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Inniskillin Wine Case Study

1147 words - 5 pages

Taking Inniskillin Icewine Global with Constellation
Prepared by: Jeet Jani
Royal Roads University

IHMN 305

October 23, 2011
Taking Inniskillin Icewine Global with Constellation
Introduction
The global Icewine market has grown over the decade and the Canadian icewine products have built a great reputation world around. In this case study, I’m considering the position of expanding the Inniskillin Icewine product to new markets for the company to maximize their premium margins. Also, discussed is the importance of establishing Canada’s Icewine designations and stricter production standards. Discussed in the paper are the high-end icewine market and their premium margins, expansion ...view middle of the document...

But as the popularity of this product increased, it was now subject to competition and counterfeit products especially which were selling at far lesser prices and affecting the consumers and their understanding of a quality icewine product.
Why Expand With Constellation
The consumer set for Inniskillin’s product was internationally located in many countries including Japan, Australia, Germany, USA and New Zealand amongst other. But most of these markets are served by DFS locations, which restrict the access to the wider audience in these areas. Taking this into consideration, the company should look at growth opportunities and this would be very possible with the use of Constellation Brand’s resources of worldwide marketing and distribution. In 2003, Constellations Brands Inc. acquired BRL Hardy making them the world’s largest winemaker and giving a great hold over the growing market of Asia Pacific (Croft, 2003), this would be a great asset for Inniskillin towards making their premium icewine product available to more customers and gain larger revenues. Besides the Asia Pacific region, Constellation Brands also has good reach in the UK market with their acquisition of Matthew Clark Brand which brought in various beverage operations under their portfolio (Mason, 2001). These resources from Constellation Brand will also be a key to set the Inniskillin brand apart from its competitors and also increase brand awareness to avoid customers from buying imitation goods.
Possible Drawbacks
The imitation products and competition could also have an increasing effect on the positioning to the Inniskillin product internationally if marketed and distributed through the Constellation Brands. Currently, the icewine by Inniskillin is an exclusive product, available to limited customers who allow them to maintain the high margins and prices. When the product is available more readily and in various markets, the perceived worth of that product can go down significantly, with the consumers loosing the speciality experience. Inniskillin would have to be cautious of not allowing the competition and consumers pressure them to lower the prices of their premium icewine products. To offset this, the marketing campaigns of hosting exclusive tastings, sponsoring the World Pastry Team Championship and partnerships with high-end restaurants should be continued to maintain the brand image of the premium icewine produced by Inniskillin.
Quality Control with VQA
With the increased competition and variations in the international Canadian icewine market, it is imperative that the organizations in partnership with Vitners Quality Alliance...

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