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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Table of Contents

Executive Summary 3

Introduction 4

Invivo at a Glance: 4

Wine Industry in New Zealand: 5

Analysis of the marketing environment 6

PESTLE Analysis: 6

Political: 6

Economical: 6

Social 7

Technological 7

Legal 7

Environmental 7

Characteristics of target market: 8

Competitor Analysis 9

Marketing Goals 11

Marketing Mix 13

Monitoring and Control 14

Appendix 15

Works Cited 15

Executive Summary

Invivo is a New Zealand based wine manufacturing company that has a widely acclaimed quality of wine products to the extent that celebrities from Hollywood acclaim and endorse their products however there is an issue with the home market where despite of such high quality products, the company faces fierce rivalry by Villa Maria and Jacob's Creek wine brands. The report suggests that the the company should direct its marketing efforts in a more New Zealand based light and help the company establish a name in the home market. The proposed market strategy has also advised that the company should adopt a cost leadership approach to market their products to make it available to more of the New Zealand population in all the wine consuming demographic. The report finally suggests the marketing mix and its practical application followed by a ‘SMART' Objective approach to the proposed strategy to realize the aim of becoming the market leaders in the home market.


Invivo at a Glance:

Invivo is one of New Zealand's leading wine producers –who have won over 150 medals and many trophies since their launch in 2008. By focusing on their customers' needs and on innovation, the company has managed to grow their business rapidly. In 2015, it became New Zealand's first equity crowd-funded wine company. After a second successful equity crowdfunding campaign in 2018, the company also now holds the title of the Southern Hemisphere's largest crowd-funded company for any business, with over $4.7million raised. The operations of the company recently moved into one of New Zealand's oldest wineries, where they continue to turn some of the world's best grapes into wine that's picking up fans worldwide. (Invivo, 2018)

Product Line:

The company currently offers a wide variety of Marlborough wines which is a direct competition to the French ‘Pinot Gris' to other competitors like Villa Maria and Jacob's Creek.  The best selling products of the company are their Chardonnay, Pinot Gris wine and “Graham Norton” wine range which is essentially a red wine. Further the company also has a collection of red and white wines which are essential grape wines. (Invivo, 2018)

Current Position:

As an extension to the last point, the company has a very high acceptability in the novelty of the gentry that likes to try and consume wine either occasionally or frequently in respect to the foresaid factors. The company has a well known image in the international market as per the website of the company and the reviews on the online portals dedicated to the topics are also evident of the product quality. (Invivo, 2018)

Value Proposition:

The value proposition comes from the product's ability to compete international level wines as is evident by the company's accolades in the past and also have a very high susceptibility to new arenas in international markets which is evident by their popularity in the international market from “Cork to New York” as per their website. Following the exceptional quality, the price advantage of the wine has also been an influence factor in the production of the wine since the target market set is New Zealand which is home to the company. (Invivo, 2018)

Wine Industry in New Zealand:

As per a report by Deloitte in December 2017, the wine industry in New Zealand is shown to be largely in good shape. Aggregated survey results showed that as per balance sheets of the business for the companies in question, appear to be well positioned for future growth due to the evident fact from the research that the profitability has grown steadily in a period spanning the last 5 years. (Deloitte ANZ, 2017)

Analysis of the marketing environment

PESTLE Analysis:


As per (Barker, 2001), the permissive and regulatory regimes of the government towards the wine industry in New Zealand emphasise on quality which means the production process has a regulatory condition for the companies producing such products have to abide by. However, the government is not meticulously following the operations but the emphasis on the final product is a great cause of concern for the companies since they have to pass through multiple screening processes which includes ethical considerations. This becomes the reason that the wine industry in New Zealand is very strongly supported by the government jointly. (Russell Prince, 2001)


The value of New Zealand Dollar has been prone to fluctuation like any other currency but not to very high levels which means there is a consistent stability in terms of the business environment financially. This means the company's risk-management is favourable in terms of the economical prospect which also makes the company's like Invivo, a very lucrative option for trade in the international markets. (Central Intelligence Agency, 2017)


There are social factors such as quality of life which affect the buying preferences of the target consumer which helps us understand that the company. (Central Intelligence Agency, 2017)


In terms of technological advancements, the country has a plethora of well built road networks, well mechanized machinery to support businesses and state of the art safety regulations at workplace making it a safe place for companies to run operations smoothly and effectively altogether. (Central Intelligence Agency, 2017)


 The country has a robust legal system which has no scope for corruption which is as a matter of fact very low. The tax structure of the country is also designed to support new businesses with a subsidy offered for various agricultural sectors including grape and wine production. There is also a tariff wall placed on imports and exports however due to the nature of business, the open marketing of alcohol has a limited scope in terms of advertisement but is not limited to location, so there is a fair chance for the company to advertise their products according to the specified guidelines by the legal structure of the country. (Central Intelligence Agency, 2017)


The environmental awareness in the country's population is really high with no acceptance to environmental degradation and by the use of all sustainable means, the businesses run in an ecologically balanced way. (Central Intelligence Agency, 2017) The company can use this virtue in a very positive way by indulging into CSR initiatives like the use of recycled glass and also campaigning recycle initiatives for the company's used products. This could create a positive brand image for Invivo Wines in the ecologically inclined people

Characteristics of target market:

The target market for Invivo's product-lines could be divided into three segments which would be ideal for the product range. They are as follows:

Image Seeking customers: They are potential customers who would buy the product for status symbols, just for discovering different kinds of wines, or ones who are open to innovative packaging. These customers would typically include a range of demographics from the youth to elderly people who are wine consumers. (Adams, 2010)

Enthusiasts: They are the kind of customers who are looking forward to buy the products for recreational purposes. The other reasons that Include in this segment of customers are the knowledge about wine that these people have and also live affluent lifestyles in the suburban or country setting. (Adams, 2010)

Loyal Customers: These are the kind of customers that like to try wine from well established wineries and also prefer to entertain while doing entertainment and daily life. For such people, the premium range of Invivo's products for formal occasions given the exceptional taste which is highly acclaimed would become a very likely option. These customer bases tend to stick to brands for such speciality products however they are regular customers who buy the wine like convenience products from the economic ranges which in Invivo's case is an option due to the wide variety of products.

(Adams, 2010)

Competitor Analysis

Market Definition: The market for Invivo is the ‘Wine enthusiast' customer base who is well versed by the wine standards and has a very keen taste of the available products in the market and makes a very high emphasis on the quality of the wine being offered to him in the market.

Other customer segment in the market is the ‘Overwhelmed' customer and is the kind of customer who has a very high emphasis on the brand image. The target product towards these customers would be the premium range like the ‘Graham Norton' wine collection which is more of a collector's product and is highly a speciality kind of product. This would make the market image as a very ‘renowned' brand and also make the brand more domestic phased which is a need for the company since the international recognition is very high for Invivo's products. (Investopedia, 2016)

Direct Competitors: The two main competitors for Invivo are Villa Maria wines and Jacob's Creek Wines.  They are the ones with a very high market share in the market with Jacob's creek at the top of the biggest market chunk due to its international reputation. Secondly, the company Villa Maria has the second highest market share due to very diverse product line and international brand image. The main competition that Invivo faces is because of their lack of marketing across New Zealand inspite of their quality products that beat competition. Moreover, there is also a point of attraction for New Zealand customers which is the New Zealand production of the wine.

Market Strategy: The Market Strategy to get competitive advantage over the competitors is identified to be ‘cost leadership' strategy. This way the company can reach a higher sales statistic and also be a lucrative option for the company. To place this strategy into effect, the company needs to effectively re consider the value chain and through it the company can find the expenses that might have scope for minimization. This is the way the company can make way into the market facing competition with a way of capturing the market which is largely at scope for the rightful capture. (Porter, 2010)

Marketing Goals

‘SMART' Marketing objectives is an acronym for which the etymology and the application for Invivo Wines is as follows:

Specific: The specific marketing goal for Invivo as per this report is to cater to the maximum number of New Zealand customers who are largely unknown to the brand and this way the company can make a ‘niche' in the market through a process of first obtaining the competitive advantage of price and further making way for growth in sales and brand image in New Zealand

Measurable: Measurable refers to the scope to which the objective of marketing extends. This in the case of Invivo is the market capture of wine industry in New Zealand.

Achievable: This refers to the scope to which the objective is achievable in the real market. According to the macro environment analysis, there are people for the objective to be attained since the company product line is based on consumer demands and also the right skills for the job are present in the company's workforce. This could further be classified as the popularity of the products in the international market and big celebrity names endorsing the product.

Realistic: This refers to the realistic time based feasibility of the objective which in the case of Invivo is highly likely due to the nature of the products which are already known to the international market as high quality and as given in the macro-environment analysis, the market is stable and still not saturated enough. So, the company can reach the objective.

Timely: The goals that are set out by the company must be bound into a timeframe otherwise th prolonged efforts sometimes turn around and show signs of ineffective results. So, it is paramount that the company makes efforts towards making the company have a high emphasis on achievable goals. In the case of Invivo, it is suggested that the time period be set as 2 years due to the market state at present.

(Handrick, 2018)

To Put the objective into perspective, the company's marketing goal is as follows;

“Invivo aims to increase sales of it's products by at least 50% within the next year and reach an objective of capturing the biggest marketshare in the New Zealand wine market by September 2020.”

Marketing Mix

Product: The product line to be selected for the marketing objective are the ‘Chardonnay' range, Pinot Gris' range and the Graham Norton' wine range which are the most internationally acclaimed products of the company.

Price: The pricing of the products foresaid should be cheaper than competitors' products and due to the productivity in New Zealand, this is achievable. This is how the company could achieve competitive advantage by realizing the price leadership strategy.

Promotion: The promotion should aim towards online advertising and luxury advertising such as sponsorships of highly acclaimed sailing products like yachts and cruise ships. Also, there is scope for celebrities in the New Zealand Television to endorse the Pinot Gris range. The company should aim to advertise the products based on the places that wine enthusiasts visit like Wine festivals. TV channels are also a big source of the products to be noted by the general public who would have the option open to try the products.

Placement: The promotional campaigns that a company runs do pose a great deal of success due to the general shopping public to try a company's products. The ideal placement of the products might be bars and pubs where wine drinking populace ventures out to. This is an ideal situation for a person to try out new products jointly with the choice of their own products. Since the products distinctive features have a high lucrativeness. The product might attract a lot more customers.

Distribution Channels: The distribution channel is identified to be mainly in retail outlets like Countdown supermarkets, the liquor shops and online retail through the company internet portal for the Pinot Gris and for the highly specialized Graham Norton wines, it is identified to be mainly through online sales and bugger outlets of supermarket chains in order for the differentiation of the products as ‘limited' editions. This way the company can achieve high sales of “Graham Norton' product range to be an exclusive range for the company's offerings.

Monitoring and Control

The monitoring and control of the marketing strategy require several times of attempting the relevant marketing processes before determining their feasibility and results. (Adams, 2010)

Since consistent experience over time returns better outcomes, the marketing activity should be carried out several times for a span of at least half an year before making a decision to abolish a marketing plan, or to try something new. Keeping a record of the marketing activities and tracking the given aspects of the plans should be considered:

• Timing of the promotion 

• Costs related to the advertising campaigns 

• The number of potential customers exposed to the promotional campaigns

• Customer Response

• Sale Statistics

• Return on sales


Since the whole research is based on secondary data available on internet based sources and publications& journals, here is a list of the references from which the data has been collected and compiled

Works Cited

Invivo. (2018). Our Story Invivo . Retrieved aug 10, 2018, from

Invivo. (2018). Our Wines Invivo. Retrieved 2018, from

Invivo. (2018). Invivo Reviews. Retrieved 2018, from

Deloitte ANZ. (2017, December 16). Ripening Opportunities. Retrieved 2018, from

Russell Prince, N. L. (2001). ‘Quality' as a governmental rationality in New Zealand wine . EchoGeo .

Central Intelligence Agency. (2017). New Zealand. Retrieved from the World Factbook:

Adams, D. (2010). What Are the Characteristics of Market Segments & Target Markets? Retrieved 2018, from Chron:

Investopedia. (2016). Target Market. Retrieved 2018, from Investopedia:

Porter. (2010). Porter's Generic Competitive Strategies (ways of competing). Retrieved 2016, from

Handrick, L. (2018). SMART GOAL E. Retrieved 2018, from fitsmallbusiness:

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