Monte Creek Winery: Opportunity Identification & Australian Market

This report discusses the marketing activities of Monte Creek Ranch Winery, a Canadian winemaker, focusing on its plan to export "2016 Hands up White Wine" to Australia. It covers the company's history, mission, vision, and B2B marketing objectives. A SWOT analysis, resource analysis, and competitive advantage analysis are conducted to understand the company's position. Porter's Five Forces model is applied to assess the competitive landscape. The report also examines consumer behavior and the purchasing process of targeted business customers in Australia. Appendices include figures on wine sales in British Columbia, channel sales mix, marketing methods, and the Australian competitive wine market. The core strategy revolves around penetrating the Australian market with a unique, high-quality wine blend, challenging local wineries and establishing a strong brand presence.

Running head: OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
Assignment 1, 2, 3 and 4
Submitted by:
AnjamPalikkandiNazar
T00575961
Thompson Rivers University

2OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
Table of Contents
Part 1................................................................................................................................................4
Introduction..................................................................................................................................4
Overview of the Chosen Company..............................................................................................4
Part 2................................................................................................................................................5
Opportunity Identification and Marketing Strategy Development..............................................5
Mission Statement of the Company.............................................................................................6
Vision Statement of the Company...............................................................................................7
B2B Marketing Objectives of the Company...............................................................................8
Product-Market of the Company.................................................................................................8
SWOT Analysis.........................................................................................................................10
Resource Analysis.....................................................................................................................11
Competitive Advantage Analysis..............................................................................................12
Competition of the Chosen Company........................................................................................12
Porter’s Five Forces...................................................................................................................12
B2B Marketing Strategy for the Company................................................................................13
Part 3..............................................................................................................................................15
Consumer Behavior and Purchasing Process Analysis.............................................................15
Research and Analysis of the Purchasing Process of the Targeted Business Customers..........15
Analysis of the Typical Behaviors of the targeted customers...................................................16
References......................................................................................................................................17
Appendices....................................................................................................................................20
Appendix 1.................................................................................................................................20
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3OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
Figure 1: Retail Sales of Wine in British Columbia..................................................................20
Appendix 2.................................................................................................................................21
Figure 2: Channel Sales Mix of Monte Creek Ranch Winery...................................................21
Appendix 3.................................................................................................................................22
Figure 3: Wine Marketing Methods and Results of Monte Creek Ranch Winery....................22
Appendix 4.................................................................................................................................23
Figure 4: Australian Competitive Wine Market........................................................................23
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4OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
Part 1
Introduction
The following report is based on the discussion of the marketing activities of a specified
Wine company in Kamloops, Canada. The report will integrate the different marketing concepts,
business marketing, strategies of marketing and some other theories in marketing to develop an
effective marketing plan. My chosen company is Monte Creek Ranch Winery and this report
highlights the different kinds of marketing features of the company that helps it to achieve a
unique identity in the Canadian Wine Market.
Overview of the Chosen Company
Monte Creek Ranch Winery Company has been one of the best winemakers of Canada.
Before providing an overview of the company it is important to provide a brief history of the
area where the firm is located (montecreekranchwinery.com, 2018). The organization is based in
the Thompson Valley which was once the hotspot for all types of people especially the most
notorious train robbers like Billy Miner. They targeted the area as it fetched them huge wealth
during the building of the West. The area is located along the South Thompson River and to the
east of the Kamloops region. The area was also known as “Ducks” just because a British settler
named Jacob Ducks ranched the particular area for a long time.
The present-day Monte Creek area of Canada is famous for the farming of vines and
grapes that are needed to produce wines. it was not before the year 2009 when the large property
was bought by a business family who utilized the vast land and established a large winery and
grape yard that provided the raw material for the production of Canadian Wine. The ranch now
spreads over more than 1200 acres and houses 75 acres of planted vineyards on either side of the
river. The focus of the company is to grow a strong vineyard and to raise healthy cattle. The
company has opened a Tasting room for the public and an open terrace restaurant where people
can enjoy a large variety of wine in a great atmosphere.
The presence of an agricultural background within the organization is one of the biggest
advantages for the owners of the company as because it helps them to provide great importance
to have a healthy Permaculture to ensure diversity in the use of the agricultural land use. The
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5OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
Ranch is owned by the local BC family (montecreekranchwinery.com, 2018). Though the control
of the business is totally in hands of the family, the owners have appointed a group of trusted
team of on-site professionals to manage the daily winery activities and ranch operations.
The General Manager of the company is Erik Fisher who brings along with him 20 years
of sales, marketing and hospitality experience with him. He was selected as the General Manager
because of his earlier working experience with the largest Canadian owned Wine Company in
Andrew Peller Limited. His engagement in the launch of Red Bull Energy Drink is a great
achievement for him and has surely played a major role in his selection as the General Manager
of the company. Apart from him, there are other experts like Rudi Eiter (Operations Manager),
Ashley Demedeiros (Marketing Manager) to name a few.
Part 2
Opportunity Identification and Marketing Strategy Development
The management of the business has decided to export “2016 Hands up White Wine”, a
unique product of their company to Australia. The export of the wine in Australia will help the
organization to attain the status of a truly global company. The selection of Australia for the
export has been because of the highly profitable wine market of the country and the Australian
customers liking for different varieties of Wine (montecreekranchwinery.com, 2018). The
opportunity identification and the development of the strategy have been completed after the
analysis of the mission and vision statement along with the analysis of the different marketing
objectives of the organization. The different marketing features of the organization have been
listed below accordingly.
Mission Statement of the Company
Monte Creek Ranch Winery is one of the best wineries of Canada. The Company is
owned by a family has formulated its main vision to produce wines and other farm fresh products
that enrich the life and express the uniqueness of the Thompson Valley vineyards, blueberry
plantation and grape yards of Canada (montecreekranchwinery.com, 2018). The tasting room and
the open terrace restaurant is one of the biggest attractions for the people who love to have wine
in a picturesque locality. The luxury service along with a warm hospitality towards the customers
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6OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
is one of the major strengths for the company (montecreekranchwinery.com, 2018). This is
achieved by providing great training to the employees of the organization. Apart from this the
company also aims to achieve the top spot in Canada in terms of Wine Quality and production in
the next few years.
The people being the foundation of the company, the management of the organization
values the people very much. The employees are provided with a safe and secure workplace,
whereas the customers are provided with a friendly and warm atmosphere that helps in the
creation of a strong bond between the employees and the customers with the management of the
organization (Olsen, Wagner &Thack, 2016). A relationship is considered to be a bond that
unites the people and helps to value the authentic and reliable relationships among the people
including the employees and the customers.
Persistence and determination above talent and genius help to drive the business onward
during times of strength or during an ongoing severe crisis. The presence of such a mission
statement of the company helps them to overcome the hurdles that generally occur in a highly
competitive environment. The company also recognizes quality, dedication, passion, and
leadership as their main aims.
Vision Statement of the Company
The area around the winery is recognized as one of the top regions producing wines
across the globe. The main vision of the company is to enrich the lives of the people who love to
have wine (montecreekranchwinery.com, 2018). The aim of the company is to produce the best
quality wine for the people. The vision statement of the company is in lines with its ambitions to
be the best and the largest winemakers of Canada and increase its global presence. The vision
statement along with the mission statement of the company has been formulated to help the
company be the best among the other Wine making countries of the North American country.
The company aims to achieve the different visionary goals by a different process. The
management of the company has formulated a number of different visionary goals. The British
Columbia Wineries that owns the Ranch are knowledgeable enough about their role and purpose
of the BC Wine Institute in contributing to the success of the business
(montecreekranchwinery.com, 2018). It maintains a clear and transparent process for responding
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7OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
to different kind of matters that generally have the potential to impact the BC institute and the
wine industry owned by the group. The company also supports and helps in the growth of the
different brands of Wine by labeling them with a premium BC Wine standard. A setting of the
standard helps the organization to make the different brands the primary choice of the customers.
B2B Marketing Objectives of the Company
According to, (Bresciani, Ferraris, Santoro & Nilsen, 2016) there are different types of
firms that apply the B2B marketing strategies in their organization. These types of organizations
often think of direct and outbound techniques that help them to communicate directly with the
clients or the prospective buyers of the organization. However, the change in the world of B2B
marketing strategies and the behavior of the professional service buyers have forced the
management of the firms to change their marketing strategy and select a different kind of
strategies that can be helpful for the organization.
The main objectives of the company are to penetrate the niche Australian market by
selling their wines to the selected range of the customers in Australia. The management of the
Monte Creek Ranch Winery employed their marketing team in Australia to identify and mark out
the market for the product. The organization has decided to set up a new distribution channel that
will be effective for the proper sell of the products. The company wants their product to set up a
new mark in the category of fine blended western wine that has a healthy demand among a large
number of Australian residents.
Product-Market of the Company
The management of the company intends to launch the “2016 Hands up White Wine”in
Australia. The choice of Australia has been made because of the large market for Wine in the
country. The love for Wine and the different types of wine varieties is one of the major reasons
for the export of the wine in the country. Australia as the product market of the company is thus
quite well suited and offers the prospect of profitability to the company. The new wine which
will be exported to the country is unique because of the blend of Anjou pear, fresh cut pineapple,
jasmine, and lemon custard. Apart from this feature the wine also provides a great mix up of
tropical fruits that help it to give a unique essence.
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8OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
The following Wine thus provides a unique European blend to the taste of the wine which
will be highly appreciated by the Australian customers. The introduction of the “2016 Hands up
White Wine”will pave the way for more and more such different products of the company
which on the other hand will enhance the global outreach of the organization. According to the
management of the company, innovation will be the key to the success of the company.
Innovation will help the company to set up its business in an effective and proper manner in the
highly competitive market of Australia. The market research of the company has found out that
most of the local Australian Wineries have been producing low-quality wines which lack taste
and are often unhealthy. This weakness of the local companies can be utilized in a smart manner
by Monte Creek Ranch Winery as they guarantee the quality of “2016 Hands up White
Wine”that is to be exported to Australia.
The innovative product that is to be marketed in the country can thus challenge the local
wineries easily and will surely become the first preference for the residents of the country who
are used to low-quality cheap wine. The new taste and the high quality guaranteed by the
management of Monte Creek Ranch Winery will help the company to attain success in the
Australian market. The product-market of the company can be well analyzed by undertaking an
internal and external analysis (Giacomarra, Galati,Crescimanno&Tinervia, 2016). The internal
along with the external analysis will be key to the success of the organization in the market.
SWOT Analysis
STRENGTH OPPORTUNITIES
 Personalized Service
 Connection with the
customers
 Best Quality products
 Unique Taste of Wine
 Exploring new markets
 Innovation and marketing
opportunities
 Social Media Presence
can be a new opportunity
WEAKNESSES THREATS
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9OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY Large startup costs
 Absence of international
expertise
 Absence of other large
wine hubs
 High competition from
other local and
international wineries
 Different types of laws
and regulations
 Strength
Personalized service is one of the main strengths of the company. The personalized services
of the company are generally provided by the organization by providing unique wine and other
products for a selective range of customers. As seen by, Pomarici, (2016) the management of the
company has a clear note of all the niche customers and their tastes. Apart from this the company
also possesses a unique strength of a close and strong bonding with most of its customers. The
bonding helps the organization to easily understand the tastes and demands of the consumers and
provide the products of their choice. The Wine is produced from the fresh cultivation of the farm.
This includes the likes of raspberries, blueberries, honey and many more as such. This adds to a
unique taste of the wine which helps to add a competitive advantage to the organization.
 Weaknesses
The large startupcosts was a huge expense for the British Columbia family. They have been
gradually repaying all the loans they have taken from different financial institutions which makes
it difficult for the organization to invest in some huge opportunities that could help them expand
the business. Therefore, the absence of other wine hubs like the Monte Creek Ranch is one of the
major weaknesses of the company. Apart from this, the lack of proper international expertise is a
major setback for the organization (Fiore, Vrontis, Silvestri&Contò, 2016).
 Opportunities
The exploration of new opportunities by the marketing department of the Wine Company can
help them to expand business in different ways. Innovative Marketing opportunities can also add
up to the success of the organization. The gradual increase in social media and the opening of the
online wine shop of the company is a major milestone for the company.
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10OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
 Threats
International, as well as local Australian Wineries like Wirra, Wirra Vineyards, Tanbik
Winery, d’Arenberg, and many more such similar wineries, throw a critical challenge to the
management of the Canadian Winery (Bonn, Cronin Jr & Cho, 2016). The offbeat laws and
regulations are also a huge factor to the success of the organization in the Australian market.
Resource Analysis
The analysis of the different resources of the organization helps to understand the
competency level of the firm in markets. The resource analysis will thus help to get a clear idea
of the competency of the firm in Australia. It also helps the firm to understand the value of the
resources. The four elements on which the firm will put its focus on are;
Financial- The funding of the company in Australia, selecting a local Australian investor comes
under the financial heads of the company.
Human- The choice of the customer and selection of the target market for the “2016 Hands up
White Wine”.
Intellectual- The advertisement and promotion of the wine have to be done properly to enhance
the client database and make the customers understand the reputation of the brand to be launched
by the company (Menghini, 2015).
Physical- Selection of the appropriate physical means of advertisement and communication
comes under the physical heads of the resource.
Competitive Advantage Analysis
Competition of the Chosen Company
As mentioned earlier the product of the company “2016 Hands up White Wine”faces
tough competition from the likes of Wirra, Wirra Vineyards, Tanbik Winery, d’Arenberg and
many more different international brands. The wine brand to be launched by the company will
face competition from established brands like that of Penfolds, Grange Shiraz, Jim Barry, and
many others.
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11OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
Porter’s Five Forces
The Porter’s Five Forces will further help to determine the competitive analysis of the
organization. The analysis is as follows;
1. A threat of New Entrants- The threat of new entrants is moderate as because capital
investments requirements are not high as compared to the market of other countries.
Apart from this, the customer switching price is also small in number which helps the
organization to easily fight away any sort of competition offered by the lower segments
of the wine market.
2. A threat of Substitutes- In recent times there has been a high rise in the demand of Rum
and Beer in the Australian market. A recent survey shows that last year most of the
people in Australia have preferred Beer and Rum over Wine. This is a worrying sign for
the organization.
3. Bargaining Power of Suppliers- The suppliers in Australia will be the king as the
organization will have to depend on them for the first few years before they establish a
stronghold in the market.
4. Bargaining Power of Buyers-The industry in Australia is marked with an oversupply and
the buyer will have much less power than the suppliers in the market. The oversupply of
the wine products is thus a disadvantage for the customers of the wine products in the
country.
5. The intensity of Rivalry- There is a huge rivalry in the market between the local and the
international brands and “2016 Hands up White Wine” will find it difficult to make
profit easily.
B2B Marketing Strategy for the Company
The business organization can take a few measures to establish a sound B2B business
strategy for selling its “2016 Hands up White Wine” in Australia. First of all, the company
needs to identify and locate a niche market and niche customers for its product and have to offer
discounts and free samples to woo buyers. This strategy is done basically because the company
will be new in the market of the country. Apart from this the company can send marketing
representatives to attend different trade shows and interact with the potential customers and
manage a proper and efficient search engine to optimize its presence in the social media.
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12OPPORTUNITY IDENTIFICATION AND MARKET STRATEGY
Monte Creek Ranch Winery of Canada is a recognized leader in Wine marketing. The
company has the unique ability to produce and sell the best wines as because the wines are
produced from the products of their own vineyard and farms. As we have seen the organization
has targeted Australia as its destination to market and launch its “2016 Hands up White Wine”.
The target of the management in these regards is to achieve large sales, identify and target the
right customers, selection of the perfect channels for distribution and ultimately ensure the
greater recognition of their solo brand in Australia. The strategy of the management in these
regards is the achievement of a particular sales and brand goals. The organization has decided to
enter into a strategic partnership with a famous local Winery named, The Wine Company
(australianvintage.com, 2018). The strategic partnership paves the way for the organisation to
gain a readily avialable market for the Product. Such an unique advantage will help Monte Creek
Ranch Winery to Secure their stable présence in Australia. The identification and the
implémentation of the stratégies will thus help the organisation to gain new contacts in the
Australian market which will help ensure the compétitive edge in the market.
Part 3
Consumer Behavior and Purchasing Process Analysis
Research and Analysis of the Purchasing Process of the Targeted Business Customers
The main highlights of the purchasing process analysis of the “2016 Hands up White
Wine” in Australia are mainly dependent on;
1. Brand- According to, (Bonn, Cronin Jr & Cho, 2016) the brand power of the wine is
important in this regard as Australians have a great taste for Wine and thus the brand
power will be a large determinant for the success of the Wine in the market.
2. Taste- As said earlier, the taste of the Australians for great quality wine needs to be
considered. The Canadian Company must provide the best and unique wine to attract the
customers to the product.
3. Price- A reasonable yet standard price will be key to the purchasing process of the wine
by the targeted consumers.
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