Strategic management assignment essay help on: Essay on Strategic management on South Australian winery

Introduction

This paper will provide all the key essential information that will provide and focuses on all the required information about the South Australian winery in the area of overall strategic marketing plan. This paper will be divided in different sections that will cover all the required information that will focuses on all the key aspects and essential topics which will provide complete visibility of the overall strategic marketing plan of the selected organization South Australian winery. To provide all the key information about the required topic that needs to discussed in the below section the paper will discuss the following topics in the below sections which will provide new scope of opportunities and scope of improvement in the existing and potential overall strategic marketing strategies. In the below sections the report will discuss the following topics in the respective manner: a) Situational analysis that will describe the external and internal business, organizational and market environment that consist Economic forces, Socio cultural forces, Political-legal forces, Technological forces, Natural environment forces, existing and potential market review, competitive review, distribution channels and buyers, end users customers and key suppliers that will provide all the key essential information in the area of scope that will focuses on the new opportunities to enhance and expand the business in terms of effectiveness and level of efficiency in the market. This section will also help to identify and address the existing and potential issues, challenges and problems that will help in the area of scope of improvement. In this section the report will also discuss about the key competitor Western wine (Vasse Felix cabernet merlot and Vasse felix Chardonnay) and products’ category (i) Red grapes and (ii) White grapes and its different brands within red grapes category: Shiraz, Merlot, Grenache , Pinot Noir, Mourvedre and Other red. This section will also discuss Chardonnay, Semillon, Riesling and Other white within white grapes category. b) In the further section the report will discuss and present the information of the success critical factors that will create in depth discussion that will describe and provide information which involve summary of business, organization and new market opportunities and also provide the summary of threats to understand and identify the  scope of improvement areas to create new opportunities and cater the overall market in effective and efficient manner to enhance the overall business of South Australian winery. These sections will focuses and discuss all the key essential areas that will provide in summarizing the information about opportunities and threats for new scope. C) in the next section the report will discusses about situational analysis that will present and provide in depth descriptive information of the internal capabilities of the selected organization” south Australian winery” in terms of Non-marketing capabilities that will focuses on the area of operation and other key departmental activities will present the overall effectiveness and level of efficient. This section will also involve marketing capabilities- management and marketing strategies and performance that provide range of information about existing and potential overall strategies that south Australian winery is using and plan to use in the future and focus on the require improvement that will increase the level of the efficiency and overall effectiveness of the products and services in the existing and potential market. In the further key sections the report will present the problem and opportunity statement, marketing objective and required level of marketing strategies, marketing mix strategies, budget, and implementation plan and factors that will provide evaluation and control process. The South Australian wines started its journey in 2003 on the basis of good reposes, in depth knowledge of the industry, successful sales in the respective outlets, Nidderdale fine wines that established in March 2000. The south Australian wines are famous and known for specialization in the area of natural progression as the company has numerous personal contacts that involve winemakers, growers, owners, managers and human resources that are working in all aspects of the industry. In 2004-2005 the south Australian wines won numerous awards for its quality products and services.

Situation Analysis

Business definition and scope

Mission statement(s)

 The mission of South Australian winery is to contribute to the measurable way of ongoing success with respect to Australian wine industry.

This also creates the vision to deliver the high values to the Australian wine industry and it leads with the world-class research for proper integrated solutions and to provide the important leadership with the help of research activities and other Australian wine industry.

This provides the mission to deal with integrated solutions and to provide the thoughts of leadership with the important areas of understanding. This will create the unique development of extending knowledge base and it will focus on contributing the substantial stakeholders to achieve their needs.

These values importantly deal with the scientific integrity and excellence with the culture of proper outcomes and internal as well as external collaboration with respect to Australian wine industry and industry driven. (Awri.com, 2012)

The important mission is to grow the franchise for the Australian wine to achieve by the year 2010 annual sales of 5$ billion and at the high rate of average margin with the enhanced values of the brand.

Product definition

The industry focuses on certain important designations such as:-

Fortified wine/dessert wine/aperitif white/Liqueur white

Australian fortified wine/Australian dessert wine/Australian aperitif white/Australian Liqueur white

These products are prohibited for international markets and it is prohibited with wine labelling. This may be used in country like United States and it is used in the wine labelling. (Sheales, 2006)

Thus Dessert wine might be used in United States as the designation of the class for grape vine with the content of alcohol greater than 14% and less than 24%. It allows regulations and the Liqueur is associated with distilled spirit products. Apera describes the style of fortified wine that ranges from the dry to very sweet style. It is fortified with grapes, spirit, brandy and both the style. The styles of apera are initially dry and with the help of sweetness, it will add its flavour later. This is produced with the different variety of styles and it ranges from dry versions i.e. the pale amber colour to sweeter and sometime it is seen as the dark brown styles.

The cream is described as the Australian fortified wine that is sweet in taste and it is pale yellow in colour. It is rich and sweet in taste as well as it consist of grape spirit and brandy and both.

Tawny is known well as the style of Australian fortified that receives the years of ageing prior to bottling. It is red gold in colour and it develops the character of fresh fruits. This wine also is blended with more than one vintage and it will be matured in oak containers and it reaches the optimal age before sale. It must be from grape spirit, brandy or both.

Vintage describes the style of Australian wine that is produced from the single year of vintage. The high quality wines are characterised with relatively long periods of bottle maturation. It is generally deep in colour and it is fully bodied with smooth features. It is entitled to bear the designation vintage and the corresponding year. It carries the ability to improve the age in bottle and to benefit it from prolonged cellaring. These wines are aged for the minimum of twenty months and it carries the grape spirit, brandy and both.

Ruby is the wine that receives the age of few years of bottling. It retains the deep ruby colour and also it is robust in terms of its character.

Muscat juice is fermented with the desired level of baume and the grape spirit is added towards it.

Flavoured wines are known as vermouth and Marsala that are designated with the Australian flavoured fortified wine. (Wittwer & Anderson, 2003)

At the industry level (total of all product categories):

Wine is the culture in the glass with respect to sensory excitement and the product from hundreds of years of refinement. Australian wine is described as the most important range of brand personalities. It defines the unique appeal to the Australian wine. Thus people who are engaged in wine drinkers with new wines create the new stories about the people to make them the best places.

At each product category level

Consumer preferences are shifted in recent years and it deals with high quality. It is flavoured and easier to understand and access and it is presented in a stylish manner. This wine deals with the trading up and new drinkers that are being attracted to wine. The proposition of wine is being redefined with the special occasion to everyday from the beverages as well as the aspiration product. This increases the radical shift in the composition of the demand of wine that is reflected towards the growth of the premium and the super premium segments of market at the expense of the basic segment. There are number of structural trends that drive the increased demand of the premium wine and the economic conditions. This increases the affluence and the personal wealth on the global basis has been the

Product categories targeted by our organisation and our products competing in those categories

Product category	Product category	Competitors’ products
Red grapes	White grapes	Western Australian wines
Shiraz	Chardonnay	Vasse Felix cabernet merlot
Merlot	Semillon	Vasse felix Chardonnay
Grenache	Riesling
Pinot Noir	Other white
Mourvedre
Other red

Source: (Majestic.co.uk, 2012)

Competitors and their products competing in these product categories:

Competitors	Competing products
Western Australia	Mad fish ranges
	Original series
	Sideways
	Grandstand
	Gold turtle
	Other varietals
	Sparkling

Source: (Burchfamilywines.com, 2012)

The market – Customers (end users) – for the product categories targeted by our organisation

Australian wine has won the international reputation of high quality and high value. It have taken the key international awards so as it competes against the favourable and longer established national wine industries. This produce the full range of flavoured wine styles from full bodied reds and deep fruity whites to the sparkling and the dessert style. The most popular Shiraz will be targeted by the organization because it is mostly preferred by Australians and target group of consumers. It refers to the type of grape and it is made up from the mixture of wine. It produces red wine and grows better in Australia. (Boyer, 2012)

Scope

Australia is able to deliver high quality and high value products to its customers. It develops success through the help of following reasons such as:-

Good supply chain: Australia is able to consistently deliver the product with high quality and high value. It develops the excellent choice at the given price. It has also the competitive advantage with the help of natural resources as well as environment. Thus there is encouragement of better food with respect to expansion.

Flexible practices: They allow developing the experimentation of new things. They also encourage the development of fruit styles and growth of new wine drinkers thus there are huge scope with these practices.

Brand: The South Australian winery has the strong infrastructure in the winemakers and research institutions. It is free from regulatory and close working relationships are associated with food and tourism. Thus there are high scope associated with innovative packaging and with the help of marketing and other terms. (Austrade.gov, 2008)

External environment – remote environment

Economic forces

Scenario

The success of Australian wine industry is documented well and with respect to consumer preferences as well as taste, the trends may be slow and it may also deal with younger generations. According to the data, there is decline in the consumption of wine with new consuming industries.

Implications

Opportunities	Rating*	Threats	Rating*
Stability for growth rate Better job opportunities No changes Build strong image and reputation Increase in productivity	1 2 3 4 5	Inflation Unemployment Exchange rates Kyoto agreement Challenges of recession	1 2 3 4 5

Socio cultural forces

Scenario

The online education platform is designed to perform the information on the basis of marketing & enjoyment of wine.

There is major social contribution of wine industry in the health of the public.

Implications

Opportunities	Rating*	Threats	Rating*
Social class Training Expansion with online awareness Encouragement Skill enhancement	1 2 3 4 5	Health conscious Sports is the major focus Financial planning Income group Lack of awareness / communication in low income group	1 2 3 4 5

Source: (Iwa.gov.au, 2012)

Political or legal forces

South Australia is the fifth largest economy in Australia. There are largest producer and exporter of wine.

Scenario

 Implications

Opportunities	Rating*	Threats	Rating*
High capital R&D High skill level Tax reform policy Labour productivity	1 2 3 4 5	Low level of investment Poor training Poor communication Lack of awareness Lack of innovation	1 2 3 4 5

Technological forces

Scenario

Today there is increase in the field of technology and this improves the level of innovation so as the government is increasing the fund for research and development and also there is an innovation in terms of ICT.

The new products in the market are as discussed below:-

The style of packaging and also distributing has been done on the basis of advanced technology. This has created the importance of priority so as also the flexibility. Therefore new varieties are coming in the minds of the customer so as it also creates the importance of high amount of opportunity.

Implications

Opportunities	Rating*	Threats	Rating*
High quality, high price (with advanced technology)

Increase in sales

Increase in awareness

Strong growth and revenue

Better innovation & R&D

 

1

 

2

3

4

5

 

Investment

Competitors R&D

Competitor’s technology

Decline in sales

Un-sustainability

1

2

3

4

5

 

 

Source: (Nipe, 2010)

External environment – near environment

Market review

Description

There is high potential in terms of market review. In the area of product and services, this is with respect to consumption meeting existing and potential customers.

Implications

Opportunities	Rating*	Threats	Rating*
Consumption Opportunities New region Western Australia New expansion·	1 2 3 4 5	Competitor Western Australia Health sector Profession Potential ·	1 2 3 4 5

Competitive review

Description

The major competitor of South Australian winery is known as West Australian winery. They compile the directory of about 400 West Australia wine producers. They provide the regular selection of updated varietal styles and also they are listed as the most achievable wines of the week, month and the year. There major objective is to create the forum of Australian wines to become the best known and to provide the best assistance of an understanding of wines in the West Australia.

Implications

Opportunities	Rating*	Threats	Rating*
Expansion is possible Premium brand Premium quality Best image Creation of awareness	1 2 3 4 5	South Australian winery Competitor’s increase in variety Increase in awareness of competitor Increase in the communication skills and tools Use of advanced technology	1 2 3 4 5

Source: (Westaustralianwine.com, 2012)

Distribution channels and buyers (intermediary customers)

Description

The wine is almost consumed within 24 hours of purchase and the buying decision of people depends on the convenience, affordability and reliability of the buyer. The supermarket chains offer the high volume of sales and also in the generally cheap cost. The non-traditional outlets also increase the sales in the large number. This offers high advantages with the help of high knowledge and access to wine producers. Thus the supermarkets are the best places to distribute the wine and to attract as well as to create awareness among the customers. (Wineaustralia.com, 2012)

Implications

Opportunities	Rating*	Threats	Rating*
Wide range of customers Direct sales Each channel Market popular brands Increase the channel	1 2 3 4 5	Retailers Small shops Direct retailers Internet Direct mail	1 2 3 4 5

End-user customers

Description

Customers look for product that strengthens the relations of the consumer and it helps the consumer to look for different kind of prices, features, quality of the products. There is a requirement to understand the taste and preference of the consumer to provide them high quality products. So, the first step should be to build the brand image and to develop the importance of product with high quality products. This will add high value in front of consumers.

Implications

Opportunities	Rating*	Threats	Rating*
High quality will lead to expansion Generation of sales Build brand image and reputation Customer loyalty Innovation	1 2 3 4 5	Customers Australian producers Insight team Innovation network Consumer adoption	1 2 3 4 5

Supply

Description

This industry supplies the dynamic growth in terms of Australian wine industry. This increases the opportunity to seek the export products and to meet with the services to generate new business.

Implications

Opportunities	Rating*	Threats	Rating*
Increase in regions Buying intensity Distinctive characteristics Style Price	1 2 3 4 5	Competitor expansion Competitor’s timely delivery Commitment Competitor analysis Competitor differences	1 2 3 4 5

Critical success factors (CSFs)

The major competitor of South Australian winery is known as West Australian winery. They compile the directory of about 400 West Australia wine producers. They provide the regular selection of updated varietal styles and also they are listed as the most achievable wines of the week, month and the year. There major objective is to create the forum of Australian wines to become the best known and to provide the best assistance of an understanding of wines in the West Australia.

Summary of opportunities

As the south Australian wines deals in the area of products and services of wines and famous for natural progression as the organization has wide networks in the industry. As well as the south Australian wines is a great stockiest that have wide range of good wines from South Australia. The organization is providing its services in the area of host regular winemaker’ dinners and tasting. In this way the organization has great opportunity in the area of new market “Western Australia to expand its overall operation to provide products and services in the Western Australia. The South Australian wine also expands and enters its business in the area of quality control of the available wine products and services in the market.

		Significance of opportunity
		High	Low
Probability of occurrence	High	Expansion is possible	Creation of awareness
	Low	Premium brand	Best image

Summary of threats

		Significance of threat
		High	Low
Probability of occurrence	High	Health conscious Sports is the major focus	Competitors R&D Competitor’s technology Decline in sales
	Low	Lack of awareness / communication in low income group	Financial planning Income group

 

Situation analysis – Internal capabilities

Non-marketing capabilities

(Financial position, management & leadership, HRM, R&D, operations—production capabilities and supply, inter-functional coordination & responsiveness and competitive position)

Review

The South Australian winery has strong dedicated platforms for the knowledge and transformation of relevant technologies with the help of proper foundation of future growth. This industry has the capability of sustainable competitive advantage and it meets with the consistent needs of the customer. Managers make decisions with the help of allocation of resources and also with the help of the advantages of value chain analysis so as the people interacts in the proper manner and it meets with the collaborative innovation. It also meets with the business process innovation. This helps to determine the structure and process of the business with respect to investment.

The company hire the most talented employee so that they remain confident for better quality and high amount of services.

Implications

Strengths	Rating	Weaknesses	Rating
Employees Training and development Manpower are highly talented that create effective business Focuses on quality control and organize number of events that support quality control activities Largest stockiest Wide range of products	1 2 3 4 5	Low R&D Financial planning Lack of communication Lack of awareness Investment ·	1 2 3 4 5

Marketing capabilities – Management

(Marketing organisation, market intelligence, marketing planning and marketing control process)

Review

Consumer preferences are given high priority and it deals with high quality. It is flavoured and easier to understand and access and it is presented in a stylish manner. This wine deals with the trading up and new drinkers that are being attracted to wine. The proposition of wine is being redefined with the special occasion to everyday from the beverages as well as the aspiration product. This increases the radical shift in the composition of the demand of wine that is reflected towards the growth of the premium and the super premium segments of market at the expense of the basic segment.

Implications

Strengths	Rating	Weaknesses	Rating
High quality Training and development Wide range of products Premium segment Better varieties	1 2 3 4 5	Low R&D Financial planning Lack of communication Lack of awareness Investment ·	1 2 3 4 5

Marketing capabilities – Marketing strategies and performance

(Marketing strategies and marketing performance)

Review

The company deals with customer focus to know and to understand the importance of proper planning so as to meet with the important areas of high quality and better focus.

Implications

Strengths	Rating	Weaknesses	Rating
High quality Better technology Wide range of products Premium segment Communication tools	1 2 3 4 5	Low R&D Financial planning Lack of communication Lack of awareness Investment ·	1 2 3 4 5

 

 

 

 

 

 Problems and opportunities statement

1          The business unit’s capabilities in relation to critical success factors

CSF	Our capabilities
·	·
·	·
The major competitor of South Australian winery is known as West Australian winery. They compile the directory of about 400 West Australia wine producers. They provide the regular selection of updated varietal styles and also they are listed as the most achievable wines of the week, month and the year. There major objective is to create the forum of Australian wines to become the best known and to provide the best assistance of an understanding of wines in the West Australia.

·The south Australian winery deals with transformation of relevant technologies with the help of proper foundation of future growth. This industry has the capability of sustainable competitive advantage and it meets with the consistent needs of the customer. Managers make decisions with the help of allocation of resources and also with the help of the advantages of value chain analysis so as the people interacts in the proper manner and it meets with the collaborative innovation. It also meets with the business process innovation. This helps to determine the structure and process of the business with respect to investment. The company hire the most talented employee so that they remain confident for better quality and high amount of services.

·

·

 

 2          Opportunities for the business unit to exploit with existing capabilities

There is a great opportunity to expand the market in West Australian winery market with the existing capabilities.

3          Opportunities for the business unit to exploit with improved capabilities

There is a great opportunity to deal with proper R&D and consumer research to expand the market in new regions.

 4          Threats that must be addressed

As discussed above, the major threats are competitors, their technologies and other advancements.

 

Marketing objectives and higher-level marketing strategies

Marketing objectives

	year 1	year 2	year 3
Revenue	2508268.561	2792670.624	2876450.743
Objectives	Sales increment	sales increment	sales increment
Gross profit	0.25	0.27	0.28
margin	25	27	28
Net profit	0.036465403	0.037744733	0.051960168
Margin	34	37	51

Product-market strategies

Existing products in existing markets (Market penetration) Existing products in new markets (Market development) New products in existing markets (NPD) New products in new market segments (Related diversification) Total	Red wine ______________  Red wine ______________  Shiraj ______________  Australia ______________ ______________	White wine ______________  White wine ______________ ______________ ______________ ______________	Other wine ______________  Other wine ______________ ______________ ______________ ______________

Rationale

 To achieve the mission and objectives

Marketing mix strategies

Summary

Market segment 1	Market segment 2	Market segment 3
Expansion through their Own Outlets	Places Emerging markets	As per the requirements
Create awareness	Employees	Immediate
Advantages	Organization	Immediate
Product expansion	Organization	Immediate
Market research	Target place and audience	As soon as possible to create positive market

Integrated marketing communication (IMC) strategies include advertising, sales promotion,  salesforce, marketing PR, database marketing and event marketing

Marketing mix strategies for segment

Segment description

 Products/brands servicing this segment

 Product/brand positioning

Proposed marketing mix strategies

This section will cover the four important P’s of marketing such as:-

1. Product: The product is known specially as the wine.
2. Price: The price of this product will be not less than 1000$ and it will be useful for long term.
3. Place: The defined available place of this product will be the metropolitan cities as well as other two tier cities.
4. Promotion: The product will focus on introducing new variety of products with different approaches.

Budget

Marketing Budgeting for one year
Marketing Expense Budget	Jan-Jun	Jul-Dec
Advertising	33800.54	27654.99
Catalogue	6760.11	5531.00
Website	6760.11	5531.00
Promotions	25688.41	21017.79
Services	40560.65	33185.98
Other	13520.22	11061.99

 

Implementation plan

Marketing activity

Tasks to complete

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Organized events in offices, malls

Quarterly and annually basis

Event day

Event day

Event day

Major event

Sponsors

Quarterly and annually basis

Sponsor day

Sponsor day

Sponsor day

Annual sponsor

Product promotion and awareness in un-structured market

At the time of new product launch

No specific time line, introduce as per requirement.

Evaluation and control processes

What is to be measured	How it is to be measured	Data source	When it is to be measured
Organized events in offices & malls	Increase product sales in the outlets and filling questionnaires about sources of awareness	Market research	Initial month
Sponsors	Sales increment within the defined area	Consumer	Half-yearly
Product promotion and awareness in un-structured market	Through sales and customer feedback and responses.	Word of mouth, communication tools	Regularly

Conclusion

To conclude, there has been the proper implementation of the marketing plan with the help of certain sources.

The ideas, strategies, implementation, actions and evaluations have been covered in the overall discussion of the paper.

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