- Language
World Wine Economy
GIANFRANCO TEMPESTA
MONICA FIORILO
THE VINEGROWING AND WINE-PRODUCING WORLD
1. BRAND VALUES AND THE AGRI-FOOD SECTOR
The word "Brand" equivalent to "Marca" is now everyday use in the market. They distinguish a company and recall a product through the associations and thoughts a person develops towards a company and what it sells.
The connection on the part of the client is immediate through conditioning that associates the perception of a determined figure (brand or logo) with an object that, according to Pareto, "can satisfy individual needs with goods and services." (Ofelimity).
The origin of the word "brand" is the metonymy of its concept, originally derived from "a piece of burning wood" - in Old English, “byman”, “biernam”, and “brinnan”. Evolves at the end of the fifteenth century in “birman” and “brond” evolved into the current meaning of brand - This concept used, already in Egypt in 2700 BC, to indelibly mark both objects (furniture, ceramics) as well as identification marks on the skin of livestock and slaves, that is what today is a "logo."
From Mesopotamia in the 4th century B.C., urban revolutions have created large-scale economies, using this means of identification for the massive production of products, giving information about the type of goods and their quality.
The brand is the source of new disciplines that study the expectations of the public regarding prices, the product quality, associated with profiles such as reliability, originality, philosophy of the manufacturer, and other even more subtle elements such as the ideals of the company, social commitment and the way to convey these elements through advertising.
1. Brand paradigms
Until 1950, the model of the product market was analogical; the tools that the person required to choose products were the information that he could obtain in the field, the comparative elements that he considered valid for imagining it in his memory, and the knowledge acquired with his own experience and scale of values (culture) - figure 6.1 Trademark paradigms.
Acquiring products in grocery stores when not produced for themselfs (self-consumption) was expected, and everybody could build a future with long-term savings.
After the advent of the digital era, consumption has diversified, multiplied, and become very sophisticated.
Hubs have gained the upper hand in sales of diversified goods by increasing their brand value from €2.8 billion in 2001 to €234.6 billion in 2021, i.e., 83 times their cost. The cognitive sector (Apple, Microsoft, Google, Samsung, and others) also grew in brand value from €249 billion in 2001 to €1,080 billion in 2021, a 4.3-fold increase. This evolution reflects a significant change in cultural matrices and quality of life.
2. Brand values
Brand values or brand equity is an intangible resource of companies that assesses brand awareness and brand image, i.e., the parameter that measures the perception of a company by the client.
Table 6.1 Values of the brands analyzes 100 brands or marks that have a preponderance in the market, divided for categories and value into billion euros and the wealth of the main actors of the market.
Interbrand, a leading global brand consultancy, has been tracking the most notable brands for 40 years, noting changes in the marketplace towards obvious simplification.
These changes are getting faster and faster conditioned by the behavior of customers and companies. Figure 6.2 Value of the 100 best global brands shows how the market has developed according to the brands from 2001, 2019 to 2021.
The brands we classified as cognitive have become predominant reflecting the new lifestyles imposed on the one hand by the lockdown due to the Covid pandemic but on the other by the impoverishment of societies and the need to adapt to the "digital" era (Apple, Microsoft) and internet services (Amazon Netflix) including hubs for the distribution of products quickly to the home.
3. The agri-food sector
The current market is a dynamic reality in continuous transformation.
Economic-commercial exchanges and international investments made a step toward globalization due to social, technological, and cultural interdependencies.Contracting spatial-temporal distances, costs and increasing the delocalization of production, innovation in the informatics techno sector, and the creation of transnational companies - which have their legal headquarters in countries that generally offer low taxation; conglomerate various smaller companies and operate on a global level for the production and sale of its products, guaranteeing themselves high earnings.
Figure 6.3 Multinational Food Companies Turnover surveys ten food companies with their employees and average turnover from 2014 to 2019 in billions.
While in table 6.2 Multinationals in the food sector, the data corresponds to 30 companies - in blue color those operating in the beverage sector - which help us to recognize the main common characteristics:
The tables are in turnover rankings, net operating margin (MON/turnover), and country.
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