Yellow Tail was developed in 2000 and became the top imported wine in the US by 2003. It is produced by Casella Wines, an Australian company. Casella Wines uses a blue ocean strategy to make their competition irrelevant in foreign markets like India. They aim to create an uncontested market by reducing competitive factors and creating new value for customers.
Measures of Central Tendency: Mean, Median and Mode
Casella wines
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4. Yellow Tail was developed around the year 2000, originally marketed to export
countries and became the number one imported wine to the USA by 2003.
• Yellow Tail is a brand of wine
produced by Casella Wines Pvt Ltd.
Casella wines is based in Australia.
The largest volume of wines imported into India are from Australia, selling an
estimated 75,000 cases (30 per cent of the total) of all imported wine sales in India
in 2010-11, having narrowly overtaken French wines.
5. Do you know…
US has third largest aggregated consumption of wine in the world.
Industry: $ 20 billion
Competitors: France, Italy, Spain, Chile, Australia, Argentina.
Market hold: Top 8 companies produce more than 75% of the wine in US
and other 1600 wineries produce the remaining 25%
Casella Wines from Australia created a wine whose strategic profile
broke from the competition.
Within three month Casella Wines’ average sales were tracking at
$ 4.5 million and this was surprising.
6. 7 Principle factors for a wine industry
Price of
bottle
Packaging
and
labelling
Consumer
awareness
Aging
quality
Prestige of
vineyard
Complexity
of wine
Diverse
range of
wine
Factors affecting
7. WHAT IS BLUE OCEAN
STRATEGY?
• CASELLA WINES must follow Blue
Ocean Strategy to make the competition
irrelevent in the Indian Market
For a successful brand creation….
IN INDIA
9. Red Ocean represent all the industries in
existence today. This is known as Market
Space
Industry boundaries are defined and accepted
Competitive rules of the game are known
Companies tries to outperform their rivals to
grab a greater share of existing demand
As the market space gets crowded, prospects
for profits and growth are reduced
Product become commodities, and cut-throat
competition turns the red ocean bloody.
Blue Ocean denote all the industries not
in existence today. This is the
Unknown Market Space.
Blue Oceans are defined by untapped
market space, demand creation, and the
opportunity for highly profitable
growth
Competition is irrelevant
Rules of game are waiting to be set
Blue Ocean V/s Red Ocean
10. Study Research claimed that…
0% 20% 40% 60% 80% 100%
Business Launch
Revenue impact
Profit Impact
11. Approach to VALUE INNOVATION
Created when a company lowers costs while increasing the companies
value proposition to its buyers
Value innovation is achieved by:
Reducing factors the industry competes on
Increasing buyer value by creating elements the industry has not yet
offered
12. CASELLA WINES
Enological Terminology, aging quality, above
the line –marketing
Wine complexity, Wine Range, Vineyard
Prestige
Price Versus Budget Vines
Easy drinking, Ease of Selection, fun and
adventure
ACTION
ELIMINATE
REDUCE
RAISE
CREATE
What actions must it take for
Indian Market?
13. Speculations
To work hard on:
Acceptability factor
Political Factors
External FactorsSupport Factor:
Trend for wine
For non-alcholic drinkers
Uncontested Market
They will be good at:
Climatographic
Conditions
Value Innovation
Wine Legacy