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Mount Winery Case Analysis

542 Words3 Pages

The product that will be exported from Canada to England is ice wine. The company that has opted for this procedure is Mount Winery. This company was founded in 1999 and the wine is produce locally within the Niagara Peninsula region. Over the years, Mount Winery has gained national acclaim for its high quality ice wine and is now seeking to expand into England. The target market of women is within the age group of 25-50 years old, educated and earn an average income of 19,000 pounds (25,000 USD) to 49,000 pounds (64,000 USD). It is concluded that Mount Winery’s target market are of women with busy lifestyles who enjoy alcoholic beverages. Mount Winery’s promotional strategies include a website, promotional video, sales promotions, advertising …show more content…

Mount Winery will be partnering up with E.J. Gallo Winery to work together to produce a greater effect than the sum of their individual effects. From the decentralized strategy, the advantages consist of a push strategy is which both the companies will be pushing and convincing restaurants and grocery stores will purchase our ice wine so it can be then sold to …show more content…

Another strategy that we will be using is importing. Importing is the act of bringing in a good or service from a foreign product. In this case, we are exporting ice wine in barrels to England from Niagara Peninsula region. In order to successfully export ice wine to the UK, Mount Winery will utilize the premium pricing strategy because it is commonly used for products that are unique and new to a market. Consequently, Mount Winery will be able to price itself higher than its competitors in the UK’s oligopolistic market as its wine is unique and luxuriously sweet. Therefore, Mount Winery will price their wine approximately around 40 British Pounds to achieve maximum profit, while taking into account the following factors such as Consumer Price Index (CPI), currency exchange rates, tariffs and other hidden costs. Licensing agreements is the next strategy and Mount Winery believes this a good strategy because it is not too demanding on company’s resources, it requires a low-commitment to international expansion, access markets that are closed to imports, and avoid taxes that might otherwise be levied on a product if

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