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Case Study: Robert Mondavi Corporation

In: Business and Management

Submitted By jandv
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1). BWE also engages in trade marketing targeted at distributors and retail channels. For instance, the retail and hospitality programs at the Beringer, Chateau St. Jean and Chateau Souverain wineries - which receive over 350,000 visitors a year - create brand awareness and build customer brand loyalty (Burns et al., 2001).Next, although RMC is not the price leader in the wine industry, nevertheless, the company benefits from the high prices set by its limited production of Opus One which is priced between $90 and $100 a bottle in more than 65 world markets.RMC proves to have some strong key competitive advantages which distinguish the company amongst other rivals. Firstly, Robert Mondavi, being a dynamic sales man in the early years, never spent money on advertising.
Instead he relied on trade shows, awards, salesmanship and showmanship. This is clearly described in the case study in which he spent entertaining influential people within the industry and invited the top wine writers to the RMC facility for free meals (Silverman & Castaldi 1999). In addition, he would conduct blind tasting of the RMC wines against reputable French and Italian wines so that the writers could taste for themselves. For over a decade, Mondavi traveled throughout the country and abroad as the company's chief salesperson. Consequently, the RMC wines were able to increase its recognition of and demand for the wines, Mondavi began slowly raising the prices until they were selling for as much as comparable French wines (Thompson & Strickland 2003).Secondly, RMC's strong brand name is associated with wine-growing excellence, award-winning products and marketing innovation. In this situation, RMC enjoys one of the most recognized brands by producing a limited quantity of super- to ultra premium wines using the most prestigious noble varietal grapes.
RMC wines strictly adhere to using only…...

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