BUSINESS MARKETING

Business Marketing: Chapel Down Vineyard

Marketing Plan

(BS 105: Assignment 2)

Business Marketing: Chapel Down Vineyard

Introduction

The purpose of this plan is to discuss the marketing approaches that are used by Chapel Down Vineyard in order to compete in the market for gaining sustainable market share. There are several objectives that are to be covered through this plan. The plan will enlighten and explore the market position of Chapel Down Vineyard by focusing on the internal and external analysis of the organization.

The plan conducts primary research on the chosen organization in order to identify the sustainability of the company in the market. Moreover, it will use different marketing tools to identify the strengths and weaknesses of the organization; it will identify the current strategies used by the organization in order to propose effective strategies for their brand English Fizz.

PEST Analysis

Political

The winery industry has witnessed radical reforms during the last two decades. In spite of a worldwide recession, the industry has successfully held on market revenue and sustained the market share. It also continued to embrace reforms in political and economic conditions while experiencing social as well as technological changes in the market. The UK is one of the most prosperous and influential nations in the world and has a large role to play on the international stage (Datamonitor, 2011, p. 10).

The current and earlier governments have taken measures which has negatively impacted the industry. Food Standards Agency (FSA) is the primarily regulatory body in the industry which enforces the wine laws and standards in United Kingdom as implemented in EU. All vineyards are also obliged to get themselves register with FSA (Moody's Analytics, 2012, p. n.d.).



Economic Factors

The 2008 economic recession left an indelible impact on the wine industry. General consumers have migrated to more economical wines. Vineyards are being precautious and avoiding vigorous grape harvest since the decreased level of prices are forcing them to keep their normal inventory level to a minimum. Even, in United States, wine consumption in 2009 grew on one side by 1.9 per cent, on the other side; total sales witnessed a decline of 3.3 per cent. However, it is expected that as the economy will recover and financial stability is attained, consumers would move back to high valued wines (Fetscherin & Toncar, 2009, p. 111).

In 2007, UK reached an elevated growth rate of 2.8%, but deceleration in economic activity commenced in 2008 when the GDP contracted by 0.1% (Moody's Analytics, 2012, p. n.d.). In 2009, the economy contracted by 4.9% as external demand remained weak because of a slowdown in the global economy. The economy recovered in 2010 to grow at a sluggish rate of 1.6% (EIU Country Data, 2012, p. n.d.).

The economic slowdown has adversely affected the creation of jobs in the country. The unemployment rate was close to 5.6% in 2008 but reached around 7.6% in 2009. Nearly 2.5 million people were unemployed in 2010, which was the highest number in 12 years (EIU Country Data, 2012, p. ...