Auckland International Campus: Tohu Wines Marketing Plan Report

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AI Summary
This report presents a comprehensive marketing plan for Tohu Wines, a New Zealand-based company launching a new line of organic wines. The report begins with an executive summary and table of contents, followed by an introduction outlining the report's objectives and scope. It includes a company overview, detailing Tohu Wines' history and mission, and then delves into new product development, outlining the steps involved in bringing the organic wine to market, including idea generation, screening, costing, and market strategy. The report identifies the target market, emphasizing the preferences of wine consumers in New Zealand, and then segments the market based on demographic and psychographic factors. It analyzes the distribution channels for the wine, including supermarkets, specialty retail stores, business-to-business channels, and online platforms. The report also includes competitor analysis, SWOT analysis, and PESTEL analysis to assess the market environment. Finally, the report outlines the marketing objectives of Tohu Wines and concludes with a summary of the key findings and recommendations. The report is well-structured and includes references to support its analysis and recommendations.
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Running Head: Marketing Plan
Marketing Plan for Tohu Wines
Name of the Student:
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Author’s Note
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Executive Summary
The following report is based on the marketing plan of Tohu wines which is planning to bring
in a new product line of organic wine. The aim of the report is to cater with the information
of the target audience and the distribution system. However the SWOT analysis and the
PESTLE analysis about the new entrants in the market and opportunity it can serve and
indulge in their marketing activities.
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Table of Contents
Introduction................................................................................................................................3
Company Overview................................................................................................................3
New Product Development.....................................................................................................4
Target Market.........................................................................................................................5
Market Segmentation..............................................................................................................5
Distribution Analysis of Wine................................................................................................6
Competitor Analysis...............................................................................................................7
SWOT Analysis......................................................................................................................8
PESTEL Analysis...................................................................................................................9
Marketing Objectives of TOHU Wine.................................................................................10
The goals to be measured.....................................................................................................10
Conclusion................................................................................................................................11
Reference..................................................................................................................................12
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Introduction
The following report is based on manufacture of a new product range in the New
Zealand market which deals with wine. The aim of the report is to showcase the new line of
product range that deals with organic wines and due to certain circumstances it is not being
able to export to international bodies hence it has to organise a new distribution channel
within New Zealand (Visser, 2016). This paper will comprise of the marketing objectives of
the company that will showcase the positive routine and will facilitate the option of knowing
the ways of conducting the business. The SWOT analysis and the PESTEL analysis will
highlight the major areas of strength, weaknesses, its opportunity in the new market and the
economic condition, political rules and regulation and the threats attracted in the production
and marketing process. The situational analysis of the report will draw its attention towards
the factors of production and the opportunity which the company can cater to and plan its
business based on the cultural aspects (Viana, 2016). It is important for the company to know
the significance of the incorporation of culture within the population of the New Zealand and
this will allow the entrepreneurs to know the exact target market. Having the knowledge of
their taste and preference is also a factor and these elements are taken seriously in order to
serve the target market. The formulation of strategies is depended on the criteria that the
company is working on and is emphasised on the marketing goals and objective. Therefore
the application of critical thinking is to develop a design that will monitor the procedure and
the process for this marketing plan. The marketing plan for this company will comprehend on
the documentation that will outline the marketing efforts for the coming years. The report
will further comprise of marketing objectives within a specified time period.
Name of the Company-
Tohu Wines
Company Overview
The company Tohu Wines came into existence in the year 1998 which produces
quality wines and is recently planning to sell organic wines as well. This is a Maori
organisation that is committed to the people and the environment while maintaining the
quality of the product (Rout and Reid, 2019). The introduction of the new set of products will
be planned and specified in this report and will be managed by the senior management team
for further incorporation of ideas.
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New Product Development
The process of new product development caters to brining in the new products in the
market place. The business takes up this step as there is change in the taste and preference of
the customers, due to increased number of competitors in the market, inculcating advanced
technological machinery and too capitalized on the new opportunity (Lawson, B., Krause, D.
and Potter, A., 2015). Tohu Wines is planning to produce new range of organic wines which
will be distributed throughout New Zealand and will cater its export in the international
market as well. There are various step of the new product line that will be developed with the
first step on idea generation of Tohu Wines. The stage of idea generation will comprise of
business sources for the new product. The concept of organic wines has been optimised by
the company because the organic grape wines are much more healthier and hence it is
produce because it produce healthier skin and high concentration of all he goods and services
that the customer aspire for (Luzzini et al., 2015). The level of antioxidant is up to the mark
which enhances the polyphones and is cardio friendly resveratrol.
The second phase of the product development caters to the screening process which
comprises to filter the variable ones. Hence the company seeks options in order to avoid the
costly measures and the unfeasible ideas (Kong, Feng & Sun 2015). The external industrial
factors affect the business as there are political and legal elements which influence the
production and the entrepreneur’s decision making.
The third stage of the development process of the new line of wines comprise of the
potential cost. According to the research conducted based on the target audience the pricing
strategy of one bottle of organic wines is $20.99 and a set of 6 different types of organic
wines will come within the price range of $95.90. The market strategy of the company is to
set out the identity of the new range of products to the particular target group and also
facilitate the marketing segmentation of the product’s market.
The designing and manufacturing of the wine bottle will come in matt finished bottles
of regular shape. There will be options available to the current and potential audience who
wants to purchase the organic wines (Pink, 2015). There will be the different type of organic
wines that will be available in the market and they are categorised under the following:
Tohu Organic Rose
Farm Hand Tohu Organic Valley
The Mystery Organic Wine
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Tohu Indigo Organic Grape
Grey stone Organic Wine
Twenty-two Rows Organic Wine
Do No Evil Organic Tohu Wine
The last phase of the new product development is the role of commercialization and
rollouts. The favourable stage of the new product development is the large scale of
production because the disruptive style of innovation that is inculcated in the company brings
in the change (Velikova et al., 2015). The business also launches the promotional campaign
for the new line of products that is introduced in the market as a result it will influence the
market and grab more number of potential customers and gather feedback on the new line of
products.
Target Market
According to the market analysis the consumptions of wine is generally the
tremendous consumer of wine and the wine spectators. There are 100 millions of wine
drinkers in the New Zealand market who prefers Tohu Wines as they hold a good reputation
in the market. People normally purchase or order wines when they have guest around or when
they receive an invitation they carry the wine as a symbol of appreciation (Velikova et al.,
2018). There are even potential customers who purchase wines on a regular basis and
consume it along with their meals and normally prefer the organic set because that does not
affect the digestive system. The New Zealand market normally defines the wine as organic
because it is produced from the hand crafted cultivation of their own vineyard and from the
oenological techniques and elements which are authorised for the organic wines. The
previous report that is found is usually the consumers in New Zealand or round the globe is
paying an average of 38% or more for a bottle of organic versus non-organic wines and is
purchasing considerable amount of red wines as the market of organic did not come into the
picture (Sautier et al., 2018). The target audience are usually the female with a relative of
high income and also tended to be over 50 years of age.
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Market Segmentation
The Tohu Wines in order to establish the new line of products which will cater to
organic wine will facilitate the wine that will be good for health and skin. Normally the
consumer prefers wine which will not harm their health and the company in its initial stage
has adopted the strategy of segmenting the market. The two main areas of segmentation for
wine products are the demographic segmentation and the psychographic segmentation.
With reference to
demographic segmentation the consumers are segmented on the
basis of their age and gender (Haider et al., 2017). With a wide range of Tohu wines available
in the market it can be analysed that the people of age group between 30 to 50 normally
purchases wine or red wine and sometimes wish to purchase sprinkling wine. As far as wine
products are concerned the certain product like red and white wines are usually consumed by
the female population while they like to consume with either their authentic cuisine or as a
part of their relaxation (Dietrich et al 2015). There will also be a premium range of products
like “Do No Evil Organic Tohu Wine” and “Grey stone Organic Wine” targeting the upper
class female and male consumers with the reference of the economic conditions.
With reference to their
psychographic segmentation the company would be based on
producing and assisting the lifestyle to grow. As far as the existences of the consumers are
concerned the market will cater the potential audience. In New Zealand the buyers are usually
the skew female or the millennial and high income earners (Hardcastle & Hagger, 2016).
These are the consumers who pursue a healthy lifestyle and have a preference for natural
products. In the New Zealand market it is also true because there is a huge force that is
attached with the buyers in the metropolitan areas.
Distribution Analysis of Wine
Tohu Wine follows the tradition of cultivating wines in its own customer and believes
in the Maori system of cultivation of vineyards. This however refers to the production of
goods that is has the essence of its own nature, growth and life attached with the wine.
However due to the certain consideration the company cannot sell outs product in the
international sectors but has to cater its market within New Zealand only. The following will
be the distribution channel that will assist the marketing of the products in the following
channel:
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Supermarkets: after the effect of Covid-19 the company is planning to sell its product
within the boundaries of New Zealand. So supermarket is one of the main body in which the
company will supply its product to the nearby retail stores like Fresh Choice, Four Square,
New World and Parkn’SAVE. These places have has been chosen as majority of the people
visit the store on a normal basis for purchase of grocery (Forbes & Kennedy, 2016).Specialty Retail Stores: the main retail store that has been chosen for the delivery of the
organic wines is New World and Four Square. These places has been chosen as the place of
distribution because most of the people make a visit in the store either while travelling back
home from work place or while making a visit to someone place.Business to business – restaurants, bars, clubs and hotels: the distribution channel of
organic wine can be strategies in the restaurants, bars, clubs and hotels because the target
audience prefers to spend their weekends and their leisure time in various clubs and gather
along with the family and relatives. Normally the consumers come together for lunch or
dinner in various luxury hotels or bar where they can grab organic wine for consumption
purpose.
Online: the company is also planning to cater the audience with its supply of organic wines
through the online medium because the target audience are also working people and get less
time to visit the store in order to purchase a bottle of wine. Taking these situations into
consideration the company came up with the idea of catering its potential audience with the
online media (Thomson, 2015). The website of Tohu Wine does not require any subscription
and can be easily accessed with signing in through the personal Google account. There are
even special offerings made in and offered at a discounted rate so that it can grab a large
pool of audience.
Competitor Analysis
There is always a fear of competitor or rival firms in the market or any new entrants
that pose to existence in the industry. Therefore in this case the profitable industry will attract
more of consumers and competitors in order to achieve profits. There are competitors in the
market and some of the major rival firm are The Hamilton Beer and Wine, Framingham Wine
Company Limited and Whitehaven Wine Company. There are other rival firms in New
Zealand like Chard Farm Sur Lie Pinot Gris 2017, Bell Hill Chardonnay 2015, Greywacke
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Botrytis Pinot Gris 2011 and Felton Road Bannockburn Riesling 2017 (Ozman-Sullivan,
2017). Keeping these competitors in mind, Tohu Wine has come up with the concept of
manufacturing Organic Wines that is preferred by most of the consumers. The company is
also inculcating special innovative way of marketing which can make it unique in the eyes of
the consumer. This will assist in increasing the production and the revenue of the company.
SWOT Analysis
Strength: the strength of Tohu Wine is too long lasting considered in the initial run of the
business was the factor of competitive advantage over the competitor and the relevant
knowledge about the skill that had the power to enhance the business functioning. The
strength being one of the internal factors of the business environment caters to highlight the
positive points (Li & Bardají, 2017). The second factor of strength was their contribution in
the product line which offered the customers a wide range and options to make a purchase.
The unique way of production and selling of goods attracted a large number of audiences in a
short period and they had not only attracted a pool of customers but also took their feedback
seriously and fulfilled their demands. The company invented the star system to classify the
vineyard and the quality of the grapes which helps in identifying the best blend for the certain
category of wine.
Weakness: the area of weakness is presently the situation of Covid-19 because all the exports
have been shut down and there is no supply in the international market as a result it facing a
huge loss. On the other hand the cheap range of wine has a poor quality of wine. However
this triggers the reputation of the company into a negative direction and damages the
reputation all over the world (Simonova, 2015). The introduction of organic wine can also
hampered with the presence of the competitors in the market as the other firms are also
planning to introduce organic wine. Hence the high priced wine has a higher competition in
the market which further reduces the profit margin of the company.
Opportunity: There are too many opportunity that is available for the entrepreneurs. There
has been a hike in production scale in the business which incurs certain amount of profit on
daily basis. However this is facilitating the entrepreneurs with an idea of recruiting more
candidates who would work and hence increase their scale of production (Lucijano, Mario &
Hrvoje, 2016). Presently the company is focused in manufacturing of organic wines and has
the opportunity of more than five types of wine present in the product line. The biggest
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opportunity for Tohu wines is its planning for expansion in the European market where it can
grab a large number of audiences.
Threat: The factors of threat for Tohu Wine are the growing competitors in the market. With
the innovation of certain product there is a high chance for the rival firm to replicate the same
and sell in their venture (Yujia, 2019). The factor of threat is likely going to confront the
entrepreneurs with the fact that are competing and is already in the existence and moreover
there are other entrepreneurs who are there in the existence who is also planning of launch
similar business within the same location or region.
PESTEL Analysis
Political: the political factor of the Tohu Wine plays a significant factor in determining the
impact of the company in terms of long term profit. The company operates in New Zealand
region and supplies its product in various retail store, supermarkets, bars and restaurants. The
factor of achievements in such a dynamic wine industry that operates almost throughout the
nation has to diversify the systematic risk of political environment (Ferrier, 2017). The
company has to look after the level of corruption in the market specially the regulation of
Food, Beverage & Tobacco sector. There are other factors as well which is attached to the
taxation policy, wage legislation a d intellectual property rights that falls under the political
factor of Tohu.
Economic: the macroeconomic factors such as saving rate, inflation rate, foreign exchange
and the economic determinants that caters the demand of the aggregate investments in an
economy (Salazar, 2019). The other factors of Tohu are the norms of the competitors in the
market which creates an impact on the competitive advantage of the firms. Fir the planning of
the organic wine to be exported after the pandemic is over the company will first look after
the economic system and its stability and then plan to export in that region.
Social: the societal factors of doing things create an impact on the organisation and its
environment in which it is operation. The shared attitudes and beliefs of the target audience
play a great role in how the marketers at Tohu Wines will understand the audience in order to
give the market and how they design the marketing strategy (Dressler, 2018). The company
has also gathered the demographic report of the region as it will cater the organic wine. On
the other hand it is important for the company’s leaders to be motivating and enthusiastic in
order to be a good leader and help in delegating the activities with its employee in the
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vineyard or in the industry. This will hence boost up the morale of the employee and result in
great output in the production.
Technological: the company is presently operating with the latest skilled and recent
technology for its operation in the field. Conduction a technological analysis is important in
order to keep in mind the various type of machine used and the ones which requires
upgrading or disruption. Hence the technological analysis comprise of understanding of the
factors like the cost involved in supply and rate of technological diffusion.
Environmental: it is important for the industry to keep in mind the condition of the
environment and keeping it clean without harming any tree or water body (WINE, 2016). The
wine market has different norms in the functional aspects and keeping in mind the
environmental concern which creates an impact on the profitability of the company. Even
within the state the company has different environmental laws and liability law. The company
will evaluate the environmental standards before it exports its organic wine to any other
country.
Legal: the legal framework of Tohu Wine evaluates before entering the market as it can
check over the organisation’s secret source and also the competitive edge. The company must
also look after the discrimination law, data processing of the previous supply, employment
law for the employees and look after the copy right.
Marketing Objectives of TOHU Wine
The marketing objectives of the company is emphasised on the production of wine
which comprise of high standard and quality. The major objective of the company is its cross-
cultural market with the nearby retail store and super markets as it would help the consumer
in saving travelling cost or delivery charges (Flint, Golicic & Signori, 2016). On the other
hand the company is also offering the opportunity of tasting wine and create a promotional
content as word of mouth works and influences major population. According to the research
conducted it is found that most of the Tohu wines are purchased after the audience taste the
wine and hence it is also offering small bottle of 50ml that will assist the target market to
know their taste and preferences. Therefore the aim of the Tohu Wine is to bring into the
knowledge of the target market that there are differences in pinot noir, merlot and white or
rose wine and provides them with pamphlets that specifies the key features of difference so
that it becomes easy for the consumers to make a purchase (Flint, Signori & Golicic, 2016).
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Lastly the major objective of the company is to handle an Instagram and Facebook page that
will highlight the latest updates and discount offers which will again cater and target a large
number of audiences either online or the one who likes to visit supermarket.
The goals to be measured
The goal of the market is to sell the best organic wine in the market and increase its
business boundaries from one nation to the international market. The concept of introducing
organic wine is because the company is striving to meet the demands of the consumers as
they are health conscious and is concerned about their skin and hair. This is the reason why
the company is aiming to produce a new range of organic wines with more than five types of
variety and with different price range so that it can target the majority of the population.
Conclusion
Hence it can be concluded that the report comprises of the marketing planning of the
Tohu Wine and is planning to start its new range of organic wine. With the new introduction
of organic range of wine the entrepreneurs are planning to market its venture with the new
line of product with the aim of serving the customer with quality and quality. The
competitor’s analysis states the different companies that produce same type of relative
product but it is the innovative strategy of Thu which can make it a different market all
together. Tohu are looking to sell both white wine and red wine over the coming few months
and establish an ongoing market for this new market.
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