Marketing Plan of Export Brown

Marketing Plan of Export Brown Brother Red Wine to Canada There are going to be two different Brown Brother red wines that will be exported to Canada to include: Cabernet Sauvignon and Patricia Cabernet Sauvignon. To determine the underlying profit margin from this kind of a venture requires: examining the budget and control for the project. Together, these different elements will provide the greatest insights, as to the underlying profit margins of engaging in these kinds of transaction.

Budget To determine the overall profit margin, means that we must examine the budget. This will be accomplished by using the basic formula list below. Revenues = Selling Price x Units -- Cost Price x Units When you apply this formula to the first wine that is going to be exported (Cabernet Sauvignon) the total revenues are $6,000.00. Below are the different calculations: Revenues = $16.00 x 10,000 -- $10.00 x 10,000 = $6,000.00 ("Cabernet Sauvignon," 2011) The overall revenues for the Patricia Cabernet Sauvignon are $38,000.00. Below are calculations for the profits on this product.

Revenues = $48.00 x 10,000 - $10.00 x 10,000 = $38,000.00 ("Patricia Cabernet Sauvignon," 2011) The table highlights the revenues in comparison with the prices and costs for both wines. Prices and Costs for Cabernet Sauvignon and Patricia Cabernet Sauvignon Product Retail Price Costs Revenues C Sauvignon $16.00 ($16,000.00) $10.00 ($10,000.00) $6.60 ($6,600.00) P Cabernet Sauvignon $48.00 (48,000.00) $10.00 ($10,000.00) $38.00 ($38,000.00) When you analyze the table, the total profits of exporting the Cabernet Sauvignon to Canada would be: approximately $6,600.00. While the Patricia Cabernet Sauvignon, would produce revenues of: $38,000.00. The average retail price per unit was used, to determine what the product will sell for.

While the costs for delivering the product was estimated. These different elements are important, because they can provide a conservative assessment of the overall costs associated with importing wine to Canada. Control The sale of wine is dependent upon: weather conditions, fluctuating currencies and fuel costs. These three factors are important, because they will have a dramatic impact upon the underlying profit margins.

Evidence of this can be seen by looking no further than a report that was published by FM Magazine, which found that the wholesale costs of wine have increase by 20% since 2003. This is because, these factors and a push from real estate developers, to purchase many wine farms (for their land value). Over the course of time, this has caused the price of wine to increase. As a result, we more than likely will see similar challenges, with any exports that are sent to Canada.

(Stafford, 2010) The use of intermediaries would play a major role in helping to lower cost of shipping the wine. This is because, they would know the best procedures for: exporting the wine and possible ways to reduce trade barriers. For example, a cost effective way to reduce duty is by shipping the wine through the United States. This is because Australia has free trade agreement with the U.S. As a result, the wine could enter the U.S.

(duty free) and then could be transported to Canada (under the North American Free Trade Agreement). In order to determine if this is: feasible and to find the quickest routes requires using various third party intermediaries. They could reduce the time and the costs involved in exporting the wine (based on their experience).

("Australia United States Free Trade Agreement," 2011) As far as the marketer's overall control is concerned, these forces will depend upon: weather conditions and the underlying costs of shipping the product to stores, in this case, these factors are difficult to control, as the costs have been consistently rising thanks to: fluctuating currencies and volatile fuel prices. This is problematic because, it gives marketers little control over control these variables, which will have a negative impact upon their overall bottom line.

At which point, they will be subject to the changes that are taking place in the market. Clearly, the profit margins of exporting Cabernet Sauvignon and Patricia Cabernet Sauvignon to Canada can be beneficial. Using the two examples that were examined (which is based upon 10,000 units) the revenues will be: $6,000.00 (for Cabernet Sauvignon) and $38,000.00 (for Patricia Cabernet Sauvignon). This is important, because it shows how there is ability to see significant profit potential, from exporting these two wines. However, there are a.