Question

1. Does it make sense for Spanish Vines to consider entering the Colombia market?
2. Which of its existing labels or brands should Spanish Vines introduce in its Colombia launch strategy? Be specific regarding house versus partner brand, label and type of wine.
3. How can Spanish Vines begin moving Colombian customers through the purchase process? Specifically, what kind of message should it use, and what media channels should it use?
4. What are the biggest challenges Spanish Vines will face when establishing its brand(s) in Colombia, and how can it overcome them?

Answer 1

*** Kindly note that the test doesn't exist here on Spanish Vines and Colombian Market as a part of the question, However, i have tried my best to incorporate all Market Entry techniques herein ***

1) Spanish Vines was formed in Spain and they had access to high quality grapes to make vines. To expand its horizons, it moved out of Spain. Government of Columbia noticed that the European vines were dominating the Columbian market. The home brands were under a lot of pressure and stiff competition from Foreign brands like Spanish Vines. Hence, they increased the VAT rate to favour home grown brands and this became increasingly difficult for players like Spanish Vines to flourish. A very minimal section of the Columbian economy was ready to pay for the increased prices as well.

However, in 1012, the raise on VAT was eliminated ,basis the treaty signed between EU and Columbian Government.

VAT elimination did help Spanish Vines in Columbia. Also, they focused on effective advertising and tried to adopt methods to lower the price further for the end customer.

2) Spanish Vines can introduce wines both in-house and in partnership with some local players in the market. The idea of market and customer segmentation to be followed to bring in products suiting all needs of the customers.

In-House brand gives them the uniqueness, whilst partnership with a local player can give them cost and technology advantages

3) An effective advertising campaign to reach to the end customer is important. Both print and digital media can be used. The journey of SV( Spanish Vines) from inception , highlighting the success story in other markets to be showcased in the media campaign. Step by step approach to be follow and reach to a stage wherein Customer can identify SV synonymously with a proud Wine brand in Columbia.

4) Biggest challenges is brand recall, high costs of the wines and customers' key and loyal association with the existing local brands. Also, Technology used by SV have to be in line with the latest technology. New market entry is very closely monitored by in-country regulations and trade policies. A keen watch and to adopt quickly in line with the local laws and policies is critical from an overall governance standpoint.