Case Questions: MontGras
1. (a) To what extent can MontGras control its own market position, as opposed to being dominated by the country-of-origin effect, and be perceived as a “Chilean Wine”?
MontGras, the export-focused winery that was founded in 1992, unlike many other Chilean wineries, actually possessed a considerable control on its own market position in the late 1990s and early 2000s. Although the overall consumer perception towards Chilean wine products indicated that they need to put more efforts to build a solid image globally and that their major advantage is the low price, the situation might not necessarily hurt MontGras’ current market position if and only if the management the link between the
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Thus, my recommendation for MontGras in UK would be to diversify its distributor partnerships as a way to prevent over dependency, which would somehow cast uncertainty for MontGras’ positioning strategy in the long term. Also, in order to pave the way for future expansion in premium segment, MontGras should keep records of the new marketing plan for Ninquen wines that if the targeting sales of 5,000 cases can cover the proposed GBP 20,000 and generate profit. In the highly fragmented US wine market, with regulatory three-tier distribution system, MontGras had to tackle business with importers, which are usually state-licensed wholesalers too. In addition, by the four prescribed criteria in choosing a countable partner importer, MontGras should be able to prevent the failures from unsuccessful previous partnerships. The first candidate of its partner distributor, World Wine Importers, a larger player that operated 200 brands with a 60-staff sales force, proposed to promote the Reserva line in a volume-oriented strategy with a price range of $8-$11; Cabo Imports, another candidate that operated 50 brands and a sales force of 35, offered a distinct proposal for MontGras that it intend to raise consumers’ perception towards MontGras’ quality and pric range also to broaden the return for both parties through setting a price range $8-$15, and it also intend to release the