Case analysis-Ceja Vineyards
Ceja Vineyard, a California based producer and marketer of premium wine has seen a decent amount of growth in their business over the last three years. However the owners of Ceja vineyards, led by CEO Amelia are trying to decide whether to primarily target the Hispanic market which will cause them to completely change their marketing efforts or leave it up to the distributors and retailers to make that decision. Problems
For the Ceja vineyard team to be able to determine what decision to be made we must first look at some of the key issues they face. First they don’t have a business or marketing plan to execute a drive into the Hispanic market and they are also limited in marketing due to the three-tier system. Another issue that is noted is that the price point of their current premium wines might be too high for the Hispanic market. Finally the last challenge which is more like an opportunity is how Ceja vineyards will manage the growth of the wine club, which has seen a considerable amount of growth since its inception. Analysis
According to the data, Amelia clearly states the lack of a business /marketing plan that Ceja vineyard has when she states that the last time a plan for the business was developed was in 1990 during her student days. The data also reveals that expanding distribution by traditional channels would be extremely difficult due to the limits imposed by the three tier system. The three tier system comprised of Producer-distributor-retailer. This was dominated by the big 5 us distributors which made it extremely difficult for smaller firms like Ceja vineyard to compete. Another issue that Ceja vineyard had to face was the uncertainty to how the Hispanic consumers would receive their higher priced wines. Pedro, Amelia’s husband according to the data believed that to target the Hispanic consumer they would need to reposition their price, a marketing strategy that could hurt their boutique...
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