Brl Hardy: Globalizing an Australian Wine Company
Essay title: Brl Hardy: Globalizing an Australian Wine Company
Case Study 1 : BRL Hardy: Globalizing an Australian Wine Company
Chris Day, Group Strategic Planning Manager (BRL Hardy)
Evaluation of BRL HardyвЂ™s strategy for today and tomorrow
Table of Contents:
BRL Hardy Background
Issues within the Wine Industry
Implications for Attaining a Position of Competitive Advantage
BRL Hardy wants to understand the relevancy of its current group strategy within the wine industry today and study the viability of this strategy moving forward. In particular, BRL Hardy wishes to understand the issues and implications that will be encountered by the BRL Hardy group if it pursues its goal of becoming not вЂњjust a quality exporterвЂќ but also вЂњan international wine company with worldwide product access backed by the marketing capability and distribution muscle to create global brandsвЂќ.
This report will provide recommendations on BRL HardyвЂ™s global strategy. The recommendations will be based upon an understanding of the wine industry (both from a suppliers point-of-view as well as that of a consumer) and its likely future development, an investigation of the current and future competitive environment and a ranked list of BRL HardyвЂ™s competences within this environment.
The wine industry is a highly competitive industry that has yet to see emerge a true global company with a global brand. BRL HardyвЂ™s position within this industry is presently, similar to many other companies, that of a small global-volume supplier and distributor that has a large footprint within its вЂњcountry-of-originвЂќ, Australia. The goal of becoming an international wine company is ambitious but achievable; however several changes are recommended in order to make this possible.
The notion of BRL Hardy as an вЂњinternational wine companyвЂќ should become the visionary вЂњbeaconвЂќ for the company. The strategy required to achieve this vision can then be used as the supporting framework. We will use the вЂњthree pillar modelвЂќ of RW&JR Cartwright Consultancy Ltd.
Overarching strategic concept:
Position the BRL Hardy brand within the premium segment of the wine market including the extra dimensions of fun, environmentally friendliness and sustainability (along the lines of the вЂњdomestic turnaroundвЂќ implemented in 1992). The goal is to become the вЂњBMWвЂќ of the wine industry; at the same time, a вЂњglobal convergenceвЂќ viewpoint will be adopted in marketing the wines falling under the new BRL Hardy brand. Local responsiveness should be replaced with a consistent global brand (labelling, brand marketing) (as originally suggested by Millar and Davies) in order to fully exploit the вЂњcross-border synergiesвЂќ..
Pillar 1: 1-3 year strategy
The strategy for BRL Hardy in the next 1-3 years is for BRL Hardy to вЂњshrink to growвЂќ. BRL Hardy should pull all control back to Reynella head office in the short term while the strategic blueprint is finalised; at the same time continue selling into low price/high volume segments already being addressed by BRL Hardy (e.g. U.K., Scandinavia) using brands other than BRL Hardy such as the DвЂ™istinto brand. Once the dimensions of the вЂњglobalвЂќ BRL Hardy brand are determined, a period of internal marketing should be undertaken to вЂњsellвЂќ the idea to employees; without buy-in from employees the vision will remain out of reach. At the same time, market research should be undertaken to determine the current level of customer вЂњawarenessвЂќ within various markets especially the growing US market, and possibly looking to Asia, Middle East.
Pillar 2: 2-5 year strategy
Launch the premium BRL Hardy wine; this wine should be made from Australian grown grapes. Initially sales could be within Australia (a fairly developed consumer wine market). Slowly look to introduce this