The paper "Strategic Marketing Plan for the Penfold Bin 8 Wine in China" is a perfect example of a marketing case study. The Penfold Company is an established wine brewing company in Australia. The Company was established in 1844 and has ever since expanded its scope and influence in the global market, both in Australia and beyond. Among its many company products, is its Bin 8 wine (“ Penfold Company” , 2016). Due to the rising and increasing global market competition in the Australian market, there is a need to expand and increase the brand product in China.
This marketing plan illustrates the process through which the proposed wine products, Bin 8, are expected to be marketed. This includes the proposed marketing mix, promotional approaches, distribution channels, price positioning, and the associated risks respectively. 2.0 Marketing Mix in China In the development of a strategic plan and process through which a product is to be availed and marketed into a new market, it is imperative to develop the right marketing mix. As Richter (2012, p. 103) described it, a marketing mix comprises of the four main marketing elements that determine how a new product is introduced and pushed through a new market.
The four main elements are the price, place, product, and promotion respectively. This marketing plan evaluates the key marketing elements in the market. 2.1 Price The first aspect of the marketing mix process is the price element. In this case, a product price is a cost that the customers incur while purchasing the product in the market. In the determination of organisational product pricing strategies, two issues and aspects come to the fore. First, the overall product production cost should be evaluated.
This is the total cost of all the activities and processes involved in developing a new product. The second consideration aspect is the desired profitability margin in the market. Based on these two approaches, the proposed Bin 8 wine product will use the penetration pricing approach. 2.2 Place The second aspect is placed. In this case, place includes the physical location at which the proposed organisational outlets will be located. Based on the nature of the wine industry, the organisation will have its main locations in established retail and wholesale outlets across Beijing city. 2.3 Product In terms of the product aspects, the company will offer slow-brewed high-quality wine.
The key distinguishing characteristic of the proposed wine products in China is the exclusive use of Australian olives. In this case, all the products used will be Australian, a market renowned for its quality vineyards and olive products. 2.4 Promotion The final element in a marketing mix is the promotional element. This includes the process through which the organisational and brand products communicate and reach out to the market base. In this context, the proposed brand product will use advertisements on the mass media and social events sponsorship promotional tools respectively. 3.0 Promotional Approaches and Risks As already illustrated above, promotional strategies are the communicational approaches applied by an organisation to reach out to the customer market.
In the evaluation of key successful promotional strategies, McLeish (2011, p. 79) noted that a successful promotional strategy is one that incorporated the existing organisational capabilities and market characteristics. This marketing plan proposes the use of mass media advertising and social events sponsoring as the main promotional aspects.
On one hand, an evaluation of the strategy and organisational capabilities indicates a match. In this case, the Penfold Company enjoys economies and scale and thus has a high capital base and financial stability. Consequently, the venture has sufficient funds for supporting events sponsoring and mass communication strategies that are capital intensive. This means that the adoption of the strategies will not strain the company operations in China. Similarly, the organisation has a positive brand reputation in Australia for using the two market promotional strategies. Thus, this implies that the use of the strategies in China will be a mere extension of the Australian market, indicating the presence of the required skills and expertise in the venture respectively.
Paul, J., & Kapoor, R. 2008, International marketing: Text and cases, Tata McGraw-Hill, New Delhi
Kapoor, S. K., & Kansal, P. 2003, Basics of distribution management: A logistical approach, Prentice-Hall of India, New Delhi
Chen, G., & Hamori, S. 2014, Rural Labor Migration, Discrimination, and the New Dual Labor Market in China. (Rural labour migration, discrimination, and the new dual labour market in China.), Imprint Springer, Berlin, Heidelberg
McLeish, B. 2011, Successful marketing strategies for nonprofit organisations: Winning in the age of the elusive donor, Wiley, Hoboken, N.J
Richter, T. 2012, International marketing mix management: Theoretical framework, contingency factors and empirical findings from world markets, Logos, Berlin
Penfold Company, 2016, About Us. [Online] Available at: < https://www.penfolds.com/heritage-and-winemaking/history-timeline> [Accessed: 4th April 2016]