Robert Mondavi, founded in 1943 in California, is currently valued at $600 million with EPS of 26%. However, declining sales and increasing imports have created pressure to reconsider its market position. Key issues include declining sales, market diversification beyond local markets, and industry consolidation through mergers. The recommended strategy is to decentralize distribution, use separate marketing for brand categories, enter joint ventures in new markets like South Africa, and differentiate products through branding.
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Robert Mondavi, founded in 1943 in California, is currently valued at $600 million with EPS of 26%. However, declining sales and increasing imports have created pressure to reconsider its market position. Key issues include declining sales, market diversification beyond local markets, and industry consolidation through mergers. The recommended strategy is to decentralize distribution, use separate marketing for brand categories, enter joint ventures in new markets like South Africa, and differentiate products through branding.
Robert Mondavi, founded in 1943 in California, is currently valued at $600 million with EPS of 26%. However, declining sales and increasing imports have created pressure to reconsider its market position. Key issues include declining sales, market diversification beyond local markets, and industry consolidation through mergers. The recommended strategy is to decentralize distribution, use separate marketing for brand categories, enter joint ventures in new markets like South Africa, and differentiate products through branding.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
Robert Mondavi, founded in 1943 in California, is currently valued at $600 million with EPS of 26%. However, declining sales and increasing imports have created pressure to reconsider its market position. Key issues include declining sales, market diversification beyond local markets, and industry consolidation through mergers. The recommended strategy is to decentralize distribution, use separate marketing for brand categories, enter joint ventures in new markets like South Africa, and differentiate products through branding.
Copyright:
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Group # 3
Robert Mondavi and The Wine Industry
Name Tanvir haider shubho
Id 071 561 030
Syed as-sadeq Tahfim
071 881 030
Aseef Shaheed Zahid Akthar Mehedi hasan ovi Faisal Azam
072 034 030 072 044 030 072 488 030 072 654 030
Case Overview Robert Mondavi and Its vision Wine Industry Value proposition Current Market situation Mondavi s Financial Position Key Issues Strategy and Recommendation
Value Proposition repositioning by focusing on its Brand Equity Followed by achieving greater market share in worldwide.
Robert Mondavi start the operation: 1943 Place: California its current market value :$600 million. With EPS of 26%, chairman : Micheal Mondavi CEO: Greg Evan
Robert Mondavi With new CEO came the new challenges. Persistent import growth from Australia and declining sales of Mondavi Wines created pressure on Mondavi to reconsider its position in market.
Mondavi s Competitive Advantage
Competitive positioning view: Brand valuable
uniqueness
Brand Difficult to imitate
Scarce
Mondavi s X factors X-Factors Innovative Technology Different business units for different brand segments
Key Issues Declining sales Diversifying the market(other than depending on local market only) Consolidation of Global Wine Industry Merger of rival Firms Diversified alcoholic beverage companies making aggressive push into the Premium Wine business.
Robert Mondavi s Wine Making
Oak barrels usage to age the wine which became a signature of Mondavi Own Vineyards: for RMW 63% of grapes came from company vineyards Modern technology: ensuring gentle handling and highest quality fermentation and aging process.
Portfolio Segmentation Robert Mondavy Winery
Napa Valley Wines District Reserve Spotlight
Woodbridge RM Costal Private Selection Other California Brands Imports
Differentiator Cost leader
Robert Mondavi Niche Market Specialized in wine industry It has One market segment only
Leading Brands in U.S.A
1.40% 1.60% 8.80% 1.60% 1.40% 1.40% The wine group Gallo Gallo Gallo 2.00% Constellation Trinchero states 2.10% 4.90% Robert Mondavi 2.20% Foster's Constellation 2.80% 4.50% 3.20% 3.50% 3.60% Gallo Diego Gallo Kendall Jackson The wine group Constellation
Consumption in 2005 Italy France 2% 2% 3% 11% 7% 1% 2% 2% 6% 8% 9% 2% 10% Spain 18% Germany Belgium 17% United Kingdom Australia Argentina Chile United States Canada Japan China South Africa
California All other States Europe Canada Japan Latin America Asia Pacific Air, Cruise, Duty-free
72.50%
Cash Flow Calculation(dollars in Thousands)
Year Cash Flow from Operating activities Cash flow from investing activities Cash flow from financing activities Net Cash increase (decrease) at the end of the year Cash at the beginning of the year Cash at the end of the year 2000 26196 (84894) 57154 (1542) 1999 27948 (47612) 21525 1861 1998 (18470) (39941) 60944 2533
4544 3002
2683 4544
150 2683
Robert Monavi s Distribution
100 independent wine distributors in US Export through importers and brokers in other nations. Employed around 200 salesperson, but operated as single sales force. Difficulty as single sales force as educating. Promoting, demand forecasting, pricing all took very long time, and results inefficiency. 20 states ban direct sale of alcohol and imposed severe restrictions on direct distribution
Marketing Various events organized Training sessions at fine restaurants to demonstrate their products Wine testing programs Radio and TV advertisements Print advertising
Growth of different segments
60% 50% 40% 30% 20% 10% 0% 1999 -10% 2000 2001 Woodbridge RM costal RM Winery Imports Other California Brands
BCG Matrix STAR Woodbridge QUESTION MARK Other California brands
CASH COW RM Coastal RM Winery DOG Imports
New Strategy Objective Capture the market of the rivals Increase and sustain revenue growth Boost the sales of existing brands Expand globally specially in African region
Decentralize Distribution system
Currently one sales force for all the brands Sales force needs to be decentralized according to brand categories Focus on the sales of different brands separately Open own distribution office in different countries to increase their foreign sales
New Marketing Approach
Separate marketing strategy focusing the brand categories and quality Use of media for ultra premium, super premium and luxury wines Innovative marketing approaches through distribution for popular premium Marketing of the three other existing popular premium brands to gain more market share
Join Venture in South Africa
South Africa is the heart of Africa. Robert Mondavi never export in African region Export Wine from south Africa to other African countries. Quality of grape is high Establish joint venture with South African wine company Use own process and technology to upgrade existing facility Differentiate product through brand
