Truco Wine Export to Thailand: Market Analysis, Strategies and Factors

This report provides a comprehensive analysis of Truco's wine export activities, specifically focusing on the Thailand market. It begins with an introduction to the Truco brand, its origin, and its high-quality wine products. The report then delves into the concept of export, outlining its characteristics and importance for business expansion. A significant portion of the report is dedicated to the wine industry in Thailand, including market trends, consumer preferences, and the competitive landscape. The report identifies factors that Truco should consider for successful export to Thailand, such as meeting market demands and understanding the competitive environment. The analysis includes the import policies, international market demand, and international agreements. The report concludes by summarizing the key findings and providing recommendations for Truco's export strategy. The report is based on the provided resources including market research, industry reports, and academic publications. The report also includes a reference list.

Running head: COMPANY ANALYSIS: TRUCO
COMPANY ANALYSIS: TRUCO
Name of the student
Name of the university
Author Note

1COMPANY ANALYSIS: TRUCO
Table of Contents
Introduction.................................................................................................................................................2
Background..................................................................................................................................................2
Overview of the company.......................................................................................................................2
Export and its characteristics...................................................................................................................3
Wine export characteristics of Thailand......................................................................................................4
Wine industry of Thailand.......................................................................................................................4
Factors Truco can consider for export in Thailand.......................................................................................5
Conclusion...................................................................................................................................................6

2COMPANY ANALYSIS: TRUCO
Introduction
Truco is an internationally acclaimed brand of alcoholic beverages that operates and
functions throughout the world. The Truco brand is originally from Argentina, from the
continent of South America. The wine that Truco brand serves is of high quality and generally
receives 4 among 5 stars in terms of ratings and ranking. The quality of the wine along with the
quantity is premium and internationally consumed (Totalwine.com.2019). Export activities are
taken up by the business enterprises to increase its sale and revenue along with expansion of their
business. The respective paper is to introspect, analyze and interpret Truco’s wine export
activities to Thailand. The paper is in report format where Truco company’s position, marketing
strategies and export activities are also listed and analyzed with special reference to South- east
asia, mainly, Thailand.
Background
Overview of the company
Truco winery is an internationally acclaimed brand of alcoholic beverages that operates
and functions throughout the world. The Truco brand is originally from Argentina, from the
continent of South America. The wine that Truco brand serves is of high quality and generally
receives 4 among 5 stars in terms of ratings and ranking. The quality of the wine along with the
quantity is premium and internationally consumed. The company caters to the needs of the
alcohol favoring population of Argentina. The company carries out its sales operations online,
with the help of different online beverage purchasing portals as well as offline, at different
winery and alcohol outlets of Argentina (Totalwine.com.2019).

3COMPANY ANALYSIS: TRUCO
Export and its characteristics
Export, in international trade, can be defined as the trade of goods and services from one
country to another country. Exports are essential for a company or an enterprise as it not only
brings a considerable amount of revenue for the company but also opens new doors and ideas to
trade and commerce in the foreign land for the company (Feenstra 2015). Exports have mostly
proved to be positive in terms of earning profit and revenue for the businesses as well as the
countries from where the businesses are operating exports. Certain basic and customary
characteristics of export are moving the marketing and sales units of the business outside the
respective country from where the business started to another country where the company has
been planning to build its export outlets or sell the products or services it manufactures. Certain
factors have to be remembered before enrolling into exports which are provided hereafter.
1. Tariff and import policies of the receiving country: The tariff and import- export policies
of a country should be considered while taking the responsibility of exporting products
and services from one country to the other. Tariffs are governmental laws, regulations,
policies and practices that are generally formulated in order to protect the domiciliary and
local products from the international ones or articulately stimulate exports of a particular
domestic product or services. Tariffs are different in different countries and the rules and
regulations of tariffs change from one country to the other. Therefore, tariffs should be
considered while export (Fan, Li and Yeaple, 2015).
2. International market demand of the product: While carrying out an export activity, the
company should also be aware of the market demand of the respective product or service

4COMPANY ANALYSIS: TRUCO
in the market of the foreign country. The company should investigate and evaluate the
market demand of the respective product or service for export as it would be expecting
profit and revenue income from the respective country. If the market demand of the
respective goods and services tend to be low, the idea of export can again be revisited
(Farole 2013).
3. International agreements: International trade agreements are the agreements that happen
when two or more nations agree on the terms of trade between them. The trade
agreements determine the rate of customs, duties, tariffs and other impositions of import
and export. All trade agreements are likely to affect international trade (Fan and Yeaple
2015).
Wine export characteristics of Thailand
Wine industry of Thailand
Thailand has demography of approximately 67 million. It has been estimated that atleast
10 per cent of the population of Thailand are regular or occasional alcohol takers. The most
preferred alcohol of Thailand is most probably, wine. Wine accounts to at least 3 per cent of
alcohol beverage market (French 2015). If compared the market trends and demands of beer or
other spirits with that of wine, it can be observed that, though wine consumers are less in number
compared to the beer and other spirit consumers, the awareness and appreciation of fine and
quintessential vintage wines among the Thai consumers are relatively higher than that of the beer
and other hard drink consumers, according to the survey. Wine consumption is increasing
throughout Thailand and often the red and white wine consumption is considered to be beneficial
for health, even though it is not clear whether the respective fact is a food fad or reality (Banks et
al. 2013). There are ten local wine producers in Thailand and the retail price begins from $6 per

5COMPANY ANALYSIS: TRUCO
bottle. Most of the imported wines that come to Thailand are from the countries such as France,
USA, Chile and Italy.
Recent market trends of wine industry in Thailand are positive, prolific and provide a myriad of
opportunities to the wineries and wine manufacturing companies. Wine drinkers in Thailand are
between 22 to 55 years of age. In Thailand, red wine dominates the market and holds 70 per cent
share of the beverage market. However, wine consumption is limited to middle-to- higher
income Thai citizens and tourists as well as expatriates (Chong 2017).
Factors Truco can consider for export in Thailand
Certain factors which Truco should consider while exporting wine in Thailand are provided
hereafter.
1. Meeting the demands: Since Truco provides the best quality of wine to its consumers,
Truco can materialize a successful export in Thailand. As the Thai citizens are
quintessentially selective and cosmopolitan in cases of selecting antiquity alcoholic
beverages such as wine and whiskey, the company can be successful in the Thai market.
As Truco is considered to be one of the best brands in Argentina and Thailand often
imports alcohol from Chile and South America, Truco can have special edge in the Thai
market of alcoholic beverages.
2. Competition: Thailand has a colossal market which has also involved many existing as
well as established wine industries and companies. Such established wine industries are

6COMPANY ANALYSIS: TRUCO
very popular in Thailand and also have special edges and competitive advantages in the
market of the country. Such companies can pose threat to the company Truco. Truco is a
medium sized company which has average ratings or gradings in terms of its brand. The
company is suggested to massively advertise themselves and introspect intensely into the
wine industry of the country in order to realize its potential and develop a competitive
advantage against all other established alcohol companies.
Conclusion
The respective paper concludes to be introspecting, analyzing and interpreting Truco’s
wine export activities to Thailand. The respective report has provided a precise information
about the market trends of alcoholic beverages in Thailand with emphasis to wine consumption.
The company has provided a brief explanation of export and its characteristics. The paper
concludes to be in report format where Truco company’s position, marketing strategies and
export activities are also listed and analyzed with special reference to South- east asia, mainly,
Thailand.

7COMPANY ANALYSIS: TRUCO
References:
Banks, G., Klinsrisuk, R., Dilokwanich, S. and Stupples, P., 2013. Wines without Latitude:
Global and local forces and the geography of the Thai wine industry. EchoGéo, (23).
Chong, K.L., 2017. Thailand wine tourism: a dream or a reality?. Asia Pacific Journal of
Tourism Research, 22(6), pp.604-614.
Fan, H., Li, Y.A. and Yeaple, S.R., 2015. Trade liberalization, quality, and export prices. Review
of Economics and Statistics, 97(5), pp.1033-1051.
Farole, T. ed., 2013. The internal geography of trade: Lagging regions and global markets. The
World Bank.
Feenstra, R.C., 2015. Advanced international trade: theory and evidence. Princeton university
press.
French, J., 2015. Thailand's Effective Rate of Protection on Wine. French, J.(2015). Thailand's
Effective Rate of Protection on Wine, Southeast Asian Journal of Economics, 3(1).
Totalwine.com.2019. Available at: https://www.totalwine.com/wine/red-wine/red-blend/truco-
red-blend/p/191894747