Report on Marketing plan
This report is prepared by the Marketing Department of Tokaji-China Ltd. The company intends to export Tokaji wine from Hungary to China and open its retail stores in different cities of China. The purpose of writing this report is to demonstrate a detailed marketing plan on how the Chinese market is being explored and what are the strategies, techniques will be used. The marketing plan was prepared according to the study of the Chinese market in alcohol, and moreover the knowledge of Chinese culture, tradition and people.
Chinese market in alcoholic beverage
China is a large and fast economic growing country. More and more companies move its business to China, here including the wine industry. Chinese wine market is huge and still growing, it has great potentials. Along with the economy growth, people's living standard improves, more and more people like drinking wine. Every year the sales of wine are growing even during the world economic crisis. As the traditional alcohol in China is distilled liquor, wine market is still very pre-matured in China; the wine choice is very limited. Some of the well-known wines are from Italy and France, with high prices. Our companies' aim is to introduce a high class wine, Tokaji to Chinese people and with its fair prices.
Tokaji wine comes from the Region Tokaj in Hungary. Its history can be dated back to 1500. Similar to other high quality wines, Tokaji is made by grapes that are affected by noble rot and they are called Aszu. These Aszu will be put into the traditional 'puttony' for further ferment. The more 'puttony is being used for making one wine; the higher quality and sweeter the wine is going to be. Usually, the number of 'puttony' is between the ranges from 3 to 6. Tokaji wine with 6 puttony is very high quality and special and of course expensive, but normally 5 puttony wines are the most common ones in the market.
Firstly, the company plans to open set up retail stores in larger cities of China. The head-quarter will be in Shanghai and subsequently, stores will open in Beijing, Tianjing, Shanghai, Shenzheng and Hong Kong. There are several reasons that these cities are being considered as a start. Firstly, these are large, international cities in China with significant number of population. Secondly, all the five cities are near to sea port, which will make the transportation much easier, as the company will use sea transportation. Lastly, the citizens here are with high income and living standard.
The company will use three methods to promote its product. First of all we will use different ways of advertisement and we are planning to advertise on TV, billboards, in fashion and food magazines. Then, we are going to set up different sales points in crowded streets, supermarkets and malls for people to free sampling the Tokaji wine and they can buy the wine at the spots. Lastly, during our promotion period, that is going to be the first month, any customer who purchases a bottle of Tokaji wine from any of our stores, sales points will get a free wine glass as a gift and also can win a prize, which will be two airplane tickets to Hungary with full catering. Last but not least, we will have our own designed website (www.tokajichina.com), where customers can get to know about our company and products in a more convenient way.
The price for Tokaji wine varies according to its age and quality. It will range from 60 RMB to 300 RMB, which is equal to approximately 6 euro to 30 euro. The price is based on the market research on wine price in Chinese market and in addition, it is decided according to quality and wine age. For promotion purpose, even though, we are retail stores, if customers wish to buy Tokaji in large qualities, the company will be able to provide special offers on the price.
In our advertising campaign, in general, the targeting group is people above 18. However, to be more precise, our main, focusing targeting groups is the people in middle and high classes. Basically, our targeting objects are middle-aged people with stable, good income and education background. As they have stable job and payment, they will have the ability to purchase, and moreover, as Tokaji wine is a relatively new product in China, people with knowledge, will be more easier to convince that Tokaji wines is just as good as for example a French wine and we offer them at much better prices.
The marketing plan is prepared on order to satisfy the Chinese market and its consumers. We can see that, the Chinese wine market has demand and the supply is far from enough. In order to conquer the Chinese market successfully, we used marketing 4 Ps to explore it. Every P is worked out very precisely. First P, the plan talks about the actual product in relatively details. Second P, the various retail store locations are being selected with a lot of consideration and great care. Then the third P, the different ways to promote, advertise, to make as many people as possible to get to know about our product and lastly, the fourth P, we fixed the price within the acceptable price range to the customers.
We strongly believe that our marketing plan will be successful and so does our business. The company sees the Chinese market as with high potentials and lots opportunities. Moreover, in recent years, it becomes a high trend to enter the Chinese market, more and more international firms move to China. We are very positive about the company's decision to enter the Chinese market and it will bring prosperity to the company.