Marketing Plan of Export Brown Brother Red Wine to Canada Marketing Plan

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Marketing Plan of Export Brown Brother Red Wine to Canada

There are going to be two different Brown Brother red wines that will be exported to Canada to include: Cabernet Sauvignon and Patricia Cabernet Sauvignon. To determine the underlying profit margin from this kind of a venture requires: examining the budget and control for the project. Together, these different elements will provide the greatest insights, as to the underlying profit margins of engaging in these kinds of transaction.

Budget

To determine the overall profit margin, means that we must examine the budget. This will be accomplished by using the basic formula list below.

Revenues = Selling Price x Units -- Cost Price x Units

When you apply this formula to the first wine that is going to be exported (Cabernet Sauvignon) the total revenues are $6,000.00. Below are the different calculations:

Revenues = $16.00 x 10,000 -- $10.00 x 10,000 = $6,000.00 ("Cabernet Sauvignon," 2011)

The overall revenues for the Patricia Cabernet Sauvignon are $38,000.00. Below are calculations for the profits on this product.

Revenues = $48.00 x 10,000 - $10.00 x 10,000 = $38,000.00 ("Patricia Cabernet Sauvignon," 2011)

The table highlights the revenues in comparison with the prices and costs for both wines.

Prices and Costs for Cabernet Sauvignon and Patricia Cabernet Sauvignon

Product

Retail Price

Costs

Revenues

C Sauvignon

$16.00 ($16,000.00)

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$10.00 ($10,000.00)

$6.60 ($6,600.00)

P Cabernet Sauvignon

$48.00 (48,000.00)

$10.00 ($10,000.00)

$38.00 ($38,000.00)

Marketing Plan on Marketing Plan of Export Brown Brother Red Wine to Canada Assignment

When you analyze the table, the total profits of exporting the Cabernet Sauvignon to Canada would be: approximately $6,600.00. While the Patricia Cabernet Sauvignon, would produce revenues of: $38,000.00. The average retail price per unit was used, to determine what the product will sell for. While the costs for delivering the product was estimated. These different elements are important, because they can provide a conservative assessment of the overall costs associated with importing wine to Canada.

Control

The sale of wine is dependent upon: weather conditions, fluctuating currencies and fuel costs. These three factors are important, because they will have a dramatic impact upon the underlying profit margins. Evidence of this can be seen by looking no further than a report that was published by FM Magazine, which found that the wholesale costs of wine have increase by 20% since 2003. This is because, these factors and a push from real estate developers, to purchase many wine farms (for their land value). Over the course of time, this has caused the price of wine to increase. As a result, we more than likely will see similar challenges, with any exports that are sent to Canada. (Stafford, 2010)

The use of intermediaries would play a major role in helping to lower cost of shipping the wine. This is because, they… [END OF PREVIEW] . . . READ MORE

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