“We need to listen to what each market is asking for so that we can respond and develop a product that meets those expectations.”

 

Originally trained in Economics, his professional career led him into marketing across various sectors in France and other European countries, eventually specializing in the wine industry.

After returning to Spain, he focused on marketing and sales in export markets for several companies within the sector, gaining first-hand knowledge of different business models, customer profiles, and market needs.

Óscar Urrutia combines his role as Export Manager at Bodegas Olarra with his work as a lecturer in the Master’s Degree in Innovative Oenology, where he teaches the course “Commercial Management and Advanced Marketing and Their Integration with Consumer Preferences.”

 

How important has marketing become in the wine industry?

Marketing has become extremely important, and its relevance continues to grow because global wine markets have done nothing but become increasingly saturated over the last fifty years. As a result, it is no longer sufficient to rely solely on the most basic form of marketing, namely the transmission of information.

Today, it is essential to establish a dialogue between wine producers and the market, rather than maintaining the one-way communication approach that was common in the past.

We must create a dialogue that is not only about conveying information but also about receiving feedback from the market regarding its expectations. These expectations concern every aspect of the product—not only the wine itself, but also everything surrounding it: its packaging, labeling, points of sale, and much more.

 

What are international markets looking for in wine today?

To answer that, we need to look at the different market segments and at each market individually. The level of variation is enormous, as many markets contain several distinct segments within them.

Some segments are deeply immersed in wine consumption and wine culture. In those cases, the task is primarily educational and informative.

The contrast lies in lower-priced and lower-quality segments, where we need to carefully listen to what each market is asking for so that we can respond and develop a product that meets those expectations.

 

Which marketing strategies are currently working in the wine sector?

Naturally, marketing strategies vary from country to country. However, in my view, they can be grouped more effectively according to quality and/or price segments rather than by geographical market.

Given the current level of saturation in most markets, it is clear that lower-quality and lower-price segments require strategies focused on offering attractive deals and competitive pricing, along with more traditional promotional activities.

At the opposite end of the spectrum, in the premium and high-priced wine segment, more traditional marketing strategies continue to perform very well. Communication and what the French call “de bouche à oreille”—word of mouth—remain highly effective. In other words, consumers share their experiences of a particular wine, influenced by the characteristics of its production process, the grape varieties used, and their unique qualities.

The middle segments tend to reflect a balanced combination of these two approaches.

 

How do you think the wine industry will change in the coming years?

In my opinion, the market is experiencing a situation of saturation. Thirty years ago, there were good wines, average wines, and poor wines. Today, there are only good wines and better wines. Poor-quality wines have virtually disappeared from the market, and this is true across all corners of the world.

At present, there is an intense struggle to attract new wine consumers in every market where wine is sold. The success of this effort will be relative, however, because it raises questions about the extent to which what is being sold as wine can still be considered wine in the traditional sense.

Certain product adaptations driven by market saturation are beginning to challenge the more traditional definition of quality wine. As a result, a fierce debate is taking place, one that will influence most quality segments, although it will have less impact on the highest-end and most prestigious wines, such as château wines.

This situation will lead to a new form of product engineering that may even affect the very nature of wine itself.

At the same time, the lower half of the quality and price segments has undergone tremendous change due to new technologies, social media, and other digital developments. By contrast, the upper end of the quality spectrum is unlikely to experience major changes, as it remains deeply rooted in tradition in the purest sense of the word.

For this reason, I believe the industry is heading toward a transformation. However, based on what I can observe today, that transformation will mainly affect wines in the lower and mid-range quality categories.

 

 

Tags: master, oenology