International Strategic Marketing Analysis for Dan Murphy's in NZ

This report offers a comprehensive analysis of Dan Murphy's, a prominent New Zealand wine brand, examining its business processes, competitive landscape, and internal environment. It delves into the New Zealand wine industry, highlighting its growth and export values. The report evaluates Dan Murphy's competition, particularly from major supermarket chains. It analyzes the company's internal strengths and weaknesses and proposes a suitable competitive strategy. Furthermore, it assesses the feasibility of market entry into the United Kingdom, Germany, and Australia, providing strategic objectives for business improvement. The report also evaluates current marketing tactics, identifies key performance measurements, and offers recommendations for enhancing brand awareness and customer engagement in new markets. The success of the company's strategic plan is expected to be measured on the basis of the ability of the company in forming the much required brand awareness amongst the customers of the new regions. The report concludes with recommendations for business operations, such as improving brand awareness and introducing attractive offers for customers in new regions.

Running head: INTERNATIONAL STRATEGIC MARKETING
International Strategic Marketing
Name of the Student
Name of the University
Author Note

1INTERNATIONAL STRATEGIC MARKETING
Executive Summary:
The paper investigates the wine industry of New Zealand. The paper delivers important
information regarding the business processes of a selected brand named as Dan Murphy’s. In
addition to this, the paper evaluates the level of competition that the company is subjected to.
Other than this, the paper provides an important analysis regarding the internal environment
of the selected company. Along with this, the paper delivers an important analysis regarding
the appropriate competitive strategy for the mentioned company. The paper also includes a
feasibility examination on three different countries such as United Kingdom, Germany and
Australia. Other than this, the paper offers a significant set of strategic objectives for the
improvement of the business of the company. In addition to this, the paper offers a detailed
evaluation regarding the marketing strategies that are currently undertaken by the company
for improving their business. Apart from this, the paper identifies some of the important
measurements such as the capability of applying such tariff rates which are less than the rates
of the competitor organizations. Along with that, the success of the strategic plan of the
company is expected to be measured on the basis of the ability of the company in forming the
much required brand awareness amongst the customers of the new regions. The paper also
includes an important set of recommendations for the improvement of the business operations
of the company such as the improvement of the brand awareness along with the introduction
of the lucrative offers for the customers of the new regions.

2INTERNATIONAL STRATEGIC MARKETING
Table of Contents
Introduction:...............................................................................................................................4
Overview of the New Zealand Wine Industry:..........................................................................4
Overview of the brand:...............................................................................................................6
Market and Competitive Analysis:.............................................................................................7
Internal analysis:........................................................................................................................8
Choice of Competitive Strategy:................................................................................................9
Market Choice:.........................................................................................................................10
United States of America:....................................................................................................10
United Kingdom:..................................................................................................................11
Australia:..............................................................................................................................11
Strategic Objectives:................................................................................................................11
Multi- national Strategy:..........................................................................................................11
Concentration:..........................................................................................................................12
Target Market:..........................................................................................................................13
Mode of Market Entry:.............................................................................................................13
Planning and Implementation:.................................................................................................13
Products:...............................................................................................................................13
Pricing:.................................................................................................................................13
Promotion:............................................................................................................................15
Place:....................................................................................................................................15

3INTERNATIONAL STRATEGIC MARKETING
Marketing Approach:...............................................................................................................15
Key Measurements:..................................................................................................................16
Recommendations:...................................................................................................................16
Conclusion:..............................................................................................................................16
References:...............................................................................................................................18

4INTERNATIONAL STRATEGIC MARKETING
Introduction:
The paper is focused in the elaboration of the business process of one of the reputed
wine brand of New Zealand named as Dan Murphy’s. The company is a major brand of the
Countdown Supermarket of the nation (Countdown.co.nz, 2019). As Countdown is also a
member organization of the Woolworths Supermarket chain, Dan Murphy’s is also connected
to Woolworths which enabled the managers of the brand to attract considerable number of
customers across the globe. The paper is focused in creating a global marketing strategy for
the company.
The paper analyses the wine industry of New Zealand and along with that, the paper
also provides significant amount of information regarding the business operations of the
selected brand. Apart from this, the paper assesses the level of competition that the company
is facing in the nation in addition to the internal environment of he selected company. Other
than this, the paper provides an important analysis regarding the suitable competitive strategy
for the mentioned company. The paper also includes a feasibility analysis on three different
countries such as United Kingdom, Australia and Germany. In addition to this, the paper
provides an important set of strategic objectives for the improvement of the business of the
company. Along with that, the paper provides a detailed assessment regarding the marketing
tactics that are currently used by the company for improving their business. Apart from this,
the paper identifies some of the important measurements that the company is expected to
consider for the evaluation of the success of their strategic plan. The paper also includes an
important set of recommendations for the improvement of the business operations of the
company.

5INTERNATIONAL STRATEGIC MARKETING
Overview of the New Zealand Wine Industry:
The wine industry of New Zealand is observed to grow in a significant manner over
the years and that is pretty evident with the increment in the statistics of the industry. From
the statistics of the New Zealand wine industry, it is evident that the number of the wineries
have increased in a significant manner over the years which is evident with 673 number of
wineries of 2015 from 643 number of wineries of 2009 (Nzwine.com, 2019). Other than this,
the number of wineries in the year 2018 is seen to increase to 697 (Nzwine.com, 2019). On
the other hand, the number of growers is seen to decrease in a notable manner and that is
evident with 699 number of growers in the year 2018 from 1073 of 2009 (Nzwine.com,
2019).
With a precise focus on the vineyard statistics of New Zealand, the increased focus of
the government and various companies operating in the industry is pretty much
understandable. 37969 hectares of producing area along with 3% increment in every years is
seen to be significant in stating the growth of the industry (Nzwine.com, 2019). With a
precise focus on the wine industry of the nation, it is visible that the mentioned industry is
able to reach to an export value of 1.66 billion US dollars in the year 2017 (Nzwine.com,
2019). Along with that, the mentioned industry is providing 7349 number of employments in
the region. With a precise focus on the dynamics of the industry, it is understandable that the
new markets provides significant amount of opportunity to the wineries of the nation with
less than 5 million US dollars revenue (Deloitte.com, 2019). Other than this, the mentioned
industry is observed to have 247 number of cellar doors across the wine regions of the nation
(Deloitte.com, 2019). Apart from this, the New Zealand wine industry is observed to have the
biggest challenge and opportunities for the participant wineries in the form of the sales
margins. Considering the export in the mentioned industry, the growth of the industry is
pretty prominent. The New Zealand wine industry is seen to export more than 200 million

6INTERNATIONAL STRATEGIC MARKETING
litres of wine to the established wine markets such as the Australia, United Kingdom and
United States of America (Deloitte.com, 2019). The strong dependence of the industry on the
established wine markets is pretty evident with the statistics of the litres of wine sold in the
domestic market and the amount that is exported to the other markets. The mentioned
industry is seen to export 254 litres of wine whereas only 54 litres of wine is sold in the
domestic markets (Deloitte.com, 2019). This provides a strong base for the companies
operating in the domestic market for expanding their business at the global stages.
Overview of the brand:
The selected company is seen to have the roots in Australia, however the shift in
business to New Zealand is pretty visible and the growth of the wine markets in New Zealand
is considered to be one of the prime reason for the shift. Dan Murphy’s is one of the reputed
Australian liquor supermarket chain that is owned by Woolworths Limited. Countdown
supermarket is one of the main subsidiaries of the Woolworths Limited in New Zealand and
that influenced the managers of the Dan Murphy’s for forming an association with
Countdown which enabled the brand for conducting a sustainable business in the New
Zealand wine market. Though the selected business entity is operating in New Zealand
business market with immense good will, however, the company is unable to have an
equivalent level of representation in the mentioned market compared to Australian market.
The excellence of the leadership team of the company which includes the Chief Executive
Officer of the Woolworths Group, Greg Puckett, Martin Smith, the Managing Director of
Endeavour Drinks Group along with the General Manager of the company, Campbell Stott, is
considered to be one of the main factors that influence the growth of the mentioned company
in New Zealand market (Danmurphys.com, 2019). The selected company was established in
the year 1952, however, since, 1998, it is an integral part of the Woolworths Group
(Danmurphys.com, 2019). The selected company is seen to have a significantly strong brand

7INTERNATIONAL STRATEGIC MARKETING
portfolio and that is pretty visible with the existence of Absolut Vodka or 4 Pines
(Danmurphys.com, 2019).
Considering the products and services of the company, it is understand able that the
diversified products range of the company plays a crucial role for the company in meeting the
diverse requirements and demands of the customers. The company has the expertise of selling
a series of products such as the Bird In Hand, Grey Goose, Malibu, Grant’s, Aberlour,
Savanna, Crown Royal (XR Canadian Whisky), Crystal Head, Wild Moose, Canadian Club,
Tequila Fortaleza (Blanco), Crown Royal (De Luxe Canadian Whisky), Angostura, Capel
Vale, Hpnotiq, Sunshack (Pera Mango Cider), Steinbok, Sunshack (Apple & Passionfruit
Cider), Sunshack (Feijoa Elderflower Cider), Crown Royal (Whisky & Dry cans), Scapa,
Loose Leaf, Cape Vale (Shiraz) and Captain Hayes (Danmurphys.com, 2019). The company
has the excellence in providing the much required variety in the products. Other than this, the
company provides the much required luxury to their customers for the selection of the
products in terms of the different quantity which has notable amount of positive impact on
the customers of the company.
Market and Competitive Analysis:
With a precise focus on the dynamics of the market, it is understandable that the wine
market of the nation is notably populated by considerable number of wholesalers such as the
Australian Liquor Marketers, Independent Brands Australia, Hotel Liquor Wholesalers
(Nzwine.com, 2019). However, the impact of the supermarket chains and the retail chains is

8INTERNATIONAL STRATEGIC MARKETING
observed to be more prominent comparatively in the mentioned industry. The selected
company is seen to face notable amount of competition from the competitor organizations
such as the Crown Limited, Coles, LiquorLand along with Costco (Liquorland.co.nz, 2019).
The competition level amongst the mentioned supermarket chains operating in the wine
industry is seen to increase in a notable manner in recent years. The primary basis of the
competition is observed to be the application of the pricing policy from the part of companies
and majority of the supermarket chains of the industry are seen to apply the low pricing
policy for their customers which plays a crucial role in increasing the intensity of the price
war in the mentioned market. On the other hand, the sales of the companies are also
influenced by the increasing variety in the product chain of the companies which becomes an
important aspect for the companies operating in the wine industry of New Zealand in
attracting the customers. Majority of the established super market chains which are able to
conduct a sustainable business in the nation over the years, are observed to have a wide
variety of products.
Dan Murphy’s is also one of the companies operating in the nation with the
application of the low pricing for their products and services. With a precise focus on the
statistics of the growers and vineyards, it is visible that the wine industry of the mentioned
nation has considerable number of efficient suppliers. The increment in the producing area is
one of the important signs of the fact that the production base of the raw materials is
increasing in a notable manner over the years. The suppliers of the industry are capable
enough for on time supply of the materials, ethical and eco- friendly sourcing. Other than
this, the suppliers of the mentioned industry are observed to sell their products at reasonable
prices which has greater significance for the companies operating in industry as that enables
the companies for the application of the low pricing. However, the industry is seen to have
considerable number of constraints for the new organizations in entering the market for

9INTERNATIONAL STRATEGIC MARKETING
conducting sustainable business. The main factors that influences the new organizations are
the bulk requirement of money for the infrastructural set up, the intense market competition
along with the concerns regarding the licensing process for their business. However the rapid
growth of the market is seen to be one of the main motivator for the new companies in
entering the market and that develops a moderate level of threat of new entries for the
companies operating in the industry.
Internal analysis:
One of the major strength of the company is the pricing policy. The company has the
expertise of applying low pricing for the products and services that they offer to their
customers. Along with this, the company has the objective of providing the products at the
most competitive prices and that is visible with their marketing communications. The
application of the low pricing plays a crucial role for the company in attracting larger number
of customers.
Other than this, the efficient loyalty program of the company has a major role in
attracting the customers. The benefits of the “My Dan Murphy's” program play the role of a
key motivator for the customers of the company in purchasing the products of the company in
repetitive basis (Danmurphys.com, 2019).
Other than this, the increased product chain of the company places the company in a
perfect position for meeting the diverse requirements or the demands of the customers. With
a precise focus on the above mentioned product range of the company, it is evident that the
variety of the products of the company is one of the fundamental factors that influence the
company in the achievement of larger number of customers in the region.
Considering the threats that the company is subjected to, it is understandable that the
intense competition of the wine market in New Zealand, has significant amount of

10INTERNATIONAL STRATEGIC MARKETING
detrimental impact on the business operations of the company. The application of the
competitive pricing and the development of the price war in the industry is seen to be one of
the major threat for the company. Apart from this, the changes in the tax rates and the
governmental legislations is seen to be one of the main concern for the company as that has
the capability to force the company in the alteration of the strategies that are employed by the
company.
Choice of Competitive Strategy:
The company has the expertise of applying the low pricing for their products and
services and that is evident with the promises that the company did with the marketing
communications. Along with that, the application of the low pricing for the products of the
company is pretty visible with the tariff rates of the company. On the other hand, the
company is seen to be notably attentive to the varying preferences and demands of the
customers with the application of the efficient customer relationship system of the company.
The managers of the company are seen to be significantly focused in designing the products
of the company in accordance to the preferences of the customers and that becomes the main
basis for the company in providing an enhanced focus on the efficiency of the customer
relationship management system along with the achievement of the customer inputs. Hence
the design of the products in accordance to preferences of the customers of the company
enables it in applying the much required customization approach to the products and services
of the company and that increases the uniqueness of the products of the company. Hence the
competitive strategy that the company is expected to apply, is the hybrid strategy where the
presence of both cost leadership and differentiation will be prominent (Tanwar, 2013).

11INTERNATIONAL STRATEGIC MARKETING
Market Choice:
The selected markets that are United States of America, United Kingdom and
Australia are the most established wine markets across the globe.
United States of America:
The US wine market is seen to have a significant growth in recent years which is
pretty evident with the statistics such as the wine production in United States. The country is
currently having a production of 23.9 million hectolitres (Nzwine.com, 2019). Along with
that, the gross margin of the United States wine industry is seen to be 56.4% (Nzwine.com,
2019). Other than this, the increment in the sales growth of the nation provides significant
amount of information regarding the strong base of success that the companies are subjected
to, in the mentioned industry. The sales growth of the wine industry is observed to be 5.2%
and along with that, the total retail value of the wine sales in the mentioned nation is observed
to be 62.2 billion US dollars (Nzwine.com, 2019).
United Kingdom:
With a precise focus on the economic factors of the nation, it is visible that the
exchange rate GDP of the mentioned nation is 1.72 US dollars (Nzwine.com, 2019). Other
than this, the GDP of the mentioned nation is 2535.761 billion US dollars (Nzwine.com,
2019). United Kingdom is able to achieve a GDP growth rate of 1.6% (Nzwine.com, 2019).
Hence, it is visible that the country has a stable environment for the conducting a sustainable
business. Apart from this, the wine market of the nation is expected to generate a revenue of
24440 million US dollars in the year 2019 with a year on year growth rate of 3.6%
(Statista.com, 2019). Along with that, the average revenue per capita in the United Kingdom
wine industry is recorded to be 365 US dollars in the year 2019 (Statista.com, 2019). The