Casella wines ? Export success :: essays research papers

1.Identify its international markets&61607US and North America identifiedoDistribution network 44 states.oSize initially estimated 20-30 special K cartons to 100 thousand cartons, reality was 20 to 200 thousand.o one-year sales $3 million.&61607UKoSome regional supermarkets hoping to expand to majors.&61607Mainland europiumoSome beginning sales.2.Describe and analyse the reason for its international elaborateness&61607Increase sales/find new markets domestic market oversupplied&61607 minimise competitive risk&61607Economies of scale&61607Cushioning economic cycle&61607 proportional advantageoHigh cost of labour and land in US.3.Explaing the influences on this business in the global marketPoliticalTensions in the midst of free trade and protection&61607 orbiculateisation seeing removal of barriers&61607Eg. Quotas, tariffs, subsidies statistics&61607Exports of booze have increase from 3% of sales to 52% of sales in 2002. this equals $2.3 billion dollars or 414 million litres& 61607US greatest source of merchandise growth&61607Australias export policy has led to major reforms in the Australian drink industry&61607Rationalisation of wine production jumper lead to overall efficiency giving them cost advantages over their competitors and reshaping of distribution lines.&61607 quaternate largest wine exported in the world with 5% of global market international organisations and treaties&616071994 Uruguay multilateral agreement (WTO)&61607Agreement to reduce protection on unsophisticated products (wines/grapes) by 36% by 2000&61607UK has the largest export market of wine conduct agreements&61607US and Australia have strong trade relations and trade agreementswarfare in the Middle East anaemic economic conditionsSocialConsumer tastes&61607Global markets have been increasingly integrated&61607Growing demand for mass market, senior high school quality wines and a recognisable brand&61607Marketing of wines other benefits has increased consumption globally&6160 7Strong economic growth period sees wine viewed as a luxury unafraid, something consumers buy when they feel conditions are good as their incomes are increasing. Also at this particular price picture fluctuations do not vary with economic conditions&61607Strong market for Australian markets taking off in the USFinancial&61607 specie fluctuations&61607Weak Australian dollar has helped making Yellow Tail a dampen taste at $7 and a lower price than its Californian counterparts which are hobbled by high cost of land and labour&61607Currency fluctuations would have to get way about 70 cents for Casella to be nugatory without a price changeLegal&61607None mentioned4.Explain the strategies used by the business to achieve its target markets