Channel and Pricing Strategies Kudler Fine Foods
Channel and Pricing Strategies
Team B
University of Phoenix
MKT/571: Marketing
Kudler Fine Foods had determined that expanding their markets will allow foreign market growth and increased profits. Kudler Fine Foods has decied to launch a fine and organic wine assortment in the country China. China’s culture and markets align with Kathy Kudler’s vision for Kudler Fine Foods. China is the seventh largest country in the world for wine consumption. This revealed the need for this type of expansion within China’s markets.
This paper will highlight international market justification, channel and pricing strategies for expansion success, a market evaluation as well as innovation and technology factors that influenced Kudler Fine Foods decision to expand its market into China.
International Market Justification
When wine first entered China market the consumers of foreign wines had a "noble" image. Today the "status identification" is no longer a trending issue Chinese consumer behavior is becoming more reasonable and personal. One reason for growth and productivity in China is the improvement of people 's lifestyles. The Chinese income is increasing, and they are becoming more fashionable. In China, drinking fine wine was only for special occasion ceremonies and considered a symbol for high class socialites. As grape wine was becoming more common among the Chinese; they were drinking more wine and better types of wine. Consumers with high incomes and also those who have higher education were more likely to consume wine products. The male consumers are higher than the female consumers by 19%. The age group 25 to 44 is higher consumers of wine than other group (Rubin, 2010). In today 's market, wines are facing obstacles like brand unfamiliarity and price competitiveness. According to the Chief Executive of Vinexpo, Robert Beynat, "China is the seventh largest consumer of wine in the world and soon to be the sixth largest in the coming years. The sales
Team B
University of Phoenix
MKT/571: Marketing
Kudler Fine Foods had determined that expanding their markets will allow foreign market growth and increased profits. Kudler Fine Foods has decied to launch a fine and organic wine assortment in the country China. China’s culture and markets align with Kathy Kudler’s vision for Kudler Fine Foods. China is the seventh largest country in the world for wine consumption. This revealed the need for this type of expansion within China’s markets.
This paper will highlight international market justification, channel and pricing strategies for expansion success, a market evaluation as well as innovation and technology factors that influenced Kudler Fine Foods decision to expand its market into China.
International Market Justification
When wine first entered China market the consumers of foreign wines had a "noble" image. Today the "status identification" is no longer a trending issue Chinese consumer behavior is becoming more reasonable and personal. One reason for growth and productivity in China is the improvement of people 's lifestyles. The Chinese income is increasing, and they are becoming more fashionable. In China, drinking fine wine was only for special occasion ceremonies and considered a symbol for high class socialites. As grape wine was becoming more common among the Chinese; they were drinking more wine and better types of wine. Consumers with high incomes and also those who have higher education were more likely to consume wine products. The male consumers are higher than the female consumers by 19%. The age group 25 to 44 is higher consumers of wine than other group (Rubin, 2010). In today 's market, wines are facing obstacles like brand unfamiliarity and price competitiveness. According to the Chief Executive of Vinexpo, Robert Beynat, "China is the seventh largest consumer of wine in the world and soon to be the sixth largest in the coming years. The sales
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