International Strategic Marketing Report: Foley Family Wines Analysis

This report analyzes the international strategic marketing of Foley Family Wines, a New Zealand-based wine producer. The report begins by identifying Foley Family Wines as a corporate brand with a diverse portfolio of wine brands, including Vavasour, Te Kairanga, and Mt. Difficulty. It examines the company's global market presence, highlighting sales in Australia, the USA, Canada, the UK, and Europe. The report identifies key competitor groups and recommends a diversification strategy for international expansion, particularly into untapped Asian markets. It advocates for a global strategy model, emphasizing centralized business and control. The report also details the retail channels, pricing strategies, and the whole product concept of the wines. The analysis is based on the provided assignment brief, aiming to provide insights into the company's brand architecture, market analysis, and strategic recommendations.

INTERNATIONAL STRATEGIC MARKETING
FOLEY FAMILY WINES, NEW ZEALAND

Question- Is this a corporate brand, or product range brand?
Answer- Brand Information
The entity Foley Family Wines was established in the USA in the year 1996 which is
currently controlled by the businessman Bill Foley. The entity is listed in the New Zealand as
a public listed company on the New Zealand Stock Exchange and has registered head office
at Blenheim. The brand is a corporate brand and is registered under the Companies Act, 1193.
The brand is chief producer, marketer as well as the distributor of handmade and highly
commended wine brands such as Vavasour, Te Kairanga, Martinborough Vineyards, Grove
Mill, Lighthouse Gin and Mt Difficulty.
Question- If there are more than one brand in the portfolio, draw or describe the brand
portfolio.
Answer- Brand Portfolio
The following pictures describes the brand portfolio, which constitutes its 12 major
brands.

Thus, it is evident from the pictures above, that the brand has a comprehensive
portfolio with varied range of the products to offer.
Question- What countries do they currently sell in?
Answer- Market Information
Global marketing is a vital aspect of the modern businesses wherein the companies
adjust their marketing strategies to adapt to the varied conditions of different countries. Thus,
the global marketing strategy involves being responsive towards the market conditions and
the variances in the preferences of the customers. The brand is widely known and sells its
products mainly in the markets of Australia, USA, Canada, UK, Europe and some parts of the
world. The entity supplies various brands through its five wineries and distillery, across three
acclaimed regions (Foley Family Wines, 2019). As per the latest data published in the interim
annual report of the entity for the year 2019, the total exports for the entity during the period
accounted a growth of 46.8 percent from the previous year. In addition, it must be noted that
the company has been consistently entering into strategic partnerships.
Question- With respect to their current overall markets, describe the competitive
groups with which they compete? This is likely to be market groups rather than
individual producers.
Answer- Competitor Groups
The following segment lists the chief competitor groups of the entity Foley Family
Wines. The top competitors of the entity are the Karl Strauss, Epic Wines & Spirits, Total
Beverage Solution, Majestic Wine and Spirits, Puerto De Indias, The Prisoner Wine

Company, CELLI, Winc, Wine.com and JJ Buckley Fine Wines, apart from the local
competitors (Owler Inc., 2019). It must be significantly noted that as per the revenue data, the
entity Family Foley Wines ranks fourth among its chief ten competitors.
Question- Would you recommend a concentration or diversification international
strategy?
Answer- International Strategy
As per the discussions conducted in the previous parts, it is quite evident that the
brand has a strong presence in the markets of New Zealand and USA majorly. As evident
form the latest report, the brand has purchase Mt. Difficulty, to add to the high profile
wineries in the area of New Zealand itself (Weed, 2019). However, not much expansion in
terms of the partnerships and markets has been made beyond the markets of UK and Canada.
Therefore, a diversification strategy is being suggested to the company to enable it to be a
global brand while focussing on smart growth.
Question- Are there any markets not currently served that need investigating?
Answer- Untouched Markets
The brand has not touched the Asian markets effectively, which presents an
opportunity for the brand. The brand can efficiently utilise its goodwill and other resources to
expand in the untouched areas such as that of Asia Pacific markets.
Question- Would you advocate a global strategy or a multi-national strategy? Why?
Answer- Strategy Recommendation
The global strategy model refers to the model where a company has a foothold in
multiple countries but with the maintenance of the consistency in the offerings and processes
in each country (Verbeke & Kano, 2016). In contrast to this the multinational strategy refers
to the strategy wherein a company operates in multiple countries, by adapting to the
marketing messaging to be suitable to each culture group (Verbeke & Asmussen, 2016).
Thus, the major point of difference lies in the adaptation of product offerings and
manufacturing processes. In the words of the President of the entity Family Fooley Wines,
Hugh Reimers, the most distinctive feature of the brand over the years has been the
maintenance of the style and the quality of the wines among the various brands. Therefore,

going by the strategy and objectives of the company it is suggested to the company to follow
a global strategy model which involves a centralised business and control model.
Question- Which retail outlets generally sell your chosen brand?
Answer- Customer Information
The entity Family Foley Wines has its own wine-and-spirits wholesaler (Swindell,
2019). Thus, it can be stated that the entity sells its products through the wholesaler and
distributor channels who purchase the products directly from the wineries. These distributors
further sell the products to the retailer networks, restaurants and other customers. The major
retail options where the brands are sold are the specialty wine stores and restaurant because
of the premium products involved.
Question- In major markets, what price is the wine sold at? Use the spreadsheet to
estimate its selling cost out of New Zealand.
Answer- Price Information
It is significant to note that the brands of the Foley Family cover a wide range of price
points. This includes the wines that are cheap and cheerful and also comprise the country’s
most expensive products (Campbell, 2019). The lowest price range for the product offered is
the $ 13.99 for the product Lost Angel Cabernet Sauvignon. The highest price of the product
in the family of Foley Wines is that of Foley Johnson Rutherford Meritage which is priced at
$ 61.99. The average case realization of Mt Difficulty case sales is of $150 (excluding excise
tax) in USA.
Question- Describe as best you can, the whole product concept of the wines in the range.
Answer- Whole Product Concept
One of the most important concepts of marketing is the whole product concept. The
concept denotes the entire set of capabilities that a company provides which lead to the
outcome in the form of a successful product (Cheung, Marsh, Griffin, Newnes, Mileham &
Lanham, 2015). Some of the noteworthy points in this context for the Family Foley Wines
are mentioned as follows. Creation of the unique products according to the customer’s needs
and preferences is essential for any business including the wine business. Therefore, wineries
must become more consumer-centric to win new customers. For instance, the company
Family Foley Wines has recently introduced the Chardonnay, Pinot Gris and Pinot Noir in
375ml cans (Wine Industry Network, 2019). In the words of the Chief Marketing Officer for

Foley Family Wines, Gerard Thoukis, the said move is on the lines of the consumer
behaviour evolving and the expansion of the usage occasions for wine. Thus innovation is the
key to exceeding the consumer needs and expectations. Secondly the brand must ensure to
provide transparency in terms of the easy access to the information about the product and the
price list so that the customers are able to compare the same.

References
Campbell, B. (2019). Foley Family’s best buys. Retrieved from:
https://www.therealreview.com/2019/02/14/foley-familys-best-buys/
Cheung, W. M., Marsh, R., Griffin, P. W., Newnes, L. B., Mileham, A. R., & Lanham, J. D.
(2015). Towards cleaner production: a roadmap for predicting product end-of-life
costs at early design concept. Journal of cleaner production, 87, 431-441.
Foley Family Wines (2018). Foley Wines Interim Report 2019. Retrieved from:
http://www.nzwineco.co.nz/downloads/financial/Foley%20Wines%20Half%20Yearly
%20Report%20to%2031%20Dec%202018.pdf
Owler Inc. (2019). Foley Family Wines's Competitors, Revenue, Number of Employees,
Funding and Acquisitions. Retrieved from:
https://www.owler.com/company/foleyfamilywines#competitors
Swindell, B. (2019). Foley Family Wines partnering with upstart Florida spirits maker.
Retrieved from: https://www.pressdemocrat.com/business/9621554-181/foley-family-
wines-partnering-with
Verbeke, A., & Asmussen, C. G. (2016). Global, local, or regional? The locus of MNE
strategies. Journal of Management Studies, 53(6), 1051-1075.
Verbeke, A., & Kano, L. (2016). An internalization theory perspective on the global and
regional strategies of multinational enterprises. Journal of World Business, 51(1), 83-
92.
Weed, A. (2019). Foley Family Wines Buys New Zealand's Mt. Difficulty Winery for $35
Million. Retrieved from: https://www.winespectator.com/articles/foley-family-wines-
buys-mt-difficulty#
Wine Industry Network (2019). Foley Family Wines Addresses Evolving Consumer Behavior
with the Introduction of Acrobat 375ml Cans. Retrieved from:
https://wineindustryadvisor.com/2019/05/06/foley-family-wines-addresses-evolving-
consumer-behavior