Assessment Task 1 BSBMKG605B Evaluate international marketing opportunities

Market review
Submission details

Candidate’s name Phone no.

Assessor’s name Phone no.

Assessment site

Assessment date/s Time/s

The Assessment Task is due on the date specified by your assessor. Any variations to this
arrangement must be approved in writing by your assessor.
Submit this document with any required evidence attached. See specifications below for
details.

Performance objective
In this assessment task you are required to develop a report assessing and analysing an
international market for consideration for entry by a case study organisation.

Assessment description
For the organisation outlined in the case study provided, you need to select an
international market to consider for entry and conduct research on that market. You will
need to write a report assessing and analysing the selected market, in light of the
organisation and its products. This will include consideration of trade patterns and
agreements, as well as environmental factors and market trends.

Procedure
You will need to create a market review that is no longer than 2500 words.
Your market review report should include detailed research organised under the following
headings:
Organisation overview
● the organisational mission/vision

● the organisation’s strategic goals and aims

● size and capabilities of the organisation

● product/s of the organisation being considered for entry into international market.

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Assessment Task 1 BSBMKG605B Evaluate international marketing opportunities

Global business environment

● a brief summary of the state of the current global business environment, i.e. which
economies are doing well, which are struggling, which international market seems
feasible for the case study organisation to venture into.

Trade patterns, policies and agreements

● trade patterns, policies or agreements in place between Australia and the country
identified
● the potential impact of patterns, policies and agreements on the business and
marketing opportunities.

Environmental factors
● the political, legal, economic, social and cultural factors for the country identified

● the technological and e-commerce factors for the country identified

● the impact of these factors on the business

● the relative ease/difficulty of entering and trading in the market and outline
whether they operate under free trade or protectionist arrangements.

Risks
● the political, financial stability and corruption risks for the country identified

● the legal and regulatory requirements and trade barriers for the country identified

● an analysis and rating of the acceptability of the risks, regulatory requirements and
trade barriers
● the impact of risk factors in light of international business cycles and economic
conditions.

Opportunities
● identify current market trends including key industry areas, significant trade
partnerships, market needs, and consumer characteristics (such as preferences,
segmentation and purchasing patterns)
● identify new and emerging business and electronic commerce markets, and assess
opportunities to enter, shape or influence markets in terms of their fit with the
business goals and directions of the organisation, and their likely contribution to
the business.

Specifications
The assessment will be due for completion at a time specified by your assessor.
You should:
● read the instructions carefully

● check your work and its requirements carefully before handing it in to your assessor

● consult your assessor if unsure of any requirements.

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Assessment Task 1 BSBMKG605B Evaluate international marketing opportunities

You must provide:

● a completed market review.

Note: Your assessor will advise you of when this assessment is due and in which
format (physical or electronic) it is to be submitted.

Your assessor will be looking for:

● whether you have clearly identified a viable international market for entry by the
organisation outlined in the case study provided
● whether you have conducted sufficient research to assess and analyse the market

● a market review report that includes detailed research organised under the
headings listed in the procedure.

Adjustment for distance-based learners:

● no variation of the task is required

● a follow-up interview may be required (at the discretion of the assessor).

● documentation can be submitted electronically or posted in the mail.

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Assessment Task 1 BSBMKG605B Evaluate international marketing opportunities

Case study: Bonatelli Wines Pty Ltd

Bonatelli Wines is located in the heart of the McLaren Vale wine district in South
Australia. A producer of fine boutique red wines, the winery is located on a 65 acre
property surrounded by estate vineyards producing Cabernet Sauvignon, Shiraz and
Merlot.
The business is owned and operated by Tony Bonatelli and the mission is simple: produce
quality, boutique wine at a reasonable price, with the aim of building customer loyalty and
securing repeat purchases. Tony’s goal is to establish and maintain a thriving family
business that provides an enjoyable lifestyle and comfortable standard of living.
In Australia, Bonatelli Wines has no branded product for sale, initially selling its produce
in bulk to larger wineries. However, they have now successfully launched a range of
bottled red wines onto the US market. The winery has the capacity to produce 30,000
bottles a day and currently sells approximately 500,000 cases per year. Bonatelli Wines
currently operates with 300 employees.
Australian wines carry a reputation in the US for offering value for money – providing good
quality at a reasonable price. The Bonatelli wine range retails for 14–17 US$ per bottle,
which is considered to be in the premium sector of the market.
As The USA has a three tier system for wine distribution – importers, distributors and
retailers/customers – Tony has had to work to build relationships across all three tiers
and gain support for his brand. The wines are sold mostly through supermarkets and
liquor retailers.
The recent economic downturn has caused some significant changes in the USA wine
market, reducing the average price per bottle. Sales of domestic wine have increased,
impacting imported products. As a result of these changes Tony Bonatelli is now looking
to explore opportunities in new markets, particularly international markets. You have
been approached to conduct research on a potential market for Tony to consider.

Marketing plan extract

Target market
Bonatelli Wines proposes to target export markets, as opposed to the domestic market in
Australia, where demand exists for boutique premium wines. International markets where
Australian products are recognised and valued are the primary target, with the potential
to also include smaller markets where Australian products are yet to be introduced.

Product
● Bonatelli produces three varieties of red wine: Cabernet Sauvignon, Merlot and
Shiraz.
● Labels will be designed with a Koala in green and gold in order to be clearly and
immediately recognised as an Australian product by potential consumers.
● Wines will be bottled and fitted with a screw top lid to protect wine from corking and
maintain quality.
● Wine will be boxed in cardboard cases, each holding twelve bottles.

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Assessment Task 1 BSBMKG605B Evaluate international marketing opportunities

Price
Wines will be priced competitively within the premium range for the selected market,
representing value for money based on the quality of the wine. Production costs will be
kept low to keep pricing down, with the aim being high volume sales rather than large
profit margins per bottle.

Promotion
Promotion will occur primarily through relationship building with key distributors. To
launch the products, wine tastings and demonstrations will be held regularly to develop
product recognition and familiarity with distributors. Samples of products will also be
made available to distributors to gain business from retailers and food outlets.
Limited advertising will occur through specialist food and wine magazines and
publications.
Promotion will focus on highlighting boutique nature and Australian origin of product.

Place (distribution)
Distribution of product will be facilitated through sourcing local distributors. Wines will be
exported in bulk to distributor in the region and on sold to retailers. Wines will not be sold
directly to the public.

© 2011 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
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