TITLE: Traditional 'Zivana': A case study of a Cypriot distillery

TITLE: Traditional ‘Zivana’: A case study of a

Cypriot distillery

AUTHORS

Correspondence: Dr Evangelia K. Blery

Technology Park

NCSR ‘Demokritos’

Patriarxou Grigoriou and Neapoleos

15310, Athens

Tel./Fax: ++30 2106005950

Mobile: ++30 6944955733

E-mail: [email protected],

[email protected]

Mr Loukas Antoniades

Estias 6-8

11526, Athens

Tel.: ++30 2107753958

Mobile: ++30 6944377746, ++30 6993692822

E-mail: [email protected]

1

Dr Evangelia Blery, is currently occupied in marketing of

innovative technologies at NCSR Demokritos and as a

professor of marketing at the Technical Educational

Institute (TEI) of Athens. Dr Blery has an MBA and a PhD in

marketing from the University of Surrey in Guildford, UK and

has ten years of experience in consulting services. Her

areas of specialization include consumer behavior, survey

research methodologies, case studies and data collection and

elaboration.

Mr Loukas Antoniades is a graduate student in Marketing at

TEI of Athens. His areas of specialization include marketing

management and marketing planning of consumer products and

services, consumer behavior and marketing researches.

2

ABSTRACT

Category: Case study

Purpose of this paper

The purpose of this paper is to examine the issues related

to the production of ‘Zivana’, a traditional alcoholic

beverage produced by the Cypriot company LOEL, and the

marketing practices implemented by the company. Thus, the

product, its target market and competition are examined, a

SWOT analysis is performed and the marketing mix is

presented.

Design/methodology/approach

To gain an initial understanding of the marketing practices

employed by the company concerning the production of Zivana

the case study method was employed, since its fundamental

characteristic is the “focus on a particular setting or

event”.

3

Findings

The findings showed that the company offers superior quality

due to its high-end technological equipment and has defeated

competitors, although it has a higher price than competitive

products. The company is aiming at developing new products

based on Zivana and at exporting its products.

Original/value of paper

This paper can add to the present pool of knowledge in the

sector of alcoholic beverages, since it is the only one so

far that has provided an important insight in the production

and marketing of ‘Zivana’ in the Cypriot market. The results

of the study support the findings of other studies mentioned

in the literature and they can be of definite interest and

potential value to managers in this sector.

Keywords: alcoholic beverages, case study, SWOT analysis, marketing mix

4

1. INTRODUCTION

That tradition matters is becoming obvious in the case of

‘Zivana’ an alcoholic drink produced in Cyprus.

Zivania is a traditional Cypriot alcoholic beverage, it is

an aperitif, which is produced by mixing the essence of

grapes with some special local varieties of high quality dry

wine. The remainder of the distilled grapes in the old times

was called ‘Zivana’. The Cypriot company LOEL, which

produces zivania, has given the aperitif the trade name

“Zivana”. It is a strong drink and the content in alcohol is

45%.

The objective of this study is to examine the issues related

to the production of ‘Zivana’, and the marketing practices

implemented by LOEL to promote the aperitif. Thus, the

product, its target market and competition are analysed, a

SWOT analysis is performed and the marketing mix is

presented. The marketing practices implemented by the

company will then be assessed on the basis of those employed

by other companies in the international wine and spirits

market.

5

2. LITERATURE REVIEW

2.1 The Global Spirits Market

The global spirits market reached a value of $167.2 billion

in 2003, having grown with a compound annual growth rate

(CAGR) of 1.9% in the 1999-2003 period. The leading revenue

source in 2003 was the whisky sector, which accounted for

23% of the market’s value (Datamonitor 2005). Europe is

considered a significant market and UK is one of the biggest

spirits markets in Europe. In this market the leading sector

is whiskey, however, sales of white spirits, in particular

vodka, have increased and have become fashionable amongst

younger drinkers aged 18-24. The success of RTD premixes

such as Smirnoff Ice has undoubtedly helped in this growth,

in addition, the rising popularity of themed vodka bars,

which offer a considerable variety of vodka-types and

flavours, made the spirit a fashionable beverage between

young consumers (Band, 2003).

6

Euromonitor consultancy, in its global spirits report, also

identified whiskey as the best-performing spirit in terms of

volume growth. There is an increasing demand for rum and

tequila, whilst vodka and gin brands, continue to inspire

demand, particularly through exclusive bars and clubs. Vodka

and rum are high achievers, driven by fashion trends and the

heightened success of certain brands (Chitakasem, 2004).

In Greece alcoholic drinks show a small growth of just over

1% per year. This is the result of high levels of maturity

in many product categories, the overall recession in the

country and the consequent decrease in Greek consumers'

disposable income. Many households are facing financial

constraints and because consumers have less money to spend

on entertainment, they have become more price sensitive and

they occasionally choose to stay at home, organising more

gatherings and dinners. Whiskey is increasing in popularity

and white spirits and rum are maintaining their popularity,

they gradually improve sales and presented 3% growth in

volume terms in 2004. Ouzo, a Greek traditional alcoholic

7

drink, similar to zivania, recorded a volume sales increase

of 4% in 2004 (Euromonitor International, 2005).

2.2 Competition In The Global Spirits Market

In the global spirits market manufacturers are facing high

levels of maturity and are trying to penetrate less

developed markets to compete more effectively against

cheaper local spirit brands. In markets where Western

spirits are most mature, such as Western Europe and North

America, competition is strong amongst top rival brands.

According to Euromonitor, Asia Pacific, Eastern Europe and

Latin America offer the best opportunities for international

players and major companies are trying to compete with local

specialities such as shochu, local vodka and caçacha

(Chitakasem, 2003).

In Asia Pacific local consumers turn away from local spirits

and towards imported products, which are considered more

prestigious or fashionable. India is also considered as one

of the most promising countries for spirits, achieving the

fastest growth in the world in volume terms (over 8%

8

annually). In addition, in Eastern Europe although

international companies still represent a minor role in the

region compared to local manufacturers, their presence is

expected to expand considerably due to the growing appeal

for international brands. Furthermore, reductions in duties

following the joining of ten countries to the EU, is also

expected to make foreign brands more accessible to the

consumer price-wise (Chitakasem, 2004).

2.3 Marketing Practices In The International Wine And

Spirits Industry

As Spawton (1991) claimed, the wine and spirits industry has

focused more on sales than on marketing, however because it

has become very competitive, marketing should be emphasized.

Its success depends on how marketers establish and implement

global marketing strategies. Sales of imported spirits will

be strongly driven by marketing efforts and by fashion

trends and will strongly depend on the success of global

players in persuading consumers to choose international

brands, rather than local spirits (Chitakasem, 2003).

9

Therefore, marketing actions have a significant impact on

diffusion. The greater the expenditures on advertising,

promotions etc, the greater the impact on speeding up the

rate of diffusion (Gatignon and Robertson, 1985). The money

spent on marketing activities is often targeted to help

increase demand from existing purchasers and not necessarily

new customers, however efforts should be made to attract new

customers or increase demand from existing consumers (Dodd,

1997). It is important for marketers to develop marketing

programs, such as a frequent-buyer reward program, to

attract and retain frequent wine buyers (Goldsmith, 1998).

In addition, offering consumers opportunities to taste and

test wine before purchase can have effective results

(Thompson and Vourvachis, 1995).

Apart from the product itself, its quality and its

packaging, promotion and distribution are the elements in

every products’ marketing mix.

Creative packaging is important because of the severe

competition. For example the Italian spirit grappa is

marketed in exquisitely blown bottles of miscellaneous

10

shapes and the aesthetic features of the product underlines

its reputable quality (TED, 2006).

In addition, as Dodd and Gustafson (1997) mentioned the

label should be given careful consideration and every effort

should be made to produce an attractive and appealing label.

Concerning pricing, since distilling is a specialised and

highly regulated business, the larger part of its product

price to the end consumer is not accounted for by

manufacturing costs, nor by distribution and retail, but by

a government-imposed duty (G&J Greenall, 2005).

According to Dodd (1997), magazines, journal articles, and

wine tasting and word-of-mouth from friends or relatives

influence consumers in their wine selection. Thompson and

Vourvachis (1995) also argued that consumers tend to depend

on friends’ or family members’ opinions in their wine

selections. In addition, Dodd et al, (2005), agreed that

consumers use recommendations from various outside sources.

Furthermore, Orth and Krska (2002) claimed that consumers

are influenced by international or regional exhibition

awards for wine products, because they believe that this is

11

a quality assurance indicator. As Stephens (2003),

mentioned, the increasing household income, the growing

numbers of female drinkers, have led consumers to prefer

high-quality alcoholic beverages.

The distribution of wine products, taking as an example

Texas wine, can be done either by using the intermediary of

wholesalers (export, retail, restaurant wholesalers) or they

can be delivered directly to retailers, restaurateurs and

consumers (Dodd, 1997).

Famous international wine and spirits manufacturers apply

various marketing tactics to promote their products and

increase sales. Kirin, a well known producer of beer, wine

and spirits, implemented a marketing strategy aiming at

achieving targets by reinforcing sales structure and through

marketing capabilities that rise above cost competitiveness.

The company reinforced points of purchase, established

innovative trading environment, collaborated with regional

communities, improved productivity, implemented social

responsibility by promoting environmental protection

measures in marketing divisions and sharing awareness of

12

compliance (laws, regulations, company rules and ethics) and

coexistence with society (Kirin, 2004).

International brands, producing spirits such as Glenfiddich,

Glenlivet and Macallan are continuously expanding at global

level, and penetrate markets where Scotch whisky has little

presence, via high profile tasting sessions and promotional

campaigns to boost brand awareness. The companies Smirnoff

and Bacardi, implemented innovative global marketing

campaigns aiming at clubbers and party-goers and continually

created interest across all markets, thus they achieved

leading shares in their markets. Some brands producing

‘bitters’, have succeeded in repositioning themselves to

attract the younger generation of drinkers, thus relying

less on demand amongst the older population, whose potential

as a consumer segment are becoming increasingly marred by

heightened health conscious attitudes (Chitakasem, 2004).

3. RESEARCH METHODOLOGY

3.1 Case Study Approach

13

The case study method is employed, since its fundamental

characteristic is the “focus on a particular setting or

event” (Stake, 1995).

3.1.1 Sampling Method

Purposeful sampling is the most appropriate for the case

study approach, because ‘information-rich’ cases can be

selected so as to get more information (Patton, 1990). Two

types of purposeful sampling were used in combination:

“snowball sampling” and “maximum variation sampling”

(Minichiello et al., 1990). Snowball sampling relies on

people identifying others to investigate. The maximum

variation sampling was needed because it allows to pick

cases purposefully and illustrate a wide range of variation

on dimensions of interest. Thus, the interviewees came from

different departments of the company. The Brand Manager was

approached and he was asked to suggest five more people in

the company from different departments. In particular, six

in-depth interviews were conducted with the Brand Manager,

the General Manager and the managers and top executives of

14

the departments: Exports, Marketing and Sales and Public

Relations.

3.1.2 Data Collection Methods

Apart from the six in-depth interviews secondary data

concerning general information about the company were

gathered through press articles, the company’s leaflets and

its Web page. In-depth interviews are considered to be the

most valuable data collection method (Lincoln and Guba,

1985). The in-depth interviews were based on a questionnaire

presented in Appendix Ι. The questions were broad, to allow

respondents as much freedom in their answers as possible.

The summation of the responses was based on the content

analysis method (Stake 1995). Qualitative content analysis

was applied and the material from the interviews was divided

into content analytical units. Thus, the results were

carefully put into categories according to the points of

interest of this study and the strong points were presented.

4. THE FINDINGS

15

4.1. General Information

LOEL produces, imports and sells alcoholic and non-alcoholic

beveradges. Since 2001, apart from the classic Zivana, the

company produces zivania of the same quality but with a

higher percentage of alcohol 47% with the name ‘Zivana De

luxe’.

LOEL was established in 1943 and belongs to the Cypriot

Group ‘Laiko’, which owns many companies with diverse

products. LOEL today has over 100 employees and apart from

its central winery in Limassol, the company owns two

regional wineries in Paphos and Limassol. These wineries

elaborate more than 35 million kgr of fresh grapes per year.

Laiko Group’s and LOEL’s mission statement is:

“Laiko Group: Honesty – Integrity – Trust”.

In the past, the existing legislation caused serious

problems to Zivana’s production. In the beginning of the

20th century when Cyprus was a colony of British Empire, a

law was imposed prohibiting the production of zivania,

because there were indications that zivania which was

16

produced by individuals mainly in the villages caused sight

problems and even blindness. LOEL after long lasting

chemical research managed to prove that it was the carbon in

the methanols during the first distillation that caused

vision problems. The big quantities of carbon appeared at

the initial distillation. However, in the past this was

considered as the best part of the aperitif and it was

consumed. Thus, many of them developed vision problems and

some went blind. The company on the basis of these clues

went to court and finally won.

4.2 The Market

According to the existing legislation in most countries,

Zivana’s market as of all alcoholic beverages, consists of

people over 18 years old. This market in Cyprus approaches

450000 local people, however tourists can also be included

and they are about 1,5 millions every year.

In 1997 Zivana’s market share was 100%. However. in 1999 new

competitors entered the market and its share decreased to

80%. In 2005 it arrived at 87% which is about 4,2 millions

17

Euros (the 1/3 of the total annual sales of LOEL). This

corresponds to 715000 liters annually and to 2000 liters

daily. The company is aiming at increasing its market share

to 90% as well as at increasing its sales and profits.

4.3 Competition

18

There are eight companies in the market with authorisation

to bottle zivania, however only four of them have the

authorisation to produce the aperitif. All competitors

together reach a market share of 20%. One of the four

competitors is the ‘Winery of Kykkos Monastery’, which

belongs to the Church and religious people prefer it.

Another is ‘KEO Group’, a very large group, which is

exporting many products and has a very well organised

distribution system. Finally it is ‘ETKO Winery’, which is

the older group producing wine in Cyprus and engenders trust

to a certain number of customers. In addition, there are

some producers of zivania in the villages, however, without

authorisation from the state, but they have very small

market shares. Furthermore, there are the indirect

competitors such as wine, whisky and vodka producers. The

most serious of them are the whisky producers and especially

Scotch whisky.

19

4.4 SWOT Α nalysis

SWOT analysis is a tool for auditing an organization and its

environment that helps marketers to focus on key issues.

SWOT stands for strengths, weaknesses, opportunities, and

threats and requires listing and analysing these four issues

(Doyle 1994). Thus, a SWOT analysis is performed to identify

the company’s strengths and weaknesses as well as its

business opportunities and possible threats:

Strengths

Τhe most important strength of LOEL is the superior quality

of Zivana and because of this the company has defeated

competitors.

In addition, the company has superior technological

equipment. It is the only company in Cyprus that has

equipment for measuring carbon in the methanol during the

production and in this way it ensures the best quality

specifications for the product and shows high social

responsibility by protecting consumers health.

Furthermore, LOEL provides education to its employees, about

every fix months, on technical, administrative and

20

management issues. Education is also provided to the

grangers who take care of the vineyards.

The name of the drink ‘Zivana’ which was selected because in

the past people used often in their daily life the word

‘zivana’ and as a result today customers do not ask to buy

‘zivania’ but ‘Zivana’.

Finally, Zivana is a traditional product, it is embraced by

customers and has an important role in their daily life and

diet.

Weaknesses

The distribution system of the company needs to be extended.

The company, for the distribution of its products, uses the

subsidiary of the Laiko Group, ‘Laiko Distributors’, which

has 7000 points of sale and it is planning an extension to

reach 7200 points.

In addition, LOEL does not have direct contact with its

customers and does not apply personal selling methods,

because it is ‘Laiko Distributors’ which deals with the

customers and undertakes after-sales service. LOEL contacts

its customers only in very specific situations. Though, the

21

company has a direct co-operation with ‘Laiko Distributors’

and discusses the problems.

Furthermore, competitive products have slightly lower

prices, about 0,50 Euros per liter, and offer discounts

occasionally.

Opportunities

An opportunity for the company is to export Zivana, however

this is not easy because of the taxes imposed to the

alcoholic drinks with high content of carbonic methanol, as

Zivana, after Cyprus was accepted as a member state in the

European Union, on 1st May 2004. These taxes increased the

product’s price almost by 50%.

Another opportunity is the youth market, which has the

tendency to consume zivania, especially in periods of

feasts. LOEL is planning to introduce a new product in the

market named ‘Zivana Hot-Ice’. This product belongs to the

category of Ready To Drink (RTD) beverages, which are very

popular to young consumers. The product will be based on

zivania, will contain 5% alcohol and will be available in

two flavours lemon and orange, with the names ‘Zivana Hot-

22

Ice Lemon’ and ‘Zivana Hot-Ice Orange’ accordingly. It will

be an original drink, which has never been produced by any

other company in Cyprus. The name was chosen to create

antithesis, since zivania heats human body, but this drink

with the ice will also give a cooling sensation.

23

In addition, LOEL’s participation in the Laiko Group gives

cross-selling opportunities from which Zivana has profits.

Threats

The taxes imposed to Zivana because of its high content in

carbonic methanol, together with the simultaneous reduction

of prices of European alcoholic beverages, due to the

abolishment of taxation in the member states of EU, resulted

in an increased demand in Scotch whisky and vodka because of

the reduction of their prices. This combined with the

increase in Zivana’s price (about 50%) decreased the

aperitif’s sales. The company is making efforts to include

zivania in the traditional Cypriot drinks so that it will

not pay taxes and the price will decrease. These efforts are

supported by the state and there have many possibilities to

succeed.

In Figure 1, SWOT analysis is presented.

24

Figure 1: SWOT analysis

S

StrengthsSuperior product qualitySuperior technological

equipmentEducation to employeesPopular product nameProduct embraced by

consumers

W

WeaknessesExtension of the

distribution systemLack of direct contact

with consumersHigher price

OpportunitiesExportsApproach the youth marketCross-selling

O

ThreatsHigh taxes to beverages

with high content incarbon methanol asZivana

Indirect competitorssuch as Scotch Whiskyand Vodka withincreased demand due tolower prices

T

4.5 The Μ arketing Mix

25

The marketing mix is also known as the 'four Ps'. The

marketing mix elements are product, price, place and

promotion. A fifth ‘p’ was also added to the marketing mix

elements, people (Kotler 1994).

Zivana has a superior quality from all the other competitive

products, because of the advanced technological equipment

used for its production. Its packaging is simple because it

gives an emphasis on quality. However, its competitors offer

more attractive packaging.

Zivana’s pricing is based on the cost of production per

litre plus the company’s profit and the taxes that the

company must pay. The final price of Zivana is about 6 Euros

per Litre. The company maintains a fixed pricing policy and

does not make discounts but only certain offers with

advertising material.

For the distribution of Zivana, as it has already been

mentioned the company uses ‘Laiko Distributors’. LOEL

‘sells’ its products to Laiko Distributors, which undertakes

storage, distribution and sales through its own channel.

26

Efforts are made to expand the distribution channel because

the market is constantly growing.

The company has a considerable budget for the promotion of

Zivana and intends to increase it more in 2006. The company

spends 50% of its total promotional budget for advertising.

From these 40% are given for television advertising, 20% for

radio advertising, and 20% for outdoor advertisements,

magazines and newspapers. Television advertisements mainly

take place before Easter and Christmas holidays when the

consumption of zivania is high. The frequency of radio

advertisements is much higher, because they cost less and

they take place almost all year but mostly in summer.

Outdoor advertisements take place all year but more

frequently during holidays and summer when people travel.

Advertisements in magazines and newspapers are more frequent

and they take place all year but mostly during holidays. The

company spends equal budget for radio, outdoor and magazine

advertisements. Advertisement’s design is assigned to

specialized companies, however the company Laiko Printco, a

27

member of Laiko Group, undertakes the printing of the

material.

Furthermore, in order to increase sales, the company makes

special offers such as glassy ‘short drinks’ together with

Zivana, particularly before and after holidays when sales

decrease. In addition, LOEL offers gifts such as tables’

numbers for restaurants, ashtrays and ‘sou-verres’ with the

sign ‘Zivana LOEL’.

LOEL spends the other 50% of its promotional budget for

sponsoring various events, such as ‘Pilotta’, a game with

cards, which mainly young people play. In this way the

aperitif is becoming popular among young consumers. LOEL

also sponsors athletic events such as Beach Volley and Beach

Soccer tournaments, particularly in summer, to promote

‘Zivana Hot-Ice’, which is a summer product together with

the classic ‘Zivana’. Furthermore, the company participates

in the annual ‘Wine Festival’ and in the annual ‘Zivania’s

Symposium’, which is organised the last five years,

promoting its wines and Zivana.

28

LOEL gives special emphasis to its human resources and

considers them very important for its success. Thus it

offers them continuous training and incentives to keep them

satisfied and ensure their productivity so that the

company’s objectives will be archived.

5. DISCUSSION

Zivana is a traditional aperitif embraced by consumers,

which exceeds competition, because of its superior quality,

despite its higher price. Quality is the most important

strength of the company and it is a result of the superior

technological equipment used for the production of Zivana.

Today consumers show a preference to high-quality alcoholic

beverages because of the increasing household income, as

mentioned by Stephens (2003) in the literature review.

Though, the company could make offers more often as well as

price reductions, as its competitors do and offer more

gifts.

29

In addition, the selection of the name ‘Zivana’ was

successful since customers do not ask to buy ‘zivania’ but

‘Zivana’.

The packaging of Zivana is simple, however its competitors

offer more attractive packaging. As seen in the literature

review, in the case of the Italian grappa, creative

packaging has an important role in fighting competition

(TED, 2006) and especially if Zivana is exported packaging

will be much more important. In addition, as Dodd and

Gustafson (1997) mentioned, an attractive and appealing

label is also essential.

A disadvantage is that since LOEL does not distribute

Zivana, it cannot have direct contact with its customers.

Thus, the company cannot collect information about them,

identify their needs, serve them better and reward frequent

buyers to keep them loyal.

The two RTD products, ‘Zivana Hot-Ice Lemon’ and ‘Zivana

Hot-Ice Orange’ seem promising since as Band (2003)

mentioned, RTD premixes such as Smirnoff Ice and themed

30

vodka bars, raised the spirits popularity between young

consumers and have already shown success in other markets.

Promotion is very important for Zivana, and as mentioned by

Dodd (1997), magazines and journal articles influence

consumers’ selection. The product has the advantage that it

is traditional and popular, thus, there is positive word of

mouth and as Dodd et al. (2005) claimed, recommendations

influence consumers’ choices. In addition, by sponsoring

youth events and participating in the annual ‘Wine Festival’

and in the annual ‘Zivania’s Symposium’, the company

promotes Zivana and offers consumers opportunities to taste

the product and as Thompson and Vourvachis (1995) argued,

this can have effective results. Furthermore, the company

could identify other customer groups apart from youth and

promote the product by sponsoring events suitable to these

groups. However, older population can not be the target of

such a strong drink as Zivana, because as Chitakasem,

(2004), there are health conscious attitudes.

Based on its superior quality Zivana could participate in

international or regional exhibitions to gain awards. As

31

Orth and Krska (2002) mentioned, consumers are influenced by

awards because they believe that this is a quality assurance

indicator. This will be very important especially for the

exports of the product.

However, exporting Zivana, is a difficult task. The

products’ price is high and the company must strengthen its

efforts to include zivania in the traditional Cypriot drinks

so that it will not pay tax and the price will decrease. To

penetrate foreign markets strong promotional campaigns will

be needed, to boost brand awareness and compete with

fashionable international spirits, which have respectable

brand images and an international reputation as quality

products.

6. THE CONTRIBUTION OF THIS STUDY

This study contributes to the alcoholic beverages sector

since it is the only one so far that has provided an

important insight in the production and marketing of

‘Zivana’ and has gathered knowledge concerning the Cypriot

market where very limited research has taken place in this

32

sector. The results of the study support the findings of

other studies mentioned in the literature and they can be of

definite interest and potential value to managers in this

sector. Academically, further research based on these

findings can add to the present pool of knowledge by further

examining the marketing practices employed by other

distilleries in Cyprus and worldwide.

33

REFERENCES

Band J. (2003), Datamonitor's report, The European Spirits

Market to 2007,

http://www.foodanddrinkeurope.com/news/ng.asp?id=17424-uk-

spirits-scotch

Chitakasem P. (2003) Euromonitor highlights new

opportunities for growth in the global spirits market, 22

Oct 2003, 2006, http://www.euromonitor.com/articles.aspx?

folder=Euromonitor_highlights_new_opportunities_for_growth_i

n_the_global_spirits_market&industryfolder=Articles,

[accessed 10 March 2006].

Chitakasem P. (2004), Euromonitor assesses opportunities for

international spirits players, 31 Aug 2004,

http://www.euromonitor.com/articles.aspx?folder=

Euromonitor_assesses_opportunities_forinternational_spirits_

players&industryfolder=Articles, [accessed 10 March 2006].

34

Cresswell, J.W. (1998) ‘Qualitative Inquiry and Research

Design: Choosing among five traditions’, CA Sage, Newbury

Park.

Datamonitor (2005), Spirits: Global Industry Guide, February

2005, http://www.researchandmarkets.com/reportinfo.asp?

report_id=246304, [accessed 10 March 2006].

Dodd (1997), Factors that influence the adoption and

diffusion of new wine products, Hospitality research

journal, Vol 22, No 3, pp 123-136.

Dodd T.H., Laverie D.A, Wilcox J.F, & Duhan D.F (2005),

Differential effected of experience, subjective knowledge,

and objective knowledge on sources of information used in

consumer wine purchasing, journal of hospitality & tourism

research, Vol 29, No 1, pp 3-19.

Dodd T., Gustafson W. (1997), Product, environmental and

service attributes that influence consumer attitudes and

35

purchases at wineries, Journal of Food Products Marketing

Vol4, No3, pp 41-59.

Doyle P. (1994) Marketing Management & Strategy, New Jersey:

Prentice Hall.

Euromonitor International (2005), Alcoholic Drinks in

Greece, June 2005,

http://www.euromonitor.com/reportsummary.aspx?

folder=Alcoholic_Drinks_in_Greece&industryfolder=Alcoholic_d

rinks, [accessed 10 March 2006].

G&J Greenall (2005), Case study,

http://www.ssi-world.com/gencontent/casestudies/greenall.htm

, [accessed 10 March 2006].

Gatignon, H. and Robertson T.S. (1985) A prepositional

inventory for new diffusion research, Journal of consumer

research, Vol 11, pp 849-867.

36

Goldsmith, R. E. (1998). Some characteristics of wine

innovators. International Journal of Wine Marketing, Vol 10,

No1, pp 5-12.

Kirin (2004), Domestic Alcohol Beverage Business Strategies,

January 2004,

http://www.kirin.co.jp/english/ir/04strategies.pdf,

[accessed 08 March 2006].

Kotler, P. (1994). Marketing Management - Analysis,

Planning, Implementation and Control, New Jersey: Prentice

Hall.

Lincoln, Y.S. and Guba, E.G. (1985) ‘Naturalistic Inquiry’,

CA Sage, Newbury Park.

Mason, J. (1996) ‘Qualitative Researching’, CA Sage, London.

Minichiello V., Aroni, R., Timewell, E. and Alexander, L.

(1990) In-depth Interviewing: Researching People, Longman

Creshire, Melbourne.

37

Orth, U. and Krska, P. (2002). Quality signals in wine

marketing: The role of exhibition awards. International Food

and Agribusiness Management Review, Vol 4, pp 385-397.

Patton M.Q. (1990) ‘Qualitative Evaluation and Research

Methods’, 2nd e.d.s., CA Sage, Newbury Park.

Spawton (1991) Marketing planning for wine, European journal

of marketing, Vol 25 No 4, pp 6-48.

Stake, R. (1995), The art of case study research, CA Sage,

Newbury Park

Stephens, B. (2003), Korean wine market is growing, Wines &

Vines, Vol 84, No 1, pp 30-33.

TED - Trade and Environment database case studies (2006),

Who owns grappa? http://www.american.edu/TED/grappa.htm,

[accessed 08 March 2006].

38

Thompson, K. E., and Vourvachis, A. (1995). Social and

attitudinal influences on the intention to drink wine.

International Journal of Wine Marketing, Vol 7, No2, pp 35-

45.

39

APPENDIX 1

QUESTIONNAIRE

Description of the company 1. Which is the legal form of the company?

2. Who are the householders of “LOEL”?

3. How many employees does the company have?

4. Which is the turnover of the company the last fiveyears? (sales – profits – market shares)

5. Which is the vision and the mission of the company?

Description of the product 6. How did the idea of producing the traditional

Cypriot zivania named “Zivana” arise?

7. Which are the natural characteristics of “Zivana”?

8. Are there any unique or innovative characteristicsof the product? (patents or ISO / HACCP )

Description of the Cypriot market of zivania9. Which is the target-market of “Zivana”?

10. Which are the characteristics of the target-market?

11. Which is the market share of “Zivana”?

12. In what way do you expect that the product willsatisfy customers’ needs?

40

13. Do you believe that in the future changes willtake place in the market size or the market volume?

Competition Analysis14. Who are the main competitors of “Zivana”?

15. Which is the history of the competitors on thebasis of their market shares and their sales?

16. Do you known which are the competitors’ strengthsant weaknesses, as well as any important elements oftheir advertising and promotion strategies?

17. In what ways do you consider that the product issuperior from the competitive products?

The Company’s environment18. Does environmental pollution influences the

operation of “LOEL” or the production of “Zivana”?

19. Are there any laws or rules, European or Cypriot,which influence the company’s operation or theproduct’s production?

20. Is the company flexible and able to adapt easilyto market changes and the consumers’ attitudes?

21. Does the continuous technological developmentinfluences the operation of "LOEL" or the productionof "Zivana"?

SOWT Analysis22. Which are the strengths and which are the

advantages of the product against the competitiveproducts?

23. Which are the weaknesses that characterize theproduct?

41

24. Which are the opportunities that appear throughthe product?

25. Does the company face any enterprising dangers forits product?

Objectives and Strategy26. Which are the objectives of the company regarding

market share, sales and profits?

27. Which strategy will the company follow in order toachieve these objectives?

28. Do you believe that competitors will react and inwhat way?

The Marketing Mix29. How is the product described - are there any

changes that can be done to improve the product?

30. What about the after-sales service of the product?

31. How will the product be priced so as to becompetitive in the market and which pricing methodis followed?

32. Which distribution channels does the company use?

33. Are there possibilities of improvement of thedistribution system?

34. Which amount of money does the company offer forthe products promotion?

35. What are the promotional activities of the companyto launch its product in the market?

42

36. Who undertakes the production of advertising andpromotional material and what media are used foradvertising?

37. How does the company assesses the effectiveness ofadvertising and of the promotional plan?

38. Does the company trains its employees and givesthem incentives?

Personal Information39. Name of the respondent:

40. Position in the company:

41. Duration of employment in the company

:

43