A 12 page paper assessing the product life cycle of Mondavi wines and recommending strategies for organic (i.e., non-acquisition) growth in the future. Based on the information provided in the Harvard Case 9-302-102; a SWOT analysis; assessment of product life cycle; and analysis within the framework of Porter’s Five Forces, Mondavi needs to strengthen its position in Europe, and it needs to increase its awareness of the changes occurring in wine consumption in Asia where there is greater threat from Australian products. Enhancing its effectiveness in the US market that accounts for 92 percent of current sales can provide the means for taking a more global view of the future of the company. Bibliography lists 3 sources.
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the global wine industry and within the domestic market as well. Internationally, "Sales of commercial premium bottled wine (which retail for $5 to $8) are growing at dramatic rates
compared with super premium wines (those costing more than $8), while sales of previously popular jug wines (less than $5) have plummeted" (Anderson, 2003; p. 47). This constitutes favorable
change for producers of premium wines such as Robert Mondavi, but only if these producers make the most effective use of the changes currently underway. The purpose here is
to assess Robert Mondavis current position in its industry and to make recommendations for achieving organic (i.e., non-acquisition) growth. Synopsis of Recommendations Strategy
for achieving organic growth arises from analysis of Mondavis strengths combined with assessment of where each Mondavi product exists within its product life cycle. Based on these assessments, Mondavi
should create awareness and trial of the rising Arrowwood brand; maximize market share of the Mondavi products currently in the growth phase of the product life cycle; and maximize profit
and defend market share of those products that already have reached maturity. Additionally, there are other steps that Mondavi can take to promote
specific brands while also reinforcing the Mondavi name with all types of retailers and their customers. The primary focus is on those retailers providing both product and facilities for
its consumption onsite. These recommended steps include altering advertising to match the changes in distribution structure; offering price discounts of Arrowwood and growth-phase products to on-premise retailers; offering training
programs for on-premise wait staff personnel; and increasing point-of-purchase advertising. Finally, Mondavi also should increase promotion at off-premise retail outlets. Alter Advertising to Match Distribution
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