Tactics in Marketing Strategy Development and Implementation - Case Study Example

Table of Contents Introduction 2 Organization Overview 2 Global Business Environment 3 Trade Pattern Policies & Agreements 5 Environmental Factors 6 Conclusion 7 References 8 Introduction This paper looks at analyzing the international marketing opportunities which Southern Peninsula Wines can use for increasing their business. The paper examines the different opportunities which an international market presents before Southern Peninsula Wines. In the beginning the paper will provide information about Southern Peninsula Wines which will be followed by the global business environment, the trade policies and agreements and finally the environmental factors which impacts overall business. This will thereby help to understand the manner in which Southern Peninsula Wines can look towards using the opportunity to improve their business. Organization Overview Southern Peninsula Wines as the name suggest manufactures wines in Australia. Southern Peninsula Wines is situated in Gretten Forest about 100km south of Melbourne and has been in business for more than a decade. It is a family business but over the years has grown and is one of the most desired wines in the region. Vision: Southern Peninsula Wines aims towards providing customers with one of the finest quality of wine so that the drinking experience can be enhanced. The organization thereby aims to spread their business worldwide so that people all around the globe can taste wine prepared from cool climate viticulture. Strategic Goals: The strategic goal is to enter India and look at capturing the Indian wine market which is not saturated as other markets of the world. The goal is to create a presence in the market and look at capturing a bigger market share by developing the required channels and mechanism through which deeper penetration in the market is ensured and overall growth is achieved. Capabilities: The capabilities which Southern Peninsula Wines has are (1) experience as the business is being carried out for decades; (2) specialization in wine making as wine production takes place in cool climate; (3) different varieties of wine is produced; and lastly (4) successful in different international ventures as the company has received different awards. Products to be considered for entry into international market: The product which Southern Peninsula Wines looks to market is wines as they specialize in the production of it. Since, their product is different from others and has been prepared in a cool viticulture climate so the company looks to enter the market with the same product which has been successful over different regions of the world. Global Business Environment Southern Peninsula Wines is based in Australia and has been successful in their endeavour as the product produced by them is desired by customers. The company has been successful in Australia as preference for wine is high out there. The climate is such that people look at drinking wine which has thereby increased the market. The different regions like China and UK has been growing as wine consumption has increased and provides better opportunities in the future. The overall business environment seems conducive for marketing and thereby increases the overall chances to carry on business smoothly. Most Viable International Market: The Indian market presents a lucrative opportunity for Southern Peninsula Wines as the economy is growing and the demand for wines is increasing. This is in addition to the fact that disposable income of people in increasing as the Indian economy is achieving a higher growth rate. Apart from it wine is considered a healthier alternative compared to other alcohol. India is also witnessing a growth in business community and young professional who look at consuming wines which hereby increases the overall market and opportunities. This thereby presents India as an opportunity to tap and enter into (Thompson & Strickland, 1999). Market Trends & Developments: Different developments and changes have been witnessed in the market which thereby makes the market more lucrative. One major change in the Indian market from other market is the people are young and people entering the age bracket to drink in increasing which will thereby provide a large base of customers to cater. It is seen that more than half of the people fall within the drinking age prescribed as 25 years providing a huge market. People below 24 years of age is around 50% which will provide an opportunity to tap them in the future as seen from the graph below (Fredericks, Toit, & Krügel, 2011) The overall market potential is increasing and with a continuous growth in population the market presents a huge opportunity. Apart from it the government rules have been simplified and looks at attracting foreign players will improve the overall opportunities and increase the chance to be successful. The different trend thereby multiplies the opportunities and provides with options through which better results can be achieved. Trade Pattern Policies & Agreements Trade patterns policies and agreements has a role in determining the chances of business being successful in the international arena as clear mechanism provides long term results. Proper policies and agreements create opportunities and help the market to grow. Trade pattern, policies and agreements: India has a trade agreement with Australia which facilitates easy trade between the countries. India and Australia have both entered into mutual consideration where they look at supporting the local industry at the same time ensuring proper rules and regulations which permit free trade. Both the countries are part of the agreement where different trade takes place and the government has prescribed the different conditions which both the economies need to fulfil. This would thereby ease the process and create new opportunities as the overall market will be shaped in such a manner that trade will take place with minimum government intervention (Gamble & Thompson, 2011). This thereby magnifies the opportunities as paper work will be reduced and the unnecessary government formalities will be curtailed. Apart from it India and Australia have a good relation with each other and both the countries look at entering into different agreements from time to time so that overall business opportunities can be maximized and the local people of both the countries can be better off from the decisions. Ease of operating: Southern Peninsula Wines will find it easy to operate in India as India is an open economy having trade relations with different countries. The country doesn’t follow protectionism strategies apart from certain industry which is weak. The wine industry is open and the government allows players to enter and compete in the market. The government has also eased out the mechanism of entering the country by doing away with unnecessary rules and regulations (Bristow and Frankwick, 1994) Apart from it rules have been simplified and steps have been taken to reduce the amount of paper work. This will thereby increase the overall opportunity which the Indian market presents and will magnify the overall chances of the business to be successful in their endeavour in India. Environmental Factors The environmental factors which have an impact on Southern Peninsula Wines while looking to work in India are as Political Environment: India has a politically stable government where a democratic format to elect the leader is carried out. The present BJP led government has a majority which thereby eases the manner in which the government works. The present government has looked towards an open policy where they aim towards inviting foreign players to invest in the country. The Indian government has also entered into different contracts with Australia which has eased the manner in which business is done and has multiplied the overall opportunities. Legal Environment: India has framed laws with regard to the working mechanism for foreign companies. The laws allows the use of organic food for the production of wine but in case the product is inorganic then rules with regard to oxygen content, filtration, salt and fermentation needs to be carried out. Apart from it rules pertaining to labour is been prescribed and every company needs to follow it. The government has also prescribed the different license and permission which needs to be received so that smooth functioning of the business takes place. Economic Environment: The economic condition of India is improving with higher growth rates and controlling inflation. The interest rate is also under control which provides an opportunity to ensure better business. Apart from it the country has a flexible exchange rate system which provides an opportunity to ensure that business can deal with different international transactions (World Bank, 2010). In addition to it the disposable income is increasing on a continuous basis which will provide an opportunity to ensure that people consume wine thereby providing a bigger market to cater. Socio-Cultural Environment: The social cultural environment of India is such that it is conservative and follows the policy of protecting the culture of India. The opening of the economy has provided the opportunity to adopt the western culture to a certain extent. This has thereby provided an opportunity for the wine makers to capture a bigger and new market (Binkley, 2006). Apart from it the population of India is young and people in the drinking age are continuously increasing. This thereby provides another opportunity to cater to a large market. Technological Environment: India is witnessing a change in technology as the government has taken steps towards adopting new technology. Technology is being witnessed to be used in every field which provides an opportunity to serve better. Use of technology like RFID and JIT will help the wine makers to ensure that the goods are delivered at time (Monsivais, & Drewnowski, 2007). Apart from it the government has also using technology in such a manner where it looks at garnering maximum results so that better delivery of goods takes place. Conclusion The paper thereby presents the different opportunities which an international market like India presents before Southern Peninsula Wines. The paper provides information about Southern Peninsula Wines which is followed by the global business environment, the trade policies and agreements and finally the environmental factors which impacts overall business. This thereby helps to understand the manner in which Southern Peninsula Wines can look towards using the opportunity to improve their business. References Binkley, J. 2006. The effect of demographic, economic, and nutrition factors on the frequency of food away from home. Journal of Consumer Affairs. 40, pp. 372-391. Bristow, D. and Frankwick, G. 1994. Product manager influences tactics in marketing strategy development and implementation. Journal of Strategic Marketing, 2 (3), 132-147 Gamble, J. E., & Thompson, Jr., A. A. 2011. Essentials of Strategic Management. New York: McGraw-Hill Irvin. Monsivais, P. & Drewnowski, A. 2007. The rising cost of low-energy density foods. Journal of the American Dietetic Association. 107, pp. 2071-2076 Thompson, Jr., A. A., & Strickland, A. 1999. Strategic Management (11 ed.). Mcgraw-Hill World Bank. 2010. Global Economic Prospects: Fiscal Headwinds and Recovery. World Bank Read More