Radu Morar, marketing manager with Murfatlar, one of the biggest wine producers domestically, says exports will account for 20% in the company''s turnover this year.
"After having strengthened our hold of the Romanian market, the next step in Murfatlar''s long-term strategy is to focus on foreign markets. Export growth is a priority target in the company''s expansion plan for the following period," said Radu Morar.
Whereas last year sales on foreign markets contributed almost 15% to the company''s 25m-euro turnover, this year the company intends to expand its presence in other European or Asian states, as well.
Traditionally, the company exports to the United States, Great Britain, Germany, Finland, Denmark, Israel and Japan. Murfatlar''s marketing manager specifies that the company is now interested in the Chinese and Russian markets.
"These are two markets with an extremely high potential, in which wine is a fledgling industry. The first steps were made last autumn, when we took part in a wine fair in Moscow, and at the end of this month we will go to Asia. Participation to fairs provides you with important information and contacts when you want to enter a new market," explains Morar. He also says that on these markets the company will compete directly with the world''s main producers, from France, Italy, Spain, the US, Australia and Chile. In his opinion, the main difference between the domestic market and foreign ones is related to the profile of consumers.
To identify foreign consumers'' demands, the company will organise a series of foreign events, with earmarked budgets to exceed 500,000 euros.
"These expenses are separate from the advertising budget we''ve set for domestic promotion," explains Morar.
Morar also says the company has set a 30% higher promotion budget for this year compared with last year. "We will use the money to take the campaigns we started in 2005 further," Morar explains.
Morar added sales posted in late 2005 and early 2006 were on an upward trend. According to him, in the first four months of this year the company''s sales advanced by 54% from the similar period of 2005.
The company estimates 20% higher turnover for this year, to 36 million dollars (30 million euros). Murfatlar plans to retain the same growth pace registered last year, when it reported turnover worth 30 million dollars (25 million euros), up 20% from 2004.
Murfatlar set off from a market share of 19% in 2001 and last year got to account for 32% of the market, according to the company''s representatives. Over the last four years, the company has invested over 7.4 million euros to acquire modern wine production technologies. dana.ciriperu@zf.ro
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