Ceja Vineyards: Marketing to the Hispanic Wine Consumers? Case Solution
1. What is the greatest challenge for Ceja Vineyards in the next 5-10 years? Be specific and explain why.
The company is run by a family that mainly focuses on diversifying. The company aimed to target the Hispanic clients in the country by leveraging the Hispanic source and faced some critical challenges. The challenges consist of:
The first challenge is that the marketing plan is not up to date. Moreover, the company uses a traditional three-tier distribution channel. The traditional strategy consists of selling wine products through boutique distributors. However, they do not operate in every state of USA.
Another challenge is to manage the growth of their main product, wine. The club member changed the business with the 25% of wine, plus a 10 percent cost for quarterly shipment. It is a hint for small wine companies to increase the demand of wines in oder to attract families and friends, this is also known as viral marketing. If the demand increases, then the company would have to produce more products that will lead to increase in profit for future years.
The third challenge that company would face in future is the use of distribution channel for their Hispanic customers. In order to target the segment of Hispanic consumers, the company would require reallocation of marketing budgets from boutique distributors. Along with this, the high income Hispanic group mostly lives outside of US; for this great opportunity, the company will need large distributors that have the export sales capabilities to attract and reach those high profile customers that demand wine.
Therefore, in nutshell the major challenges that the company might face in future consist of:
- Better marketing strategy to attract the Hispanic community
- The company’s challenge to increase profit and club membership
- The challenge is to use the update marketing plan
4. What segmenting dimensions (behavioral, geographic, and demographic) will you use to identify and describe potential target markets for Ceja Vineyards? Justify your choices
The demographics dimension would be used to identify potential target markets for Ceja. The demographic results show that people from ages 42 to 63 are the biggest wine consumers. This leads to increase in volume and the amount of sales with the price range of $20 to$ 75. It is also identified that, $ 50 million US Hispanic expected by 2010 whose median income is $ 653 billion by 2003. The wealthy wine conscious Hispanics, who are highly educated likely to spend $ 20 or more than this amount on wine bottle than the non-Hispanics. The Wine Market council surveyed that the 50 million people use to drink tequila and beer and 31% entitle to drink wine. The total population in the US is more than the 30 million people are Hispanics.
Along with this it is surveyed that the California has increased the Hispanics than the Texas by the 12.5 Million and the highly densely population with US Hispanics is in the Southern and west coast. In theses segments, there are wine drinkers at the rate of 23%. The overall demographic result shows the biggest opportunity to convert people in frequent wine drinkers
The adult market segment that mainly identifies the image pursuers and traditionalists. The image seekers change their brand depending on their liking and disliking. The traditionalists are very hard to capture in the first marking plan. Another segment is senior or adult segment and found as the fastest increasing segment for the wine consumption……………….
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