The confederation of wine producers from Rhone and Loire Valleys has asked our consultancy to study the possibility to expand Beaujolais Nouveau sales in China.
According to our study, we have determined Shanghai as the best place in China to launch this kind of French wine. This city symbolizes the Chinese gate for the western world.
This study will start with a brief explanation about China. Secondly, we will discuss about the Market that we are planning to enter: the beverages market and especially the wines one. Then, we will explain the Beaujolais Nouveau. Finally, we will explain the business plan with the income statement and our recommendations.
[...] The ad will be in Mandarin because it's the national language and because it is understood by all the regions in China and the total length is of 20 seconds. 1st scene: 3 seconds The camera is capturing Maggie Cheung well-dressed as a fashion Parisian woman, who is walking on the street wearing black sunglasses. Suddenly she hears a hubbub coming from a bar; she takes off her sunglasses and sees people standing outside holding a glass of red wine and asking her to join them. [...]
[...] The main wine exporters in China are Chile, France, Spain, Italy, Australia and USA. Chile is the leading exporter of bulk wine in China. Bulk wine imports are superior to still wine imports as most of the domestic brands mix it with the local wines. France is the leader in exporting still wines in China, in terms of volume and sales, followed by Australia and the USA. Bargaining Power of suppliers In China, France represents the country of long history and culture of wine, and “Bordeaux” is certainly the most famous name known by the Chinese wine consumers. [...]
[...] China is the world's ninth largest consumer of cognac with 2.28 million bottles sold in 2003. Cognac still reflects wealth in China. There are other Chinese alcoholic beverages which are just expensive as cognac, but Chinese consumers still prefer cognac, especially as gifts. In addition, because of its long presence in China, when people think about a refined and elegant imported product they always consider cognac. In the most luxurious hotels, restaurants and bars in most Chinese cities, renowned cognac brands such as Remy Martin, Martell, and Hennessy are well- represented. [...]
[...] That's why on the first year in 2005 we advise to sale the bottle of Beaujolais Nouveau (0,75l) 15.99 USD. We situated our product as a high range wine but not as another excellent French wine which cost around 20 USD USD is an adjustment to help sales. For 2006, we plan to increase the prices of 30 cents, so the price will be 16.19 USD. In 2007, we will increase the price to 16.49 USD. For Olympic Games of 2008, there will be a general increase of the prices. [...]
[...] The imported wines The imports In 2000, Spain was the most important foreign wine supplier (bulk wines, still wines and sparkling wines) in china but had suddenly reduced its exportations. As a result, in 2002, Chile became the first wine-exporting country in China followed by France in the second position and Argentina in the third position. In 2002, the imports of wine in china represented 23 millions of US dollars; China's entry into the WTO should enable a revival for foreign wine importing. [...]
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