Overview of the Australian Wine Industry
The term winery is referred to a property that produce wine or a business that is involved in the production of wine. Wine companies generally own several wineries. According to researches, the Middle East has been found to be the place where wine making was invented. In 2011 a team of archaeologists discovered a 6000 year old wine press in a cave in the Areni region of Armenia and identified the site as a small winery. However, with the enhancement of time, wineries have spread at different parts of the world. Australia is considered to be the home of the oldest vines across the world that date back to the 1850 (Chong, 2014). Today, the Australian wine industry produces wine from more than 150 varieties of grape. Australian wide industry of today demonstrates the diversity of the Australian population and the unique regional characteristics of the origin of the winemaker. As per the data obtained, a commendable amount of the revenue of Australian government is generated by the mentioned industry. When it comes to wine tourism, it can be defined as the number of tourists that visit an Australian region where wineries are located. Considering the fact that the Australian Wine is highly popular in the international market, the demand for the same amongst the tourist are high (Bianchi, C., Drennan & Proud, 2014). Thus it can be clearly understood that the mentioned industry is highly saturated. The Golden Grape winery wants to establish business in the Australian Wine industry. The preferred location of the mentioned company is Swan Valley. In this report, both macro as well as micro environmental analysis of the Golden Grape winery will be conducted in order to analyze and evaluate the external market of the company. Along with that, recommendations for target market, food options and design of the hotel will also be provided in the report.
Need More References
The wine industry that has been existing in Australia might be termed to be the fourth largest exporter of wine in the world. The wine that is exported from Australia approximately amounts to almost 750 million liters while the amount that is consumed within the political territories of Australia amount to almost 40% of the total amount of wine that is produced within the country (Abs.gov.au., 2018). The Australian wine industry is known to contribute a huge amount towards the growth of the Australian economy on the various activities that are linked to the industry like the activities that pertain to the production of the wine, the employment of the various residents of the area, the huge division of the export industry that is related to the export of the wine manufactured in the country as well as the tourism industry that is dependent on the wine industry (Lereboullet, Beltrando & Bardsley, 2013).
Wine Tourism in Australia
The wine tourism within the country might be referred to the number of visits that are conducted within the areas where the wineries are located. This helps the concerned visitors to experience the uniqueness of the Australian lifestyle that is related to the stages which are included in the production of the wine in Australia (Pratt & Sparks, 2014). This might also include the various factors that are related to the entertainment of the tourists inclusive of the food, the wine, the features of the landscape and the various other cultural activities that are undertaken by the people who have been residing within the territorial boundaries of Australia (Fleming et al., 2014).
Give An Actual Figure Of How Many Days Visitors Stay In This Winery – More References
The Swan Valley in Australia is located at the upper reaches of the Swan River that is existent between Bells Rapids and Guildford in the western Australia. The area is well known for the wineries that are present within the area. The concerned area attracted a huge footfall in the area due to the wine tourism that is present in the area. These visitors are generally observed to be both of the international as well as Australian origin (Thomas, Quintal & Phau, 2018). The major purpose of the visitors is to explore the wine trails within the concerned region and the general length of the stay of the visitors have been known to visit the area during the months of September and November. Local as well as national visitors generally spend 10-15 days in the wineries. When it comes to international lvisitos they generally prefer to stay at Swan Valley for approximately half to one month (Varsei, M., & Polyakovskiy, 2017). The other regional attractions present within the concerned area are the activities that pertain to the whale watching, racing, camping and the other such adventurous activities. The area is known for the various festivals and the events related to the wine tasting and the knowledge in the various matters that have been related to the production and the brewing of the wine (Quintal, Thomas & Phau, 2015). The wine tourism within the area has also opened the doors to the cellars and the other wine galleries that are present within the Swan Valley, Western Australia.
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Details |
Lamont’s Winery and Food |
Houghton Western Australia |
Sandalford |
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Location and proximity |
85 Bisdee Rd, Millendon WA 6056 |
Middle Swan, Western Australia, Australia |
3210 W Swan Rd, Caversham WA 6055 |
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Key products and services |
There are many kind of wine which Include red wine, white wine and fortified. There is also have a chain of restaurant serving food and wines. It located in Margaret River, Smiths Beach and Swan Valley (Mozell & Thach, 2014). |
There are many kind of wine including red wine and white wine, such as Chardonnay, Grenache, Cabernet blend, Merlot, Red blend, etc. There is a coffee shop, it called Houghton Winery Café, with many delicious foods, desserts and serving Houghton Wines. They hold functions and weddings as well. |
There are including red wine, white wine, sparkling, fortified and dessert wine. They hold functions and weddings as well. |
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Key features and benefits |
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Pricing policy |
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Target market/s |
Depending almost on age segmentation and income segmentation. With the price is not really expensive, the target market are almost the “ Price Driven” ( kind of people do not want to spend money a lot) and the “ Engaged Newcomers” ( kind of young people, socialized people and do not know much about wine) (Robinson & Harding, 2015) |
There are many diversified sort of wines. Consumers will choose wine depending on quality and variety of wines. Besides, they choose wine depending on wine region, label, brand and life styles. There are the “Image Seekers” and the “ Enthusiast” ( who have basic wine knowledge) |
With the good price, there are suitable for many type of people, from young to older people, both female and male. With the expensive wines, it will be sale to high-income consumers. With the normal wines, it will be sale to young-aged adults drinking at the party or people who want to drink wine almost every day. |
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Marketing initiatives |
They have many effective events for customers (Fleming, Park & Marshall, 2015). For example, they hold some fantastic celebrations to show their appreciation to customers, in which customers can enjoy discounts and a delicious menu. |
They market themselves as Australia’s third oldest winery. They also hold occasional events at their winery to attract customers such as “Father’s day at houghton” “back vintage degustation with herb Faust” “houghton after dark” |
They attempt to appeal to the Chinese as one of their target markets. (Their website is available in both English and Chinese language. some events targeted at the Chinese) |
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Website effectiveness |
Their website is very visually attractive with many impressive and stunning photos; and is easy to navigate. |
Outdated website, they are not keeping with the times. |
Their website is visually stunning and attractive with many beautiful photos that extend throughout the entire display screen. The layout is easy to navigate and well organized, it is easy to find what you are looking for. |
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Weaknesses |
Links on their homepage that redirect to social media sites such as Facebook,?Instagram and Twitter do not work properly. |
Outdated website, they are not keeping with the times. This shows that they are not keen on adapting if the situation changes. |
They don’t have any identifiable weakness to mention. They seem to be the ideal. |
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Key point of difference |
They engage in the wedding field as their main target market. |
Their wines are awarded 4 gold medals in the 2017 KPMG Sydney Royal Wine Show. |
Their winery won the awards in the Best Modern Australian and Best Tourism Restaurant categories. It also won gold at the WA Tourism Awards. |
- Extended Trading Permits – Producers – Cellar Door Operations
- Liquor Control Act 1988
- The cellar doors within the wineries in the swan valley region must be issued an extended trading permit that allows them to operate individually or with other producers away from their licenced premises. To allow the licensing of the venue, the premises must be appropriate for the selling of alcohol and the applicant must obtain approval by local government authority.
- The Swan Valley wineries must also follow the correct management agreements. This states that there must be appropriate management put in place for the operations of the premises which means they must be approved managers.
- The cellar doors must include a sign, either at the entry or exit door providing the:
– Class of Licence: Producer’s Licence
– Permit Type: Cellar Door Extended Trading Permit
(Department of Local Government, Sport and Cultural Industries, 2015)
- The Gross Regional Product for the swan valley region for year ending 30 June 2012 was $7.956 billion. This indicates an increase of 116.3 percent of growth over 10 years.
- About 95 percent of the businesses in the Swan Valley region were small businesses that were operated by the owners which meant there was 60.23 percent non-employing businesses and 34.1 percent employing minimum staff.
- The industries that produce the highest turnover is manufacturing, construction, wholesale and retail trade groups. About 42 percent of businesses had an annual turnover of less than $100,000 whilst 50 percent ranged between $100,000 and $2 million. Only 8.6 percent turnover more than $2 million.
The Golden Grape Winery
(OpenCities, 2018)
- The age groups of people who visited Swan Valley consisted of
– 18 – 34 years = 31%
– 35 – 54 years = 38%
– 55 + years. = 31%
- Word of mouth was the most common influence on visitors to make an unplanned stop to Swan Valley. As over 50 percent of visitors contributed in an unplanned stop to Swan Valley.
- Most people travelled to Swan Valley with their spouse or partner at 44 percent. Then for 30 percent visitors travelled with friends. This indicates that Swan Valley attracts more mature respondents as families are not as inclined to visit.
(Bylsma, n.d.)
- Wine industry in Western Australia has started using new satellite imagery than will help in assisting the producers to plan production. This satellite imagery will help growers to meet the market demand and provide a competitive market by not producing a surplus or undersupply of wines.
(Gartry, 2016)
The number of visitors is largest at noon on weekends, consisting of families and couples. On weekdays, the number of visitors is less than weekends but occasionally there are groups of students from schools that come to learn about the winery. The opening hours are from 9am to 8pm daily, and the peak time for the number of visitors is noon.
The winery has various ranks of restaurants, from cafes where you can have a light lunch to luxury dinners where you can enjoy a multi-course dinner accompanied by wine. There are also has some private rooms that can be hired for casual conferences or private group parties. There is also a cellar door on the premises where customers can taste their various wines. In addition, there is a souvenir shop at the entrance where customers can buy something memorable.
There are two kinds of winery tours, one is “Enjoyable pack” and the other is “Satisfied pack”. Both of them are for a maximum of 20 people. In “Enjoyable pack”, customers can experience wine tasting with chocolate (Services, 2018), listen to the explanation of the winery and have a light lunch. In “Satisfied pack” they can experience the same things as “Enjoyable pack” and also visit the wine factory where they can watch how wines are made.
There is the first-class view of swan valley which allows visitors to relax and relief their stress. There are various events lined up for the winery, such as holding live music concerts, the Australian food festival, and seasonal events (Services, 2018). There are also a fairytale-like church and spacious wine field for weddings. Visitors can also experience making their own wine and designing their own labels. Lastly, there are accommodations available for visitors, should they choose to stay a couple of days.
- There are a chain of restaurant in each area where they can serve for breakfast, lunch and dinner as well. “Restaurant-a place where meals can be purchased and eaten” (Webster’s, 1999). “Restaurant-open until late night well furnished dining facility usually with menus that include expensive dishes and beverages often with music” (Large encyclopedic dictionary, 1972).
- The restaurant opens 7 days a week and it serves for customers from 8AM to late night, closed time depends on weekdays or weekends. ( for example, the restaurant open from 8AM to 9PM from Sunday to Thursday, and they will probably close late at about 11PM on Friday and Saturday night)
- With a wide space, the restaurant contains more than one hundred people including inside and outside.
- Guests can choose garden view or river view if they want to take a seat outside. Besides, guests can also choose the warm and luxury view inside the restaurant.
- Moreover, there is a place where can hold functions or conferences, such as wedding party, birthday party, etc. With many options, guests can choose which hall is suitable for the occasions.
- The menu is including breakfast menu, brunch menu, lunch menu (with wine tasting and desserts), dinner menu (including Fine dining menu and a la Carte Menu) and kid menu as well. Moreover, there is also a drink menu including coffee, soft drinks, tap beer, cocktails, champagne and wine.
Proposed Target Market – be specific about the age & how will you attract the 50’s market?
The proposed target market for The Golden Grapes Winery should be on the right and legal age which the organisation would like to be the age of 20 and above. The reason to choosing the specific age from 20 to 50 years is because this is the age where people are likely to be involved with wines and the people on their 20’s are likely to be the future customers or loyal customer of a winery. Moreover, families with children are welcome as well and can come to the winery whenever they want as there will be places all around the winery where families can do picnic or even use the tables from outside so children can get to play and enjoy the place and the atmosphere (Galbreath, Charles & Oczkowski, 2016). A playground will also be provided in the winery for the children to use while the rest of their family are enjoying meals and wines. Children are welcome in the winery because they are also likely to be the future guests as they can witness that the rest of their family are enjoying wines while talking about it.
Macro Environmental Analysis of the Australian Wine Industry
Furthermore, people who adore wines and wine tasting will definitely be welcome in this winery. A brochure of packages of winery tours and wine tasting will be available for them to have a look at and decide which one they would like to do. People who are in the 50’s and above are also the target market because they are more likely the ones that really enjoy the taste of wines because people at that age usually look for elegancy, classy and relaxing atmosphere which they can get to experience in The Golden Grapes Winery (Chong, 2014). In order to attract 50 years old population, exclusive offers will be offered to them. Morover, the price of the wines will be kept lower than the competitor’s without compromising with the strategy in order to gain competitive advantage. Proposed Cellar Door – change the references from each photo into APA style
A cellar door is not just a bottle shop. Based on the experience, cellar door is a place where people or guests can get to enjoy the wine tasting and talk about each wines that the guests are tasting. There will also be a staff/s that will serve and pour the wines that the guests paid to have some tasting for each wine. Staffs that are assigned in the cellar door will also clean any mess on the table such as spills and lastly; the staffs will have to explain each wine to the guests about what does it taste like as well as what are the foods that can be match with a particular wine and if it is a mild or strong wine. Moreover, there are some times that the winemaker themselves serve the guests to introduce the wines.
- The image that The Golden Grapes Winery is trying to portray at cellar door are sophisticated, classy and luxurious. This is because The Golden Grapes Winery wants to serve its guests with such high quality of service so they will keep coming back and to ensure that the guests will feel special before and even after they will the winery. These images that The Golden Grapes is trying to portray will add legitimacy to the wines as well as the cellar door itself and by doing this; the winery is inviting or attracting people because first impression matters. Having good ambiance will make the people believe that the quality of service is good as well (See Figure 1).
Figure 1: (Huffingtonpost, 2017)
- As for the architecture and design of cellar door at The Golden grapes Winery; it will display warm, relaxing and lastly enjoyable feelings. Therefore, the cellar door of The Golden Grapes winery will have huge and wide open windows so that the guests will be able to enjoy the scenery and there will be tables from outside as well so that people who wants to feel fresh air; will get to experience it as well (See Figure 2 & 3). There will also be a huge, modern bench for staffs to use for giving services to the guests (See figure 4). Modern with the feel of classy furniture to ensure the consistency of elegancy which is what the winery is portraying (See Figure 5). However, the cellar door may have the modern furniture; but the whole building itself is simple with a touch of antique look to signify with some of the wines that the winery is offering which sometimes the wines will be kept for couple of years before they can be produce as a product. This shows that the older it takes, the better it gets (See Figure 6).
Figure 2: (Cloverhillwines, 2017)
Figure 3: (Cloverhillwines, 2017)
Figure 4: (Gourmettraveller., 2018)
Figure 5: (Venuemob, 2017)
Figure 6 (Smudge Eat., 2018).
- The tasting experience that The Golden Grape Winery is offering would be a steadiness of knowledge or education, humour and fun time for the appreciations in an engaging, appealing and unpretentious environment. The guests or customers can be rest assured that they will feel relaxed and they will received high value of service from the staffs. The dishes will be serve with such beautiful plating to make it appealing and make the guests keep wanting for more. The dishes will also be tasty and will match the wines that they will get a chance to taste. Moreover, since the winery serves with class and elegancy, the guests will get the opportunity to have world class experience in a winery which The Golden Grape Winery is offering to its consumers.
Proposed Target Market – explain from each why these markets? Put them in paragraphs instead of dot points.
The Golden Grape Winery has a plan those targets the age of 18 and above to be able to try and get wines. This is because being able to try and get wines at an early age will mostly like have a huge impact in the future. People who are at the age of 18 will more likely be the future of the winery, meaning that they will be the future customers in the winery and might even decide to build their own in the future.
Micro Environmental Analysis of the Golden Grape Winery
Moreover, the target market has to have jobs so that these people will be able to afford to buy and try wines. The targeted population is generally middle to higher middle class population. The reason behind targeting this population is because the mentioned population compromises the majority of population of Australia (Grant et al., 2015). Secondly, the quality of wine manufactured by te mentioned winery is not too high end. Hence, the price range of the wines will be appropriate for the middle and the higher middle class. Since most of the wines are now affordable, people will be more attracted on buying the products of the winery.
Furthermore, ethnicity wise; the Golden Grapes Winery targets the Chinese people due the increasing amount of Chinese tourists all over the world. As per servey, at least three in a group of 10 visitors are from china. Moreover the Australian wine posses high demand in China. In order to attract more Chinese consumers, the mentioned organization is manufacturing traditional Chinese wine along with both contemporary and traditional Australian wines (Galbreath, Charles & Oczkowski, 2016). Also, people who are into wines are the target market and other ethnicity that has the interest on wines. In general, everyone is welcome in The Golden Grapes Winery.
1.
Selling wines is not an easy job, now more than ever wineries have to determine consumption trends and master marketing to increase sales. “Each operational goal is accompanied with corresponding strategies within which the set goals are expected to be accomplished in the following period “(Meler, 2015)
- Creating unique products according to the customer’s need and desires (Celhay et al., 2017).
- Nowadays, consumers are becoming more educated and picky, they decide to purchase the product only when they know all the information about this. So our business has started to complement and specified the detailed list of the ingredients used in the production of wine, on their bottles.
- They also can invest money to create a short video about vineyard, wine making process and people behind the wine. It might give consumers an opportunity to experience the product on a different level.
- In order to get closer with customers, they might prepare outdoor events or take part in the open events if possible. It is a kind of interesting idea for the promotion of our wine and wine cellar. “wine tourism can be defined as visits to vineyard, wineries, wine festivals and wine events whereat wine tasting and acquisition of the knowledge on a particular vineyard represent primary motivating factors for the visitors” (Hall et al. 2000, 3).
- Social media offer a new possibility of interact. It allows customers to communicate with the company and let customers know about this company, such as pictures, videos of current vineyard, cellar, wine sales, etc. Moreover, consumers can make purchase wines online as well. Sometimes, they give customers some promotions or discount code in order to buy the wine with the best price ever.
2.
- Studies have shown that customers welcome the idea of unique products that are customized according to customers’ needs and wants. These products not only proved to be successful in the market today, market expectations and attitudes towards customized products are also generally positive, with most buyers satisfied with their purchase (Goldsmith & Freiden, 2004). As Goldsmith and Freiden mentions (2004), “If personalization improves consumer satisfaction, which it appears to do, then it will lead to successful marketing and improved sales and profits as well.”
- The information from Wyzowl’s fourth annual state of video marketing survey says that video is used for marketing purposes by 81% of companies in 2018, which has increased from 63% in 2017. In addition, it also says that 81% of individuals result in purchasing a product or service because of effect of video (“The State of Video Marketing in 2018”, 2018).
- By holding these events, the winery can also get the chance to meet professionals from many industries such as retailing, restaurants, media and hoteliers (Rupp, 2018). This will also be a good opportunity to extend the reach of our brand
- According to the results from the alcohol beverage market analyst’s IWSR ecommerce study, China is the largest online alcohol market in the world which is increasing at about +15% a year (Lane, 2018). These article shows our target market of Chinese people can contribute to grow our online sales.
Advertising through travelling agency will help the organization to enhance the awareness of the tourists about the Golden Grape Winery and the benefits they will obtain if they visit the mentioned place (Morrison & Rabellotti, 2017).
Collaborating with the reputed hotel will enhance the sales rate of the Golden Grape. Not only that, hotel collaboration als posses the potential to enhance the reputation of the company which in turn will enhance their consumer base as well as consumer loyalty.
Tour discounts: Offering tour discount will help the company to gain competitive advantage over its competitors. Considering the fact that consumers are always on the search of discounts when on a tour, this discount will definitely grab the attention of the target consumers.
Event (ticket discounts): Event tickets like the tour discount will help the Golden grape Wineries to enhance its market through promotion. This factor will help the organization to enhance its brand reorganization.
Target Market and Marketing Recommendations
Website shop: Considering the fact that majority of the population in the world are present online, marketing through website shop will provide the company with a good exposure to the target consumers.
Store sale: Store sale on the other hand will enable the company to attract the local visitors. Moreover, offline presence enhances the authenticity of the brand. Not only will that offline stores also help the winery to understand the specific requirements of the consumers so that the company can fulfil the requirement.
Conclusion:
From the above discussion, it has been found that the swan valley is one of the most suitable places for the mentioned organization to successfully establish its business. However, the fact that the mentioned location is well known for the number of wineries present in that area, being a brand new winery, the golden grape will face high threat from the existing competitors. In order to overcome this, several efficient strategies have been discussed which will help the mentioned organization to obtain competitive advantages over the existing competitors. Considering the fact that price range of wines offered by majority of the wineries are similar, the Golden grape has been recommended to offer high quality wine at a lower price range compared to its competitor. This will enhance the competitive advantage of the organization. Several other marketing strategies that has the potential to enhance the revenue as well as consumer base of the mentioned organization has been discussed. Finally, it can be concluded that with the implementation of the mentioned strategy, the Golden grape wineries will be able to gain massive success in the near future.
References
Bianchi, C., Drennan, J., & Proud, B. (2014). Antecedents of consumer brand loyalty in the Australian wine industry. Journal of wine research, 25(2), 91-104.
Celhay, F., Masson, J., Garcia, K., Folcher, P., & Cohen, J. (2017). Package graphic design and innovation: A comparative study of Bordeaux and Barossa wine visual codes. Recherche et Applications en Marketing (English Edition), 32(2), 46-70.
Chong, S. (2014). Business process management for SMEs: an exploratory study of implementation factors for the Australian wine industry. Journal of Information Systems and Small Business, 1(1-2), 41-58.
Chong, S. (2014). Business process management for SMEs: an exploratory study of implementation factors for the Australian wine industry. Journal of Information Systems and Small Business, 1(1-2), 41-58.
Cloverhillwines. (2017, December 13). Now Open! Clover Hill Cellar Door | Tamar Valley Wine Route Tasmania. Retrieved from https://cloverhillwines.com.au/clover-hill-cellar-door-now-open/
Fleming, A., Park, S. E., & Marshall, N. A. (2015). Enhancing adaptation outcomes for transformation: climate change in the Australian wine industry. Journal of Wine Research, 26(2), 99-114.
Fleming, E., Mounter, S., Grant, B., Griffith, G., & Villano, R. (2014). The New World challenge: Performance trends in wine production in major wine-exporting countries in the 2000s and their implications for the Australian wine industry. Wine Economics and Policy, 3(2), 115-126.
Galbreath, J., Charles, D., & Oczkowski, E. (2016). The drivers of climate change innovations: evidence from the Australian wine industry. Journal of business ethics, 135(2), 217-231.
Galbreath, J., Charles, D., & Oczkowski, E. (2016). The drivers of climate change innovations: evidence from the Australian wine industry. Journal of business ethics, 135(2), 217-231.
Gourmettraveller. (2018). Drink News. Reprieved from: https://cms.gourmettraveller.bauer-media.net.au/drinks/drinks-news/2016/12/handpicked-wines-opens-a-cellar-door-in-sydney/
Grant, B., Mounter, S., Fleming, E., Griffith, G., & Villano, R. (2015). The Australian wine industry at the crossroads: A comparison of performance across major wine-exporting countries in 2000. Australasian Journal of Regional Studies, The, 21(1), 3.
Huffingtonpost. (2017, February 25). Wine Drinkers, Have You Met The Urban Cellar Door? You Should. Retrieved from https://www.huffingtonpost.com.au/2017/02/21/you-dont-need-to-go-to-a-winery-for-a-cellar-door-experience_a_21718993/
Lereboullet, A. L., Beltrando, G., & Bardsley, D. K. (2013). Socio-ecological adaptation to climate change: A comparative case study from the Mediterranean wine industry in France and Australia. Agriculture, ecosystems & environment, 164, 273-285.
Morrison, A., & Rabellotti, R. (2017). Gradual catch up and enduring leadership in the global wine industry. Research Policy, 46(2), 417-430.
Mozell, M. R., & Thach, L. (2014). The impact of climate change on the global wine industry: Challenges & solutions. Wine Economics and Policy, 3(2), 81-89.
Robinson, J., & Harding, J. (Eds.). (2015). The Oxford companion to wine. American Chemical Society.
Santini, C., Cavicchi, A., & Casini, L. (2013). Sustainability in the wine industry: key questions and research trends a. Agricultural and Food Economics, 1(1), 9.
Smudge Eat. (2018). Handpicked Wines Cellar Door. Retrieved from https://smudgeeats.com/directory/sydney/bars/handpicked-wines-cellar-door/
Varsei, M., & Polyakovskiy, S. (2017). Sustainable supply chain network design: A case of the wine industry in Australia. Omega, 66, 236-247.
Venuemob. (2017). Venuemob | Thousands of exclusive venues at the best prices. Retrieved from https://venuemob.com.au/venues/sydney/handpicked-wines-cellar-door
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