BLR Hardy: The Question Of The Day Kelly Or Banrock
Soroh Stept
Case 4
Leadership in Global Management
LDR-422
BLR Hardy: The question of the day, Kelly or Banrock
Nurturing wine is very complicating. There are many different types of wine and each type needs to be nurtured in a different way. What I find very fascinating about the wine industry is that most of the wines only contain one ingredient but yet there are still have many different flavors. I image it like a baby, each baby is born innocent, all babies act the same but as they grow older there is a distinct difference between each person. The way a child is nurtured has a lot to do with how they will act when they grow older. The same is with wine, they are all made up of grapes but are trended to in different ways. This shapes them to become a unique wine. The wine business is a booming industry, there are many different brands with many unique favors and each are very successful. One of the more popular companies …show more content…
so called BRL Hardy. Although, BRL Hardy may seem to be new it really has a rich history. BRL Hardy is comprised of two different companies that merged together to produce a booming business, as they are known to have. These companies were once separate but under pressure of foreclosure Hardy joined with BRL and together they made a great company that grow to be the second to largest company in Australia. The wine industry in Australia has a long history. Winery was first introduced to by one of the early settlers, Captain Arthur Phillip in 1788. He brought over to Australia the first vine. This first vine was originally from the Brazilian fertile. Phillips first planted his prized possession in Sydney which is located on the south-east coast of Austria. It did not take very long to the vintners to realize that Sydney was not the perfect places to grow a vineyard. Phillips and his crew learnt that the humidity of was killing all the vines. Therefore, Phillips decided to move the vineyards further inland to a more desired climate and had much success there. The other vintners followed suit and all the vineyards were planted further in. In 1805, another large vineyard was established in Australia near Parramatta by Gregory Blaxland and another near Camden in 1820 by William Macarthur (Australian Wine Guide, 2012) (History, Australian viticulture, 2013).
Phillips realization boosted the winery industry and soon many countries started seeing the potential for wines in Australia and many assumes they would be soon mass producing wines. This enticed many people to start migrating to Australia to try to use their luck in wines. Many hoped to gain much wanted wealth from this industry. Many countries, such as France, Germany and Italy started establishing vinery colonies in Australia. The first wines that Australia produced consisted of sweet and fortified wines, one of the most popular wines of the time. And as everyone expected, Australia became the main source of wines for most counties (Australian Wine Guide, 2012).
Like all industries, all good is short lived. After the 19th century the wells of wine started to dry. Australia experienced several droughts, there was also an outbreak of phylloxera and other economic troubles. People’s taste also change and the styles they were reproducing were old. From the turn of the century until a little more than half of the century if look like the Australian winery lost its lust. Everyone just assumed their time to shine was over. At this point Australian industry shrank remarkably and the wines that were produced were sold domestically (Australian Wine Guide, 2012).
By the 1960’s the Australian vintners realized that if they do not take drastic steps then their whole livelihood would be gone. They understood they had to act fast to salvage what remained of the industry. At this point the few winemakers that were left invested a lot of money into buy modern materials needed to produce wines that will appeal to the public. They invested heavily in production technology so they would be able to properly compete globally. They also made sure to enforce high quality standards so they world would see them as a country that only produces the best. They hoped with these new machines and their desire to produce only high quality products would boost the industry (Australian Wine Guide, 2012).
This step paid off well, this helped Australia get back on its feet. It helped them to become known as producing good quality inexpensive wine. They now began producing again in high volume. They ships at shore began filling up and it looked like the dark times were behind them. The other countries became to see Australia as being part of the winery map. And the vintners breathed a sigh of relief (Australian Wine Guide, 2012).
At the end of the Dark Age’s different wine companies started to emerge. One of the famous new ones was called BRL. From the very beginning they became very popular to those living domestically. They were known for their good quality wine and amazing customer service. Although, many companies now started to sprout no one forgot about the long timers. A company called Hardy had a very strong history and everyone expected it to continue. No one expected them to hit hard times or to merge with a new company. But one day in the early 1990’s the unthinkable happened. Under the pressure of foreclosure Hardy realized the only way to salvage the company was to merge with another company and when BRL gave them an offer they realized they had to take it up. Hardy was founded by Thomas Hardy in 1853. Hardy was started with the mission to “create wines that will be prized in the markets of the world.” When Hardy first came over to Australia from Devon he was privileged to work with the famous John Reynell, who was one of Australia’s first winemaker. Shortly after his marriage, Hardy decided to purchase a piece of property, Bankside, with on he hoped to plant a vineyard. Merely four years after the first vine was planted Thomas came out with his first product. This vine became very popular and helped him become one of Australia’s first exporters (5 Generations of Devotion, 2014).
In 1870 Thomas put out his Oomoo range wines. The word Oomoo means good. Many other lines quickly followed this popular brand. Two years after Hardy came out with the Oomoo line he purchased the Tintara vineyards and winery in McLaren Vales, which as saw much profit. At this point hardy new it was time to involve more family members into the thriving business. He needed others with this passion to help is company flourish. Therefore, he decided to invite his nephew, Thomas Hardy Nottage (meaning, second generation). Thomas produced such extraordinary high quality products that in 1882 and 1889 he won two Gold medals at the International Wine Show, one from Bordeaux and the other from Paris. By 1887 the company grew even bigger that Hardy realized he needed to allow his sons to take over different parts of the business. At this point his sons officially join the company (5 Generations of Devotion, 2014).
All was quiet for some time and Thomas and his workers developed different strategies to help enlarge their company’s income. But in 1904 disaster struck, the Bankside cellar was destroyed by a terrible fire that ravaged the place. Hardy was broken by what happened but quickly dusted himself off and began to rebuild. He realized that if he did not rebuild fast he would die a broken man. He quickly rebuild himself and became even more successful. His success was very satisfying and he enjoyed his long, happy life. In 1912, merely two days after his 82nd birthday died. The town’s people mourned his death. Hardy left a lot behind him, he helped big Australia and helped it gain its name in the wine industry. In order to keep him in their hearts the townsmen decided to craft a monument in his honor to thank him for all this work in helping the Australian economy (5 Generations of Devotion, 2014).
After his death his children completely take over the business and help it continue to flourish. What was unique about Hardy was that the business always stayed in the family. After one member of the family deceased another one took its place. Throughout the years the company expanded and purchased more fields to help the company prosper. In the late 1900’s Hardy made a few investments that went sour. They began losing millions of dollars. They realized they had to quickly look for a financial partner before they would be forced to close. This is when BRL come into the picture and Hardy decided to partner up with them (5 Generations of Devotion, 2014) (Barlett, 2011).
BRL has a much shorter history. They opened in 1982, a mere ten years before the merge. This company’s strategies are completely opposite Hardy. BLR’s culture was based more on aggressive behavior and commercial selling while Hardy was more traditional polite company. Many people attribute their difference to the success of the merge. People believe that the merge helped balance the company. Because of BLR’s late start they found it very challenging to get their name on the boards. Many purchasers wanted to stick to the standard companies and did not bat an eyelash to any new companies. When BLR realized Hardy’s financial troubles they took it as a perfect opportunity for them to try to hook up with Hardy to help them build their name. This merge ended the quick life of BRL and started a new chapter (BRL company and hardy company, 2014) (Chang, 2014).
The two companies decided to use both their names and therefore, the new company became known as BRL Hardy or BRLH. This was their foundation, to try to incorporate both the companies’ ideas. With the merge, both companies had to undergo a lot of changes. Both had to give in on different aspects. Each company had their own expectations of the merge that the other company had to satisfy. When these too major wine companies in Australia merged they agreed to share everything 50/50. They hoped this would insure the peaceful unity of the two companies. From the onset of the merge these companies saw only success. They had true growth and by 1997 their overturn of the company tripled and by 1998 they were known as the second to largest wine company in Australia with very strong exporting (BRL company and hardy company, 2014).
This merge was very successful, both companies attained their aspirations. BRL was supplied with the brand image they desired, the knowledge of how to produce wines and the marketing excellence. While they got a lot from this merge they also supplied their own attributes, like capital, well-organized management and raw materials. Not only did each company have to supply the other with their materials but now they had to diverge their values. They had to merge their views and values and come up with different ones the included both companies goals and aspirations. Hardy was used to only supplying wines internationally and BLR focus on national sales. Now, in order to make their merge successful BRLH had to take both these strategies. The company started supplying wines to the locals and worked hard in producing enough to send to other countries. The compromised on many of their different strategies and tried incorporating both companies whenever possible (BRL company and hardy company, 2014).
At first, before the company started thinking about the different strategies they wanted to put in place they realized they had to get the company back on their feet. They had to make sure the company has financially stable. In order to help the company get on its feet the managers decided that they would concentrate all their energy on domestic sales and slow move to international sales. They hoped this would help the company set up a solid fountain that would help the company grow. The company agreed that once they were secure domestically they would start instituting their other strategies (BRL company and hardy company, 2014).
Before Hardy and BRL could come up with different strategic plans to make the company successful, each had to figure out their current strategies and see what they wanted to improve. The managers realized that now that the company is so big they had to have a more decentralized approach. Instead of the management being accountable for all the decisions they would now only make the more important ones. They wanted to involve the employees more and make them feel a part of the company. They felt by doing this the employees would want to help make sure the company is successful and they will put their all into it. The strategies they compiled were so successful that in 1998 BRLH rose to become the second to largest wine company in Australia, with most of their sales coming from international sales. Other wine companies realized their success and wanted to propose different offers to the company. That is why in January of 1998 Christopher Carson, the chief executive of the company found himself in charge of making a big decision. He had to proposals from two different companies and he had the difficult task of choosing which proposal to except. He understood that whichever proposal he decided on would shape the future of the company, this decision would decide on the success of the company in the future (Barlett, 2011) (BRL company and hardy company, 2014).
As the company developed they were faced with two decisions.
The decisions were known as the Kelly Revenge and Banrock Station. In 1995 the company acquired a plot in Australia called Banrock station. The plot of land was a cattle grazing property in the south of Australia that they hoped to convert into a viticulture. Eventually this plant was set up and its brand became known as the Banrock station. The brand’s image was an earth-tone label. Their wines they produced where very down to earth and the motto was “Good Earth, Fine Wine.” This wine was very successful that it began being produced overseas this wine was sold at the same price as Kelly’s Revenge, a very popular international wine. At the point there was a clash in what the company should be putting their effects to. Should they promoted the new wine of Kelly’s Revenge or Banrock Station? This decision brought a lot of conflict to the company. Many people believed that Kelly’s Revenge would be more popular internationally and others believed in the Banrock Station (Barlett,
2011).
This decision between Kelly’s Revenge and Banrock Station is very difficult choice. It completely tore the company apart. It is one that, again, stems from its desire to be a global company but at the same time one that is decentralized to better adapt to local and particular national markets. Kelly’s Revenge was, like D’Istinto, a pet project from Carson’s UK Operation. Banrock Station, on the other hand, was the brand that had been launched in Australia, New Zealand and the US with much success. What made this wine very popular was the fact that it emphasized its use of earth-friendly production methods. Judging from the already proven success of Banrock Station in global markets it seems this wine was a lot less risky. It was already very popular that they did not have to do much convincing to get people to buy this product. The hardest stage of producing a new product is getting the public to buy it. Since many parts of the world have already acknowledged its brilliance the other countries will not need much convincing to buy it. The problem with Kelly’s Revenge is that it did not yet gain world recognition and therefore there is a possibility that this wine will fail, this wine is a lot more risky (brl hardy: globalizing an australian wine company , 2014).
The main issue with Kelly’s Revenge is the fact that its development was far too decentralized from home management and ran the potential for relabeling or rebranding the BRLH’s image in the UK and Europe without BRLH’s consultation or approval. This brand it not incorporate enough of the companies strategies and it can change the way the company is viewed by the public. The company has a good name and a name they do not want to change. By investing in this wine they run the risk of changing their name which can affect their business. This wine does not completely go against the companies values, it line with BRLH’s desire to be a global wine company. The company is known globally for their desire to outsource and they have established a good name internationally. BRLH is nervous if they go ahead and produce the Kelly’s revenge wine people will get the feeling that they are a domestic wines that does not have much interest in international sales. This image would go against the whole company’s frame work. Banrock Station is a much saver investment since it already has success in three markets, domestically, in New Zealand and in America. A driving force behind its success in Australia, New Zealand, and the US, was its image as an eco-friendly brand through use of earth-tones in its labels as well as informing the customer on the label of the earth-friendly production methods used to make it. At this point many people were very concerned about the environment and global warming. Therefore the theme “environmental friendliness” really captured the attention of many buyers. To those against the Banrock Station complained that the Banrock image is very boring and does not capture the attention of those looking to buy wine. They complained that the labels were very dull and colorless and people like more colorfully labels that pop. This is why they wanted to go ahead with the Kelly’s Revenge since they believed it was a pop (brl hardy: globalizing an australian wine company , 2014).
Christopher Carson, a very influential person in the company look this debate to heart. He spend many long hours working on Kelly’s Revenge and he did not want to see all his effects go up in smoke. He tries convincing the company in many ways to go with his wine. He explained to the company that he had many years of experience in the UK market and understood the wants of the countrymen inside out and had worked hard to produce a product that would hit gold. He claimed that the company would not be able to produce another wine like Kelly’s Revenge that the UK residents would like as much. He explained that the company would gain more recognition very this wine then Banrock Station because the UK citizens like attractive products, products that glittered in their face. Furthermore, he explained to all the senior staff of BRLH how it was so important not to lose their UK purchasers since most of the company’s revenue came from there. (BRL Hardy- International Bussiness, 2012)
Carson has many valid points. He has the right to be nervous about the UK industry. At the same time other members who are pro Banrock station also have the right to be nervous about instituting the Kelly’s Revenge. Losing their image can have long lasting effect on the company. I feel that it is the company should work on introducing the Banrock Station over the Kelly’s Revenge because Banrock goes in line with the companies long term strategies. The company had a desire in institute three core strengthens and marketing the Banrock wine would help the company complete its desire. Firstly, the company wanted to achieve standardization in branding, labeling, pricing, distribution and promotions. Selling this wine all over the world will help the company achieve this goal. Furthermore, BRLH always wanted to be seen as an eco- friendly, as a company who preserves the world. The Banrock gave off the exact image while Kelly’s revenge gave off a sketchier image. The company wanted to show the world that they cared about that happened the environment they live in and this wine supported this. Lastly, having this standardize product will help the company achieve is desire of opening more markets. Having a standardized product will help them be able to open up more markets faster around the world (BRL Hardy- International Bussiness, 2012).
As one can see the Banrock Station wine works better with the company image. It allows the company to achieve more its expectations and visions. Kelly’s revenge should not totally be disregarded, the company should put this recipe somewhere save so as soon as this wine takes off and people are start to get restless and want a new wine they can quickly introduce the Kelly’s revenge to the market. This will help them introduce the wine faster and will take less financing to establish its grounds. Although, Carson will be devastated by this decision, it should be stressed to him that his efforts were not for naught. They will be used sometime in the future.
References
5 Generations of Devotion. (2014). Retrieved from hardyswine.
Australian Wine Guide. (2012). Retrieved from Bottlenotes.
Barlett, B. (2011). Tranitional Management. New York: McGraw-Hill.
BRL company and hardy company. (2014). Retrieved from Essay UK.
BRL Hardy- International Bussiness. (2012, June 22). Retrieved from scibd. brl hardy: globalizing an australian wine company . (2014). Retrieved from Econ-jobs.
Chang, C. (2014, January 14). BRL Hardy Australian Wine Company. Retrieved from Prezi.
History, Australian viticulture. (2013). Retrieved from WineAustralia.
However, as per the subsidiary perspective of Christopher Carson, who had built the marketfor BRL Hardy in UK,
Kelly’s Revenge would be a better suited product for the followingreasons:
Carson understood the UK market well and Kelly’s Revenge was created by the UK
-based management specifically to suit the consumers’ needs UK had a strong performance and contributed significantly to BRL Hardy’s revenues.
An important element of the company’s strategy was to maintain its share in the critically important UK market that was the largest non-producing wine importer onits path of becoming an international wine company. This would be possible only bybuilding brands specific to UK consumer needs
The product had an appealing concept, designing and label. Where Banrock Stationhad a dull label design and concept not appealing to UK consumers,
Kelly’s Revenge was thought to be seen as a fun brand with an appeal to young consumers or first-timedrinkers
UK was not a branded wine market yet, and a brand driven strategy could not beimplemented successfully in such a market. The consumer mentality was that of anti-branding and a bulk wine orientation would not have catered to the specific consumerneeds, historically, very few mass global brand players had been successful in theirbusiness.
A flexibility in handling branding and labeling would enable better alignment withthe needs of different target markets and easier implementation by the UK-basedteamsThus,
Banrock Station would be a better choice considering the overall strategy of BRLHardy which was centered on creating a global wine company. However, it should beintroduced after adequate testing in the UK market to gauge the potential market response.
However, as per the subsidiary perspective of Christopher Carson, who had built the marketfor BRL Hardy in UK,
Kelly’s Revenge would be a better suited product for the followingreasons:
Carson understood the UK market well and Kelly’s Revenge was created by the UK
-based management specifically to suit the consumers’ needs UK had a strong performance and contributed significantly to BRL Hardy’s revenues.
An important element of the company’s strategy was to maintain its share in the critically important UK market that was the largest non-producing wine importer onits path of becoming an international wine company. This would be possible only bybuilding brands specific to UK consumer needs
The product had an appealing concept, designing and label. Where Banrock Stationhad a dull label design and concept not appealing to UK consumers,
Kelly’s Revenge was thought to be seen as a fun brand with an appeal to young consumers or first-timedrinkers
UK was not a branded wine market yet, and a brand driven strategy could not beimplemented successfully in such a market. The consumer mentality was that of anti-branding and a bulk wine orientation would not have catered to the specific consumerneeds, historically, very few mass global brand players had been successful in theirbusiness.
A flexibility in handling branding and labeling would enable better alignment withthe needs of different target markets and easier implementation by the UK-basedteamsThus,
Banrock Station would be a better choice considering the overall strategy of BRLHardy which was centered on creating a global wine company. However, it should beintroduced after adequate testing in the UK market to gauge the potential market response.
However, as per the subsidiary perspective of Christopher Carson, who had built the marketfor BRL Hardy in UK,
Kelly’s Revenge would be a better suited product for the followingreasons:
Carson understood the UK market well and Kelly’s Revenge was created by the UK
-based management specifically to suit the consumers’ needs UK had a strong performance and contributed significantly to BRL Hardy’s revenues.
An important element of the company’s strategy was to maintain its share in the critically important UK market that was the largest non-producing wine importer onits path of becoming an international wine company. This would be possible only bybuilding brands specific to UK consumer needs
The product had an appealing concept, designing and label. Where Banrock Stationhad a dull label design and concept not appealing to UK consumers,
Kelly’s Revenge was thought to be seen as a fun brand with an appeal to young consumers or first-timedrinkers
UK was not a branded wine market yet, and a brand driven strategy could not beimplemented successfully in such a market. The consumer mentality was that of anti-branding and a bulk wine orientation would not have catered to the specific consumerneeds, historically, very few mass global brand players had been successful in theirbusiness.
A flexibility in handling branding and labeling would enable better alignment withthe needs of different target markets and easier implementation by the UK-basedteamsThus,
Banrock Station would be a better choice considering the overall strategy of BRLHardy which was centered on creating a global wine company. However, it should beintroduced after adequate testing in the UK market to gauge the potential market response.
However, as per the subsidiary perspective of Christopher Carson, who had built the marketfor BRL Hardy in UK,
Kelly’s Revenge would be a better suited product for the followingreasons:
Carson understood the UK market well and Kelly’s Revenge was created by the UK
-based management specifically to suit the consumers’ needs UK had a strong performance and contributed significantly to BRL Hardy’s revenues.
An important element of the company’s strategy was to maintain its share in the critically important UK market that was the largest non-producing wine importer onits path of becoming an international wine company. This would be possible only bybuilding brands specific to UK consumer needs
The product had an appealing concept, designing and label. Where Banrock Stationhad a dull label design and concept not appealing to UK consumers,
Kelly’s Revenge was thought to be seen as a fun brand with an appeal to young consumers or first-timedrinkers
UK was not a branded wine market yet, and a brand driven strategy could not beimplemented successfully in such a market. The consumer mentality was that of anti-branding and a bulk wine orientation would not have catered to the specific consumerneeds, historically, very few mass global brand players had been successful in theirbusiness.
A flexibility in handling branding and labeling would enable better alignment withthe needs of different target markets and easier implementation by the UK-basedteamsThus,
Banrock Station would be a better choice considering the overall strategy of BRLHardy which was centered on creating a global wine company. However, it should beintroduced after adequate testing in the UK market to gauge the potential market response.
However, as per the subsidiary perspective of Christopher Carson, who had built the marketfor BRL Hardy in UK,
Kelly’s Revenge would be a better suited product for the followingreasons:
Carson understood the UK market well and Kelly’s Revenge was created by the UK
-based management specifically to suit the consumers’ needs UK had a strong performance and contributed significantly to BRL Hardy’s revenues.
An important element of the company’s strategy was to maintain its share in the critically important UK market that was the largest non-producing wine importer onits path of becoming an international wine company. This would be possible only bybuilding brands specific to UK consumer needs
The product had an appealing concept, designing and label. Where Banrock Stationhad a dull label design and concept not appealing to UK consumers,
Kelly’s Revenge was thought to be seen as a fun brand with an appeal to young consumers or first-timedrinkers
UK was not a branded wine market yet, and a brand driven strategy could not beimplemented successfully in such a market. The consumer mentality was that of anti-branding and a bulk wine orientation would not have catered to the specific consumerneeds, historically, very few mass global brand players had been successful in theirbusiness.
A flexibility in handling branding and labeling would enable better alignment withthe needs of different target markets and easier implementation by the UK-basedteamsThus,
Banrock Station would be a better choice considering the overall strategy of BRLHardy which was centered on creating a global wine company. However, it should beintroduced after adequate testing in the UK market to gauge the potential market response.
Case 4
Leadership in Global Management
LDR-422
BLR Hardy: The question of the day, Kelly or Banrock
Nurturing wine is very complicating. There are many different types of wine and each type needs to be nurtured in a different way. What I find very fascinating about the wine industry is that most of the wines only contain one ingredient but yet there are still have many different flavors. I image it like a baby, each baby is born innocent, all babies act the same but as they grow older there is a distinct difference between each person. The way a child is nurtured has a lot to do with how they will act when they grow older. The same is with wine, they are all made up of grapes but are trended to in different ways. This shapes them to become a unique wine. The wine business is a booming industry, there are many different brands with many unique favors and each are very successful. One of the more popular companies …show more content…
so called BRL Hardy. Although, BRL Hardy may seem to be new it really has a rich history. BRL Hardy is comprised of two different companies that merged together to produce a booming business, as they are known to have. These companies were once separate but under pressure of foreclosure Hardy joined with BRL and together they made a great company that grow to be the second to largest company in Australia. The wine industry in Australia has a long history. Winery was first introduced to by one of the early settlers, Captain Arthur Phillip in 1788. He brought over to Australia the first vine. This first vine was originally from the Brazilian fertile. Phillips first planted his prized possession in Sydney which is located on the south-east coast of Austria. It did not take very long to the vintners to realize that Sydney was not the perfect places to grow a vineyard. Phillips and his crew learnt that the humidity of was killing all the vines. Therefore, Phillips decided to move the vineyards further inland to a more desired climate and had much success there. The other vintners followed suit and all the vineyards were planted further in. In 1805, another large vineyard was established in Australia near Parramatta by Gregory Blaxland and another near Camden in 1820 by William Macarthur (Australian Wine Guide, 2012) (History, Australian viticulture, 2013).
Phillips realization boosted the winery industry and soon many countries started seeing the potential for wines in Australia and many assumes they would be soon mass producing wines. This enticed many people to start migrating to Australia to try to use their luck in wines. Many hoped to gain much wanted wealth from this industry. Many countries, such as France, Germany and Italy started establishing vinery colonies in Australia. The first wines that Australia produced consisted of sweet and fortified wines, one of the most popular wines of the time. And as everyone expected, Australia became the main source of wines for most counties (Australian Wine Guide, 2012).
Like all industries, all good is short lived. After the 19th century the wells of wine started to dry. Australia experienced several droughts, there was also an outbreak of phylloxera and other economic troubles. People’s taste also change and the styles they were reproducing were old. From the turn of the century until a little more than half of the century if look like the Australian winery lost its lust. Everyone just assumed their time to shine was over. At this point Australian industry shrank remarkably and the wines that were produced were sold domestically (Australian Wine Guide, 2012).
By the 1960’s the Australian vintners realized that if they do not take drastic steps then their whole livelihood would be gone. They understood they had to act fast to salvage what remained of the industry. At this point the few winemakers that were left invested a lot of money into buy modern materials needed to produce wines that will appeal to the public. They invested heavily in production technology so they would be able to properly compete globally. They also made sure to enforce high quality standards so they world would see them as a country that only produces the best. They hoped with these new machines and their desire to produce only high quality products would boost the industry (Australian Wine Guide, 2012).
This step paid off well, this helped Australia get back on its feet. It helped them to become known as producing good quality inexpensive wine. They now began producing again in high volume. They ships at shore began filling up and it looked like the dark times were behind them. The other countries became to see Australia as being part of the winery map. And the vintners breathed a sigh of relief (Australian Wine Guide, 2012).
At the end of the Dark Age’s different wine companies started to emerge. One of the famous new ones was called BRL. From the very beginning they became very popular to those living domestically. They were known for their good quality wine and amazing customer service. Although, many companies now started to sprout no one forgot about the long timers. A company called Hardy had a very strong history and everyone expected it to continue. No one expected them to hit hard times or to merge with a new company. But one day in the early 1990’s the unthinkable happened. Under the pressure of foreclosure Hardy realized the only way to salvage the company was to merge with another company and when BRL gave them an offer they realized they had to take it up. Hardy was founded by Thomas Hardy in 1853. Hardy was started with the mission to “create wines that will be prized in the markets of the world.” When Hardy first came over to Australia from Devon he was privileged to work with the famous John Reynell, who was one of Australia’s first winemaker. Shortly after his marriage, Hardy decided to purchase a piece of property, Bankside, with on he hoped to plant a vineyard. Merely four years after the first vine was planted Thomas came out with his first product. This vine became very popular and helped him become one of Australia’s first exporters (5 Generations of Devotion, 2014).
In 1870 Thomas put out his Oomoo range wines. The word Oomoo means good. Many other lines quickly followed this popular brand. Two years after Hardy came out with the Oomoo line he purchased the Tintara vineyards and winery in McLaren Vales, which as saw much profit. At this point hardy new it was time to involve more family members into the thriving business. He needed others with this passion to help is company flourish. Therefore, he decided to invite his nephew, Thomas Hardy Nottage (meaning, second generation). Thomas produced such extraordinary high quality products that in 1882 and 1889 he won two Gold medals at the International Wine Show, one from Bordeaux and the other from Paris. By 1887 the company grew even bigger that Hardy realized he needed to allow his sons to take over different parts of the business. At this point his sons officially join the company (5 Generations of Devotion, 2014).
All was quiet for some time and Thomas and his workers developed different strategies to help enlarge their company’s income. But in 1904 disaster struck, the Bankside cellar was destroyed by a terrible fire that ravaged the place. Hardy was broken by what happened but quickly dusted himself off and began to rebuild. He realized that if he did not rebuild fast he would die a broken man. He quickly rebuild himself and became even more successful. His success was very satisfying and he enjoyed his long, happy life. In 1912, merely two days after his 82nd birthday died. The town’s people mourned his death. Hardy left a lot behind him, he helped big Australia and helped it gain its name in the wine industry. In order to keep him in their hearts the townsmen decided to craft a monument in his honor to thank him for all this work in helping the Australian economy (5 Generations of Devotion, 2014).
After his death his children completely take over the business and help it continue to flourish. What was unique about Hardy was that the business always stayed in the family. After one member of the family deceased another one took its place. Throughout the years the company expanded and purchased more fields to help the company prosper. In the late 1900’s Hardy made a few investments that went sour. They began losing millions of dollars. They realized they had to quickly look for a financial partner before they would be forced to close. This is when BRL come into the picture and Hardy decided to partner up with them (5 Generations of Devotion, 2014) (Barlett, 2011).
BRL has a much shorter history. They opened in 1982, a mere ten years before the merge. This company’s strategies are completely opposite Hardy. BLR’s culture was based more on aggressive behavior and commercial selling while Hardy was more traditional polite company. Many people attribute their difference to the success of the merge. People believe that the merge helped balance the company. Because of BLR’s late start they found it very challenging to get their name on the boards. Many purchasers wanted to stick to the standard companies and did not bat an eyelash to any new companies. When BLR realized Hardy’s financial troubles they took it as a perfect opportunity for them to try to hook up with Hardy to help them build their name. This merge ended the quick life of BRL and started a new chapter (BRL company and hardy company, 2014) (Chang, 2014).
The two companies decided to use both their names and therefore, the new company became known as BRL Hardy or BRLH. This was their foundation, to try to incorporate both the companies’ ideas. With the merge, both companies had to undergo a lot of changes. Both had to give in on different aspects. Each company had their own expectations of the merge that the other company had to satisfy. When these too major wine companies in Australia merged they agreed to share everything 50/50. They hoped this would insure the peaceful unity of the two companies. From the onset of the merge these companies saw only success. They had true growth and by 1997 their overturn of the company tripled and by 1998 they were known as the second to largest wine company in Australia with very strong exporting (BRL company and hardy company, 2014).
This merge was very successful, both companies attained their aspirations. BRL was supplied with the brand image they desired, the knowledge of how to produce wines and the marketing excellence. While they got a lot from this merge they also supplied their own attributes, like capital, well-organized management and raw materials. Not only did each company have to supply the other with their materials but now they had to diverge their values. They had to merge their views and values and come up with different ones the included both companies goals and aspirations. Hardy was used to only supplying wines internationally and BLR focus on national sales. Now, in order to make their merge successful BRLH had to take both these strategies. The company started supplying wines to the locals and worked hard in producing enough to send to other countries. The compromised on many of their different strategies and tried incorporating both companies whenever possible (BRL company and hardy company, 2014).
At first, before the company started thinking about the different strategies they wanted to put in place they realized they had to get the company back on their feet. They had to make sure the company has financially stable. In order to help the company get on its feet the managers decided that they would concentrate all their energy on domestic sales and slow move to international sales. They hoped this would help the company set up a solid fountain that would help the company grow. The company agreed that once they were secure domestically they would start instituting their other strategies (BRL company and hardy company, 2014).
Before Hardy and BRL could come up with different strategic plans to make the company successful, each had to figure out their current strategies and see what they wanted to improve. The managers realized that now that the company is so big they had to have a more decentralized approach. Instead of the management being accountable for all the decisions they would now only make the more important ones. They wanted to involve the employees more and make them feel a part of the company. They felt by doing this the employees would want to help make sure the company is successful and they will put their all into it. The strategies they compiled were so successful that in 1998 BRLH rose to become the second to largest wine company in Australia, with most of their sales coming from international sales. Other wine companies realized their success and wanted to propose different offers to the company. That is why in January of 1998 Christopher Carson, the chief executive of the company found himself in charge of making a big decision. He had to proposals from two different companies and he had the difficult task of choosing which proposal to except. He understood that whichever proposal he decided on would shape the future of the company, this decision would decide on the success of the company in the future (Barlett, 2011) (BRL company and hardy company, 2014).
As the company developed they were faced with two decisions.
The decisions were known as the Kelly Revenge and Banrock Station. In 1995 the company acquired a plot in Australia called Banrock station. The plot of land was a cattle grazing property in the south of Australia that they hoped to convert into a viticulture. Eventually this plant was set up and its brand became known as the Banrock station. The brand’s image was an earth-tone label. Their wines they produced where very down to earth and the motto was “Good Earth, Fine Wine.” This wine was very successful that it began being produced overseas this wine was sold at the same price as Kelly’s Revenge, a very popular international wine. At the point there was a clash in what the company should be putting their effects to. Should they promoted the new wine of Kelly’s Revenge or Banrock Station? This decision brought a lot of conflict to the company. Many people believed that Kelly’s Revenge would be more popular internationally and others believed in the Banrock Station (Barlett,
2011).
This decision between Kelly’s Revenge and Banrock Station is very difficult choice. It completely tore the company apart. It is one that, again, stems from its desire to be a global company but at the same time one that is decentralized to better adapt to local and particular national markets. Kelly’s Revenge was, like D’Istinto, a pet project from Carson’s UK Operation. Banrock Station, on the other hand, was the brand that had been launched in Australia, New Zealand and the US with much success. What made this wine very popular was the fact that it emphasized its use of earth-friendly production methods. Judging from the already proven success of Banrock Station in global markets it seems this wine was a lot less risky. It was already very popular that they did not have to do much convincing to get people to buy this product. The hardest stage of producing a new product is getting the public to buy it. Since many parts of the world have already acknowledged its brilliance the other countries will not need much convincing to buy it. The problem with Kelly’s Revenge is that it did not yet gain world recognition and therefore there is a possibility that this wine will fail, this wine is a lot more risky (brl hardy: globalizing an australian wine company , 2014).
The main issue with Kelly’s Revenge is the fact that its development was far too decentralized from home management and ran the potential for relabeling or rebranding the BRLH’s image in the UK and Europe without BRLH’s consultation or approval. This brand it not incorporate enough of the companies strategies and it can change the way the company is viewed by the public. The company has a good name and a name they do not want to change. By investing in this wine they run the risk of changing their name which can affect their business. This wine does not completely go against the companies values, it line with BRLH’s desire to be a global wine company. The company is known globally for their desire to outsource and they have established a good name internationally. BRLH is nervous if they go ahead and produce the Kelly’s revenge wine people will get the feeling that they are a domestic wines that does not have much interest in international sales. This image would go against the whole company’s frame work. Banrock Station is a much saver investment since it already has success in three markets, domestically, in New Zealand and in America. A driving force behind its success in Australia, New Zealand, and the US, was its image as an eco-friendly brand through use of earth-tones in its labels as well as informing the customer on the label of the earth-friendly production methods used to make it. At this point many people were very concerned about the environment and global warming. Therefore the theme “environmental friendliness” really captured the attention of many buyers. To those against the Banrock Station complained that the Banrock image is very boring and does not capture the attention of those looking to buy wine. They complained that the labels were very dull and colorless and people like more colorfully labels that pop. This is why they wanted to go ahead with the Kelly’s Revenge since they believed it was a pop (brl hardy: globalizing an australian wine company , 2014).
Christopher Carson, a very influential person in the company look this debate to heart. He spend many long hours working on Kelly’s Revenge and he did not want to see all his effects go up in smoke. He tries convincing the company in many ways to go with his wine. He explained to the company that he had many years of experience in the UK market and understood the wants of the countrymen inside out and had worked hard to produce a product that would hit gold. He claimed that the company would not be able to produce another wine like Kelly’s Revenge that the UK residents would like as much. He explained that the company would gain more recognition very this wine then Banrock Station because the UK citizens like attractive products, products that glittered in their face. Furthermore, he explained to all the senior staff of BRLH how it was so important not to lose their UK purchasers since most of the company’s revenue came from there. (BRL Hardy- International Bussiness, 2012)
Carson has many valid points. He has the right to be nervous about the UK industry. At the same time other members who are pro Banrock station also have the right to be nervous about instituting the Kelly’s Revenge. Losing their image can have long lasting effect on the company. I feel that it is the company should work on introducing the Banrock Station over the Kelly’s Revenge because Banrock goes in line with the companies long term strategies. The company had a desire in institute three core strengthens and marketing the Banrock wine would help the company complete its desire. Firstly, the company wanted to achieve standardization in branding, labeling, pricing, distribution and promotions. Selling this wine all over the world will help the company achieve this goal. Furthermore, BRLH always wanted to be seen as an eco- friendly, as a company who preserves the world. The Banrock gave off the exact image while Kelly’s revenge gave off a sketchier image. The company wanted to show the world that they cared about that happened the environment they live in and this wine supported this. Lastly, having this standardize product will help the company achieve is desire of opening more markets. Having a standardized product will help them be able to open up more markets faster around the world (BRL Hardy- International Bussiness, 2012).
As one can see the Banrock Station wine works better with the company image. It allows the company to achieve more its expectations and visions. Kelly’s revenge should not totally be disregarded, the company should put this recipe somewhere save so as soon as this wine takes off and people are start to get restless and want a new wine they can quickly introduce the Kelly’s revenge to the market. This will help them introduce the wine faster and will take less financing to establish its grounds. Although, Carson will be devastated by this decision, it should be stressed to him that his efforts were not for naught. They will be used sometime in the future.
References
5 Generations of Devotion. (2014). Retrieved from hardyswine.
Australian Wine Guide. (2012). Retrieved from Bottlenotes.
Barlett, B. (2011). Tranitional Management. New York: McGraw-Hill.
BRL company and hardy company. (2014). Retrieved from Essay UK.
BRL Hardy- International Bussiness. (2012, June 22). Retrieved from scibd. brl hardy: globalizing an australian wine company . (2014). Retrieved from Econ-jobs.
Chang, C. (2014, January 14). BRL Hardy Australian Wine Company. Retrieved from Prezi.
History, Australian viticulture. (2013). Retrieved from WineAustralia.
However, as per the subsidiary perspective of Christopher Carson, who had built the marketfor BRL Hardy in UK,
Kelly’s Revenge would be a better suited product for the followingreasons:
Carson understood the UK market well and Kelly’s Revenge was created by the UK
-based management specifically to suit the consumers’ needs UK had a strong performance and contributed significantly to BRL Hardy’s revenues.
An important element of the company’s strategy was to maintain its share in the critically important UK market that was the largest non-producing wine importer onits path of becoming an international wine company. This would be possible only bybuilding brands specific to UK consumer needs
The product had an appealing concept, designing and label. Where Banrock Stationhad a dull label design and concept not appealing to UK consumers,
Kelly’s Revenge was thought to be seen as a fun brand with an appeal to young consumers or first-timedrinkers
UK was not a branded wine market yet, and a brand driven strategy could not beimplemented successfully in such a market. The consumer mentality was that of anti-branding and a bulk wine orientation would not have catered to the specific consumerneeds, historically, very few mass global brand players had been successful in theirbusiness.
A flexibility in handling branding and labeling would enable better alignment withthe needs of different target markets and easier implementation by the UK-basedteamsThus,
Banrock Station would be a better choice considering the overall strategy of BRLHardy which was centered on creating a global wine company. However, it should beintroduced after adequate testing in the UK market to gauge the potential market response.
However, as per the subsidiary perspective of Christopher Carson, who had built the marketfor BRL Hardy in UK,
Kelly’s Revenge would be a better suited product for the followingreasons:
Carson understood the UK market well and Kelly’s Revenge was created by the UK
-based management specifically to suit the consumers’ needs UK had a strong performance and contributed significantly to BRL Hardy’s revenues.
An important element of the company’s strategy was to maintain its share in the critically important UK market that was the largest non-producing wine importer onits path of becoming an international wine company. This would be possible only bybuilding brands specific to UK consumer needs
The product had an appealing concept, designing and label. Where Banrock Stationhad a dull label design and concept not appealing to UK consumers,
Kelly’s Revenge was thought to be seen as a fun brand with an appeal to young consumers or first-timedrinkers
UK was not a branded wine market yet, and a brand driven strategy could not beimplemented successfully in such a market. The consumer mentality was that of anti-branding and a bulk wine orientation would not have catered to the specific consumerneeds, historically, very few mass global brand players had been successful in theirbusiness.
A flexibility in handling branding and labeling would enable better alignment withthe needs of different target markets and easier implementation by the UK-basedteamsThus,
Banrock Station would be a better choice considering the overall strategy of BRLHardy which was centered on creating a global wine company. However, it should beintroduced after adequate testing in the UK market to gauge the potential market response.
However, as per the subsidiary perspective of Christopher Carson, who had built the marketfor BRL Hardy in UK,
Kelly’s Revenge would be a better suited product for the followingreasons:
Carson understood the UK market well and Kelly’s Revenge was created by the UK
-based management specifically to suit the consumers’ needs UK had a strong performance and contributed significantly to BRL Hardy’s revenues.
An important element of the company’s strategy was to maintain its share in the critically important UK market that was the largest non-producing wine importer onits path of becoming an international wine company. This would be possible only bybuilding brands specific to UK consumer needs
The product had an appealing concept, designing and label. Where Banrock Stationhad a dull label design and concept not appealing to UK consumers,
Kelly’s Revenge was thought to be seen as a fun brand with an appeal to young consumers or first-timedrinkers
UK was not a branded wine market yet, and a brand driven strategy could not beimplemented successfully in such a market. The consumer mentality was that of anti-branding and a bulk wine orientation would not have catered to the specific consumerneeds, historically, very few mass global brand players had been successful in theirbusiness.
A flexibility in handling branding and labeling would enable better alignment withthe needs of different target markets and easier implementation by the UK-basedteamsThus,
Banrock Station would be a better choice considering the overall strategy of BRLHardy which was centered on creating a global wine company. However, it should beintroduced after adequate testing in the UK market to gauge the potential market response.
However, as per the subsidiary perspective of Christopher Carson, who had built the marketfor BRL Hardy in UK,
Kelly’s Revenge would be a better suited product for the followingreasons:
Carson understood the UK market well and Kelly’s Revenge was created by the UK
-based management specifically to suit the consumers’ needs UK had a strong performance and contributed significantly to BRL Hardy’s revenues.
An important element of the company’s strategy was to maintain its share in the critically important UK market that was the largest non-producing wine importer onits path of becoming an international wine company. This would be possible only bybuilding brands specific to UK consumer needs
The product had an appealing concept, designing and label. Where Banrock Stationhad a dull label design and concept not appealing to UK consumers,
Kelly’s Revenge was thought to be seen as a fun brand with an appeal to young consumers or first-timedrinkers
UK was not a branded wine market yet, and a brand driven strategy could not beimplemented successfully in such a market. The consumer mentality was that of anti-branding and a bulk wine orientation would not have catered to the specific consumerneeds, historically, very few mass global brand players had been successful in theirbusiness.
A flexibility in handling branding and labeling would enable better alignment withthe needs of different target markets and easier implementation by the UK-basedteamsThus,
Banrock Station would be a better choice considering the overall strategy of BRLHardy which was centered on creating a global wine company. However, it should beintroduced after adequate testing in the UK market to gauge the potential market response.
However, as per the subsidiary perspective of Christopher Carson, who had built the marketfor BRL Hardy in UK,
Kelly’s Revenge would be a better suited product for the followingreasons:
Carson understood the UK market well and Kelly’s Revenge was created by the UK
-based management specifically to suit the consumers’ needs UK had a strong performance and contributed significantly to BRL Hardy’s revenues.
An important element of the company’s strategy was to maintain its share in the critically important UK market that was the largest non-producing wine importer onits path of becoming an international wine company. This would be possible only bybuilding brands specific to UK consumer needs
The product had an appealing concept, designing and label. Where Banrock Stationhad a dull label design and concept not appealing to UK consumers,
Kelly’s Revenge was thought to be seen as a fun brand with an appeal to young consumers or first-timedrinkers
UK was not a branded wine market yet, and a brand driven strategy could not beimplemented successfully in such a market. The consumer mentality was that of anti-branding and a bulk wine orientation would not have catered to the specific consumerneeds, historically, very few mass global brand players had been successful in theirbusiness.
A flexibility in handling branding and labeling would enable better alignment withthe needs of different target markets and easier implementation by the UK-basedteamsThus,
Banrock Station would be a better choice considering the overall strategy of BRLHardy which was centered on creating a global wine company. However, it should beintroduced after adequate testing in the UK market to gauge the potential market response.