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    SM - Case Analysis-Crafting Winning Strategy

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    shukla224
    The US wine industry in 2001 was facing oversupply and low growth in demand which led to low profit margins and price reductions. New entrants could target the 90% of non-regular wine consumers by offering differentiated premium products or similar products at lower costs. Established players could expand the market by changing perceptions of non-wine drinkers through innovative marketing campaigns and gaining wider distribution access. The industry had long competed on factors like quality, price, substitutes from beer and spirits, and investments in marketing, distribution channels, and land/equipment.

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    SM - Case Analysis-Crafting Winning Strategy

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    shukla224
    81 views6 pages
    The US wine industry in 2001 was facing oversupply and low growth in demand which led to low profit margins and price reductions. New entrants could target the 90% of non-regular wine consumers by offering differentiated premium products or similar products at lower costs. Established players could expand the market by changing perceptions of non-wine drinkers through innovative marketing campaigns and gaining wider distribution access. The industry had long competed on factors like quality, price, substitutes from beer and spirits, and investments in marketing, distribution channels, and land/equipment.

    Original Description:

    Crafting Winning Strategy in a Mature Market

    Original Title

    SM_Case Analysis-Crafting Winning Strategy

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    The US wine industry in 2001 was facing oversupply and low growth in demand which led to low profit margins and price reductions. New entrants could target the 90% of non-regular wine consumers by offering differentiated premium products or similar products at lower costs. Established players could expand the market by changing perceptions of non-wine drinkers through innovative marketing campaigns and gaining wider distribution access. The industry had long competed on factors like quality, price, substitutes from beer and spirits, and investments in marketing, distribution channels, and land/equipment.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    81 views6 pages

    SM - Case Analysis-Crafting Winning Strategy

    Uploaded by

    shukla224
    The US wine industry in 2001 was facing oversupply and low growth in demand which led to low profit margins and price reductions. New entrants could target the 90% of non-regular wine consumers by offering differentiated premium products or similar products at lower costs. Established players could expand the market by changing perceptions of non-wine drinkers through innovative marketing campaigns and gaining wider distribution access. The industry had long competed on factors like quality, price, substitutes from beer and spirits, and investments in marketing, distribution channels, and land/equipment.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 6

    Crafting Winning Strategies in a

    Mature Market:
    The US Wine Industry in 2001

    Section 3 Group 12
    FT183004 ABHISHEK SHUKLA
    FT183033 GOVIND RAJ
    FT183034 HARSIMRAN PREET SINGH
    FT183035 HRITUPARNO DEB
    FT183099 SWAPNIL SRIVASTAVA
    FT183104 VANESSA J VADASSERY
    Attractiveness of Industry

    The production exceeded the demand by 15-20% in


    1997-2000.

    Ease of entry for new wineries into the industry.

    Low profit margins and reduction in prices low


    growth in demand and over supply of grapes.

    Substitutes: Majority of the US consumers preferred


    beer/spirit over wine.
    New Entrants: Strategy

    A new company can enter under the following


    conditions:
    Offer similar product at lower cost
    Product differentiation under the premium
    segment

    Strategy:
    Target the remaining 90% of non-regular wine
    consumers
    Can create a new segment in between the
    premium and budget wine
    Established Player: Strategy

    Expand the market in the non-wine drinking segment

    Change the perception of non-wine drinkers

    Conduct innovative campaigns like wine-tasting


    events

    Invest in new technology

    Gain wider access through the distribution channels


    Factors of Competition and
    Investment

    Competition:
    Substitutes- against Beer and spirit
    Quality and Price Premium and Budget segments

    Investment:
    Marketing
    Shelf space
    Distribution channels
    Land and machine leasing
    How long has the industry competed on
    these factors?

    The competition on these factors have been present


    since quite a long time.

    Competition on quality:
    Began in France during the 18th century.
    Premium market and low-priced market.

    Competition on substitutes:
    Since the late 1990s

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