(a) To what extent can MontGras control its own market position, as opposed to being dominated 7by the country-of-origin effect, and be perceived as a “Chilean Wine”?
Changing the overall image of its companies wines are added to its market positioning strategy. Even though the branding as a Chilean Wine is easily applied onto MontGras, there are many factors in its control which can make sure that the company dominates the market by having a bigger share as it wants to. MontGras though being smaller than some Chilean wineries, it has been able to stand out due to its interest in high quality wines. The company wants to establish itself as the ‘low price yet high quality’ provider of wines. This is directly related to the seeds, the soil and the production methods. The company was able to affirm that its resources are on par with other high class wineries in one way or the other. Fortunately, studies also show an increase in the number of consumers for the higher quality wines (Reserva) and a minor decline in the demand for the lesser quality (Varietal) wines. The marketing has to be different for every region. Most people with very little information about wines conveniently relate price with quality. Chilean wines thereby being priced lower than other brands were inevitably being considered not so superior in quality. Since that is not the case, MontGras is trying to change its current reputation. It wants to emphasise on its higher end wines such as the Reservas and the Ninquen to show that they don’t not lack in the quality aspect.
(b) What implications does this have for marketing strategy?
No matter how good the quality is, it cannot change or hide the fact that this is a Chilean company making ‘Chilean Wines’. Thus its strategy should be precise and perfect. With respect to the positioning that MontGras has right now, it should dissociate itself from