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The paper “ Market Opportunity Analysis on Australian Wine - Attractiveness of the Chinese and the United States Markets” is an engrossing version of the case study on marketing. Australia’ s wine and grape growing industries have grown remarkably since 1990 as a result of concerted efforts by the government and other stakeholders in developing export markets for Australian-produced wine. Currently, more than half of Australia’ s wine is exported to various countries throughout the world. Because of the Australian wine industry’ s exposure to the world market, continued growth and long term success rest on the industry’ s ability to maintain a keen awareness of current developments in the global market.

For instance, supply into the global market is expanding at a higher rate than the demand, a situation that is causing market prices of wine to decline. Low wine prices and the current supply-demand situation present critical challenges to the future development of the Australian wine industry (Pinney, 2007). Australia has good foreign trade relations with several countries and China has recently emerged as the fastest-growing export market for Australia and is currently the third-largest destination of bottled Australian wine.

Although Australian wine is the second-largest wine imported into China, the volumes are likely to decline owing to the fact that China is making efforts to make its wine industry more competitive in the global market. In fact, China is currently producing more wine than Australia, a situation which presents major threats to Australian wine exports to China (China Customs Bureau, 2009). On the other hand, Australia has maintained its strategic trade relations with the US for a long time. This has seen Australia maintain its wine exports to the US and the entire North American market.

However, Australian wine exports to the US have shown signs of decline because of two reasons. One of these reasons is that the US has in the last two decades moved to boost its domestic wine production capacity by encouraging more grape production. The second reason is that emerging wine producers such as New Zealand, Argentina, and South Africa are eying the US market thus presenting strong competition for the Australian wine industry. Situation Analysis of China’ s Wine Retail MarketMicro-Factor Analysis: Customer Analysis, Competition, And Product-Related FactorsIn the past two decades, China has risen to become one of the most important wine markets in the world offering both generous profits and high growth potentials.

By volume, China is currently the seventh largest consumer of wine in the world. Customer analysis of the Chinese wine market reveals that the market is divided by region, knowledge about wine brands and income level. In terms of knowledge, drinkers in cities and large urban centers are likely to consume imported wine than drinkers in rural areas (Austrade, 2009).

Similarly, high-income earners are major consumers of both domestically produced and imported wines. Accordingly, a conspicuous trend in China is that domestic wines (often low priced) are sold to individuals in the lower end of the pricing spectrum while imported wines are sold at the higher price end.  

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