Uncovering “theories‐in‐use”: building luxury wine brands

TLDR

Little is known about how luxury brands are created and maintained, despite their high profile, and existing experience suggests they focus on building abstract, timeless images, yet systematic research is lacking. This study aimed to uncover the tacit processes underlying the creation and maintenance of luxury wine brands through case studies in the luxury wine trade. The authors employed case studies of luxury wine producers to identify the hidden processes that shape brand creation and sustain market position. The results show that luxury wine brands combine product quality dedication, strong values, tacit marketing insight, meticulous detail focus, and strategic emergence.

Abstract

Despite the high profile of many international luxury brands, little is known about the processes by which these brands are created and how their market position is maintained. Research and practitioner experience suggests that these brands focus on building abstract, “timeless” images or dreams. However, no systematic research has been carried out on the processes and strategies of luxury marketers. Based upon case studies in the luxury wine trade, this research sought to uncover the tacit processes underlying the creation and maintenance of luxury wine brands. Results highlight that luxury brands are a complex combination of dedication to product quality, a strong set of values, tacit understanding of marketing, a focus on detail, and strategic emergence.