BUS 421-OL-ASSIGNMENT #5-JIMMY MORGAN - Jimmy Morgan,...

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Jimmy Morgan, Business Policy, BUS -421-OL (Dec 2010 thru Feb 2011) Case Study Assignment 5-Case 25- E. & J. Gallo Winery 1. How important is the dessert wine segment to the industry? to E. & J. Gallo Winery? How do these products fit with Gallo's stated position on the quality of its products? Do brands like Thunderbird and Night Train have any redeeming features as a product, even if they are in demand by a segment of the population? Dessert wine segment is very important to the wine Industry. Dessert wine accounts for approximately 10% of the total revenue that is generated by the wine industry. Dessert wines are low cost wines that are mainly consumed by low-income society, budget constrained teenagers, and college students. These wines are additionally very important to E. & J Gallo Winery, as dessert wine is one of the most profitable segments of wine industry. E. & J. Gallo Winery offers a selection of fortified wines, which contain a high content of alcohol and are available at comparatively low prices. Two of their renowned brands are Thunderbird and Night Train. These are the brands, which were banned in 1989 as they were categorized as fortified. However, the ban did not last and they were introduced back in the market within six months. The company tends not to list these forfeited brands on their homepage even though they play a major role in their profits margin. According to our text, the only redeeming feature is the taste of the product and its presentation. Its packaging and taste was its product features that attracted customers to buy it. However, according to Bumwine.com, the only redeeming feature that both of these products have is the ability to make those that consume it go from thinking rational to thinking irrational. Look at what Bumwine.com says below about both products. According to Bumwine.com: Night Train Express “Don't let the 0.5% less alcohol by volume fool you, the Night Train is all business when it pulls into the station. All aboard to nowhere - woo wooo! The night train runs only one route: sober to stupid with no roundtrip tickets available, and a strong liklihood of a train wreck along , in in Modesto, CA. Don't bother looking on their web page, because they dare not mention it there. As a clever disguise, the label says that it is made by "Night Train Limited." Some suspect that Night Train is really just Thunderbird with some Kool-Aid-like substance added to try to mask the Clorox flavor. Some of our researchers indicated that it gave them a NyQuil-like drowsiness, and perhaps this is why they put "night" in the name. The picture (above right) shows that the subject that drank Night Train is down for the count, while the Cisco guzzling subject is ready to rock. Guaranteed to tickle your innards” (p. 1). According to Bumwine.com:
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BUS 421-OL-ASSIGNMENT #5-JIMMY MORGAN - Jimmy Morgan,...

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