Ceja Vineyards’ Decision to Directly Market to the Hispanic Community Analysis Ceja Vineyards’ Decision to Directly Market to the Hispanic Community Analysis The Case Study, “Ceja Vineyards: Marketing to the Hispanic Wine Consumer?” by Armand Gilinksy Jr., Linda I. Nowak, Cristina Santini, and Ricardo Villarreal deSilva (2010) outlines a critical decision a small, family owned winery in California is facing. The winery, Ceja Vineyards, is located in the Carneros region and is equally owned by four Mexican born immigrants of farm workers. Amelia Moran Ceja, President, and her husband Pedro Ceja, Artistic Director, along with Pedro’s brother Armando Ceja, Winemaker and Vineyard Manager, and his wife Armando Ceja comprise the ownership team. Amelia, Pedro, and Armando grew up working in the Napa Valley vineyards, and in 1983 purchased fifteen acres in the Carneros region to begin their own vineyard. They planted their first grapes in 1986, and had their first harvest in 1988. From 1989 to 2000 they purchased additional plots of land and planted a variety of grapes. Their wine grape growing company is named Vina del Sol. They produce enough grapes for 65,000 cases of wine per year. In 2001, the company took another large step and began producing their own wine, under the branded name Ceja Vineyards. Their wine is made using their own grapes grown by Vina del Sol. In 2002, Ceja Vineyards was named “Winery of the Year” by a panel of ninety wine writers. Now it is 2007, and their wine production has doubled almost every year to the current amount of 10,000 cases a year. Problem Identification
The key issue in the case study is whether or not they should make a concerted effort to target Hispanics in their marketing efforts. They see the potential of marketing to Hispanics due to the influx in Hispanic population in the U.S., and the continued projected increase. Their main concerns, are that they will have to change their marketing strategies, and incur substantial promotional expenses. They also will not lower their wine prices just to market to Hispanics. Amelia wants the company to focus on direct sells to the consumer so they don’t have to depend on the current distribution system. Analysis
To understand the present situation Ceja Vineyards is in and to best recommend a course of action, three analysis techniques were employed. These three are the SWOT Analysis, Porter’s Five Forces, and Value-Chain Analysis. SWOT Analysis
A SWOT Analysis was applied first to the situation to assess the internal Strengths and Weaknesses, along with the external Opportunities and Threats. Ceja Vineyards has a multitude of Strengths. Their ownership knowledge is based on a lifetime of real world experience. They grew up picking grapes, and control every aspect of the company guaranteeing top quality. They have a unique history, in that they are Mexican immigrants and the company is family owned. The vineyard is in a premier location. Carneros was the first wine region based on climate rather than political boundaries. Their wine is estate grown using grapes from their wine growing company, Vina del Sol. The company is debt free from years of solid investing and planning. They implemented a wine club, to be able to sell directly to the consumer. Ceja Vineyards is not without its weaknesses.
Their small production amount limits their marketing strategies due to not being able to compete head to head with the mega-wineries. They also have limited distribution due to their size, though the emergence of Boutique distributors and their wine club has helped. As for external factors, Ceja Vineyards looks to have a plethora of Opportunities to increase their demand. They could target the ever growing U.S. Hispanic Market. There are currently forty million Hispanics in the U.S., 20% who earn more than $100,000 per year. They are also projected to be the fastest growing population for the foreseeable future....
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