Market an Australian Branded Wine Into a Foreign Market - Example

Wine Marketing Plan Name: University: Course Title: Instructor: Date: Executive Summary Marketing plays a critical role in connecting a firm with its customers. For an organisation to realise this is critical for organisation to outline a marketing plan based on the marketing research data. Any product launch and expansion services should be in sync with organisations mission, mission and key competencies. The first five sections review the guiding practices in the organisation. The sixth section examines the financial and non financial goals of the firm for the new foreign market. The subsequent one explores the environment in which the firm intend to market its product. The result of this environmental scanning shows that this country is suitable for doing business. The eighth section conducts internal and external analysis of the firm to see opportunities and strengths that can be exploited for success. In the SWOT analysis the strength are strong brand, innovation and willing management. Moreover, French economy offers potential for growth as an opportunity. The threats include numerous competitors while the major weakness is over focus on high end market. The next section explores marketing and product objectives. The marketing objective is to lock in customers. The target segment here is those who are in need of high quality luxury wine. The last is strategy and marketing mix. In this the pricing will be competitive and at lower level while offering higher value than competitors. On the other hand distribution will be through franchise agreement. Lastly, to have brand presence the firm will engage in corporate sponsorship and online advertising. Contents Executive Summary i Contents ii 1.0 Introduction 1 2.0 Company Description 1 3.0 Company Mission and Vision 1 4.0 Strategic Marketing Focus and Plan 2 5.0 The company’s Core competencies and Sustainable Competitive Advantage 2 6.0 Company Marketing Goals for the New Market 2 7.0 Macro-Environment Analysis (PESTEL) of the New Market 3 7.1 Political 3 7.2 Economic 3 7.3 Social 4 7.4 Technological 4 7.5 Legal 4 8.0 SWOT Analysis 4 8.1 Strengths 5 8.2 Weaknesses 5 8.3 Opportunities 5 8.4 Threats 5 9.0 Marketing and Product Objectives 5 9.1 Target Market 5 9.2 Points of Difference 6 9.3 Market Segmentation and Positioning Strategy 6 10.0 The Strategy and Marketing Mix 6 10.1 4Ps 7 10.1.1 The Product 7 10.1.3 Promotion 8 10.1.4 Place 8 11.0 Conclusion 8 Bibliography 9 1.0 Introduction The major role of marketing in any business company is to enable a company gain market leadership through understanding the needs of consumers and executing strategies that generate superior quality, value and service. Marketing aims at building value-based relations with a company’s customers, as well as with various internal and external business units of a company.1 Thus, marketing plan acts as a guide to the entire business company. A business company’s marketing strategies are usually executed through a marketing plan.2 This marketing plan will describe the marketing strategies of an Australian wine in Italian market. 2.0 Company Description Fosters Group Limited is an Australian company that is engaged in production and marketing of alcoholic drinks. The company is situated in the south west corner of Western Australia, a region better known for fine wine with over fifty years experience in wine industry. 3.0 Company Mission and Vision The company missions is to deliver global enjoyment through premium quality that satisfies customers need for alcoholic drinks that are mild on the body while delivering full refreshment. The company vision is to be a global brand and leader in production of alcoholic drinks. 4.0 Strategic Marketing Focus and Plan It is strategy that delineates the aspirations of an organization’s management for strategic business operations in the future.3 The segmentation utilises income and demographic factors.4The company’s strategic direction is divided into to three segments. To capture the top end niche segment of the market that buys luxury and high quality wine, average individual who is need and able to afford competitive priced alcoholic and non alcoholic products and youthful section of the population. 5.0 The company’s Core competencies and Sustainable Competitive Advantage The success relies on how a firm exploit its core competencies in terms of tangible and intangible assets.5 The company’s competitive advantage is its ability to design and produce both luxury and high quality wine, more than what the current competitors do. Moreover, the company is in a position to produce other kinds of wines which are competitively priced. In addition, the company has a wide network of distributors in the foreign market and has an experience of clearing and forwarding. The last is the vast financial resources that the firm has and the franchise network that it has built in France for over 40 years. 6.0 Company Marketing Goals for the New Market Non-financial goals: The Company seeks to diversify and promote its luxury, high quality and other drinks production lines to achieve initial sales revenue of 60% in the next 3 years. A crucial success factor would be to realize an initial market share of 30% within the next 3 years in France. Financial goal: The Company want to achieve product sales of $ 10 million yearly for the next 3 years totalling to $ 30 million within the 3 years target period. 7.0 Macro-Environment Analysis (PESTEL) of the New Market PEST analysis relies on an organization past events and experience in determining the future of a business organization.6 PESTLE analysis is an audit a business organization can undertake to determine environmental on business and use it to develop strategic decision-making.7 7.1 Political France has a stable and democratic political environment. This means it is easier for businesses to operate.8 And business permits are given so long as one meets all legal requirements. 7.2 Economic The country is ranked the fifth largest economy in the world with an annual GDP of $2.58 trillion in 2010. The government projects that by the end of 2012 financial year the GDP would have grown with 2.25 % in. The per capita GDP at PPP in 2010 was $34.077.9 This then means that averagely a good number of the population have high disposable income and can afford to buy high end luxury wines. 7.3 Social This is a country that is highly informed and people know what they want. This makes marketing easy. For instance people have come to appreciate the medical value of red if taken in moderation. 85 % of the French population is urban dwellers with the remainder being rural dwellers (central intelligence agency US). This means that distribution of goods is made easier as people are concentrated in few locations. 7.4 Technological Being the fifth largest economy it means the country is ahead technologically. This eases business transaction. The important factor is online technology. Since the level of connectivity is high, this offers chance to invest in e-commerce/ online trading and advertisement. 7.5 Legal There are various legal constructs aimed at creating level playing field for all businesses. 8.0 SWOT Analysis SWOT analysis involves evaluating both internal and external factors, which have either beneficial or detrimental impact on the ability of the company to compete large and established companies in the market place. The company’s strengths are internal resources and capabilities are the company’s core competencies. Weaknesses on the other hand, are those factors internal to a company that jeopardize business competitiveness in the market.10 Opportunities and threats are both factors external to a company which have a bearing on the company’s competitiveness and performance in the market place. Business companies have limited control over these exogenous factors.11 8.1 Strengths The company pins its strength on its key resources.12 One of the strengths of the strengths comes from the highly experienced and dedicated management. Innovation is another key strength of the company that enables it to design and produce unique products. Other strengths of the company that would give it competitive advantage include; its result oriented strategy, highly qualified personnel, and low prices for high quality products strategy. 8.2 Weaknesses The company being new in this market is faced with numerous internal weaknesses. The only contact the firm has had with France is through distribution by franchise arrangement. While the firm produces and markets other competitively priced wine, it has over focussed on high end priced wines. This does not offer it an opportunity to tap into extended market. 8.3 Opportunities The company’s opportunities arise from the large and stable market for products in France. The second is technological know-how for products design, and production, as well as favourable legal and regulatory requirements on wines industry. 8.4 Threats Major threats to the company’s competitiveness arise from the highly competitive nature of the industry. The industry has many players with numerous brands. This is likely to threaten the survival and competitiveness of the company. Other threats arise from the current unpredictable market trends and the ever changing technological advancement. 9.0 Marketing and Product Objectives 9.1 Target Market The company targets population that needs luxury and quality wines at affordable prices. 9.2 Points of Difference The company offers unique luxury and high quality wines at affordable prices as compared to what the existing companies in the market provide. 9.3 Market Segmentation and Positioning Strategy The process of developing the company’s marketing strategy was done in three phases. First, the company selected the target market by analyzing the consumer demand. This involves aggregating consumers whose needs are similar and grouping demand patterns as homogenous, clustered or diffused.13 The company applied the concentration strategy in segmenting the target market through clustering those with relatively similar product needs.14 The company employed concentration strategy so as to focus on the top end niche segment of the market. This market segment needs luxury and high quality wine. The concentration strategy involves the use of a single marketing mix for the entire market segment.15 10.0 The Strategy and Marketing Mix The company seeks to take an undifferentiated or total market approach in targeting the market.16 This marketing strategy will involve single marketing mix for the entire target market segment. The company pricing strategy is to design and produce luxury and high quality wine and sell them at competitive prices to the top end niche of the target market segment.17 10.1 4Ps Proper marketing deals with the question of what do customers want, where the market is, who will buy and why they will buy the product. 10.1.1 The Product The Victoria Bitter (VB) wine is a specially matured alcoholic drink with gentle fruitiness aroma to complement the sweet malt on the mid plate. It balances perfectly to deliver full flavour with crisp clean hop bitterness when ice cold. Being a mid strength wine, it is an ideal choice for enjoying a full bodied wine without feeling like you have had one too many in addition to satisfying refreshment like no other making it the ideal wine for French market. 10.1.2 Price Bowman’s strategy clock is an extension of porter’s three strategic positions to eight strategic positions. It can be used to understand pricing and strategic positioning. The focused differentiation strategy position lies fifth in Bowman’s strategy clock. In this strategic position, business organizations produce high value product and services at high prices.18 Consumers perceive these high valued products and services as having high values for their monies. In this regard, consumers will buy the high valued due to the perception created from the high price. This strategy is what will be employed by the company.19 10.1.3 Promotion One way of enhancing consumers’ awareness, recognition, and behavioural intentions is by engaging in official sponsorship deals.20 The firm will invest in promotion so as to create a brand presence. To achieve this, the firm will engage in advertising and corporate sponsorship. Abrahamsom, Forsgren & Lundgren (2003: 4) notes that sponsorship gives a company leeway to enjoy promotion mix. One important aspect of sponsorship is the ability to inform through advertising supply through sales promotion, create positive lasting image through public relations and interact with customers through personal selling. 10.1.4 Place One of the approaches to enhancing market share and leadership in global arena is through franchising and licensing. Franchising concept to the franchisors as a corporate function offers a platform for these firms to succeed internationally.21 The basic approach to distribution of the product in France is through franchise arrangement. 11.0 Conclusion This marketing plan offers path towards introducing a new product into foreign market. The company’s mission will be the driving force for its success. Moreover, the company will strive to exploit the opportunities in the industry while being supported by its core competencies. With the stated plan it is projected that the product will be successful. 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