The Factors of BRL Hardy's Post-Merger Success - Case Study Example

? BRL HARDY: GLOBALIZING AN AUSTRALIAN WINE COMPANY What were the factors of BRL Hardy’s post-merger success? Significantly, the merger was expected to bring a lot of success basically because BRL had access to fruit, funds and disciplined management and on the other hand the Hardy had marketing expertise, brands and had a lot of experience when it came to wine making; through this combination much was expected. Some time after the merger the company started of by being a public company which would now put them on the spotlight and hence they would be able to achieve more in terms of marketing, supply and even exploring other companies on a global scale. The merger also strengthened the management of the overall company with the highly experienced executives from BRL taking up most of the higher positions in the administration hierarchy i.e. the CEO, company’s –deputy chairman, directors of operations and the international trading director; all the same, Hardy’s best executives were also not left out with its former managing director and the Australian sales and marketing manager surviving as top executive team directors. From the merger, the company was able to deal with the financial situation that had mostly affected the Hardy though both companies had had a bad previous year. With a lot of effort from the new CEO and the executives, they were able to integrate the two organizations with a management team that was able to execute the required reduction of expenditure and put the company in a position that would lead to development utilizing the vast bulk of profits. Additionally with Millar appointing Steve Davies, a first class strategic marketer, as group marketing and export manager, the BRL Hardy Corporation expanded its export division to regions even abroad successfully. Generally, the company was also able clean up the operating problems (source of financial challenges) by building on the strengths, starting with their strong position in the UK and Australia markets, and also make quality wines for the international market; moreover, the export strategy of the company was built on a strong quality platform that reflected on the brand’s new image, and this was facilitated by the existing broad portfolio of exported products. Appreciably, through the merger Chris Carson was able to recognize the disastrous financial situation of the company that would lead to bankruptcy if not taken care of; and it is from this that as managing director he was able to implement his cost-cutting plan that would later on have a great impact on the company’s success. What is the essence of tensions between Steven Davies and Chris Carson in terms of marketing strategies? Considerably, there are different factors that brought a lot of tension after BRL and Hardy merged, most of which was based on the top most executives who knew that the company’s fate was in their hands and were willing to do anything to prevent its downfall. For instance, once the UK branch decided to go into a joint venture with the Chilean Company, things did not start of well as the Mapocho project was going on very slow and poorly which created a lot of doubts and concerns to its managers i.e. when the costs became high they were asking to renegotiate the price. It got to a point where they claimed that the problem was the BRL Hardy’s winemakers who were not aware of the ways of the Chilean wine hence the poor quality; and as a result they made other commitments that and not include the BRL Hardy Company. In this situation both Carson and Davies had a lot of tension; mainly because the joint venture had turned out to be a failure but the Chilean would not be blamed here since the initial sales were disappointing even to them. Moreover, Davies was worried that Carson was loosing focus since it was also during this time that Carson was putting most of his attention on his proposal about D’istinto which led to him questioning the whole idea and the impact it would have once it hit the market. Would it be successful or would it fail just like Mapocho? Concurrently, with the joint venture being a big disappointment the company was at risk of loosing up to 400, 000 pounds and formerly as they aimed at getting into a commitment with Canepa they prospected a raise of up to 150,000 sales by the next year february like it was in 1998. The overall result created a lot of tension, not only to Carson and Davies but also to the executives in the Reynella headquarters making even those that had not witnessed the company’s losses initially very concerned about the whole Chilean sourcing joint venture and the D’istinto. From the case study, the results of this are said to have made Davies was worried that the new Sicilian line would eliminate Hardy’s two fighting brands from the market; and the only hopes to the company hard in order to counter the matter was the D’istinto that was not yet in the market, whose fate was not known and the proposer’s former project had gone down the drain. What were the chances that this one would not go down the drain either? - The question on every ones’ mind, even Carson himself and thus creating a lot of tension on the company’s fate in the market as time went by. Steve Millars’ criticism on the matter got Carson thinking about the whole and reflecting on the Machopo where the financial investment in the branding, packaging, and launch expenses was relatively small and it is from this instance that Carson understood the real financial risk that could be experienced later in contracts and other forms which brought a lot of tension. Noticeably, Carson relaxed after this and he even surrendered the marketing manager position to Browne. Should D’istinto be launched?  Why yes/no? Appreciably, D’istinto is said to be instinctively (in the sense of the body labels and other packaging designs) and it based on a exceptional reflection built around the lifestyle of the Mediterranean in being zealous, affectionate, passionate, hassle-free and friendly to food: moreover, each bottle is designed to have a small booklet hung on its neck for buyer’s use. Significantly, if looked at from this angle and perspective every person would campaign for it to be launched waiting to have a taste of it; however, if one looks at the company’s current stature they would discouraged it from being launched, for the sake of the company’s reputation and future. Carson’s intention on launching the D’istinto is fairly positive since he aims at making the company known as a first class branding company that will have the capability of leveraging great supply and strong marketing into recognized consumer brands: however, as much as everyone sees the product as astounding the company’s situation can not allow resources to be used on it. Secondly, not professional business executive would allow it to be launched after the have faced the consequences of Carson’s previous work; the Chilean Company’s joint venture spoils it all for the D’istinto. For starters, the Mapocho project that was started a few months ago is currently impacting on the company’s financial status and reputation negatively and yet before solving the consequences of it Carson is proposing that another one be started to counter the company’s limitations. Definitely, launching the D’istinto is more like gambling with the life of the BRL Hardy and all its stakeholders or rather neglecting the efforts of those people that work hard for all those years to get the company where it is. D’istinto is projected to have sales of 160, 000 in the first years of its launching and five hundred thousand in a period of four years and that it would have a global potential What recommendation would you make about Kelly’s Revenge and Banrock Station if you were Carson?  What would you do as Millar? Carson I would recommend for Banrock Station since BRL Hardy companies in Europe and North America put their best effort behind it and the Canadian market is supporting it as they plan to launch it immediately. Additionally, the Banrock Station has been in the market before and has shown that it can have a grave impact on the company’s collective reputation. Most of the companies in different parts of the world are willing to put their resources on the Banrock station like the Canadian market; moreover, the product is loved by consumers and its demand has made some of the management bodies to drop others and focus on this one instead i.e. the United States. 0n the other hand, Kelly’s revenge project is also appealing and looks like if its brought to the market it can also have a great impact; all the same, it is still in the final stage of its development and Europe who are managing it are the only ones in full support of it. Moreover, the reasons they are giving for not backing up Banrock Station are sub-standard i.e. the label is too dull and colorless. Banrock Station is the best at the moment since it can act as a solution to the current problems that the company is having; moreover because it has proved to fair well in the market. Steve Millar If I were Millar I would not engage in the debate (conflict) for which of the two should be moved to the next level; first, because of the conflict that has emerged between him and Browne making him look unprofessional and secondly, as the leader there should be a more orthodox manner to handle such issues. All the same, the right thing to do would be evaluate both products without putting personal issues in the process; furthermore, he should not blame Paul Browne for the companies challenge since he was among the people in the front line to campaign that he be made marketing manager. As the leader of the BRL Hardy Company Millar should consult with the rest of his executives and come up with the right decision on which of the products should be given the first priority. Currently, the decision of going ahead with Banrock station looks like the best but to some point Millar seems to be basing this notion on the fact that they have a disagreement with Browne and that he failed them once he was given the managing post. Considerably, Browne has failed in management as compared to Carson but that does not mean that Kelly’s revenge is terrible. . Read More