Angad Australian Institute of Technology Pty Ltd

Bonatelli Wines
Pty Ltd (A case)

 Marketing Program
 Management Plan
 Marketing Performance

Submitted By:
 Assessment Task I

Bonatelli Wines Pty Ltd

Executive Summary

Company Mission

Bonatelli Wines Pty Ltd.’s Company Mission is to produce quality, boutique wines
at a reasonable price.

Strategic Goals and Aims – 

To establish and maintain a thriving family business that provides an enjoyable
lifestyle and comfortable standard of living.

Company Vision –
To build customer loyalty and securing repeat purchases.

Size and Capabilities of the Organization

In Australia, Bonatelli Wines Pty Ltd has no branded product for sale; initially the
company is selling in bulk to large wineries. The company now has successfully
launched a range of bottled red wines onto the US market. The winery has the
capacity to produce 30,000 bottles a day and currently sells approximately 500,000
cases per year. Bonatelli Wines Pty Ltd currently operates with 300 employees.

Products of the Organization being considered for entry into international market

Bonatelli Wines Pty Ltd produces three (3) varieties of red wine, namely the
Canernet Sauvignon, the Merlot and the Shiraz. In order for the company to export
these wines, Bonatelli Wines Pty Ltd will be bottled and fitted with a screw top lid
to protect wine from corking and maintaining quality. Wines will be boxed in
cardboard cases, each box holding twelve bottles of wines.

Bonatelli Wines Pty Ltd.’s wine will be exported in bulk to distributor in the region
and will then be sold to retailers. These retailers will then sell the wines to its
retailers.
International marketing Objectives

1. Quality Assurance:
The major objective for Bonatelli Wines Pty Ltd is to assure the high quality
product to its target customers. It already has a market in US which shows
that it serves a good quality product to its US customers, therefore it need to
achieve the same or rather more than that a higher level of quality as far as
its variety of wines are concerned.

2. Customer Loyalty
As Bonatelli Wines Pty Ltd has successfully launched a range of bottled red
wines onto the US market which shows that it has successfully established a
kind of customer loyalty within its existing customers. Now its objective is
to do the same justice with its new target market i.e., SE Asian customers.

3. Targeting South East Asian Markets

Bonatelli Wines Pty Ltd.’s foremost important objective is to target new
market that is South East Asian markets as South East Asia is becoming
potential market because of the following reasons:

a. A study by BBC news says that in 2014, Chinese consumed most amount
of the Red Wines overtaking Europe in 2013.
b. Luxury spending by the elite class on wines.
c. Presenting lavish gifts to each other which includes wines.
d. Increasing disposable income.
e. Growing wealth.
f. Increased tourism with the passage of time.
4. Increased Exports
After getting fruitful results from the US market, next objective of Bonatelli
Wines Pty Ltd is to gain SE Asia Markets. In this concern it should work on its
exports and how to increase its exports in the new markets.

5. Securing Repeat Purchases

To reach to a particular level is tough but to maintain that level is tougher
than reaching their. Another objective of Bonatelli Wines Pt Ltd is to make
sure that the regular customers go for repeat purchases in the upcoming
years as well only then the company will be sustained in the wine industry.
Measurement of the objectives
The following are the key performance indicators of Bonatelli Wines
Pty Ltd.
1. Unit sales:
The company can easily measure its performance by analyzing the sales
in relation to the objectives set. It has to compare its actual performance
with the standard performance so that deviations can be found out.

2. Return on Investment (ROI)

ROI is a performance measure used to evaluate the efficiency of an
investment or to compare the efficiency of a number of different
investments. ROI measures the amount of return on an investment
relative to the investment’s cost. To calculate ROI, the benefit (or return)
of an investment is divided by the cost of the investment, and the result is
expressed as a percentage or a ratio.
The return on investment formula:

After setting up new markets in SE Asia, the company has to calculate the return
on investment so that the performances can be compared.

3. Market share percentage

The percentage of an industry or market's total sales that is earned by a particular
company over a specified time period. Market share is calculated by taking the
company's sales over the period and dividing it by the total sales of the industry
over the same period. This metric is used to give a general idea of the size of a
company to its market and its competitors.
It is very important for Bonatelli Wines Pty Ltd to gain the market and then to
check out the market share percentage so that the performance can be measured
and objectives can be achieved.

4. Product quality Control

 A process through which a business seeks to ensure that product quality
is maintained or improved and manufacturing errors are reduced or
eliminated. Quality control requires the business to create an environment
in which both management and employees strive for perfection. This is
done by training personnel, creating benchmarks for product quality, and
testing products to check for statistically significant variations.
The objective of better quality wines can be measured with the help of
product quality control by Bonatelli Wines Pty Ltd.

5. Social Interactions
The Social Interaction KPI measures the effectiveness of the company’s
social media campaigns at fostering positive engagement. Key
interactions can play a pivotal role in a post or story going viral, so it is
very important to ensure that you are nourishing the right types of
interactions. As well, a strong social media measurement strategy will
map these interactions to other marketing goals, such as website
conversions.

International market Opportunities for Bonatelli Wine Pty

Ltd.
 Global integration of businesses will continue.
 Bonatelli Wines Pty Ltd is aware about the trend towards multinational
operations and greater consolidation within the industry. On the other hand,
Australian wine companies have in recent years acquired operations in
Europe and elsewhere around the world. So there is a big opportunity for
the company to integrate with the other countries to increase its sales.

 Labour is increasingly mobile.

Many wine makers and viticulturists train, advise and work for wineries and
vineyard operations outside of their home country. This cross fertilization
of ideas and experiences should encourage a greater understanding and
acceptance of the various approaches employed in grape growing and
winemaking.

 Wine businesses cannot afford to ignore proven recipes for

success

Even when the source of those ideas does not completely fit with traditional
approaches. This could include the applications of new technologies or
approaches to marketing and distributing wine products. As the times are
changing. Customer’s tastes and preferences are also changing. So new
technology and new recipes should be welcomed by Bonatelli Wine Pty
Ltd.

Marketing Approach and structure for Bonatelli Wine Pty

Ltd
Marketing Mix is the best tool to form a marketing approach or a structure for the
company.

1. PRODUCT
If Bonatelli Wines Pty Ltd haven’t got the product right then all its branding
effort will be in vain. However it should not just talk about the intensity of
flavor, complexity, balance, texture and length of flavor, it should talk about
the bottle, the label, the closure, and cases. Different customers groups will
prefer different levels of quality and premium cues.

2. PRICE
The simplest indicator of quality to a consumer – if not always the most
accurate! Given the cost base the product needs to be priced in the premium
category, the choice is just how premium. In an occasion where a customer
wants to impress others a middling priced bottle on the wine list may not cut
it.

3. PLACE
“The right people at the right place drinking the right product” and “On
Premise builds brands” are two key phrases we hear from professional
alcohol beverage industry brand managers. For premium brands it’s
absolutely key to their brand development.

If it’s listed in the best restaurants that’s a superb cue for most groups of

customers. If it’s discounted at the local supermarket on an aisle end then
it’s time to panic – not only is the company’s premium price point being
destroyed but this brand seen as another popular brand.
 On Premise (restaurants, cafes, and bars) are the venue for key occasions
and experiences for your target market. For example if your customers are at
a fine dining establishment with some friends they may be enjoying
exquisite food with some great wine.

4. PROMOTION

Direct sales will boost the average margins so will form a key part of the
company’s marketing plan no matter what the size. The challenge here is relevant
interesting information over the four seasons that will lead to lots of sales on the
release of Bonatelli Wines Pty Ltd wine.

Contingency plan for Bonatelli Wine Pty Ltd.

From labor slowdowns, port congestion, and power outages to wildfires,
hurricanes, and terrorist attacks, we've seen no dearth of disasters that can shatter a
company's supply chain and transportation networks. Here's how to plan for supply
chain continuity of Bonatelli Wine Pty Ltd.—no matter what the obstacle.

 MAKING PLANS

Keys to planning for supply chain continuity include:

 Thinking through all the potential disruptions that might strike your
company.
 Analyzing how each of these might affect operations.
 Developing backup processes and contingency plans that you can
immediately put into action when a disruption occurs.
 Reviewing and updating plans as circumstances require.

 FOUR ELEMENTS FOR CONTINUITY

1. Awareness. Understanding that supply chain interruptions can occur

is a concept one cannot take for granted. To build awareness, planners
must educate stakeholders within the organization, communicate
expectations to vendors, and investigate vendors to make sure they are
capable of meeting the company's needs.

2. Prevention. This step includes identifying and prioritizing possible

risks and devising strategies to reduce them—such as developing
alternative sources for goods and materials, and putting backup
transportation plans in place. It also means monitoring developments
that could increase or decrease the risk of various disruptions.

3. Remediation. Despite a company's best efforts to prevent them,

disruptions sometimes occur, and officials must do their best to
control the consequences. That's where remediation comes in. In this
 step, "time is absolutely critical". The company should establish a
team in advance to resolve problems when they arise.

4. Knowledge management. The last step is to analyze how a crisis was

handled, and what can be learned from the experience. "After a crisis,
companies need to share the good, the bad, and the ugly" and apply
that knowledge in the future.

Assessment Task II

Marketing Management Plan for the Marketing Approach

and operational structure.
To implement and to manage the marketing approach and giving it an operational
structure, Bonatelli wines Pty Ltd has to divide all its activities in the following
three titles.

A. Marketing Activities
The major marketing activities that this company needs to wok upon are:

1. Market Research and Segmentation

2. Targeting and Positioning
3. The Marketing Mix
4. Implementation
5. Control
6. Budgetary Concern

B. Distribution and Pricing

1. Choosing the middleman
2. Home country middleman
3. Foreign country middleman
4. Government affiliated middleman
5. Motivating channel members
6. Corporate goals and objectives
7. Customer characteristics
8. Intensity of inter-firm rivalry
9. Phase of the product life cycle

C. Roles and Responsibilities

1. Managing and leading the project team.

2. Recruiting project staff and consultants.
3. Managing coordination of the US and SE Asian market.
4. Developing and maintaining a detailed project plan.
 5. Managing project deliverables in line with the project plan.
6. Recording and managing project issues and escalating where necessary.
7. Resolving cross-functional issues at project level.
8. Managing project scope and change control and escalating issues where
necessary.
9. Monitoring project progress and performance.
10.Providing status reports to the Project Sponsor.
11.Managing project training within the defined budget.
12.Liaison with, and updates on progress to, Project Steering Board/Senior
Management.
13.Managing project evaluation and dissemination activities.

Assessment Task III

Marketing Performance Review

The review strategy shall depend on reassessment of power of SWOT Analysis,
positon strategy, competitive analysis, target market analysis and marketing mix
strategy. It will include the things need to be reviewed, how often to be reviewed
and who would carry out the research and review.

Performance Review

It is important for the success of Bonatelli Wines Pty Ltd to keep conducting
regular review of the marketing activities performed by the marketing team. In
Bonatelli Wines Pty Ltd, few major aspects are identified of the marketing
strategy that need to be reviewed after the second quarter of operation in order to
check performance against the objectives set by the company including the
following:

I. SWOT Analysis of Bonatelli Wines Pt Ltd.

1. STRENGHTS

 Brand Profile
 Appealing packaging
 Longest established winery in region
 Well trained and friendly staff
 Seen as a desirable company
 Hands on winemaker who participates in marketing initiatives
 The US market

2. WEAKNESSES

 Reliance on casual staff

 Seasonality (variable buyer numbers)
 Large capital requirement
 Lack of mobile staff
 Limited space to cope with growth
 Lack of group management facility

3. OPPORTUNITIES

 Free tasting of wines in new areas

 State Government funding scheme
 Co-operative regional wine and food marketing group
 Co-op marketing opportunities with other tourism product
 Quality of regional accommodation and produce
 International Tourism Treaties and Agreements

4. THREATS

 Bonatelli Wine Pty Ltd. lacks a tourism focus

 Increasing profile of other brands
 Transportation requirement
 Changes in planning / licensing/government policies
 Existing big brands

II. Next segment of Marketing Performance is divided in three factors:

1. ANALYSIS

After an in depth study conducted by the marketing team of Bonatelli Wine

Pty Ltd, some positive and negative both the changes have found out.

 Initially the company have followed the policy of Market

Penetration in the US market by selling in bulk and not concentrating
on the brand name. Its major aim at that time was to enter into the US
market by selling its wines at a bit lower price and not aiming at just
profit maximization at that time.
 It can be clearly seen that the objective of selling 25,000 cases in 2006
was easily achieved as the sales were beyond the expectations i.e.,
200,000 cases in the same year.
 With the help of market Penetration, Bonatelli Wines Pty Ltd has
secured 15% of the market share. (2008)
 The company now has established a brand recognition in the US
market. (2008)
 It has also achieved minimum sales of 1 million cases in 2008.
 Red wine accounts for 60% of all the sales in the $8-$15 price
segment.
 Customers have started recognizing the Bonatelli brand as the study
shows that one in every four wine stores customers recognize this
brand.
 Apart from all the above accomplishments, the US wine market has
changed somewhat because of an economic downturn. It has led to the
reduction of the average price per bottle whereas sales of domestic
wine have has increased.
2. PERFORMANCE
 First of all Market Penetration was the cause for positive effects in the
US market as discussed above. This led to the recognition of the brand
in the wine industry along with the increased sales and customer
loyalty.
 The reduction of the average price per bottle of Bonatelli Wines Pty
Ltd. was caused due to the reason that there was an economic
downturn which led to some changes in the US wine market.
 The adverse effects in the Bonatelli’s business can be rectified by
social interactions with retailers, wholesalers and customers to give a
positive impact on them.

3. REVIEW

At the end of this report, it can be suggested that Bonatelli Wines Pty
Ltd can increase and sustain its sales by:
 Building confidence in the customers.
 Attractive advertisements.
 Good sales promotion policies.
 Using the strength of US market in the SE Asia market.
 Offering good combo packs to the retailers.
 Reducing cost per unit.
 Free tasting sessions for customers on some special days.

REFERNCES
 http://www.business.gov.au
 https://globalmarketingtoday
 http://www.ftpress.com
 http://www.tourismcenter.msu.edu