Ceja Vineyards: Marketing to the Hispanic Wine Consumers? Harvard Case Solution & Analysis

Ceja Vineyards: Marketing to the Hispanic Wine Consumers? Case Solution

Introduction:

The organization was established in 1983. It used to make an assortment of wines. The organization trusted the mystery of their prosperity is differing qualities. In addition, their reasoning is to make wine a part of ordinary life. They used to create two types of wine that are white wine, and red wine. Though, white wine incorporates Chardonnay and Sauvignon Blanc and red wine incorporates Merlot, Pinot Noir, Sauvignon, and Vino de Casa Red Blend. The cost of one container of wine can range from 20$ to 75$.

The objective of the case is to identify the factors of their success and their distribution channels in order to attract Hispanics and non-Hispanics customers through a the survey of demographical factors and estimating the success of the company by examining company’s financial performance and to provide valid recommendations, which the company should follow.

1.      What has made Ceja Vineyards successful to date? Discuss both favorable and unfavorable factors

The company has a Hispanic background that highlights their traditional base. The company’s founder was a Mexican immigrant to the United States. The company produces high quality wine products by controlling all practices and processes of production, including the cost.

The company is successful to date because the company uses a diversified approach in its business. The company sells wine products; along with that, the company supplies grapes to other entities for production of wine.

The favorable and unfavorable factors that led to success of the business:

Favorable factors:

  1. It is family owned business founded in 1983 and work with their mission and vision statement
  2. High quality wine production
  3. Produce variety of grapes and wine
  4. Diversity is the key to the success
  5. The philosophy is to make their wine a part of everyday life

Unfavorable factors:

  1. Hispanic Consumers
  2. Tasting and sampling events
  3. Wine tasting rooms
  4. Reward programming
  5. Limited distribution

2.      How likely it is that Ceja will be able to maintain its differentiation strategy in the future? Explain why or why not.

Currently, the company is standing at the differentiation strategy, which focuses on offering unique products to a particular group of customers. Along with this, the company is focusing on feasibility and innovation of the product with the decrease in the production cost. The company uses boutiques and direct sales as a distribution strategy. It produces high quality wine with a variety of grapes.

The major weakness of the company is that the brand has a limited distribution network. The company is operating at a smaller scale that does not operate outside its home country due to a limited distribution strategy.

Therefore, it is evaluated that the company would not be able to maintain its differentiation strategy due to lack of awareness, as they focus only on Hispanic people to buy their products. The company should work on its distribution strategy by adopting the alternative solution in order get more profitable. Therefore, the alternative should be:

Alternative 1: Niche market strategy:

It is high opportunity strategy to target the high-income Hispanic people, especially the adult Hispanic wine consumers. Since Hispanic win consumers are the most attractive niche market segment.

Alternative two: Global expansion strategy:

The company should focus on increasing their target market globally along side with the Mexican market; this will help the company to increase its market share. For this purpose, the company would need to increase their distributors in order to save themselves from export trade regulations

Therefore, the company has to change its differentiation strategy in order to be more profitable. It is better for the company to choose any one of the alternatives and get high profits....................

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