Tanunda winery Table of Contents Table of Contents 2 Executive Summary 3 Introduction 4 Problem Statement 4 Key Issues 4 Data Analysis 6 Alternatives Considered 7 Recommendations and Rationale 8 Action and Implementation Plan 9 Work Cited 11 Executive Summary This report basically explains the problems and issues arising with the exports of Tanunda Winery…
The alternatives available, recommendations, and action and implementation plan for Tanunda Winery. Introduction The Tanunda Winery, one of the leading mid-sized wineries in Australia, was located in the Barossa Valley of South Australia. A young Australian-trained winemaker, Colin MacIntosh had started it in 1976. The Tanunda Winery started producing a range of red and white wines that were speedily gaining acceptance in the marketplace by 1985. The company had established a solid reputation in Australia as a consistent manufacturer of high-quality premium table wines. The company was known for its marketing skills. The company had been successful in generating revenues domestically but did not succeed in the international markets due to lack of an export strategy. There existed an ample opportunity for the company to enter the international markets. Problem Statement The main area of concern was to find way into the International markets so that Tanunda Winery could sell their quality table wines and increase their volumes. It was difficult to find which markets to precisely target. In the given case, the marketing manager of Tanunda Winery had been given an assignment to evaluate the feasibility of launching a major export drive. Key Issues The Tanunda Winery was successful in Australia but did not achieve success in international markets. The reason being it is an Australian company producing quality table wines and people worldwide hardly know about Australia as a producer of wine. The senior management group decided in a strategic meeting held in early 2000 that a substantial growth opportunity existed in export markets and therefore George Steen, the marketing manager started preparing for a feasibility study for the next strategy meeting. On forecasts of a very positive environment in several export markets by the Australian wine industry report, George found it as an opportunity to enter foreign markets in a big way. The major concern of Bruce Clark, the general manager, was about the ability of entering worldwide markets and making profits because of severe competition from the old-world countries such as Italy, Spain, and France who are experts at producing well-recognized wines with huge volumes and value-pricing. Their main concern was to catch up with which markets to sell large volumes of wine. The recognition could be done via the Olympic Games to be held in Sydney. The marketing efforts led to increase in profits but the rate of increase was declining as well as the average returns which is measured by profits as a percentage of sales. In the previous two years, Tanunda was a passive exporter that is it did not make much effort in drawing wine importers and did not have any export strategy. The domestic sales which also marginally and an unpredictable sales pattern in the bottled table wine market was also an area of concern for Tanunda Winery. Ageing population in Australia led to stability in the wine markets domestically. The stability in the Australian markets was also a concern which pushed them to expand their international markets. Rising mergers and acquisitions in the early 1990s was a growing concern or issue for the mid-sized companies. The small companies joined hands with bigger companies and therefore increase the bigger companies’ portfolio of products. It was becoming difficult for mid-sized companie ...
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