Macquarie Wine Company Business Plan: Industry Analysis

The assignment is a comprehensive business plan for the Macquarie Wine Company, a new venture in the Australian wine industry. It begins with a background overview, detailing the company's focus on local market acceleration and product offerings, including various wine types like Riesli...Read More

MACQUARIE WINE
COMPANY
BUSINESS PLAN

BACKGROUND
 The new business venture that will be
processed by the entrepreneur is based
on the wine manufacturing company.
The name of the company will be
Macquarie Wine Company.
 The company will have only local
branches as the company has just
started their business and they need to
concentrate on the market acceleration
(Johnson and Bastian 2015).

Product offering
 The products offered by the company
are Dow’s Port, Marquis la de tour,
Piaramimma, Ackerman, Vilarnau, Wise
Guys, Mataora, Crossroads and Redman.
 The firm will be producing different types
and qualities of wine like Riesling, Pinot
Noir, Chardonnay, Sauvignon blanc,
Syrah, Merlot and Cabernet sauvignon.

Mission
 To excel in their business and gain
enough reputation that will help in
achieving 3% market enhancement in
one year (Godoy and Téllez 2017 p. 87).
 To develop their international market
after a year by aligning with other
companies in different nations and grab
the initial market.

Market Analysis
To understand the patterns existing in the
wine market in Australia and the
economic condition of the industry the
market analysis is carried out in this
report with the help of industry analysis
and competition analysis.

Industry Analysis
 The wine industry in Australia currently
is facing adverse conditions and hence is
undergoing a downturn for a prolonged
period of time now (Greene et al. 2018
p.34).
 It is also being asserted that around 70%
of the wine produced domestically witin
Australia is through uneconomic means
(Wfa.org.au. 2018).

Competition
 The existing competition is not very strong in
intensity as there are only a few strong brands
existing in the wine markets in Australia.
 These include Accolade Wines, Treasury Wine
Estates, Australian Vintage and Yalumba.
 The firm will effectively have to install and use
the best forms of technology including smart
products and devices to understand the needs
and the changing demand patterns of the
customers to remain ahead of its few
competitors.

Primary Target market
 The firm should keep the prices low to
attract the customers from all economic
cohorts within the country.
 Demographically, the target market will
consist of a cohort of customers whose age
varies in between the youth and the old.
 The target market for the next financial
year, depending upon the sales and the
revenue generation levels depending upon
the initial target market this year.

Marketing
 a) Product – The product under
consideration in this case as mentioned
earlier is wine and different types of
wine already existing and new
customised versions.
 b) Pricing - The prices of all bottles of
wine produced by the firm will range in
between $10 and $25 dollars depending
on the quality of wine and the size of the
bottle.

Marketing
 c) Distribution- The product will be
manufactured particularly in Melbourne but will
be distributed across all local markets of
Australia for the first year.
 d) Promotion- The promotional techniques
used by the firm will mostly be digitalised using
social media platforms. The advertisement of
the brand will also be done by providing
discount options and partnering with ongoing
events in different cities to make people aware
of the upcoming brand.

Financial Plan
$3,304,600
Loss (gain) on sale of assets
$0
Other unusual expenses (inc
$0
Earnings before taxes
$3,304,600
Taxes on income
30%
$991,380
Net income (loss)
$2,313,220
Profit and loss
Year 1
Gross revenue
$3,563,000
Cost of goods sold
$175,000
Gross margin
$3,388,000
Other revenue
[source]
$0
Interest income
$0
Total revenue
$3,388,000
Operating
expenses
Sales and marketing
$6,000
Depreciation
$27,400
Maintenance, repair,
and overhaul
$0
Total operating
expenses
$83,400
Operating income
$3,304,600
Interest expense on
long-term debt
$0
Operating income
before other items

Critical risks
 The risks related to the initiation and market
entrance in the wine industry in Australia is
high as the market is undergoing a very
slow transition from the incessant periods of
economic down fall (Bogue, J., Collins, O.
and Troy, A.J., 2016 p. 35).
 Further, the absence of a lot of competition
in the wine industry is also an added
advantage of the critical risks. The only risk
existing is catering to the strict tax system
existing in the country.

References
 Bogue, J., Collins, O. and Troy, A.J., 2016. Market
analysis and concept development of functional foods.
In Developing new functional food and nutraceutical
products (pp. 29-45).
 Bruwer, J., Lockshin, L., Saliba, A. and Hirche, M., 2015.
The cellar door as a catalyst for wine consumption and
multiplier of sales in the Australian wine market.
 Burns, A.C., Bush, R.F. and Sinha, N., 2014. Marketing
research (Vol. 7). Harlow: Pearson.
 Crabb, A., 2016. Wine export: Impact of the'Brexit'on
Australian wine exports. Wine & Viticulture
Journal, 31(3), p.73.