1. Golan Heights Wine in China Presented by: Brendan Collins Trevor Farrow Tony Heath Conner Howe Drake Miller

2. Golan Heights Winery 35,000,000 bottles of wine produced each year 19.3 Square Miles of vineyards Brands Yarden, Gamla, Golan, Mount Hermon Exports 12% 2012 Wine Enthusiasts “New World Winery of the Year” Started “Boutique Revolution”

3. Challenges Uneducated wine drinkers Wine counterfeiting Negative association with Israel Lack of brand awareness

4. Value Chain Strengths Geography of Vineyards Winemaking Practices - Advanced Technologies Chief Winemaker - Victor Schoenfeld Micro-Winery

5. Weaknesses Low Global Market Share Lack of Brand Awareness - Bad for Differentiation approach Weak Distributorship

6. 5 Forces Threats of new entry : Low Bargaining power of buyers : High Bargaining power of suppliers : Low Threat of substitutes : High Intensity of rivalry : High

7. China PESTEL Analysis PoliticalEconomic ●One of only five communist nations left in the world. ●No formal relations with Israel until 1992. ●Steadily improving cross-cultural learning. ●Transitioning from highly planned to market-oriented economy. ●World’s largest exporter as of 2010 - highly globalized. ●Second largest economy behind the United States. ●Per capita income below world average. ●Average consumer disposable income is growing.

8. China PESTEL Analysis SocialTechnological ●Very high growth potential in the beverage industry ●Uneducated customers. ●Overall preference for French wine - 339 million dollars worth imported in 2010. ●Strong near-term macroeconomic outlook. ●Well-developed physical infrastructure. ●Low-risk operating environment.

9. China PESTEL Analysis EnvironmentalLegal ●Currently has 500 wineries in the country. ●Chinese wine is general low to mid- level quality. ●Domestic wine accounts for 1.5 per cent of China’s alcohol consumption. ●The few popular household brands of Chinese wine control a large market share. ●Recently acceded to the WTO. ●Gradual removal of market barriers and trade restrictions. ●Abundant partnerships between local and multinational firms. ●Rapid development.

10. Marketing Strategy ●Rapidly growing market ●Israeli wines only 0.02% market share ●Chinese are uneducated wine drinkers ●Purchase wine to show economic status

11. Marketing Strategy ●Target Market: Upper-middle to upper class men ●Celebrity Endorser - Fan BingBing ○Loved throughout China ○Beauty, sex-appeal, luxury

12. Advertising Strategy ●Billboards / Banners ○Large city population ●High-End and Business magazines ○Banyutan ●Television Advertising - Brand endorser, Fan BingBing

13. Distribution ●80-20 Rule: Majority of wine to luxury hotels, bars, and restaurants ○1st tier/ 2nd tier ●Relationships! ○Trade shows/ events ○Regional Sales Reps ○Trustworthy Distributors

14. Distribution and Event Targeting Push wine to Event planners for - Weddings - Holidays - Sporting events, etc.

15. Thank you!