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    Mis Case Study

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    Jimit Gandhi
    The document discusses the growth of Australian wine exports to Japan from the 1990s to early 2000s. It analyzes factors that drove this growth, including the in-country presence of Australian exporters, marketing efforts of the Australian Wine and Brandy Corporation, Australia's reputation for quality and value, and changing cultural attitudes in Japan. It also examines Southcorp, one of Australia's largest winemakers, which deliberately pursued an export strategy to Japan, partnering with local distributors to find success in the Japanese market. Finally, it considers future opportunities and challenges for Australian wines in Japan.

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    Mis Case Study

    Uploaded by

    Jimit Gandhi
    141 views18 pages
    The document discusses the growth of Australian wine exports to Japan from the 1990s to early 2000s. It analyzes factors that drove this growth, including the in-country presence of Australian exporters, marketing efforts of the Australian Wine and Brandy Corporation, Australia's reputation for quality and value, and changing cultural attitudes in Japan. It also examines Southcorp, one of Australia's largest winemakers, which deliberately pursued an export strategy to Japan, partnering with local distributors to find success in the Japanese market. Finally, it considers future opportunities and challenges for Australian wines in Japan.

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    The document discusses the growth of Australian wine exports to Japan from the 1990s to early 2000s. It analyzes factors that drove this growth, including the in-country presence of Australian exporters, marketing efforts of the Australian Wine and Brandy Corporation, Australia's reputation for quality and value, and changing cultural attitudes in Japan. It also examines Southcorp, one of Australia's largest winemakers, which deliberately pursued an export strategy to Japan, partnering with local distributors to find success in the Japanese market. Finally, it considers future opportunities and challenges for Australian wines in Japan.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    141 views18 pages

    Mis Case Study

    Uploaded by

    Jimit Gandhi
    The document discusses the growth of Australian wine exports to Japan from the 1990s to early 2000s. It analyzes factors that drove this growth, including the in-country presence of Australian exporters, marketing efforts of the Australian Wine and Brandy Corporation, Australia's reputation for quality and value, and changing cultural attitudes in Japan. It also examines Southcorp, one of Australia's largest winemakers, which deliberately pursued an export strategy to Japan, partnering with local distributors to find success in the Japanese market. Finally, it considers future opportunities and challenges for Australian wines in Japan.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 18

    Exporting Australian Wine to Japan: A case study of export success

    JIMIT GANDHI ANKUSH BOBADE NEELKANTH KADAM

    SECTION 1: THE GROWTH OF AUSTRALIAN WINE EXPORTS TO JAPAN

    THE GROWTH OF AUSTRALIAN WINE EXPORTS TO JAPAN


    Australian Wine Industry experienced a world wide boom since the late 1900s, especially in Asia. Sales rose by 108% from 1991 to 2001 in terms of volume. According to the report, Australia was the sixth largest exporter of wine to Japan at that time. There was a 180% jump in export sales of Australian wine to Japan to US $ 15.3 million to US $ 42.9 million between 1995 to 1999.

    Reasons that drove the export growth


    There are a number of reasons for Australias strong wine export performance to Asia. These reasons can summarised under the following six headings: The in-country presence and commitment of Australian exporters The work of the Australian Wine and Brandy Corporation; Quality control in Australias Wine Exports; Australian wines representing good value for money; Cultural shifts in Japan; Positive perceptions of Australia.

    THE IN-COUNTRY PRESENCE AND COMMITMENT OF AUSTRALIAN EXPORTERS


    There was more than just mere packing the products destined to Japan. Major exporters established regional and local representatives in Japan They also developed distribution agreements with major Japanese distributors. e.g. Southcorp had two employees in Yokohama, Japan to allow direct consultation and create direct relations with Japanese importers and distributors.

    THE AUSTRALIAN WINE AND BRANDY CORPORATION


    The AWBC was created by The Australian Government in 1980. Funded via a wine export levy that is imposed on all Australian exported wine. Responsible for regulating the industry, supplying the information about the industry and most importantly promoting Australian wines via the Australian Wine Export Council (AWEC)

    QUALITY CONTROL
    Japan is highly demanding as far as quality and value for money is concerned regarding the imported wine. Australia have various export controls to ensure that these demands are met. These controls exert a form of a competitive advantage for Australian producers as many other wine producing countries do not have such stringent checks.

    Wine can be rejected or deemed faulty based on any of the following: lack of vinous character; clarity and condition; chemical contamination; microbial contamination; cork contamination; other contaminants or taints. The AWBC also conducts random sampling to ensure wine quality is as per original sample.

    VALUE FOR MONEY


    Australian wine represents a good value for money which proved advantageous for long term.
    Australia can produce quality wine relatively cheaply due to the abundance of suitable land. E.g. in 2001, the average price of French wine at Japans customs house was 746.5 yen a litre, compared with 475 yen for Australian wine So, challenge was to convince more and more Japanese customers that the wine quality is comparable to that of its competitors but at a cheaper price.

    CULTURAL SHIFTS IN JAPAN


    The Japanese are traditionally Buddhists, therefore no religious barriers exist that prohibit alcohol consumption. Lately, perceptions regarding consumption of wine has changed from special occasions to daily consumption habits.

    Awareness of wine in Japan is also escalating.


    They can now afford the new world wines.

    POSITIVE PERCEPTIONS OF AUSTRALIA


    The Japanese perceived Australia as a place having clean environment and healthy living. Australia maintained a long standing trade relation with Japan since several years. Large number of agreements are being shared by both the nations.

    The agreements and relations made administratively easier and cheaper for export and also gave Australia a competitive edge over the other nations that Japan is not so familiar with.

    SECTION 2: A CASE STUDY OF SOUTHCORP

    CASE STUDY OF SOUTHCORP


    Southcorp was one of the largest wine maker in Australia and considered amongst the top 50 companies of the Australian Stock Exchange. Was found in 1993. In 2002, total annual sales stretch around 2 billion and the after tax profit is more than 200 million US $ with over 2500 employees.

    It was formerly known as South Australia Brewing company, which was established in 1888, mainly focusing on beer production.

    Since its establishment, Southcorp had two major agendas:


    To be the lowest cost wine producer in the country and in the world. To give priority to exports of wine, because of the growing opportunities in the international market, rather than domestic market

    Acquisitions and agreements: Bought Rosemary wineries in February 2001 which had a reputation of being reliable, consistent and provide best quality. They made a deal with Asahi Breweries, Japan, to market their wine brand Lindemans, due to which they got the largest export order of all times. Similarly, Penfolds label was distributed by Japans largest alcoholic beverage distributor Suntory.

    There are a number of notable findings that emerge from this brief examination of Southcorp: Its export success was not an accident, it was the result of a deliberate and planned export strategy. A specific section of the company was established to focus on exporting; It was able to build upon earlier work done by companies it had acquired; It was able to utilise the expertise of in-country partners where appropriate; It understood what its comparative advantages were.

    SECTION 3: FUTURE FOR AUSTRALIAN WINES IN JAPAN


    Opportunities:
    The industry outlook report Asia Pulse undertaken in July 2000 perceived the Japanese market very optimistically on the basis of the trend of Japanese consumers to purchase high-end wines. The weak Australian dollar and Australias strengthening reputation for quality and value for money were causes for some optimism about prospects for future growth.

    Challenges:
    Uncertainties facing all exporters. Fluctuating currencies. Pressure of international competition.

    Maintaining future of Australian wines in Japan: Promoting the Australian wines: The strategy was to lay the marketing focus on the younger under 35 age group who are less conservative and responsive towards suggestions. Other priority area was to promote Australia as safe and healthy producer of wine to promote the health benefits of moderate intake of wine. Monitor the export quality Maintain long term trade relations with Japan.

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