Case Study Of Chateau Margax: Launching The Third Wine

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.

The buyer’s power within the wine industry varies between different places in the world. There are for example strategic differences between Europe and the “New World”. The “New World” includes countries like the US, Australia, Chile and South Africa. In Europe there is a big competition

Normally wine is started in the fall when the ripe grapes arc harvested. It is not ready to be tasted until at least the following May-the origin of the young, and often very harsh, ‘May Wine.’ This time sequence coincides with the typical school year and thus provides an ideal opportunity to have a continuing demonstration. As the year passes and the course progresses, continued reference can be made to the various stages of the wine production….

McManisis currently in a pretty good situation from a strategy standpoint. Although overall wine consumption is dropping across the board, label laws are making it possible for Northern California wineries to add up to 25% of total grapes from regions outside of their own. By extension, this allows these wineries to charge a higher price, while having a lower overall cost. McManis’

However, Bonny Doon is vulnerable and reliant on its suppliers, as 80% of the firm’s grapes are bought from external growers. Bonny Doon requires unpopular grape varieties and grapes that meet high quality specifications (which decreases agricultural yields and creates a trade-off for growers). They need to develop long-term relationships with the growers to ensure uniformity and high production quality with respect to the firm’s key product input: grapes. On the other side of the value chain, the firm has preferred small-medium sized distributors for their product. This has enabled them to retain higher profits, despite selling wine in smaller quantities.

To complement these outstanding facilities, the Sales & Marketing Strategy is designed to ensure that award-winning Watershed Premium Wines reach the most discerning consumer.

The Robert Mondavi Winery became one of America’s most innovative, high-quality winemakers in the late 1960s and early 1970s. There are over 1 million wine producers worldwide and no winery accounted for more than 1% of global retail sales. Because of this and the fact that there are many substitutes, there is an issue to try to gain economies of scale and become a leader in the wine market. Wine tends to stay it its local region, which makes it harder to compete with its substitutes. In the strategic analysis portion of this case analysis, we discuss Porter’s Five Forces and how they affect the Robert Mondavi Winery. We conclude that in order for the winery to stay

Making wine is nothing else but a touch of passion, love and few drops of magic. From the first view, wine industry seems very artistic and secret at the same time. There is no doubt that hearing that Robert Mondavi Corporation is going to layoff 4% of its workforce ring the bell to the investors, at the same type the stock price dropping down dramatically makes an impression that the company is going through difficult period as the senior management is upon completing the reconfiguring future strategy. The big decision is whether to get back to original vision, and focus on the domestic market, which bring a 90% of revenues or continue diversification and keep on pursuing the vision of

Wine is a significant part of Spain’s cultural identity and economy. The sector represents Spain’s third largest agriculture crop after cereals and olives, and it leads the world in vineyard land with 1.16 million hectares (www.foodswinesfromspain.com). However, most the land is arid and sparsely planted. Yet, it holds third position globally in wine volume produced (Rubio, 2010).

Bordeaux’s cru classe wines are sold on the Place de Bordeaux, a system of wine merchants (negociants) and brokers (courtiers) who work with chateaux to send their wines to market. The wines are also sold en primeur, whereby customers may purchase wines far in advance of their bottling and public release. This trade structure is largely the result of three interrelated historical phenomena: Bordeaux’s unique relationship, and robust trade, with England; the arrival of foreign merchants in the seventeenth and eighteenth centuries; and the chateaux owners’ wealth and social standing.

Unlike the fragmented US market, the UK was not tiered and it was also one of the most competitive export sources in the World. One major point to consider in this market is the tax that is levied on alcoholic drinks which is 1 pound per bottle regardless of the retail price. This would also mean that the export of Reservas would be more beneficial as compared to Varietals (this is in line with the company’s strategic decisions as well). Again in this case, MontGras has 2 options to decide in terms of partners. The first one is the distributor that the company has been having for a while now (since 1996). The distributor had helped MontGras gain a good position in restaurants and other retail market too (on-premise and off-premise). The second option is the leading supermarket chain Tesbury, which with the help of few promotions made the total sales skyrocket in just a few days.

“We had begun to realize that for historical reasons the wine business, unlike the packaged food industries- had very few truly multinational companies and therefore very few true global brands. Wine consumers were getting more discerning and knowledgeable in the early 1990s, and to our reasoning, a great opportunity existed for a company to build a well-known international wine brand of quality and reliability.” This was Steve Millar’s, the new CEO of the BRL Hardy’s rational behind taking BRL Hardy into the global arena.

In the most recent years, domestic sales of wine has declined constantly. The wine consumption is becoming more occasional. This is partially due to an aggressive anti-alcohol campaign and driving restrictions set by the local government, but also facilitated by a lack of marketing strategy: the wine market is loosing touch with the youth (the average age of wine drinker is gone up from 35 to 55) and young people are getting more keen to beer or alcohol pops.

Partial dealcoholisation of wine aims to eliminate some alcohol content using physical separation techniques. This process of wines treatment must be of no organoleptic faults and must be suitable for direct human consumption. Reduction of alcohol content by volume may not be more than 2% of vol. The overall regulation is periodically reviewed by the European Commission (EC, 2015).

This case describes the global development of wine industry, and how new world wine players occupied the global market share from old world wine producer gradually. It is very interesting that author selected the Britain as the sample stage for the battle between the new world wine campaign and the traditional campaign.