Market Strategy Analysis on Montgras Essay

926 Words Dec 5th, 2012 4 Pages
Hung-Chang Huang
Case Questions: MontGras
1. (a) To what extent can MontGras control its own market position, as opposed to being dominated by the country-of-origin effect, and be perceived as a “Chilean Wine”?
MontGras, the export-focused winery that was founded in 1992, unlike many other Chilean wineries, actually possessed a considerable control on its own market position in the late 1990s and early 2000s. Although the overall consumer perception towards Chilean wine products indicated that they need to put more efforts to build a solid image globally and that their major advantage is the low price, the situation might not necessarily hurt MontGras’ current market position if and only if the management the link between the
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Hence, both the two aforementioned factors might serve as a juncture for MontGras to reassess its business strategy, which could be broken into producing part and marketing part, in order to keep the profitable business for long.
2. Evaluate the US and UK options separately. For each country, which option would you recommend and why?
In MontGras’ major export market, UK, the company has already gained a substantial success that it ranked one of the 10 most Chilean wine exporters in terms of the value of products. In this picture, its partner distributor in UK had played an important role in MontGras’ UK penetration since 1996. Considering UK market feature, partner with leading supermarket chains such Tesbury is a comparatively feasible way to expand MontGras’ market share because these chain systems control more than 60% of all wine sales. However, partner with Tesbury is not free from side effects. First, at initial collaboration phase, MontGras enjoyed a short term victory without paying the cost of promotion. But in the future, is it able to reap without paying, or would Tesbury ask for
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