Sistemas

their wine is more balanced and elegant. By following the trend,
more people will consume New World wines as their wines are more
tannic.
Last but not least, the company did not have its owndistribution
system. As it had little knowledge on its customer base, they did not
really know who their customers were. Consequently, they could not
make appropriate marketing strategies as they do notknow their
target customers exactly.
 Thanks to these problems, the market share of imported French
wine in other countries has dropped dramatically. Plus, there was an
anti-French movement inthe United States and people are opposed
to French products, including wine. As a result, this anti-French trend
make situation of French wine even worse. To tackle the
aforementioned problems andgain back market share, the company
should expand in new markets and grab more loyal consumers for
the wine. China market is one of them and the following analysis will
show why China is suitable.From political aspect, after China’s entry into the WTO in the year
2001, the tariff has been reduced to around 10-14% and in the year
2007, it is even eliminated. With the cancellation of tariff,the retail
price of the wine can be adjusted. A reasonable price combined with
the established brand in customer’s mind, it will favour the
company’s entry into China.
From the economical view, theeconomic environment in China has
been booming in the past decades. GDP per capita of the Chinese
people is increasing and they have higher purchasing power. As a
result, they will be demanding formore luxury goods like wine.
 Therefore, high-income group in China is the target of the company.
Furthermore, social and cultural environment has to be considered
as well. After the adoption ofthe Open Door Policy, Chinese people
have increased the contact with foreigners through different social
activities. Serving customers with expensive brand of wine can be
treated as a mean to...