Wellington Wines Ltd - Target Market, Customer Analysis and Positioning - Case Study Example

Marketing Plan By Name Instructor Institution Course Date City 1.0 Executive summary Wellington Wines Ltd is seeking to be an outstanding company in almost all parts of Australia in wine distribution. The availability of the vineyard in Mudgee will enable the company produce surplus wine the will flock the Australian wine markets. Through critical analysis of the Australian wine markets that is Australia has come up with a system that will allow its customers to order wine online and it is delivered. These system has made Australia expand its market all over the country and almost going international. With Wellington among key suppliers, it will capitalize on these system of Australian business. Apart from that the company will ensure that the wine is not only for export but also encourage local consumption through subsidizing the price and also blending of the wine to make it affordable for local residents. However, Wellington Ltd has already established markets internationally with Australia being the major consumer of its wine, the company will try to build up more on that by producing high quality wine since it has an advantage of having Mudgee vineyard at its proximity that will provide raw materials for the company. Wellington Ltd is producing Wellington Sauvignon Blanc and Wellington Chardonnay both 750 ml bottled wine that is exported to Australian wine markets. The company will create a nice reputation for this product within 3 months that will see this product dominate the Australian wine markets than any other wine from different companies such as Accolade wines, Casella wines, Treasury wines, Pernod Ricard winemakers and Australian Vintage which are among the major white wine producers in Australia. The strategy here is first to establish a multinational website and share place it on the bottles of the wine produced. This will contain the images of the wines and a brief description of the contents and its advantage over other wines. These will mostly target the independent buyers. Production technology will be employed such as used of ultra-modern machine in processing the wine that is it will ensure best quality wine that is not produced with any other company. Better preservatives that are harmless will be used to ensure better storage of the wine. The company will use cargo planes to fly a huge tonnage of wine to Australia. These will allow proper and efficient delivery of the wine in Australian markets. From the fact that Australian has a growing consumer palates the company will target these people through industrial analysis of market statistics that will establish the current and future market trends so as to place depots at various strategic positions such as Sydney, Melbourne, Perth and Brisbane in Australia. Marketing strategy will involve online marketing through blogs emails and functional websites that will be published on wine bottles and others through advertisements in various media platforms such as Facebook pages (Baker, 2014). There will be also online networking through coming up with a software that will enable the company make online sales. The company will maximize on media advertising such as televisions, radios and use the Billboards especially in Brisbane and Sydney to advertise the Wellington Sauvignon Blanc and Wellington Chardonnay wines. The company will also establish customer care units to take care of customer complaints and this will in turn help in getting customer loyalty. Market research will assume a centre stage in the company’s marketing strategy. This will assist in identifying the new products in the market that will pose a threat to Wellington Wines Ltd and in turn come up with mechanisms such as improved quality of products and excellent delivery services to beat the threatening wine. Also benchmarking and market analysis will be conducted in order to improve customer satisfaction (Babin and Zikmund, 2015). Wellington wines limited holds a greater tendency of risk in the market but it has an extensive vineyard in Mudgee to provide grapes for the company. It has also differentiated service delivery range that will move towards satisfaction of customer demand. These include aircraft delivery of wine and distributor depots in major Australian cities such as Sydney and Brisbane. The company manager in charge of marketing will employ high level of creativity and innovation since the success and prosperity of Wellington Wines Ltd squarely lies on his shoulders. With the 15% amount allocated to the company in FY2016-17, they will enable the company finance research marketing strategy. 2.0 Current Situation Wellington wine company produces wine that aids towards satisfying a broad consumer demographic that is available locally and internationally with Australia being the target for export of its wine. The company produces a broad range of quality products that are genuine to its consumers. The company also produces bottled wine that is in bulk and also employs high levels of innovations, creativity and improvements. The company’s wine is laid on a nice marketing board which earns it an imperative progress as one of the international wine companies. The quality of the wine produced has made Wellington wine Ltd earn a good reputation in the wine markets of Australia. Formerly, Wellington wine Ltd was born from three wine companies namely Wamakersvallei winery, Bovlei Winery and finally Wellington Co-operative Winery. These companies in turn Blended up to make wellington. Currently Wellington Wines Ltd is competing in international markets with earning a bragging right from world class wine that is quality courtesy of the three mother companies. The company has established a testing chamber in the formerly Bolvei building whereby wine is tested before release into the market. In the testing rooms, sales take place from Monday to Friday beginning from 9:00 to 17:00 hours but Saturdays and public holidays as from 9:00 to 13:00 hours (Overton and Murray, 2014) 3.0 Objectives and Issues 1. To increase the company’s sales by 15% by the end of the year 2017 2. To improve the awareness of the products in various market places and also creating interest in wine consumption and strengthening it where depots will be located. 3. To make Wellington Wines Ltd an outstanding supplier of wine in the target markets and its brands become one of the top wines on demand 4. To maintain a place of our Brands in the minds of our customers both independent and supermarket chains 5. To expand distribution of Wellington Sauvignon Blanc and Wellington Chardonnay wines beyond Australia and move in other overseas thus making them multinational brands. 6. To achieve the highest levels of customer satisfaction through offering quality service. 3.1 Issues Key issues here include Selection of market and segmentation Selection of an effective market segment is imperative in developing the plan. It needs critical analysis of some market segments in order to supply the products. A survey should be conducted to ascertain the interest of the target population in wine. It makes no sense to establish a market of people who are not interested in alcohol. The company will conduct market research in order to establish a market that will be efficient for marketing of wine with minimal competition and entry barriers for the purpose of worthwhile marketing effort (Hajibaba et al., 2016). Specificity The company has an aim of increasing the sales of white wine that is Wellington Sauvignon Blanc and Wellington Chardonnay wines by 15% by the end of FY 2016-17. These will enable the company maintain focus on the needs of the company and therefore come up with mechanisms to attract customers. Measurability The company will conduct surveys in target market areas to improve key features of brand awareness. Since it does not come out clearly for a period of a year, it will be found instrumental in the next financial year. However, as per these financial year these issue will be quite imperative in keeping tracks of the sale and also pave way for accountability. Achievability To achieve the company’s objective is still an issue that is languishing in economic realm. These is because the above factor is dependent on the amount of money channeled in the marketing budget and general environmental factors that may influence effective marketing effort. Moreover, brand competition and the state of economy will also be a factor in achieving marketing objectives (Armstrong et al., 2014). 4.0 Target market, customer analysis and positioning Wellington wines Ltd will target major Australian cities such as Sydney, Melbourne, Brisbane and Perth. These is because of the demographic advantage these cities have that the company assumes will provide market for its wine. Through market research the company will analyze the current customers it has identify their characteristic which will help to establish the scope of fishing others. Depots will be positioned in strategic places based on identified characteristic and needs of customers (Hollensen, 2015) 5.0 Marketing Strategy 5.1 Use the existing customers The company will provide some VIP treatment to its existing customers. It may offer some discount in order to retain them despite the efforts of seeking to attain more customers (Baker, 2014). 5.2 Partnership with allies The company will sign an MOU with other companies. These allows quick success and will expose the wine brand to new market segment. 5.3 Utilization of user content The company will seek some feedback from customers about the extent of service delivery and customer satisfaction so as to improve on its weaknesses 5.4 Collaboration with influencers The company will collaborate with influencers in order to extend brand awareness to new market segments by picking some inspirational ideas from them (Ferrell and Hartline, 2014) 5.5 Create a customer affair hub These will serve the purpose of solving any problem that customers will encounter with the company either low quality wine or unfavorable prices imposed by the retailers. It will also offer a platform for the customers to interact with the company. 6.0 Marketing program The company will adopt the 5p program (product, price, placement, promotion and people) (Hwang and Kandampully, 2015) 6.1 Product Wellington Wines Company has Wellington Sauvignon Blanc and Wellington Chardonnay wines as it main products. Depending on the prevailing market situation the company may decide to change its packaging and infuse new ideas such as after sale services and giving warranty to customers. Since the world is dynamic quality of the product will be a continuous process to meet the market demand 6.2 Price Though the company will issue a fixed price on the wine, it will be subject to readjustment during promotions and offers to customers. The company will also set the price depending on the prevailing economic and market situation. If the wines will face stiff competition the prices will be lowered in order to trap and retain customers and if the company will enjoy monopoly in the market then it will set high prices. 6.3 Placement Wellington Wines Limited will be dealing with both Independent and Supermarket chains, it will use emails, media and billboards to enhance placement. The company will also use its vehicles to do local distribution to customers. 6.4 Promotion The company will design elevator speech for the wine brands it has and print it in newspapers, magazines and also read in radios or televisions. Billboards in cities of Australia will also serve a significant role in promotion whereby sample pictures of the company’s wine will be displayed. The company will try to make sure it looks as attractive as possible. 6.5 People The company will employ human resource in various fields such as sales people who will be pioneers in the marketing strategy. They will establish contact with customers which will help in creating the brand awareness in the market. The company will ensure that the human resource available will be motivated properly through grants and promotions in the company so that they deliver the best to meet the company’s marketing objectives 7.0 Financial and Operational Plans Wellington Wines Ltd Profit & Loss statement FY 2016-17 Operating Revenue Product sales Service sale $ 50,000,000 120 Total Operating Revenue 50,000,120 Operating expenses Cost of goods sold 8,000,000 Gross Profits 42,000,120 Overhead Rent Insurance Office supplies Utilities Total overhead 150,000 25,000 15,000 20,000 210,000 Operating income 41,790,120 Expenses Loan Interest (300,000) Earnings Before Income Taxes 41,490,120 Income Taxes 400,000 Net Earnings 41,090,120 Wellingtons Wines Ltd Balance sheet December 31, 2016 Assets Current Assets Cash $41,090,120 Accounts receivable 300,000 Prepaid Rent 100,000 Inventory 400,000 Total current assets 41,890,120 Long term Assets Leasehold Improvements 100,000 Accumulated Depreciation (20000) 80,000 Total long term Assets Total Assets 41,970,120 Liabilities Current Liabilities Accounts Payable 8,000,000 Accrued Expenses 350,000 Unearned Revenue 100,000 Total current Liabilities 8,450,000 Long-term Liabilities 6,000,000 Total Liabilities 14,450,000 8.0 Metrics and implementation Control Marketing Metrics Activity Amount in $ Direct emails 200,000 Running Adverts 300,000 Launching website 600,000 Total 1,100,000 Implementation will involve sending direct emails, running adverts and launching websites through which the company’s products will be displayed. This will be controlled by the plans objectives (Hollensen, 2015). References Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia. Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning. Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan. Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan. Ferrell, O.C. and Hartline, M.D., 2014. Marketing Strategy Text and Cases. South-Western Cengage Learning. In Library of Congress Control. Hajibaba, H., Grun, B. and Dolnicar, S., 2016. Variable selection for market segmentation. CAUTHE 2016: The Changing Landscape of Tourism and Hospitality: The Impact of Emerging Markets and Emerging Destinations, p.1115. Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education. Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education. Hwang, J. and Kandampully, J., 2015. Embracing CSR in pro-social relationship marketing program: understanding driving forces of positive consumer responses. Journal of Services Marketing, 29(5), pp.344-353. Overton, J. and Murray, W.E., 2014. Investing in place: articulations and congregations of capital in the wine industry. The Geographical Journal. Read More