1. (a) Discuss the extent to which you think MontGras can control its own market position, as opposed to being dominated by the country-of-origin effect, and be perceived as a “Chilean Wine”? (8 points) MontGras aim was to produce higher-quality wines, they can use this strategy as a competitive advantage to market and export the wine and extend its market also. While the other Chilean wine producers focused on selling cheap wine and using the "Chilean Wine" campaign to market the wine in the United States, United Kingdom , Germany and Japan. MontGras used the breakaway positioning to produce higher-quality wines that commanded premium prices. This could help MontGras to control its market as compared to the other Chilean wine producers whose focus concentrated on producing same quality wine at a low price to sell internationally. Therefore MontGras, has a niche market compared to its competitors who are concentrating on the low priced wine by MontGras . Wine consumers select the type of wine using the country of origin, and since Chile did not have an attractive image as a country this made it hard to market the “Chilean wine”. MontGras need to use the price strategy to market the wine other than using the country of origin as a positioning strategy. Because if they use the “Chilean wine” campaign then they will have competition from the many markets players in Chile who focused on export.
(b) What implications does this have for marketing strategy? (7 points) MontGras will have a well-established niche market from the consumers that look for a premium quality wine and therefore they will face less competition from the other low priced Chilean wines. The price strategy will create a brand image in the consumer's mind since high price is a guarantee of a quality wine. Chilean wine industry had many players in 2006 and by participating at the “Chilean wine campaign” MontGras would not attract customers due to the competition from the Chilean well...
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