For its pricing strategies, Carrick primary concerns should be to avoid the evolution of grey markets and as such, this report recommends a skimming strategy that is based on the top end market prices. These strategic initiatives would be essential for achieving Carricks positioning strategy efforts.
The net result is that if Carrick enters the market in the above manner, by the end of the first year this will translate into a profit for the amount of $492937.
3.Recommendations.
3.1 Canada is the market that we recommend targeting. This market has the attributes that suit Carricks product and there is a gap in the market at the top end that Carrick will be able to target. Although there are some regulatory issues that may cause minor problems Canada is far more attractive than other markets. This market has a more consistent and stable level of demand, and New Zealand wines already have an excellent reputation, making market entry much more viable. Canada has the most potential for developing a market that will be profitable in the long term as well as the short.
3.2 Target individual consumers over the age of 24 that have a medium to high income. .
3.3 Target four major Canadian regions moving from the west coast across to the east. These regions are: British Columbia, Alberta, Ontario then finally Quebec.
3.4 Carrick should position its Pinot Noir as a high quality; award winning, New Zealand Pinot Noir.
3.5 Alliances should be formed with other New Zealand wine exporters to have joint activities in advertising and distribution.
3.6 A sales office should be established in Vancouver to receive and distribute the wine to other target markets, to over look advertising and promotional activities.
3.7 Carrick should use registered agents to distribute our pinot noir to selected bottle stores and restaurants (throughout Canada) that are consistent with Carricks positioning strategy.
3.8 Carrick should standardise the brand name but localise advertising campaigns.
