Country Notebook – Part A

A. OVERVIEW OF COUNTRY/BUSINESS ASSIGNMENT – 5% OF PROJECT GRADE
1. Describe relevant factors of the business (this is a modified version of the Notebook: I. CULTURAL ANALYSIS, subsections I. & II.)
Company name:
Golan Heights Winery

Chief Executive Officer:
Anat Levi Rushansky

Location:
Katzrin on the Golan Heights.

History
Founded in 1983 in Katzrin on the Golan Heights.
Golan Wines held 18 percent of the domestic market and 38 percent Israeli exported wines. Exported 20 percent of production to 25 different countries!
In 2012, Golan Wines was a company owned by four kibbutzes and four mochas who managed the vineyards.
As consumers were moving into the middle and upper classes, consumer consumption increased exponentially. Consumers directed towards international brands and demanded the world’s best products; including wine. New distribution outlets and exposure of China’s affluent middle classes to overseas travel has created a market for good wines.
Product(s)
Three distinct labels:
• Yardmen
• Gala
• Golan
Marketed Wines:
• Yarden Cabernet Sauvignon
• Yarden Pinot Noir
• Yarden Syrah
• Yarden Mount Hermon Red
• Yarden Katzrin Chardonnay
• Yarden Sauvignon Blanc
• Yarden Viognier
• Yarden Geweurztraminer
• Yarden Mount Hermon White
• Yarden Heights Wine
• Yarden Rom
• Yarden C.S. El Rom
• Yarden C.S. Yonatan
• Yarden Syrah Tel Phares

Current international activities, if applicable:
China and Israel now promote cross cultural learning and effort.
• In 2009, an “Experience China in Israel” festival was held to celebrate the bond between the two countries.
In 2010, China has become the world’s largest exporter; second largest economy in the world.
• China’s beverage industry was among the country’s fastest growing sectors.
Accession to the WTO gradually removed market barriers and trade restrictions; creating increased competition among domestic and foreign operations.
• Partnerships between local players and multinationals allowed for rapid development.
Building relationships in China market. Each distribution channel required different marketing approaches.
Internal or external issues:
• Lack of consumer demand.
• Vendors and Distributors did a poor job pushing sales of products.
• Most Chinese consumers who sought imported wines wanted them from Europe, in particular France.
In 2008, key wine-consuming countries fell into recession. The industry worsened.
• High government debt
• Government spending cuts
Wine counterfeiting; quality consistency; lack of product and poor production management were some concern to the market.
• China was a money-saving culture and was typically price sensitive to goods, products or services.
• Presentation and quality was utmost importance.
• Product packaging, Price and Promotion are significant for distribution in China.
2. Describe the challenge/international activity
Conducting business in China requires an important cultural understanding.
• Status and respect based on age and family.
• Older businesses are viewed more favorably.
Public product consumption is concerned with conformity and status. Whereas, private use is less important when during the purchasing process.
• Chinese consumers are not brand loyal.
• There seemed to be a disappointing demand for Israeli wines.
Successes and Setbacks:
• United States: In 2011, the US market overtook France and became the world’s largest wine consuming nation by volume.
• Europe: Battled the debt crisis and now reentering the recession. France, Italy, Spain, Germany, and the United Kingdom slowed.
• Australia: The market suffered from oversupply of wines. Resulted in aggressive discounting.
• Argentina: This market continued to prosper.
Emerging Markets: Like China, illustrated a huge market for wines and demand increased, as well as the size of the middle class.
3. Advise the target country
The target country is China. Golan Heights Wines wanted to take advantage of this market. China demonstrated incredible future growth.

Target Audience:
Wine demanded by consumers between the ages of 30 and 54.