Essays on Penfold Wine Company Marketing in China Case Study

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The paper "Penfold Wine Company Marketing in China" is a great example of a marketing case study. The report offers a marketing strategy analysis for the Penfold (Grange) Wine Company. First, the report offers an environmental analysis that includes a review of both the external and internal environments. As such, an external market environment through a PESTLE analysis tool indicates a favourable political environment, a growing economy, increased technology growth, changing social structures, all which offer opportunities in the wine industry growth. On the other hand, strict regulation and environmental control, as well as a rigid high power distance culture, are bound to increase the cost of doing business, posing a major threat.

Moreover, a market analysis illustrates the presence of a few companies. Similarly, an internal analysis, although illustrating weakness in lack of enough finances demonstrates strengths in the presence of a strong culture and a stable financial base in the long-run period. Based on these parameters, it develops three strategic objectives aimed at increasing market share, revenues and expanding across China respectively through an FDI internationalization process. The report develops a strategic marketing program with three main components; the marketing mix, evaluation, and the implementation aspects respectively.

On one hand, under its proposed marketing mix, it will use product quality and affordability as its main product mix aspects, as well as a penetrative pricing approach for the growing market base. This will be supplemented through a mixed offline and online place element and online marketing elements respectively. Moreover, with respect to evaluation, the report recommends the use of the benchmarking approach where annual targets will be set and evaluated to effect proper adjustments of the targets and the actual results differ.

Finally, with regard to the implementation process, it identifies the resources required such as a large financial base and relevant Chinese market skills. Moreover, the implementation process could face challenges in the availability of finances in the short term period as well as changing market trends. Consequently, this recommends investment in market changes analysis as well as the use of financial partners such as financial institutions to cover the short term financial shortage challenge respectively. 1.0 Introduction The rising market competition in the Australian market has necessitated the internationalization to new foreign markets in the wine industry.

In this case, the Australian market's reputation for wine brewing has posed a huge competition risk for domestic customers. Hence, the Penfold Wine Company, in a bid to internationalize its Grange wine product, opted to adopt an FDI (foreign direct Investment) approach. The FDI aims at targeting the Chinese wine industry and as such expands and increases the wine brand sales volumes and market profitability into the future. In the report analysis, a number of factors will be addressed.

Some of the common terms in the analysis will include the market and environment. On one hand, wherever the term market will be used, it will be implying the customers and the other stakeholders that comprise a product demand and supply forces movement. On the other hand, the term environment will be used to describe the external and internal factors that impact the organisational marketing strategy. This report offers a critical analysis of the proposed market internationalization strategy. First, the report offers an environmental analysis, evaluating the external macro-environmental factors, the industry situation, as well as the company internal factors that may impact on its marketing approach.

Secondly, it offers a critical analysis and description of the proposed marketing plan and approach into the new market.


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