BSBMKG516: Marketing Report on Hardy Wines in Mexico

This marketing report provides a comprehensive analysis of Hardy Wines' potential in the Mexican market. It begins with an introduction outlining the selection of Hardy Wine as the product and sets specific, measurable, achievable, realistic, and time-bound (SMART) business objectives. The report justifies the selection of Mexico as a target market, citing high living standards and a preference for wine consumption. A PEST analysis evaluates the political, economic, social, and technological factors influencing the market. A SWOT analysis assesses the strengths, weaknesses, opportunities, and threats for Hardy Wines. The report details segmentation based on demographic, geographic, psychographic, and behavioral factors, and selects a target segment of middle and upper-income individuals aged 26-45. It outlines distribution and positioning strategies, including the use of supermarkets and liquor stores. The marketing mix (product, price, place, promotion) is discussed, emphasizing attractive packaging, competitive pricing, and both traditional and modern promotional methods. The report concludes with a discussion of the external environment.

MARKETING REPORT
Profile International Markets
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Selection of a product or service.....................................................................................................3
Business objectives..........................................................................................................................3
Reason behind the selection of international market or country.....................................................4
Determination of the suitability of the product or service...............................................................4
PEST analysis of Mexico.................................................................................................................4
Evaluation of market opportunities.................................................................................................5
SWOT analysis of Hardy wines......................................................................................................6
Segmentation of the selected target country....................................................................................6
Selection of the target segment........................................................................................................7
Profile of the target segment............................................................................................................8
Developing a distribution strategy...................................................................................................8
Developing a positioning strategy...................................................................................................8
Calculating a break-even for a product..........................................................................................10
External environment.....................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing plan may be served as a blueprint outlining the business and promotional
activities performed by the company during the year. This presentation is based on the planning
of Hardy wines which seeks to offer its product in Mexico. Concerning this, the presentation will
shed light on the segmentation, targeting and positioning strategy of the firm.
Selection of a product or service
 To have a niche over the international market and mark global presence, the company has
selected Hardy Wine as its product.
 The organization owes its existence in 1853 by Thomas Hardy and further captured the
Australian market by becoming the largest winemaker. Now, Accolade wines enjoy
global business operations in UK, North America, South Africa, Asia, Australia etc.
 Latter is a global wine company which offers world’s best-known brands in all over
countries.
 Company attained success by offering wines in the major countries of the world such as
Australia, UK, US, Canada, Japan, China etc.
Business objectives
To carry the activities pertaining business in an appropriate manner, SMART objectives have
been developed by the firm which are enumerated below:
 Specific: To become a market leader in Mexico by offering the high quality wine at
affordable prices.
 Measurable: By making comparison of company’s performance against the benchmarked
one can easily be measured.
 Achievable: This can be very well understood with instance of Accolade wine company
which attained its objectives by making competent and strategic marketing plan (Meidan,
Moutinho and Chan, 2015).
 Realistic: Objective of the firm is realistic because people of Mexico consume more wine
and the organization offers this as per the taste of the customer.
 Time-bound: Business enterprise can easily attain this objective within the period of 2
years.
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Reason behind the selection of international market or country
 From the outcome of research, company decided to introduce its wine in Mexico.
 It is the most suitable country in terms of the growth and expansion of the business
operations and functions.
 Moreover, in Mexico, living standard of the people is very high. In addition to this,
strong demographics can be identified where houses are common and as dwelling as
compared to apartments (Xu and et,al., 2016).
 Besides this, people of Mexico prefer to opt wine with the food which entails their
lifestyle or pattern.
 Further, in the accounting year 2015 sales of wine has augmented with the very high
pace.
Customers have knowledge about the wines which are available in the market and uses as
beverages on the special occasion or purpose. In this, by offering wine in Mexico Accolade wine
will able to get the desired level of outcome or success
Determination of the suitability of the product or service
PEST analysis of Mexico country
 Political factors
 Economic factors
 Social factors
 Technological factors
In order to analyse the extent to which company will attain success by offering the wine in
Mexico PEST analysis has been undertaken (Fenzi and et.al., 2015). Moreover, political,
economic, social and technological factors have high level of influence on the growth and
performance of the firm. Hence, by evaluating such factors business enterprise can frame cost
effectual competent and strategic framework for the near future
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PEST analysis of Mexico
Political factors: Due to the integration, Mexico is obliged to act in accordance with the rules
and regulations which are framed by US government. Along with
Social factors: Changes in the buying behaviour of Mexican customers are take place with the
increasing rate. Now, customer’s preferences are shift from tastier to healthier food and
beverages. Along with this, living standard of the people also increased (Pyo, 2015). Hence,
Accolade wine will attain success by offering the product which enhance living standard of
people to the significant level.
Economic factors: Inflation and deflation are one of the main elements which clearly present the
information about the economic condition. Mexico is the second largest economy is Latin
America which enjoys effectual balance of payment to the large extent.
Technological factors: In the present era, technological changes are take place with the very
pace in each and every field such as production, buying, selling etc. With the emergence of high
technological advancement now customers prefer to purchase the products through the means of
online which offers high level of convenience to them (Fenzi and et.al., 2015). Along with this,
companies of Mexico also undertake high-tech or modern technologies which helps them in
manufacturing the wine in eco-friendly manner
Evaluation of market opportunities
By doing gap analysis, it has been identified that laws and legislation of Mexico are high
supportive as compared to Brazil and other countries.
 Further, it has been analysed that people of Mexico are highly interested in purchasing
high quality and flavoured wine.
 Lifestyle or pattern of Mexican people is escalating with the very high pace as compared
to the people of Brazil.
 In comparison to Brazil, people of Mexico prefers to take meal with wine.
On the basis of all these aspects, it can be said that by expanding business operations and
functions in Mexico, company can make contribution in the attainment of organizational goals
and objectives.
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SWOT analysis of Hardy wines
Strengths
• Strong brand recognition
• Customer satisfaction and loyalty
• Quality ingredients
Weaknesses
One of the main weaknesses of the firm is that
it fails to make use of growing marketing
channels.
Opportunities
• Wine market is continuously growing
• Growing sales of wine through the
means of online channels of
marketing.
Threats
• Increasing competition
• Varied rules and regulations in
different countries.
Segmentation of the selected target country
Hardy wines can segment Mexican country on the basis of different aspects are enumerated
below:
 Demographic factors: age (26-45 years), middle and upper class group people and
professionals.
 Geographic: Guadalajara and Monterrey cities of Mexico
 Psychographic: Luxurious lifestyle
 Behavioural: Mexican people enjoying meal with wine.
Demographic: Company will majorly segment its customer base on the basis of age, income etc.
Concerning this aspect, business unit will place high level of emphasis on the people who lie
between the ages of 18 to 65 years. Along with this, company also makes focus on serving the
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people who comes under the middle and upper class group having high purchasing power in
luxury products.
Geographic: Company will serve Guadalajara and Monterrey cities of Mexico. In former 1.5
million and in latter 1.1 people are lived. Hence, by offering wine to the people of such cities
business unit can enhance its productivity and profitability (Piercy, 2009).
Psychographic: company will make high level of focus on the people who have luxury lifestyle.
Behavioural: Business entity makes focus on the people who prefer to take meal along with the
wine. Hence, by placing emphasis on such kind of people Accolade wine will be able to fulfil its
aims and objectives in Mexican country.
Selection of the target segment
Demographic factors
 18-25 years old – 10%
 26-45 years old – 70%
 46-65 years old – 20%
Geographic
Middle and upper income people of Guadalajara and Monterrey cities of Mexico will be the
target market of company.
Behavioural
 In this, company will target the people who live in the culture of dinning with wine.
 Along with this, target market also includes individuals with luxury lifestyle.
 Specifically, there are mainly three types of targeting strategies which business unit can
use for attaining success in both new and existing market. It includes differentiated,
undifferentiated and concentrated targeting strategy (McDonald and Wilson 2011). On
the basis of this, company has decided its target market by taking into account
differentiated targeting strategy.
 Demographic: On the basis of age group, company will prepare different strategies which
aids in attracting large pool of customers. Moreover, likes and dislikes of the personnel
are highly affected in accordance with their age. Thus, by preparing distinct marketing
mix, business organization can target the people of following age group more effectively
and efficiently.
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 Concerning this aspect, it can be stated that organization will prepare differentiated
targeting strategy for influencing the decision making of target market. Hence, by
employing distinct and competent marketing mix for each group firm can achieve its
aims and objectives to the great extent.
Profile of the target segment
Various aspects in relation to the target market are as follows:
 Company will target the people who lie in the age group of 26 to 45 years as they like to
enjoy their special occasions or moments with wine.
 Medium and upper income class group will be target market of the business unit who
enjoys food, fashion etc.
 Further, people with exclusive lifestyle will also be the target segment of the customers.
Usually, individuals have desire to live life in such a manner that others want to follow
them. In this, by making focus on such people company can achieve objectives to the
great extent.
Developing a distribution strategy
 Company will distribute its products or services mainly through stores. For this purpose,
business unit will make contact with the most popular supermarkets.
 Moreover, people have high faith on all the products or services of stores from which
they are highly familiar.
 In this, by making contracts with the high well-known stores of Mexico, business unit
would be able to deliver more effectually and efficiently.
 Further, to distribute its product, company will also open its personal liquor store which
will aid them them in deliveing r wine to the customers in the best possible way.
Developing a positioning strategy
 In the strategic business environment, company can achieve success only when they build
distinct image in the mind of customers about their products and services.
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 In this regard, positioning is the most effectual way which provides assistance to the
business unit in attracting the customers against its competitors.
Positioning
 Attributes
 Price
 Quality
4 P’s of marketing mix
 Product: Attractive designed bottles, varied flavors etc.
 Price: competitive pricing strategy
 Place: Supermarket and Liquor stores
 Promotion: Labeling, traditional and modern means of advertisement.
Traditional marketing mix includes four elements such as product, price, place and
promotion. it is the most effectual marketing tool which helps in making efforts in the right
direction.
Product: Company will offer wine in an attractive shaped or designer bottle for offering rich
experience or feeling to the customers (Richard and Colin 2005). The entire bottle will also be
properly labelled that will act as an advertisement. In addition different flavoured wines will be
an additional hand.
Price: Competitive pricing strategy will be employed by the company. Moreover, usually
customers compare quality of the product with its price. Hence, the price range of per bottle will
be from $7.5 to $9.5.
Place: Organization will distribute its products or services through the local supermarkets of
Mexico. Along with this, business unit will also take support of liquor stores for distributing to
the wide group of people (Aras and Crowther, 2012). Thus, by making focus on both the stores,
company would be able to serve more people maximizing their productivity and profitability.
Promotion: In order to promote wine, company will make use of both traditional and modern
means of promotion. Moreover, business organization will make high level of emphasis on the
people who are in the age of 26-45. From research, it has been analysed that in Mexico people of
this age group purchase wine from the supermarket and liquor stores at affordable prices. In this,
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company can influence customers more effectually by placing attractive advertisement boards in
the supermarket. Along with this, company will lay high level of stress on labelling creating a
unique identity in the mind of customers.
Calculating a break-even for a product
Breakeven point is the measure which provides deeper insight about the level at which
revenue earned by the firm will be equal to the cost incurred by them. By this, company can
determine the number of bottle which they need to sell during the year for getting the situation of
no profit-no loss.
For instance:
 Fixed expenses: $14000
 Sales (per unit): $7.5
 Variable cost: $2.5
 Break-even point: 14000 / (7.5 – 2.5)
 = 2800
On the basis of above aspects, it has been stated that Accolade wines requires selling 2800
bottles for getting the break-even point. After this point, company would be able to attain profit.
External environment
 Accolade wine will follow the entire consumer protected laws and legislation while
producing and delivering wine to the end consumer.
 Along with this, company will also provide customers with high quality wine by making
use of effectual ingredients (Alon, Jaffe and Vianelli, 2012).
 Further, business unit will not provide false information to the customers about the
ingredients etc.
 Business organization will appoint the team of expertise personnel for drafting the
promotional campaign and plan in accordance with the laws and legislation.
 Company will not place any advertisement which is against the culture and regulations
of Mexico.
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CONCLUSION
Concluding this, it can articulated that by making focus on people aging between 26-45
years company can get the desired level of outcome. Besides this, it can be inferred that
Accolade wines can position itself on the basis of its attribute, price, quality aspects which will
help them in building and sustaining competitive edge over others. It can be seen in the report,
that Mexican people see wine as a part of their living style. Thus, by introducing wine in Mexico
business organization will widen their global presence.
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REFERENCES
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Publishing.
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John Wiley & Sons.
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Richard, M.S. and Colin G. 2005. Strategic Marketing Management: Planning, Implementation
and Control. Oxford: Butterworth-Heinemann.
Xu, H. and et,al., 2016. Managers' Perceived Risk, Experiential Knowledge, Marketing
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