CREATION OF LOCAL WINES AS A METHOD OF FORMATION OF COMPETITIVE ADVANTAGES OF THE WINERY

Golubyonkova O. Ph.D., Associate Professor Department of Marketing, Business and Trade Odessa National Academy of Food Technologies Kanatna str., 112, Odesa, Ukraine, 65039 E-mail: lena.golubenkova@gmail.com Braiko А. Undergraduate Department of Tourism and Leisure Erasmus Mundus on Wine Tourism Innovation University of Rovira I Virgili C/ Marcel·lí Domingo, 1, Tarragona, Spain, 43007 E-mail: braikoanastasiia@gmail.com

The article proves the practicability of producing wine from local grapes for Ukrainian wineries. The substantiation is based on the construction of five levels of goods and consumer values. The fifth level is a wine that has a unique style: its character, temperament, expresses the peculiarities of the area where it is produced. It has directed therapeutic properties due to the maximum content of nutrients from certain varieties of grapes and innovative technology. A business model of wine production in the chateau format has been proposed. The mission, goals and strategies for such production have been developed. The mission is the production of unique wines and the revival of winemaking traditions and wine consumption culture in Ukraine. Target audience of consumers and competitive advantages have been determined. It is advisable to determine a competitive strategy for focusing on the manufacture of local wines. The marketing strategy of growth has been proposed -the strategy of developing a new product. Namely -the organization of a full production cycle for the manufacture of dry white table wines from the grapes of the new breeding generation by author's blend schemes. Market research has shown that production of local wines may become a competitive advantage of Ukrainian winemakers for a rather long period of time. The competitive advantages of "Chateau", which produce local wines, allow us to work effectively on the national and international markets.
Keywords: Ukrainian enterprises, consumer value, local wines, business model of chateau, competitive.
This work is licensed under a Creative Commons Attribution 4.0 International License http://creativecommons.org/licenses/by/4.0/ Statement of the problem and its connection with important scientific and practical tasks. According to the annual report of the International Organization of Vine and Wine, the current stage of development of world wine production shows orientation towards new winemaking markets and shows the steady consumer interest in local wines made from local (indigenous) grape varieties. Ukraine has a great potential for production, which will reflect a unique style of wine. However, the Ukrainian ampelographic heritage is represented exclusively by introduced varieties (transferred from another area to this territory): historically the wine regions were parts of different countries, inhabited by different nations with a diametrically opposite attitude to the wine culture, which explains the deficit of indigenous technical grape varieties in these territories.
The current state and prospects for the development of the wine-growing and wine-making industry in Ukraine allow and suggest the improvement of the grape range by means of the use of varieties of a new breeding generation and clones of classical varieties.
In the conditions of European integration and the absence of significant competitive advantages over European products, it is necessary to create a new competitive product that would reflect the nature and features of the Ukrainian vine and territory and could become a "Ukrainian brand". Consequently, the creation of terroir wines or local wines (wines of the specific territory) made of grape varieties which are the most suitable for the Ukrainian region has been suggested in this study. The need for a systematic study of these problems, their topicality and practical significance determined the choice of the topic of the research.
The analysis of the latest publications on the problem. The various business models of winemaking business have been examined in the studies of many scholars. The advantages of investing in winemaking businesses of different sizes in France, Italy, the USA and Romania have been considered in the studies [1][2][3]. The models of winery management in Chile have been ana-

ISSN 2312-847X
ЕКОНОМІКА ХАРЧОВОЇ ПРОМИСЛОВОСТІ Том 10, Випуск 3/2018 lyzed in the study [4]. The analysis of efficiency of wine production within the framework of several models by the example of Italy has been carried out in the study [5].
The special attention to the study of marketing strategies for small winemakers and producers of mass wine has been paid in the scientific work [6]. The methodology of constructing a business model that underlies our study has been presented in the work [7]. Forming of the aims of the research. The aim of research is the development of an effective business model of wine production using the principles of marketing. To solve the tasks, the following methods are used: analysis and synthesis, logical generalization, analogies, competitive comparison.
Giving an account of the main results and their substantiation. According to F. Kotler's concept, the product is considered as a five-level system that creates a hierarchy of consumer value, wherein each subsequent level raises the consumer value of the product. Five levels of the product: 1) key value; 2) main product; 3) expected product; 4) improved product; 5) potential product.
In order to determine the ways of formation of competitive advantages the five levels for the product category "wine" are examined (Table 1). Table 1 Hierarchy of consumer value of still wines*

Level
Characteristics Wine is a pleasure, which gives the feeling of joy of life. Wine is communication; drinking wine requires the ability to talk. Dry wine in moderate doses is a daily food product. It has a beneficial effect on health and beauty. It consists of a large number of useful elements (easily digestible sugars, essential oils, organic acids, esters, tannins).
2 nd level -main product Basic characteristics: transparency, color, taste, bouquet and type of wine, shelf-life, alcohol and sugar content.

rd level -expected product
The wine has a flavor, bouquet and aroma traditional for its type; a bottle (with relatively thin walls, usually green, transparent or brown, with an elongated bottom, 0.7 or 0.75 l) is closed mainly by a corkscrew; the label contains certain information (TM, producer, term of storage -for young wines, trademark of the producer).

th -improved product
Additional characteristics: indication of the harvest year (vintage, millesime); author's blend; terroir wines; local wines. Wine produced according to the certain laws -wine with the protected designation of origin (in France -AOC), kosher wine. Wine which has certain properties due to the special conditions of growing grapes and production technology (bio wine, organic wine, ecological wine). Wine, the taste of which harmonizes with the taste of certain dishes. Original bottle shape, which has an additional functional value. The bottle is made of lightweight glass.

th -potential product
The wine will have a unique style: its character, temperament, expresses the peculiarities of the territory where it is produced. The wine will have medical properties due to the maximum content of nutrients from certain grape varieties by innovative technology. * Сompleted by authors The culture of wine consumption implies creation of a friendly atmosphere for easy-going conversation. The tradition of family lunch or family dinner accompanied by wine is still preserved in countries with high level of wine consumption.
The benefits of wine for health have been examined by ancient doctors and modern scientists continue to argue about this fact. Moderate use of wine improves appetite, strengthens the whole body, improves sleep, dilates the blood vessels, slows the aging process, enhances the body with antioxidants and vitamins, stabilizes the acidity of the stomach, prevents oncological diseases and is considered to be an excellent anti-stress medica-tion.
Nowadays as a rule the competition is held at the fourth level in the developed countries -at the level of search for additional benefits, and in less developed countries -at the level of expected product. It should be remembered that the additional benefits will become soon expected. It means that in order to distinguish themselves the competitors will have to look for even more new benefits and characteristics that will be able to become their competitive advantage for a certain period of time.Consequently, the production of local wines may become a competitive advantage of Ukrainian winemakers for a rather long period of time.

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ЕКОНОМІКА ХАРЧОВОЇ ПРОМИСЛОВОСТІ Том 10, Випуск 3/2018 Nowadays in the conditions of fairly aggressive global competition each country is re-evaluating its grape variety resources in a new way. In this regard in most cases the preference is given to its own aboriginal (indigenous) and breeding varieties. Despite the fact that winemaking in the territory of modern Ukraine appeared in the IV century BC on the southern coast of the Crimea, historically it happened that wine-growing regions were part of different countries, were inhabited by different nations with the opposite attitude to the wine culture. This explains the shortage of aboriginal grape varieties in these territories, including in the Odessa region, where the only autochthonous variety is Telty Kuruk, which is recognized as the pride of the shabo terroir whereas the ordinary dry wine of the PDO (Protected designation of origin) "Telti-Kuruk Shabo "(LLC "PTC Shabo", Odessa) received the Grand Prix at the international tasting competition "Yalta. Golden Griffin 2013" in July 2013 [13].
Telti-Kuruk is a unique grape variety, firstly planted in Shabo during the Turkish rule. In the translation from the Turkish the name of grape variety means "fox tail". The grape variety received its unusual name through a specific shape of a cluster that resembles a fox tail. Beside the company "Shabo", the wine from the Telty Kuruk variety is released by another company "Beykush Winery". There is the wine called "Beykush Tellti-Kuruk 2012" in the range of company's products. Produced from the local grape variety these wines have the full right to be called local wines.
The correct wine making implies the cultivation of the right grape. Local wine can be made exclusively from the grapes which belong to the winery. And nowadays it is possible to name a number of Ukrainian wineries where the author's wines and wines that can be attributed to local wines are produced. Among such wines there are TM Kolonist Ivan Plachkov (Odessa region), LLC "Industrial and trading company Shabo", TM "Winemaking farm Prince P.N. Trubetskoy" (Kherson region), TM "Wines of the Guliyev" Robert Guliyev (Odessa region), TM "Beykush Winery". Table 2 presents consolidated and systematic information on key indicators of Ukrainian enterprises. The outline business model of Alexander Osterwalder [7] is used to form the basic principles of the creation, development and successful operation of the organization. The business model template consists of 9 blocks (Fig.1) based on value offers for consumer segmentsthat is what we call the competitive advantages of the enterprise. Table 3 provides a developed business model of chateau that will focus on the production of local wines.
The mission is the production of unique wines and the revival of winemaking traditions and wine consumption culture in Ukraine.
The marketing goal is the production and sale of dry white table wines in the amount of 10,000 cases or 120,000 bottles of 0.75 liters per year.
The basic strategy of development: the strategy of product differentiation -ensuring a high and stable quality of wine as a result of the organization of the company of "chateau" type and the use of a unique coupage of stably productive, high-quality and high-tech grape varieties adapted for cultivation in the Odessa region.
Competitive strategy: focusing on the production of local wines.
Marketing strategy of growth: the strategy of product development -the organization of a full cycle of the dry white table wine production from the grapes of the new breeding generation by the author's coupage scheme.

Fig. 1. Business model template of A. Osterwalder [7]
Table 3 Business model of chateau according to the template of A. Osterwalder* Key partners -Association "Tourism of Odessa" -Bureau "Rest in Odessa"; -Hotels "Nemo", "Bristol" and etc.
Key activities -viticulture -wine production -wine sales

Value proposition
Production of unique local wines from the varieties of clonal selection for the revival of the culture of wine consumption in Ukraine and the creation of a special atmosphere of service for potential consumers.
Customer relationships -Creating a base of loyal clients (when buying more than 3 bottles) -Invitations of clients to take part in the activity of the chateau (harvesting) and to celebrate its significant dates (the holiday of young wine, tasting the wines of the new harvest) -Providing a free invitation to the exhibition in case of purchasing 2 bottles of wine -Open Door Days for the New Year

Customers
Niche market: -foreign and domestic tourists; -citizens of Odessa with the income above average Key resources -staff; -raw material; -equipment Channels Channels of zero level: -official store -directly from chateau -exhibitions, fairs, wine and food festivals Costs -grape cultivation and harvest; -packaging; -current production costs; -tastings, participation in exhibitions, festivals. Target segments: 1) foreign tourists visiting Odessa with the purpose of cultural and / or wine tourism; 2) citizens of Ukraine who come for summer vacation to the Odessa region; 3) citizens of Odessa with the level of income "average", "medium +", "high".

Revenue
Competitive advantages of "chateau", which produces local wines: 1. Product quality control, which becomes possible due to the small volumes of production and own vineyards. The enterprise becomes more transparent and open to consumers; 2. New service: pre-sale acquaintance of the consumer with wine, its variety and taste diversity due to the explanations of wine consultant and wine tastings; 3. It allows consumers to feel like a winegrower and to become involved in the process of wine making: participation in harvesting, creation of blend wine, celebration and tasting of young wine, etc.; 4. Exclusive high quality wine, which the consumer can try and buy only in official stores or directly at the enterprise. They are created for selected wine connoisseurs; 5. It satisfies the preferences of foreign and Ukrainian wine tourists, thereby strengthening the competitive position of Ukrainian wine.
Conclusions and prospects of the further investigations. The market is moving towards diversity as it is the main factor that determines the scope of consumer preferences in types and styles of wine. There are significant changes in terms of the supply on the wine mar-ket. The modern wine consumer has become more democratic: the consumer understands now the priority of quality over the quantity. If before many consumers favored cheap wines (jug wines), the increase in plantings of precious technical grape varieties contributed to the growth of supply and demand in the international wine market of monovarietal (wines, made from one grape variety). In addition, the consumer "tired" of international varietal wines gives the preference to the indigenous varieties of different territories. According to the majority of experts this very important trend gives the possibility to the development of the original and exclusive winemaking of many countries and regions.
Thus, geographically and historically Ukrainian wines cannot be attributed to the wines of the New World, however, the application of new technologies, innovations, modern trends allow us to choose a strategy for positioning a new wave (new generation) of the wines of the Old World.
Market research has shown that production of local wines may become a competitive advantage of Ukrainian winemakers for a rather long period of time.
The developed effective business model of winemaking production, based on the principles of marketing contains a mission, marketing goals, a common (basic) development strategy, a competitive strategy, a marketing growth strategy, a target segment. The competitive advantages of "chateau", which produces local wines, allow to work effectively in the national and international markets.