Market Strategy For Exporting Red Wine To China

2185 words - 9 pages

Tile pageExecutive SummaryExport is the business activities of selling good to a foreign country (Ackerman, 2000). Australia is one of the most famous wine producer in the world, the special position, climate and soil result in a wide diversity of wines, but its red wine market in Europe and US being matured in recent years.Winworld is an Australian company; the current plan is to export its wines into China. This report will outline the current cultural and market conditions in China and will summarize the factors that must be considered in order to achieve success when exporting wines. Meanwhile, the marketing plan will also be used on decision making about whether or not to entry the market. In this paper, the goal of global operations for Winworld will be to examine the current china red wine market and develop proper methods to expand the business in China.Company Description, Purpose and GoalsWinWorld was founded in 2009, and we have our headquarters in Melbourne and a branch office in Sydney. It has a fully integrated wine business model, which extends to include vineyards, bulk wine producing and boutique wine sourcing, packaging, marketing and exporting worldwide.The company's grape and wine supply is sourced from some of Australia's most diverse and highly sought after wine regions, including Clare Valley, Barossa Valley, Murray Darling, Riverland and the Limestone Coast, as well as other well-known regions in South Australian and South Eastern Australia. It wines are widely celebrated for their diversity and quality across the many price points.Marketing SituationAccording to annual statistical analysis and the prosperous economy trend of China, business opportunities emerge in China since it more opens to the world after joined WTO. Red wine demand of China tends to increase year after year. The following is the analysis of some aspects of the market.Regional and Country AnalysisThe economy in China has enjoyed growth of approximately 7% and a 10% reduction within the poverty level. The middle class has increased to roughly 350 million residents. (Brander and Spencer, 1998) With the median age of 25, this highly educated group has a great deal of disposable income and proves to be a perfect target market for Winworld Winery. A Wine and Food article reported that the wine trend will grow by 30% in the next five years, as China's new middle class grows and the culture becomes more modern, religious and social taboos regarding wine drinking have diminished. All these factors prove to be a favorable market in which to enter for an international firm not familiar with local customs and culture.Product and Organizational AnalysisWinworld Winery also conducted a product and organizational analysis to determine if the company is compatible to global expansion. Winworld Winery is a small, privately owned winery based in Melbourne. Australia. Winworld currently sells wine within Australian and is interested in pursuing overseas market.Winworld...

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