International Marketing Strategies for Bonatelli Wines in China

This document discusses the international marketing strategies for Bonatelli Wines in China. It covers the business description, marketing objectives, approach, operational structure, management, evaluation, and impact on the international market. The document also includes a report on the company's products, mission, and market segmentation in Australia.

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Submission date

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Task 1
In Australia, Consumer needs of diverse target groups are segmented in terms of demographic,
psycho graphic, geographic and behavioral. The market catering to women has a higher
consumer need for items such as cosmetics, health supplements and groceries. Males have a high
consumption of alcoholic beverages. Youth’s market has a higher consumption of adventure
sports items and modern technologies. High and middle class income has high consumptions of
luxuries such as high end electronics.
Task 2
Germany, China and New Zealand markets have different cross-cultural communication
and negotiation styles. Germany has low-culture context of 35, nonverbal differences are
medium, long-term orientation is very high, indulgence is low, power distance is medium,
individualism is high, and masculinity is high. China has high culture context, non-verbal
differences are high, masculinity is low, and power distance is medium. New Zealand has
medium non-verbal differences, low culture context, high indulgence and high individualism.
Therefore, the best negotiation style for Germany is a collaboration or cooperating. In New
Zealand, the suitable negotiation style is compromising while in China is accommodating.
Task 3- report.
Description of the business
Bonatelli wines is a premier wine business located in the McLaren Vale wines district of
Australia. The company is a producer of fine quality wine that is famously known for finishing
and taste. Tony Bonatelli owns the company and is situated on a 65-acre property in a vineyard
of Australia. The three types of products produced by the company include merlot, cabernet

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sauvignon and Shiraz (Hughes & Wang, 2014). The mission of the business is to produce a
quality boutique wine at a reasonable price with the ultimate aim of facilitating repeat purchases
as well as enhancing customer loyalty. In Australia, Bonatelli Company sells its products in bulk
to other large wineries and the company has no branded product for sale. The company has
successfully penetrated into the global business has launched a range of bottled red wines in
France and the United States markets. Currently, the company has employed over 300
employees. The company has capabilities of producing 500,000 cases per year and 30,000 cases
per day (Hughes & Wang, 2014). Bonatelli wine retails at US$ 12-17 per bottle in the United
States hence considered as a premium sector of the market (Thompson, 2016). Bonatelli wines
are sold mostly in supermarkets and liquor retailers.
International marketing objectives
China market-cheap labor, high population and economic growth provides viable
business opportunities that are suitable for Bonatelli Company to do business in the country. In
addition, the emergence of the middle-class economy in China has increased the demand for
wines (Uner & Gungordu, 2016). With Bonatelli Company being successful in the United States
of America, the company has different objectives that it must put in place in order to explore all
these opportunities. The market objectives of Bonatelli Company include conducting thorough
market research, brand localization and marketing communication while the potential risks
include regulations and trends.
Brand localization- Bonatelli company aims at creating brand localization in the
Chinese market through modification of its products so that it can fit Chinese culture and also
suit preferences and taste of the local customers.

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Market research: Bonatelli Company aims at conducting deep research of the Chinese
market before venturing to it with considerations that several international companies have failed
to be successful in the country.
Marketing communication- Because Banotelli targets Chinese market, the company
aims to communicate through the medium of Chinese languages that reach a wide geographical
area. Other International marketing objectives of the company will be to reduce prices to the new
markets, offer the low-cost subscription to services for a limited time, offering additional
rewards with a purchase and offering of gifts, coupons or vouchers and loyalty programs.
International marketing approach
For effective performance in the Chinese market, Bonatelli Wines Company needs to pay
attention to Chinese cultures to which needs for customers would be identified. The company
should invest heavily in human resource, local people should be hired, and suggestions
considered. Hiring local people and taking suggestions makes it easier for the company to make
strategies without interfering with Chinese cultures. In addition, the company also should
connect to Asian’s supply chain network and render high quality. The business personnel’s
outlook should be positive towards the culture of Asians and people. Furthermore, a well-trained
team of Bonatelli Company must work behind scenes so it can create a unified and mind
compelling voice for a brand. Televisions and internet should be extensive to reach the
maximum number of people. The assigned team of marketers should consider festivals and
holidays of Asians and provide an offer on products for the company to increase the sales
revenue. When the company is promoting the offers, brand value and the brand image should not
change but instead, the temper of brand promotion should change.

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Operational structure
Bonatelli wine divides its activities into diverse segments including marketing activities,
distribution and pricing and roles and responsibilities. Marketing activities include the company
works for include market segmentation and research, positioning, targeting and budgeting.
Distribution and pricing activities include goals and objectives, the intensity of rivalry, the phase
of product life cycles and customer characteristics. Roles and responsibilities activities include
team management, recruitment, coordination of diverse markets, resolving cross-functional
issues and project plan. Therefore, for Bonatelli Company to effectively manage all the activities
it has adopted the functional organizational structure and operated under monopolistic
competition type of marketing structure.
Management of International marketing performance
Staff: The performance of the team and quality of leadership determines the overall
achievement of the organization. Furthermore, the effectiveness of the team is based on team
executions and a well-organized approach where there are active member’s contributions in
decision building and planning as it creates a good sense of responsibility about work within the
team to accomplish the objectives within a predetermined time.
Communication: For effective marketing performance, Bonatelli Company must invest
in a good communication strategy. Proper international marketing strategies and goals need to
be circulated to all concerned members. Chinese customs, cultures and level of knowledge need
to be accounted for and each member must feel that the strategies adopted are concurrent with
their local needs.
Marketing Outcomes: Market integration must be there in order to promote the products
of Bonatelli in China successfully. To promote products in the Chinese market, Bonatelli

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Company should strategize on marketing integration involving televisions, social media, internet,
radio and print media.
Evaluation and improvement of international marketing performances
Product, distribution policies and pricing evaluation-The development of ‘Bonatelli’
marketing plan must cover the field of pricing, product and distribution policies. The product
concerns are functionality, packaging styling and quality. The company should offer competitive
prices as well as maintain the distribution policy of the products in Chinese markets. Supply
chain networks of China and logistics should be considered when strategizing on distributions
and pricing. In addition, to ensure effective distribution policy, warehouse, inventory
management, logistics and store networks need to be focused.
Evaluation about overall progress in marketing:- For Bonatelli to ensure there is an effective
evaluation on marketing strategy concerning quality and increase in revenue, the company must
invest in a strong business model that includes strong sustainable growth, good human resource,
superior corporate infrastructure and robust financial capacity.
Review and analysis of objectives and marketing outcomes: Since the Bonatelli Company
was established, the business has grown to be among top companies in Australia. The company
has successful conduct adequate research in both local and international exploring the
opportunities for expansion. In addition, the company has achieved its main objectives of
satisfying its shareholders and maximizing profits as well as efficient services
Impact on International Market by changes in market phenomena: According to Stevens &
Johnson (2016), demand and supply determine the change of market phenomena. The Chinese
market environment is changing with demand function enhanced due to modern technologies.

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Therefore, it is due to this change of market phenomena due to the occurrence of global forces,
Bonatelli Company must face international marketing competition that affects stakeholder’s
interest. For Bonatelli to maintain global markets in China, the company has decided to convert
opportunities and global forces into strong business strategies.
Review of marketing performance with KPI- The marketing performance of Bonatelli is
superior when compared to many competitive companies of Australia. When measured in
accordance with the key performance indicator of China’s marketing performances such as
revenues and sales, it is essential to determine the effectiveness of the local market. Through an
assessment of sales revenue, Bonatelli Company gets insights into the annual profit. In Bonatelli,
Australian, French, USA and China customers are valued by ensuring products satisfy their
needs in a timely manner.
References
Hughes, D., & Wang, X. (2014). Expanding export markets keep moving to the east. Australian
and New Zealand Grapegrower and Winemaker, (601), 20.
Stevens, G. C., & Johnson, M. (2016). Integrating the supply chain… 25 years on. International
Journal of Physical Distribution & Logistics Management, 46(1), 19-42.
Thompson, N., 2016. Australian wine exports: Outlook to 2020-21.Agricultural
Commodities, 6(1), p.96
Uner, M. M., & Gungordu, A. (2016). The new middle class in Turkey: A qualitative study in a
dynamic economy. International Business Review, 25(3), 668-678.

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