MARKETING PARADOXES OF THE MODERN VITICULTURE MARKET IN UKRAINE

Abstract

The article is devoted to the issue of studying the realities, problems and prospects of the viticulture market in Ukraine. The author emphasizes the significant role of cultural and historical factors in the development of the industry. The author proposes a dualistic research methodology, which involves, on the one hand, a marketing approach, where any processes, phenomena and characteristics should be compared according to the criteria of the practice of integrated use of the «4P» tools (price, product, promotion and distribution), and, on the other hand, the classical paradigm of interpreting the market institution in accordance with classical political economy theories, market laws, etc. The author substantiates the expediency of analyzing this market by the dynamics of the socially significant share of products – table grapes, its drying products and juice products, primarily as indicators of the quality of life of society. The current market for viticulture products in Ukraine is a version of traditional, large-scale production focused on wine and other alcohol-containing products. Hence the more than significant deformation between demand for socially important viticultural products and supply. The fact of complete disregard for the needs of real demand in the 1990s and later, as market relations were established, can rightly be attributed to the effects of «market failure». The results of the research showed rather paradoxical signs of a clear imbalance in this market. This imbalance lies in the incompatible mismatch between the existing demand for products and the structure and range of supply. Hence, the domestic market of viticulture products is characterized by the following marketing paradoxes: 1) there is unjustifiably little grape production; 2) what is produced is mainly used for wine and spirits; 3) market imbalances in the form of huge demand for table grapes against the background of low-productive and deformed supply have been a well-established trend for decades and centuries in the absence of adequate market mechanisms. The prospects for the industry will primarily lie in the development of table grape culture in Ukraine. The prospects for further research are primarily to study the reasons for this «market failure», to substantiate in more detail the reserves and growth potential of the industry, alternative market forms, etc. This will allow to develop a correct optimization program.