Brown-Forman Corporation Marketing Study :: essays research papers

Brown-Forman Corporation Marketing require BackgroundBrown-Forman Corporation is one of the largest American companies in the wind and hard liquor industry, Fetzer Vineyards is their largest drinkmaker. Revenue and gross profit for the beverage segment of Brown-Forman were up 11% and 14%, respectively, in fiscal 2004. However, the growth was driven by the pension spirits brands, and the gross profit from the companys wine brands declined out-of-pocket to a drop in volume for both Fetzer and Bolla wines. There ar many symptoms for why this decline has occurred. Health consciousness is a raise tr destroy among Americans of all ages and the latest crazes are the low-carbohydrate diets. Recently, Fetzer has introduced into the market two virgin low-carbohydrate wines, a chardonnay and a merlot. Their premium spirits brands have non been affected by the new diets because bourbon, whiskey, rum, gin, and vodka all contain no carbohydrates. However, well-nigh mixers apply to accom pany these spirits usually contain a portentous amount of carbohydrates. Introducing these new wines could offer a new choice, nevertheless non a substitute, for many dieters and at the same time give Brown-Forman the malarky in this new market.In 2003, Brown-Forman announced that they were going to begin development organically grown grapes to make their wine. Fetzer Vineyards plans to have nearly all the grapes used in its four major labels grown organically by the end of 2010. According to Marc Jonna, buyer for the Whole Foods Market, demand for organic wine is small, but a move by a major player alike Fetzer could change that. Women already perceive wine as a healthier alternative to other alcoholic beverages. This health conscious image allow allow Brown-Forman to direct their marketing efforts in response to this cultural elan and penetrate the market by providing information through advertising closely their new wine ingredients. Another symptom of the decrease in w ine sales is due to the lack of awareness among consumers about the types of wine available. In a restaurant setting consumers often shy away from order wine because they may feel uneducated about the types of wine offered or uncertain about which wine would best compliment their entre. Restaurants have move to address this problem by educating their servers and providing progressive wine lists, but if a person doesnt understand the difference between a gush wine and a full-bodied wine or if they feel it is a hassle to ask questions the end result is the same, no wine has been sold.