This Chilean company was created in 1992 by two brothers, Hermann and Eduardo Gras along with an associate, Cristian Hartwig. The main objective for its creation was to provide export-quality wines. Nowadays, MontGras is ranked 20th among the Chilean wine exporters. In addition, it grew to be one of the largest winery "boutiques" in Chile with a production of 234,000 cases (one case contains 12 bottles of 750ml which is equivalent to 2.34 gallons) in 2001. The Headquarters of the company is situated in Santiago, the capital of Chile; their vineyards are in the southern parts of Santiago, in the Colchagua Valley. They have two different Product Mixes: Varietal (MontGras Estate): priced from 7 to 8 dollars, offer high quality product for a lower price in 5 different tastes.
[...] During this case, we have compared the UK market, which was the best success of MontGras exportations, with the United States market where we want to introduce Chilean Wine. III. Pest analysis Political In the mid 1970's the military system of Augusto Pinochet pioneered trade liberalization in Latin America. Non-tariff barriers were eliminated and Chile's tariff structure was simplified to a single import tariff rate. Chile was negotiating with the United States and the European Union free trade agreement that it has been concluded by 2003. [...]
[...] - Density: Urban or Suburban. Demographic: - Age: >65. - Gender: male or female. - Family size: single, couple and more children - Income in USD/year: [30000; 50000], [50000; 100000] and over. - Occupation: Executives, managers, employees, proprietors, retired. - Religion: Catholic, Protestant, Jewish. Psychographic: - Social class: Middle class, upper middles, lower uppers, upper uppers. - Life style: Achievers, believers. - Life style personality: Compulsive, authoritarian. Behavioral: - Purchase occasion: Regular occasion or special occasion. - Benefits sought: Quality. [...]
[...] The “problematique”: how will MontGras raise their quality image despite the bad reputation of Chilean Wine on the International ladder? Which markets should it target? How can it integrate the US Market/ through which distributing channels? Should it follow the Margin or volume strategy? II. Executive Summary The World Market For centuries, the worldwide production and consumption of wine has been dominated by the Old Wine industry. This industry was centered in European Countries, such as France, Italy and Portugal. [...]
[...] Service? Price? Situational factors: (Size of order) Should we focus on large or small orders? Targeting Demographics: - Industry: Restaurants, Pubs and Wine shops. - Company size: Small and medium restaurants and pubs. - Location: Medium and large cities on the East coast to start and then spread the exports on the West coast. Operating variables: - User/Non-user status: Heavy and medium users. Purchasing approaches: - Purchasing function organizations: Companies with highly decentralized purchasing organizations. - Nature of existing relationships: Go after the most desirable companies. [...]
[...] In conclusion, the financial situation of MontGras is going to be better in the future. Opportunities Threats Market/Needs Competition The US is the 3rd largest wine The number of Chilean wineries consumption in 1999 exporting to the United States had The US is the 3rd largest wine increased from 25 to 65 in the importer by volume and the 2nd period, while the number of largest by value in 2000 national importers remained at International wine trade had grown about 15. [...]
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