Marketing homework help>Report writing

Marketing homework help>Report writing

Table of Contents 1.Introduction 3 2.Business and Product Overview 3 3.Industry Sector Profiles 4 3.1.Domestic (Australia) 5 3.2.International (Australia) 5 3.3.Domestic (Indonesia) 6 3.4.International (Indonesia) 6 4.Consumer Profiles 7 5.Conclusion 8 6.References 9

1.Introduction

The Australian wine industry is one of the world’s biggest exporters of wine. The wine industry contributes considerably through manufacture, entrepreneurship, exports and tourism to the Australian economy. This report will represent a particular Australian wine manufacturing company and concentrate on detailing the understanding of the company’s goods and services, as well as the domestic and international wine industry in which it operates (domestically) and planning to operate (internationally), and developing customer insights for the industry sector and enterprise.

2.Business and Product Overview

Charlotte’s Wine LTD is a privately held firm that makes money by producing, importing, and selling wines and liqueurs. The company headquarter is located at Pyrmont, New South Wales, and has subsidiaries across Australia, New Zealand and United Kingdom.

The company is famous for its varied wine regions that reliably deliver award-winning wines, with 140 years of winemaking experience and passion handed down via six generations of winemaking. Charlotte’s Wine LTD is distinguished by regional characteristics, high quality, outstanding depth, and full flavour expression. This company is one of the most technologically sophisticated and forward-thinking in Australian wine industry. Charlotte’s Wine LTD is considered for its consistently high-quality fresh, fruit-flavoured white and red wines. Charlotte’s Wine LTD is fortunate to have a team of workers who share a passion for its wine variety, in addition to a lengthy list of fellow winemakers and workers.

There are four varieties of the product (Wine), such as –

· Fortified – Dessert wine is fortified by adding spirits and enhancing the alcohol content. As a result, the wine is, therefore, sweet and powerful. However, it is not very worth drinking and consumed in small quantities (Carlsen & Dowling 2015).

· Red – It has a higher tannin contents and a higher alcohol. The tannins leave a grippe feeling on the back of one’s tongue which dries and brings one’s lips together. They are made up of grape skins and seeds and wine preserved in new oak barrels (Made 2019).

· Rose – It has made through a fast maceration process. This is accomplished by allowing the wine to sit with red grape skins for a few hours until it has developed a pleasant pink hue. The wine would be an excellent red wine if left with the skins for longer (Made 2019).

· White – These are usually wines that have been aged in oak barrels and have undergone a second fermentation known as malolactic fermentation. Chardonnay is the most well-known example of a full-bodied white wine. Full-bodied white wines are distinguished by their unique vanilla and coconut aroma and go well with lobster, asparagus risotto, poultry, and various cheeses. They are typically aged for three to ten years and can be very expensive (Made 2019).

3.Industry Sector Profiles

Marketing is described as a range of practices carried out by businesses to satisfy consumers by adding value and building positive relationships with them to increase their brand value. It defines and turns demands into goods and services to meet consumers’ preferences (Cateora et al. 2016).

Domestic and foreign marketing are two forms of marketing. When services and products are only sold in the native country, this is known as domestic marketing (Cateora et al. 2016). On the other hand, global trade is the kind of marketing that spans many countries around the globe, i.e., the branding of goods and services is conducted globally (Mayrhofer 2015).

As Charlotte’s Wine LTD has decided to expand its business in Indonesia, the company needs to focus on the domestic and international industry in which it operates and plans to operate. The following is a discussion of some of the macro-environment elements of Australia and Indonesia.
3.1.Domestic (Australia)

In terms of socio-cultural, alcohol plays a big part in Australian culture. Technological wise Australia has the most sophisticated technological facilities in manufacturing and business. With nearly eight-hundred million of 1.2 billion to 1.3 billion litres manufactured in foreign exports annually, Australia’s wine industry is among the leading exporters. Australian wines have a domestic industry of 3.5 billion dollars, while Australians consume about 500 million litres a year (Wineaustralia 2019). The Norfolk Islanders are the world’s second-largest buyer of per capita wine with 54 litres. Only 16.6% of nationally sold wine is imported (Wayback Machine 2020).
3.2.International (Australia)

Economic: Australian wine exports worth $2.8 billion (A$) a year, which grew by 9 per cent in June 2007 (Wineaustralia 2020). North America and the UK account for about A$2 billion of this. 2007 North American market figures indicate that Australian wine accounted for 17 per cent of the total US imported wine’s value, 31 per cent behind France and 28 per cent behind Italy (Carlsen & Dowling 2015).

Figure 1: Since 2000, the quarterly volume of wine purchases (Australian dollar)

Source: (Carlsen & Dowling 2015)

Australian wine does have a very significant market share in imports in Southern Asian nations, with a 16% market share, and it is the second-biggest imported wine in India.

Legal: Australia is the most prominent imported wine supplier in China and partly accomplished through the two countries’ free trade treaties.
3.3.Domestic (Indonesia)

Socio-cultural & Political: Indonesia is a predominantly Muslim country that is also pluralistic, democratic, and secular (Cochrane 2009). Due to these social and demographic factors, Islamic parties and pressure groups have pushed the government to curtail alcohol intake and trading. In contrast, the state remains conscious about the rights of non-Muslims and giving consent to adults to consume alcohol and the potential consequences of a ban on alcohol on Indonesian tourism and the economy (Post 2020). Due to an increase in disposable income, the wine market in Indonesia is expected to expand faster. Still, wines, fortified wines, and sparkling wines also are available from 18 importers. Some Indonesian liquor specialities, including arak (rice alcohol), tuak (plum wine), and anggur Hitam (black wine), are relatively uncommon.

Technological: Indonesia is comparatively less advanced in terms of technology than Australia.

Legal: Except for Aceh, a province in Indonesia, there are currently no alcohol prohibitions in place in Indonesia. Since 2014, anyone caught drinking alcohol or breaking the moral conduct codes whether locals or visitors in Aceh has been subjected to six to nine cane lashes. To appease Islamic parties and pressure groups in other Indonesian regions, the government agreed to impose moderate alcohol restrictions including high taxes and local bans (BBC 2019). Due to high taxes and restrictions on alcohol drinks in Indonesia, there have been criminal alcohol cases in the state (Post 2020). Locals turn to illegal smuggled liquor for a cheaper drink as legal and imported alcoholic drinks become unaffordable.
3.4.International (Indonesia)

Indonesia is one of the nations that imposes high import taxes on alcoholic beverages; in 2015, the alcohol import tax increased to 150 per cent. Except for the Bali region, the Indonesian government prohibited liquor consumption in minimarkets and minor stores in 2015. However, sales were permitted in stores, hotels, bars, clubs, and resorts. Alcohol drinks are widely available in more cosmopolitan Indonesian cities such as Jakarta, Medan, and Surabaya and tourist hotspots such as Bali, Yogyakarta, and Batam, albeit at increased costs to the high tax imposed on alcoholic drinks (Post 2020).

4.Consumer Profiles

Customer profiling is a method of building accurate consumers’ profiles based on facts such as their purchasing habits and customer service experiences. These are not intended to replace conventional demographics; instead, they are meant to be used in conjunction with them when dealing with consumer touchpoints (Mayrhofer 2015). Customer profiling helps to imagine the different types of customers that will engage with the product. Instead of drawing widely and trying to grab more of the market, customer profiling allows for more targeted customers to customize goods or services.

If we Charlotte’s Wine LTD wishes to run its new venture in Indonesia, we have to do the consumer profiling of the Indonesian wine industry because this will help to understand and enter into the international south Asian wine market.

Demographic: Because of the Muslim cultural impact, selling wine in Indonesia could be difficult. However, there is a real potential for liquor sales in Indonesia in the right segment of the market. There are no bulk wine or low-cost wine sales opportunities in Indonesia and these price points are politically shaky for Indonesia. This is not the case with premium wine sales, ranging from $15 to $50 on an Australian wine shelf. These wines would be sold in Indonesia for an additional premium of $40-150 (Mayrhofer 2015). These wines are expensive and the emerging middle class eats them in cities like Jakarta and restaurants and hotels in Indonesia.

Lifestyle: The Glass and bottle of wine are often sold in hotels, bars, restaurants and clubs. Online wine delivery is becoming more prevalent these days. Some notable shops include Rumah Wine, Bobobo and Wine Shop Indonesia. Jakartaliquor, Happy Fresh, Minuman and Mambo Bodega are helpful websites that directly deliver alcohol at affordable prices to the doorstep (Soulsby 2019).

Consumer behaviour: Indonesian customers, particularly Red Wine consumers, have grown because of the popularity of wine. The Still Wine Market leads the field in terms of value while Fortified Wine is anticipated to have the fastest increase in value in 2016–2021. The leading distribution channel in the world is Hypermarkets & Supermarkets by volume. Glass is the most popular packaging material used, and the highest growth is expected in 2016-2021 (Soulsby 2019).

Geographical variables: Indonesia is situated in south east of Asia, where most countries are on the verge of development. The national income may vary from a developed country like Australia. Also, it is a Muslim majority country surrounded by other Muslim majority countries and that is why the culture and norms are somewhat affected by its neighbour. Selling expensive wine in this region will be a difficult task.

5.Conclusion

Domestic marketing benefits from various advantages which includes more access to data, fewer contact barriers, in-depth knowledge of customer desire, taste, industry dynamics knowledge, reduced competition and a single collection of fiscal, social, and political problems (Carlsen & Dowling 2015). However, due to the small size of the industry, development is also constrained. On the other hand, international marketing distinguishes no bounds, focusing on consumers all over the globe. Moreover, there are certain drawbacks such as the obstacles it faces on the road to expansion globalization. Socio-cultural disparities, fluctuations in foreign exchange, language barriers, differences in consumer purchasing preferences, setting an international price for the commodity are only a few examples. So before expanding business internationally, a company must acquire and adopt certain skills about international marketing.

6.References

BBC News. 2019. Indonesia bans alcohol sales in small shops. Available at: https://www.bbc.com/news/world-asia-32330135 [25 March 2021].

Carlsen, J. and Dowling, R., 2015. Wine Tourism Marketing Issues in Australia. International Journal of Wine Marketing, 10(3), pp.23-32.

Cateora, P., Money, R., Gilly, M. and Graham, J., 2016. International marketing. 5th ed.

Cochrane, J., 2009. Newsweek. Why Indonesia Is Not a Muslim Democracy. [online] Available at: https://www.newsweek.com/why-indonesia-not-muslim-democracy-81951 [26 March 2021].

Made, 9., 2019. 9 Main Styles of Wine and How They Are Made – Wine Tasting Ljubljana. [online] Wine Tasting Ljubljana. Available at: https://winetastingljubljana.com/9-main-styles-of-wine-and-how-they-are-made/ [27 March 2021].

Mayrhofer, U., 2015. Marketing international. Paris: Économica.

Post, T., 2019. Aceh fully enforces sharia. The Jakarta Post. Available at: https://www.thejakartapost.com/news/2014/02/07/aceh-fully-enforces-sharia.html [25 March 2021].

Post, T., 2019. Bali tourist areas exempt from beer ban. [online] The Jakarta Post. Available at: https://www.thejakartapost.com/news/2015/04/17/bali-tourist-areas-exempt-beer-ban.html [26 March 2021].

Post, T., 2020. Alcohol jeopardizesizes industry, tourism. [online] The Jakarta Post. Available at: https://www.thejakartapost.com/news/2016/08/09/alcohol-ban-jeopardizes-industry-tourism.html [26 March 2021].

Soulsby, S., 2019. NOW JAKARTA. Indonesia’s Wine Scene. [online] Available at: https://nowjakarta.co.id/magazine-issue/food-the-music-of-love/indonesia-s-wine-scene [27 March 2021].

Wine Australia., 2020. Available at: https://www.wineaustralia.com/australia/News/Reports/WineExportApprovalReports/tabid/204/Default.aspx. [25 March 2021].