DFJ Vinhos: Wines in China, A promising but difficult market

iii.
iv.
“New World Wine” is competitive in its quantities and prices, and some wines are able
to have a good brand image ( Yellow tail, Australia), due to the large quantities
exported to the Chinese Market, in particular from Australia, Chile, USA, New Zealand,
South Africa, and Argentina [exhibit 4].
Chinese wines with a well worked image can compete with basic imported wines,
having much lower prices.
Collaborators
The student should mention two different types of collaborators. Firstly, the network formed
in Portugal. As a result of being consultants and forming partnerships with wine producers,
José Neiva Correia is in a better position to obtain the exact type of wine he wants and to
avoid a supply chain shortage.
Secondly, for each market the company needs to find the best ways to put the wine in the
hand of the right consumer. The company can do it by its own, having partnerships in the
foreign market, or pay to a local agent (pull or push promotion strategy).
For the Chinese Market it is extremely difficult to deal with this issue. Firstly, the market is very
fragmented. “Most of the new importers registered in the last few years are logistics
companies, wholesalers, distributors and retailer”. Secondly, to deal with these small importers
it is necessary to have a strong personal presence. Without a well worked network in China it is
impossible to control where the wines are or even to sell the wine at a first instance.
2) What are the company’s main strengths and weaknesses over its competitors?
For this question the student should use a SWOT analysis in order to look at the company’s
Strengths, Weaknesses, Opportunities and Threats, considering the company itself and the
Chinese wine market. This management tool can also help the student to further define the
company’s possible positioning strategies.
Strengths:
International experience and wide network: DFJ Vinhos is present in more than 45 countries
with adapted brands. Working through strategic settled partnerships, the company can reach a
wide range of markets through a influent network, having Germany, UK, and the US as the
main bridges for that network;
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