Table of Contents

Introduction...............................................................................................................................................2
Objectives...................................................................................................................................................2
Macro Environment..................................................................................................................................2
Political aspects...................................................................................................................................2
Economic Factors................................................................................................................................3
Social factors.......................................................................................................................................3
Technological factors..........................................................................................................................3
Environmental.....................................................................................................................................4
Legal factors........................................................................................................................................4
Market segmentation, targeting...............................................................................................................4
Swot Analysis.............................................................................................................................................5
Competitor Analysis..................................................................................................................................5
Analysis......................................................................................................................................................6
Marketing Strategy...................................................................................................................................6
Budget........................................................................................................................................................7
References...................................................................................................................................................8
Introduction
Barrique of Coonawarra was founded in 1975 by Tim which is situated in the Coonawarra region
alongside Wynns Coonawarra estate, Bowen estate and many local hotels. This winery is well
known for producing Cabernet Sauvignon. Tim use to travel internationally to learn additional
wine making strategies from wineries around France and United States of America. He is known
for his helping nature around Coonawarra as he use to help other wineries during the busy
harvest and production season. The winery is being run well so he added a range of cheese
platters along with wine to increase the revenue. (Gonzaga, 2020) His red and white wine
options are accompanied by cheeses, dried fruits, and chocolates. Their winery offers a
Coonawarra staple Cabernet Sauvignon and a Riesling to attract customers who prefer red or
white wine. The red wine cabernet is their special one as the local soil is famous for producing
excellent grapes. Although Tim himself does not drink but they offer one kind of sparkling wine
for the consumers.

Objectives
 The winery would love to increase the net profit by 50,000 in 2024.
 Increased production capacity to accommodate tour groups.
 Marketing of products on social media platforms.

These objectives can be accomplished through increased investment in order to cater the demand
of wine in the region. Their profit can only be increased if they target additional markets other
than the high, class Australians by making it affordable for the middle class and Youngsters.
Their advertising strategy can use Facebook, and Instagram for the promotional activities.
(Sharpe, 2006)They can post customers enjoying their wines and discounted offers for groups or
those who cannot afford. Tim’s goal of achieving targeted profit can also be achieved through
offering other things except wine which will increase the number of sales and hence profit.

Macro Environment
Political aspects
Political factors can impact Barrique Coonawarra such as

 Level of corruption
 Legal framework for contracts
 Trade regulations
  Anti-trust laws
 Taxation
 Wage rules
 Product labeling

Economic Factors
 Government Intervention in the free market and relevant wine industry
 Efficiency of financial markets
 Labor and productivity costs
 Economic growth rate
 Discretionary income

Social factors
Society’s culture and method of doing things impact the culture of an organization.
(RenéeMozell, 2014) The attitude of the consumer market determines how the winery is going to
market their products and design the message. Some of the social factors are:

 Demographics and skill level of people

 Class and power structure of a society
 Free time priorities
 Attitudes ( health factors)

Technological factors
Technology can affect the winery industry as advanced machinery can speed up the process of
production which can be helpful in utilizing the increased demand. The adaptation of technology
by competitors can hurt Barrique Coonawarra in the long run. Some of the technological factors
are:

 Recent advancements by competitors

 Its impact on product offering
 Effect on cost structure
  Rate of technological diffusion

Environmental
Environmental factors also impact the wineries. Some of the following factors are

 Weather
 Climate change
 Air and water pollution
 Recycling
 Waste management

Legal factors
Barrique Coonawarra winery should carefully evaluate their secret ingredient so that no one can
copy that. Some of the legal factors that winery should consider are

 Antitrust law
 Discrimination law
 Patents
 Health and safety law
 Data protection
 Consumer protection (Sharpe, 2006)

Market segmentation, targeting

Tim offers variety of wines with different prices, they consider their target market to be high
income, Australian and overseas. Being a small winery, they are not able to fulfill the capacity
without reservation that is why their major market segment which is tour groups are neglected.
Tim can focus on increase the capacity so that tour groups can be accommodated with the wine
services. In the wine sector, the products are divided into pre dinner wine, table wines, high
sweetness, increased alcohol content and some special wines only for women. (L.Christ, 2013)
Market can be segmented on the basis of age as young adults have higher frequency of drinking
wine with friends or at the party. They always purchase low-middle level wines according to
their earning. Their most focus is on the branding and packaging. On the other side, old, aged
people are fonder of drinking expensive wine with family or at home and they have higher
capacity of spending. They mostly prefer high alcohol content.

Barrique Coonawarra can put some efforts to target middle class people who earn middle income
but love to drink wines. They can put some offers or make cheaper wines for them in order to
increase their market share and consumer base. Tim has found growth among Chinese consumers
and will want to increase the demand among them through providing them with sweeter and high
alcohol content wines. They can also target nationals of different regions and can provide them
the services through online platforms.

Swot Analysis
Strengths Weakness
 Extensive variety of Wines and other  No online platform
food options  Expensive than others
 Good characteristics  No on-premises dining
 Good business location and  Limited production
positioning of winery

Opportunities Threats
 Social Media Platforms  Increased Capacity of others
 New Food Options  High competition
 Aesthetically designed place for dine
in

Competitor Analysis
They find Wynns Coonawarra Estate as their biggest competitor but there are others as well such
as Rymill Coonawarra, Majella Wines, and Penley Estate. Wynns is the largest vineyard in the
region, so it becomes easier for them to cater the demand. They are known for their depth and
consistency in flavor. Majella wines is known for their cabernet sauvignon as the most liked one
by the customers. It is a small winery but an award winning. (Marsh, 2007) Penley Estate is
known for producing classic full-bodied reds, their exceptional service and great location. Their
journey is remarkable as from once an empty plot to award winning winery.
Analysis
Their key strength is the different combination they create with wine and food. The variety of
food options they are offering makes the experience unique in nature. Different consumers like
different wines so they have the best variety for every kind of consumer. Customers have always
appreciated the fact that their preference has never been neglected by the winery. This winery is
known for its positioning and quality of wine, but their no online presence has affected them
badly. Social media platforms are utilized to make their brand known worldwide though posting
stories of consumers enjoying wine. In order to increase their value outside the local area, they
must utilize the social media to get more famous. (Marsh, 2007)

Their most crucial opportunity lies in the dine in option for the consumer. Young generation
today loves going to aesthetically pleasing places where they can sit and enjoy wine. Barrique
can incur some expense to design a dine in place for the people who are not from around the
winery. The national and international tourists to this place can enjoy their meals there. Through
this step, they can manage more customers without reservations. Barrique finds Wynns as one of
their major threat in the form of competition as they also provide wine tasting facility, food from
commercial kitchen and event organization. Barrique Coonawarra increased prices may hurt
them as there is high competition in the market area.

Marketing Strategy
 Barrique Coonawarra can enter the market through agents and distributors as they will
know better where to introduce these wines. They can also place their products in
restaurants and supermarkets to increase their revenue.
 Dine in can be designed for on premises wine experience for the consumer. They can
design the premise in a modern way that can please the customers.
 Paid social media can be their strategy to increase customer base and value among them.
Through this, they can attract potential customers who are interested in wine.
 Wine clubs is another strategy to achieve their goals where members of the club are
committed to purchase 12-15 bottles of wine quarterly, in exchange for a discount,
invites, and unlimited free tastings. This causes repeat business and provide cash flow
throughout the year.
  Introducing a source of knowledge as most of the consumers have least knowledge of
different kind of wines. They do not know the difference between a cabernet sauvignon, a
merlot, and a pinot noir. An easy-to-read blog can be created in an interesting way to
educate the customers which will ultimately build a loyal brand following. (Bruwer,
2002)
 Using Influencers is another of promoting the brand. Winery can target influencers with
over 100,000 followers who can post their wine on their socials.

Budget
Item Metric 2023 2024
1 Customers 11500 13,190
Item Metric 2023 2024
2 Revenue 500,000 573,382
Costs
3 Staff 82,400 88,168
4 Supplies 175,000 187,250
5 Rent 41,200 39,055
6 Equipment on lease 20,600 18,404
7 Others 6,180 5,885
8 Marketing Spent 0 10,000
9 Net Profit 174,620 224,620
References
 Bruwer, J., 2002. Segmentation of the Australian Wine Market Using a Wine-Related
Lifestyle Approach. Journal of Wine Research, 13(3).
 Gonzaga, L., 2020. Sensory typicity of regional Australian Cabernet Sauvignon wines
according to expert evaluations and descriptive analysis. Food Research International,
Volume 138.
 L.Christ, K., 2013. Critical environmental concerns in wine production: an integrative
review. Journal of Cleaner Production, Volume 53.
 Marsh, 2007. Wine and economic development: technological and corporate change in
the Australian wine industry. International Journal of Technology and Globalisation,
3(2).
 RenéeMozell, M., 2014. The impact of climate change on the global wine industry:
Challenges & solutions. Wine Economics and Policy, 3(2).
 Sharpe, S., 2006. Wine, regions and the geographic imperative: The Coonawarra
example. New Zealand Geographer, 62(3).