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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 Analysis3
Internal Analysis5

IV. Segmentation Analysis 6

V. Strategic Alternative
Alternative 1: Golf with Stratus9
Alternative 2: Learn with Stratus9
Alternative 3: V.I.P. After Party 10

VI. Recommendation11

VII. Implementation 12

VIII. Conclusion12

IX. References13
X. Appendices 15

I. Executive Summary
Stratus Vineyards is an eco-friendly winery operating in a competitive market place. With increased competition from both domestic and foreign brands, Stratus lacks clear consumer awareness of its brand and a large market share. Given that Stratus prides itself on its quality products and limited production output, it is recommended that Stratus target premium consumers. Stratus can capitalize on the varying lifestyles of Canadians and could target the Suburban Gentry by sponsoring select suburban golf tournaments, the Grads and Pads by offering an extension of onsite events in Toronto, Montreal and Vancouver to provide value-added experiences, and the Cosmopolitan Elite by hosting V.I.P. After Parties after ballet, opera and symphony performances in Toronto, Montreal and Vancouver. V.I.P. After Parties provide the largest profit potential, target the second largest market segment, and the Cosmopolitan Elite are the most financially successful lifestyle; making V.I.P After Parties the recommended alternative. With the V.I.P. After Party alternative, Stratus can gain a significant market base, increase consumer awareness and increase overall profit. II. Problem Statement

The Canadian wine industry has seen tremendous growth in the past few years, despite facing increasing import competition. Stratus Winery is a leader of quality and efficiency with its unique and progressive stance on eco friendly and sustainable winemaking practices. In a marketplace with increased competition from both domestic and foreign brands, Stratus must develop a strategy to increase its value-added experiences, increase consumer awareness of its innovative products, and increase its market share. III. Situational Analysis

External Factors (Please see Appendix A for full details)
Political/Regulatory
An opportunity for Stratus is the Liquor Control Board of Ontario (LCBO) changing the label “Cellared in Ontario” to “Blended from International and Canadian Wines”, Stratus can capitalize on marketing their all Canadian wine as all Canadian, allowing for less consumer confusion. The government of Ontario has invested $1.5 million for the development of better grape growing practices; this could provide Stratus an opportunity to expand on their operations. A threat for Stratus is the lack of national Canadian wine standards which causes confusion for the consumer as there is no clear quality benchmark on which to base purchase decisions. Shipping across the country involves increased costs for different provincial labelling standards and legal requirements, another threat for Stratus. Economic

Economic opportunities include the GDP has growing almost $1.5 million this past quarter, the stock market increasing (Stats Can 2010), the increasing purchasing and consumer confidence within Canada, resulting in restaurants and consumers purchasing more wine (Wines & Vines 2009). While consumers are spending more, they are looking for cheaper options (Neilson 2009), a possible threat to the high priced wines of Stratus. Social

Consumers are looking for sustainable and environmentally friendly products (Neilson 2009). This provides Stratus the opportunity to promote their eco-friendly products, as they are in high demand. Another...
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