In 1995, Mr. David Walsh acquired the Moorilla Estate in Hobart. By 2005, the business had incorporated iconic brands such as "The Source Restaurant" and "Moo Brew" as part the suite of offerings. By 2012, the range of product offerings will have expanded further to include the exclusive "Pavilion Apartments," greater wine making capacity, the avant-garde MONA FOMA festival, and the flagship MONA private art museum.
As a winery, Moorilla winery has one of the oldest vineyards in the state, and a new winery has just established on the Moorilla site. We produce cool-climate wines. The fruit is grown in our Tamar and Derwent Valley vineyards. It new winery focuses on a much smaller and very high quality output. It uses gravity-flow to make boutique, ultra-premium wines. And they use estate fruit that is grown in a sustainable manner, with organic and bio-dynamic techniques. The main approach of the Moorilla winery is to combine the best of old and new world techniques, and make complex and structural varietal wines that represent the vineyard from which they came. Moorilla Refined wines are produced at Mona on the banks of the Derwent River near Hobart. The 3.5 ha site is Tasmania's oldest contemporary vineyard and celebrated 50 years of vintage in 2012.
Moorilla has two wine styles: The Muse Series focuses on complexity and employs traditional techniques for a more traditional result. The Praxis Series shows traits typical of new-world winemaking.
2. Situation analysis
Despite Australia's export success over the past two decades, the domestic wine market is still the largest for sales of Australian-produced wine, accounting for 37% of volume and 43% of value. Wine and Ready-to-Drink products (RTDs) are a distant equal second, each with a 16% volume share, but wine has 25% of the share of the value. Australian wine consumption has steadily increased over the past decade but at a lower rate than production. Over the five-year period to 2007-08, consumption grew at an annual compound growth rate of 3% compared to 5% for production. Average wine consumption per person in Australia is 20.8 litres per year.
New winery focuses on smaller and very high quality-output, thus, consistent boutique and ultra-premium quality wine.
Local environment advantage ensures clean and green reputation
Unique combination of environmental friendly packaging and innovate product design.
Business diversification leads to great interaction between each department which attributes to company's development.
Unique organic and bio-dynamic techniques promote the complex and structural varietal wines.
Skilled and educated winemaker
Lack of investment on promotion activities leads low brand awareness of the wine sector.
Limited knowledge of consumer insights and drivers
Innovative packaging, combining the shape of normal bottled wine with the material of boxed wine.
With the increase of the environmental protection consciousness, the demand for environment friendly packaging/products is increasing.
The development of technology leads improvement in applying and delivering research.
Consumers expectation and profiles are changing in the modern society, thus tend to easy accept innovated product.
Modern science promotes the collaboration between health and wine.
As the developing of living condition, consumer perception of quality and value is increasing.
The increasingly vehement competition in the business world because of the appearance of globalization
The continued strength of the Australian dollar leads the difficulty of compete with international competitor.
High production but low consumption from worldwide.
Moorilla as a Tasmanian-based winery, has its unique landscape for producing wine. However, according to The Wine Industry (2011), there are 2,532 companies in Australia who commercially sell their wine, and over 200 of their vineyard are located in Tasmania. Milton is one of the Moorilla's local competitors, who have very similar competitive advantage. Miltion vineyard located Freycinet coast of Tasmania, the unique environment advantages lead Miltion's wine grapes are grown on free draining red loam liberally sprinkled with dolerite rocks. And Pinot Gris, Riesling, and Gewurztraminer are three mine series of product of Miltion. Not only local competitor, but from other part of Australia, such as Jacob's Creek Chardonnay, the most famous winery. In addition, though imports are still a minor share of wine sales in Australia, Australian consumers are displaying an increasing propensity to purchase imported wine. Across all the major importers of wine in 2005-06, the U.S.A. was the only country to decline in imports (Wine Australia, 2008).
There are four objectives that Moorilla winery needs to be achieved within the time period from January 2013 to December 2012:
Sales for both red and white wine increase 20% from a year earlier.
The number of red and white wine sold increase 30% from a year earlier.
Customer feedback from survey would be 95% replied.
Market share increase 10% from last year.
4. Marketing Strategy
4.1 Marketing segmentation
According to Iacobucci (2012), a market segment is that when facing the same brand, a group of consumers has similar purchasing habits. Demographic, geographic, psychological and behaviors are four bases for general segmentation. Moorilla would segment the overall consumption by combining demographic and psychological segmentation, especially based on the age, income, attitude, and knowledge and awareness. The population in worldwide is becoming better educated, according to the source from the Australian Bureau of Statistics, the number of Australians who have completing high school has increased significantly. According to Kolteret al (2006), rising number of educated people will increase the demand for quality product.
4.3 Target segment
Moorilla has great wine making capacity, and its products are middle-high class wine.Thus, Moorilla's segment is consumers around the age of 25 to 50 years old with experienced wine knowledge and quality wine awareness. Due to the increasing number of educated population, consumers at this age range are mostly educated. Consumers around age of 25 to 50 also have higher disposable income and living standards, and a more discernible taste in regards to wine. Thus, Moorilla's high quality wine would be more desirable for this group of people.
Due to the increase of the environmental protection consciousness, environmental friendly products are getting more and more popular. Moorilla's innovated package which is green-themed would satisfy this increased demand. Thereby, Moorilla's brand image would expand from artistic to sustainability and premium wine. Moreover, 'made from the freshes and purest rainwater' is always the company's slogan.
5. Marketing Programs
5.1 Marketing Mix
Promotion plays an important part in stimulating the demand as a company might aim more than one promotional goal (Pride et al., 2007). Different activities which a company organizes leads to various promotions. Moorilla would adopt an integrated marketing communications strategy.
The main objectives of W's promotion activities are increase the brand awareness and take wine market share. (SMART goals?). The first marketing tool Moorilla would use is advertising which is the main form of mass communication. Advertising is one of the best methods that company could use in purpose of communicating with large numbers of potential customers at the same time such as through newspapers, radio, TV or video sites such as You Tube (Quester et al., 2004). Because the target customers of Moorilla are consumers from age of 25 to 50, thus, the theme of the advertisement would highlight its environment protection, and meanwhile cater to this group people. Secondly, Moorilla would employ direct-response promotion, including Web sites and some other promotion activities through Internet such as pop-ups and banner advertisements. The web sites of W. would include more fancy and distinct factors to attract target customer. Specialist application program (APP) and multi-web links include Facebook, Twitter, YouTubeetc would be built up. Thirdly, the dramatic growth in sponsorship investment worldwide and it unique characteristics now make sponsorship a marketing communications method of its own (Quester et al., 2004). In order to increase the brand awareness, Moorilla could sponsors international or national events such as Tasmanian Test Festival.
Kotleret al. (2009) pointed out that product, price, and promotion could not complete a good marketing process picture. In order to make the product the right goods and services are available in the right quantities and at the right location when customers want the product, it is important for Moorilla to make an appropriate distribution strategy. Moorilla would adopt intensive distribution strategy which means W's wine would be widely distributed sold to as many appropriate retailers or wholesalers as possible. In addition, according to Ferrell and Hartline (2011), the use of multiple channels may arise out of necessity in order to meet customer needs or by design. In the modern society, electronic commerce is one of the most popular distribution channels that hundreds of companies adopt due to the rapid development of technology. In order to satisfy the market needs, Moorilla would corporate with Internet retailing as one important distribution channel. Using the Internet, a simply click from one web site to another; it would be possible for the consumer to access a widely or even unlimited assortment of consumer the product.