Context of Practice 5: Patient Deterioration and Management

Executive Summary of Penfolds

This report will articulate how the market will successfully expand its branch into a new country. It will include the analysis of cultural, political, economic, social, technological, and environmental factors. The extensive examination and determination of challenges and opportunities that the company will face will be presented in the report.

The regulations in the market surround alcoholic products are stringent in the United Kingdom. This is considered as one of the most challenging factors that Penfolds brand will face during the venture. The United Kingdom is considered with providing positive foreign importing opportunities as the changes to trade agreements decrease the tariff on wine to Zero.

In the current period, the alcoholic industry is dominated by Beer and this is another challenge faced by marketing the product. However, the consumers are getting more and more aware that the drinks have benefits associated with drinking. Also, due to the preference of customers towards the specialty of wine the foreign industry is leading the market especially in Australia. Competitors differentiate the Penfolds brand from other drinks by highlighting the quality and brand of prestigious characteristics.

Finally, the end suggestions done by the marketing mix about the Penfolds will be explored in the report. It will focus on product, place, price, and promotion to create expansion over other countries. They will provide the plan to focus on the activities and strategies that the company has to follow to reach the new targets and meet objectives. This plan will help in creating awareness of the brand in the overall market share within the Alcoholic industry.

Introduction to Penfolds

Penfolds is the company that was founded by Adelaide in the year 1844 by Dr. Christopher Penfold. He developed this wine with the aim of medicinal operation into the bes5 alcoholic brand. The brand is subsidized by Treasury Wine Estates, which its parent company to other alcoholic brands. This brand has acquired several vineyards within the home country that is Australia including Barrosa Valley and McLaren Valley. Penfolds produces a collection of white as well as red wines to receive international and national acclaim. In the United Kingdom, it has achieved Red winemaker of the year award in 19999 and 2000, similarly in 2014, and became Winery of the year since 2012.

The success of Penfold goes to Australia with a range of marketing and business strategies since its inception. The industry has established its name for very long to acquire the best resources for wine production and manipulation of product pricing. It has contributed itself to Asia, America, New Zealand, Australia, Europe, Africa, and the Middle east. It is mainly followed during the celebrations in Australian culture and is said to be prosperous in foreign markets also. Penfolds is a brand that has a great opportunity to expand its market share in the United Kingdom and achieve its target.

SWOT Analysis of Penfolds


· Luxury brand

· Iconic image

· Shared 5.2% growth in Australia.

· Awarded with number of prizes


· Increased interest of customers

· Increase in consumer expenditure

· Outlets of alcohol increasing

· Export options

· Increased disposable income

· The rise in alcohol consumers

· The emergence of restaurants, clubs and bistros trend

· Increase in number of outlets


· Supply issues

· Lack of marketing and advertising opportunities

(Armstrong, Kotler, Harker & Brennan, 2018)


· Advertising and marketing challenging regulations

· The biggest competitor is Beer

Environment Analysis

PESTEL Analysis

Macro-environment factors

Political environment

There is everywhere corruption in the country at entry-level. Though many schemes have been developed for anti-corruption, still also the government has not got successful in eliminating it from roots. Many debates have been organized for effectively placing the control and restoring the orders for political reformation. The administration here in the United Kingdom suffers from ineffective government bureaucracy, conflicts, and bribery of interest in both private as well as public sectors, particularly in politics and business. If Penfold has to incorporate its business in the United Kingdom then they have to follow some strategies to ger the prevented of corruption activities.

Economic environment

The positive relationship is there between Australia and the United Kingdom. The United Kingdom shares a good economic status and actively participates in trading. It has eliminated the majority of tariffs on goods imported from Australia and reduced barriers in this manner. Australian wine is mostly preferred byte people of the United Kingdom and spends a good sum of amount. It has a good supply of beverages, importing, and distribution of drinks throughout the kingdom (Song, Moon, Chen & Houston, 2018).

Socio-cultural environment

Westernization is majorly followed in the country and it has become abundant in western society. Television, clothing, motion pictures, cosmetics, automobiles, food even toilet has been followed into the culture. It is known that the aesthetical traits have an association with westernization with wealth. The consumers in the United Kingdom have developed a large demand for Penfold wine. The residents of the United Kingdom feel that moderate consumption of alcohol aids in minimizing the risk of health-related problems. This adds value to the benefits of wine and thus resulted in positive growth in the industry.

Technological environment

Otherwise, the wine industry has nothing to do with the technological environment, but, the range of recreational activities somehow devote to technology directly or indirectly. The culture of weekends off and celebrations is prevalent in the country that has the advantage of wine products. Moreover, marketing promotions and awareness are nowadays done by digital platforms. The United Kingdom has good technological advancement in the country and everyone uses digital gadgets in their everyday life. So, it means That technology is supportive in the United Kingdom to create a brand image in the country (Perreault, 2018).

Environmental factors

The environment of the United Kingdom is very supportive in terms of alcohol consumption. They have a large number of alcohol consumers with a positive attitude. The consumers are interested in spending their money on entertainment in the country. The emergence of restaurants, bistros, and clubs have boosted up the sales within the country. They consume alcohol with a good perception that it has various health benefits.

Legal environment

This is the biggest challenge for Penfold to launch and market its product in the United Kingdom. Acts and regulations have been followed in the country that strictly governs alcohol purchase and sales. The import and export also have to be taken care of. In the United Kingdom, there is the rule that the drinks are to be sold with the display of warning messages. There is a restriction in the country on some type of alcoholic drink. The advertising of alcoholic drugs in the country must not induce drinking. The discounts and promotional purposes have to be carried out with specific terms and conditions.

Harsh penalties are imposed by the government if anybody does not follow the rules. Penfold has to be very clear with the rules and regulations to conduct business in the country.

Penfolds must consider the cultural, political, religious, and linguistic challenges to have a good market place of their product so that it can foster more benefits to them (Paul, 2018).

Marketing 4 P’s


B&BB currently has distributed over 26 Penfolds products throughout the country. It serves 18 red wines, six white and two-port wines. Red wine contributes to 70% of market share within the industry by focusing on its main products. The changes will not be made in the product delivery.

In addition to it, Penfold has the contribution of local growers to create a new wine with their produce. The wine influences the local level and taste in the country. Due to globalization, Penfold earns a lot from consumers and contributes to corporate Social Responsibility by supporting local wine producers and strengthening the confidence of consumers in producing resonance with consumers.


The pricing of Penfold is as follows:





Penfolds Bin 23 Adelaide Hills Pinot Noir 2013 Vintage

Dry Red


1050 Baht

Penfolds Bin 2 Shiraz Mourvedre 2012 Vintage

Dry Red


850 Baht

Penfolds Bin 407 Cabernet Sauvignon 2012 Vintage

Dry Red


1773 Baht

Penfolds Khao Tai Cabernet Sauvignon

Dry Red


1275 Baht

Penfold's pricing compared to Pernod Richard's Jacob's Creek



Penfolds 1- Bin 23 Adelaide Hills Pinot Noir 2013 Vintage


Jacob’s Creek 1- Reserve shiraz 2012 Vintage


Penfolds 2- Bin 2 Shiraz Mourvedre 2012 Vintage


Jacob's Creek 2- Reserve Cabernet Sauvignon 2012 Vintage


Penfolds 3- Bin 407 Cabernet Sauvignon 2012 Vintage


Jacob’s Creek 3- Double Barrel Cabernet Sauvignon 2012 Vintage


Penfolds 4- Khao Tai Cabernet sauvignon


Jacob's Creek 4- Reserve Cabernet Sauvignon 2012 Vintage



The place where the Penfold product will be sold, lists in target places such as prestigious restaurants and hotels within the country. The report of best hotels annually has to be analyzed to do the evaluation and find out more appropriate restaurants throughout the continent to meet high targets. Similarly, five-star hotels would be focused on where Penfold will sell its products. Moreover, well-credited bars, hotels, and restaurants are to be frequently targeted at the ideal places to sell the products and enhance brand image and popularity (Olson, Slater, Hult & Olson, 2018).


The Penfolds have to ensure that the appropriate marketing strategies have to be followed through advertisements and promotional activities. The activities should be selected that appeal to the target market's psychographic interest in operational areas to affect at the emotional level. The engagement within the programs allows using the products and placing consciously to increase brand image. The promotional activity will make the use of television to attract customers. Also, advertisements will include the use of transportation while reaching target customers. But, this should be kept in mind that the activities should comply with the regulations to instill the brand association with prestige and quality in the target market. The encouragement should be done by directing and motivating them to purchase the products and hence meeting marketing objectives (Hunt, 2018).

Segmentation, Targeting, and Positioning

Segmentation of Penfolds

The marketing strategy involves the segmentation of the product according to the buying behavior of customers. The expectations, needs, and demands of buyers are analyzed to know the dependence of heterogeneous and multi-faceted factors. The factors are such as lifestyle, age, gender, values, and income that helps in narrowing the audience and defined groups. To know the segmentation of products, market segmentation surveys are conducted to know the common methods that can be used for obtaining the attention of specific customers by sharing common characteristics.

It involves understanding buyers' behavior and gathering information through surveys. According to the analysis reports, Penfolds can diversify and divide the market into small groups. This could be done by psychographic, geographic, behavioral, and demographic characteristics of customers (Macarthy, 2018).

Here are some segmentation techniques that the company can follow while emerging into a new market for development.

  • According to geographic segmentation, the market could be divided into regions, countries, and cities.
  • According to demographic segmentation, Penfold can decide to divide the market into other markets based on ethnicity, gender, income, and age.
  • The behavioral segmentation allows deciding the product that how it could be divided based on occasions, frequency of use, loyalty for the brand, and benefits to customers.
  • The psychographic segments deal with grouping the individuals based on values, traits, lifestyle, attitudes, and interests.

Penfold should combine all the sections and analyze taking better decisions to expand its business in the United Kingdom.

Targeting and Positioning of Penfolds

After segmenting the market into smaller groups based on customer demands, Penfolds should wisely select the trends based on the expectations and needs of the company's capabilities and resources.

Targeting is considered to be a very good effort done to evaluate the attractiveness of customers and potential growth in different segments. People choose these segments based on characteristics and resources of the company, objectives related to growth as well as capabilities.

The attractiveness at the commercial level and growth of each segment can be evaluated on the following indicators such as:

  • Identification of segments to be in the appropriate size
  • Have defined differences
  • Estimation of profits that will help in exceeding additional costs in the market
  • Accessibility of segments (Jain, 2019).

After the process of segmentation took place, the right market should be the new target. Penfolds should then concentrate on the clear positioning of the product to develop a positive attitude in the minds of consumers. The positioning strategy could be effective only when the company will focus on What?, How?, Whose?, How? And Why? To the product. Answer to all these questions will help in the appropriate design of the product. The analysis of data will help in getting good brand positioning by the company.

Key strategies that Penfolds should follow are:

  • Cost leadership
  • Cost focus
  • Differentiation leadership
  • Differentiation focus

The competitive advantage model will help in analyzing distinctive competencies, cost advantage, value creation, resources, and capabilities of the company to launch the product in a new market.

Conclusion on Penfolds 

From this analysis report, it can be said that Penfolds has great opportunities in the market for expansion. It is one of the successful brands of wine in Australia that is sharing its highest market size. The environment of the United Kingdom is suitable in terms of political, socio-cultural, technological, legal, and economical from the investigations. Various suggestions have been derived from Penfold's marketing mix to analyze the trends and regulations. It can sell its products with the use of promotional activities that are followed to reach the target customers and meeting the organizational objectives. Implementation of this plan will involve brand awareness and overall learning and implementation of strategies within the United Kingdom's market.

Recommendation for Penfolds 

After knowing the issues and problems of the company, some recommendations that can help the company to share a large size in market growth are the analysis and estimation from reports. Firstly, the company should think about broadening the market share for wine portfolio significantly. This recommendation can have great importance as it could create fewer problems and help the company to expand in another direction. The next recommendation for Penfolds would be the adoption of high promotion strategies and following the techniques like distribution of magazines to the business class people as per their segmentation. Moreover, they should focus on one permanent strategy of promotion to retain their earlier clients and build new ones.

All these points will ensure that the company would gain more customers especially those who are and can pay them. For the ultra-premium and premium wines, the company should limit the production and sales so that they could retain the value of their product and not launch their product as usual ones. The price should be such that the value of the product remains sustained to ensure a high premium product. Moreover, the research should be done by the company to know the supportable environment and secure the growth of innovations and technologies. The advanced techniques and innovations will help the company in the future to achieve higher profits and margins without sacrificing the quality of grapes and wines. According to my opinion, the strategy would work effectively and efficiently in the attraction of customers and enhancing quality without spending much money and resources.

References for Penfolds 

Armstrong, G. M., Kotler, P., Harker, M., & Brennan, R. (2018). Marketing: an introduction. Pearson UK.

Hunt, S. D. (2018). Advancing marketing strategy in the marketing discipline and beyond: from the promise, to neglect, to prominence, to fragment (to promise?). Journal of Marketing Management34(1-2), 16-51.

Jain, S. C. (2019). Standardization of international marketing strategy: some research hypotheses. Journal of Marketing53(1), 70-79.

Macarthy, A. (2018). 500 Social Media Marketing Tips: Essential Advice, Hints, and Strategy for Business Facebook, Twitter, Pinterest, Google+, YouTube, Instagram, LinkedIn, and More!. CreateSpace Independent Publishing Platform.

Olson, E. M., Slater, S. F., Hult, G. T. M., & Olson, K. M. (2018). The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management69, 62-73.

Paul, J. (2018). Toward a'masstige' theory and strategy for marketing. European Journal of International Management12(5-6), 722-745.

Perreault, W. D. (2018). Essentials of marketing. New York: Mc Graw Hill.

Song, R., Moon, S., Chen, H. A., & Houston, M. B. (2018). When marketing strategy meets culture: the role of culture in product evaluations. Journal of the Academy of Marketing Science46(3), 384-402.

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