...China wine market 1.1.2 Asia wine market SWOT Analysis Strengths—Huge background, High-quality products, K/A (Key Account)Customer communication system, Mystery of France. Weaknesses--The confusion wine market, how to make our brand become a well-known brands, how to open the sale channel Opportunities--Huge market demand, purchasing power &private consumption growth, Traditional viniculture present, the right distribution partners, the good advertising partners Threats--Aggressive producers, Domestic product, Consumer acceptance 1.2 China wine market general introduction As we all know, Asia market now is a new develop market, it is still confusion (the wine law, the regulation).So, we choice the focus market in Asia--China to enter, this will reduce the trouble of our market development. We should be aware that the Asian market, 95% wine consumption is face to the civilian population, only 5% high-end products sells to truly rich wine collector. Of course, with the further development of Asian economies, which 5% people will continue to expand. For the past few years, the maximum annual production of Chinese wine was about 30 million tons; it was less than 2% of beer output and 6% of Chinese liquor production, also it was only 1% of the world wine production, and the consumption per head was equivalent to France, Italy, Spain and other developed countries by 0.5%. China’s demand for wine will be reaching 600,000 tons by 2010, thus, the wine industry in China...
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...Global Wine Wars Perform a STEEP analysis to understand the general environment facing the global wine industry. How will the wine-producing countries/companies be affected by external factors? Social: There is a 20% drop in worldwide wine consumption but consumers demand more on premium wine (10 liters to 15 liters in EU) and less on basic wine (31 liters to 18 liters in EU). There is a decline in wine drinking culture, rise in importing countries, and growing demand in Asia markets. Figure [ 1 ]: Wine Consumption Per Capita Figure [ 2 ] World Wine Consumption 2002-2006 hectoliters (000) Technological: Change in the grape growing and wine making process from labor to specialize machinery and equipment. Other practices such as night harvesting, reverse osmosis, and trellis system also increase the quality and quantity of the grapes. Environmental: Environmental factors can greatly affect traditional grape growing and wine making because the quality and quantity of the wine can be affected by climate such as temperature, rainfall, humidity, and such. While the new practice of wine making can divert such effects by sourcing grapes and wines from the unaffected regions. Economic: While the economic downturn can make the basic wine consumers look for cheaper wine, it has little effects on the premium wine and upper segment. Political: One of the biggest factors that affects the global wine industry. Rules and Regulations in EU caused the region more problems...
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...MarketLine Industry Profile Wine in China August 2013 Reference Code: 0099-0800 Publication Date: August 2013 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED China - Wine © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 0800 - 2012 Page | 1 EXECUTIVE SUMMARY Market value The Chinese wine market grew by 20.7% in 2012 to reach a value of $22.7 billion. Market value forecast In 2017, the Chinese wine market is forecast to have a value of $44.9 billion, an increase of 97.8% since 2012. Market volume The Chinese wine market grew by 18.6% in 2012 to reach a volume of 1,564.1 million liters. Market volume forecast In 2017, the Chinese wine market is forecast to have a volume of 2,909 million liters, an increase of 86% since 2012. Category segmentation Still wine is the largest segment of the wine market in China, accounting for 96% of the market's total value. Geography segmentation China accounts for 54.2% of the Asia-Pacific wine market value. Market share Yantai Changyu Group Company Limited is the leading player in the Chinese wine market, generating a 21.9% share of the market's volume. Market rivalry The Chinese market for wine is fairly fragmented with numerous players present. China - Wine © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 0800 - 2012 Page | 2 TABLE OF CONTENTS Executive Summary .......
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...Exporting Oregon Wines to SE Asia With the increasing popularity of Oregon wines, especially its Pinot Noir, state wineries are looking abroad to new markets to expand their reach and increase sales. One of those new emerging markets is Southeast Asia, which consists of Vietnam, Thailand, Singapore, the Philippines, Indonesia, and Malaysia. For the purpose of this paper I have left out Laos, Burma, and Cambodia because of import restrictions and poor demand for imported wines. In 2010, Oregon saw an increase in the number of wine cases exported to 59,537 from 35,664 in 2009. As the fourth largest wine producing state, Oregon is still far behind California, the largest US exporter of wines at 90%. Still the emergence of New World wines, like those in Oregon, continues to increase around the world, and SE Asia is a new and expanding market that has taken a liking to these wines, especially among the affluent. Based on research, this paper will break down by country the perceptions, sociocultural acceptance, competition, taxation and restrictions, distribution channels, and marketing strategies that could be used to introduce Oregon wines. Vietnam In Vietnam, wine is beginning to make inroads with the local peoples in a country where beer and spirits have been the mainstay since the Vietnam War. It saw an increase in US wine imports of 234% between 2010 and 2011 accounting for over $18 million in sales. Most of the wine consumed in the country is by foreigners...
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...position of Schultz Wines Limited a. What type of organization is Schultz Wines Limited? Schultz Wines is a listed Australia company. It was established in 1840s by one of the founding winemaking families of Barossa Valley in South Australia who had immigrated from Germany. It has been run by the fifth generation, Frederich Schultz, since 1983 when his father retired. The company was listed on the Australia Stock Exchange in 1996. b. What industry, product segments/markets does Schultz Wines operate in? Schultz Wines ranked 7th among the Australian wine producing companies. Core activities cover harvesting, crushing, fermentation, bottling and distributing. It produces a diverse range of high quality premium varietal wines including red and white table wines, sparkling wines and fortified wines which are sold in both domestic and export markets. (Schultz Wines are distributed in Australia by a well respected, family owned wine merchant, and export wine sales are distributed through well established wine merchants in UK, Continental Europe, as well as North American, New Zealand, Asia and the Pacific region.) Schultz also achieves its sales through the cellar door sales and The Schultz Cellar Club mail order. c. What is the current life-cycle position of the industry? The Australian winemaking industry is at the mature stage of its life cycle. This is demonstrated by the low and medium average growth rate of sales in the industry as shown in Table...
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...Chilean Wine Industry’s National Competitiveness Using Porters National Diamond. Part 1: Porters National Diamond model is used to analyse a firm’s ability to compete in a home market, their ability to compete in a foreign international market and to recognise the particular country and market within that, which a firm would be suited to expanding into. In doing so it analyses the viability of a nation to compete in any given market. The model is described by Ozlem Oz (1999) as “a dynamic system which all elements interact and reinforce each other”. The elements to which this refers are; Factor Conditions, Demand Conditions, Firm Strategy, Structure and Rivalry, and Related and Supporting Industries. These main elements are supplemented with Political and Chance factors which influence all of them. The model explains the relationship between related industries and how this helps successful development. Porter believed that a healthy competition would drive the firms to be innovative. With a competitive market, people have more choice and this provides great market research availability to find out what people want. Fig.1, Michael Porter, Porter’s National Diamond (1990) Throughout this report an analysis of the Chilean wine industry’s competitiveness at an international level will be carried out. Care will also be taken when considering how well the company in question will be suited to expanding into this market. The diagram above, figure 1, displays...
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...Schultz Wines Limited: Pre-seen Information 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)...
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...Australian Wine Industry Rebuttal Good afternoon ladies and gentlemen, my name is Justin Bardwell and I am here representing Group 4 of JBS Swift & Co. and we are going to present the rebuttal to Group 10’s Australian Wine Industry case analysis. My fellow group members who have aided in preparing this presentation are as follows:… We would first like to point out the case provided by Harvard Business School mainly describes the New World vs. Old World and the Global Wine Wars of 2009. While the case analysis provided by group 10 mainly focuses on the Australian Wine Industry, which is only one example of the New World wine production country. So how is everyone doing on this beautiful Wednesday afternoon? Good, good. I know none of you want to be here anymore than I do, so we plan on making this as short and sweet as possible. With that, let’s go on ahead and get started. What we have prepared for you all today is a brief rebuttal to Group 10’s Australian Wine Industry case analysis. Before we begin let me set the record straight by saying that Group 10 did an outstanding job with their analysis of the wine industry within Australia. They did an excellent job incorporating Porter’s 5 forces model and the Blue Ocean strategy throughout their analysis. With this in mind, my fellow group members did find a few areas that we believe we should shed light on today. Such areas that our group found were the goals and constraints, as well as the central problem and the alternatives...
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...International Marketing Marketing Wine in the Chinese Market Executive Summary China’s demand for Western wine has rapidly increased. This has created a market opportunity for high end, quality wine companies from Australia to export their products to China. The product that will be focused on is Glandore Wine from the Hunter Valley. The report will focus on exporting this product into the Chinese market. There should be a strong focus on building brand reputation and maintaining long-term business relationships. There are multiple entry types into foreign markets yet Chinese regulations limit the mode of entry. The recommended mode of entry for Glandore wines is a Joint Venture. The decision between product standardisation and customisation is an important aspect of strategic decision-making. It is recommended that Glandore does not customise their core product of wine, however it is recommended that other product attributes are customised to appeal to the Chinese market. When promoting Glandore wine in the Chinese market there should be use of advertising, public relations, sales promotion and personal selling. Table of Contents Executive Summary ……………………………..…. 2 1. Introduction ………………………………………………... 4 2. 2.1 Market Entry………………………………………………4 2.2 Recommendations ………………………………………5 3. 3.1 Product Standardisation and Customisation ……..…..7 3.2 Recommendations…………………………………….….7 4. Promotion in China 4.1 Push Strategies………………………………………...
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...ANALYSIS 3.1 The Business Environment (PEST) India economy |Population: |[pic] | |1,173,108,018 (July 2010 est.) | |India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic | |liberalization, including reduced controls on foreign trade and investment, began in the early 1990s and has | |served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's | |diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of | |modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, | |but services are the major source of economic growth, accounting for more than half of India's output, with | |only one-third of its labor force. India has capitalized on its large educated English-speaking population to| |become a major exporter of information technology services and software workers. An industrial slowdown early| |in 2008, followed by the global financial crisis, led annual GDP growth to slow to 6.5% in 2009, still the | |second highest growth in the world among major economies. India escaped the brunt of the global financial | |crisis because of cautious banking policies and a relatively low dependence on exports...
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...Global Wine Wars 1. How did the French become the dominant competitors in the increasingly global wine industry for centuries? What sources of competitive advantage were they able to develop? Where were they vulnerable? France had been producing wine for centuries and has been known for its premium wines. When the wine production was a labor intensive job they were able to create efficiencies in cultivation and increase farm outputs leading to a greater production and more profitable business. In the recent times the French wine industry worked in tangent with government regulations to differentiate their wines e.g. they categorized their wine yards into five different categories based on quality of wine produced. The government’s strict policies to control the quality of wine produced led to the AOC laws that defined rigid boundaries and rigid standards for vineyards and wineries. This worked as an advantage for the industry as it segmented the wine market making it easier to identify wines and also prompted confidence amongst the consumers that wine are of high quality. This allowed the process of choosing wines easier and helped the customers to sort through the complexity of the highly fragmented market. The French wines industry was vulnerable for several reasons, firstly the restrictions and rigid standards that signified quality for the industry also led to lack of innovation and efficiencies within the industry and left them unable to compete with new world...
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...stay one of the leaders on the prestigious market of wines. China seems to be an alternative to Château Margaux. There is a keen interest in food and wine in China. The consumption of wine is massive and the development of the wine industry could be very promising. Indeed, Paul Pontallier, general manager of Château Margaux, said China is the world's fastest ever growing wine market and the company aims to position Château Margaux at the very top. What we plan is to position Château Margaux as a luxurious wine leader in China. For future, what we expect is that China represents Château Margaux’s second largest market the first next year and may become the first one from the two next years. Moreover, Gao Ming, vice president and Shanghai general manager of Ruder Finn Asia, claims that China is looking for prestige and luxury, that’s why Chinese luxury consumers would appreciate such a prestigious brand. (By: Erica Ng, China – Shanghai, Published: Aug 03, 2010) Château Margaux will keep the high quality and wine characteristics that make its famous reputation. It has to keep its French image, so like this it will be associated to French values and gastronomy, which are really seeking by rich Asiatic people. Some will buy because they are connoisseurs, others because it is a French popular wine. In addition, it is an inaccessible wine in China, really rare because mainly present in France. That’s why developing this wine will be a “boom” for Chinese connoisseurs. So firstly...
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...Name Professor Course Date History of wine Introduction The earliest evidence of production of wine was found in Georgia and Iran. The altered conscious that is produced by wine is considered to be religious. The Greeks worshiped Bacchus and Dionysus, and the people of Rome carried on the cult. However, the consumption of wine was one part of practices of Jewish people even during the biblical times. In the last supper, the wine was used in commemorating Eucharist thus becoming a Christian church essential. Muslims forbade consumption as well as the production of wine. However, during the golden age, the Muslims were using wine for industrial purpose, for example in perfume production. Further, the distilled wine was used for the medicinal purpose (Shapin, 12). The information regarding the first wild grapevine cultivation is still uncertain (Brown, 145). Grapes grow in Azerbaijan, Armenia, Georgia, southeastern and coastal Turkey, the northern Levant and northern Iran. The fermenting of wild grape was easier due to the development of pottery in the Neolithic period. One of the oldest wineries discovered was in vayot dzor, in the Arena- 1 cave. In the site, there were fermentation vats, cups, jars and a wine press (Brown, 145). Wild grapes vines and seed were also found. In early Bronze Age, there were plenty of domesticated grapes in the near east. Further, there is an evidence of wine production in Egypt and Sumer (Shapin, 12). According to McGovern...
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... The main purpose of this report is to analyze the beef and wine markets in South Korea with two theories of consumer behavior as following, social classwhich include the income of different levels of class and their behavior toward beef and wine. In addition, in this report, the attitudes of consumer will also be taken into account as the main focus to evaluate the points of marketing strategy and how South Korean consumers buying behavior different from Australian. With social class and attitude these two aspects of consumer behavior can provide the Australian beef and wine markers the better information about their target market and to understand how they response to the importing products. Background The economy of South Korea is ranked eleventh in the world and third among Asian countries, thus unquestionably South Korea consumer has a certain buying power and might be a potential market for Australia. From Department of Environment and Primary Industries 2012, with a GDP of $1.46 trillion (USDA, 2011), the economy of South Korean was ranked 13th largest in the world in 2010. Approximately 6.1% economy inclined in 2010 and it brings per capital of buying power about $ 30,000 USD (CIA, 2011). The demand for the healthy products and with high quality food is increasing in South Korean market. Owing to the climatic reasons and the capacity of the land is limited in South Korea to expand the farms and wine vineyard thus Australia has been one of main exporter to South...
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...Contents 1.0 Introduction 3 2.0 Economic Development 3 2.1 Economic Development 3 2.2 Demographic Change 4 3.0 Technological Developments 4 3.1 Air Travel 4 3.1.2 Car Industry Developments 4 4.0 Hospitality and Tourism Industry Developments 5 4.1 Hospitality Industry Developments 5 4.1.1 The Beverage Industry Changes 5 4.1.2 The food industry 6 4.2 The Tourism Industry 6 4.2.1 The Baby Boom Industry 6 5.0 The Guest Host Relationship 7 6.0 Conclusion 7 7.0 References 9 8.0 Appendices 11 8.1 Components of Population Growth 1956-2006 11 8.2 The Snowy Mountain Hydroelectric Scheme 11 8.3 Population Growth Since 1945 12 8.4 Fares and travel between Perth and other Australian capitals by air, 1945 12 8.5 Number of Registered Cars and Station Wagons from 1919-2003 12 1.0 Introduction This research report will look into the economic development after World War II producing an increased market of business travellers and tourism in Australia. It will also outline some of the technological, social and cultural impacts on Australia after this time, which also led to the increase in the tourism industry. This report will also discuss how the baby boomers now have a large affect on the tourism industry today. The Guest Host Relationship between tourism and hospitality guests and supplier will also be discussed. 2.0 Economic Development 2.1 Economic Development In the months prior to Australia going to war, the economic conditions had worsen...
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