Bonny Doon currently has an enviable position in the 1990’s Californian wine-producing industry. The company has successfully differentiated itself from its competition and achieved a first mover advantage in terms of selling “undervalued” wines. However, due to increased rivalry and a changing and increasingly challenging market, Bonny Doon must determine how it will grow its market share.…
With the slow growth in domestic wine sales, accompanied by an oversupply of wine grapes export markets have become a key driver in sales growth. Watershed has focused its marketing efforts on Asia and in particular China. The high Australian dollar has impeded export growth, however exports remain the primary source of growth for premium wine sales.…
Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.…
Brand plays a key role in the beer-purchasing process, along with taste, price, special occasion, brand image, authenticity, and tradition.…
With regard to the wine market prospects, there are two sides of the argument which favour and unfavor the wine market. It is thus difficult to judge from the wine market aspects.…
The Case Study, “Ceja Vineyards: Marketing to the Hispanic Wine Consumer?” by Armand Gilinksy Jr., Linda I. Nowak, Cristina Santini, and Ricardo Villarreal deSilva (2010) outlines a critical decision a small, family owned winery in California is facing. The winery, Ceja Vineyards, is located in the Carneros region and is equally owned by four Mexican born immigrants of farm workers.…
Ms. Quintana CEO of Northern Napa Valley Winery Inc. was considering conducting business with Trans Continental stores to sell excess grapes from the 2008 harvest. Prior to making a decision Quintana must determine how much of the harvest should be retained for the production of Northern Napa’s own red table wine. Quintana realized that the quantity of red table wine produced is closely associated to the sales.…
The following is an analysis of the case, Greaves Brewery: Bottle Replenishment. It details the growing beer operation of Greaves Brewery located in the Caribbean island of Trinidad. The purchasing manager for the company, Alex Benson, is uncertain about how many bottles to order from the company’s German glass supplier. His decision is complicated by the possibility of a new bottle design being introduced that would compromise his existing inventory of bottles. Additionally, he is faced with storage limitations and erratic sales, all of which are impacting his decision. He is also concerned about over ordering to avoid issues from an off year, impact from government tax, tourism, and growth of exports.…
Valley Winery has recently hired Pat Waller as sales manager of their San Francisco region chain division. There have been favorable sales increases during the past several years; however their sales force turnover is extremely high reaching nearly 100% a year. Pat Waller will be supervising two area managers who oversee nine district mangers with approximately fifty sales reps in the San Francisco region. The eighty year old company is the largest domestic producer of wine in the USA, with sales believed to have exceeded $1.8 billion in 2012. Two broad factors are traced to the company’s growth and success:…
Macquariedale Organic Wines also have competitions with other products or companies among the Australian organic and biodynamic industries. According to Walker, Gountas, Mavondo and Mullins (2012, p. 100), “five competitive forces collectively determine an industry’s long term attractiveness”. The first force is…
Vincor International goal is to become one of the top five wine companies in the world in terms of earnings. In order to attain this goal they have implemented a corporate strategy that focuses on using their existing powerful position in market to help them developing sales, marketing, distribution capabilities on an international scale. The strategy also includes acquiring new wineries and wine brands in new emerging region in the wine market also called “New World regions”(Vincor, 2005) throughout the world.…
Analyzing the External environment is important in the strategic decision making for the organization in that these factors will affect the company’s choice of direction and its internal processes. There are two specific categories of the external environment factors that will be discussed, the remote environment and the industry environment. The remote environmental factors important to the success of the organization are the economic, political, technological factors. In order to create their strategic action plan, the company must also have a clear understanding of its competitive forces included in the industry environmental factors. The factors the company must look at are the entry barriers including capital requirements and policies regarding distribution channels. Remote environmental factors are created without the actions of the company. These factors may present the organization with opportunities, threats, and constraints that the company has no control of. One area of the environment that directly affects the company is the economic trend factors. As an example wine may be considered a luxury item, the health of the economy is important to the company. In an economic downturn, consumer spending is lowered and therefore, consumers are less willing to spend their money on a luxury good, and more apt to buy products that are a necessity. For example, California is the largest market for many wineries in the California market. During the 2001 - 2002 timeframe, the economy in Northern California has weakened based on the failing dot.com and other internet businesses. Restaurants in these areas that were once prospering because of the strong economic forces are now closed. Also, retail stores in these geographic areas are not turning inventories as fast, and therefore, not purchasing the wine at the same levels. In effect, wine case sales in Northern California are down 5% over last year to date. Other remote…
There are five primary wine regions in Virginia, each marked by distinct characteristics in terrain, climate, and varietals. Yet the array of wines produced in the region’s red-clay soil is staggering. It’s not unusual for a winery in Virginia to have 30 or more different releases a year. The economics of producing a little bit of everything may encourage such overachievement—there’s something for everyone—but the lack of focus means that even after all these years, Virginia hasn’t discovered which wines it does best. The result is that only a small percentage of wines have established good individual reputations.…
First established in Medan in 1929, Multi Bintang Indonesia was the first Heineken brewery outside Netherlands and is currently the leading beer company in Indonesia. In 2004, we started producing Heineken locally. Since then, our performance has increased consistently.…
Robert Mondavi Winery was the first Californian to produce and market premium wines that were expected to compete with European wines.…