Case Study: The Singapore Wine Market

Singapore rapidly growing economy has seen the sophistication of alcohol consumers in the country, which in this case is the increasing popularity of wine drinking. The rising numbers of female wine drinkers in the country has seen an opportunity for wine producers to market their products to them. The Singapore wine market grew at a compound annual rate of 7.2% from 2009 to 2013 and which a total of 9.6 million liters were consumed in 2013 alone (Marketline, 2013).

This paper focuses on how Australian wine brand “Penfolds” can take advantage of the wine market in Singapore by conducting an environmental analysis to discover the factors that may affect the company. With a CAGR forecast of an increase of 28.4% from 2013 to 2018, there is

Introduction to Penfolds’

Despite a relatively brief winemaking history compared to its French counterparts, Australian wine brand Penfolds’ has propelled itself to become one of the major players in the market.

With its iconic ‘Grange’ being the first Australian wine to be awarded 100 points by Robert Parker WineAdvocate and the WineSpectator (Penfolds, 2014), it is one of the rare blend that have achieved much success in the wine industry. Currently under the big umbrella of Treasury Wine Estates, it catered to consumers in over seventy countries (Calliard, 2013).

Widely regarded as the most famous Australian wine brand, it positions itself as a luxury product providing wines of high consistency and quality to its consumers. Releasing its wine vintages only once during April and May yearly, Penfolds’ provide limited allocations for its wine markets in different countries, making it an exclusive product for consumers to own (Calliard, 2013). From 2014, Penfolds’ will provide enough wines for its consumers to last the whole calendar year due to the great

According to Lisa Granik (2010), one of 25 accredited Masters of Wine in the U.S., Australian wines are made immediately drinkable regardless if they will age or not, and will improve with time. Going easy on the consumers’ palate, Australian’s wine brands such as Penfolds’ can be an excellent option for new and old wine drinkers and may be preferred over its older rivals.

2. Marketing Strategy of Penfolds

Penfolds aim to achieve an increase of 30% in wine sales in Singapore within half a year through a two months long promotion campaign to acquire new customers and enhance their brand image as being a luxury