The provenance paradox describes the challenge for brands originating in a number of regions in the world failing to compete in the top tier markets. Their origin carries a stigma which places them at an inferior position to brands that originate in supposedly more developed and reputable regions. Certain geographies are perceived to produce better products than others, despite the essence being that the products are of the same quality.
Following the examples from the case on how they built their up market positions with the strategies for combating the provenance paradox have been detailed: Flaunt Your Country of Origin and Stick to Colonial History
Example: Chocolates El Rey and Concha y Toro
Chocolates El Rey fails to find a position in the market where it can compete with the famous brands solely because it comes from Venezuela. For this chocolate brand, breaking through the barrier may be through emphasis on the fact that the reputable European chocolate brands actually acquire their main ingredient- cacao beans from El Rey. If El Rey processes these cacao beans, what would prevent it from maintaining the same quality in taste and richness when producing their own chocolate product? However, this may still be a weak point to stress on for El Rey, as consumers may still doubt them having the supposed expertise in refining the ingredient into the final chocolate product. Furthermore, Concha y Toro, the Chilean winemaker should deeply engage in brand management, like El Rey, in order to build stronger awareness of Chile’s exclusive varietals. By this, we describe wines made primarily from a single named grape variety typically displaying the name of that variety on the wine label. Both of these brands should stick to what they do best, in the case of El Rey, them processing some of the best cacao beans in the world, and Concha y Toro having its country, Chile producing great varietals and having a long viticultural history dating to the 16th century,...
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