are now establishing themselves in these markets. This paper examines the strategy of two large New Zealand firms and argues that forming a relationship with Eastern European traders is context driven. It is further argued that relationship-marketing models more accurately capture the trading realities of market entry in Eastern Europe. Based on the case studies, a series of propositions are developed examining the role of uncertainty in market entry, the formation of alliances and

AdultShop.com: establishing legitimacy with the “virgin” consumer

Despite the recent failures of many e-businesses, the consensus remains that firms will need to develop e-commerce strategies if they are to compete in the future. However, there is little by way of empirical research on how firms can successfully do so. We examine a case of a large global Internet start-up in a heretofore neglected sector, that of adult entertainment. Our findings indicate the difficulties faced by Internet start-ups, as they seek to build mass-market penetration while controlling marketing and acquisition costs. The case also demonstrates the role that historical positioning and previous industry associations play in the development of an online brand.

The Partnering Role of Salespeople in a Business-to-Business Setting

ABSTRACT The salesforce plays a crucial boundary-spanning role between an organisation and its customers. Recently, Weitz and Bradford (1999) have argued that the sales function needs to take a far greater role in forming relationships with customers than it has done in the past. This will have implications for the way organisations manage their salesforce. This research seeks to examine changes in the role of sales in a business-to-business setting. Based upon in-depth interviews this research finds support for the requirement that salespeople need to form “partnerships” with customers. Organisational support for salespeople consisted of using virtual teams and a customer focused culture.