Wine Industry

Topics: Wine, Terroir, Cabernet Sauvignon Pages: 9 (2607 words) Published: April 30, 2011
Table of Contents

Executive Summary

Reason for going oversea and entering British Market
Strategy analysis
3.1 Innovation of Banrock Station in Great Britain
3.2 Standardization of Bordeaux in Great Britain


Table List

Graph 1: The Product Lifecycle of Banrock Station in 2007

Graph 2: The Object, Strategy and Tactic of Bordeaux wine

External environment

Increase sale cost leadership marketing mix
Go to the UK (same products
Increase market share & promotion)

Executive summary

The analysis provides information on the two international wine brands (Banrock Station and Bordeaux) that from different kinds of world wine producers, New World and Old World, enter into the same market of the United Kingdom. Also, this report analysis why these wine corporations go to oversea, why choose England, and how achieve success in England applying Global-Local Model to judge which strategy the companies adopt. In addition, this report focusing on marketing.

Banrock Station expands global market because of the saturate Australian wine market. The report apply the product lifecycle to explain this, and apply the object, strategy and tactic model to analysis why Bordeaux wine export internationally and why expand wine market in England in order to improve the consumption by volume and value terms and increase profits. Then, this report also explain the reasons why Banrock Station choose British market by PESTEL model, and analysis political, economic and law aspects in detail.

Banrock Station Company focuses on the innovation which involves conservation projects and Eco-mate packaging to sustain its competitive advantages. Nevertheless, Bordeaux wine choose standardize more than adapt in two specific areas: promotion and product.

1. Introduction
The worldwide wine industry is divided into two parts: Old world and new world. Old world wineries are "Characterised by long-established and relatively unchanging methods and location of wine production" mentioned by Glenn and John (2009). France, England, Italy, Germany belong to Old World wineries. On the contrary, the New World wineries appreciate new technology and non-natural chemicals. Australia, New Zealand, North America, South Africa, Chile and Argentina are named New World wine makers (Anderson, 2003).

Banrock Station is located in Kingston-on Murray, in South Australia. Banrock Station was set up in 1994, as one part of Hardy Wine Company (Nature's a big winner at the station, 2005). The property of the company includes approximately 1,068 hectares of floodplain and wetland, as well as 307 hectares of woodland buffer. Today, Banrock Station, not only is one of the most well-liked brands in Australia, but also is the label which is growing fast in the United Kingdom. In addition, this company exports wines to more than 50 countries in the world, such as the United States of America, Italy, Canada, Japan, France, Spain and China.

Bordeaux wine is a global brand from France. In the Bordeaux vineyard, there are 60 Appellation d'Origine Controlee (AOC), which is judged the largest French A.O.C wine region. Bordeaux wine comprises numerous popular wine brand, for instance, Malbec, Merlot, Cabernet Sauvignon, Cabernet Franc and Semillion. Each Bordeaux wine has its own character. Blending drives persistent flavour and overall quality. "In the case of aromas, hundreds of active molecules in the wine interact during the blending process to create a new wine with a complexity, delicacy, and richness that surpass by far the simple addition of the characteristics of each of the assembled wines" (

2. The Reason for going oversea and entering British wine market Now, Australia has been the fourth largest nation exporting wine, followed by France,...
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