Innovation And Entrepreneurship In Australia’s Wine Industry | Wine O’clock

Growing Demand for Wine in Australia

The study sheds light on innovation and entrepreneurship managing different creative and competitive development of a venture plan in Australia; Wine o’clock. This group venture plan focuses on smart wine glasses that set off alarms when you try to drink beyond your preset quota of pegs.

Australian wine growing industries are extending from South and Queensland to the west of Tasmania and Margaret River. Australia accounted for making up to 82% of the four 74,000,000 L of wine during 2000-21 (Flor, & Gakidou, 2020).

The growing demand of the wine sector contributes over $40 billion to the Australian economy annually (World Health Organisation). In addition to this, the country ranked 5th as one of the largest wine exporters by making approximately 6000 grape growers and 2500 wineries (wineaustralia.com). The new venture plan of smart wine glasses are being produced by the company wine o’clock. The company majorly focuses on moderate wine drinking for reducing the risk of cancers. Also controlling the usage of wine levels, a health-conscious population can drive the growing demand beyond nutritional knowledge of wine and change the patterns of awareness of alcohol consumption amongst most old ages in Australia .

Global demand for wine created new exports at extraordinary rates and brought a boom into new vineyard plantings around the world. However unhealthy and unlimited wine consumption has been connected to increased heart disease rates and a risk of death by heart attack increased by 30 to 50% in Australia (wineaustralia.com). The aim of the company is to understand how controlled wine consumption can play in the willingness of consumers to purchase smart wine glasses. In addition to this, consumers can make their consumption decisions based on understanding the level of beverages and improving their health status regularly.

Alcohol consumption can create different problems whereas daily wine drinking can increase the chance of high blood pressure, stroke, digestive problems, heart disease, and also liver disease. Australia has evidence of an increase of 8.3% based on alcohol-related deaths (Esser, & Jernigan, 2018). On the other hand, the wine market places in Australia suggest different health benefits related to rich antioxidants, keeping the heart healthy, reducing the risk of common lowering bad cholesterol keeps the memory sharp.

The need for smart wine glasses can aim for protecting people against harmful inflammation and promote longevity against heart disease. On the flip side, people in Australia developing synchronized systems to measure daily alcohol consumption. The company wine o’clock can provide innovative solutions with their pre-alarm features to make a standard quantity to the user of the glass. As well, heavy wine consumers can also try to reduce their drinking habits by setting the alarm in the smart wine glasses and save them from long-term health risks and heart attacks.

The three major regions, South Australia, Victoria, and New South Wales are known for wine growing due to the climate varieties (Young et al. 2018). In addition to this, the company can develop its products in these places including different wine regions in Victoria. The wine glass manufacturers and the wine beverage producers target mostly drinkers of the between of 65 to 79. The company can target the older people who are mostly nowadays aware of the healthy consumption of wines. Australian liquor laws law be complied by Wine o’clock company to develop more exercise for healthier and affluent wine consumption and reducing cardiovascular risks.

The Risks of Consuming Too Much Wine

The CEO Michael, CFO Robert, and sales senior Adam think of the product by reducing wine consumption and the  effects of devastating harmful alcohol on mankind. The idea also comes from promoting the 3rd sustainable development goal where the organisation UN is focusing on ensuring well-being and healthy lives for all at all ages. These facts about sustainable development can measure performance through only a glass of wine where users can set a Pre-Alarm for healthy consumption and also make easier usage of the product. The company, Wine o’clock improves the health of millions of people in Australia Who are common with a wide range of diseases and trying to address emerging health issues due to alcohol.

The value proposition of wine o’clock has been consistent to boost physical and cognitive performances with lower levels of alcohol consumption. Also the product offering mainly addresses health risks due to heavy consumption of alcohol and wine beverages. The pre-set alarm functions of the smart wine glasses can differentiate themselves to associate with common diseases due to excessive alcohol usage and identify a benchmark of healthy wine consumption for both drinkers and nondrinkers (Mattick et al. 2018).

• Segmentation: In Australia, the costing of wine mainly targets high-end and middle-income demographics. Therefore, the company must involve high and middle class consumers who are habituated with wine consumption. On the other hand Kelly et al. (2018), based on their behavioural segments, the company mostly targets health concerned people who want to reduce their habits of drinking as well as want to manage standard drinking amounts. Australia has focused on the Liquor control reform act which demonstrates responsible supply of liquor and supervision of manufacturing, sale, promotion, advertising and consumption to different age ranges.
• Targets of the company: The sustainable targets of the Company mainly defines behavioural targeting depending on the behaviours of audiences. The targets developed over the health-conscious people and health-conscious people, mostly drinkers aged 65 to 79, people who drive after drinking, and the habituated people with daily drinking (ibisworld.com). The targets can raise concerns for limiting alcohol sales and services. The targets also can provide development of community coalitions that build partnerships with local glass manufacturers, wine producers, faith-based organisations, healthcare, law enforcement and public health agencies for reducing excessive use of wine (Kraus et al. 2020).
• Positioning: Wine o’clock mainly uses functional positioning for promoting their smart wine glasses to the solution of many health issues raised due to uncontrolled alcohol consumption. The functional positioning also can recommend a drinking limit for Australians old ages who can choose to drink in different bars, restaurants and other homely places in operations. The pre-set alarm can measure differently for both men and women drinking levels even for those who are not regular drinkers. In addition to this, the positioning of the brand into the Beverage market can place themselves in keeping health risks to a lower level and offering licensed premises with reduced impact on health.

• Product: wine o’clock defines smart wine glasses which are made of hundred percent recyclable resources available in domestic markets such as soda ash, sand, limestone to be used in greater volumes.
• Price: The price of the pre-alarm set glasses mainly costs $15. However the company also manufactures recyclable glasses and single pieces without the alarm cost $7.
• Promotion: the company can target both online and off-line mediums to inspire people and educate about the product and align with a healthy lifestyle. Also the promotion can define different low-risk agendas for controlled wine consumption in Australia and community development programmes. On the other hand, Alavi et al. (2018), wine o’clock can represent social media advertisements, celebrities for branding and also other print media channels for expanding the health benefits of using the products.
• Place: the smart wine glasses can be supplied directly to the restaurants, bars and residence of consumers by third-party delivery companies. Also the brand can develop online marketing premises through their websites and encourage people to educate more about limited alcohol consumption and make their health better.

• Competitors: The international competition is expanding to grow with the volume of wine production and level of exports. In addition to this, Australian consumers make reasonable wine choices and wine brands with a percentage of 82 (dovepress.com). On the other hand, the steady growth in wine imports grew by 7% through a compound annual rate in Australia (Song, Qian, & Yu, 2019). There are most popular wine producers in Australia which are managing product varieties and other differentiation in product prices such as Cape Mentelle, treasury Wine Estates, accolade vines, Casilla family brands (Malik et al. 2018). Australia has a major number of wine producers in all the states of Tasmania. However these direct competitors can be the barriers to entry for the wine o’clock by presenting food safety varieties and consumer health protection agendas.

The brand started their business with the help of $90,000 capital and also a loan from The National Australia bank of $500000. The CEO Michael also defines the total start-up expenses of $ 340, 700 during their starting time. Also the breakeven sales covers the actual amount of $ 345, 783. The total operating income for the first year can be $ 584,075 and the second year the increase of $ 638,55 and The third year can be $ 720,106.

The positioning of the Smart wine glass can define different low-risk of health agendas for controlled wine consumption in Australia through community development programs. Wine o’clock majorly focuses on a health-conscious population to drive the patterns of alcohol consumption and reducing the risk of common cardiovascular diseases, heart attacks and death due to heart related problems (Jiang et al. 2018). The smart positioning of the product can create unique values for setting benchmarks and set standards by both the users and Automatically. It can be used in different restaurants, consumer houses and other bars of healthy wine consumption for both the nondrinkers and drinkers.

Power of suppliers: the major alcohol and beverage industry in Australia has lower power while the industry develops a competitive technique for understanding and increasing possible earnings (Mialon, & McCambridge, 2018). By managing item advancement strategy, the smart wine glasses can specialise on residential drinking, drinking at bars and restaurants where the collaboration with niche glass manufacturers can lower the power of suppliers.

Power of consumers: the bargaining power of consumers is also low due to the differentiating atmosphere and unique strategy of the brand. Smart wine glasses make their differentiation by discovering images or breakthroughs and reducing hazardous impacts of alcohol. However the strength of the organisation is the positioning where the distribution is coming from the main wine yard areas of Australia including south Wales, South Australia and Tasmania.

Wine O’clock’s Smart Wine Glasses

Rivalries: Australia has huge growth of the industry managing peer to peer revenue and also a major distribution of $100 billion on yearly basis (abs.gov.au). This can create major competitions for traditional wine producers who develop themselves in mass production and manufacturing. Limiting wine usage and consumption amongst health concerned people can create challenges for the whole industry and its revenue generation.

Threats of substitutes: there are mostly old age people who consume wine regularly however the population is now focusing on the alternatives based on drinking caffeinated beverages and sugar contained energy drinks. Smart wine glasses may face major risks of substitutes where people are on stopping absolute consumption of alcohol at the age of 60 in Australia.

Threats of new entrants: the Australian economy has developed with the growth of different wine brands and the volume of wine export. The idea can be presented by other wine companies to limit daily consumption of wine and make it as propaganda for people to encourage repeat purchases of their products. These new entrants can create major barriers for wine o’clock.

Political factors: the level of regulation is heavily connected to interstate commerce in Australia where Australian wines mostly cover $3.5 billion domestic markets. Also the number of Australians consuming wine annually grows to 500,000,000,000 in 2020 (Savell, Fooks, & Gilmore, 2016). Mostly the drinking wine age covers 65 to 79 age and old people over the last quarters. Also Australian Political stability forecasts favourable demand across most of the downstream products and essential for households. The glass industry also demands conditions and major productions for whiskey, local wine and glass bottles for both household and business purposes.

Economic factors: Australia has the GDP rate of 3.4% and a rise of 1.9% from the previous year that impact on tax rates and exports. Also, the number of aged population defines 16% of the Australians total population who are mainly retired and focusing on relaxation for their well-being (McCambridge, Mialon, & Hawkins, 2018). Over 1.2 million people in Australia are employed in distributing, producing and selling wine. These effects can increase product prices and create drag on demand.

Socio – cultural factors: alcohol is an intrinsic option for most of the Australians where the society enjoys wine and Home brewed beers at all social situations, sports matches or weddings. Most people of older ages in Australia avoid the consumption of beer or whiskey rather they are habituated with wine to balance daily nutrition and also reduce the Chances of serious health issues for seniors.

Technological factors: Australia has an immense impact on technology by focusing on research and development and cutting the cost of manufacturing and production. The latest technology invented by the wine O’clock company which can evaluate smart alarm systems to prevent uncontrolled drinking into different parties, for people who are used to driving and for regular drinkers.

Environmental factors: in Australia there are more than annual 1,360,000 tonnes of glass consumption regarding beer or wine bottles, glasses, containers and glass jars (Rehm et al. 2020). This amount of glass consumption created major environmental Impacts of landfill and also problems of different melting temperature and not recycling. Wine o’clock can evaluate recyclable Wine glasses in reducing environmental impacts and developing waste management in Australia.

Targeting the Older Population for Healthy Wine Consumption

Legal factors: the Food standards Australia- New Zealand defines how standards can lead to safety of health regarding food and beverage industries in Australia. Also the Wine Australia act 2013 demonstrates a standard and benchmark for the production, export and sell (Jurgen et al. 2021).

Conclusion

By the business plan, Smart wine glasses can be suitable for moderate or light wine consumers and also people who consume daily by setting an amount of drinking to not harm health. Wine o’clock mainly targets skilled employees of the company who can develop demonstrations of the product. Also implementations of state and federal laws in Australia demonstrate recycled facts without loss in quality or purity of wine glasses.

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