ivey

1626 words 7 pages
Yellow Tail

Yellow Tail is the leading imported wine in the US. Introduced in June of 2001 by Australian owned Casella Wines, Yellow Tail sold more than 8.5 million cases in 2008, which is more wine than the next three Australian brands combined. This success has attracted substantial competition. The issue for Casella is how to sustain Yellow Tail’s growth in the face of emerging competition on a limited ad budget.
Yellow Tail competes in the $11 billion dollar US wine industry, which is characterized by a high level of fragmentation and stiff competition. There are over 6,500 wine brands. E & J Gallo brands command an 18% share of the market and Constellation Wine brands have 13% share. No other brand has more than a 7%
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Advertising also has been placed at bus stops and presented Yellow Tail Theater on the Independent Film Channel. A typical print ad is shown in Exhibit 3.

Exhibit 1: Demographics
Age

All
21-24
25-34
35-44
45-54
55-64
65+

%
%
%
%
%
%
%

Any dinner/table wine
37
27
32
38
39
40
41
Domestic dinner/table wine
35
23
30
35
37
38
39
Imported dinner/table wine
16
12
16
18
17
17
14
Income All
Under $25K
$25K-49.9K
$50K-74.9K
$75K+

%
%
%
%
%

Any dinner/table wine
37
26
31
40
46
Domestic dinner/table wine
35
23
29
38
44
Imported dinner/table wine
16
11
12
15
23

Education All
HS or less
Some college
College/Post-college

%
%
%
%

Any dinner/table wine
37
26
41
53
Domestic dinner/table wine
35
24
38
51
Imported dinner/table wine
16
10
16
27
Geography

SOURCE: Mintel/ Simmons NCS. Base: 27,177 adults aged 21+

1. Exhibit 2: Psychographics
Enthusiasts are passionate about the entire wine experience – from researching what to buy to sharing it with friends and family. These consumers are college educated, with an average age of 46, and are mainly female. They have an average annual household income of $76K. This group represents only 12% of wine drinkers, but contributes 29% of total profits. They consume 5.1 glasses of wine per week and are

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