The New Australian Company is a new red wine brand that will be introduced in Singapore. The brand is a unique and high quality red wine brand that meets the growing preference of consumers. It will be distributed to several hotels, restaurants, supermarkets, and wine boutiques/shops that are located in the commercial business districts of the city-state.
The brand is managed and owned by a group of wine-lover businessmen who have tremendous experienced in business administration, marketing and sales management and customer service. The owners are now looking for additional investments in order to capitalize the project well. The company has already made several ...view middle of the document...
210). Australian wines are one of the best and finest wines in the global market, and Singapore is the most suitable market for these wines. Singapore’s demand of red wines is increasing because of wide millennial population base, growing expatriates/tourists, increasing individual income and knowledgeable consumers that are aware of red wine benefits. Furthermore, the market is now looking for new and sophisticated taste of wine that is completely different from French old wines. The market barriers have not prevented the New Australian Company to distribute red wines to Singapore. For them, the market is still open for business players and become a great brand. This may sound a bold attempt considering that the company is a new entrant in the market, but because of its top notch suppliers it is confident to compete with well-established competitors.
The main trust of this paper is to put a business plan about exporting red wine to Singapore from Australia.
2. The Business Concept/Opportunity
2.1 Advantage Underlying the Opportunity. Singapore is one of the top export markets for Australian companies; thus, expanding in Singapore is a good business idea. “Australians are advantaged in doing business in Singapore because of close proximity, similar time zones, strong Australian reputation and SAFTA has guaranteed a more open and transparent environment” (“Singapore profile,” 2011, para. 10). One of the top export products from Australia to Singapore is the production of wine which continued to grow despite economic recession. This business venture will be successful because “Singapore is a very high-value wine market” (Corra, 2007, p. 5).
2.2 Potential Target Market Size. The primary consumers of the wine industry are the young generation or the millennial which is 77% of Singapore’s population. The age structure of the customer base is under the age bracket of 15 and above, and mostly coming from the median to upper income group because red wine in Singapore is a luxury good (Ng, 2011). Furthermore, based on the study forecast, “3.75 million Singaporeans of legal drinking age [18 years old] reached per capita consumption of 1.9 liters in 2008. They are expected to increase this to 2.3 liters by 2013” (Vinexpo, 2010). Furthermore, according to New Zealand Trade & Enterprise (2009), “...the local wine consumers [in Singapore] is mostly Chinese, aged from 25 to 50 years. More men than women are wine drinkers with the ratio of being some 55-70 percent men to between 30-45 percent women” (p. 4). Chinese and Indians are the dominant ethnic customers in Singapore’s wine industry while Malays are forbidden to drink alcoholic beverages...