Economics – Turkish Wine For Germany

June 18th, 2009 by Lakatos Leave a reply »

 

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Presentation of Turkish Wine

The purpose of this report is to evaluate opportunities we can identify for the online distribution of Turkish bottled wine by means of an appropriate bi-lingual website combined with an AdWords campaign. The client, a large wine distributor, is located in Turkey proper and eager to find ways to establish its presence within the European Union, with special regard to Germany. They have no previous sales history in this part of the world.

Background

Turkey, along with the former Soviet republics of Georgia and Armenia, was one of the earliest wine producing regions of the world. Modern Turkey is the fourth leading producer of grapes. The country has a number of notable wineries such as Tekel, Sarafin, Doluca and Kavaklidere. Unlike other muslim regions, Turkey lifted the ban on alcohol after the birth of the secular state pioneered by Mustafa Kemal Atatürk after World War 1.

 

Areas of Wine Procution in Turkey

Areas of Wine Production in Turkey

Germany has been the prime target country for Turkish guest workers in the past 40-50 years. Nowadays Turkish citizens in Germany make up a population of approximately 2 million people and the number of German residents with origins in Turkey is approximately 2.8 million. The important aspect for us is that Germany offers plenty of potential buyers for the Client and there seems to be no need for preliminary Content Network campaigns to establish customer awareness relative to Client’s product range and the associated brand names. This fortunate circumstance makes it shorter for us to reach the break even points in connection with initial investment.

General Market Situation

The EU and Turkey are linked by an ambitious Customs Union agreement. Though it does not cover agriculture, various EU Regulations ensure that most types of Turkish wine can enter the EU free of duty, under special tariff preference directives. This translates that the Client does not need to first deliver the products to a Duty Free Zone within the European Union. However, the establishment of one or two depositories for Client’s products in Germany seems mandatory so as to shorten delivery time regarding online orders.

Online Market Situation

Google organic search brings up http://www.turkische-weine.de as the No 1 natural listing for the keyword türkische weine. This simple website links to http://www.partyweine.de, a retailer operated from Hamburg, with a modest supply of white and red wines, rosé wines, and a few other alcoholic beverages including Yeni and Tekirdaq Raki as well as Efes Beer. The site is equipped with a shopping cart, however, your payment options are restricted to PayPal, Visa and Mastercard. The Party Wine web-shop does not display a Privacy Policy or a Return Policy. Its Delivery Terms, hidden under FAQ, are also way too short. Delivery of the products is typically effected via courier services and the delivery fees need to be added to the total price. If you wish to place your order from outside Germany you have to send an email enquiry to receive email information about their terms and conditions. The Party Wine website is in German and does not offer a Turkish version. Even if most Turkish people in Germany must speak German to some degree this solution leads to losing customers as a consequence of possible difficulties in understanding or simply due to national feelings.

Organic and Paid Results for "türkische weine" on Google

Results for "türkische weine"

Brand names of wines well-known among Turks, like Güzel Marmara , Trakya , Agora, Dikmen or Papas Karasi, used as search terms, bring up no sponsored links on the google.de search engine.

The generic search term türkische weine brings sometimes up only one potential competition specialized in Turkish wines, as a sponsored link on the google.de search engine. This AdWords ad is for http://www.tuerkischer-weinversand.de, a well-designed online shop run by an individual from Bochum, with plenty of useful functions. However, even this relatively fine web-shop misses the evident opportunity to offer its contents in Turkish as well.

A Well Designed Homepage

A Well Designed Webshop

Difficulties

Research by means of Google’s standalone Keyword Tool shows that neither the brand names enumerated above nor the generic keyword türkische weine have a workable search volume. It reflects a poor user experience relative to minority related web contents in Germany. Therefore, first off Client should rely on the even more generic adjective terms türkisch or türkische listed as phrase match keywords which have the potential to deliver more than 1,000 impressions a day. Fortunately these search terms only bring up a few sponsored links, mainly language courses or holiday destinations in Turkey.

Conclusions

Online supply of Turkish wine is evidently scarce in Germany as compared to the size of the minority population. Competing websites are either poorly designed or their AdWords campaigns seem to be insufficiently managed. They all miss out on the evident opportunity to offer Turkish contents to their customers.

 

The Break Even Point

The Break Even Points

To start with, client should establish a very small depository in Germany. The website should be bi-lingual, well-designed and multifunctional. Emphasis should be on a few relatively cheap and popular brands. Due to the above problems with search volume the AdWords campaign should be starting with rather generic search terms. After a modest start, a rapid growth can be expected as the news about the web-shop spreads among Turks in Germany. So as to expedite this process, placement ads should be considered in connection with a few minority related Content Network websites.

Based on the above, as an educated guess we can expect to reach the break even points approximately within a year. Since it might be a real economic burden for many SMEs it’s advisable to arrange appropriate finance in due time, if available.

2 comments

  1. I found your post insightful

  2. That was a good read,You discover something totally new each day.

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