WINE 7003 - Australian Wine in the Asian Century

North Terrace Campus - Trimester 3 - 2017

As the world economic centre of gravity shifts towards Asia, the accompanying rapid urbanisation and the growth of the Asian countries middle classes is driving demand growth for premium and luxury products and services. Wine consumption and sales in Asian markets have been stimulated by this trend and the Australian wine industry has benefitted as Asian markets have increased their destination share of Australian wine exports - particularly for higher value segments - with prospects for further growth. However there are formidable challenges for Australian wine businesses in securing a greater share of this increasing demand against global wine competitors and even local producers in some markets. As well there are substantial differences between the wine demand growth potential and of the market structure and business culture of individual Asian markets. Whilst wine export prospects will be dominated by wine consumption in China, other emerging wine markets such as Thailand, Vietnam, Indonesia and India will join more established wine markets such as Singapore, Japan and South Korea as Asian target markets offering export growth potential. This course focuses on the potential of these markets and provides an understanding of market opportunities as well as barriers to success. This includes analysis of economic drivers and wine market structures and wine consumption behaviours. Market entry strategy options and understanding of differing distribution and retail systems are explored. The course also provides insights to cross cultural issues and business to business relationship strategies in an Asian context. There is an emphasis throughout on the objective of Asian wine business relationships and outcomes that will contribute to the sustainable profitability of the Australian wine industry and individual wine businesses, distinguishing this from opportunistic trading for short term wine export sales results.

  • General Course Information
    Course Details
    Course Code WINE 7003
    Course Australian Wine in the Asian Century
    Coordinating Unit Business School
    Term Trimester 3
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 36 hours
    Available for Study Abroad and Exchange Y
    Assumed Knowledge WINE 7002
    Course Description As the world economic centre of gravity shifts towards Asia, the accompanying rapid urbanisation and the growth of the Asian countries middle classes is driving demand growth for premium and luxury products and services. Wine consumption and sales in Asian markets have been stimulated by this trend and the Australian wine industry has benefitted as Asian markets have increased their destination share of Australian wine exports - particularly for higher value segments - with prospects for further growth. However there are formidable challenges for Australian wine businesses in securing a greater share of this increasing demand against global wine competitors and even local producers in some markets. As well there are substantial differences between the wine demand growth potential and of the market structure and business culture of individual Asian markets. Whilst wine export prospects will be dominated by wine consumption in China, other emerging wine markets such as Thailand, Vietnam, Indonesia and India will join more established wine markets such as Singapore, Japan and South Korea as Asian target markets offering export growth potential. This course focuses on the potential of these markets and provides an understanding of market opportunities as well as barriers to success. This includes analysis of economic drivers and wine market structures and wine consumption behaviours. Market entry strategy options and understanding of differing distribution and retail systems are explored. The course also provides insights to cross cultural issues and business to business relationship strategies in an Asian context. There is an emphasis throughout on the objective of Asian wine business relationships and outcomes that will contribute to the sustainable profitability of the Australian wine industry and individual wine businesses, distinguishing this from opportunistic trading for short term wine export sales results.
    Course Staff

    Course Coordinator: Mr Paul van der Lee

    Lecturer:                       Paul van der Lee

    Location:                      10 Pulteney Street, Nexus Building (Room 1019)

    Email:                           paul.vanderlee@adelaide.edu.au

    Course website:            www.myuni.adelaide.edu.au

     Paul van der Lee has more than 20 years experience in the Australian wine industry, spanning commercial and industry organisation roles, including hands on sales and business development responsibilities for 20 export markets.

    Paul has worked in the wine sector as chief executive for a medium-scale winery; as an independent wine business strategy consultant; as a senior economics and policy analyst for the Winemakers’ Federation of Australia; as an export business development manager for the South Australian Wine Industry Association; and as a Board member of Wine Australia, the Australian Government statutory organisation for the regulation and promotion of Australian wine.

    In these roles he has:

    • Coordinated distribution and marketing of Australian wine brands in export markets

    • Researched factors impacting the wine value chain and commissioned market research into issues such as regional branding and the China market

    • Led the development of three major wine sector strategic initiatives – Strategy 2025 (1996), The Marketing Decade (2000) and the Wine Restructuring Action Agenda (2010)

    • Developed the programs for the national Wine Marketing Conference (1999-2005) and Wine Industry Outlook Conference (2010 and 2012)

    • Developed and presented WineSkills workshops that enhanced the business capability of small wine businesses

    • Undertaken consultancy as a wine marketing expert witness and for due diligence of wine business acquisitions

     His qualifications include degrees in economics BEc (Hons), in politics (BA) and in marketing (BBus), and in 2012 he graduated from the Australian Company Directors Course (order of merit). He is currently a member of the Advisory Board for the University of Adelaide Wine Future research network.

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

    Week

    Date

    Weekly Topic

    1

    Times all sessions
    0930 - 4.30pm 
    7 September 2017
    Venue all sessions
    Nexus 10
    704/705 MBA Suite

    Course introduction
    1. Rise of Asian economies as a driver of demand growth for premium food and wine
    2. Wine in Asia 
    3. Future wine potential in Asian markets

    2

    13   September 2017

    4. High income Asian markets – Singapore, Japan, South Korea

    5. Frontier Asian wine markets – Indonesia, Thailand, India, Vietnam

    2

    14 September 2017

    6. China - the largest Asian wine market

    7. China wine market – future development scenarios

    5

    5 October 2017

    Assignment due

    7

    19 October 2017

    Workshopping topics 4,5,6.7

    8

    26 October 2017

    8. Australian current performance as a wine supplier to Asian wine markets

    9.Future opportunity for Australian wine – markets

    10. Future opportunity for Australian wine - Asian market access and route to market

    10

    9 November 2017

    11. Future opportunity for Australian wine – capability requirements

    12. Strategies and business models for Australian wine success

    13. Revision and exam briefing

    13

    TBA November 2017

    Exam

  • Learning Outcomes
    Course Learning Outcomes

    On successful completion of this course, students will be able to:

     
    1. Evaluate Asian wine markets to determine their differential wine demand growth potential and high  value import sales opportunities.

    2. Understand the influence of cross cultural issues and how these influence the success of business to business relationship strategies for Australian wine businesses and partners in Asian wine markets.

    3. Identify and analyse the economic, market structure, consumer, competitor and Government policy factors that will shape the future of the China wine market.

     4. Determine the Asian wine markets that best match the sustainable profitability objective for the Australian wine industry, and that match the differing capabilities of individual Australian wine businesses.

     5. Plan and specify market entry and business development strategies that uniquely address the specific trade, consumer and structural parameters of each Asian wine market.

    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    1, 4
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    1, 3, 4, 5
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    1
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    4
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    2
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
    1, 2, 3, 4, 5
  • Learning Resources
    Required Resources
    This course has no text book, required readings for each topic will be provided to students through the Course Content section for this course in MyUni.

    Lecture presentations and case study results will be recorded and made available through Myuni.
    Recommended Resources
    The Business School Communication Skills Guide provides important information on assignment and referencing expectations. https://business.adelaide.edu.au/documents/CSG_business_Web_final.pdf

    Australian Government, 2012, Australia in The Asian Century

    Wine Australia Winefacts Database (2017), (accessible through the University’s library website).

    Anderson & Nelgen, 2011, Global Wine Markets, 1961 to 2009: A Statistical Compendium, University of Adelaide Press, Adelaide, Australia.

    Kym Anderson & Glyn Wittwer, April 2015, Asia's Evolving Role in Global Wine Markets, Working Paper No.0114, Wine Economics Research Centre, University of Adelaide, www.adelaide.edu.au/wine-econ

    Winemakers’ Federation of Australia, 2000, The Marketing Decade: Setting the Australian Wine Marketing Agenda 2000 – 2010, Adelaide 

    Australian Wine and Brandy Corporation (AWBC) and Winemakers Federation of Australia (WFA), 2007, Wine Australia: Directions to 2025: An Industry Strategy for Sustainable Success, Adelaide.

    Winemakers’ Federation of Australia, 2013, WINE INDUSTRY REPORT, Expert Report on the Profitability & Dynamics of the Australian Wine Industry, Adelaide.
     
    Goodman Steve, 2012, Principles of Wine Marketing, Winetitles, Adelaide
    Online Learning
    Lectures, case study exercises and case study results can be accessed online through Myuni as an alternative to on campus attendance.

    However participation in a full day workshop, scheduled for Thursday 19th October, is essential small group learning and is assessable.

    All students are strongly encouraged to attend the workshop on campus.

    For those externally enrolled students unable to attend on campus, participation in the full day workshop sessions is required via online steaming arrangements to be advised.

    Assignments are submitted via the MyUni website and the exam is available online.

    Any additional course materials will be provided through Myuni.

    Students are expected to read all course-related announcements posted on the course website and to utilise the discussion boards where appropriate.





  • Learning & Teaching Activities
    Learning & Teaching Modes

    This course is taught through 6 intensive full day sessions, comprising a mix of lecture presentations, small group tasks, and case study exercises.

    The sessions are available on campus in real time or as recordings in Myuni.

    Students are also expected to complete the required readings.

    Refer to Learning Activities Summary section for session topic details. 

    Reading list references will be detailed in the Course Content section of Myuni at the commencement of the course.

    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The formal contact time commitment for this course comprises 36 hours over 6 full day sessions.
    In addition to these contact hours students are required to undertake private study encompassing the course readings, researching and writing an assignment, study and exam preparation to make up the balance of the 156 hour minimum workload for this course.

    The university expects full time students to devote a total of 48 hours per week to their studies.
    That means for this course, you are expected to commit approximately 9 hours to private study, that is study outside of your regular classes.

    Learning Activities Summary

    Topic 1 Rise of Asian economies as a driver of demand growth for premium wine

     Discussion Question: What are the drivers of increasing wine demand in Asian markets? How is Asian demand changing the global wine market?

    Topic 2 Wine in Asia – cultural relevance, consumption, production, trade. Consumer wine preferences – prestige versus taste.

     Discussion Question: How different are consumer preferences and consumption behaviours in Asian markets? Is the perceived luxury status of wine the primary determinant of consumer behaviour? 

    Topic 3. Future wine potential in Asian markets.

    Discussion Question: How much growth in wine demand is likely and how will this vary between markets? What proportion of this growth will be for high value wines?

    Topic 4. High income Asian wine markets – Singapore, Japan, South Korea.

    Discussion Question: Compare the wine demand growth prospects across the three markets from both a volume and a value perspective.

     

    Topic 5. Frontier Asian markets – Thailand, Vietnam, Indonesia and India

    Discussion Question: Compare the wine demand growth prospects across the four markets from both a volume and a value perspective. Discuss the risk profile of each market and how that might impact on its attractiveness as an export market for a small wine business.   

     

    Topic 6 Largest Asian wine market - China

    Discussion Question: What are the growth drivers for the China wine market and are any of these drivers unique to this market? What are the implications for importers of the China wine market distribution structure and sales channel configuration?  

     

     Topic 7 China wine market – future development scenarios

     Discussion Question: What strategies might local wine producers adopt to challenge the dominance of imports in the market for higher value wines? What role might provincial and central Chinese Governments play in the future development of the China wine market?

     

    Topic 8 Australian current performance as a wine supplier to Asian markets

     Discussion Question: How well has Australia performed relative to other origin country competitors in Asian wine markets?

     

    Topic 9 Future opportunity for Australian wine – Asian market selection

     Discussion Question: Which Asian markets offer the best sustainable profit opportunity for Australian wine in the short term (3 years)? To what extent would a 10 year time horizon change the market selections?

     

    Topic 10 Future opportunity for Australian wine – Asian market access and route to market

    Discussion Question: To what extent do market access restrictions detract from the market growth potential for each market? Which route to market options are best suited to Asian markets, or is the choice specific to each market?                                                                                      

    Topic 11 Future opportunity for Australian wine – capability requirements for Asian market, especially business culture issues

     Discussion Question: What are the Australian wine business capabilities/competencies that are necessary for success in capitalising on Asian wine market opportunities? 

     

    Topic 12 Strategies and business models for Australian wine success in Asian wine  markets

     Discussion Question: What business models and strategies for Australian wine businesses are most conducive to success in Asian wine markets?

     

    Topic 13 Revision and exam briefing

         

    Small Group Discovery Experience
    The full day workshop session on 19th October is designed specifically as a small group learning format for discussion and problem solving of case studies adressing topics 4, 5, 6 and 7.
    Small group format will also be utilised for research and analysis exercises during class sessions.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Summary of assessment requirements.

    Assessment Task Weighting Task Type Learning Outcome
    Workshop group tasks 20% group 1, 2, 3, 4, 5
    Assignment
    Essay 2,500 words.
    30% formative 1, 3
    Examination open book 50% formative 1, 2, 3, 4, 5
    Total 100%
    Assessment Related Requirements
    Participation in the full day workshop is essential due to the intensive nature of small group learning involved in the workshops and is assessable for each student's contribution to group tasks.
    Externally enrolled students who are unable to attend on campus will be required to participate through an online presence, arrangements to be advised.
    Assessment Detail
    TUTORIAL (Workshops) PARTICIPATION

    Marks will be awarded for workshop participation and for contribution to workshop group projects. Students are expected to prepare for workshop classes by completing the assigned reading prior to the class and preparing for the discussion topic and or questions provided on Myuni for that workshop.
      
    ASSIGNMENT 

    Individual Assignment 

    Weight: 30%

    Due Date: 9 am Thursday 5th October

    Word Limit: 2500 words

    Method of Submission: you are required to email this assignment along with a business school cover sheet via Myuni for this course no later than the due date and time.

    Topic to be advised, question to be posted on Myuni.
     
     EXAMINATION

    The course will conclude with a 2.5 hour examination held during the university examination period, TBA. The exam will be available online for external students.

     This exam will be open book and will cover every topic in the course - content from all lecture materials and course readings is examinable.

     To gain a pass for this course a mark of 50% must be obtained on the final examination as well as a total of 50% overall.

     

    Submission
    Assignments are to be submitted via Myuni with the Business School coversheet by the due date.
    Students should retain a copy of all assignments submitted.

    LATE ASSIGNMENTS
    Students are expected to submit assignments by the due date in order to maintain equity.
    Extensions can only be given for medical or other serious reasons and must be requested before the due date, and will be granted on a case by case basis.
    Extensions will be granted on medical grounds with a medical certificate.
    Penalty for late submission is 5% mark reduction for each day that it is late.

    REFERENCING
    Correct referencing is important for identifying the ideas and arguments you present along with any direct quotes you use. It helps to avoid plagiarism and demonstrates that you have thoroughly researched your assignment. The Harvard Referencing System is usually used in the Business School. Guidelines for this system and examples of correct referencing can be found in the Business School Study Skills Guide listed under recommended resources in this guide.
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.