Table of Contents
Executive Summary 2
Sweet Pea Wine 4
History 4
Domestic Market Finances 5
Natural Environment 7
Demographic Environment 7
Sociocultural Environment 8
Economic Environment 11
Political Environment 12
Legal Environment 13
Competitive Environment 14
Ethical Environment 15
Science/Technology Environment 19
Energy Environment 20
Entry Strategies 22
Market Placement Strategies 24
Distribution Strategies 26
Promotional Strategies 28
Pricing Strategies 31
Payment Plan 31
After Sales Service 32
Customer Relationship Management 34
E-Marketing 36
Social Media Marketing 37
Financial Analysis 37
Conclusion 39
Executive Summary
After examining each of environments of New Zealand, the comparative balance sheet and income statement of Precept Wine we can make an informed decision that exporting to New Zealand will be a wise business decision. Each environment is conducive to the wine industry and would allow us to directly export our wine.
Sweet Pea Wine
Sweet Pea Wines are produced at the Sweet Pea Winery in Mattawa, Washington. Using only the freshest and sweetest Washington apples. The apple wine comes in several flavors including peach, blackberry, and strawberry. Sweet Pea wine is now owned by the wine conglomerate, Precept Wine.
History
Precept Wine is the largest, privately owned wine company in the Northwest with over 35 different types of wine, Sweet Pea being just one of those. The Baty Family acquired Columbia Winery in 1980, and then until 2002 they grew their portfolio of wineries before they launched Precept Wine in 2003 with Andrew Browne. Between 2003 and 2013 Precept Wine acquired over 30 different wineries to become the largest privately owned wine company in the Pacific Northwest. Andrew Browne now is the President and CEO of Precept Wines and continues to grow the company with new acquisitions each year. Precept Wine focuses their acquisitions on wineries in the regions of Washington, Oregon, and Idaho, where they believe some of the best wines in the world can be made due to the perfect growing environment. 1
Domestic Market Finances
Based off Precept Wine’s Income Statement and Balance sheet they are seeing successful growth with all 35 wine brands. Unfortunately, because Precept Wine is a private company, it was not possible to find any information of Sweet Pea Wine individually, but based off the success of the company, and the availability of Sweet Pea wine in stores, it is believed that Sweet Pea Wine is also very successful in the domestic market. According to the Comparative Income Statement, Precept Wine has seen a Cumulative growth of Gross Profit at 14% over the past 3 years, as well as 13% growth in Net Income. Their balance sheet is also promising showing a huge increase in Net Tangible assets from Dec. 2011 where New Tangible Assets was only $3,029,000 and most presently in Dec. 2013 Net Tangible Assets was 178,256,000. This could be accredited to the decrease in total liabilities.
Natural Environment
New Zealand is an Archipelago located in the Pacific Ocean, southeast of Australia, consisting of two main islands, and many other smaller islands. Although it is a small country with a land area of only 268,000 square kilometers, it has a very diverse natural environment consisting of mountains, rainforests, beaches, and plenty of plains. New Zealand can have strong westerly winds, and the coastal climates remain mild throughout the year, whereas the inlands can be much cooler in the winter months, this is opposite to the northern hemisphere (winter is July and August). New Zealand also gets a lot of rain throughout the year, and has many rivers and streams. 2
Demographic Environment
The history of New Zealand's people stems from the rural life in early New Zealand, which led to the image of New Zealanders being rugged, industrious, and problem solvers. The population of New Zealand is approximately 4.5 million people. 72 percent of the population lives in 16
