Ceja Vineyards Marketing Analysis

2086 Words Mar 10th, 2015 9 Pages
Ceja Vineyards’ Decision to Directly Market to the Hispanic Community Analysis
Ceja Vineyards’ Decision to Directly Market to the Hispanic Community Analysis
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.
Amelia Moran Ceja, President, and her husband Pedro Ceja, Artistic Director, along with Pedro’s brother Armando Ceja, Winemaker and Vineyard Manager, and his wife Armando Ceja comprise the
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Their wine club members receive a discounted retail price, but Ceja Vineyards could introduce a “Rewards Program” for recruiting new members.
The wine market has exploded in the 2000s, and has produced quite a few Threats for Ceja Vineyards.
Competition has become fierce recently as the number of wineries grew by 26% from 2004-2007.
The “three-tier system” for distribution does not favor small wineries. It places a different tax rate dependent on state, and the “Big Five” distributing companies hold 52% of the distributing market. Boutique distributors are not able to operate in all states, and are always at threat of being purchased by the major distributors.
Ceja Vineyards has done well for itself so far, but there is always the threat of growing too fast, without the required demand.
The SWOT analysis shows a very high amount of strengths and opportunities that would suggest an aggressive strategy if not for Ceja Vineyards personal business strategy of slow growth.
Porter’s Five Forces Porter’s Five Forces was next used to determine the competitive environment. The Five Forces method is used to determine a company’s profit potential for a particular industry. The Threat of New Entrants - High. Despite the high start-up costs, and that vineyards and wineries are a long term investment, it has not stopped people from joining the market. In 2006-2007, 12,000 new brands were introduced to the market. The number of imports in
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