The marketing plan will first of all analyze the current situation of the company and the competitors with an additional analysis of the environment. Furthermore, the analysis will be combined with identifying the strengths and weaknesses of the company along with the opportunities and threats apparent for it by using the SWOT model.
Ceja Vineyard was established in the year 1983 and is operating in the wine industry for the last three decades. The company is run by a family and has been restricted in its approach from the very beginning but has focused primarily on diversifying. The company is aiming to target Hispanic clients in the country leveraging its Hispanic origin, but it will face some critical challenges. The paper will analyze the situation for the company use strategic models in order to present recommendations to help the company in finalizing a decision and will develop a strategic marketing plan to facilitate the company in making the right decisions. For promotion and marketing, the company is restricted regarding advertising due to laws and regulations. On the other hand, the company uses different trade shows, wine club, and awards and acknowledgments for promoting and selling its brands.
The customers are the highly educated, middle-aged people, mostly from the Hispanic belonging and have a high level of income. These people mostly prefer taste and quality and seek pleasure in the product rather than focusing on the prime utility of the product. Therefore, the idea suggests that the consumers are pleasure seekers and have a high tendency towards taste. Their income brackets allow them to purchase premium wines and seek the best quality wine as they have the knowledge towards the taste and quality. Besides that, they belong to the high-end segment of the market and mostly comprise of the upper class and upper-middle class.
The competition for Ceja Vineyards is intense, especially from the big five in the industry who hold approximately 52% of the market share. Southern Wine and Spirits are the biggest competitors who are amongst the top wine producers and distributors in the country. Along with this, the major threat is from Glazers, Charmers, Youngs and NDC. Besides that, there is a growing concept of consolidation between producers, retailers and distributors which is becoming a major threat and competitors. On the other hand, the local importers, import wine from cheap producers around the globe are a major competitive threat. These importers contain 32% of the market, and the company will have to cater the threat posed by them. However, these competitors are targeting different market segments and mostly catering to the mass market. They are using different channels like sponsoring events and below the line activities to market their products.
The industry is under the control of AFTD (alcohol, tobacco, and firearms division) that is being regulated by the IRS; therefore, the tax regulations for this specific industry are subjected to be high. Around 18 states in the country own the distribution channels out which some states have the monopolistic control over the retailing of alcoholic beverages.
Besides that, this particular industry is regarded as amongst the highly regulated industries and the companies can only approach the retailers and wholesalers that are being approved by the authorities. However, the company has the feasibility of selling the products directly as the open regulatory environment in the country provides this opportunity.
The economic impact of the wine industry is impressive on the country’s economic environment as it contributes a great deal through higher revenues and also provides placement opportunities to eradicate unemployment. The industry is big, and the profit margins are high, therefore, the producers are subjected to bear higher taxes, and it is understood phenomenon for the wine producers in the country. The impact of these taxes forces the producers to demand high prices that result in a decrease in demand. On the contrary, this scenario is expected to fade in the coming years that will allow the companies to generate high profits and revenues…………………..
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