Mondavi Case Analysis

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Overview of current situation:

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
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The advantage of Mondavi Corporation is the price and product range. In the table below, we see the products and the price range they fell in:
Exhibit 7
Robert Mondavi 's Brands
Brands Popular premium ($3 to $7) Super- premium ($7 to $14) Ultra- premium ($14 to $25) Super Ultra- premium (over $25)
Robert Mondavi Winery X X X
Opus One X
Woodbridge X X
RM Coastal X
Io X
Bryon X X
La Famiglia X X
Dazante (Italy) X
Luce & Lucente
(Italy) X X
Seña (Chile) X
Caliterra (Chile) X X
Vichon Med.
(France)* X X
Percentage of FY
1999 Revenues 55% 26% 11% 8%
Source: Robert Mondavi Bank of America Securities Conference, Feb 16, 2000.

As we see from the table the price varies from $3 to over $25 that is the price range available to different kind of target market to fans to enthusiasts of the wine, the advantage that Mondavi Corporation can compete in all of them. Another fact that we see from he table is that Mondavi offers a variety of different brands; this as well helps to attract and interest a wider target market share. As we know form the case is that Mondavi wines are pushing its way on to the shelves around the world so the place a customer can get the Mondavi production is increasing through the partnerships with world partners. What is seems to be lacking is the promotion, the idea that the best promotion is the words of satisfied customer
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