Robert Mondavi

Robert Mondavi Winery (RMV) reaches only 2% of the US market which makes up 13% of the global market and has limited exposure in European countries which make up 53% of global wine consumption. Until RMW added Woodbridge (a premium class wine), their marketing campaign relied on educating consumers at their wineries and limited advertising in wine publications.

Threats:

* The large beverage companies entering the market are a real threat, with low barriers to entry and extensive distribution networks, retail outlets and global experience.

* These companies have experience in beer, wine, soft-drinks and hard liquor distribution.

* RMW only controls 7% of the grapes used to produce their wine. This threatens supply if any large company decides to pay a higher price for California grapes. Vineyards are very susceptible to the weather, and infestation can destroy an entire vineyard.

* Consumers are looking for brand recognition and value which has only been achieved with the Woodbridge label and Mondavi name.

* As Woodbridge sales increase, competitors are moving into the market

Using our brand capital, we need to diversify globally with wines that have a strong brand and market potential in the European countries. We should form joint ventures with domestic and international vineyards to seize control over the grape supply. This reduces the threat of others purchasing the grapes and cutting off the supply chain. Having control over the vineyard will also help lower supply cost. Lastly each new division should have independent marketing strategies to support the goals of the division.