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International Business

Croitor Tudor
Moraru Silviu
Munteanu Madalin
Olaru Lorena

Presentation of the firm


The company was established in 1949, as the biggest wine processing company from Romania.
Initially the company had to process the entire quantity of grapes harvested from the vineyards,
spread on more than 26000 hectares that belongs to the state.
Starting with 1989, the vineyards were given back to the former owners, and our company had to
make huge financial efforts in order to ensure the grapes needed for the wine making process
from its own resources.
In 1999, the company became entirely private, and its main shareholder has decided to make it
what it deserves to be: VINCON VRANCEA the largest wine & spirits company, from
Romania.
In order to do so, Mrs. Luchi Georgescu, the main shareholder of the company and Chairman of
the Board, decided to start an impressive program that took into consideration two fundamental
aspects: preserving the heritage by procuring its own vineyards and modernizing the processing
and sales processes.
Today, the company means simultaneously: More than 60 years of experience in wine making,
more than 1500 hectares of vineyards planted with both Romanian and international varieties of
noble grapes, 600 employees that put their passion into each drop of wine & spirit that reach our
customers, a portfolio of wines & spirits of more than 120 products sold through all channels of
distribution, both on Romanian and international wine market.

Address:

Str. Avantului nr. 12

City:

Focsani

County:

VRANCEA

Phone:

0040 237 222 100, 239447, 221574

Fax:

0040 237 222 100, 239447, 221574

E-mail:

vincon@vinconromania.ro;

SWOT

export@vinconromania.ro

Web site:

www.vinconromania.ro

Contact person:

Luchi Georgescu - President

Year of establishment:

1999

Type of activity:

Manufacturer -mainly exporter

Field of activity:

Wine production

analysis of Vincon
SWOT is a basic, straightforward model that assesses what an organization can and cannot do as
well as its potential opportunities and threats. The method of SWOT analysis is to take the
information from an environmental analysis and separate it into internal (strengths and
weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT
analysis determines what may assist the firm in accomplishing its objectives, and what obstacles
must be overcome or minimized to achieve desired results.
Strengths
Features the most homogenous and wide

Weaknesses
Low quality raw materials obtained

vineyard landscape stretched across the

country (2,150 Hectares);


Famous for the quality of the sweet red
wines( Pietroasa, Tmioas
Romneasc, Busuioac de Bohotin si
Gras);
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from some suppliers;


Lack specialists to control the vine

varieties.
Similar varieties of wine with those of

their competitors;
Networks of supermarkets and

Is one of the national leaders of the

hipermarkets in Romania have contracts


with the main competitor S.C.

producers of wine;
Ensures the storage capacity in its own

winery(over 80 million liters of wine);


Packaging and bottling of the wine;
It has a large capacity for bottling(5500

bottles/h);
Owns one of the biggest reserves of

MURFATLAR S.A.

distilled wine from South Eastern


Europe (more than 4800 drums).
Opportunities
Attract a foreign investor
Exports in highly developed Western

Threats
The appearance of a series of new firms
producing and bottled wine using the

countries: Germany, France, United

Kingdom, Ungary, Ireland etc


Demand for Romanian wines and

distilled on the basis of the wine.


Contracts, partnerships with the main

same suppliers;
Fierce competition in the sector, the
existence of some companies which

practice the strategy low-cost;


Production by other domestic

network of supermarkets and

companies of certain kinds of wine

hipermarkets in Romania : Carrefour,

Vincon Vrancea S.A. did not produce

real, Kaufland, plus , Penny Market etc

and of which the old customers show

demand;
The offensive strategy of the main
competitor S.C. Murfatlar S.A.

Products description
The company develops its activity in the region of Vrancea, the biggest wine-growing region of
the country, with more than 28.000 vine cultivated hectares.
This wine-growing region includes 3 famous vineyards: Panciu, Odobesti and Cotesti. Vincon
Vrancea S.A. owns 25 production unities, wine-cellars and grape collecting centers that can
process almost 40.000 tons of raw materials, in only one season. The modern technology,
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equipment and performing bottling lines (imported from Italy, France and Germany) give this
company real possibilities of obtaining high quality wines for the home market and for export.
Vineyard region:
-Odobesti vineyard (Vrancea) has an area of about 6,000 ha of vine. Here it is produced both
high quality white wine: Feteasca Alba, Riesling Italian, Sauvignon si Muscat Ottonel and high
red wines: Feteasca Neagra, Merlot si Cabernet Sauvignon.
Panciu (Vrancea) vineyard has an area of about 10,000 ha. Here it is produced white wine
-Feteasca Alba, Riesling Italian and Muscat Ottone and red wines -Feteasca Neagra, Merlot and
Cabernet.
Cotesti vineyard (Vrancea) has an area of 10,500 ha, the wines produced here are the best from
all Vrancea vinyard region: Feteasca Neagra, Cabernet Sauvignon, Merlot si Pinot Noir.
Product offer
WHITE

ROMANIAN VINE -Galbena de Odobesti 2000

WINES
Vineyard of origin
Wine category:
Qualities:
To be served at:
To be served with:
Capacity:

Odobesti
VS, Demi-sweet
Smell: flower
Taste: fresh, velvet
8 C -12 C
Appetizer, fish, white meat
750 ml
A traditional wine, the most
representative for Odobesti

Description:

vineyard. It represents the perfect


association between grape sort,

vineyard, wine and producer.


RED WINES ROMANIAN VINE -Pinot Noir 2000
Vineyard of origin
Cotesti
Wine category:
VS, Demi-sweet
Qualities:
Color: ruby red

Smell: ripped forest fruits


To be served at:
To be served with:
Capacity:

Taste: velvety
15 C -16 C
Lamb and cow meat, unsalted
cheese
750 ml
It is a special wine: young, elegant
and friendly, ruby red color and a

Description:

specific flavour. Its demi-sweet


taste, much alike the ripped forest
fruits, is obtained with natural sugar

Awards:

coming from grapes.


Novvin 2003, Bucharest / Diploma

of honor.
RED WINES VOIVODAL CELLAR -Feteasca neagra 1996
Vineyard of origin
Cotesti
Wine category:
VS, Demi-sweet
Color: red
Smell and taste: a discrete but very
Qualities:

specific olfactive character, that


suggests the smell of dry plums
When the wine is a little order it has

To be served at:
To be served with:
Capacity:
Description:

a light cinnamon flavour


16 C -18 C
Red meat, grill, roast meat, cut meat,
salami, unsalted cheese.
375 ml, 750 ml
This sort of wine is obtained through
a traditional technology, followed by
a maturation in barrels and aging in
bottles in the cellars from Odobesti,
that have been constructed by
Stehan the Great (end of the XV-th
6

century)
RED WINES CELLAR TREASURE-Pinot Noir 1993
Vineyard of origin
Cotesti
Wine category:
VS, Demi-dry
Color: ruby red
Qualities:

Smell: coffee, spices

To be served at:
To be served with:
Capacity:

Taste: velvet, round, harmonious.


16 C -18 C
Red meat, game, cheese
750 ml
It is a short series selected wine,
unique series of 12,000 bottles for
each sort, it is a matured wine for

Description:

four years in oak barrels and aged in


bottles in Voivodal cellar of Stefan
the Great, where it will receive a
generous bouquet of a special

WHITE

nobleness
VINCON DOMAINS -Sauvignon Blanc 2000

WINES
Vineyard of origin
Wine category:

Qualities:

To be served at:
To be served with:
Capacity:
Description:

Cotesti
VS, Demi-dry
Smell: fresh bouquet, specific to
Sauvignon Blanc.
Taste: light corpulent, keeping the
flavour of fresh harvested grapes.
8 C -12 C
Fish specialties, sea fruit, shell-fish
and chicken.
375 ml, 750 ml
White wine, semi-dry, elegant and
refined, from the family of semiflavoured varieties. Achieved
through a special technology, with a
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controlled temperature wine


fermentation (18 C), it is
remarkable for its freshness, fruity
flavour and balance between its
elements, with a 10g/l natural grape

Awards:
WHITE

sugar content
Bachus 2001, Focsani / gold medal

Novvin 2003, Bucharest /gold medal


VINCON DOMAINS -Riesling 2000

WINES
Vineyard of origin
Wine category:

Cotesti
VS, Dry
Color: white-greenish
Smell: field flowers
Taste: acid, lively, sufficiently round

Qualities:

wine that becomes velvety,


especially harmonious, with great
persistence, with a pleasant shade of

To be served at:
To be served with:
Capacity:

bitter
8 C - 12 C
White meat and cheese
375 ml, 750 ml
It is a crystal clear wine, with a
white-greenish colour, fresh.
Kept in bottle for 3-4 months, this

Description:

miraculous wine preserves the


flowery scents that ennoble the
richness in alcohol, the special
balance and the excellent gustatory

Awards:

persistence.
Bachus 2001, Focsani / gold medal

Evaluation of foreign markets

PESTEL analysis is an important and widely used tool that helps show the big picture of a firms
external environment, particularly as related to foreign markets. PESTEL is an acronym for the
political, economic, sociocultural, technological, environmental, and legal contexts in which a
firm operates. A PESTEL analysis helps managers gain a better understanding of the
opportunities and threats they face; consequently, the analysis aids in building a better vision of
the future business landscape and how the firm might compete profitably. When a firm is
considering entry into new markets, these factors are of considerable importance

Political Factors
Government policies on regulation and taxation can vary from state to state and across national
boundaries. Political considerations also encompass trade treaties, such as NAFTA, ASEAN, and
EU. Such treaties tend to favor trade among the member countries but impose penalties or less
favorable trade terms on non-members.

Economic Factors
Managers also need to consider macroeconomic factors that will have near-term and long-term
effects on the success of their strategy. Inflation rates, interest rates, tariffs, the growth of the
local and foreign national economies, and exchange rates are critical. Unemployment,
availability of critical labor, and the local cost of labor also have a strong bearing on strategy,
particularly as related to the location of disparate business functions and facilities.

Sociocultural Factors
The social and cultural influences on business vary from country to country. Depending on the
type of business, factors such as the local languages, the dominant religions, the cultural views
toward leisure time, and the age and lifespan demographics may be critical. Local sociocultural
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characteristics also include attitudes toward consumerism, environmentalism, and the roles of
men and women in society.
Making assumptions about local norms derived from experiences in your home market is a
common cause for early failure when entering new markets.

Technological Factors
New technology may provide the opportunity for more innovative products and services, such as
online stock trading and remote working. Such changes have the potential to change the face of
the business landscape.

Environmental Factors
The environment has long been a factor in firm strategy, primarily from the standpoint of access
to raw materials. Increasingly, this factor is best viewed as both a direct and indirect cost for the
firm.
Environmental factors are also evaluated on the footprint left by a firm on its respective
surroundings.

Legal Factors
Legal factors reflect the laws and regulations relevant to the region and the organization. Include:
whether the rule of law is well established, how easily or quickly laws and regulations may
change, and what the costs of regulatory compliance are.

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PESTEL Analysis on Countries

Germany
Germany, officially is the Federal Republic of Germany. The country consists of 16 states while
the capital and largest city is Berlin. Germany covers an area of 357,021 sq km and has a largely
seasonal climate. With 81.8 million inhabitants, it is the most populous member state and the
largest economy in the European Union. It is one of the major political powers of the European
continent and a technological leader in many fields. Germany was a founding member of the
European Community in 1957, which became the EU in 1993. It is part of the Schengen Area
and since 1999 a member of the Eurozone. It has the worlds fourth largest economy by nominal
GDP and the fifth largest by purchasing power parity. It is the second largest exporter and third
largest importer of goods. The country has developed a very high standard of living and a
comprehensive system of social security.

Political Factors

Germany is a democratic republic. The German political system operates under a framework laid
out in the 1949 constitutional document. Since 1949, the party system has been dominated by the
Christian Democratic Union and the Social Democratic Party of Germany. The Government of
Germany consists of three significant wings, the legislature, the executive and the judiciary
represented by the Federal Parliament, the Federal Government and the Federal Constitutional
Court, respectively. The President is the formal executive head of the State elected for a term of
five years. He appoints the Federal Chancellor (Prime Minister) and his Cabinet. The Chancellor
is the real head of the Government elected by a majority vote.
Economic Factors

Germany is relatively poor in raw materials. Power plants burning lignite are one of the main
sources of electricity in Germany. Oil, natural gas and other resources are, for the most part,
imported from other countries. Germany imports about two thirds of its energy. The service
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sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Most of
the countrys products are in engineering, especially in automobiles, machinery, metals, and
chemical goods. Germany is the leading producer of wind turbines and solar power technology
in the world.
Socio Cultural Factors

Germany has about 82 million inhabitants. It is by far the largest country in the EU in terms of
population. Germany is a modern, cosmopolitan country. Its society is shaped by a plurality of
life styles and truly different ethno- cultural diversity. Forms of coexistence have become more
varied. Traditional gender roles have been dispensed with. Despite the social changes, the family
remains the most important social reference unit and young people have very close bonds with
their parents.

Technological Factors

Germany supports national science and technology at many levels. There are independent
laboratories, comprised of both the national laboratories and private research. In addition,
German industry supports many important types of research and development, and the German
states, provide still more resources for scientific research. The country has numerous specialized
learned societies concerned with agriculture and veterinary science, medicine, the natural
sciences, and technology.
Legal Factors

The modern German legal system is a system of law which is founded on the principles laid out
by the Basic Law for the Federal Republic of Germany, though most of the important laws as for
example most regulations of the civil code were developed prior to the 1949 constitution. It is
composed of public law which regulates the relations between a citizen and the state or two
bodies of the state (including criminal law) and the private law which regulates the relations

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between two people or companies and the Public law. Public law rules the relations between a
citizen or private person and an official entity or between two official entities.
Private law rules the relations between two private legal entities (for example a buyer and a
seller, an employer and an employee, a tenant and a landlord or two entities that act on the same
level as private persons. In contrast, whenever a state agency exercises official power.
With the help of this analysis, we understand that Germany is a technically advanced country that
spends a great amount of money on Research and development. Germany is a peaceful nation to
conduct business, but German Law is very particular when it deals with the organizations that
cause any kind of harm to its nature and people.

France
Political factors

Considering the political part, many factors have to be taken into account. France is a developed
country; the political environment there is stable in the sense that there is no political trouble, no
war, no political crisis, and no conflict; this is a good factor which can attract investors and new
business entry. In another way setting up a business in France required a lot of capital from the
investors. In certain territories in France like: Mayotte, Saint Pierre and Miquelon, Wallis and
Futuna, Monaco, the government has fixed an investment limit of 1 500 000 Euros for foreign
enterprises. In fact, the government has elucidated a precise list of tax or mandatory
contributions which have to be paid by business people. The government of France has no
control on religions or culture, there is no policy stated by the government to restrict any new
entry of any business which is not matching with the belief of the French population.
Economic factors

The GDP real growth rate of France has increased from (0.3% in 2008 to 8% in 2009),
thisreveals a better economic situation of the pays although the phenomenon of recession; in fact
France weathered the economic crisis (recession) better than the other big countries of Europe.
The GDP per capita has shifted from $33800, $33700 to $32800 in 2007, 2008 and 2009
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respectively, this shows that a quite standard position of GDP per capita of France which reveals
a good economic situation of the country. The unemployment rate has quietly increased from
7.4% in 2008 to 9.7% in 2009 and the population poverty line was 602% in2004. Considering all
these aspects it seems that the economic position in France is favorable to setting up a business.

Socio Cultural Factors

France population is 65,056,792. The life expectancy of France, male average age is 77.78 years
and female average age is 84.34 years. The literacy rate of France has 99% of total population.
France is highly developing country there are 75 percent of the people staying in the cities. There
are two languages spoken by people one as French and another is Catalan. The French people are
very proud of their language which is famous worldwide and also shows their identity. There are
different religions, Roman Catholic, Jewish and Muslim. In France Islam is the 2nd largest
religion.
The French people share a great passion of food. France is very famous for cuisine, wines and
cheese.

Technological Factors

France has an excellent scientific and technological environment. As being the worlds 4Th
industrial power, one of the world leader in space technology, in nuclear energy, in computer
engineering, in environmental protection. All the credit France owes to its quality education
system which includes 230 engineering colleges and 87 universities which are well known for
their research. Technological and industrial growth funded by the government helps in increasing
the standard of living of people. France spends about 2.2% of its GDP for the development of its
technology and industrial growth (on research and development. There is research credit tax

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(CIR credit import research), its a corporate tax relief which government forgoes the
expenditure of the firm on its R & D operations.
Legal Factors

Employment laws
For hiring written contract are mandatory to all grades and levels. It should be in French. An
employee cannot be removed unless the organization specifies one of the claws mentioned in the
French law. The dismissal process on disciplinary basis is very official and failing to pursue the
practical steps, even where the firing is clearly reasonable on the merits, May effects in the
Courts overturning the firing and ordering the recall of the employee.
The current standard rate is at 19.6%. The reduced rate (for food and books) is 5.5%. A specific
rate of 2.1 % applies only to the drugs taken in charge by the Social Security. The net revenue of
VAT in 2008 is 126 billion euro. Subsidy policy is applicable only to agricultural and green
revolution products.
France being at the heart of Europe has a great advantage. It has worlds largest consumer market
consisting about 500 million consumers. France also is the leading destination for tourism.
France government provides a great support for foreign investment.

Hungary
Political Factors

Hungary is a unicameral parliamentary representative democratic republic. Members of


Parliament are elected to the highest organ of state authority, the National Assembly, every four
years. The Prime Minister serves as the head of government and is elected by the National
Assembly. Therefore, traditionally, the Prime Minister is the leader of the party with the most
seats in parliament.

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Economic Factors

The economy of Hungary is a medium-sized, Upper-middle-income, structurally, politically and


institutionally open economy, which is part of the European Union's (EU) single market. The
economy of Hungary experienced market liberalization in the early 1990s as part of the transition
from a socialist economy to a market economy, similarly to most countries in the former Eastern
Bloc. Hungary is a member of the Organisation for Economic Co-operation and Development
(OECD) since 1995, a member of the World Trade Organization (WTO) since 1996, and a
member of the European Union since 2004.
The private sector accounts for more than 80% of the Hungarian gross domestic product (GDP).
Foreign ownership of and investment in Hungarian firms are widespread, with cumulative
foreign direct investment worth more than $70 billion. Hungary's main industries are mining,
metallurgy, construction materials, processed foods, textiles, chemicals (especially
pharmaceuticals), and motor vehicles. Hungary's main agricultural products are wheat, corn,
sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, and dairy products.
Socio-cultural Factors

The total population in Hungary was last reported at 10.0 million people in 2011 from 10.0
million in 1960, changing 0 percent during the last 50 years. Ethnic groups: include Magyar
(nearly 90%), German, Serb, Slovak, and others. The majority of Hungarys people are Roman
Catholic; other religions represented are Calvinist, Lutheran, Jewish, Baptist, Adventist,
Pentecostal, and Unitarian. According to the 2011 census, 9,896,333 people (99.6%) speak
Hungarian, of whom 9,827,875 people (99%) speak it as a first language, while 68,458 people
(0.7%) speak it as a second language.
Technological Factors

Hungary has a highly developed road, railway, air and water transport system. Budapest, the
capital of the state, serves as an important hub in the public transport network.
The Hungarian National Renewable Action Plan has targeted to increase the share of renewable
energy sources to 147% until 2020.
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Legal Factors

Corporate tax is set at 19% (tax base is profit before taxes) and tax payable may be reduced by
various tax incentives. Corporate tax can be reduced to 10% for the sum of a companys tax base
that does not exceed HUF 50 million if: corporate tax benefits are not affected, at least one
person is employed, employees are paid at least double the minimum wage on average, the
company is not subject of a labor law penalty.
The wine market in Hungary appears to be very promising the analysts preddicting increases of
even 30 per cent in the next years on this market.
In the first half of 2014, the hungarian economy slowed its growing rate due to the increase of
exports and foreign investments in the second half of the year. The economys growing rate (4.1
per cent) exceeded the 2.5 per cent average of the UE level and the GDP per Capita went up to
$16.300. Inflation dropped to 3.6 per cent and the unemployment rate reached 7.2 per cent.
Information collected proves that the wine market expanded significantly by 5% or more in
constant values during 2014.
Growth in the wine market was characterised by consumers trading up from economy to uppermass ranges and growing demand for premium products in more affluent areas.
There were no significant changes in terms of market positions and the order of the leading
companies. Top 5: Eger, Villany, Szeksard, Tokaj and Kunsag account for 25 per cent overall
value sales.
Volume sales start to increase slightly in most categories, especially in those that faced the most
serious sales declines during the crisis. However, price competition remains strong and pushes
prices down, thus current value sales of wines could increase modestly in 2015.
Domestic manufacturers hold minor value share, since they do not have such financial
background for investments as multinationals. Nevertheless, some domestic producers are able to
stand in competition with multinationals due to their good quality products.

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The wine market consists of retail sale of champagne, fortified wine, sparkling wine and still
wine. The market is valued according to retail selling price (RSP) and includes any applicable
taxes. Market volume represents the total volume of wine consumed in millions of liters. Any
currency conversions used in the creation of this report have been calculated using constant 2015
annual average exchange rates. The Hungarian wine market had total revenues of $2,262.2m in
2014, representing a compound annual growth rate (CAGR) of 0.6% between 2010 and 2014.
Market consumption volumes declined with a compound annual rate of change (CARC) of -1%
between 2010 and 2014, to reach a total of 242.5 million liters in 2014. The performance of the
market is forecast to accelerate, with an anticipated CAGR of 2.2% for the five-year period 2014
- 2019, which is expected to drive the market to a value of $2,523.7m by the end of 2019.

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United Kingdom
Political Factors

Politically, United Kingdom refers to the whole of England, Scotland and Wales in combination,
but not Northern Ireland.
The parliament of the United Kingdom that meets in the Palace of Westminster has two houses;
an elected House of Commons and an appointed House of Lords. All bills passed are given
Royal Assent before becoming law.
The UK's three major political parties are the Conservative Party (Tories), the Labour Party and
the Liberal Democrats, representing the British traditions of conservatism, socialism and social
liberalism, respectively.
Scotland, Wales and Northern Ireland each have their own government or executive, led by a
First Minister (or, in the case of Northern Ireland, a diarchal First Minister and deputy First
Minister), and a devolved unicameral legislature. England, the largest country of the United
Kingdom, has no such devolved executive or legislature and is administered and legislated for
directly by the UK government and parliament on all issues.
Economic Factors

The UK has a partially regulated market economy. Based on market exchange rates the UK is
today the sixth-largest economy in the world and the third-largest in Europe after Germany and
France, having fallen behind France for the first time in over a decade in 2008.
The UK service sector makes up around 73% of GDP. London is one of the three "command
centers" of the global economy (alongside New York City and Tokyo), it is the world's largest
financial center alongside New York, and it has the largest city GDP in Europe.

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Socio-cultural Factors

In the 2011 census the total population of the United Kingdom was 63,181,775. It is the thirdlargest in the European Union, the fifth-largest in the Commonwealth and the 21st-largest in the
world. Between 2001 and 2011 the population increased by an average annual rate of
approximately 0.7 per cent. The UK's population is predominantly White British. Being located
close to continental Europe, the countries that formed the United Kingdom were subject to many
invasions and migrations.
Technological Factors

Technology in the United Kingdom has a long history, producing many important figures and
developments in the field. Major theorists from the UK include Isaac Newton whose laws of
motion and illumination of gravity have been seen as a keystone of modern science and Charles
Darwin whose theory of evolution by natural selection was fundamental to the development of
modern biology.
The UK plays a leading part in the aerospace industry, with companies including Rolls-Royce
playing a leading role in the aero-engine market; BAE Systems acting as Britain's largest and the
Pentagon's sixth largest defense supplier, and large companies including GKN acting as major
suppliers to the Airbus project. Two British-based companies, GlaxoSmithKline and
AstraZeneca, ranked in the top five pharmaceutical companies in the world by sales in 2009 and
UK companies have discovered and developed more leading medicines than any other country
apart from the US.
Legal Factors

The United Kingdom does not have a single legal system, as Article 19 of the 1706 Treaty of
Union provided for the continuation of Scotland's separate legal system. Today the UK has three
distinct systems of law: English law, Northern Ireland law and Scots law.
Both English law, which applies in England and Wales, and Northern Ireland law are based on
common-law principles. The essence of common law is that, subject to statute, the law is
20

developed by judges in courts, applying statute, precedent and common sense to the facts before
them to give explanatory judgments of the relevant legal principles, which are reported and
binding in future similar cases.
Sales in the industry almost doubled between the years 2004 and 2007 thus the market in United
Kingdom remaining promising. The urbanization rate is 78 per cent thus raising the demand of
our products.
The UK remains the sixth biggest wine consuming country in the world despite another year of
falling wine sales, according to latest figures released by VINEXPO, but there are signs that sales
might increase again from 2015.
Figures compiled show that UK consumption of still and sparkling wine fee to 1.6 billion liters
in 2014. This compares to 1,8 billion liters in 2013.
From the result of our research we can observe that even though it is a tough market to be in
concerning the competitors, it can be described as a very potent market mainly due to its high
demand.
United Kingdom remains a significant wine importer from around the world. However, growth
of the wine market is forecast to be slow in the next five years as the economy recovers at a
lower than expected growth rate following the 2009 economic downturn. Intense market
competition and the UK Government's plans to reduce alcohol consumption will also have a
negative impact on market growth.

21

Ireland
With a population of 4.150.000 people, Ireland is a relatively small country compared to other
UE member countries. The growth rate of the population is 1.133 per cent. To develop a business
in this.
As a member of the UE since 1973, Ireland country, the small surface and the population can be
seen as an impediment due to the small dimension of the marketplace always had the possibility
of diversifying its commercial partners, United Kingdom still remaining its principal one.
Irelands developing rate creates and unique and flourishing environment for our business on the
territory of this country.
The Irish wine market, worth 1.65 billion in 2013 (DIGI, 2014), has experienced unprecedented
growth in the last fifteen years, growing from an 8% share of the overall alcoholic beverage
market in Ireland in 2004 (WDB, 2005) to 20% in 2019 (DIGI, 2010).
With approximately 1,951,000 wine drinkers (WDB, 2014) Ireland is an attractive and profitable
target market for international wine brands.
The two age groups which together account for 55% of wine drinkers in Ireland are: the 25-34
year old age group (23% of wine drinkers) and the 35-44 year old age group (22%). Over 75% of
wine drinkers are employed or self-employed, 10% are students and the remaining 10% of
drinkers is composed of housewives, unemployed people and retired people.
There are more female than male wine consumers in Ireland, with 57% of wine purchases being
made by women. Positioning wine brands to target the female wine consumer should take into
account that perceptions of product attributes are different between for males and females.
From our information, Irelands wine market is regionalized and there are many small producers
and distributors which are not taken into consideration as high-risk competitors but on the other
hand we must acknowledge the products with a good name and tradition in the industry and be
prepared to enter the market with such competition.
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The Irish wine market had total revenues of $1,928.1m in 2013, representing a compound annual
growth rate (CAGR) of 2.8% between 2009 and 2013.
Market consumption volume increased with a CAGR of 4.2% between 2009 and 2013, to reach a
total of 81.4 million liters in 2013.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 3.4% for
the five-year period 2013 - 2018, which is expected to drive the market to a value of $2,280.2m
by the end of 2018.

Market selection United Kingdom


Competitive positions and consumption patterns in the world have changed radically and
rapidly in recent years. For example, global wine exports as share of global production have
increased from 15 to 25 percent over the 1990s and in 2004 topped 26 per cent.
In the global wine industry there are two broad categories for the classification of wine
producing countries, the New World Producers and the Old World Producers. The larger New
World Producers include the USA, Australia, Chile and Argentina. The largest of the Old World
producers are France and Italy.
The United Kingdom's wine market is considered to be the "crucible" for the global wine
market (Wine Market Report, May 2000). The U.K. has a very small domestic wine industry and
also has good relationships with many of the wine producing countries in the world. That
coupled with the long history of wine consumption the British have due to their historical
association with the French and the Germans results in an open and competitive market. The
British import market was second only to the German market in 1998, and the U.K. was ranked
#23 for per capita consumption in the same year with a trend of increasing consumption.
The competitive environment in wine in the UK remains fairly fragmented, with the top 10
players in 2014 accounting for 41% of volume sales. Wine is far from being as concentrated as
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other alcoholic drinks categories such as beer, in which a number of companies own the majority
of brands.
Wine is becoming increasingly popular in the UK and British consumers are expected to
become more and more knowledgeable about wine over the forecast period, a factor which
should help to strengthen the image and boost higher quality varieties. Traditionally, Britain is
not a traditionally wine drinking country, but the popularity of wine increased over the review
period as consumers became more educated about the drink and its pairing with food. The rise of
a more sophisticated food culture and increased focus on the quality of food is expected to
continue over the forecast period, a factor which is expected to help maintain interest in the
category. Increased travel to Southern Europe and other wine drinking countries will also
contribute to the popularity of wine in the UK.

Market strategy to enter foreign wine markets


Since we know from our own experience from the industry that it is very important with
marketing wines on new markets, we have established close relationship with a number of
industry partners with skills and networks to market wines regionally to really push new wines
into the foreign market through export. We will sell company products with the use of local retail
industries and the transport will be done using a transporting company from Romania. We will
not only work to suffice the market of local consumers but we are going to meet the needs of
foreign consumers (tourists) as well by offering same quality wine at a cheaper price.
Our strategy when it comes to marketing is based on three categories of marketing brief
described below:
1. We work with traditional pr and media activities to introduce our new products to our
potential clients. We work with both branch and public magazine PR.
2. We work in close relationship with a number of established restaurants to organize
tastings and quest plays with our producers. We also organize special events where restaurants

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serve food to match our producers wines. To work in close relationship with restaurants is a very
good way for us to strength our products brands and positioning.
3. Since we live in IT society we believe it is very important to use new media to reach out
to end consumers. Since we do not have this competences in house we today work in close
relationship with two companies (ipublishing and Whisprgroup) helping us with this type of
marketing.

The Product
Vincon has one of the widest ranges of wine in the market in Romania. From red to white,
our vineyards contains wines of different sorts like: Merlot, Cabernet Sauvignon, Sauvignon
Blanc, Traminer Rose.

Notes:
- The temperature at which our wine should be serverd for perfect flavor is at 16-17 C0.
- Our Vincon wine collection holds over 500.000 bottles, the oldest one being from 1958 and
the best year is considered to be 1986.
Price: 10 to 60 EUR per bottle.
The main objective of Vincon was to hold and strengthen their position on the internal wine
market. Because of this, at the beginning, we did not focus on exporting so our minds could be at
meeting the objective.
Concerning the type of wine, the rates of demand are as follow:
-

48% semi-dry wine

52% semi-sweet wine

Promoting the product


Given the other products from the open market, wine has a certain trait, its origin, the
vineyard being an emblem and a standard when choosing a good wine.
Conclusion

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Wine and agribusiness are truly global in scope, and consequently most markets today are
saturated with international brands and competitors looking for new markets where to sell their
products.
Referring the internationalization of Vincon, we can say that the international market meets
our objectives. In this study, we found every condition necessary that the company has to take in
account when exporting wines. We consider that we can manage local competition well by using
our high quality products that are sold at bargain. We believe that our wine will not only leave a
good impression, but that it will be sold widely also.

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