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Yet another argument in favour of the expansion towards Luxembourg is the fact that the country is most specialized on producing high quality white wines. This means that Vinos Andinos has an increased chance of selling their red and rose wines to a population that might desire a change from Luxemburg's white wines.
Switzerland (fifth by GDP and sixth by wine consumption) produces low amounts of wine internally, but has an increased consumption and demand as well as high salaries that allow consumers to afford the prices of the Chilean wines. Therefore, the Western Europe country should be one of the three destinations towards which Vinos Andinos ought to focus their attention.
The entrance onto the Swiss wine market might however pose some difficulties. Even though statistics do not mention Switzerland as a major wine producer, this is not entirely true. The inconsistency is due to the fact that most Swiss families possess vineyards and they produce the wine themselves. Making wine is a long Swiss tradition sitting at the basis of the country's culture. "Being invited in a carnotzet (underground cellar where men meet) to taste your host's wine and eat some dried meat and cheese is a great honour and should not be refused."
The quantities of wine produced by individuals and families are not always revealed in statistics. Therefore, given this element, the Chilean wines might not meet with the expected demand. However, this should not scare the producer, moreover since a high quality wine is at all times welcome by a Swiss and since the contemporaneous rush is forcing families to redirect their attention towards more financial rewarding occupations, in the detriment of agriculture.
Austria (sixth by GDP per capita, tenth by wine consumption and tenth by wine production on the old continent) is a suitable European destination as it registers high GDP, revealing price affordability; consumes increased amounts of wine per year and does not cover the demand from internal production.
Australia is the world's thirteenth largest consumer of wines and the force that drives increased consumption is high quality. Given the high quality of the Chilean wines, the Vinos Andinos are likely to be welcome on the country's market. The country's citizens generally prefer white wines, but there is also an increasing demand for red and rose wines. Furthermore, another opportunity is the abolition of the luxury taxes, leading to an increased demand for sparkling and fortified wines.
Chile is the world's eleventh wine producer and the country's products are met with international recognition and a reputation of high quality. Vinos Andinos is a small vineyard that produces four types of red wines and three types of white whines. Most of this production is sold to local off-license outlets and the remaining is exported to Bolivia, Peru, Columbia and Japan. In order to expand their business, the management at Vinos Andinos has decided to launch four more products, consisting of rose wines, wine boxes, fortified wines and sparkling wines. Both existent and new products will be launched on the European continent, beginning with three countries.
Luxembourg high incomes that reveal price affordability increased levels of wine consumption low levels of internal production
Switzerland high GPD, resulting in price affordability high consumption and demand for wines limited internal production
Austria increased incomes leading to price affordability increased demand and wine consumption
Two things should be considered when launching the Chilean wines on the European market. First, the producer should widen their distribution and aside from off-licence outlets, they should also sell to licensed bars. This means that customers could easily familiarize with the products as they could purchase on glass of wine while at the bar. Given that they like it, customers would then purchase larger quantities from off-license facilities. This would test the success of the Chilean wines and would generate minimal risks and low costs.
Secondly, Vinos Andinos should launch their products as limited edition wines. Generally, limited edition products register a better success with customers as clients desire to try the new and shortly available product. Given the outcome of the limited edition wines and the feedback received from European partners, the Chilean wine producer would decide the next steps.
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