ivey Essay

1612 WordsFeb 12, 20147 Pages
Yellow Tail Yellow Tail is the leading imported wine in the US. Introduced in June of 2001 by Australian owned Casella Wines, Yellow Tail sold more than 8.5 million cases in 2008, which is more wine than the next three Australian brands combined. This success has attracted substantial competition. The issue for Casella is how to sustain Yellow Tail’s growth in the face of emerging competition on a limited ad budget. Yellow Tail competes in the $11 billion dollar US wine industry, which is characterized by a high level of fragmentation and stiff competition. There are over 6,500 wine brands. E & J Gallo brands command an 18% share of the market and Constellation Wine brands have 13% share. No other brand has more than a 7%…show more content…
They are unlikely to respond to overt marketing efforts and hard-sell tactics. Distribution Yellow Tail’s success in US market is attributable in part to its partnership with W.J. Deustsch & Sons, which gave them immediate distribution in 44 states. Deustsch also imports Georges Duboeuf, which often sells at a similar price point to Yellow Tail and makes an annual splash with the release of its Beaujolais Nouveau. As demand for Yellow Tail has grown, management looked for ways to build its retail presence. Yellow Tail partnered with warehouse outlets such as Wal-Mart/Sam’s Club, Target and Costco. Yellow Tail also has a presence in Whole Foods organic supermarket and White Hen convenience stores. The goal in acquiring this distribution is to make Yellow Tail available everywhere and for all occasions – from a late night run to the convenience store to a fabulous, organic meal. Product Packaging Yellow Tail’s simple and elegant packaging made it easy to understand the varietal being purchased and supported the brand’s quality image. However, Australian competitors have begun to innovate. Banrock Station is exploring the Wine Box and The Little Penguin has begun distributing single serving wine six packs. Yellow Tail management wondered whether it made sense to offer a twist off top instead of the cork to enhance the convenience of a brand that was consumed everywhere. Yellow Tail was also considering the introduction of wine six packs
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