BSBMKG605 Evaluate international marketing opportunities

Learner Instructions 1
(Market review)

Submission details

Students Name

Student ID

Group

Assessor’s Name

Assessment Date/s

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.
TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

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 BSBMKG605 Evaluate international marketing opportunities

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.

TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

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 BSBMKG605 Evaluate international marketing opportunities

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.

TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

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 BSBMKG605 Evaluate international marketing opportunities

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.
TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

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 BSBMKG605 Evaluate international marketing opportunities

 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
TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

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 BSBMKG605 Evaluate international marketing opportunities

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.

TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

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 BSBMKG605 Evaluate international marketing opportunities

 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.

Learner Instructions 2
(Viability report)

TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

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 BSBMKG605 Evaluate international marketing opportunities

Submission details

Students Name Charmaine Cresencio

Student ID

Group

Assessor’s Name

Assessment Date/s

TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

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 BSBMKG605 Evaluate international marketing opportunities

2 Marketing Opportunities
Joint ventures
This key growth strategy involves contract manufacturing. This can be broken
down further into two more options. Joint venturing is very safe way to enter the
market , especially for new and inexperienced businesses entering a high
competitive market. These two options include supplying the raw material
personal. This gives a lot of control in the partnership. The next options is more
of an intelligence protection method. This method involves you giving the
formula and raw material to someone to manufacture it for you. The product is
still yours , however you will lose some profit and this is risky because
competitors will try to stop any new competition. Since both wine companies are
working together , information should be shared to increase the quality of the
products.

A . Financial viability – Joint venture has a very good financial viability as the
joint venture means that the company must only pay half or a fraction of the full
cost to invest into a new international market.
Costs : problem and costs could include
 The objectives of thew venture are not totally clear and communicated to
everyone involved.
 The partners have different objectives for the joint venture
 There is an imbalance in levels of expertise , investment or assets brought
into the venture by the different partners
 Different culture and management styles result in poor integration and
co- operation
 The partners don’t provide sufficient leadership and support in the early
stages

Benefits : A successful joint venture can offer :

 Access to new markets and distribution networks
 Increased capacity
 Sharing of risks and costs with a partner

TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

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 BSBMKG605 Evaluate international marketing opportunities

 Access to greater resources , including specialized staff , technology and

finance

B. Fit – For this business , it is not so fitting for Bonatelli as the company has
already got a lot of the machinery and tools that it needs in Australia. The only
thing that needs to be done in distribute the product to other markets and
therefore , sharing the profit for such a small task is not worth it.

C. Impact – The impact that this opportunity will have on the company is a lot.
With a new international market , the company can increase profits by a lot. The
company can build be reputation and brand name and could become a very
popular brand of wine.
D. Competitors
 Moutai
 Wu liang ye
 Dukang wine
 Fen wine
 Xi feng liquor
 Jian Nan Chun
 Luzhou Laojiao
 Dong Wine
These are all of the best wines In china . These are the Chinese wines that sell
best in china , these will be the biggest competitors
E. Recommendations – I do not think this would be the most appropriate
opportunity for Bonatelli because exporting would be much more profitable.

Exporting
There are 2 ways of export Direct and Indirect
Direct exporting
This method will not be as effective for Bonatelli wines because Bonatelli Wines
is new to the Chinese market and does not have many connections in the Chinese
market. Direct exporting will required a lot of experience and confidence to be
successful and effective.

TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

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 BSBMKG605 Evaluate international marketing opportunities

This way has the greatest control of exports , profit and production of exports in
the Asian Wine markets , However this approach can also be very expensive and
cost a lot of money.

Indirect exporting
This is good for new entrants of a market such as Bonatelli wines because it will
give me company some connections in the Chinese market and let the business
focus on the important part of producing the products. This way will reduce your
profit but will also take a lot of work off our company . It is fast and simple for
your company.
A. . Financial viability – Although the company must pay for all costs
involved in this process , the company does not required a lot of
investment , as the company only needs to export the products to the new
market. The costs will be quite low and the profit will be maximized.

Costs : There are many costs to exporting including :

 Hire staff to launch the export expansion
 Modify your product or packaging
 Develop new promotional material
 Incur added administrative costs
 Dedicate personnel for travelling
 Wait longer for payments
 Apply for additional financing
 Obtain special export licenses

Benefits : The four main benefits of exporting your goods are :

 Increased Profitability
 Spreading risks
 Economies of scale
 Enhanced innovation

TAD168 BSBMKG605
Version: 2.2
Implemented: December 2020
To be reviewed: December 2021
Responsibility: Head trainer
© The Wales Institute Pty Ltd

Page 11 of 11