Product Launch Plan for Two

¶ … product launch plan for two markets (domestic and international): Canada and Italy. Kudler Fine Foods started in California, in1998, by Kathy Kudler with the intent of supplying high-end diversity gourmet items at reasonable prices. It has already expanded to four stores and is considering international expansion. Specifically, Kudler's Fine Foods is considering a move into the Canadian and Italian retail grocery market, in both cases targeting these markets with their high quality organic wines.

Italy, whose culture is well versed in gourmet foods, is likely to be interested by this new entrant. Cultural differences in both countries might pose challenges, but with details carefully and meticulously worked out in the product plan, there is reason for optimism regarding the profitability of Kudler's entrance into both the Italian and Canadian grocery market. The objective of this product launch plan is to delineate the plans for Kudler's domestic development.

Product description: Organic wines Kudler's reputation is associated with its world-class wines, gourmet meats, and other select grocery items. Its American brand of wine has a distinct, yet uniquely Californian brand that differs in taste and form from the wines produced by other countries. The advantage with Californian wine, is that whilst organic wine, given its advantages usually ranges from $20 upwards (compared to the regular wine that ranges from a few bucks to hundreds of dollars), California organic wine is usually cheaper, particularly the green brands (Liebert, 2001).

According to Kudler, their wines are an aggregation of specialized and top-notch domestic and international products that have been rated so by discerning connoisseurs. Kudler's also carries a wide variety of spirits at reasonable prices. (for more details see Kudler Fine Foods; Wine at http://kudlerfinefoods.info/our-products/wine/). Product Positioning In both countries, Kudler will position itself as a niche market that specializes in a Californian homegrown, distinct wine. "International demand for California wines continues to grow rapidly.

In almost 20 years," according to California wines (Eco-friendly, 2005), "exports have increased from $35 million in 1985 to a record $808 million in 2004. This is an average increase of almost 20% per year." This accessibility can be used to Kudler's advantage in both countries. California organic wines are particularly in demand since they are cheaper than regular organic wines. This is particularly so with the green brand. More so, California wines are more accessible, since they are produced in plentiful supply (Liebert, 2001) In Canada, the focus will be on its organic appeal.

Canadians are enthused with organic food to an even greater extent than Americans are. Kudler, therefore, will position itself as a 100% organic wine producer. This is particularly important since Canada had strict standards about what constitutes organic wine, and Kudler will have to cohere closely to its rules in order to be accepted (CBC, 2009). In Italy, the product positioning will be on the American niche of the wine.

As yet mostly Italian wines are being exported, and most of these are in the category of sparkling and distinctly Italian taste and form. Italian exports, although once producing 30% of that input of the massive export of wines produced by the European Union, has now decreased to 25%, although its wine export is still on the rise (Export.By (n.d)).

Since Kudler features a different brand and taste, Kudler can appeal to Italian interest in increasing Italian winery exportation by indicating that it can include a purely American brand -- a different taste and caliber -- into the Italian export market. Local consumption may have decreased, but Kudler, by entering the market, may be able to capture something of that export share whilst still profiting from local consumption.

It is to this reputation of Italian production in wine that Kudler, with attention on organic wine specialties, will aim to target itself. Targeting Kudler will target itself to two different markets in Canada and in Italy. In Canada, Kudler will, primarily, target itself to the youth followed by the younger middle-aged and elderly population. Gatehouse (2009) reports Canada as being the third 'hottest' wine consuming country with consumption up to almost 27 per cent in four years.

The most preferred wine is red, with the wine brand rose being a winner: "In the old days, you looked stupid drinking rose. It was only for people who knew nothing about wine," he says. "But now the attitude has changed. Younger people find it easy and fun. The kind of thing you might have at the disco.." Apparently the market seems to stem from more wealthy people, immigrants (although not necessarily), and the young (college aged).

And another fact that Kudler should consider: the majority of Canadian prefers the less sophisticated vintage to the more sophisticated brands. (Gatehouse, 2009). In Italy, Kudler will target itself to the export market. Here it will be to the retail and discount stores and to wholesale grapes and wine shipment distributors. Targeting these companies will be a whole issue unto itself, and part of this will be worked out in the 'distributuion' segment.

Market Needs Enthusiasm over organic foods is on the rise, as fears over pesticides and concerns about sustainability have driven consumers to go organic. This is specifically so in Canada where "Organic food is a booming business & #8230; with sales reportedly rising by 20% a year for most of this decade. The market has grown so quickly that major supermarket chains are having difficulty keeping up with the demand" (CBC, 2009). Whilst Canada has native wine producers, its wineries fulfill only a fraction of the growing demand for the beverage.

In this way, Kudler, already accepted by Canadian standards for its organic trademark, can supply a Canadian national need for its organic wine. Moreover, according to a report issued by a Canadian winemaking association, Canadian wine imports and exports has focused on marketing the region's ice wines (O'Dell, 2009). Kudler can step in by promoting its California-based wine that possesses a distinct flavor thus filling a gap in a market that already prizes organic wine.

As regards the need in the Italian market: Italian export of wine, always strong, has, in the last few year with the troubling economy, somewhat lessened. Italy's reputation as a wine-producing country is incorrigible. Although local consumption of wine is weak, it would certainly welcome support in increasing its wine exports and Kudler with its quality organic wine, a brand different to that of the regular Italian merchandise -- can step in with its American products.

Market potential and market growth Italy shows a pronounced tendency to appreciate food and beverage (Datamonitor, 2010), but even though it has demonstrated a current growth in preference for discount items and retail chains (Aruvian, 2010; Datamonitor, 2010), Kudler may have an advantage in being a niche market that can profitably expand itself through proper branding and marketing efforts (Alvin, 2010).

This is particularly so since, with a market glutted with millions of consumers, Kudler fills a niche market with its desired high-end gourmet items at reasonable prices to a culture that appreciates gourmet foods. More so, there are certain geographic areas that possess utter lack of gourmet service, and Kudler can fill that gap with its reasonably priced gourmet foods. In fact, it is precisely this perception of scarcity that can be advantageous to the company (Alvin, 2010; Datamontior, 2010).

Even if there is little local interest in Kudler beverages, Kudler can still find opportunity in the export field. This is particularly so given the fact that Kudler intends to make its entry with its Californian-based wine, and being that Italy is a wine-productive country and seeking to increase its exports this would make it more than welcoming to anyone who will help them increase their local wine exportation. Kudler can use this to its advantage.

In Canada, the market potential is clear: There is an attraction towards organic food, and Canada, known as the wine country, has always liked wine. In fact, according to Gatehouse (2009), Canada is the third 'hottest' wine consuming country with consumption up to almost 27 per cent in four years. Canadians, too have their distinct type of wine.

Kudler integrates the Canadian preferences towards organic and beverage in one product, and, being that Californian organic wine is particularly cheap this should be a great selling factor, particularly since it is the Canadian youth that are one of the largest wine purchasers in the country. Company SWOT analysis (include analysis from both countries chosen) Canada and Italy Strengths: Kudler Fine Foods possesses a reputation for producing high-end diversity gourmet items at reasonable prices.

It can meet the Canadian demand for organic quality goods, and this demand exists on a level even higher than in the U.S. Of benefit to Kudler, is the fact that there has been a greater congruence of the Canadian with the American national standard which has resulted in greater acceptance of American wines. There is a high demand in Canada, in general, for wine. Californian organic wine, moreover, is cheaper than organic wine produced by other states and by other countries.

As regards its advantages in the Italian market -- the Italian culture places a rich emphasis on food and wine, is interested in expanding its export business, and with a reputable wine export business flourishing in Italy, Kudler can gain a foothold with its own wine products. 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, and in order to get a foothold into this market, Kudler would be recommended to set an initially lower entry price often lower than the average market price in order to attract interest.

In Canada, the pricing strategy that Kudler could use is competition-based pricing, since Kudler, as Californian product, and in a market that is attracted to organic products as well as to wine would have less difficulty than it has in Italy in appealing to local taste and in penetrating the market. 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.