To what extent can MontGras control its own market position, as opposed to being dominated 7by the country-of-origin effect, and be perceived as a “Chilean Wine”? Changing the overall image of its companies wines are added to its market positioning strategy. Even though the branding as a Chilean Wine is easily applied onto MontGras, there are many factors in its control which can make sure that the company dominates the market by having a bigger share as it wants to. MontGras though being smaller
ROYERE MontGras Export Strategy for a Chilean Winery In November 2001, Patricio Middleton, CEO of Viña MontGras, a $7 million Chilean winery, was driving through the Colchagua Valley to meet American journalists from Wine Enthusiast magazine. Looking at the endless vines that surrounded him, he wondered how those newly planted grapes would find a market. Chile, the world’s 10th-largest wine producer, had enjoyed an export boom in the 1990s and had grown to become the fourth-largest wine exporter
Huang 1467751 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
Current Position ▪ Financial Overview ▪ Proposed Strategy ▪ Marketing ▪ Competition ▪ Risks and Contingencies MontGras, a medium-size Chilean winery, has to formulate an export strategy. It has to decide whether to emphasize the U.S. or U.K. markets, which also offer different positioning and pricing proposals. It has twice failed to penetrate the U.S. market, because distributor relationships fell through, and is deciding between two new potential partners.
produce a less expensive tea, while marketing it under a different name. MontGras, a Chilean wine company, was successful with this strategy when they began offering their wines in supermarkets in the United Kingdom. Their wines, like Mighty Leaf’s teas, were originally only available in high-end restaurants and hotels. The top four leading supermarket chains accounted for 60% of wine sales in the United Kingdom (Arnold 6). MontGras wanted to enter this market but did not want to hurt relations with restaurants