MRKT20057 - Yellow Tail's UK Market Entry Strategy Presentation

This presentation details Yellow Tail's proposed entry strategy into the United Kingdom market, drawing parallels with its successful entry into the United States market. It justifies the UK market selection based on favorable political stability, robust transport infrastructure, and high per capita income. The presentation covers key aspects such as market selection rationale, competitive strategy focusing on affordable pricing and targeting non-consumers, pricing strategy emphasizing accessibility, promotion strategy leveraging employee engagement, and distribution strategy built on strong distributor relationships. The conclusion recommends replicating successful strategies from the US market to establish a strong presence in the UK wine market, referencing various sources to support its analysis.

YELLOW TAIL
ENTRY
STRATEGY TO
UK MARKET
Name
Institution
Date

Introduction
– This presentation focuses on various strategies that Yellow Tail can use to enter
into United Kingdom Market.
– These strategies are based on existing company’s strategies that have been
effective in entering the United States Market.

Rationale For UK market
– Yellow Tail is justified to enter the UK market as a result of favorable marketing
conditions attributed to political stability among other market conditions such as
technological, social and legal aspects that encourage the company to operate
favorably.
– Besides, the country’s transport infrastructure within and outside the country
enables the company to consider entering the market.
– UKs higher per capita income encourages the company to enter the market and
perform well.

Market Selection and Entry Strategy
– The UK market is strategically located on major trade routes that connect Europe and Australia
which makes it favorable for the company to conduct its operations with ease.
– Policies that govern trade in the UK promote healthy relationships with foreign counterparts
while enhancing growth of trade both locally as well as abroad.
– All the trade barriers between Australia and United Kingdom have significantly been reduced
allowing Yellow Tail to operate smoothly.

Competitive Strategy
– The company enjoys a competitive advantage in the markets they have
established such as US market.
– The primary competitive advantage that the company has is favorable prices that
help compete with other brands, the company targets non-consumers through
promoting their products based on user experience by associating friendliness to
the product.
– Yellow Tail has positioned itself in the market as a social drink in order to
remove intimidating factors among the consumers such as aging and tanning
aspects.

Pricing strategy
– The pricing strategy that is adopted by Yellow Tail focuses on enhancing ease of
access with their products.
– As a result, the company does not focus on premium pricing but rather providing
their products at relatively cheap prices that removes the element of luxury
associated with the products.
– The company’s pricing strategy is also a marketing strategy that makes their
products available on almost all retail stores.

Promotion Strategy
– The promotion strategy that is used by the company encourages people to
demand the products. For instance, targeting non-consumers increases the
demand and the market share for the products whereby the company fills the gap
by supplying the demand among consumers.
– The company cuts significant costs associated to the product marketing strategy
by using the employees in the stores to promote their products to specific target
markets.

Distribution Strategy
– The company uses established distributers in the market they target through
creating long-lasting business relationships with various stakeholders across the
world.
– The good relationship that is established by the company helps to move the
products without having to experience hitches in the supply chain process.
– The relationship with the distributors is crucial in establishing sustainable
business goals that the company can enjoy to increase their competitive
advantage in the wine industry market.

Concluding Recommendations
– These strategies that are used by Yellow Tail will play a significant role in
enabling the company to establish its presence in the United Kingdom market.
– These strategies have assisted the company to perform well in the United States
market which was difficult and challenging to penetrate.
– Nonetheless, the company penetrated the USA market and this is a positive
aspect that can be replicated to ensure Yellow Tail performs well in the UK
market.

References
– [ yellow tail ] Facts - Deutsch Family Wine & Spirits. (2018). Retrieved from http://www.deutschfamily.com/the-deutsch-family-our-brands/yellowtail-facts/?
age-verified=91e972362c
– Bulk order: How Australia’s Casella Family Brands cracked the US wine market | Campden FB. (2018). Retrieved from
http://www.campdenfb.com/article/bulk-order-how-australia-s-casella-family-brands-cracked-us-wine-market
– Creating Value on the Vine: A [yellow tail] Case Study. (2018). Retrieved from
https://www.processexcellencenetwork.com/innovation/articles/creating-value-on-the-vine-a-yellow-tail-case-stud
– Head to tail via the marketing mix Marketing — Part 5. (2018). Retrieved from
http://www.jamaicaobserver.com/business/Head-to-tail-via-the-marketing-mix--Marketing---Part-5_61565
– Holden, C., Hawkins, B., & McCambridge, J. (2012) Cleavages and co-operation in the UK alcohol industry: a qualitative study. BMC public health, 12(1), 483.
– Ritchie, C., & Valentin, D. (2011) A comparison of wine drinking behaviours in young adults in the UK and France. In 6th Academy of Wine Business Research
International Conference, Bordeaux, France.
– Supply chain solution for Casella - Inside FMCG. (2018). Retrieved from https://insidefmcg.com.au/2015/07/14/supply-chain-solution-for-casella/
– Thach, E. C., & Olsen, J. E. (2004). The search for new wine consumers: Marketing focus on consumer lifestyle or lifecycle. International Journal of Wine
Marketing, 16(3), 44-57.
– Varsei, M., & Polyakovskiy, S. (2017) Sustainable supply chain network design: A case of the wine industry in Australia. Omega, 66, 236-247.
– Wilson, J. & Phillips, S.S. (2016) UK Wine Market Report 2016 Retrieved from:
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/UK%20Wine%20Market%20Report%202016_London_United%20Kingdom_2-19-2016.pdf