ass 2 wine
Southern Peninsula Wines
Deciding which is the right country for entering the market is very important. Making a business in a new market is a risky investment and therefore needs a lot of planning. The country should be the best opportunity for the business. There are many factors that will affect the potential of a business in certain markets and therefore each factor needs to be analysed.
I have chosen China for my country that I will be entering first. I have many reasons for this decision and this report will explain my reasons for choosing China.
Political Risk Factors
Economic risk Factors
Market Risks Factors
The only trade barriers that could affect the business is the communication. This is hard to get passed for International Markets. Making your labels in different languages and maybe joint venturing with a Chinese business can help by will not solve this language barrier.
The economy of China is generally just increase and the cycle is not affecting the business so much. The market is stable and the financial factors are stable. There are no risks that are involved with China’s business cycles. China has a lot of potential to be a good market if the products are genuine and have high reputation in other countries.
China has become one of the top Wine markets in the world. It has taken place at 5th in the world for its large wine market. This includes domestic and import Wines. The number of bottles sold in China during the year of 2011 was estimated to be about 1.6 billion. This was however quite small compared to United States and France which had the number of sales of wine to be over 4 billion.
The Wine industry in China is still increasing as the past few years has been measured to be over 20% in growth rates. The Wine market in China has also been estimated to grow a further 50% over the next few years.
The market needs of Southern Peninsula Wine are to be of high quality and have the strong taste. Chinese wines have been known to be very strong. This means that the wines must be suit the taste and preferences of the new international market.
The geographic market segmentation of the target market would be the richer and more populated cities in China. These people can afford to pay for wines more regularly.
The Demographic market segmentation of the target market would be people aged 20-70. Younger adults prefer beers and spirits over the strong taste of wine.
Behavioral market segmentation of the target market would be the people who hold…...
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