The Treasury Wines - Market Overview - Case Study Example

1. Business Overview The Treasury Wines has been operating in the Australian wine market since the year 2011. It makes wines that is competitive globally where it has been distributing its products globally. The quality of its products is the primary factor that sets the company above the competitors in the market. The products of Treasury Wines are targeted for both the aged and young customers as its wine is preferred in the market. In the next two to five years, Treasury Wines will have positioned itself competitively in the market. The competitiveness will be achieved through ensuring proper engagement of the targeted customers in the development of its products. 2. Market Overview The industry in which Treasury Wines will be operating is wine industry in Australia. The changes that I predict to take place in the industry can include affordability of the products, improvement in quality of the wines offered to the consumers. Quality is among the major core values of the company as the management is focused to meet the needs of the customers. The success of the business will be a guarantee as customers in the market are looking for high quality products. Besides, the company will ensure that the customer are involved in the product development process to ensure they expectations are met. The major reason for developing the marketing strategy is to increase market share and increase the competitiveness of the company in the market. Therefore, the development of the market strategy is critical to the success of the company in the Australian wine industry. 2.1. Customer Information The type of customers that I like to reach include all adults above the age of 18 years. The demographic information that is available to help in reaching the targeted customers include their lifestyle. The customers that I want to reach include those who have disposable income necessary for spending on wines. The main market is comprised of the customers who are looking for healthy alcoholic drinks. The basic needs of the main market are access to wine drinks that are tasty and able to meet their needs. The high quality of the company wine stimulates their decision-making process. 2.2. Market Information The demand for wine in the Australian wine market has grown by around 2.1% as the customers are looking for high-quality alcoholic drinks. The past trends have shown a positive change in the demand an indication that in the future the demand will continue increasing. The primary competitors of the Treasury Wines include pubs, nightclubs, and bars. However, Treasury Wines has a larger market share than the competitors because of the high quality of the wine offered to the customers. 2.3. Industry Information The high level of competition is the major factor affecting the wine industry in Australia because of many firms entering the market. The industry is growing as the demand for wine has been increasing. However, the industry is affected by numerous regulations in the distribution and making of wine that has to be adhered. The government and customers are the major stakeholder where the government is responsible for regulating the market while customers determines the products manufactured. 2.4. Product/Service Information The wine manufactured and distributed by Treasury Wines is of high quality as the interests of the customers are considered in the development process. The major selling point of the company wine is its high quality and affordable prices. The most important thing concerning my product is the fact that the customers are engaged in the development process. The people feel that the products can meet their needs but I want them to feel the difference between the products and that of the competitors. The product is currently promoted by offering low prices making many customers purchase with the aim of increasing its market share (Reed, 2010). 3. Objectives The objectives of Treasury Wines include: 1. To increase the market share by 30% through offering competitive products that are of high quality. 2. To achieve competitive advantages in the market through formulating strategies that are in line with the business environment that can affect the Treasury Wine’s performance. 3. To ensure proper engagement of the stakeholders in the management of the company through improved communication. 4. Strategy Treasury Wines will make sure that the customers can receive high-quality wine that can be able to meet their expectations. The company will be committed to ensure that the product is competitive in the market through constantly engaging the stakeholders. The pricing strategy adopted will make the product competitive in the market as the prices will be lower than that of the competitors (Lamb, Hair and McDaniel, 2008). The promotion and distribution of the product will ensure increase in the sales volume as the various factors affecting the product will be considered. The management will make sure that all the strategies adopted can make the company competitive in the market. 4.1. Product Treasury Wines product will continuously improve to meet the changes in the preferences of the consumers. Treasury Wines will ensure constant market research to keep pace with the market changes. As a result, the benefits that will be offered by the product can include meeting the expectations of the customers. The unique selling point of the product will include its low prices and high quality. 4.2. Pricing The pricing strategy of the company will be low to attract more customers. The low pricing will make the company products competitive hence enhancing the demand in the industry. The company will realize improved profits despite the low prices through automating most of the operations to lower the costs of production. Besides, it is through the low prices that the sales volume can increase as the demand for the products will be high (Aaker, 2011). The products will be offered at a discount during the launch stage as part of promotion. The prices of the products will be 5% lower than that of the competitors to attract more customers. 4.3. Distribution Treasury Wines will make use of wholesalers and retailers in the process of distributing the products. However, standards will be set that the distributors will follow to ensure that the customers are satisfied hence increasing the market share. The distribution network will be improved to increase the sales volume of the company. The distribution channels used by the company are better compared with those of the competitors. 4.4. Promotion Website: Treasury Wines will make use of internet in the process of improving the communication with its customers. The management will design the website that will be used in posting the information concerning the company products. The use of the internet is an efficient way of communicating, as the internet users are increasing with the increased number of internet support gadgets (Ferrell and Hartline, 2011). The customers will be in position to access the information concerning the products. Advertising: Treasury Wines will ensure advertisements of its products to make sure that the products are popular in the market. The primary advertisement will be digital advertisements using social media. The use of social media in advertisements is considered effective and efficient as the information will be able to reach many customers at the same time. Public Relations: The Treasury Wines will ensure good relations with stakeholders by ensuring excellent corporate communications. The public relations professionals will be hired who will be responsible for making sure that the necessary communications are made to the stakeholders. Promotions: The company will offer discounts as part of the promotions to help in increasing the demand for the products. The use of discounts will make the products cheaper hence making them competitive in the market as many customers will be attracted. The discount will be 4% of the product prices that will make the company products unique in the industry. Branding: The company brand will be made unique in the industry through enhancing quality and considering the interests of the customers. The company products will be known for being of high quality and able to meet the needs of the customers. Personal selling: Treasury Wines will have a sales team that will be meeting the customers face to face. The team will form an important source of information concerning the performance of the products in the market (Egan, 2011). Besides personal selling is important in convincing the customers to buy the products. Direct marketing: Treasury Wines will make use of direct market to enhance the relationship with the customers. Direct emailing and text messages will be used in the direct marketing with the aim of meeting the needs of the customers better in the market. 4.5. Operational Plan The success of Treasury Wines entirely depends on the quality of its products. The direct tactic will be used to ensure that the company is aware of the needs of the customers in the market. Treasury Wines will make use of technology in operations to improve the quality and services delivery to the customers. Besides, the company will ensure operational public relations department that will be handling the issues facing the customers. 4.6. Sales promotion The low prices of the products are geared towards improving the sales volume y attracting more customers. Offering discounts to the customers is aimed at making the company products competitive in the market. The sales promotion will help in increasing the market share by making the products competitive in the industry (Kotler, Kartajaya and Setiawan, 2010). Considering the high prices offered by the rivals in the market, the low pricing of the products and discounts will help in making the company competitive. 4.7. Advertising The company will make use of technology in advertising its products. Social media platforms will form an important part of the advertising activities of the company. The product information will be communicated to the customers using the social media platforms such as Twitter. As a result, the advertising activities will be made effective and efficient through the use of social media platforms (Kerin, 2010). 4.8. Public relations The company will ensure that the public relations department work toward enhancing the relations of the organization with its stakeholders. For instance, the company will participate in the community projects in the process of improving its relations with the society. Through public relations, the company will improve the reputation of the company through ensuring proper communication that will make the organization focused on customer satisfaction. 4.9. Direct Marketing The company will directly market its products to the customers using direct emails. The direct marketing activities will help the company in establishing good relations with its customers (Hooley, Nicoulaud and Piercy, 2011). Besides, the company will be in a position to access important information through direct marketing that will help in increasing the sales volume and market share. 4.10. Online Marketing Treasury Wines will make use of online marketing to achieve efficiency. The online marketing is considered significant in reaching many customers as the number of internet users has been increasing. The customers will be in a position to access the information concerning the products online. 5 Budgets Item Completing date The costs Measuring the success less Building social platforms 20th April $ 6,000 1500 hits on average monthly brochure printing 15th may $ 5,000 Improving the popularity of the products Advertisements 17th may $ 3,000 Increasing awareness of the products Website hosting 20th may $3,000 Appearing in the google page Creating and managing the social platforms 4th June $ 2,500 Increased awareness Opening 20th June $ 2,000 More than 100 people attending The totals $21,500 6 Action Plan Action April May June Who Developing the social platforms 20th Peter Preparing brand logo 22rd Carol Opening the social platforms 24th IT personnel Testing the operations of the platforms 25th Carol Advertising 4th 4th Carol Distributing brochures 2rd 10th Peter Inviting the bloggers 15th Peter Opening business 20th Peter and carol Republishing brochures 21st Carol Offering Web specials features 25th Peter 7 Supporting Documentation The purchase of the premise used in the business costed $2,000,000. The funds came from the capital injection of the owners. There were extra costs incurred in the process of furnishing the premise and doing the necessary installations that is around $100,000 funded through a bank loan. Number of the attachment Name of the document Attachment 1: Balance Sheet of the 1st year Attachment 2: Profit and loss statement for the 1st year References Aaker, DA (2011), Strategic market management, 9th edn, John Wiley & Sons, Hoboken, NJ. Egan, J (2011), Relationship marketing: exploring relational strategies in marketing, 4th edn, Pearson Education United Kingdom, Harlow. Ferrell, OC & Hartline, MD (2011), Marketing strategy, 5th edn, South-Western Cengage, Mason, OH. Hooley, G, Nicoulaud, B & Piercy, NF (2011), Marketing strategy and competitive positioning, 5th edn, Pearson Education United Kingdom, Harlow. Kerin, RA (2010), Strategic marketing problems: cases and comments, 12th edn, Prentice Hall, Upper Saddle River, NJ. Kotler, P, Kartajaya, H & Setiawan, I (2010), Marketing 3.0: from products to customers to the human spirit, John Wiley and Sons, Hoboken, NJ. Lamb, C, Hair, JF & McDaniel, C (2008), Marketing, South-Western Cengage Learning, Mason, OH. Reed, P (2010), Strategic marketing: decision making and planning, 5th edn, Cengage Learning, Mason OH Read More