International Marketing Plan. Business & Marketing

International Marketing
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The wine industry and industry structure
Size of the wine industry
The wine industry has recorded significant growth across all parts of the world; this is mainly attributed to the integral role of wine in different cultures. By 2018, the global wine industry was worth over three hundred billion euros, and by 2023, it is estimated that the industry will be worth more than four hundred billion euros (Oloruntoba, 2020). Besides, the win market is expected to grow with a compound annual growth rate of 9.8%. Most importantly, the win market is driven by the high demand for wine, which is linked to the health benefits as well as, premiumization of win products. The average cost of wine in the United Kingdom is about 12 euros, but the price has significantly over the years. The wine industry is highly centralized in western and central Europe, which forms almost thirty percent of the business.
The wine industry in the United Kingdom
It is critical to note that the total area for wine production in the United Kingdom has significantly increased over the years. In 2018, there were over 1900 hectares of land used for wine production in the United Kingdom (Wunsch, 2019). Besides, in terms of wine production, there were close to 120,000 hectoliters of wine produced in the United Kingdom in 2018. It is critical to comprehend that wine produced in the United Kingdom has slowly gained international recognition from different markets, and this has increased sales recorded from both domestic and international markets. The growth of demand and demand for wine in the United Kingdom can be demonstrated by the increase of acreage of vineyards which have almost doubled from 2008 to 2018. Besides, there are different challenges that are faced by large wine producers in the United Kingdom, such as high competition from medium producers and other brands imported from other European countries.
The current situation for Berry Brothers & Rudd
Berry Brothers & Rudd (BBR) is the oldest wine and spirit supplier in the United Kingdom. It was established in the 17th century under the presidency of Widow Bourne and grew in fame until it became one of the suppliers of the imperial household from the time of King George III. It also had among its customers the Aga Khan, Lord Byron, and William Pitt the Younger. The business has evolved with the time that it even has an online shop for selling its wine, which it launched in 1994. BBR deals in corporate entertainment, wine schools and tastings, a wine club, and guidance on fine wine venture. The business also owns Berry’s Broking Exchange (BBX), a fine wine transaction podium through which people are able to sell and buy wines that are warehoused in the company’s store. Additionally, BBR was the first company to establish an online wine shop and also opened a platform that made it possible for consumers to sell and buy wine from the firm’s bonded warehouse. It is crucial to comprehend that the company has realized a considerable potential in overseas business, which has increased the company’s interest to venture into the Chinese market.
Chinese wine market
It is critical to understand that imported wines in China account for about 40 percent of the market. Additionally, the increase in consumers has facilitated a 7 percent growth from 2016 to 2019 (Arthur, 2019). Most importantly, wine consumers in China are willing to spend more money on better quality wine, and this has attracted more international wine producers such as BBR. Besides, it is crucial noting that rice wine is the most common in China; however, the availability of imported grape wine has become a symbol of luxury and social status; this has created business opportunities for other internationally recognized brands such as BBR that are known for producing quality wine brands.
Customer segmentation
The target Chinese wine market is complex since it provides Chinese-based wine products as well as other brands provided by numerous multi-national players that are focused on dominating the market. Additionally, it is critical to comprehend that there are numerous grape wine varieties that are used in producing different brands of wine, and there is, therefore, a need for Berry Brothers & Rudd to carry out proper market segmentation to ensure that the needs of all different groups of customers are met. Wine consumers in China can be segmented following different factors; for example, geographic segmentation would help in subdividing potential customers based on where they live in the urban or rural areas (Bo Liu et al., 2014). On the other side, demographic segmentation would help in grouping consumers based on their age, income generation, and gender, among other factors.
Besides, consumers in China would be categorized into the mainstream casuals, which include the group of individuals who have adopted a culture of drinking wine. Besides, the targeted individuals include consumers who are high-spending and more interested in international brands; they look beyond the traditional wine categories. Besides, in the Chinese wine market, there are a group of consumers who are categorized as status seekers and includes individuals who are keen on consuming wine brands that signify their social status. Further, health seekers are critical in consuming wine brands that are vital in facilitating their healthy living. Based on these insights, BBR should be critical in producing different wine brands that meet the needs and requirements of every consumer in the Chinese market.
Identification of target markets
Berry Brothers & Rudd is determined to ensure that it provides quality wine products for its target population in the Chinese market. Ideally, BBR should be the focus of the group of consumers who have developed a lifestyle for consuming wines, earn income, and have a high disposable income. It is vital to comprehend that focusing more on wine enthusiastic who are knowledgeable about the various different types of wines and live in affluent suburban would be critical for the company since it can help in promoting its sales in the Chinese market. Besides, it is necessary for BBR to target everyday loyal customers who like wines offered by established wineries and the newcomers, particularly the millennials who constitute the high number of wine consumers in the Chinese market. Ideally, focusing on the right groups of wine consumers in the Chinese market would be crucial in determining the success of the company in the new market and would also influence the company’s revenue generation from international markets.
Brand positioning
The investment made by Berry Brothers & Rudd in the new Chinese is ideal for the growth of the business, and it is, therefore, essential to ensure that the company creates an indelible impression which is crucial in helping the consumers to engage with the company’s products at a more personal and emotional level. It is ideal for the BBR to position its wines as quality imported products. This may be an ideal way of ensuring that the firm differentiates its products from those provided by other foreign players in the Chinese market. Additionally, marking the company’s wine brands and quality products would be crucial in attracting euthanasic wine lovers who are willing and ready to pay extra cost for quality drinks. Ideally, every player in the wine industry is concerned and focused on emphasizing quality as an effective way of distinguishing oneself from other players in the market (Guettler, 2019). In this regard, there is a need to ...