Global Marketing Strategy for Penfolds Wineries

RUNNING HEAD: Global Marketing
Global Marketing
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Global Marketing 1
Contents
Introduction......................................................................................................................................2
Summary of Assessment 1...............................................................................................................2
Screening of Market Selection.........................................................................................................2
Five Stage Analysis.....................................................................................................................2
Reason for Choosing....................................................................................................................4
Objectives....................................................................................................................................4
Market Entry Options for Penfolds Wine........................................................................................5
Options.........................................................................................................................................5
STP for Penfolds Wineries..............................................................................................................7
Marketing Mix.............................................................................................................................8
Recommendations for preferred strategy for Country.....................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Global Marketing 2
Introduction
The focus of this report is to inform the reader with the details about the business
Penfolds Wineries, Australia. The below mentioned paper highlight the details about the market
expansion and entry strategies in the country China. The company is successfully working its
business activities in the environment of Australia, the business aspires to grow in the market of
China so as to increase the sales and attract the more people as well. The company already has
captured the market of Australia so the expansion of business in China will help the business to
develop its sales in diverse market. More details about the report are discussed below:
Summary of Assessment 1
The report one of the assessment highlight the analysis of opportunities and challenges
that the business Penfolds Winery will face with the option of entering the marketplace of China.
The market analysis of the country states that there are a large number of individuals present in
the country who consume alcohol on a regular basis that can increase the sales of the company in
the new market. The country has large number of population that acts as favourable condition for
the company as more than 60% of people are urban that have a positive purchasing behaviour in
the environment (Zeng, & Szolnoki, 2017). Talking about the market barriers for the company in
China, it should be noted that the people in the country does not believe in purchasing products
from international markets, nor they purchase goods from the international brand because their
believe in growth of business industry of their nation. Secondly, it should be noted that the
people of the country are less inclined towards expensive brands in the environment. Penfolds
Wineries is one of the most oldest winery present in the country Australia so the brand is quiet
expensive and gives premium quality products to the people in the market. This factor can reduce
the competence of company in Chinese market (Sun, & Wong, 2015).
Screening of Market Selection
Five Stage Analysis
Stages Description Evaluation

Global Marketing 3
Stage 1 Domestic regulation and
management preference
As the country is major
exporter of wine in the
worldwide market. So, there
are several regulations
imposed on the transactions of
companies
Stage 2 Initial entry assessment Under this step of screening,
the business analyse the
favourable ways with the help
of which they can successfully
enter in the market. This step
explains the initial way in
which the business should
enter so as to attain the interest
of maximum consumers in the
market.
Stage 3 Competitive environment The company should then
judge the rivalry prevalent in
the marketplace. It is
important to analyse the
degree of competition before
entering in the market as
monopolistic or oligopoly type
of environment can make it
difficult for the organization to
survive.
Stage 4 Market responsiveness This stage elaborates the
response of the market on the
functions and activities of the
business. This stage will
elaborate that whether the