Industry Strategy Research on Montgras

Hung-Chang Huang


Case Questions: MontGras

1 . (a) To what extent can MontGras control its own market location, as opposed to staying dominated by the country-of-origin result, and be regarded as a " Chilean Wine”? MontGras, the export-focused vineyard that started in 1992, unlike many other Chilean wineries, actually owned a considerable control on its own industry position back in the 1990s and early 2000s. Although the total consumer belief towards Chilean wine goods indicated that they have to put more efforts to build a solid photo globally which their major advantage is definitely the low price, the situation might not always hurt MontGras' current market placement if in support of if the administration the link between decision to consider the quality technique, rather than quantity strategy, plus the fact that Chilean wine lacked a proper picture. By going after quality-oriented approach, MontGras is able to further develop its brand awareness resulting from the success of the ultra-premiums(Ninquen line) and the super-premiums(Reserva line), and also to eliminate the ineffective cost spent on the joint effort with Chilevid aimed at building a stronger image for the whole Chilean wine beverage industry. Therefore, the problem of country-of-origin effect was, actually not significant enough that hampered MontGras' marketing location as long as the company is understand fully what the suitable marketing strategy is definitely and adopt it with regard to distinct market ecologies of MontGras' export locations. (b) What implications does this have pertaining to marketing strategy? With the worldwide excessive generation of vintages, competitions of wines in most segments had been predicted even more intense, particularly in the basic section, which typically accounted for almost half of the market share of many countries, and 54% of MontGras' total item in 2001. This indicates that already saturated basic section, with the littlest gross profit margin for all your players in the segment,...



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