Global Marketing

Yellowtail Wine Expansion Into India

Yellowtail wine is an Australian wine company that was developed by the Casella family in 1957.  The vineyard produces approximately one third of its grapes in the Riverina Griffith, New South Wales, Australia while the rest of the grapes produced from other vineyards in South Eastern Australia.

Now that Yellowtail wine has already globalized and entered countries such as China, the United Kingdom, and United States of America, it is now hypothetically considering entering India.  India can be viewed as a great opportunity to export wines and and to continue to grow the company further internationally.

According to Wine intelligence India is widely recognized as a global power house. India has a population of 1.3 billion which makes it second most populous country in the world and has the the largest youth population of over 800 million people under age of 35. India has a big economy and according to forecast, India's GDP is suppose to be 3958.81 billion US dollars by 2025. This presents great opportunity for growth across all consumer products.

The Australian wine company will continue to follow previous trends in its marketing strategy by attracting the Indian population with a value and cost image in regards to its wine.  With relatively low production costs in Australia, Yellowtail will increase its supply in bulk amounts and export large quantities of wine to India at a relatively low price.  Keeping the wine at a low cost after shipping and other expenses will be an important factor in attracting the Indian population with its wine to make sure it is not too expensive when it is ultimately being sold in the retail stores.

When observing India prior to Yellowtail'sentry, its important to understand its classes and different tiers.  Yellowtail will seek to attract its middle to lower class population with a very affordable wine.

The Indian culture used to prohibit wine and alcohol consumption as they saw it as a taboo but now the culture is transforming and alcohol consumption is becoming increasingly more popular in modern India. According to Wine intelligence in India traditional alcoholic beverages like rum, whiskey and beer continue to dominate the market. However, due to the increase in availability of locally produced wine in last few years, wine has pawned consumer interest. With a rapid urbanization, changing lifestyle and increase in disposable income and also the large youth population, this is an extremely important market for Yellowtail to capitalize on and grow its brand into a global powerhouse in the wine industry.

Wine would be the preferred alcoholic beverage for the Indian market because the people in India generally prefer drinks which contain less alcohol. Indians eat spicy food and prefer sweet drinks with their meals. Also there would be very less competition for Yellowtail because its an untouched market. There are very few companies who export wine to India and there are very few local companies who make wine in India thus providing Yellowtail with a great opportunity to enter the country.