Geographical indication as a market orientation strategy: An analysis of producers of high-quality wines in Southern Brazil

Abstract

To meet the current and future demands of both domestic and foreign markets, organizations have to be market driven. The aim of this study is to assess the economic performance of wineries specialized in high-quality wines from the Vineyard Valley in the state of Rio Grande do Sul, Brazil, using geographical indication (GI) as a market orientation strategy. Wines with the Vineyard Valley designation of origin, as market orientation, improved economic performance as a result of increased land values; increase of the planted area; improvement of technological standards; rise in tourist flow; acknowledgment through the Vineyard Valley designation of origin; increase in consumption; product differentiation and value added; boost in exports; and internationalization. This way, by implementing GI, market-driven organizations can gain access to export markets, increase their export revenues and improve the quality of life of all agents in the agribusiness sector, resulting in greater satisfaction and helping obtain differentiated performance. © 2012 Macmillan Publishers Ltd.