International Trade Research Project - Export of Merlot Cabernet Wine in Hong Kong and Switzerland

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                     INTERNATIONAL TRADE RESEARCH PROJECT

      Export of Merlot Cabernet wine in Hong Kong and Switzerland

TABLE OF CONTENT

1. Executive Summary ………………………………………………………        2
2. Research Plan ……………………………………………………………..        3

1. Key Strategic Research Objectives. ………………………………        3

1. Research Methodology …………………………………………………...        5

1. External environment aspects. …………………………………….5
2. Contour Scenario of Red wine in target countries…………………6
3. Competitor analysis. ………………………………………………6

1. Data Accuracy and Relevance ………………………………...………….        9
2. Unit of measurement ………………...……………………………………        9
3. Logic and Analysis ……………………………………………………….        10

1. External environment aspects. …………………………………….5
2. Contour Scenario of Red wine in target countries…………………6
3. Competitor analysis. ………………………………………………6

1. Market intelligence………………………………………………………..        20
2. Competitive Intelligence…………………………………………………..        20
3. Conclusion………………………………………………………………...        22
4. Action plan………………………………………………………………...        23

Bibliography……………………………………………………………………24

Executive Summary

Rathod Wines Ltd., a leading wine industry in Columbia seeking to expand their business in International market is looking forward to the 2 potential markets – Hong Kong & Switzerland. This research s to find better option in selected country on the basis of external environment, competitive intelligence and counter scenario of target market. Research has been performed on the basis of secondary data based on availability on internet, library and new peppers. Both countries have very close and competitive intelligence data. But considering latest happening in Hong Kong and some other factors we have concluded to opt Switzerland as the excellent future target market for us. We also suggested some action plan before starting our business in Switzerland having some primary research with country visit.

Thus, if Rathod Wines Ltd. take all the action plans in due considerations, it would yield a great business for them in Switzerland, proving the aforementioned conclusion of target market perfect in the true sense.

Research Plan:-

Rathod Wine Ltd. is one of the leading Wine Industry of British Columbia, established in 1989. It began to thrive in export business in 2001; the major export countries being U.S., China, Japan and France.

Taking into considerations the current market perspectives, supply chain scenarios as well as growing local market competition; Rathod Wine Ltd. is planning to expand its’ global business by entering into new potential markets.

Export Commodity: Red Wine (Merlot Cabernet)

Export Country: Canada (British Columbia)

Target Import Country Options:

• Hong Kong(Population: 7.19 million)

Only in recent years has grape wines become popular in Hong Kong. The government is attempting to develop a Wine trading Hub in Hong Kong- They have abolished 40% import taxes on Wine in February 2008, which uplifted the trading market at its pinnacle. Moreover, the exports in Hong Kong are mainly undertaken by only certain European Companies. So, Hong Kong is a perfect choice for exporting red wine. Apart from that; In Asian culture, Red color is believed to be the embodiment of good fortune, good luck as well as a high social status. It is also believed that two glasses of red wine per day is beneficial to health.

• Switzerland (Population:7.95 million)

Switzerland is one of the largest wine consuming countries in the world. Although it produces domestic wines, but specifically the Red wines are preferentially imported from other countries, taking cost factor into account. Swiss wines are expensive due to its unique taste. So, exporting Red wine to Switzerland is a good option.

Key Strategic Research Objectives:

• To study the external environment aspects like Political, Economic, Social and Legal factors pertaining to the target countries. These are the aspects which are not in the voluntary control of Rathod Wine Ltd. and henceforth the company is supposed to get aligned to them accordingly.
• To determine the overall scenario of the Red Wine in target countries.
• Competitor analysis:

• Look for the market with less competition where a reputed brand image could be set.
• Identify the pros and cons of local competitors in Hong Kong & Switzerland and thereby implement competitive advantage strategies accordingly.

By achieving the aforementioned objectives Rathod Wine Ltd. would be able to select one of the two potential markets for its business. Furthermore, a way towards its International business expansion as well as International brand recognition would be cleared.

Research Methodology

The main sources of data collection for the project is Secondary online sources. The information would be inclusive of both qualitative as well as quantitative data. Qualitative abstracts would be mainly useful to contrast the external environment features between Switzerland & Hong Kong; whereas, Quantitative data would compare facts & figures reflecting the size of the market and the cost parameters between them.

1.   External environment aspects

• Key information required

• Qualitative

Political: -        Current happening in both the countries

             Political stability of both the countries