EXECUTIVE SUMMARY: EXPANSION INTO THE CHILEAN MARKET, A LONG-TERM MARKET STRATEGY
The Mondavi family has a history of identifying opportunities both within Napa Valley and outside of the United States. This strategy developed by Robert Mondavi allows the Mondavi family to bring their expertise and style to other great winemaking regions of the world and produce quality wine which can then be shared with the world. Globalization also allows for various winemaking regions to cover for others during periods of shortage.
The Mondavi family's long term strategic goals include the following:
International strategy for differentiation
Globalization of holdings to cover periods of shortages
Production of quality wine that consistently meets with Mondavi quality expectations In order to continue to achieve these objectives, we have identified Viña Errazuriz, producers of Caliterra, in Chile as a potential international partner. Developing a partnership with Errazuriz will benefit Mondavi because of their local expertise, human resources and government relationships. Errazuriz is a well respected vineyard and conveys a consistent brand image as Mondavi's other vintages.
By strategically positioning Caliterra at the lower end of Mondavi's brand ladder, Mondavi can take advantage of the large quantity of land available at Caliterra vineyards and the low costs associated with labor and land in Chile.
Caliterra will benefit from the association with Mondavi's name and the improved quality of their wine due to expertise transfer. Mondavi will benefit through additional supply to cover periods of shortage, meeting internationalization goals and increased profit due to a large number of sales of these strategically placed wines.
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