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Manufacturer of Table and Dessert Wines
Background
The firm is a manufacturer and marketer of table and dessert wines
selling its products throughout the Northeast. Its heaviest concentration of
sales was in the upstate New York region. Its market share began to erode and its
sales began to plummet, however, as the volume of imported wines entering its
traditional market areas increased.
The situation prompted the firm's management to consider reducing the winery's
dependence on the upstate New York market, by
expanding into other geographical markets, specifically the Southeast and/or the
Midwest. NYS TAAC personnel suggested, and the firm's management came
to agree, that they had insufficient information on which to make such an
assessment.
Assistance Provided
Although the firm had available a wealth of information on the wine
industry in general, it had limited statistical information on its own products
and particular markets. The NYS TAAC, therefore, recommended that a comprehensive
analysis of the firm's products, current markets, potential markets, and consumer
base be performed before any action was taken.
As a result, the firm commissioned a market research project to determine
consumer attitudes, the firm's reputation, consumer consumption patterns, and the
advertising and promotional needs in each of the firm's existing and potential
markets.
Project Results
The market research project successfully identified those areas requiring
significant improvements and isolated geographic regions appropriate for
expansion attempts. Using the information gained from the project, the firm
developed a long-range plan that is expected to improve its future sales
volumes.
An unexpected course of action, one that would offer immediate benefits to the
firm, was also suggested by research conducted during the project. It was
discovered that a significant market existed among adults for non-alcoholic
grape juice. Since most existing products of this type were aimed at children,
the firm concluded that it could successfully market a grape juice product
targeted at adults.
As a result of this decision, the firm committed a portion of its idled
processing and bottling capacity to the production of grape juice and rehired 16
previously laid-off employees to help produce and introduce this new product.
The successful introduction and marketing of the non-alcoholic juice product
will make it a growth segment for the firm, providing even more employment
opportunities in the future.
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