Hardys is a very successful and well established Australian wine brand with a long history and a wide range of different products including red and white grape wine as well as sparkling and sweet wines. Like many successful wine producers, Hardys plans to enter the Chinese wine market which has shown outstanding growth rates over the last years due to the Chinese perception of 8especially red) wine as elegant, exclusive, healthy and a symbol of high class, education, manners and upper life style.
The Chinese market with its gigantic consumer potential is forecasted to quickly develop into one of the world’s largest markets for imported wines from all around the world. Currently French imported wine is the largest competition on this market, followed by already successfully introduced other Australian brands (making Australia the second largest country of origin of imported wine in China). In addition there is a growing and constantly improving competition from domestic wines.
Research and analysis based positioning elements for Hardys (Shiraz) in China will be the ‘sweet’ taste, the ‘Australian’ origin and a focus on information to educate the consumers to ‘smart’ buyers of Hardys products. Selected customer segments provide a promising market potential in Beijing, Shanghai and Guangzhou which builds the geographically most relevant market for imported wine in China.
Through a themed yearly focus in accordance with Hardys positioning strategy, consumers’ interest will be raised, their knowledge will be improved and with a variety of communication activities they will be turned into potential repeat buyers. Communication channels therefore will be a combination of classical print media (selected magazines) as well as a strong online presence as more and more wine-related product research is done online. In accordance with the selected target segment’s life style and consumption habits, smart phone optimized content and access to information will play another crucial role in Hardys’ brand communication.
Pricing follows Chinese consumers’ habits, expectations and perceptions as well as researched recent market trends and a strategic aspect of positioning Hardys as a ‘smart’ choice with higher value for money compared to already established but often overpriced French brands.
Table of Contents
1. Executive Summary & Contents
2. Situation Analysis
2.1 Global Wine Market Overview
2.2 China Market Overview
2.3 Consumer & Consumption Trends Overview
2.4 Australian Wine in China
2.5 Outlook – Where is the Market going?
2.6 Market Access Key Factors for Imported Wine in China
2.7 Target Market Overview
2.8 B2C & B2B Markets
2.9 SWOT Analysis
2.10 Main Competitors
2.11 Company Information
3. Marketing Strategy
3.1 Marketing Objectives
3.2 Financial Objectives
3.3 Target Market Defined
3.4 Positioning Strategy
3.5 Marketing Mix
4. Financials
4.1 Break Even Analysis
4.2 Sales Forecast
4.3 Expense Forecast
5. Controls
5.1 Implementation
5.2 Marketing Organization
5.3 Contingencies & Risks
Project Goals and Thematic Focus
The primary objective of this marketing plan is the successful introduction and establishment of Hardys Shiraz within the competitive Chinese wine market. The research focuses on identifying high-potential consumer segments in Tier 1 cities, developing a strategic positioning that emphasizes value and product information, and creating a sustainable distribution and communication strategy to ensure long-term market penetration.
- Strategic market entry and brand positioning in China.
- Segmentation of the Chinese middle and upper class based on lifestyle factors.
- Development of a price-quality proposition to compete with established French brands.
- Leveraging of digital channels, including mobile-optimized content and QR codes, for customer education.
- Optimization of distribution channels focusing on on-trade venues in major urban centers.
Excerpt from the Book
Positioning Strategy
Combining major strengths and opportunities (as mentioned in the SWOT analysis on pages 17 ff) for Hardys wine into strategic positioning options we would recommend to focus on the 3 elements taste, origin & information for Hardys’ core positioning strategy.
‘Sweet’ Taste: Hardy should try to benefit from the reputation of Australian wine for being sweet and fruity in its taste and having less tannin (which often gives wooden-barrel stored red wines a bitter aftertaste). Sweetness and fruitiness as well as the smoothness due to the lack of tannin are attributes of taste which appeal to the Chinese taste very much. They should consequently be part of Hardys’ positioning.
‘Australian’ Origin: Origin is still one of the top factors for Chinese to make their choice in front of the wine shelf. With Australian wine already ranking second among origins of imported wines, and with the growing interest of Chinese customers in the country (also as a travel destination), Hardys should focus on its origin and try to associate Australia with the brand. This way Hardys can also be a beneficiary of future country of origin campaigns which the Australian Wine industry is already considering for China.
‘Smart’ Information & Consumers: Australia is leading in Wine science, wine related knowledge and research. Why not take this good reputation of the industry to a consumer level? Chinese consumers still have a lot to learn about wine and wine related topics. Hardys could gain an advantage here by working out a smart way to provide customers with that little bit more of information in comparison to competitors. Information helps the customers understand and what customers understand better is also more likely to be chosen from the shelf. Especially the growing internet usage among Chinese customers could provide excellent opportunities for this positioning element.
Summary of Chapters
Executive Summary & Contents: Provides an overview of the brand's entry strategy into the Chinese market, highlighting positioning, pricing, and distribution objectives.
Situation Analysis: Analyzes global and Chinese market trends, identifying key drivers like urbanization, health perceptions, and the specific consumption patterns of the Chinese middle class.
Marketing Strategy: Defines the qualitative and quantitative objectives for Hardys and details the positioning strategy centered on taste, origin, and consumer education.
Financials: Details the break-even analysis, sales volume targets, and marketing expense allocation over the three-year planning period.
Controls: Outlines performance monitoring using the AIDA framework to ensure implementation aligns with strategic targets.
Keywords
Hardys, Chinese Wine Market, Shiraz, Market Entry, Marketing Strategy, Positioning, Consumer Education, Distribution Channels, On-trade, Off-trade, Brand Awareness, QR Codes, Pricing Strategy, Sales Forecast, China.
Frequently Asked Questions
What is the core purpose of this marketing plan?
The plan aims to introduce and establish the Australian wine brand Hardys in the Chinese market by targeting specific lifestyle segments in key Tier 1 cities.
What are the primary target market segments?
The target segments include the Materialistic Modern Mainstream, Hedo-Materialists, Ambitious Achievers, and Golden Hedonists, all of which represent the growing Chinese middle and upper class.
What is the primary positioning strategy for Hardys in China?
The positioning is based on three pillars: the 'sweet' taste of Australian Shiraz, the appeal of its 'Australian' origin, and the 'smart' approach of educating consumers to build trust and brand loyalty.
Which scientific methodology is used for segmentation?
The plan utilizes the Sinus Sociovision model, which segments the population based on social status, lifestyle, and core values rather than simple income demographics.
What channels are prioritized for distribution?
The strategy focuses heavily on the on-trade sector, specifically premium hotels, restaurants, and bars in Shanghai, Beijing, and Guangzhou, complemented by supermarket retail and e-commerce.
What are the critical success factors identified?
Key factors include overcoming the consumer's lack of wine knowledge through education, managing product perception, and navigating strong competition from established French brands.
Why are QR codes central to the marketing approach?
QR codes serve as a bridge between offline advertisements and online resources, providing a convenient way to educate consumers, share information, and facilitate repeat purchases.
How does the plan address the seasonality of the Chinese market?
The plan focuses communication and marketing efforts on the two major peak periods: the Spring Festival and the Mid-Autumn Festival, which account for 60% of annual wine sales.
What is the role of the 'Talking Magazine' concept?
It is an interactive marketing tool using QR codes in print media to play video clips, making the brand experience more engaging and educational for the reader.
What is the significance of the price point 208 RMB?
This price was chosen based on cultural pricing psychology (the number 8 is lucky), psychological rounding, and the strategic positioning of Hardys as an affordable yet premium 'smart' choice.
- Quote paper
- Stefan Reindl et al. (Author), 2011, China Market Entry of Australian Wine Brand "Hardys Shiraz". A Marketing Plan, Munich, GRIN Verlag, https://www.grin.com/document/304724
