Exploring the Chinese Distribution Strategy for Gallo

According to China Research and Intelligence (2010), distribution channels are still the key factor to success. Since the Chinese and Hong Kong markets show a slight preference for on-trade channels, especially concerning exclusive products such as wine, E&J Gallo Rose concentrates on them (China Research and Intelligence, 2010). According to Hollensen (2011), given that Gallo Rose is a high quality product selective distribution would be the appropriate form of distribution as Gallo Rose would be targeting a specific market.
Gallo would depend on Chinese and Hong Kong wholesalers to distribute the wine to hotels and supermarkets, preferably those whom the competitors are not currently using. Therefore, a range of intermediaries has to be chosen carefully: mid to high price restaurants offering Western food, international pubs and lounges build a trading base. Once the wine is established, cooperation with high class Chinese and Hong Kong establishments could be considered. However, a presence in high segment supermarkets will be obligatory to make the product accessible.
Jenster and Cheng (2008) stress the rise of other off-trade channels, such as specialty wine stores and online wine-sites. The former is particularly important for new Chinese wine drinkers. The latter will be a part of Gallo’s distribution chain as soon as it reaches a higher market share. As outlined by Bretherton and Carswell (2001), the Chinese distribution system is improving slowly. To set up in Hong Kong and coastal areas of China is relatively easy, as the infrastructure is excellent. Direct exports with the support of an executive office are sufficient.

Nonetheless, further expansion will conflict with trade barriers and local protectionism. Areas have to be treated separately and high transaction costs are necessary to build own distribution channels. However, the advantages of higher reliance and lower control costs are obvious. Import taxes in China are lowered according to WTO agreements (9), but still 14% (Yu and Sun et al, 2009) plus value-added and consumption tax. On the other hand, Hong Kong tries to create a wine trading hub with the exemption of import taxes since 2008 (Winechina. com, 2010).

Don't use plagiarized sources. Get Your Custom Essay on
Exploring the Chinese Distribution Strategy for Gallo
Just from $13/Page
Order Essay
Achiever Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code RESEARCH