References 8 Essay Example
Table of Contents
Risk Factors 2
Marketing Opportunities 3
Viability of the Marketing Opportunities 5
This paper analyzes the marketing opportunities which Southern Peninsula Wines has in India. Since, Southern Peninsula Wines has identified India as a destination to carry out trade so the paper looks at identifying the marketing opportunities. The paper in the beginning analyzes the risk factors through a PESTEL analysis, followed by marketing opportunities, the manner through which the company will enter India, the viability of the chosen marketing mechanism and finally the recommendations. This would thereby help to evaluate the manner in which Southern Peninsula Wines will be able to identify the appropriate marketing strategies to increase their chances of being successful.
Southern Peninsula Wines while looking to work in India needs to find out the different risk which the situation presents. The analysis of the different risk factors before Southern Peninsula Wines is as
Political, Financial & Corruption Risk: India is a democratic country where the leader is directly elected by the people. The present political condition is a stable one as the presently elected government has majority and is thereby able to take different decisions. The present economic condition favours investments from abroad and has aimed towards following an open policy for the country. The country is also witnessing a financial stability as the foreign direct investment has grown over years. Apart from it the fiscal deficit has reduced and simplification of the legal process has made more and more international companies work in the country. In addition to it the corruption level over years has decreased and provides an opportunity where the business will be carried out without any difficulties. This will help Southern Peninsula Wines to ensure that they not have to pick illegal ways to get different license and documents to carry out business.
Legal & Regulatory Requirements Risk: India has framed laws with regard to the working mechanism for foreign companies. The laws allows the use of organic food for the production of wine but in case the product is inorganic then rules with regard to oxygen content, filtration, salt and fermentation needs to be carried out. Apart from it rules pertaining to labour is been prescribed and every company needs to follow it. The government has also prescribed the different license and permission which needs to be received so that smooth functioning of the business takes place. Apart from it India has looked towards following a policy where they have opened up the economy. The Indian economy has also looked at removing the trade barriers and simplifying the rules so that business can be carried out with ease.
Economic Risk: The economic condition of India is improving with higher growth rates and controlled inflation. The interest rate is also under control which provides an opportunity to ensure better business. Apart from it the country has a flexible exchange rate system which provides an opportunity to ensure that business can deal with different international transactions. In addition to it the disposable income is increasing on a continuous basis which will provide an opportunity to ensure that people consume wine thereby providing a bigger market to cater. This has thereby reduced the overall risk and provides an opportunity where Southern Peninsula Wines will be able to carry out the business effectively.
The marketing opportunities which Southern Peninsula Wines looks to get from the Indian market is as
Market Trends & Developments: Different developments and changes have been witnessed in the market which thereby makes the market more lucrative. One major change in the Indian market from other market is the people are young and people entering the age bracket to drink in increasing which will thereby provide a large base of customers to cater. It is seen that more than half of the people fall within the drinking age prescribed as 25 years providing a huge market. People below 24 years of age are around 50% which will provide an opportunity to tap them in the future. This thereby would ensure that Southern Peninsula Wines will be able to use the market opportunities to improve their business
Market Needs: The Indian market is growing as the population is young. A huge population has already created demand as people look to purchase different products. The Indian market in relation to wine is slowly growing as different vine plants are being set up in India (Monsivais & Drewnowski, 2007). The overall market is witnessing change as slowly India is adopting western culture and with changes in climatic conditions the market is witnessing increase in demand for wine.
Target Segmentation: Southern Peninsula Wines will look to attract the younger generation, the office goers, and women. It is seen that more than half of the people fall within the drinking age prescribed as 25 years providing a huge market. People below 24 years of age are around 50% which will provide an opportunity to tap them in the future (Binkley, 2006). Since, the young population is high so segmenting the market based on age will provide an opportunity before Southern Peninsula Wines. This will help them to attract most people who prefer to drink and create a wide market for their products.
Consumer Preference: The preference of people towards drinking is increasing in India. With the adaptation of western culture it is seen that more and more people are slowly moving towards drinking. The preference towards consuming wine is also increasing because it impacts less compared to other alcohol and is even seen by some as a better drink (Thompson & Strickland, 1999). The preference towards wine is further increasing as it is considered as a better symbol compared to other alcohol. This would increase in the future as more international brands are entering the country and would thereby increase the preference of people towards wine in the future.
Entry Mode: Southern Peninsula Wines while looking to carry out business in India would look towards different mode. Southern Peninsula Wines would look at either the franchise model or joint venture. The preference for Southern Peninsula Wines will be the franchise model as it will help to exercise better control over the international business. Selecting the franchise or joint venture model will provide an opportunity where Southern Peninsula Wines will be able to use the already created business network (Gamble & Thompson, 2011). This will save time and will help them to penetrate the market in a better way. Using the franchise and joint venture model will also help to reduce the inadequacies which the other method would present and would help to reach every nook and corner of the country.
Viability of the Marketing Opportunities
This section looks at finding out the viability of the marketing opportunities which Southern Peninsula Wines has in India and is as
Likely Fit and impact on business: Southern Peninsula Wines which is considering India as the next destination has chances of being successful as it fits the business goals. Since, Southern Peninsula Wines look at providing quality wines and the demand for quality wine is increasing in India it would thereby help to ensure that people accept the wine. Apart from it the business is capable of providing wine which Indian customer base prefers with regard to taste so the chances of being successful increases. In addition to it the business is looking towards using the already existing distribution network which will help to thereby increase the customer base and will have a positive impact on the business. The mechanism of working in India will help to improve the business and would provide an opportunity through which both the business and customer base would grow.
Cost, benefit, risk, competition and return on investment analysis: Southern Peninsula Wines while working in India will get the benefit of a huge population who are slowly taking towards drinking wine. This will give a huge market. In addition to it the already existing distribution network will help to control cost as a new network need not be established. The business will have to incur the cost of transportation but is likely to gain as the return on investment will be high. Since, the degree of competition is low so the business can look towards garnering adequate revenues in comparison to the cost incurred which will help to increase the overall returns (Bristow and Frankwick, 1994). This thereby reduces the overall risk for the business but Southern Peninsula Wines needs to ensure that the quality and taste which they provide matches the taste buds of Indian people. Since, the local wine industry is in its nascent phase and slowly growing so it provides opportunities for an international brand to look towards India as the business will be profitable after a certain period of time.
Southern Peninsula Wines can move ahead with their decision of working in India. The organization should look at adopting the franchise model as it will provide the already set distribution network. This will help Southern Peninsula Wines to reach different nook and corner of the country. Increasing trends in people towards wine and a huge population provides an opportunity where Southern Peninsula Wines can bank on. In addition to it the overall competition is low so it creates a new opportunity. Southern Peninsula Wines should be careful with regard to the taste and quality which Indians prefer and should look to provide similar products so that it matches the taste bud. It is thereby seen that Southern Peninsula Wines should look towards with carrying out the business in India as it will be a profitable venture.
This paper provides the marketing opportunities for Southern Peninsula Wines which is looking to carry out business in India. The paper analyzes the risk factors through a PESTEL analysis, followed by marketing opportunities, the manner through which the company will enter India, the viability of the chosen marketing mechanism and finally the recommendations. It is seen that India is a viable option and would provide an opportunity where Southern Peninsula Wines will be able to generate profits in the future and will be able to increase their business in India.
Binkley, J. 2006. The effect of demographic, economic, and nutrition factors on the frequency of food away from home. Journal of Consumer Affairs. 40, pp. 372-391.
Bristow, D. and Frankwick, G. 1994. Product manager influences tactics in marketing strategy development and implementation. Journal of Strategic Marketing, 2 (3), 132-147
Gamble, J. E., & Thompson, Jr., A. A. 2011. Essentials of Strategic Management. New York: McGraw-Hill Irvin.
Monsivais, P. & Drewnowski, A. 2007. The rising cost of low-energy density foods. Journal of the American Dietetic Association. 107, pp. 2071-2076
Thompson, Jr., A. A., & Strickland, A. 1999. Strategic Management (11 ed.). Mcgraw-Hill
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