Introduction
Since, past many years, the wine industry is considered as the one of the top most leading industries all around the world. In the past centuries, the wine was known to be a product from Europe. But, in the last few years, the consumption of wine in the market of Europe has decreased. On the other hand, in the last few years, the consumption of wine has increased and it’s continuously increasing in some Asian countries like; Korea, Japan, China and many more and these Asian countries have emerged as prominent exporters of wine in different parts of the world (EUSME Centre, 2011). In this context, the main aim of this report is to conduct the market research and analyzing the effectiveness of the selected market (China) for the selling of wines by Million Hill Family Estate.
Product Choice
Introduction to the Company (Mission Hill Family Estate)
Mission Hill Winery had been established by Proprietor Anthony Von Mandl in the year 1981. The estate of Mission Hill Winery is located in Okanagan Valley which is known as the heart of British Columbia. The wines of Mission Hill are very famous among the people and the wines have won various awards for their red and white wines (Decanter World Wine Awards, 2013). The other attraction for the wine among the customers at Mission Hills is because of its spectacular and distinct setting. The mission of the Mission Hill Winery is to provide the customers with the best quality wines and to make the journey of the guests interesting with full of surprises and delights as all the best quality wines are available at the Wine Boutique of Mission Hill (Mission Hill Family Estate, n.d.). The major values for the company which are followed by every member of the company are; to provide the best service, best quality wines and sustainable products, protect the land and environmental friendly.
The wines manufactured by Mission Hill have successfully targeted a large market share and the company is successful in doing this because of its various strengths and competitive advantage. One of the most important strengths and competitive advantage of wines by Mission Hill is that the company manufactures the wines by keeping in mind the latest trends in the market and the demand of the customers but also include the special touch of the old world which helps the company in gaining the trust of the customers (Mission Hill Family Estate, n.d.).
The company uses the fresh raw materials for the manufacturing of wines which also include vegetables and herbs for the manufacturing of best quality and sustainable wines (Mission Hill Family Estate, n.d.). The other strength is that the company does not provide any harm to the environment and thus, use recyclable and eco friendly papers for packaging. In the same manner, the major weakness of the company is that it is unable to target the customers outside Canada which is killing the business of wine for the company (Mission Hill Family Estate, n.d.). The company is not shipping its wines outside Canada because of the duty regulations and international customs and to overcome this weakness, the company is planning to export its products to China.
Apart from the manufacturing and selling of wines, the company also deals in different sectors like; terrace restaurant, tours and tastings, wine club, organizing different events and many more. Among all these sectors, the company has selected the wine sector for the expansion of the business because wine is the most growing industry and the demand for wine is growing at a very good rate. As the company has selected China as the perfect market for expansion but for the expansion the company needs to face the competition from different competitors who are already established in the China market (Pingali, 2011). The major competitors are; SABMiller plc, Beijing Yanjing Beer Group Corp., Molson Coors Brewing Co. and many more.
Country Profile
A study has presented that dry red wines represent about 68 % of consumption in China (Chevalier & Lu, 2011). Some key factors that attract the foreign market to invest in China includes luxury market development, the third largest state after the U.S.A. and Japan in luxury, existence of foreign companies with a good success, a huge and energetic population, eight biggest wine consuming country in the world and the growing market up to 30 % per annum (Chevalier, &Lu, 2011).
There is a lot of potential for Mission Hill Winery in Chinese Market as the rapid growth of the market area in china, the increasing Chinese capital market, great human power and thirst for red wine. The foreign direct investment is an important factor for the globalization in the international market. China is one of the successful countries in the world in getting the attraction of foreign investors.
China’s current position in the market is equal to the United States. As a part of the globalization, domestic firms specialize in the size of the product in the global economy. China has a high comparative advantage thus the foreign investment inflows to china become strong. China is attractive for low cost production and china shows some better innovation figures than any other country. China focuses on marketing and sales out sourcing.
It is described earlier in this context that there is a lot of competition for Mission Hill Winery globally and within China. With the objectives of the company it will be quite relevant for the company to work in china. The environmental effects and all other sources that are essential for the survival of the organization are presented there.
With the passing of the years, multinational companies have become acquired with the fact that opportunities for the economic scale of production and competition in the market is a prolong activity. Global marketing strategy involves the formation of strategy for a product or service.
The economic growth in China has led to increase in the income level which has ultimately changed the drinking and eating habits of the individuals and because of this, the individuals prefer to consume foreign made wines rather than local wines. China has noticed the evolvement of pub culture which has also enhanced the consumption of wine (Pingali, 2011).
In addition to this, the percentage of consumption of wine by women in China is also good. In this context, the market selected by the Mission Hill will prove to be quite effective but the company needs to focus on the effective marketing activities to target the customers and to alter their choices. As per the strengths of the company, it is one of the best manufacturers of red wine and this strength will prove to be every effective for targeting the customers in China.
Conclusion
Mountain Hill Family Estate is a famous manufacturer and seller of wines in Canada and it has different strengths which are very effective for expanding its business in any new country. The company has selected China as the target country for exporting the wine to earn more profits. The country selected by the company is very effective but it needs to adopt effective marketing activities.
Last Completed Projects
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