Brl Hardy Analysis

Topics: Marketing, Wine, Brand Pages: 12 (3684 words) Published: July 19, 2013
Integrative Case
Group 6
Leslie SosaJuly, 1st 2010
Christophe Delachanal
Sébastien Lacour
Charbel Makhoul

BRL Hardy
Globalizing an Australian Wine Company

* Table of Content
2Hardy & BRL Merger & Acquisition Success Analysis5
2.1Wine Industry – Porter Forces Analysis5
2.2Pre-M&A Conditions - Evaluation6
2.3Post Merger Management6
3The “Stephen Davies & Christopher Carlson” Case8
3.1Sources of Tension8
3.2Steve Millar: Management of The Situation9
3.3Reflecting the situation – Global Management Teams9
4New Product Launch: D’instinto10
4.1Evaluation of the Business Case10
7.1Hardy & BRL: Differences & Fit13

This document presents the case study of BRL Hardy: Globalizing an Australian Wine Company (REF), performed by Group 6.

Hardy & BRL Merger & Acquisition Success Analysis
The remarkable post merger success is mainly based on three main key factors. The first key factor is the external environment. The Porter forces will describe and analyse the environmental matter. The pre and post merger decisions are another factor that the businesses endured that allowed them to align their goals and strategy for a successful future. (detailed in the following paragraphs). Wine Industry – Porter Forces Analysis

Bargaining power of customers, High 5/5
Customers buying this type of wine and don’t have a cultural knowledge of real one such as Côte-Rôtie, Cheval Blanc or Romanée Conti can switch easily form on brand to another. Customers might be use to a grape variety such as merlot or Cabernet Sauvignon but they don’t have an idea about land where the vineyard has been cultivated and the culture associated to it. Customers buy this type wine because it’s cheap, easy to drink, and they can make an analogy with the global non tasty international food that is appreciated by the majority party of the world. There is neither a switching cost for customers nor a risk for customers to choose another similar brand, especially taking into consideration that there are numerous players and wine producers. One of the beneficial aspects about Australian wine is that it was becoming highly fancy and ‘fashion driven’, becoming trendy they were able to sell at a higher price than other nations. The consolidation and rationalization increased the power of wine wholesalers and retailers. In addition, in countries such as Sweden, Canada, there are monopolies from the state which gives them strong power. In England the big Super Markets control most of the market and dominate the import businesses. Bargaining power of suppliers, High 4/5

Depending on the contract, it can be easy for suppliers to sell production to another company; this is why a strategy for having a strong Joint Venture with a producer is important. It’s also difficult for the vintage to ensure sustainable quality on the grapes produced. Threat of substitutes, Medium 3/5

In Australia and others country such as England, there are some changes in consumer habits. Moving from beer to wine consumption increases domestic consumption. This trend could change as wine is perceived as containing more alcohol than beer. On the market for ‘young drinker’ Alcopops such as ‘Ice Smirnoff’ represents a big share of the market Threat of new entrants, low 2/5

The industry and value chain associated to new entries is complex and very difficult to infiltrate, especially taking into consideration the strong concentration and consolidation that occurs. The 10 largest companies have 84% of the grape crush and 4 companies control 75% of domestic branded sales Rivalry among current competitors, High 5/5

The competition among players is really high and because of Alcohol perception, wine consumption...

References: Culture/Values | Polite and traditional | Aggressive and commercial |
| Family ownership“Thomas Hardy & Sons”(1853) | Cooperative(1916: 1st cooperative winery, 130
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