Essays on Wine Industry in Hong Kong Case Study

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The paper "Wine Industry in Hong Kong" is a great example of a Marketing Case Study. This report is a marketing plan for the proposed Penfold Company investment in the Hong Kong wine industry. The report evaluates the Company's internal resources through a SWOT analysis and establishes that the corporation has the capability to venture into this market. Further, a porter’ s five forces analysis establishes that the market is bound to remain competitive and thus a need to establish strategic approaches in the market. In its analysis, the report establishes that the market has high market consumers as among the new entrants.

Thus, this study recommends that the organisation should target the new entrants’ market segment. An evaluation of the forecasted organisational market share positions the organisation at an estimated 5.6%. A marketing mix analysis on the organisational venture establishes that social media promotion, direct distribution channels as well as development of unique market products are among the key organisational success factors. Further, the marketing mix recommends increased customer services as well as the adoption of a low pricing strategy.

In addition, the report recommends an implementation span of five years to allow for the development of appropriate infrastructure. Finally, in order to evaluate the strategy and venture success, the report recommends the application of both the benchmarking and forecasted and actual benefits analysis tools. The Hong Kong wine industry is an attractive venture for multinational wine organisations. The market is currently classified as a major wine consumption market in the Asian region. As such, Penfold Company, a multinational wine company in the Australian market, seeks to venture into this market.

In order to develop an appropriate marketing plan, it is imperative to conduct and evaluate the organisational internal analysis. This is conducted through a strength, weakness, opportunities and weakness (SWOT) analysis as illustrated under appendix 1. A strength analysis on the company is established on its focus on the production of the red wine brand since the end of world war 11. This business model is in congruence with the Hong Kong consumer demand trends (Penfold, 2010). The economy, as established under the market segmentation section, is driven by an increased demand for the red wine products.

Consequently, this offers the organization a market strategic advantage with the potential for increased demand and revenues. However, the presence of other established competitors in the Hong Kong market serving the red wine brands serves as the organizational weakness. Moreover, the presence of increasing earning levels in the market presents the organization with growth potential as the Hong Kong consumer purchasing power increases. Finally, a threat analysis establishes that increased Hong Kong market regulations for foreign direct investments pose an operational challenge through increased production costs in the long run (“ HKTDC Research” , 2014). In addition, a porter’ s five forces model analysis on the wine market by the Agriculture and Agrifood Institute (2014) established that the market faces the risk of increased competition and new entrants.

Moreover, increased competition will increase the buyer's bargaining powers a combination of which is expected to reduce organizational profit margins. Therefore, the above analysis necessitates the need to develop strategic marketing plans in the wine manufacturing and distribution industry. Thus, this report offers a market plan for the expansion of Penfold Company product expansion on the Hong Kong wine market.


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