This work will analyse the intension of Western Wines to market Kumala wines in Japan. The report is fundamentally structured into five parts: First there will be given a short introduction about Kumala Wines and their product range. The second part give the most important facts against an entry in Thailand and South Korea and contains a detailed marketing environment analysis of Japan, as the most favourable country to launch Kumala`s products. After that it will continue with analysing possible opportunities and threats for Kumala`s range in the chosen market. The next section will focus on an initial market entry strategy for Kumala developed on the data of the analysis. Based on the points above the fifth part will contain a marketing mix proposal. In the end their will be a short conclusion. Throughout the whole paper relevant marketing concepts are used and applied. The work is based on secondary research to a large extent.
Table of Contents
1. Kumala Wines
2. Marketing Environment (SLEPT-Analysis)
3. Market Opportunity Analysis
3.1 Competitive Environment
3.2 Consumer Analysis
4. Market Entry Strategy
5. Marketing Mix
5.1 Product
5.2 Price
5.3 Place
5.4 Promotion
6. Conclusion
Objectives & Research Themes
This report investigates the strategic potential and implementation plan for introducing Western Wines' "Kumala" brand into the Japanese market. The analysis evaluates market viability compared to Thailand and South Korea, assesses environmental factors, and proposes a tailored marketing mix to establish a foothold in the competitive Japanese wine sector.
- Strategic market analysis (SLEPT framework) of Japan.
- Evaluation of market entry barriers and distribution channels.
- Consumer behavior analysis regarding wine preferences.
- Marketing mix development (Product, Price, Place, Promotion).
- Competitive benchmarking against domestic and international brands.
Excerpt from the Book
2. Marketing Environment Analysis
While evaluating how to contribute to the sector’s competitiveness, it is crucial to look beyond the challenges and key questions faced by individual firms and instead considers issues that affect all firms. One mechanism for making such an evaluation is through a “SLEPT” analysis. A SLEPT analysis is a country-specific analysis of quantitative and qualitative external macro-environment that affects all firms. “S.L.E.P.T.” is an acronym for the Social, Legal, Economic, Political and Technological factors. (Doole, I. & Lowe, R., 2001) These external factors are usually beyond the firm's control and often times present themselves as threats.
Although there are some good points about the markets of South Korea and Thailand it seems to be Japan as the most favourable country for the companies aim. The decision for Japan and against Thailand and South Korea is based on some important points:
The consumption of wine per capita in Thailand is less than a litre (0.07 l in 2001) per year (compared to 60 litres in Europe or 3 litres per head in Japan) (Institute of Alcohol Studies, 2004)
Both duty and tax are 60 % which means that Thailand`s tax on wine accounts for about 81 % of the retail cost of a bottle. (e. g. an imported $ 10 bottle of wine would end up costing $ 52) (Bangkok Post, 2001)
Alcohol is a major public health problem in Thailand. Therefore the government brought in new legislation to cut alcohol consumption and reduce harm caused by alcohol (warning labelling, restriction for alcohol advertisement). (Institute of Alcohol Studies, 2004)
French wine is clearly dominating the South Korean market. (55.4 % market share) The word “French” is synonymous with “wine” in the Korean consumers minds. (United States Department of Agriculture, 2004)
Summary of Chapters
1. Kumala Wines: Provides an overview of the brand's history, its market position in the UK, and its strategic goals as a South African producer.
2. Marketing Environment (SLEPT-Analysis): Conducts a macro-environmental scan using the SLEPT framework to justify selecting Japan over Thailand and South Korea for market entry.
3. Market Opportunity Analysis: Assesses the competitive landscape and consumer behavior within the Japanese market to identify growth potential.
4. Market Entry Strategy: Examines logistical and distribution challenges, specifically focusing on the complex "Keiretsu" system and the necessity of direct exports.
5. Marketing Mix: Details specific tactics for product design, pricing strategy, distribution placement, and promotional activities tailored to the Japanese audience.
6. Conclusion: Synthesizes the findings, confirming Japan's viability as a primary market and suggesting future expansion into other Asian territories.
Keywords
Kumala Wines, Japan, Market Entry Strategy, SLEPT Analysis, Marketing Mix, Wine Distribution, South African Wine, Consumer Behavior, Competitive Environment, Export Strategy, Keiretsu, Brand Identity, SWOT Analysis, International Marketing, Beverage Industry.
Frequently Asked Questions
What is the core focus of this research report?
The report focuses on evaluating the strategic feasibility of launching the South African wine brand "Kumala" in the Japanese market.
What are the primary themes addressed?
Key themes include macro-environmental market analysis, competitive positioning, consumer preference segmentation, and the design of an appropriate marketing mix.
What is the main objective of the analysis?
The objective is to determine if Japan is a suitable market for expansion and to outline an effective entry strategy for the brand.
Which methodology is used to evaluate the environment?
The study utilizes a SLEPT analysis (Social, Legal, Economic, Political, Technological) to assess external factors influencing the market.
What does the main body of the text cover?
It covers the current product offerings, the comparative analysis of Japan against Thailand and South Korea, distribution hurdles in Japan, and specific recommendations for the 4Ps of marketing.
What are the characterizing keywords of this work?
Major keywords include Kumala Wines, Market Entry Strategy, SLEPT Analysis, Marketing Mix, and Wine Distribution.
Why was Japan chosen over Thailand and South Korea?
Japan is preferred due to higher per capita consumption, more stable market conditions, and fewer restrictive legal or taxation barriers compared to the high tariffs and health legislations in Thailand or the French-dominated market in South Korea.
How does the "Keiretsu" system impact the entry strategy?
The "Keiretsu" system acts as a significant distribution barrier, requiring the brand to potentially negotiate with large, entrenched Japanese distributors who may have conflicts of interest with their own wine products.
- Citar trabajo
- Alexander Dürr (Autor), 2004, The intention of Western Wines to market Kumala wines in Japan., Múnich, GRIN Verlag, https://www.grin.com/document/55948
