The primary aim of this paper is to develop a marketing plan for Black Swan Wine Company to export the wine in the China. The hypothetical Black Swan Wine Company has been taken in the task to analyze the significance of the marketing plan in the marketplace. It explains that how situational analysis is done by the company to reduce and analyze the issues and challenges of the Chinese market. Marketing mix, segmentation, targeting and positioning have been explained in the task. It describes that how the organization uses porter five forces analysis to stay in the competitive market. Evaluation and monitoring is done by the company and appropriate budget is also made by Black Swan Wine Company. More detail of the paper has been detailed below.
Black Swan Wine Company was established in March 2018 by ample of wine lovers. The company has built and developed a venue for guests to capture fantastic and unique views of Vineyards, the darling ranges and adjacent rural surroundings. Black Swan Wine Company is providing the dining experience and wine to the customers in the international market. Each and every approach and strategy is used by Black Swan Wine Company. In today’ era, the company has decided to explore the wine business and activities in China (Blackswanwines, 2018). The main mission of the company is to become a global leader in the marketplace by providing high quality of wine to the customers.
It is stated that situational analysis is done by Black swan wine company to expand and explore the business activities and operations in Chinese market. No company can grow its business in foreign market without analyzing and identify the trends and conditions of the market. As the same way, situational is conducted by Black swan wine company in the country. By using this analysis, the organization has been able to know and analyze the plans, strategies and threats of the foreign market. It also helps in identifying and evaluating the opportunities and threats of the market (Hirche & Bruwer, 2014). The firm uses SWOT analysis, porter five forces analysis and pestle analysis to analyze the Chinese market.
Pestle analysis provides ample of information about the environment of the China. Thus, pestle analysis is essential to the strategic management and expansion of the business. The pestle analysis for Black Swan Wine Company in China has been detailed below.
Political factors: It has been noted that China is one of the biggest and powerful nations in the world. Recently, China government is ongoing to promote and encourage rule of low. The Chinese regulations and constitution provide fundamental human rights and norms however in the real life these are often avoided. In today’s era, Chinese government focuses on the development and expansion of e-commerce and furthermore, it also focuses on the rules, regulations and norms for doing business successfully and effectively. Before implementing the business activities in China, the company needs to focus on the political factors to gain competitive advantages in the marketplace.
Economic factors: The Chinese economy is growing day by day. There are ample of economic factors that could affect the progress of the firm adversely as well as positively. It is analyzed that China is the 2nd biggest economy across the world measured by GDP. The GDP of the country is 11.2lack crores USD that helps Black Swan Wine Company to maximize the revenue in such country. Any economic development may have a direct impact on the wine business. On the other hand, labor cost in china is quite low, this is why because leading and growing companies such as apple are inclined to appoint employees from the country. It can affect the performance and productivity of the organization adversely. The high inflation rate also could have direct impact on the productivity of the firm. The inflation rate was 2.65% in 2012. The people’s bank of China has increased and improved interest rates. The country has also increased the minimum wages that is biggest challenge for the country. Along with this, exchange rates, and employment rates could also influence the wine business in such country (Gilinsky Jr, Forbes & Reed, 2016).
Social factors: The social factors include culture, values, custom, beliefs, and lifestyles of the people. The social; and cultural attributes of the country play a significant role in Wine industry. The family size and social behaviors of the people usually whether how the decisions are taken. Along with this, social factors including emigration, religion and lifestyles of the people. In addition, it has been noted that China is following collectivistic culture. The literacy rate in the country is 90% thus, it is analyzed that the country focuses on the education of people. It has been noted that Chinese have not been in the habit of drinking wine. But, with the openness to accept the western culture and maximized drinking of wine in business and social events has facilitated in the increase of wine consumption in the society. All these factors have direct impacted on the outcomes and profits of the firm (Varsei & Polyakovskiy, 2017).
Technological factors: The latest and innovative technology and resources are being used by the country to conduct business operations and activities successfully and efficiently. They are providing high competition to the imported wines. It has been noted that good and high demands imported wines from the countries such as European unions and Australia. Black Swan Wine Company can take plenty of advantages in the Chinese market by expanding and flourishing business in such market (Malakhova, 2014).
Environmental factors: The economic development has impacted on the wine industry. Deforestation, climate change, industrial waste, air pollution and water pollution are some of the example that can affect the sustainability of the firm in such country. On the other hand, the main problem in the country is that the development and expansion of the B2C industry does not have a stable and secure online payment system. Furthermore, long term orientation and uncertainty avoidance are biggest issues in the Chinese market (Christ & Burritt, 2013).
Legal factors: It is the last factors in the pestle analysis of the country. There are ample of laws that govern business and employment practices in the Chinese country. For example, employee remuneration and benefits, labor standards and labor disputes and other issues are governed by the PRC labor low 1995. If the company wants to export the wine in China then needs to focus on the legal factors of the country. In this way, the organization has been able to meet the long term mission and vision of the firm (Zhong, 2015).
SWOT analysis stands for strengths, weaknesses, opportunities and threats. SWOT analysis for Black swan wine company has been detailed below.
Strengths
Weaknesses
Opportunities
Threats
Strategic analysis is important to export the wine in China. The company cannot export the product in other country without analyzing the market (Ho, 2012). Porter five forces analysis is an good example of strategic analysis that has been discussed below.
Threats of new entrants: It has been noted that threats of new entrants is moderate in China because of the economies of scale. Along with this, capital and investment requirement are not high in the country. The company needs to focus on the competitors while exporting the wine in Chinese market (Magretta, 2011).
Threat of substitute: It is one of the significant forces in porter five forces analysis. The threat of substitute product such as spirits and beer pose a biggest threat to the company. In this way, threat of substitute is high in the country. The prices of the substitutes wine are quite cheaper therefore it affects the sales and outcomes of the firm.
Bargaining power of suppliers: It has been noted that bargaining power is low in the hands of the suppliers in Australia. It is stated that suppliers do not provide any bargaining power. It means the company is not dependent on the suppliers (Fleisher & Bensoussan, 2015).
Bargaining power of buyers: The bargaining power of buyer is high in the wine industry. Mostly, every people like to drink wine. Therefore, the firm analyzes and evaluates the needs and requirements of the consumers in Chinese country to increase the demand of the products in such market.
Intensity of rivalry: There is high and intense competition in the wine industry due to high demand of the wine. It will affect the decision of the Black Swan Wine Company regarding the export of wine in Chinese market. To export in Chinese market, the company needs to focus on the needs and demands of the customers in such market. The firm needs to set reasonable prices of the products to attract maximum number of customers in the Chinese market (Rossi, Vrontis, & Thrassou, 2012).
Marketing objectives for the Black Swan Wine Company in Chinese market while exporting wine in such country include the following:
STP (Segmentation, targeting and positioning)are the main strategies of Black Swan Wine company to export the wine products in the Chinese market. The company uses this strategy to encourage the wine in such market. The segmentation, positioning and targeting strategies for Black Swan Wine Company have been detailed below.
Segmentation: Market segmentation is a process of dividing the market into different group of customers in the marketplace. These customers demand for similar products and services. Black Swan Wine Company divides the market on the basis of demographic, geographic, behavioral and psychographic areas. In demographic area, the company focuses on the age, gender, education, ethnicity, nationality, social class and religion. It will help to the company for deciding target audience in the Chinese market. In geographic area, organization focuses on the climate, and weather of the Chinese market. By focusing on the geographic area, the company has been able to beat the competitors in the international market. In psychographic area, interests, lifestyles and attitudes of the people that have direct impacted on the sale process of the firm. On the other hand, Black Swan wine company also identifies the behavior and culture of the people in the Chinese market (Bo Liu et al, 2014).
Targeting: Target market plays a significant to earn maximum level of output and market share in the Chinese market. The target market includes youngsters who are age group between 25-35 years. It is noted that consumers change their expectations, requirements and choices for wine. The youngsters want wine in high variety and flavors which ensure the wine industry to explore on their product line. This will help to provide excellent opportunity for exporting the wine in Chinese market (Nella & Christou, 2014).
Positioning: Black Swan Wine Company is positioned as a premium brand in the global market and its wines are one of the significant required after wines in the international market. It has been noted that the firm positions itself on the lines of the luxury in the global market as it brands are popular in the international market. The company differentiates its wine from the other competitors in term of price, quality and variety that help to make a dynamic image in the minds of the customers. It is revealed that wine industry is different from the other industries. Black Swan Wine Company has introduced to the target audience which demands high quality wines with texture and tastes. The company cannot export wine in Chinese market without analyzing and identifying the target audience in such market. It also helps in overcoming on the competitors in the international market (Khan, 2013).
It has been revealed that success and growth of Black Swan Wine industry is dependent on the generic strategies. There are enormous generic strategies that can be used by the company while exporting wine to the china. Some of the generic strategies have been discussed below.
Cost leadership strategy: This strategy is used by the company to reduce the prices of the wine in the foreign market. The sources of the cost are varied and dependent on the structure of the company. It includes raw material, economies of scale, technology and other factors. If the company adopts low cost leadership strategy then it can cope up and strive with competitors in the Chinese market. By using cost leadership strategy, the company has been able to make a strong goodwill and financial position in the marketplace.
Differentiation strategy: In this strategy, the organization seeks to be unique and effective in its industry besides some dimensions that are extremely valued and noted by the buyers. The company uses differentiation strategy to distinguish its wine from the competitors. In differentiation strategy, Black Swan Wine Company needs to provide variety of wine to the consumers in the Chinese market. The company is rewarded and recognized for its uniqueness with premium price (Ramdani et al, 2018).
Focus strategy: It has been analyzed that Black Swan Wine Company uses focus strategy to accomplish the long term targets and goals and to beat the rivalries in the global market. There are two types of focus strategy such as cost focus and differentiation focus strategy. By using cost focus strategy, the company has been able to know and understand the purchasing power of the consumers (Giuliani et al, 2011).
Promotional strategy: Online channels and promotional strategies are being used by the company to export the wine in Chinese market. This strategy helps the company to promote its products in the foreign market and furthermore, the consumers can easily distinguish its products from the rivalries (Grünig & Kühn, 2018).
Marketing mix shall be used by Black Swan Wine Company to meet the long term requirements of the business. It also helps to attain various competitive benefits in the marketplace (Wiedmann et al, 2014). The marketing mix for Black Swan Wine Company has been detailed below.
Product: Product mix refers to the various products line produced by a firm or products stocked by the retailers. It is very important strategy that is used by black Swan Wine Company while exporting the business in China. The firm uses this strategy to produce ample of wine products in the marketplace (Hair Jr et al, 2015). Product is one of the significant components of the marketing mix. The organization designs their wine product range to cater for the diverse wants, needs and requirements of the customers. Branding is one of the effective factors of the product mix (Wiedmann et al, 2014).
Price: After the various studies, it has been found that pricing strategy is adopted by Black Swan Wine Company to compete and strive with competitors effectively in the Chinese market (Giuliani, Morrison & Rabellotti, 2011). The company needs to focus on the prices of the competitors products in order to set the appropriate prices of the wine. Also, it will help to make attract maximum number of clients in the global market. This strategy also works well in the environments where the businesses monitor and focus on their competitors. The firm uses branding and cost based pricing strategies to accomplish the mission and vision of the firm (Kim & Mauborgne, 2014).
Promotion: It is one of the biggest and significant components of the marketing mix. It encompasses various elements such as personal selling, sales promotion, publicity, direct marketing and exhibitions. It is stated that Black Swan Wine Company uses advertising and promotional strategies to grow and survive the business activities in the Chinese market (Conto et al, 2014).
Place: One of the dynamic and significant strategies that used by the company is place strategy. The effective and unique channels of distribution are remarkable significant for the organization that believes in meeting the expectations and needs of its customers. Black Swan Wine Company can use and employ any of the two significant distribution channels in order to ensure the wine reaches the customers at right time and place (Festa et al, 2016).
People: Effective and unique leadership team shall be used by the company to export the wine in Chinese market. It will also help to increase revenue and returns in the international market.
Physical evidence: Physical evidence and documentation shall be done by the company before exporting wine in the china.
Process: Dynamic and unique process and techniques must be used by the company to increase the wide range of wine consumers in the global market (Hall, 2013).
After making marketing plan for exporting wine in the China, Black Swan wine Company needs to evaluate the strategies to be a leader in the market place. If there is any deviation then changes can be done by the company. The company focuses on the entire process to find out the deviation and other issues within the organization. On the other hand, effective and unique budget is made by the company in strategies and marketing programs. It is noted that the company uses ROI to determine and evaluate the appropriate budget for the marketing plan. In this way, marketing plan to export the wine in chain is made by Black Swan Wine Company (Felzensztein et al, 2014).
Conclusion
The above mentioned analysis shows that how Black Swan Wine Company in the international market. It is concluded that the company uses unique and effective promotional and strategies within the organization in order to export the wine in the Chinese market. In situational analysis, SWOT analysis, pestle analysis and porter five forces analysis are done by the firm while exporting the wine in China. Along with this, the paper shows that how the firm select target audience to sale the products effectively and successfully. Besides this, the organization can also use marketing mix strategy to handle and resolve the issues and challenges of the market and organization as well. It is recommended that the company should set appropriate budget and strategies to maximize the consumers in the international market.
References
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