Introduction As a new entrant into the Chinese wine market, AAA will need to adopt an informed, effective and aggressive marketing strategy to crackthis market which Veseth (2010) correctly presents as a formidable challenge for any prospective entrant. In terms of positioning of the AAA brand in the Chinese market the main considerations are consumers and competitors. Consumers seek value/quality and affordability/brand. An analysis of the market reveals that the current players excel at either one of these considerations but few score on both. AAA has its work cut out in catching up with the French and Spanish wine firms but through commitment to high quality and superb marketing AAA will seek to make considerable gains.
Another major consideration for AAA as it strategizes to enter the Chinese wine market is the attitude that the Chinese population will have on our brand based on their perception of Australia. According to Davies (2011), Australia has a positive image in the eyes of the Chinese especially in the wine industry. It has been demonstrated that the travel experience of the Chinese in Australia is directly associated with their thirst for Australian wine.
Hence, there is no negative attitude among the Chinese towards Australia that could have hindered entry. The Chinese market is big and attractive but quite difficult to crack (Veseth 2010). One strategy that AAA will utilise is balancing the Australian identity within our brand with a modified approach to connect with the Chinese culture for example through use of Chinese language and design in labelling alongside cooperating with local wine traders such as Wuliangye. Veseth (2010) argues that the Spanish have been successful in the Chinese wine industry through partnering with local producers in production and distribution. Promotion of our brand will be through a combination of traditional and alternative tactics to create an aggressive and effective strategy.
Liu and Murphy (2007) undertook an extensive research that established that poor awareness about Australian wine is one of the most important reasons behind Australia lagging behind the French and Spanish in this market hence necessitating focus on marketing. The target market is the large Chinese middle-income class. Advertisement, in-store displays and free public wine-tasting will be utilised to generate awareness on the AAA brand.
Properly planned public relations and commitment and contribution to environmental conservation will also be used to form long term relationships with Chinese market. Non-traditional methods will include product placement in Chinese pop culture and News programs. Online marketing will be enhanced through search engine optimisation to ensure that AAA dominates the first pages of web rankings. The Chinese government has previously been highly regulatory in product promotion but is now relaxed so long as brands adhere to requirements and observe best practice and ethics according to Trachtenberg (2011), which AAA will fulfil. AAA’s wine will be of the highest quality hence a skimming strategy will be adopted for pricing (Saxena 2009).
The firm aims at starting off with the perception of premium quality in the market which will be accompanied by high-end pricing. Veseth (2010) specifically indicates that lack of quality variety wines from Australia is the main hindrance to Australian wine efforts in China. AAA will present variety of the highest quality wine hence justifying the pricing strategy selected. The pricing objective is informed by the aims of is recouping the heavy costs that will be incurred in establishing the firm especially considering that it is an international establishment which is considerably capital-intensive.
Besides this, another objective is to ensure competition with the very best wines in the Chinese market. The main strategy of distribution will be business to business, involving retail bottle shops in well researched locations. Veseth (2010) indicates that the Chinese populace do not have a wine drinking culture as is present in regions such as Europe and America, hence targeting and differentiating with aim of developing niche markets is most effective where a business-business rather than business-customer strategy is most preferable.
Distribution through clubs and hotels in the main cities such as Shanghai will also be undertaken. Partnering with local wine firms will also generate distribution strategies and more outlets. Online selling to individuals, caterers and other interested parties will also supplement the main distribution strategy. References Davies, K 2007, China thirsts for Australian wine and travel experiences, Australian Trade Commission, viewed 8 October 2011, Liu, F & Murphy, J 2007, “A qualitative study of Chinese wine consumption and purchasing: Implications for Australian wines, ” International Journal of Wine Business Research, vol.
19, no. 2, p. 98-113. Saxena, R 2009, Marketing Management 4E, 4th edition, McGraw-Hill, Delhi. Trachtenberg, L 2011, Chinese government to rethink product placement regulations, Placevine, viewed 8 October 2011,. Veseth, M 2010, Cracking the Chinese wine market, The Wine Economist, viewed 8 October 2011,