The paper “ Situational Analysis of the UK Wine Industry” is an engrossing version of a case study on marketing. The UK has a tremendous wine industry that has been maintained at an approximately constant consumption level between 2006 and 2011. Due to unending demands on the market, the industry imports wine products from Europe, Asia US, South Africa, and South American countries. For instance, these wine products are imported from Australia, Italy, France, the US, Spain, Chile, South Africa, German, New Zealand, and Argentina. There has been a significant change in imports per country for the last ten years.
The Australian wine imports stand at +9 for the past ten years. The UK wine market is segmented into three main market segments that any wine company can target when marketing their wine products. Australian Wine Company aimed at penetrating the UK wine market must work extremely hard in order to accomplish its objectives given the fact that the market has many players (Giuliani, Morrison and Rabellotti, 2011). This is a marketing paper that comprehensively discusses the UK wine industry situational analysis; the external environmental issues that a company faces in an international market.
Similarly, the paper will provide an intensive industry-focused analysis including production, distribution patterns, current import trends and competition, and consumption patterns. Above all, the paper will provide a marketing strategy that the company can use to successfully market its wine products. Situational Analysis of the UK Wine IndustryThe wine UK market cannot be strongly related to seasons; notwithstanding this, during the summer season, it has been found that there is always a sales increase (Giuliani, Morrison and Rabellotti, 2011). The external environment affects the marketing activities of any company particularly one that is expanding its operations to overseas markets.
With regard to this understanding, an Australian Wine company that is aimed at marketing its products on the UK wine market will be affected rather than impacted by the following environmental forces. Political/Legal Factors: Politics of any country affects its economic growth and hence it has a massive impact on the marketing practices of any company (Hall et al. 2012). For instance, legislations like minimum wage or anti-discrimination laws, voluntary codes and practices, market regulation, trade agreements, tax levies, and the kind of government regime in power sill directly influence the company’ s marketing activities (Giuliani, Morrison and Rabellotti, 2011).
A company that does not conform to the country’ s legislative obligations is likely to fail in its marketing pursuits. The UK has a stable political environment thus favoring the development of business both from within and outside its borders. However, the country has high taxes on wine products, which have made them expensive (Hall and Sharples, 2008). Accordingly, there are other legislations that demand to reduce the wine glass size; this has an implication of decreasing the amount of wine consumed through on-trade businesses (Hall and Sharples, 2008). Economic FactorsThese are the national and global economic factors that have a direct impact on the marketing of any product.
In this regard, the national and global interest rates together with the fiscal policy are the primary determinants of economic conditions (Giuliani, Morrison and Rabellotti, 2011). The economic climate dictates the consumption trends of the market. An economy that is undergoing recession has high levels of unemployment and thus low spending power and stakeholder confidence (Smyth, Russell and Milanowski, 2011).
On the other hand, booming economies have low unemployment rates with high consumption rates due to high spending power and high stakeholder confidence. The UK wine industry like any other industry was affected by the 2008 recession, which resulted in low wine consumption rates. Similarly, the strong Euro resulted in an increase in wine prices thus low consumption (Hall et al. 2012). However, this phenomenon improved the returns in the new world countries like South Africa. Accordingly, it prevented European wine manufacturers from competing with new world wine manufacturers.
Currently, the UK economy is slightly stable and hence favorable for investment.