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Bronco Wine Company case study: making wine accessible by succeeding in the discount segment

Published by: Datamonitor

Published: Apr. 2, 2008 - 8 Pages


Table of Contents


DATAMONITOR 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 company's 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 US$2 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
Datamonitor consulting
Disclaimer
List of Figures
Figure 1: The Charles Shaw brand is marketed as an everyday table wine


Abstract

INTRODUCTION

This report on Bronco Wine forms part of Datamonitor's 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 US$2 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.


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