Question
Scott Henry is an owner of the Henry Estate winery in the U.S. state of Oregon. Henry wanted to enter the Chinese market, believing there
Scott Henry is an owner of the Henry Estate winery in the U.S. state of
Oregon. Henry wanted to enter the Chinese market, believing there were
many potential wine drinkers in China who would love his pinot noir. He
knew that most Chinese people were unfamiliar with Western-style wine,
but believed the taste and texture of Henry Estate's pinot noir was a
perfect match for Chinese cuisine. The winery was an experienced
exporter-it had ten years of experience shipping wine to Canada, the
U.K. and Japan. So, the marketing director had labels for 700 cases of
wine along with marketing materials translated into Mandarin and then
shipped to a distributor in Portland, Oregon, with contacts in China. Four
months after the first shipment of 700 cases arrived in China, little of it
had sold. The Portland distributor and the winery's marketing director
travelled to China to find out why. They learned that most people in China
knew very little about wine, including the local distributors, retailers and
consumers. They also discovered that the USD 62 per bottle wine was
being sold in retail outlets that resembled convenience stores.what
concerns and suggestions do you have about the winery's entry into the
Chinese market? What actions do you hope the distributor or marketing
director took while in China to learn more about their customers and
improve sales?
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