Research and Markets: Bronco Wine Company Case Study: Making Wine Accessible by Succeeding in the Discount Segment Focuses on How the Low Priced Wine Company that has Achieved Substantial Success with its $2US Wine
M2 PressWIRE, May 16, 2008 Friday
RDATE:16052008
Research and Markets (http://www.researchandmarkets.com/reports/c92005) has announced the addition of "Bronco Wine Company Case Study: Making Wine Accessible by Succeeding in the Discount Segment" to their offering
Introduction
This report on Bronco Wine forms part of the Datamonitor case studies series, which explores business practices across a variety of disciplines and business sectors. It focuses on how the low priced wine company that has achieved substantial success with its $2US wine, Charles Shaw, dubbed "Two Buck Chuck", helping bring new consumers to the wine sector.
Scope
Highlights
Reasons to Purchase
Gain insight into the methods used by important industry players to give them a competitive edge Identify specific areas for operational improvements Capitalize on the knowledge of experienced companies when entering a new niche or market.
CONTENTS:
OUR VIEW
CATALYST
SUMMARY
ANALYSIS
- Bronco Wine is the fourth largest US wine company, benefiting from efficient bulk wine operations
- Bronco sells over 20m cases a year from its 35,000 acre site
- The companys "industrial" production methods facilitate high profitability despite low margins
- But its California rivals accuse the company of devaluing the wine making region
- Bronco was fined in the past for passing off cheaper varieties as more expensive wine and lost a lawsuit preventing it from selling Napa branded wine
- Bronco defends its philosophy by insisting that it is fulfilling mass market consumer needs by providing everyday wine
- Bronco has achieved substantial success with its highly accessible "Two Buck Chuck" brand
- The company emphasizes its branding rather than the wine location, bucking wine conventions
- Despite this, Bronco does not advertise and has no website, relying instead on word of mouth recommendations to galvanize sales
- Bronco wine is sold in premium looking bottles to help provide a credible on-shelf presence
- Charles Shaw brand is dubbed "Two Buck Chuck" due to its $2US price tag
- This is because even for value purchases consumer expectations have increased
- The brand does well in wine competitions, helping boost its profile
APPENDIX
- Case study series
- Methodology
- Secondary sources
- Further reading
- Ask the analyst
- Our consulting
- Disclaimer
List of Figures
Figure 1: The Charles Shaw brand is marketed as an everyday table wine
For more information visit http://www.researchandmarkets.com/reports/c92005 Source: Datamonitor
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