INNISKILLIN ICEWINE

Inniskillin Icewine and Globalization

INTRODUCTION3

ENVIRONMENTAL FACTORS IN SUCCESS OF INNISKILLIN3

Political Factor4

Economical Factor4

Social Factor5

Technological Factor5

MARKETING STRATEGY6

Expansion Strategy - Duty Free Shops7

Expansion in United States of America8

Expansion in European Market9

GLOBAL MARKET POTENTIAL OF INNISKILLIN9

SWOT Analysis10

Five Forces of Porter10

FUTURE GEOGRAPHIC EXPANSION FOR INNISKILLIN12

MARKETING PLAN14

Product14

Price15

Place15

Promotion15

CONCLUSION16

REFERENCES18

Inniskillin Icewine and Globalization

Introduction

Inniskillin is a company based in Canada established by Donald J.P. Ziraldo and Karl J. Kaiser in the year of 1975 (Vincor website). Kaiser and Ziraldo had a vision to produce premium wine from the grapes grown near Niagra. The company was later merged with T. G. Bright that changed the name to Vincor International Inc. Inniskillin Icewine is a star product for Vincor, which is internationally recognized and successful. Icewine is produced from frozen grapes from winery and considered as an alcoholic dessert. Inniskillin Icewine has also earned numerous awards including Best product of the year in 2004.

This case study will help to understand the success factors of Inniskillin Icewine in Canada, as well as in International market. The case study includes the Inniskillin and globalization in term of marketing strategies applied to expand the Icewine in International market. In this report i am going to evaluate the environmental factors to understand the market potential globally and will recommend future geographic expansion for Icewine and develop an appropriate marketing plan for Inniskillin Icewine.

Environmental Factors in Success of Inniskillin

Understanding of environmental factors will help to know the success of Inniskillin, which has brought the company at respectable status in Canada. PEST analysis is used by market leaders to build their vision of the future (Manktelow & Carlson, 2013). We can analyse Political, Economical, Social and Technological factors in order to analyse the economical factors that has smoothen the way for a company to achieve the status.

Political Factor

Rules and regulations is strict for producing and selling of liquor in Canada. Liquor Control Board of Ontario Stores was the only stores who were allowed to sell liquor in Canada since 1927. Inniskillin was the first company to get the license for producing and selling liquor in Canada by the LCBO. Vincor and Andres Wines contributed 29% of wine consumption and 75% of wine production (LCBO, 2004).Vintners Quality Alliance was signed between the governments of Ontario and British Columbia that helped to improve the quality of wine, which was led by Free Trade Agreement between Canada and United States of America by 1988. The formation of VQA helped Inniskillin to achieve the status to get the recognition for manufacturing the quality wine. Canada faced consolidation in wine industry from 61 companies in 1927 to just six companies in 1974 due to the prohibition in providing licence to wine companies for about 40 years. In reflection to this prohibition, big wine companies bought the licenses from smaller companies to make them expanded. Inniskillin was left with just six other wine companies to compete with in wine industry. Inniskillin took the advantage from the section in the NAFTA (North American Free Trade Agreement) that certified Vincor to have possession of 165 ...