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Market Information and Analysis - - Assignment Example

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Market Information and Analysis – Assignment Table of Contents 1 2 Question One 3 Question Two 5 Question Three 8 References 13 . Question One According to the assumptions of Mr. Skinner, average price points are generally influenced by the formats, the regions as well as the grape varieties…
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Market Information and Analysis - Assignment
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Download file to see previous pages For the identification of the position held by Australia in the global context, understanding of the ways in which consumers perceive the wines produced in the nation is quite significant in order to determine the growth opportunities. In order to comprehend the relation in between the price and the format, the principle of data reduction can be applied. In this context, Pearson’s correlation has been calculated based on the data provided in data set 1 related to wine sales in Australia and a correlation of 0.9 has been obtained. It can be stated that association among the price and the format exists with high correlation. . In order to determine the association between price and region, it would be prudent to conduct literature review and identify what the literatures decipher. Literature depicts that greater quality effect upon the price of wine is identified for the climate region that is warm. If the wine belonging to the warm region is correlated with superior quality then in such context increase in price of wine is quite evident. However, on the other hand, even if the quality of the wine is improved to a significant degree in cold region, it is quite likely that the price of the wine would not increase as much as that of the price in the warm region. The main reason behind this is that the Australian consumers might favor to consume wines from warmer regions. It may also be because of the fact that warmer regions were planted quite earlier and consumers tend to posses greater knowledge regarding them and are ready to pay greater price for their wines (Ling & Lockshin, 2003). Although there is downward trend of prices of grapes since past few years, there has been alteration in the varieties. It can be mentioned that the average price related to shiraz grapes has been the greatest of the top red wine grape varieties. The price of cabernet sauvignon grapes has been declined by about 9 percent. The recent financial crisis all over the world has sternly affected the demand for wine, placing greater stress upon price of wine grapes all over the world. With the anticipated world economic recovery, it has been expected that the demand for wine is likely to strengthen over the short or medium term. However, with the greater supply of wine in the world along with the rising amount of bulk shipments of wine globally, it may not lead to increase in the global prices of wine. Given these conditions, the price of wine in Australia is anticipated to remain subdued in the coming few years prior to the slower recovery towards the end of the projected year. It was noted that during the year 2008-2009, due to considerable supply of the wine grapes, most of the wine companies offered fruits at relatively low prices. It was further noted that numerous growers were informed that their contract for wine grapes is not likely to be refurbished once they expire. If no contract is made then in such cases the farmers need to supply grapes in the spot market, which could potentially expose them to relatively lower price. It has further been found that there are generally two formats of imported wines such as specialty “vintages” format serving to the adherents as well as core consumers possessing extended tastes along with regular liquor stores holding mainly greater volume, moderately-priced products with quite restricted selections (Gunning-Trant & Kwan, 2012). Hence, from the data that has been presented above, ...Download file to see next pagesRead More
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