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yellowtail.pptx
[ yellow tail ]
Company Roots
Made by Casella Wines in Yenda, Australia
Founded in 1969 by Filippo and Maria Casella
First bottle of YellowTail was made in 2001
Goal to create a wine that everyone could enjoy
https://www.yellowtailwine.com/us/our-story/
The Budget Wine Industry
Fairly New Blue Ocean Industry
Created by Yellow Tail
Industry focus is on providing an affordable wine for all experience levels of wine drinkers
Wine Purchasing was seen as an intimidating experience
Offers an affordable bottle of wine that tastes great
https://static1.squarespace.com/static/552915b8e4b0b1018b295cdb/t/58a5dea5d482e90918c2ba08/1487265455022/KEY_VIS.jpg
Industry Structure
Threat of New Entrants - Low
Large Capital start up cost
Suppliers - Low
Bottling Process, Corks, Grapes
Most companies do this themselves
Substitutes - Medium
Substitutes include Beer and Liquor
Cost is similar, Delivery system is different
Competitive Rivalry - High
Low Budget wine industry is dominated by roughly 10 brands
Buyers - High
Low Switching costs within the industry
https://s3-media2.fl.yelpcdn.com/bphoto/PXseAfR_7I6efw5kI41Rcg/o.jpg
Profitability Analysis
Barriers to entry are high
Market has developed into a red ocean
Marketing Strategies and Product Innovation are key
Market is profitable for few industries that are currently in the industry
https://www.buzzfeed.com/remeepatel/situations-that-are-just-way-way-too-real-about-life?utm_term=.mdP3pMAPl#.keLnDO4qr
Environmental Analysis
Economic Forces
Wine consumers becoming more cost conscious
Technological
Budget wine is often chemically created with new cheaper substitutes
Demographic Changes
Focus changed from Baby Boomers to Millennials
Millennials do not have as much power like baby boomers did
Natural Resources Available
Increased cost of vineyards and land
Rose Wine Trend is positive
Canned Wine Trend signifies move towards budget wines
Competitive Analysis
Key Competitors
Barefoot Wine
Strengths: Market Leader
Weakness: Ranked near bottom in quality, Low Customer Retention
Hardy’s
Strengths: Dominant in England and UK, Quality
Weakness: More Expensive wine, low market share in U.S.
Sutter Home
Strengths: Many Distribution channels, Power over suppliers and buyers
Weakness: Behind on current marketing trends
Analysis of Brand’s Pursuit for Competitive Advantage
YellowTail Primary Strategies: Broad cost leadership strategy and Differentiation
YellowTail does a lot of advertising
Only wine to have a superbowl commercial
Being a cost leader offers some protection
YellowTail was the first ones to implement a low-cost/budget wine
Porter’s Generic Strategy
When the industry first started Yellow Tail went with a differentiation strategy
Differentiation was not sustainable
Moved to Cost Leadership as industry has grown
Price Sensitive Consumers
Good basic product
Substantial cost gap
Cost advantage is sustainable overtime
Brian
Porter’s Generic Strategy: Protection from 5 forces
Threat of entry
Access to Distribution Channels
Economies of Scale
Locations
Competitive Rivalry
Can only push price down to the next most efficient competitor
Brian
SWOT
| Strengths Barriers of Market Entry Skilled Workforce High Growth Rates | Weaknesses International Market dependence High investments in research and development Low profit margins per unit |
| Opportunities New Markets Global Markets | Threats Venture capitalist style Rising costs of labor Increased competition |
Brian
Customer Analysis
Segment Dimensions in the industry or category
Geographic: Very broad, wine is a popular choice of consumers from all locations
Demographic: Primarily Millennials (21-34), slightly more emphasis on females
Psychographic: People who are newer to drinking wine, value experiences,
Behavioral: People who drink in social settings, and price conscious
Brian
Targeting Strategy
Multi-Segmented
Goal to be an accessible and approachable wine for everybody
Create a cheap, fun, easy going wine
Appeals to millennials who drink socially with friends
Baby Boomers and Generation X still make up 40% of the market for wines under $15
The easy going attitude of YellowTail allows them to reach various demographics
Brian
Market Positioning
Budget wine that is fun and adventurous
Appeals to non-traditional wine drinkers
Aggressive blue ocean strategy
Reduce wine complexity, wine range, and vineyard prestige
Create a wine centered around easy selection and drinking
Raise retail store involvement and low costs
Eliminated enological distinctions, aging qualities, and above the line marketing
Brian
Market Positioning
Points of Parity
Price range $5 - $9
Simple/less complex taste
Wide range of flavors and styles available
Unconventional packaging (boxed wine, single serving, and bottle styles)
Brian
Market Positioning
Points of Difference
Fun Advertising
Vibrant colored bottles
Simplistic Information on Bottle
Brian
Market Position
Brian
Customer Motivation
This group is comprised of various Truman students.
Their ages all represented consumers who could be considered new to drinking, with none being over the age of 22.
The group was made up of 5 females and 4 males.
Participants had different majors, interests, and were part of different organizations
Xinyu
Customer Motivation
What Brands (excluding YellowTail) do they recall unaided?
Barefoot, Sutter Home, and Silver Oak
Do they buy the same brand each time?
100% answered yes
What factors are important in selecting a brand
Price
Alcohol Content
Flavor
Branding
Amount per bottle/bag
Xinyu
Product Strategy
Depth
Offers wide assortment of wines flavors (Red, White, Sparkling and more)
Breadth
Currently only sell bottled wine and select box wines
Mix
High depth, very little breadth
Xinyu
Brand Audit
Corporate Brand Elements
Same font
Same
Brand Name
[Yellow Tail] logo is easy to recognize
Design
Simplistic Design without Jargon
Colorful Bottles stand out on shelves
Logo/Symbol
Recognized Internationally
Xinyu
Mental Map (MIKE)
Brand Mantra
Emotional: liberating
As soon as you take a sip of YT, you are free from responsibility
Descriptive: simple
No frizzle, no frazzle. Just some wine and some good times.
Brand: adventurous
You drink YT? Hop on board to adventure town.
Customer-based Pyramid
Left side:
Salience
Category identification: wine retailer
Needs satisfied: alcoholic → yes
Breadth and depth of awareness
Performance
Smooth, easy drinkability, good flavor
Competitive toxicity
Simple and unique branding with kangaroo
Low price
Judgement
Mid-low quality
Credible brand
Gets the job done
Not a superior brand in terms of taste, but it is in terms of price
Resonance
Loyalty: no
Attachment: no
Community: no
Engagement: no
Right side:
Salience
Imagery
Millenials, lower middle class
Price conscious
Accessible
Australian brand, been around for a while
Not snooty wine
Kangaroo
Feeling
Warmth
Fun
Excitement: you are adventurous
Non-judgemental
Confident
Self-respect
Resonance
Product Strategy Strengths and Weaknesses
Pricing Strategy
Promotion Strategy
Distribution Strategy
What are our current strategies?
Strengths and Weaknesses
Product Justification
What unmet needs will we be satisfying?
HOw does this target market differ from our original target?
Justify the potential of this market
What competitive strategy (Porters generic and warfare) will we be pursuing in his market and how will our product achieve a competitive advantage?
Our New Product Strategy
Canned Wine
Ridiculously expensive and a brand new wave of innovation
Need to showcase why canned wine is good for the market and why it is good for YellowTail
Scott
[yellow tail] canned wine 12 pack
Scott
Brand Elements
Scott
Price Strategy (product)
Barefoot wine introduced their canned wine in summer of 2016
Amazon 24 pack: $75
Walmart 4 pack: $6.98
Hyvee and Aldi carry their own brands
Aldi 4 pack: $7.99
Hyvee single can (12oz): $4.99
WHATEVER THE SURVEY SAYS PLACE HERE
scott
Distribution Strategy (product)
Walmart, grocers, liquor stores
“Yellow Tail’s… “brand block” in store that stands out from the classic white labels of their competitors...” - The Branding Journal
Amazon marketplace
Only one canned wine offered, Barefoot 24 pack
Important for strategic purposes as well
scott
No glass on the beach…
Pack the essentials.
[ yellow tail ]
scott
Recap
Blackout and shotgun wine
scott
Questions?
scott
