Characteristics of strong territorial brands: The case of champagne

Abstract

While most brands belong to individual enterprises, some brands are collective and based in a single territory. This paper, based on qualitative research, examines the characteristics of these territorial brands using the case study of the wines of Champagne in France. Employing a series of primary data sets and past studies the paper first explores the nature of the territorial brand (including its overarching nature and emergent development), then develops an analysis of the preconditions for strong territorial brands. The proposition is that these include a specific type of brand manager, a definite willingness to co-operate, a common mythology and local engagement. The paper considers goods that are inseparable from their origin whereas prior literature focuses only on services of this type. This paper also provides insights for marketers of territorial products in terms of how to ensure their success both in local and global markets as well as how to leverage the origin appropriately.

Introduction

Most brands are the property of a single company, or of a group of companies with a common ownership. However, there are exceptions where a number of independent enterprises may share a brand. These kinds of brand tend to originate from a single place or territory from which it is impossible to separate them and which offers a group of competing organizations a collective, overarching brand identity. In effect this creates a form of double or two-tier branding structure, so that the individual enterprises benefit both from their separate brand identities and also from the collective brand, termed here, because of its intimate relationship with the place of origin, the territorial brand. Scotch whisky, Quebec maple syrup, and Carrara marble all fit into this category. Such products are not created through consumer orientation; rather, a production orientation results, as core characteristics of the product depend on the environment.

Consequently, the current paper explores the notion of unique, geographically-bounded territorial brands in contrast with the operation of traditional, corporate brands. In so doing, the research sheds light on the characteristics associated with the effective marketing of a territorial brand in a competitive global marketplace. The case study methodology considers in detail the management of champagne (the wine) and Champagne (the region). The success of the champagne industry over the last 65 years makes it an interesting means of examining the territorial brand. Through a series of qualitative insights, the notions of the territorial brand begin to emerge.