...CASE STUDY AUSTRALIAN WINE INDUSTRY 1. Identify Company’s (Witchmount Estate) objectives. [pic] Corporate - To be one of the top 3 wine estates in Victoria within 5 years. - Produce well known varieties of wine, such as, Chardonay, Sauvignon blanc, Shiraz & Cabernet sauvignon. - Develop new varieties like Pinot Gris. - Expansion & development of the winery, by building new modern wine manufacturing & tasting facilities. Build new restaurant. Build Conference and accommodation facilities. - A more recognisable logo “W”. - Wine produced to be divided into separate lines, and to sell in different price categories to cater for a wider market, pricing to be below & above $20 price point. Marketing - On-site and in the local community - Invite well known Australian performers to perform concerts within the winery. Advertising - Local media (newspapers & radio) within 20km radius. - Industry magazines - Conferences - Festivals - In other wine regions of Victoria - The closet winery to Melbourne CBD • Develop relationships with City hotel concierges • Offer their patrons Wine tasting package, Tour to the winery for a meal and wine tasting, with buses arranged by Witchmount to transport patrons. 2. Define the problem ...
Words: 2449 - Pages: 10
...Introduction to Industry & Companies The U.S. Wine Industry In 2008 the United States was the world’s third largest wine market by unit volume, behind France and Italy, and the largest based on dollar value. Consumption had grown at a compound annual rate of less than 4% over the past decade, and analysts expected annual long-term growth of not more than 3%. Table wine was divided into three segments: basic (jug), popular premium, and super/ultra-premium. Basic represented about 50% of market volume, and consumers tended to buy on price. Popular premium (35%) was purchased based on both price and brand. Superpremium was bought based on brand and quality. Winemaking was capital-intensive: It required land acquisition and vineyard development in addition to large investments in inventory due to lengthy storing and aging requirements. California accounted for over 90% of U.S. production volume, and 75% of U.S. consumption was supplied by domestic wines. Since the mid-1990s, the number of California wineries had doubled to 2,900 and the number of California acres devoted to red wine grapes grew by nearly 90% (acres devoted to white wine grapes grew more slowly). U.S. producers also faced tough competition from imports, which were growing faster than consumption of domestic product. Several years of favorable weather increased crop yields and produced record grape harvests in California. A global oversupply of wine exacerbated the problem. The “wine glut,” combined with economic recession...
Words: 2473 - Pages: 10
...Executive Summary Chateau de Margaux is one of the world’s most renowned premium wine brands for many decades. Their wine offerings include only the first-growth and the second-growth wines. The company been profitable and is considered a very highly reputable and successful premium wine brand from the region of Bordeaux, France. Being successful and profitable often bring up questions like, how can the company do better? With the increasing demand for wine around the world and the increase of number in new wine producers around the world with exceptional potential, could the Chateau de Margaux still be competitive in the future? What are the possible ways for this company to expand and what are the pros and cons of each? In this research paper, we examine the situation of this company, the wine market international viewpoint, and the domestic influence of the wine industry and tradition in Bordeaux. With all the information and data that we researched and analyzed, we were able to locate the problems of the company. In turn, we came up with objectives for the company to fulfill in order to solve all of the problems that arises and to increase profit, increase their skills of today’s new world marketing, increase their knowledge of the consumers and the market, and capture new market opportunities. We come up with a new business model to expand the Chateau de Margaux Company and to help this company fulfill these objectives. The new business model is called the international...
Words: 2983 - Pages: 12
...OPPORTUNITY WEAKNESS STRENGTH ANALYSIS (TOWS) Page 17 h. PROBLEM STATEMENTS & POTENTIAL CHALLENGES FACED Page 18 E. INTERNATION ENTRY SELECTION Page 19 F. OVERACHING STRATEGY SELECTION Page 20 G. MARKETING MIX PROGRAMME DEVELOPMENT Page 23 i. PRODUCT j. PRICE k. PLACE l. PROMOTION H. IMPLEMENTATION & CONTROL m. RECOMMENDATIONS & CONCLUSION Page 27 References & Appendix Page 28 A. EXECUTIVE SUMMARY Any business which sets its eye on the Indian market understood the fact that selling its product in such a big country is not easy. China, India, Brazil, these emerging marketing are constantly being target as business people alike know that these market are extremely attractive. The fact that wine growth rate was at 20% annually, India in its own way became an attractive market for Wine producers and exporters. Opportunity thrives throughout urban cities of India, Mumbai, New Delhi and Banglore. However, risk such as government protectionism regime of alcohol control and complex layer of taxation policies with an underdeveloped distribution chain that threatens the wine market. Most importantly the Indian population is largely unfamiliar with Wine and where it stands among the Indian culture. B. INTRODUCTION Country Overview Second to China, India stands on the planet the second most populated country; its population and consumer based is...
Words: 4461 - Pages: 18
...new red wine brand that will be introduced in Singapore. The brand is a unique and high quality red wine brand that meets the growing preference of consumers. It will be distributed to several hotels, restaurants, supermarkets, and wine boutiques/shops that are located in the commercial business districts of the city-state. The brand is managed and owned by a group of wine-lover businessmen who have tremendous experienced in business administration, marketing and sales management and customer service. The owners are now looking for additional investments in order to capitalize the project well. The company has already made several negotiations with successful business distributors in Singapore. The company is confident to compete with many large distributors because it is closely working with top-notch suppliers and manufacturers who are known as wine experts or cellar masters. The target market is the Generation Y or the millennial because it is 77 percent of the population. This group also consumes wines at a faster and higher rate. The sales forecasts for the New Australian Company begin with $700,000 for the first year, and this will increase to 50 percent ($1, 050,000) in the second year, and 60 percent ($1,680,000) in the third year of operation. The company will be expecting a profit margin of 30-40 percent, and at least 25 percent return of investment in the first operational year. The company wants to change the consumer’s perspective about red wines. In particular...
Words: 1216 - Pages: 5
...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)...
Words: 8694 - Pages: 35
...Global Wine War 2009: New World versus Old “We have the people, expertise, technology and commitment to gain global preeminence for Australian wine by 2025. It will come by anticipating the market, influencing consumer demand, and building on our strategy of sustainable growth.” — Sam Toley, CEO of Australian Wine and Brandy Corporation. “By phasing out the buyback of excess wine and increasing incentives for farmers to uproot their vines, the EC reforms will only bring in the New World’s agro-industry model. We need to protect the age-old European model built on traditional vineyards.” — Jean-Louis Piton, Copa-Cogeca Farmers Association. In 2009, these two views reflected some of the very different sentiments unleashed by the fierce competitive battle raging between traditional wine makers and some new industry players as they fought for a share of the $230 billion global wine market. Many Old World wine producers—France, Italy, and Spain, for example—found themselves constrained by embedded wine-making traditions, restrictive industry regulations, and complex national and European Community legislation. This provided an opportunity for New World wine companies—from Australia, the United States, and Chile, for instance—to challenge the more established Old World producers by introducing innovations at every stage of the value chain. In the Beginning1 Grape growing and wine making have been human preoccupations at least since the times when ancient Egyptians and Greeks...
Words: 8224 - Pages: 33
...9-910-405 AUGUST 13, 2009 CHRISTOPHER A. BARTLETT Global Wine War 2009: New World versus Old “We have the people, expertise, technology and commitment to gain global preeminence for Australian wine by 2025. It will come by anticipating the market, influencing consumer demand, and building on our strategy of sustainable growth.” — Sam Toley, CEO of Australian Wine and Brandy Corporation. “By phasing out the buyback of excess wine and increasing incentives for farmers to uproot their vines, the EC reforms will only bring in the New World’s agro-industry model. We need to protect the age-old European model built on traditional vineyards.” — Jean-Louis Piton, Copa-Cogeca Farmers Association. In 2009, these two views reflected some of the very different sentiments unleashed by the fierce competitive battle raging between traditional wine makers and some new industry players as they fought for a share of the $230 billion global wine market. Many Old World wine producers—France, Italy, and Spain, for example—found themselves constrained by embedded wine-making traditions, restrictive industry regulations, and complex national and European Community legislation. This provided an opportunity for New World wine companies—from Australia, the United States, and Chile, for instance—to challenge the more established Old World producers by introducing innovations at every stage of the value chain. In the Beginning1 Grape growing and wine making have been human preoccupations at least since the...
Words: 8880 - Pages: 36
...Scientific Article DALAT WINE: CHALLENGES IN ESTABLISHING THE NATIONAL WINE BRAND POSITION IS STILL YEARS AHEAD -*Ngo Binh, MA. in Marketing Bui Thi Lan Huong, PhD. I. COMPANY HISTORY 1.1 Wine manufacturing traditional in Dalat (Vietnam) Dalat wine has been popular in Dalat, an attractive city located 1500 m above sea level on Langbian high lands. For long time ago, Dalat wine has been produced traditionally by local producers from blackberries (dau tam). Traditional wine makers in Dalat grow themselves dau tam at Bong Lai area. It is reportedly that the first wine producer was Lafaro, a local company founded by Nguyen Huu Duc in 1974. This company imported a new variety of dau tam to produce its wine. Unfortunately, the company stopped to operate in 1975. Nguyen Chi Man, a 80-year-old man, who did distribute this wine at that time, asked the company's owner this variety of mulberry' seeds to grow, then to make wine for his own consumption and later on for his small business in Dalat. Since then, other traditional wine makers follow him to open wine factories and mulberry plantations, especially in Bong Lai. Because of their small scale, they did not build up particular brand name for their wine. Dalat wine has been considered effectively as a “geographical indication”. Dalat wine has been consumed mostly by Dalat residents. The mind climate of Dalat is the favorable place for consuming red wine, especially in traditional holidays. According to Nguyen Trong Anh Dong, Vice-Secretary...
Words: 7353 - Pages: 30
...“Wine has been with us since the beginning of civilization. It is the temperate, civilized, sacred and romantic mealtime beverage”- Robert Mondavi 6000 B.C- is the time when, Mesopotamians first began to produce Wine. Since then Wine is playing an important role as enjoyable, romantic and authentic beverage for the people of all the classes. As the centuries passed, Europeans introduced their Wine making techniques to the rest of the world including America, Australia and South Africa. 1966- To become the first winery in California to produce premium Wine brands that would compete with the other premium wine brands of the world, Robert Mondavi founded the RMC Winery. With the clear strategy of gaining high reputation in premium wine segment, RMC at very inception align its business plan with its competitive strategy. As to produce limited quantity of super to ultra premium wines using high quality grapes, this helps them to build diversified brand portfolio particularly in price points and niches premium Wine market. Again as a part of their competitive strategy RMC lead the Wine industry in several process innovation and operational improvements including gentle grape handling, cold fermentation, stainless steel fermentation tanks and Oak barrel aging. In 1972 Los Angeles Times recognized RMC’s Cabernet Sauvignon as the best Wine produced in California. At marketing front to stimulate demand, RMC took some notable steps like Tours of Winery, Training sessions at fine restaurants...
Words: 1530 - Pages: 7
...2011-2012 State of the Wine Industry Dr. Rumack: You’d better tell the Captain we’ve got to land as soon as we can. This woman has to be gotten to a hospital. Elaine Dickinson: A hospital? What is it? Dr. Rumack: It’s a big building with patients, but that’s not important right now. The 1980 spoof classic Airplane was a critical success, well, it was if you didn’t listen to the critics, but that’s not important right now. The movie introduced us to the lighter side of long-time character actor Leslie Nielsen who played the part of Dr. Rumack. Nielsen, who passed away in November of 2010 followed that “hit” with forgettable roles in The Naked Gun series, The Scary Movie series, and Police Squad. I think we should now pause to remember just what Leslie meant to each of us … OK that’s enough. Maybe that’s not important either. Written By Rob McMillan Founder, Wine Division 707.967.1367 rmcmillan@svb.com APRIL 2011 1 The movie Airplane was about a flight where both pilots died of food poisoning. Fortunately, the plane was carrying our reluctant hero Ted Striker. A former combat pilot who had lost his mojo to fly, Ted along with his lost love interest Elaine Dickinson, together find a way to land the plane and save the day, thus triumphing over their own fears and personal tragedy. Too bad about the pilots, but that’s not important right now. What is important is Airplane is our canvas for painting a picture of the wine business this year with all of the ups and downs...
Words: 13113 - Pages: 53
...STRATEGIC DILEMMAS OF A SMALL MARKET PLAYER: THE CANADIAN WINE INDUSTRY Judith J. Madill Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2600 Ext. 8014 Fax: +1 (613) 520-4427 e-mail: Judith_Madill@carleton.ca Allan L. Riding Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2394 Fax: +1 (613) 520-2363 e-mail: al_riding@carleton.ca George H. Haines, Jr. Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2600 Ext. 7487 Fax: +1 (613) 520-4427 e-mail: george_haines@carleton.ca Abstract This paper undertakes an analysis of the strategic situation of the Canadian wine industry. A very small player by world standards, Canadian wineries face intense and intensifying competition within the domestic market. The demand side of this market is dominated by a small number of large provincial monopoly retailers. The supply side comprises five substantial firms that account for ninety percent of total wine production and a large number of very small wineries. The Canadian competitive environment is characterized by strong historical reputations of (and consumer preferences for) Old World wines, economies of scale and technology associated with New World wines, (at best) stable per capita wine consumption patterns, rapid increases in both the number of domestic wineries and land under viticulture...
Words: 9606 - Pages: 39
...increasingly global wine industry for centuries? What sources of competitive advantage were they able to develop? Where were they vulnerable? By the Christian era, wine became part of the liturgical services and monasteries planted vines and built wineries and the European nobility began planting vineyards as a symbol of prestige, competing in quality of wine they serve on their table, i.e. start of premium wine market. French wine producers became the dominant competitor as a result of four reasons. First, their geographic and climatic features played significant role. As France is in the middle of Europe culture with suitable climate and soil condition for harvesting grape, had accrued first-mover advantage and established its place as the dominant competitor in the global wine industry. Second, they became the first high-quality wine market and gained a lot experience. Especially, the negociants traded wine between France and other countries and this worked as word-of-mouth effect, increasing the reputation and dominance of French wine. Third, they used the latest innovations such as mass production of glass bottles, the use of cork stoppers and pasteurization. These innovations increased the stability and longevity of wine which allowed the transportation of wine to distant places, and birth of global wine market. Lastly, the government support made significant effect on the reputation and improvement of French wine industry. Government controlled the wine production and quality...
Words: 1737 - Pages: 7
...CASE REPORT: Global Wine Wars: New World Challenges Old (Harvard Business School Case # 9-303-056) NMI 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 to support their exports? Where were they vulnerable? French wine makers also face challenges that are not internal to the industry. For instance, France lost market share in the United States due to informal boycotts in the wake of the Iraq war. The rise of the euro against other currencies, such as the 30% increase relative to the dollar in the last few years, has put French wines at a comparative cost disadvantage. But consensus among experts is that the primary threat to the French export market is internal to the industry: the inability of the appellation system to appeal to what is becoming a global way of understanding wines (Business Report, 2004). France is the largest overall producer of wine, at 5.3 billion liters of wine in 2001, 20% of world production. France has traditionally set the standard for quality wine as well as defining these standards. French viticulture laws mandates four levels of quality as 1) Appellation d’Origine Contrôlee (AOC) 2) vins délimite qualité supérieure (VDQS) 3) vins du pays and 4) vins du table. French wine makers also face challenges that are not internal to the industry. For instance, France lost market share in the United States due to informal boycotts...
Words: 1180 - Pages: 5
...The Tunisian Wine industry In 2013 the world wine consumption stood at 238.7 mhl, this was a decrease of 2.5 mhl in comparison to 2012. “The global wine industry has seen an excess of 600mn unit cases (almost ¼ of global consumption) in 2004, reduce to just 1m unit cases in 2012” (The Global Wine Industry, 2013). History of wine in Tunisia There are a lot of comparisons made between new world wines and old world wines. When discussing old world, this refers to wines made in countries that are considered the birthplaces of wine. Some of the countries that are Old World include: France, Spain, Italy, Germany, Portugal, Austria, Greece, Lebanon, Israel, Croatia, Hungary and Switzerland. New world include the following countries U.S., New Zealand, Argentina, Chile, Australia and South Africa. In 1881, the French conquered Tunisia, and brought along knowledgeable and experienced wine makers. After this large scale wine production began in the country. Many years after, Tunisia gained independence and although the wine production continued, a lack of expertise caused production to decrease (Tunisia tours, 2014). The climate in Tunisia is significantly influenced by the Mediterranean. The winters are wet and the summers are dry, which creates a prosperous environment for wine making. The type of grape variety that are planted in Tunisia are also hugely influenced by the French involvement. Market Entry Modes There are certain factors that influence foreign entry modes. Industry...
Words: 448 - Pages: 2
