Kudler Fine Foods: Justification of Research Paper

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These two types of wine alone had contributed to 90% of the total export growth.

Italy saw a major rise in wine production in 2007 which again came from growth in production of sparkling wines. "Trade committee within the framework of Consortium Asti Spumante (Consorzio dell'Asti Spumante) declared that in comparison with the previous year the sales of sparking wines grew by 11.9% to total 78.8 million bottles. Export figures of the organization's members went up by 13% with 80% of the total volumes of products going for export. Such considerable growth is the result of 48% sparkling wine sale increase at the Russian market and 13.1% at the British market respectively." [1]

Knowing this, we can say that while local consumption may be shrinking, Italian wine market itself is expanding considerably thus making it a very attractive place for wine producers and sellers.

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But the one big problem is the issue of pricing. Kudler foods cannot expect to fetch the same price that it may have expected previously because Italians are not consuming as much wine as they are exporting. If they are exporting, this shows they have a surplus in their own country and hence can very well manage on their own without international However if Kudler wants a share of this market, it will have to introduce high class wine items at very competitive rates. Also if it plans to capture some of the export market from Italy, it will need to offer competitive quotes so its prices would look attractive to importers and this will help Kudler penetrate the market and become successful.

Reference

[1] Data on Italian wine production comes from "The Wine Market of Italy." http://www.export.by/en/?act=s_docs&mode=view&id=1769&doc=64.....

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