Stratus Winery
BUSI 2208 H
Introduction to Marketing
Winter 2010
Assignment 2: Individual Case Study
Professor Diane Isabelle
Thursday, March 4 2010
Table of Contents
I. Executive Summary 3
II. Problem Statement 3
III. Situation Analysis
External Analysis 3
Internal Analysis 5
IV. Segmentation Analysis 6
V. Strategic Alternative
Alternative 1: Golf with Stratus 9
Alternative 2: Learn with Stratus 9
Alternative 3: V.I.P. After Party 10
VI. Recommendation 11
VII. Implementation 12
VIII. Conclusion 12
IX. References 13
X. Appendices 15
I. Executive Summary Stratus Vineyards is
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With per capita wine consumption increasing and per capita beer consumption decreasing, Stratus has the opportunity to capitalize on Canadian drinking preferences. While Generation Y has become the new shopper (Neilson 2009), they have the least discretionary income of all the generational cohorts and the younger portion is not legal to drink alcohol in all provinces of Canada. Stratus will be challenged to target the largest buying power in Canada.
Technological
TastingRoom Inc. has launched a new technology that allows wineries to offer authentic 50 ml sample-sized bottles of their products. The process allows for wineries to package and preserve the exact quality and taste of their wine, in a sample size bottle. This is an excellent opportunity for Stratus to promote and distribute their wine. Stratus’ eco-conscious technologies are expensive and technology has a reputation of becoming obsolete, Stratus faces the threat of their state-of-the-art technologies becoming expendable.
Competitive
An opportunity for Stratus is the fact that the barrier of entry for a winery of their quality is very high. Stratus is a leader in the eco-friendly and organic Canadian wine industry, and one of the only buildings in Canada to be fully certifies by the Leadership in Energy and Environmental Design initiative. This provides Stratus the opportunity to capitalize on their leadership with eco-conscious consumers looking for eco-friendly products. Although Stratus
2. MMBC is ignoring the shift in the consumer segment for beer companies. 21-27 year olds are spending more on liquor and most have not yet developed brand preference.
Wine has been a popular beverage for many years amongst different societies. The process of winemaking is one of the most complex and detailed processes, where every step is meticulous towards ensuring the best quality wine is produced. However, different phenomena are able to affect the wine even after it is bottled and stored.
The stakeholder group that will gain most of the benefit from lowering the drinking age to 18 is the alcohol companies. In a sense, the stakeholders between ages 18 and 20 and alcohol companies go hand in hand. Because these young adults are, for the most part, eager to purchase alcohol, the potential skyrocket in sales for that age group would ensure massive profits for alcohol companies. This is made clear considering that underage drinkers in the United States consumed “an estimated 19.7% of the total alcohol consumed”
We must verify whether this focused strategy will highlight shared values of the middle-aged, blue-collar persona and the younger, point of entry target without alienating our current consumers. Since there is a dominant social element to our father-son scenario, we can conduct primary, qualitative research in the form of focus groups to verify that men and their sons can enjoy our product in the pub setting, and can develop an emotional bond amongst one another to Roaring Fork Beer. Our two strategies focus on Psychographic, Geographic and Demographic segmentation. Based on the association to blue-collar (psychographic), middle-aged males (demographic) in the Colorado area
As Figure 2 shows, both groups under the age of fifty are similar, possessing a strong preference for beer followed by wine and liquor. However, fifty and older consumers’ preferences show an increased interest in wine and a decrease in both beer and liquor. This shift suggests that many beer drinkers move away from beer as they age and gravitate toward wine. There is significant market potential if Bud Light can lure these fifty and older drinkers back to beer and away from wine.
The smooth taste of American Contradiction is intended for a broad market so that anyone of legal drinking age may enjoy. Male, female, no one is excluded but, American Contradiction’s advertising will be focused more towards the male segment of the available market. The target market of age for American Contradiction is 21 plus. This approach targets all, of age individuals and businesses that can purchase the product. The reason for this all-inclusive targeting is based on an analysis of the distilling industry, which reports an overall trend in increased per capita spending on alcohol (Stivaros, 2015). The income level of a target consumer of American Contradiction is based on the per capita of disposable income, which is roughly defined
In the article, it talks about the growth of alcohol consumption of 15% over the decade through 2015. Population growth is the primary driver and well as generational effects as American millennials. These millennials are more interested in cocktails and craft beer that major liquor companies put the U.S. front and center of their strategies. But it also explains that as the new generation takes over, the liquor sales will slow to just 0.2%. The new generation drink less due to increased pot smoking. Therefore, these liquor businesses need to plan for a soberer future.
Bottled up and on the Go Inc will offer customers throughout the Niagara, Hamilton and Halton Regions, a variety of Local Wines and Cheeses. It is a Mobile Wine Vendor designed to stand out at festivals and events, as a Classy brand with quality wines using locally sourced brews, ingredients, as well as establishing itself as a safe vendor for people to enjoy , while boasting exceptional customer service.
Vincor is a well established wine and wine-related producer based out of Mississauga Ontario. Vincor wants to use their current success and venture into the refreshment market by introducing a new line of coolers. In order to do this Vincor will have to decide what type of cooler to produce as well as the design, packaging, price and marketing strategy. Market research was conducted to determine who the consumers in the alcoholic refreshment industry were, what their interests were and what the current trends were. Vincor determined that 56% of Canadians 19 and older claimed to drink one or more of the different types of refreshment beverages.
Executive Summary - Coors’ prominence in the beer industry has always been overshadowed by its bigger competitors like Budweiser, Miller and Molson, but new insights unearthed by this report may pave new roads for a more exciting future. The first part of our analysis describes the typical Coors drinker as an aged 25 to 44 male light beer drinker consuming almost seven bottles a week. He also works in a managerial or professional occupation earning over $30,000 annually. Coors’ three competitors also exhibit a similar consumer base with the exception of Molson being predominantly regular beer consumers. These conclusions are tested to be statistically significant.
Belle Meade’s decision to create a winery was an ingenious way to expand their enterprise. In fact, their success has led to some problems meeting demand. Therefore, the need is present to increase wine sales by expanding their production facility. In addition to collaborating with local restaurants to supply wine, Belle Meade could collaborate with other historical nonprofit organizations to market products and services. According to Furmańska-Maruszak, and Sudolska (2016), a collaborative approach to solving social problems is integral to an innovative strategy, which is vital for survival in the competitive environment. While collaborating with local competitors may sound counterintuitive, collaboration efforts could compete with Louisville,
Welcome to the wine cellar business. As Production Manager of the Fine Wine Rack Co., you
RMC employs a standard three-tier distribution system where the company sells to wholesalers who in turn sell to retailers who sell to the public. The company finds its niche in the “premium” and “ultra premium” segments of the table wine market (Burns et al., 2001).
Our target market is primarily men and women. Their education level consists of a bachelor's degree or higher, with an age ranging from 21-34. Their income is ranging from $20,000 - $45,000. These consumers are image seekers, meaning they are people who want to be known as a status symbol. They have basic wine knowledge and are open to new innovations. They enjoy specialized packaging because they want to feel the confidence that accommodates the luxury lifestyle. It is in their nature to check online lists and research scores of competing wines. The personality of our customers is eccentric, extroverted, open to innovation, and outgoing. These customers look for a wine that is cheap, high quality, luxuriously designed and has a consistent
Recently, there have been increasing trends of younger customers consuming alcoholic beverages. With improvements in economies, education and technology, younger