MARKET ENTRY AND MARKETING MIX STRATEGIES

Market Entry and Marketing Mix Strategies

Market Entry and Marketing Mix Strategies

Target Market

With the improvement of people's consumption level and consumption habits change consumer attitudes are shifted from basic physiological needs to higher levels of spiritual needs, and consumption of wine is the proof of this. Wine patency one of the kinds of wine in the world, to set cultural taste, functionality, nutritional in one.

From 1998 to 2009, China's wine production increased from 180,000 tons to 430,000 tons, the annual compound growth rate of 12.1%. China's per capita consumption of wine rose from 0.19 liters / person to about 0.41 liters / person, in particular, increased significantly in recent years (Ballester, J., 2008, p.267-276). At present, China's wine consumption is only a total annual consumption of domestic wine (about 30 million tons) of 1% of the per capita annual consumption of about half a bottle of wine (750 ml / bottle), only 6% of the world, so our wine market there is huge space for development, the wine market needs to be further developed, and huge development potential.

Chinese investment regulations favors Chinese owner and in USA it is win-win situation for both parties and USA is comparatively better than France and UK. Both China and USA has good cost of capital, level of economic growth, less inflation and exchange rates are still favorable for Australia. Australian dollar has gained again against both US dollar and Chinese RMB and Australian wine business owners are little disappointed. USA is a direct market unlike China (Steve & Kim, 2010). However both the China and USA are good market for Australian wine brands. China is no more a communist (now socialist) country and now offers good opportunities for investment. China still did not sign in many international laws agreements. But it is a member country in general agreement on trades and tariffs (GATT). But with Australia, China has a good trade agreement. And USA has got all positive aspects and is a pioneer in adopting international agreements (Rudolf & Sinkovics, 2009).

Global Market and Competition

Production and Consumption of Wine in the World

Between 1999 to 2009 the global wine market grew insignificant, that is to say 0.2% in the 2004-2007 period, this growth came to 6.4%, which means an amount of approximately 16 million hectoliters (258,119,000 to the 274 775 000 of hectoliters). The "actors" on the main stage production of wine are France, Italy, Spain, which hold, in order, 18.6%, 22.5%, and 15.6% of world production. For the year 2008 estimating production stabilization at them, what will happen also in the case of United States and Australia, at which there has been some growth (6.3% 7.3% between 2004 and 2008). The most spectacular growth in production (35.8%) had been recorded in South Africa that rises from three levels in the hierarchy of global producers, ahead of countries such as Germany, Chile, and Portugal (Brown, S., 2005, p.1229-1234).

In 2004, the average rate of growth of wine consumption was 1% and ...