Weaknesses: Possible discrepancies between American and Canadian definitions of 'organic' may cause concerns. Then too, there is the reluctance of Canadian winemakers to allow alien influences to penetrate their market. Their aptitude in aggressively marketing themselves against current imports may pose challenges to Kudler.
As regards Italy, current economic difficulties cause the Italian population to prefer discount stores and cheaper food. Similarly too, the Italian retail market and European Union competitors may be unwelcoming to an American competitor that is attempting to enter their field.
Opportunities: There is an explosion in the demand for organic food. The Canadian wine market is still experimenting with its wine tastes, and is still in the process of emerging. Kudler, with its distinctive Californian wines, can make an impression on shaping the Canadian taste profile for wines. Similarly, too, with the Italian market: the Californian wines can carve their own distinctive niche in the market, aside from the fact that as part of long-term plans, the Italian inclination towards gourmet food would readily be inclined towards reasonably priced gourmet American products, particularly with the death of competitors in this niche market.
Threats: In Canada, beers, other spirits, and Canadian ice wines might rival Kudler. Kudler has the distinction of offering the 'organic' brand, but even with their brand missing, these wines have the sustainability and marketing advantage of being positioned as more local. The Italian threats consist of disinterest in local consumption of wine, a greater interest in discount stores than in specialized food products, possible interference from homegrown industries, and from European and Italian self-reliance and competitiveness.
The Competition
There are several renowned organic wine companies in Canada many of them licensed and nationally and internationally reputed (Wines of Canada [online]). These include the famous Summerhill Estates; Rollingdale Winery; Frogpond Farm; Forbidden Fruits Winery; Working horse Winery, and L'Ascadie Vineyards. Produce of these wineries is distributed throughout Canada, and is well reputed.
In Italy, although the government regulates the labeling, distribution and sale of food items as in any other country, the Italian government limits interference in the food industry, and this trend is expected to continue at least in the near future (Alvin, 2010). This is a state of affairs that's promising to Kudler.
On the other hand, legal entities and agencies in the European Union that influence and affect the Italian retail grocery market, as well as general European economic cooperation polices and tendencies may hinder Kudler and its absorption in the stream, particularly since Kudler is an American competitor (Alvin, 2010; Aruvian, 2010).
Italian exports are massive. BioFair is an annual organic event that draws millions of spectators and hosts producers from all over the world. In 2009, 318 BioFair exhibitors produced their organic winemaking results in Nuremberg, and the largest representation was from Italy with 94 exhibitors (Petzold, n.d.). For Kudler to succeed, it has to acquire a niche amongst these 94 and more exhibitors.
Marketing objectives and marketing strategy
The marketing objectives are to slant the wine towards that country's specific cultural appeal and needs and towards its targeted sector. To that end, Kudler Fine Foods will employ Italian and Canadian personnel throughout its store operation; both in customer services but also in high-level managerial and operations positions in order to meet customer expectations. (Alvin, 2010; Datamonitor, 2010). Kudler will train itself in acquiring a knowledge of the Italian and Canadian culture in order to achieve the required ability to foster diversity and respect for this diversity, as well as facility in being able to passionately and rationally engage in decision-making with its multicultural partners. The emphasis here will be on hiring and cultivating the right individuals for such tasks and promulgating this respectful end diversified atmosphere throughout its store.
Kudler can also employ reputable wine critics to taste the wine. A few independent accolades and write-ups about its wine would go far, in each particularly country, according Kudler's wines publicity.
The labels of the wine, created in the country's specific language (most specially when pertaining to Italy, in Italian) will be designed so as to display that required information. The graphic design to of the label will have to be slanted to the country's specific appeal. In Canada, for instance, the organic appeal would be accentuated, whereas in Italy, it might be the connoisseur aspect of the item.
Pricing
Kudler could use penetration pricing in Italy. This is because the market is already glutted with competitors,...
Moreover, Californian organic wine is already cheaper than the regular organic wine to begin with.
Marketing communication (including public relations)
Successful marketing communication relies on a multi-faceted promotional mix that consists of sales promotion, public relations, direct marketing, and personal selling.
The internet is also a powerful tool.
Kudler would certainly have to employ the push strategy in Italy and, to a great extent, in Canada too, at least in the beginning. Once Kudler becomes more accepted in Canada, the push strategy would, likely, be replaced by the pull straetgy where consumer demand would create request for the product (Arens, 1998)
Marketing activities are centered around three distinct channels: and each must be acutely refined in order for Kudler to achieve the maximum benefit from marketing activities and to ensure the long-term viability of its business organization. These three channels are: the sales channel, the product channel, and the service channel (Kwik, 2009).
As per its domestic operations, Kudler will continue to ensure that its companies maintain professional public reputations in terms of operations and marketing. These will assist facilitation of the product and sales channel (Kwik, 209). Differentiating products and product images is the key to Kudler's success.
As per the service channel, Kudler's domestic and international endeavors will be to place an emphasis on quality of its produce. Specialization being the key to success in higher -- end niche markets (Kwik, 2009), these qualities will be the key differentiator for the Kudler brand. The challenge here is to reposition oneself so as to stand out from the competition and to find a niche market.
Kudler can also distinguish itself by accentuating its gourmet niche, namely showing customers how to prepare, taste, sample, and serve their own wine. To Italians this would have an appeal due to their cultural interest in food and food preparation. To Canadians, this would have an appeal due to their particular interest in healthy food preparation and cooking, and in creating a healthy gourmet lifestyle.
Distribution strategy (domestic and international market entry) Canada and Italy
As a foreign company, moreover, Kudler will have to indicate that it abides by various regulations in order to woo distributors to its cause. These include a separate license in order to be able to distribute the wine to retailers (in the case of Italy) or to consumers (in the case of both Italy and Canada). Kudler is advised, too, to investigate the rules of both countries in order to ascertain that their permit can be used carteblanche throughout the country. There are countries (such as America) where a separate license is needed per each state, and where the proprietor, too, has to apply for a permit from the city government. Kudler is advised to implement all this research in order to set its distribution network into place (Wagner, 3/24/2009) .
To promote its niche market, Kudler needs a multi-tiered motivated distribution channel. To that end, therefore, both Kudler winery sales manager and distribution sales management team are advised to work out specific long-range goals and to divide these goals into shorter term specific phases. Performance parameters should be established too.
Distribution depends on where Kudler is located in each specific country and, of course, depends on its goals in that specific country. It would be best, therefore, that Kudler strike up an excellent relationship with its distribution team, since the team is an intricate component to its success. Once that is accomplished in the manner recommended above, Kudler can then format its plan according to the conditions determined by the particular targeted country (Think wine marketing, 2009).
Financial information (a budget showing product launch expenses and a unit forecast by quarter for 3 years)
This is difficult to forecast since the costs, obviously, vary according to each country, where, for instance labor costs and licenses and permits would be cheaper in one nation than in another. The main expenses here with an estimate of their parallel cost in the U.S.A. As of the year 2011 include:
Operating expenses
Licenses and permits $8,200
Systems & network contract $10,975
HR Payroll Outsource…
