Transcript STRATEGIC MARKETING PLAN for Australian wine
STRATEGIC MARKETING PLAN for Australian Wine ABSTRACT • This project includes the selection of a product currently available in Australia and is planned to be marketed in New Zealand. • It explains a portion of the marketing strategic plan which includes• Selection of product and target market and • Information about target market. INTRODUCTION The product selected for this project is Australian wine whose marketers had designed a strategic marketing plan to promote it in New Zealand by using different strategies. Australia had designed a new marketing mix for its product by planning a new product, price and promotion strategies. Strategic Marketing Plan Particulars Product - Australian Wine Target Market - New Zealand Reason of selection – • In global wine market, people are shifting from basic to premium bottle wine. • The young consumers in the old world wine countries are becoming interested in new world wines. Continued….. Approach towards International trade One of the world’s most liberalized and flourishing free trade agreement has been designed between Australia and New Zealand for trading with each other. • • Opportunities – New Zealand provides a large size export market. It gives opportunities to develop mutual recognition. Continued….. Demographic Attributes – Population 4,076,140 Growth rate 0.99% Composition Ethnic groups Consumer Preferences People of New Zealand are THE major consumers of the red wines despite being loyal to the local white wines. Wines are very famous and well-accepted . Competitiveness of Australian Wine…. Strong market research. Expertise in Winemaking. Proficiency in technology utilization. Knowledge about the regional languages. Recruitment of consultant and an expert to handle exporting. Selection of a distributor, who has already sold the export material. Trade Environment Export Restriction Any good that has a 50% or more content from Australia can enter New Zealand without paying any duty. The products labeled at domestic level meet export requirements. Trade Policy Goods and services tax (GST) is applied at 12.5 per cent. The Customs authority of New Zealand collects the GST at the entry point. Marketing Environment Marketing strategy Progressive marketing strategy. Product can distinguish itself on the basis of pricing, quality or region. Product strategy Expanding product offer. Enhancing the number of volume brands. Differentiated product. Continued….. Pricing Strategy Competitive basis. Well supported by current level. Promotional Strategy Promotional pricing. Advertising in consumer magazines. Reviews in lifestyle publications. Wine testing. Other traditional marketing activities Difference between home and target market Reason of difference - Quality-conscious consumers. - Highly driven by the reputation of a brand. - Strengthening of New Zealand against the Australian currency. - Fierce competition from local brands. CONCLUSION The different strategies used by Australian wine industries can be very useful for them in tapping the market of New Zealand. There can be a significant increase in the sale of Australian wines if new strategic marketing plan is followed carefully. In New Zealand, the wine culture is very well developed and provides enormous opportunities to the Australian wine industry. References Australian Government: Austratrade. 2008. Retrieved May 12, 2008, from http://www.austrade.gov.au/Home/default.aspx Wine to New Zealand. 2008. Retrieved May 12, 2008, from http://www.austrade.gov.au/Wine-to-NewZealand/default.aspx Continued….. Australian Wine Sector: Media Briefing. 2007. Retrieved May 12, 2008, from http://www.wineaustralia.com/USA/LinkClick.aspx?fileti cket=0uzw2QA33DQ%3D&tabid=3833 Wine Gallery. 2005. Retrieved May 12, 2008, from http://www.winegallery.com/store/pc/viewCat_P.asp?idCategory=38 Hill, C. W. L.(2005). International Business: Competing in the Global Marketplace. Tata McGraw Hill.