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International Wine Marketing Plan

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The Situation Analysis

CUSTOMERS

Customer Analysis in the United States:

The Scarborough Wine Market Report recently released new research on the average American consumer of wine. The report states that within the last three month, approximately 39% of all Americans over the age of 21 have purchased a bottle of wine. In addition, 33% of purchasers have a household income of over $75,000. Furthermore, of those surveyed, 39% of purchasers had attended at least some college. The report went on further to state that 25% of purchasers were between the ages of 21-34 and 45% of purchasers were between the ages of 35-54.

In a recent annual Yankelovich MONITOR survey of American adults, research has found that wine consumers exhibit many specific characteristics. These characteristics observed as a whole develop a picture of individuals on the "leading edge of trends". Unlike many of their peers, wine consumers have the following qualities:

1) Are open to new experiences

2) Decidedly follow their "own path in life"

3) Appreciate intangibles (i.e. experiences and emotions) over objects

4) View name brands as unnecessary

5) Value information to make confident consumer decisions

6) Have developed their goals and priorities

Wine consumers have similar habits in restaurant environments, which include both bars and clubs. In those surveyed approximately 74% of wine consumers purchased wine by the glass. In addition, those who traditionally purchased bottles above $15, continued to purchase wine by the glass. Some critics attribute the recent surge in glass purchases of wine versus bottles, by the need for wine consumers to continue experimenting with new tastes, without overindulging.

Currently, American wine consumers are made up primarily of women, who account for a majority of wine purchases in at all price points. Female consumers enjoy wine in more casual and informal gatherings and say that the allure of wine revolves around its ability to "enhance an experience".

Customer Analysis in Japan:

Population Rate:

As you can see in Japan Exhibit 1, the biggest population is in the 20s and 30s, which counts 27% of the total Japanese population in 2000. Moreover the population in 50 to 64 is 21%, the 2nd biggest pie in the whole population in Japan.

Disposable Income Holding Rate:

Japan Exhibit 2 shows the disposable income of each generation. The amount of disposable income is the biggest in age 50-64. The second biggest disposable income holder is age 25-34 as you can see from the same exhibit.

Wine Market Analysis and Market Growth

Japan Exhibit 3 proves that wine consumption is growing in Japan market. Although the consumed amount is slightly decreased since 2000, the imported wine consumption is still increasing. This data proves that the import wine market is still growing in Japan.

Target Customers Conclusion:

Our target groups for Eberle wines are age 25-35 and age 55-69 who counts 28% in current Japanese population and have high disposable income.

Customer Analysis in Taiwan:

Eastern cultures are distinctly different from Western ones, so there customs affect many aspects of wines. In Taiwan, young people prefer to drink cheaper wines and beer, and more and more businessmen (or those who want to be) drink wine. Many Taiwanese are switching from liquor to wine due to perceived health benefits. Moreover, majority of wines are consumed in socializing events rather than personal pleasure.

There is a general preference for red wines over white wines. In addition, wines, especially the lower-end ones are made more available by chain stores and supermarkets. Taiwan's masses have a palate that favors different wine styles from the western ones. In general, they prefer stronger and slightly sweeter wines.

However, general public wine consumers are not what we are targeting. We would focus on the niche market (30-50 year old businessmen) by using high quality wines. The group of 30-50 accounts for 32% population in Taiwan, 2006, (See Taiwan Exhibit 1). In addition, according to Taiwan Exhibit 2 and Taiwan Exhibit 3, we could get the fact that they have higher disposable income comparing other age groups and disposable income in Taiwan increases continuously. They have higher disposable income and they would enjoy high quality wine either in formal dinning or socializing events. It is true that Taiwanese consumers are very sensitive about price; however, they are willing to pay premium for quality goods.

COMPETITION

Competition Analysis in the United States:

Domestic:

The competition found within the United States is comprised of two distinct categories: national and international. The national aspect of competition is composed of several key states. Each state has numerous wineries, which compete both directly and indirectly within the wine market.

California:

California produces the largest amount of wine within the United States, accounting for approximately 90% of all American production. In 2004, wineries in California numbered over 1,600.

Washington:

Washington falls into the 2nd position with a 2% market share of all wine produced within the United States. In 2004, wineries in Washington totaled over 323.

New York

New York is the 3rd largest produced in the United States with a less than 2% market share. In 2004, there were 203 wineries operational in New York.

Within each of the top three wine producing states, many wineries stand out on numerous award lists. These ranks change dramatically over the years. Unfortunately, the United States' demand for wine cannot be sustained with American wines alone. The United States imports more wine than it exports a year, with a majority of exports coming from France, Italy, and Australia. In 2005, it is approximated that the United States imported around $3.7 billion in wine products.

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