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INTRODUCTION
The last couple of years Australian wine has taken over the British market and this is surprising, keeping in mind that the English are devoted French wine drinkers. In the following paper we present the British wine drinking segment, what they value in wine and the reasons why the Australian wine is now performing better than the French one in the British market.
ANALYSIS
SWOT for Australian wine
Australian vs French wine
French wine has been beaten into second place in British affections by bottles from Australia. The end of 001 brought the shocking news that the British, once the worlds most reliable customers for French wines, now preferred wine from Australia.
The Australian wine has a standard high quality thanks to the fertile land. "Australia is the most venerable continent on the planet. And that aged soil, coupled with plentiful sun and the right grape varieties seems to help make wines with a soft, easy-going character" .
In France the weather is often unfavourable and this leads to a balancing wine quality. "More often than not, regions such as Bordeaux and Burgundy are far from ideal for wine. Even the French would have to admit that two years out of every three, theres too little sun or too much rain for all but a few vineyards. For the rest, stormy vintages produce watery wines, while cool, cloudy years are responsible for the green-tasting, unripe flavours encountered in, say, poor examples of claret. In Australia, while grapes are being grown and wine made in an increasingly varied range of climates from the balmy Barossa Valley to the often chilly island of Tasmania, watery, green wines are incredibly rare" .
Moreover the simply labelled Australian wine bottles make the proceduring of wine buying fun. Most people prefer to be able to pick up a bottle that they know how the content will taste than having a fancy name. An Australian wine label will usually offer at least two clear pieces of useful information the grape variety, Chardonnay or Shiraz, for example, and the producer, such as Penfolds, Peter Lehmann or Rosemount.
Unlike the Australians who proudly display their brands across the front of the bottle, French producers names often appear at the foot of the label, in print so small that you need a magnifying glass to read it.
As about the French wines, "how is anyone to know what kind of grape was used to make a minervois, for instance? It might legally be a richly dark, spicy pure Syrah (or Shiraz, as the Australians say) or a blend of lighter peppery Grenache and soft, earthy Carignan. According to French law, the maker is expressly forbidden from telling you which. Fortunately, he or she is allowed to reveal their own identity on the label" .
An other important aspect is that the export environment for Australian wine has been favourable and there has been a commitment by the industry to collaborative marketing. The Australian Wine Export Council and its overseas offices have supported the initiatives of individual companies through value added collaborative promotions.
"All of these has resulted in a strong consumer acknowledgment of the "Australia" wine brand which has a unique selling propositions-flavour, consistency and value for money-and brand values which reflect our Australianess-informality, relaxed sophistication and good natured fun" .
What does the customer value?
The value of the upper classes who take wine at home and in prestigious restaurants are flavor, consistency, reliability and accessibility; and the Australian companies for this kind of segment provide Icon, Ultra-premium, Super premium wines .
The value for the high-normal classes and normal-low classes who buy wine in the supermarkets are the good quality in relation with the price and the Australian companies for this segment has Premium and Basic wines .
British Traditional French wine drinker
Historically, the wine was a drink for the upper classes and the French and Mediterranean wines were introduced to British due to the package tour, they spent their holidays in the Mediterranean countries allowed people to experience the wine culture.
So, nowadays the French wine is considered by the customers a product with a high value because of the historical image of brand.
This fact produce the French wine drinker are people with good income who like going to prestigious restaurant although it would change in the future, giving an opportunity for the wines that don' t have a historical image of brand.
Why did the new wine drinker segment appear
In this aspect we can say that in the past people who drank wine had good income and were well educated (upper classes) but nowadays more and more people is beginning to drink wine, instead of other kind of alcohol like beer. This is a change from non-wine consumers to wine consumers.
These new wine drinkers correspond to the normal-lower classes and they value the price of the wine, thanks to the new wine companies, like Australian wine companies they can get wine in the supermarkets with a good price, but of course there are more reasons of the presence of this new segment the increase of incomes (especially young people) and the increase of spending on eating out and entertaining. They don't drink wine daily but at least they sometimes drink.
There is another segment of people who have changed their behavior of the consumption of the wine from special occasion to "everyday". For example, the regular customers of UK who drink Australian wine have between 5-55, tertiary educated, office workers or managerial and 55% are male but also there have been an increase of females and both enjoy dinning at home .
So we can say that the involvement of global companies like Australian wine companies can respond to changing the customer preferences.
And particularly in the case of Australian wine, that's quality and branded wine, and it also has good price and it uses a collaborative promotional program in target export market (trade fairs, customers and trade tasting) that produces an added value by promoting an image of Australia as a diverse source of quality wine at competitive world prices.
French defence
"But the French are fighting back. Most obviously - and least usefully - they are spending millions of euros on less than subtle advertising. More helpfully, increasingly liberal laws relating to the styles and labelling of wines such as Vin de Pays dOc are allowing producers to compete on more level terms with the New World. A few reliable brands such as the Dourthe No1 red and white Bordeaux, are beginning to make their recognisable way onto the shelves. Getting producers to make more consistently appealing wines is a tricky job - especially when so much French wine is produced in poorly run, politically featherbedded cooperatives - but the progress that is being made is dramatic. Improved skills and new equipment are helping to raise the average quality of wines such as C tes du Rh ne every year - irrespective of the quality of the vintage. Labels are becoming more explanatory and more stylish, and the range of flavours on offer - especially the varietal Vins de Pays dOc - is growing" .
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RECOMMENDATIONS FOR AUSTRALIAN WINE
- They could invest more in the quality of the wine in order to be perceived as product with a high value by the upper classes in U.K.
- They could promote more the wine as a product with health benefits comparing with other alcoholic drinks and in small quantities in order to increase the consumption by the normal classes and occasional wine consumers in UK.
- Increase of the retail by consolidating the channels of distributions in order to guarantee consumption by normal-low classes and non-wine consumers in U.K.
- Increase the consumption of the wine in other countries as Japan or Canada with a strategy campaign of promotion based in the quality and the health benefits of the wine.
- Increase the consumption by young people and be perceived as a fashionable product by using tools of marketing.
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