The growth in Hong Kong wine market is attributed to the abolishing of the duty on wine by the Hong Kong government. About 40% of the US$ 1.3bn worth of wine traded annually in London is bought by consumers in Hong Kong and China (Franz, 2008). Similarly, according to Parker (2010) a glass of wine raised by a Hong Kong resident is likely to have come from the Australian vineyard. The Australian wine industry considers Hong Kong as a major market. Because of the abolition of duties and taxes on wine in Hong Kong, exports from Australia to Hong Kong has increased manifold. Australia is an important source for high quality beverages including wine for Hong Kong’s restaurants. Hong Kong’s strategy to become the hub for wine trading in the Asian region presents opportunities for the Australian wine producers and for providers of wine-related services, like storage and auctioning (Dfat, 2010). Hong Kong enjoys locational advantage as far as wine auctions in the region are concerned. The total wine auction sales in the region reached $160 million and now along with the United States, Hong Kong has become one of the two most important centers for wine auction (Hong Kong Digest, 2011). This is the reason that Australian wine makers, Brown Brothers, are eyeing Hong Kong to market its products. Hong Kong has the potential to influence trends in the region through events such as Wine and Spirits Fair which attracts audience from mainland China and other countries. Brown Brothers offers the most seasoned and diverse ranges of quality wine. Decrease in taxes makes cheaper wine popular (Asia Travel Tips, 2011). The Hong Kong youth between 21-28 years would prefer cheaper wines as they are yet to be established in life. Thus this study aims to evaluate marketing of wine to this segment. An external environmental analysis would help Brown Bothers understand and formulate the marketing strategy for Hong Kong. The external environment can be analyzed based on the political, economical, socio-cultural and legal environment, along with the wine sector in Hong Kong. Wine sector in Hong Kong Hong Kong’s alcoholic beverage market faced distortions because of the excessive duties on wines and spirits (APCO, 2010). The prices were artificially high and the local residents as well as the expatriates were forced to choose lower-quality beverages which impacted consumer choice. Hong Kong had very high level of taxation on wines compared to its neighbors and this increased illegal smuggling of alcoholic beverages. This caused loss of government tax revenue. The Hong Kong Wine & Spirits Industry Coalition (HKWSIC) used the services of APCO to represent the views of the consumers and the industry. Study and presentation of the results by APCO forced the Hong Kong government to abolish the taxation on wine products. External environment analysis Political environment Hong Kong is governed by the Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China (Dfat, 2010). Hong Kong is a Special Administrative Region and is a capitalist society enjoying high political stability. It has an ‘executive-led’ system inherited from the British Colonial Administration. The Chief executive is appointed by Beijing after election and has the power to initiate legislation (Dfat, 2010). There is limited democracy as it still follows the Basic Law approved in 1990.
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Introduction Hong Kong wine market is one of the most sophisticated in Asia, according to a research on global wine and spirits consumption, production and international trade by International Wine and Spirits Record (The IWSR). It has positioned itself as the Asian hub for the trading and distribution of wine (Franz, 2008)…
This research will begin with the statement that before drawing up the marketing plan it is essential to evaluate the external environment in which Brown Brothers proposes to introduce its wine products. The external environmental analysis of Hong Kong suggests that the market has high growth potential.
This study looks into marketing as a daily activity is perceived to constitute all processes that are concerned with activities of conception, pricing, promotion, and distribution of ideas, goods, and services. Here, the paramount aim is to create exchange that is satisfactory to individual and organizational objectives.
Wine Marketing. Customers can buy wines from various locations. There are lots of choices ranging from individual wine shops, retailers, supermarkets and also through the modern trend in business i.e. through online wine retail shops. With days the buying pattern of customers are changing from retail store to supermarkets and now towards online stores.
France and Italy leads the production and consumption of wine globally but they have seen a steady decline of their market share along with other players such as the United Kingdom, United Stares, Australia and other European countries.
The reasons for the declining importance of OW wineries are many. For one they seem oblivious of the fact that there is a new class of consumers, who prefer to order their wine based on some intrinsic attribute and not want to be burdened by any lengthy learning process.
A detailed analysis of the wine industry in 2000 has been covered based on the four Ps model of Product, price, promotion, and placement. (McCarthy : 1999). Briefly product marketing provides inputs for development based on consumer preference and demand, a facet totally neglected by old World wine producers of Europe.
Christopher Carson MD of BRLH (BRLH) Europe is faced with two issues that would have a tremendous impact on the future of the company. He needs to decide on whether to a) go ahead with the proposed launch of D’istinto in the background of concerns with the ailing Mapocho and b) how to handle the two proposals for entry level Australian wine ‘Kellys Revenge’ or ‘Banrock Station’.
The process involves changing the quality of the cognac, it involves regular tasting the cognac, adding distilled water, changing oak casks and mixing cognacs of different ages to achieve desired quality.
Contextually, BRL Hardy, which can be identified as a major Australian wine producing company, was formed after the merger of the two major wine companies, i.e. BRL and Thomas Hardy & Sons (Hardy). BRL is renowned as the first cooperative winery of Australia
12 pages (3000 words)Essay
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