Penfolds Analysis
Essay Preview: Penfolds Analysis
Report this essay
Price
Australia has many wine producers most of whom are small winery operations, so penfolds is facing a fierce market competition. The price strategy which can affect the target customers should be diversity; therefore, the company should analyse who is the target customer, then design the specific strategies. The price of a product depends on the different customers and different market. Retail selling as one of marketing strategies of penfolds mainly focused on the low expenditure customers. Because of the low end of the price scale are concentrate on retail price, and few of them are expensive (Hibbs et al 2011, p16). The new CEO of penfolds affirms that the company will set a minimum price, so some market price for retailers will increase (Schmitt 2011). Previously, some retailers sold the wines cheaper than the price that penfolds provide to them. It may lead penfolds to loss of value. Penfolds also has the luxury products which focus on the high income customers and collectors. Penfolds grange that sells for $350 to $500 on release and some older vintages are more expensive (Phillips 2012). The price for the luxury penfolds depends on the grapes the year and the quality. The quality of wine cannot be measured until the consumer actually consume the product; thus, wine is an experience product (Barber et al 2008; Barber et al 2006; Chaney 2000; Jaeger et al 2009 cited in Bruwer et al 2011, p5). Therefore, the luxury penfolds wines always absorb the old costumers depend on the brand loyalty.
Place
The place means the activities which the products can be acquired by the target customers and end consumers (Armatrong et al 2012, p59). The partners of penfolds include the restaurants and retailers. Penfolds should design the strategy for retailer partner; therefore, a long-term relationship can be built with its partners, which will increase the market share of penfolds.
1 Restaurant
In restaurants, customers always order a wine for the special dinner, most of these customers require the waitress recommend a particular wine for them; therefore, a recommendation from the waitress can be more meaningful. The partner option of restaurant for penfolds is significant, which can increase the number of potential customers.
2 Retailers
The retailer determines the majority sales volume of the penfolds, such as Coles and Woolworth. The reason is that retailers mainly focus on the normal and low income customers, at the same times retailer can sell all kinds of the products of penfolds. Meanwhile, cooperation with retailers provides more options to the customers. The weakness of the retailers is the competition. In order to acquire the competitive priority, some retailers sell the products at a lower price.
3 Online stores
With