...102 JULY–AUGUST 2003 > VOL 18 NO 4 > WINE INDUSTRY JOURNAL M A R K E T I N G Rob van Zanten, Johan Bruwer and Karen Ronning FUNDAMENTALLY, Integrated Marketing Communications (IMC) refers to the process of integrating and coordinating the various communication elements commonly known as the ‘promotional mix’. The promotional mix is usually considered to consist of advertising, sales promotion, personal selling and public relations, although some marketers may add other elements such as publicity, direct marketing or sponsorship as major components. IMC is therefore not just a concept relating to consistency or synergy—it is also a strategic process (Van Zanten & Bruwer 2002a). This is in particular the case of when and how IMC manifests itself at the wine region level, in which case the integration of all the marketing communication efforts of the wine region in order to achieve a strong brand identity is of the utmost importance. The Coonawarra wine region (Geographical Indication) is located in the South East corner of South Australia and is famed for its unique terra rossa soil and bold-flavoured red wines, in particular Cabernet Sauvignon. About 5,000 hectares of vineyards comprise the Coonawarra grapegrowing area. The region currently boasts 16 operating (production- type) wineries and 22 cellar door sales facilities. Around 700 people (full-time equivalent) are employed in the vineyards, wineries and cellar door facilities. The region produces on...
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...terra rossa soil and bold-flavoured red wines, in particular Cabernet Sauvignon. About 5,000 hectares of vineyards comprise the Coonawarra grapegrowing area. The region currently boasts 16 operating (production-type) wineries and 22 cellar door sales facilities. Around 700 people (full-time equivalent) are employed in the vineyards, wineries and cellar door facilities. The region produces on average about three and a half million cases of wine per annum. A significant portion of Coonawarra wine COMMUNICATIONS INTERNAL INTRA-REGIONAL unplanned messages product & service messages ) initiated by planning group ( planned messages ( planning group ) CONFIRM SAY DO community support, unsought local media support, industry and government body support workshops and seminars, liaison...
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...WINE INDUSTRY REPORT Expert Report on the Profitability & Dynamics of the Australian Wine Industry PREPARED FOR WINEMAKERS FEDERATION OF AUSTRALIA BY CENTAURUS PARTNERS – AUGUST 2013 This proposal is solely for the use of WFA. No part of it may be circulated, quoted or reproduced for distribution outside the addressees without prior written approval from Centaurus Partners. 2 Expert Report on the Profitability and Dynamics of the Australian Wine Industry Centaurus Partners INTRODUCTION AND REPORT CONTENTS The Australian (and global) wine industry is highly fragmented with many different business models, and significant variations in performance. Players within the industry make decisions based on their individual position, strategy and view of economic fundamentals. The intention of this review is to provide facts and perspectives to help WFA determine where it should focus its industry efforts and how it can support individual participants in their decision-making processes. The Report has four sections: ummary Findings of the Expert Review S ecommendations for the WFA Board to Consider R xecutive Summary of the Fact Base Supporting the Findings and Recommendations E Appendices • Recommended Next Steps for WFA • Overview of Approach, Analysis, and Sources • dditional Analyses and Exhibits—Available on the WFA Website www.wfa.org.au/review A Segment Definitions. To enable clear evaluation of the Australian...
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...Exam case Australian Beverages Limited Pre-seen information Semester 1 2010 Australian Beverages Limited — Pre-seen information A. Introduction to Australian Beverages Limited — March 2010 Australian Beverages Limited (ABL) commenced soft drink manufacturing in 1937. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit and milk-based drinks. Entry into the snack food market was recently undertaken in response to declining consumption of carbonated soft drinks (CSDs), the company’s traditional area of business strength. This move also enabled ABL to leverage its strong distribution capabilities to supermarkets, convenience stores and hospitality channels by adding adding such complementary food products to non-alcoholic beverages. Nevertheless, CSDs still accounted for 90 per cent of company revenue in 2004. Tom Dwyer, the current managing director, has been with the company since 2005. He joined the company at a time when CSD growth was stagnating and shareholder confidence in the company was waning. This had resulted in the share price declining by 15 per cent in the two years prior to his appointment. In order to restore shareholder confidence, Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. From this review the importance of operational excellence was identified and strong...
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... Introduction Recently, Visy Industries Australia Pty Ltd seeks clearance from Australian Competition and Consumer Commission (ACCC)to acquire certain business and assets of HP Industries Pty Ltd. It raises concerns socially and economically as to whether the merged entity will substantially lessen customers in each of NSW and/or Victoria. This report will identify and justify the type of market for the Australian packaging industry. It will then consider the stakeholders and their interests regarding this issue. Finally, it will assess the social and economic consenquences if the merge take place. Nature of the packaging industry The Australian packaging industry is a Oligopoly in which natural barriers prevent the entry of new firms. The new entrants could experience a significant start- up cost involved in establishing a manufacturing plant on the quantity produced and low marginal cost. Visy, HP and Pact are the three major firms dominate the market. Such firms are interdependent.The kinked demand curve model is applied to this market which indicates that if one of the firms raises its price, others will not follow, but if it cuts its price, other firms will become price takers. The demand is very significant, including large beverage companies, food industry and personal care companies. The product is differentiated in relation to PET bottles and rigid plastic containers.It can be generic or highly customised. Further, PET bottles can be manufactured using...
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...competitive, 600 million dollar bottled water market in Australia. This relatively new brand is seeking take advantage of changes in social attitudes and trends in Australia. Each dollar of profit that is spent on Thankyou Water products goes toward providing water to developing nations across the world. Social changes, have dictated that consumers are more conscious of business profit; this presents an opportunity to Thankyou Water. Additionally Thankyou Water has had to be wary of changes in legislation and any demographic shifts in the Australian population. Technological changes will allow Thankyou Water to become more efficient in the distribution of its product and packaging. Thankyou Water’s competitive advantage lies in the price of its product, and the need in which it meets as a socially enterprise. With each dollar of profit going to numerous water projects, Thankyou Water, appeal to this ‘socially conscious consumer’ in the Australian bottled water market. Thankyou Water is positioned similarly on quality to other bottled water competitors; however, Thankyou Water differentiates themselves on the intangible benefits the product provides. The four main competitors in the bottled water market in which Thankyou Water operate, include, PUMP, Frontally, Mount Franklin and the Gloria Jeans product, Water for Water. Each product is positioned...
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...Australian Food and Grocery Council SUSTAINABILITY COMMITMENT CASE STUDY COCA COLA AMATIL – PACKAGING & RECYCLING Coca-Cola Amatil (CCA) is one of Australia's largest premium branded beverage and food companies. CCA is committed to conduct business in ways that protect and preserve the environment and to integrate principles of environmental stewardship and sustainable development into business decisions and processes. In 2011, CCA continued the $450 million Group-wide rollout of 'blowfill', or PET bottle selfmanufacture technology, with three additional lines commissioned in Australia. „Blowfill‟ has enabled CCA to design new lightweight primary and secondary packaging, PET bottles, and has enabled the saving of thousands of tonnes of raw materials. CCA‟s Mount Franklin Easy-Crush Bottle went into the market in 2011as the lightest weight Australian-produced 600mL water bottle made with 35 percent less PET plastic and a carbon footprint that is 27% less than the previous Mount Franklin bottle. The Mount Franklin Easy-Crush Bottle is 100 per cent recyclable and easily crushed when empty, making it easier to be recycled. This innovation was awarded Gold in the Australian Packaging Covenant Sustainability Award category of the 2011 Australian Packaging Design Awards. 'Blowfill' technology, along with CCA‟s investment in technology to manufacture the PET preforms and caps used in bottle manufacture, has enabled the company to lightweight its entire small carbonated soft drink...
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...France, Italy and Spain, sending approximately 2.5 million bottles of wine overseas each day. The UK and the US are Australia’s largest markets. Australia is the biggest wine exporter to the UK, and the second biggest to the US, behind Italy. Australia’s exports in wine have grown at an extraordinary rate in recent years. On a national scale, Australia has about 2000 wine companies and the sector employs around 31,000 people. There are 167,000 hectares under vine and the total grape crush is1.85 million tones. Michael porter developed the theory of national competitive advantage. This explains why particular nation achieves international success in particular industries. Competitive Advantage of nations has been the outcome of 4 interlinked advanced factors: Factor conditions, Related & supporting industry, Firm strategy and rivalry and Demand conditions. Factor Conditions: Australian wine has a competitive advantage because of its natural resources and environment. Lower land costs, a large choice of climates and terrier offering regional diversity spread across 62 regions. Australia has a strong infrastructure of viticulturists and winemakers, research institutions and an industry structure, which is free from the regulatory strictness. There is also unity in the Australian wine sector and close working relationships with related industries such as food and tourism. Firm Strategy and Rivalry The Australian wine industry displays the cluster characteristics of a geographic concentration...
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...Australian Beverages Ltd-Pre-seen case study information A Introduction to Australian Beverages Ltd In 1937, Australian Beverages Ltd (ABL) commenced manufacturing soft drinks [non-alcoholic drinks rather than 'hard' drinks that contain alcohol]. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit- and milk- based drinks. In 2011, the company was Australia's largest supplier of non-alcoholic beverages. Tom Dwyer, the current Managing Director, has been with the company since 2008. He joined the company at a time when carbonated soft drinks (CSDs) growth was stagnating and shareholder confidence in the company was waning. Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. From this review the importance of operational excellence was identified and strong investment was made in world-class manufacturing facilities and systems. Process re-engineering was implemented to reduce the costs of manufacturing and time-to-market. Given the declining consumption of CSDs, Managing Director Tom Dwyer has sought to reduce ABL's reliance on them, focusing on growing new products and entering new non-alcoholic beverage categories since his appointment in 2008. Alongside significant investment in product development of other non-alcoholic beverages, several acquisitions have been made to...
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...Table of Contents 1. Introduction 1 2. Wine Manufacturing Industry and External Environment 2 2.1 Wine Manufacturing Industry 2 2.2 External Environment 6 3. Porter’s 5 Forces Analysis 10 3.1 Threat of New Entrants 11 3.2 Bargaining Power of Buyers 12 3.3 Threat of Substitutes 14 3.4 Bargaining Power of Suppliers 16 3.5 Rivalry within the Competitive Arena 17 4. Conclusion 19 Reference 21 1. Introduction Captain Arthur Phillip brought grape vines from Brazil and the Cape of Good Hope to Australia when his fleet arrived in Botany Bay, located in Sydney, in 1788, according to Wine Australian which is one department of Australian government. Since that Australia had made a history of producing and exporting wine. In 1854, a barrel of fortified wine was exported to London, which is the first reported Australian wine export (Wine Australia, 2012). Subsequently, Australian exports in wine have boosted at an extraordinary rate especially in recent years, reaching the record level in 2007. Today, Wine Australian also point out that Australia is the fourth largest wine exporter in the world, constituting about 4% of total world wine production, and export over 800 million liters to international wine market and as a result, it produces a contribution of around A$3 billion per year to Australian economy. Australian wine exports to more than 100 countries; mainly two biggest markets are United Kingdom and United State. Besides, there are other significant markets...
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...Examination Case Study: What type of organization is Schultz Wines Limited? Schultz Wines Limited was established in 1840’s by one of the founding winemaking families of Barossa Valley in South Australia who had migrated from Germany. The company was listed on the Australian Stock Exchange in 1996 and operates from a single site located in Barossa Valley. The company’s current Managing Director, Fred Schultz, is a fifth generation winemaker, a direct descendent of original Schultz family, and the company maintains the tradition of being an independent family wine company with premium brands, despite being a publicly listed company. What industry, product segments/markets does Schultz Wines Limited operate in? Schultz Wines Limited is the 7th largest company in the Australian Winemaking Industry and competes in key export markets in North America, Europe and Asia. Core activities cover grape growing and procurement, harvesting, crushing (includes crushing for other wineries), storage and fermentation of grapes and distribution to local & international markets, having vertically integrated, Schultz Wines has had its own vineyard and produce 20 per cent of its grapes requirements. Schultz Wines does not bottle its wines. They are bottled by a nearby bottler that also packs them ready for distribution to various markets. Schultz Wines operate in all three major product segments: Table wines (includes Red & White varieties), Sparkling wines and Fortified and other wines. Schultz...
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...adjust their practices. Wine-makers and new industry players alike find themselves challenged not only by each other but also by the ever-evolving market they find themselves in. In the following paper group ten collectively presents the research and case analysis of the article, “Global Wine War 2009: New World versus Old”, written by Christopher Bartlett. This paper will present the goals and constraints of the new world Australian wine industry breaking into the United States, along with our competitive analysis. We will show you the hurdles that this new world industry faces in a competitive environment and outline their strengths and weaknesses. After identifying the central problems, we will present alternative strategies that the Australian industry can use and the best alternative to take. Finally, we will present a way to implement the best alternative decision. Viticulture, or the cultivation of grapes, spread throughout the Mediterranean region under the Roman Empire and as wine drinking grew in popularity, was soon used in liturgical services, as monasteries started planting their own vineyards. In the Middle Ages, European nobility began planting vineyards and competing with each other over the quality of their wines, this was the first niche market for premium wines. As time went on, winemakers became more sophisticated and mass production of glass bottles, the use of cork stoppers, and pasteurization revolutionized the industry. This sparked greater...
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...on the stock exchange. | | |5 |The letters Pty Ltd after the name of a business indicate that it is not incorporated. |FALSE | Total Section A: 5 marks Section B: Multiple-choice questions Select the most correct answer. Question 1 A business organisation will always have: A. paid employees. B. more than three people involved. C. the letters Ltd after its name. D. stakeholders. Question 2 Which of the following would be classified as a public sector organisation? A. the Royal Society for Prevention to Cruelty to Animals (RSPCA) B. the Body Shop C. the Australian Broadcasting Corporation (ABC) D. Epworth Private Hospital...
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...Describe the biophysical, ecological, economic and sociocultural factors that explain the nature, spatial patterns and future directions of a global economic activity you have studied INTRO The factors that explain the nature, special patters and future directions of viticulture include the biophysical, ecological, economic and socio-cultural factors. BIOPHYSICAL FACTORS The ideal temperature for growing grapes depends on the type of grape. For growing white grapes, ideally the temperature should be 19°C and for red grapes, 21°C. Reaching this ideal temperature is important because it is how the vine produces the sugar needed for plant growth, which influences the colour and flavour of the grape. The scientific reason for this temperature requirement is due to the enzymes involved in sugar production, and the ideal working temperature for these enzymes. Insolation refers to the level of solar radiation; this has an impact on the rate of photosynthesis and therefore affects the amount of plant growth. For this reason there is a certain longitude where grapes grow best. Aspect affects the amount of sunlight received on the vineyard. In the southern hemisphere north and west facing slopes are ideal as they receive more sunlight. Excessive wind results in grapes being damaged and vines become stressed, if there are strong winds it can break off shoots and cause damage which results poor growth and decreasing levels of photosynthesis. Vines generally require approximately 700mm...
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...Australian Fruit Juice Industry Report Executive Summary The purpose of this report was to examine the Australian Fruit Juice industry. Research for this report included the IBISWorld Fruit Juice Drink Manufacturing report. The Australian Fruit Juice industry consists of 56 wide ranges of beverages including flavoured water, iced tea, and fruit drink and fruit juice, with 4 major companies representing 71.5% share. The industry had an annual growth of 1.1% in 2008-13, businesses profited over $106.2m creating the industry revenue of $2.0 billion. The major findings indicate the importance of correct advertising and labelling of fruit juice this ensures that no legal matters are taken against the business, how black-label brands hold a 10% share of the market holding a threat to other business with the ability to charge lower prices and committing more shelf space to their own fruit juices and how important it is for business to follow customer trends as they hold the purchasing power. The report also compares and contrasts Boost Juice Bars and Spring Valley Juice marketing strategies, recommending that Boost Juice Bars continue on with their strong marketing mix and Spring Valley focus on their customer trends and target market. The report also recommends the industry swap to BPA free plastic bottles to better enhance their brand and health and safety of their consumers. Table of Contents 1. Introduction …………………………………………………………………………………3 2. Fruit Juice Industry Overview...
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