Internet Marketing Group Assignment
Essay Preview: Internet Marketing Group Assignment
Report this essay
Internet Marketing Group AssignmentBackground (158 WORDS)Greenstone Vineyards was founded in 2003, just over a decade ago, as a 40-hectare property located at Colbinabbin. Located around 90 minute drives north of Melbourne, it is very close to Melbourne Central Business District (CBD), providing easy access for both tourists and locals to visit. Greenstone Vineyards specialise in handcrafted and premium wine at affordable prices. Their strategy is to find the best locations to grow the best grapes regardless of the different variety of wine. Growing their vine on the ridge of old Cambrian soil, which is neutral in pH and unlike most acidic soils in Australia, has allowed Greenstone Vineyards to produce premium quality wine. The success of Greenstone Vineyards has also led them to expand their wine range to Yarra Valley as well as opening a cellar door only 1 hour away from Melbourne’s CBD. Thus creating more opportunities for people to have a taste of their wines and to understand the Greenstone philosophy. Competitive Analysis (459 WORDS)Greenstone Vineyards are faced with many competitors. With over 2500 wineries in Australia alone, the wine industry is saturated (Winetitles, 2016). Furthermore, there are many substitutes products such as beer, whiskey, vodka and many other alcoholic drinks. Due the highly competitive market, Greenstone Vineyards have proposed a unique value proposition to attract consumers’ attention with its premium handcrafted quality wine at affordable price. There are many cheap wines on the market and there is an increased demand for such products as many wine consumers are price sensitive (Kimmorley, 2015). Thus, to capture this growing market, Greenstone Vineyards priced their premium product at a significantly lower price at $40 to $60, compared to $200 market price for premium quality wine. Furthermore, their locations are very attractive for tourists and locals as it is strategically located close to Melbourne CBD compared to other wineries and vineyards. This makes it easier and cheaper for transporting their products to the market, allowing them to decrease the price for their wine. Moreover, they provide shipping at a relative low cost for those consumers who do not have the time to travel to their wineries.  The function of SWOT analysis is used to evaluate the position of a business and guide strategy to go forward. The following SWOT analysis indicates the strengths and weaknesses of Greenstone Vineyards as well as the opportunities and threats the wine industry is facing. As shown below, Greenstone Vineyards’ strengths include its good channels of distribution and pricing, as well as their use of unique Cambrian soil that is rare to find in Australia. Likewise, their locations allow them to get close to their consumer. Furthermore, there are many great opportunities for Greenstone Vineyards. The emergence of online presence in the wine industry has allowed them to reach a larger consumer base. Moreover, with the Australian dollar depreciating, the export market has been increasing significantly, with United States remained as Australia’s largest market and China’s market has gone up by 66% in 2015 (Worthington, 2016).
Greenstone Vineyards, however, has its disadvantages. With low brand recognition and awareness, it is difficult for them to break into the market and surpass its well-established competitors like “Chandon” and “Dominique Portet” in Yarra Valley. Furthermore, with wine domestic sales declining for the past five years by 2.5% as well as locals preferring imports wine from Europe and New Zealand, it is difficult for local wineries to gain market share (Winetitles, 2016). Additionally, Melbourne has unpredictable changing climate, this could result in vineyards not being to achieve their potential to make great wine (Carmody & Creagh, 2013).  Despite these weaknesses and threats, Greenstone Vineyards still has the potential to become successful in the industry as its unique value proposition justify their customer value and it also has the opportunity to tap into the growing export market. StrengthsWeaknessesMuch cheaper than most wine of the same qualityGood channels of distributionClose to CBD, distanceUse of unique soil and no chemical use in production of wine – organic winesGeographic locationCommunity-focusedCompeting against other established wineriesLack of reputation and brand awareness internationally (only 70 followers on Instagram, no twitter and an inactive Facebook page)OpportunitiesThreatsNew brand image for wineries in Australia – localEmergence of online presence in the industryIncreasing export markets and lower tax in international marketSupport of green initiativesIntense competition – Market is saturated and dominated by established brands such as “Chandon” and “Dominique Portet”Wine domestic sales have declined over the past five years by 2.5%Red Wine imports have continue to grow by 8.5% in 2015 Melbourne changing/unpredictable climateMarket Structure (447 WORDS)The Australian wine industry is one of the largest exporters and producers of wine in the world. It has also make a significant contribution to the Australian economy through production, employment and tourism (Anderson & Nelgen, 2013). These three components of the Australian wine industry have strong linkages to many different industry of the Australian economy, in particular the businesses that supply goods and services demanded by the employees. Subsequently, the contribution of the Australian wine industry to the Australian economy is greater than just its direct effect.