Brown-Forman Corporation Marketing Study :: essays research papers

Brown-Forman Corporation Marketing Study BackgroundBrown-Forman Corporation is oneness of the largest American companies in the wind and spirits industry, Fetzer Vineyards is their largest winemaker. Revenue and gross profit for the beverage segment of Brown-Forman were up 11% and 14%, respectively, in fiscal 2004. However, the evolution was driven by the premium spirits brands, and the gross profit from the companys wine brands declined due to a drop in volume for both Fetzer and Bolla wines. There are many symptoms for why this decline has occurred. Health consciousness is a rising trend among Americans of all ages and the latest crazes are the low-carbohydrate diets. Recently, Fetzer has introduced into the market ii new low-carbohydrate wines, a chardonnay and a merlot. Their premium spirits brands have not been affected by the new diets because bourbon, whiskey, rum, gin, and vodka all contain no carbohydrates. However, near mixers used to accompany these spirits usually co ntain a significant amount of carbohydrates. Introducing these new wines could offer a new choice, but not a substitute, for many dieters and at the same time give Brown-Forman the lead in this new market.In 2003, Brown-Forman announced that they were going to begin using organically freehanded 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 self-colored Foods Market, demand for organic wine is small, but a move by a major player like Fetzer could change that. Women already perceive wine as a healthier alternative to other alcoholic beverages. This health conscious image will allow Brown-Forman to direct their marketing efforts in reception to this cultural trend and penetrate the market by providing information through advertising about their new wine ingredients. Another symptom of the decrease in wine sales is due to the lack of awareness a mong consumers about the types of wine available. In a restaurant setting consumers often shy away from edict wine because they may feel uneducated about the types of wine offered or uncertain about which wine would best compliment their entre. Restaurants have attempted to insure this problem by educating their servers and providing progressive wine lists, but if a person doesnt understand the difference between a blush 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.