Marketing Channel

Idea Number 2

To: Mark Siders Ph.D.

From: Mohammed Basiony

Subject: Supply Channels

Article Summary:

The author provides a thorough review on the importation of wine from wineries outside Hong Kong and Mainland China region. The chain of movement can be as follows: Foreign Wineries -> Independent importers -> Consumers. Another route can be through the following channel: Foreign wineries -> Conglomerate Off-trade -> on-trade -> trade shows -> consumers. The target destination is the consumer in both channels. Transportation of wine products is essential. The firms involved in importation and export of wine needs a transportation system that is efficient to deliver the products promptly to meet demand. A shipping system has to be established to import wine from countries such as Australia and France.

My opinion

The channels in Hong Kong and mainland China are also crucial to allow for better supply of the wine products in the local market. The storage facilities owned by the firm are also vital. Since the company orders on a large scale, storage facilities are incredibly crucial. Support companies ensure that issues like quarantine and customs clearance, the levied tax on the cargo for their release, and temporary storage of the load in warehouses are all dealt with and go smoothly. Increased competition in the market and the cutting-edge innovation and creativity in the wine trading and service industry means that an active marketing policy is necessary.

Source: Noppé, R. P. (2012). The rise of the dragon: The Chinese wine market. Cape Wine Academy.