Definition of Product and Target Country
For this study, I chose red and white wine, and I’ll start with 3 country options to sell it, let’s say Germany, UK and Brazil.
In my point of view, for a successful international trade, some things are mandatory, such as the product, the customer target, the place where it’s going to be sell, and the costs of it, how much will it cost for the customer.
The strategy of the product is to emphasis the quality of it, we’ll be in competition with European, Chilean and Asian wines. This kind of wine is meant to be appreciate by lovers of wine, people who can afford AU$ 30 up to AU$ 60 for a good wine.
Since I decided the product, the next step is to find the target market for it! Among the 3 countries selected, I’ll eliminate Brazil first, for 3 reasons, first it’s too far, which increase the cost of it, second the price range isn’t the best wine market there, and its also seasonal product, most of it drunk during the winter.
Now to decide between UK and Germany I’ll request for some statistics to help me, Australia had sold last year 27 thousands litres to Germany for AU$ 51,4 MILL, and for UK it was 265 thousands litres for AU$ 723 MILL, so the price is proportionally higher in UK, and since both countries are similar in development and distance I’ll chose UK because of the language, the unit price of a bottle and the size of the market.
My research for the UK market must have a deep level of information about the customer wine habits of the selected target market, focusing in the consumption of wine and finding the appropriate transportation, marketing strategies for reaching the costumers.
For understanding better the wine market in UK another field of research is the competitors in this market, including identification of brands, prices, since it’s the biggest European market for Australian wine the competition is a... [continues]
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