Situation Analysis & Goals: Australian Vintage's Chinese Market Plan

This report provides a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Australian Vintage Limited, a wine producer, specifically focusing on its international marketing plan targeting the Chinese market. The report meticulously identifies and analyzes the company's internal strengths, such as its skilled workforce, strong cash flow, successful project execution, and award-winning wine brands, alongside its weaknesses, including product range gaps, inefficient financial planning, and below-average R&D investment. It then explores external opportunities like technological advancements, changing consumer behavior, and market development, while also addressing potential threats such as changing consumer behavior, liability claims, rising raw material costs, and competition. Furthermore, the report analyzes the impact of these SWOT factors on the company's operations and policies, followed by the articulation of broad and specific goals and objectives, including increasing sales and revenue, building brand image, and making constant efforts for quality winemaking. This detailed analysis aims to provide a strategic roadmap for Australian Vintage Limited's successful entry and growth in the Chinese wine market.

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Marketing

SWOT analysis of Australian Vintage Limited
Strengths
 It ha highly skilled and competent workforce through learning and training programs.
Australia Vintage LTD invests huge resources in the training and development of their
employees.
 Australia Vintage LTD has stronger cash flow that helps the company to easily
expand into several new projects. It can make the best use of these cash flows in the emerging
market where it can grow its market effectively (Gürel and Tat, 2017).
 Australia Vintage LTD is successful in executing its new project. It is also able to
generate the good returns on the capital investment.
 It has highly dedicated customer relationship that helps it in achieving the higher
customer satisfaction and able to maintain the good brand equity among its potential
consumers.
 It has several award-winning wine brands that are enjoyed and recognised all over the
world. It has strong bulk wine production, marketing, packaging and distribution.
 It is seen that Australian Vintage has invested in the brand portfolio over the past few
years. This brand portfolio will prove to be extremely useful while moving into any other
market.
Weaknesses
 Australian Vintage Company still has product range gaps that are sold by the
company. The lack of choices might give a foothold to new competitor in the market.
 There are times it is seen that financial planning is not done efficiently and properly.
The current liquid and current asset ratio suggest that company can make more effective use
of cash.
 Research and development investment is quote below the fastest growing players seen
in the industry. Even through, Australian Vintage LTD is doing research and development
but not able to compete with several players in industry in innovation term.

 It is found that Australian Vintage is not able to tackle the difficulties or challenge
that is faced by some of the new entrant. Due to this, its internal feedback mechanism is its
weakness (Xia, 2019).
 Even though Australian Vintage is able to integrate the small companies. Still, it fails
to merge those firms who have some different work culture. In order to ensure its
sustainability for long run in any new market, it is required to bring changes in its internal
feedback mechanism.
Opportunities
 It is true that adoption of new technology has provided the opportunity to Australian
Vintage LTD for entering in the new emerging market. it can adopt several new technological
advancement in its production process and marketing functions (Phadermrod, Crowder and
Wills, 2019).
 New trends in the consumer behaviour can bring and open up several new markets for
Australian Vintage LTD. It will provide the new opportunities to build several new revenue
streams.
 Market development will help it in gaining the competitive advantage and will assist
Australian Vintage LTD in increasing its competitiveness as compare to several other
competitors.
 The stable cash flow of Australian Vintage LTD provides it several opportunities to
make investment in the product segments. Due to more cash in bank, company can make
investment in the new technologies. This will also open the window opportunity for the
Australian Vintage to bring several new product segments.
 It also has the opportunity to adopted differentiated pricing strategy in several new
markets. This will help the firm in maintaining the loyal customers with its innovative
services. While entering into the new market, it has the significant opportunities to research
about the market and follow some differentiated pricing strategy. This will bring the success
for Australian Vintage Limited in new market (Szentpeteri, 2018).
Threats facing Australian Vintage LTD
 It is seen that changing consumer behaviour might prove to be great threat to
Australian Vintage especially in the low income and emerging markets.

 It is true that different countries have different liability laws. Due to this, it might
expose to the several liability claims. In addition to this, rising cost of raw material can put
threat for profitability of Australian Vintage Limited.
 Competition might also prove to be the threat for Australian Vintage LTD. Stability
profitability has however increased the player’s number in industry.
 When company will enter into any market, it might face the challenges of currency
fluctuations. Due to this, it is required to maintain the proper check on the currency
fluctuations going on in the country (Bull et al, 2016).
Impact analysis of SWOT
It is true that swot analysis put impact on the operation of company. The increasing
competition might affect the operation, as it requires changing its internal activities as per
changing customer preferences or government policy. Due to its strong and competent
workforce, it can gain the advantage while entering into new market. However, less research
and development might impact its operation in the new market.
Broad goals and objectives
 To achieve the increase in sales and revenue by 30th June 2020.
 The main goal of Australian Vintage Limited is to set the world-class goals by raising
the awareness of customers for their responsible behaviour for drinking.
 To ensure enough investment in research and development
 Another objective is to build brand image in the Chinese wine market through its
constant efforts for sustainable practices
 Australian Vintage Limited also has the goal is to make constant efforts for quality
wine making. Therefore, the main emphasis will be given to bring innovative wines in the
market.
 The goal is to increase the sales in next six months after entering into the Chinese
market.
In order to achieve the broad goals, Australian Vintage LYTD will ensure the small
objectives that it will achieve in short period of time. The objective of company to provide
the wide varieties of wine flavours with best quality in the Chinese market (Kukuh,
Ciptomulyono, Putra and Suharyo, 2019). For this different competent people will be hired

who will ensure the proper checking of the working. In shorter duration of time, working of
different members appointed in the Chinese market will be checked. In shorter time duration,
meeting will be held so that any deviation seen can be corrected on time.

References
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Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths,
Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services
framework. Ecosystem services, 17, pp.99-111.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Kukuh, S.A., Ciptomulyono, U., Putra, N.I. and Suharyo, O.S., 2019. Navy ability
development strategy using SWOT analysis-interpretative structural modeling
(ISM). Strategic Management, 24(1), pp.30-40.
Olsen, J., Wagner, P. and Thack, L., 2016. Wine marketing & sales: Success strategies for a
saturated market. Board and Bench Publishing.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis
based SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Szentpeteri, C., 2018. Export advice and building a wine brand: How to increase global
market opportunities for your business. Australian and New Zealand Grapegrower and
Winemaker, (655), p.85.
Xia, C. 2019. Wine and wine grapes. Agricultural Commodities, 9(1), 51.