Poistioning Strategy

Only available on StudyMode
  • Download(s) : 316
  • Published : October 6, 2011
Open Document
Text Preview
Wine Tourism
WTM Individual projectDue Date:7th Oct, 2011 Subject Code: THS3WTMTutorial Time: Friday 12:00-1:00 Tutor Name:Maree TameStudent Name: Yang GaoStudent Number: 15946562Word Count:2016 |

Table of Contents

1.0 Executive Summary …………………………………………………………………..3
2.0 Introduction……………………………………………………………………...4
3.0 Analysis of characteristics of Chinese wine market ……………………………….5. 3.1Demographics…………………………………………………………………5 3.2 Psychographics characteristics………………………………………………..6 3.3 Usage…………………………………………………………………………6 3.4 Benefit………………………………………………………………………..7 3.5 Geographic Location...……………………………………………………….7

4.0 Competitors and Difficulties...................................................................................8 5.0 Methods of Avoiding Same Conflict…………………………………………………10 6.0 Conclusions……………………………………………………………………………12. 7.0 References……………………………………………………………………………..13 8.0 Appendices………………………………………………………………………….….15

1.0 Executive Summary

This report concerns about positioning strategy for Penfolds winery. It mainly focuses on the possible positioning strategy in China.

The first part will make a brief introduction about Penfolds winery and the wine market in China. The analysis of characteristics of Chinese wine market will discuss in the second section, which including demographics、psychographics、usage、benefit、geographic location. Thirdly,the report will focus on the competitors of penfolds in China,and the difficulties that it will need to be overcame. Next, this report will discuss some possible national strategy for positioning Penfolds’ wine in Chinese market. The last part of this report is a conclusion.

2.0 Introduction

Penfolds is an Australian wine producer, founded in 1844 by Dr. Christopher Rawson Penfold. It is one of Australia's oldest wineries and a company brand with an extensive product range. Penfolds runs several vineyards in Adelaide and Barossa Valley that produce many different grape varieties,such as shiraz, cabernet sauvignon, grenache, semillon, chardonnay. In 2006, Penfolds was shortlisted as one of 10 Australian favorite brands. Besides, penfolds’ reputation has been well-recognized over its 165 year history and spans the entire array of wines produced. Chinese wine market has entered the high-speed growth stage in recent years。 In 2009, Chinese wine production amounted to 960,000 kiloliters, rising by 37.48% YOY,and in the same year, the import volume and value amounted to 171,231,332 liters and USD 441,697,229, increasing by 4.93% YOY and 22.91% YOY respectively. In 2009, Chinese import volume and value of bottled wine (no more than 2 liters each) reached 91,025 kiloliters and USD 377.11 million, rising by 58.3% YOY and 36.7% YOY separately. In the previous four months of 2010, Chinese import volume and value of bottled wine came up to 41,809.10 kiloliters and USD 177.51 million, growing by 76.5% YOY and 91.1% YOY respectively (Gu. E, 2010). There is no doubt that China has a huge wine market and future development prospects are bright

3.0 Analysis of characteristics of Chinese wine market
3.1 Demographics:
In China, the generation Y, especially means that people whom born from 1980 to 1990 (Brandt, 2005; Madden, 2005; McEwan et al., 2006) are called post-80s, they are approximately reached 240 million, and this generation growing up in modern China, and has been characterized by its optimism for the future, newfound excitement for consumerism, entrepreneurship, and acceptance of its historic role in transforming modern China into an economic superpower. They are more welcoming western cultures and less traditional. Most of the post-80s are between ages 20 to 30 who earns between 2000 to 10000 CNY (350-1500 AUD) per month, and has college degree (J. Murphy, F. Liu, N. Collins, 2009). In this generation, there is a group of people called “xiaozi”, which means they have strong willing to follow and purchase western products or values; they are...
tracking img