Frog S Leap Winery Competitive

1177 Words Dec 14th, 2014 5 Pages
From:

To: John Williams

Re: Strategy

John,

I want to outline some of my strategy ideas for you. Frog Leap has a real opportunity to increase market share over the coming years, but we also have to address some serious problems with the company. I think addressing the debt issue starts with an evaluation of our assets and the real growth opportunities in the market.

SWOT
Frog's Leap has a few strengths on which to draw upon. The company has all three of sustainable practices, green land and green winery certification. The winery has a healthy size right now, and has an experienced staff that we have retained with forward-thinking HR policies. In addition, the brand is older than many on the market, which helps us when it comes
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This is bringing about a glut of cheap, decent wine into the market at a time when Napa real estate is pricey and our wines expensive as a result. Economically, we have a price sensitive market and our sales as a result can be expected to decline in the event of a difficult economy. The Congressional Budget Office is expecting slow growth for another two years. We face a couple of key domestic risks as well. The first is that some of the best retail outlets for our audience (like Trader Joe's and Whole Foods) are driving costs down with their own budget lines. In addition, we still face challenges in developing a direct-to-consumer business across state borders.

Recommendations
We need to sell our less productive land and use the funds to pay down some of the debt. The debt was created in part because we bought a bunch of land but didn't increase our sales. We are probably selling grapes on the secondary market; we're better off selling the land. Another recommendation is to reposition the brand for the younger audience. We cannot rely on older consumers in the long run, but we have done little to cultivate the 20-something and 30-something crowd. Competition is tough – we need to put some real money into marketing to this group. Lifestyle marketing is a good starting point, along with a much improved social media campaign. But we also need to look at our distribution channels - are we getting into the restaurants this market likes? We should
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