The Body Marketing Innovation Assignment
The Body Marketing Innovation Assignment
The Body Marketing Innovation Assignment
1.0 INTRODUCTION
1.1 Influence
What influence the writer to this product was the natural curiosity and thirst to understand
the wine industry. To further examine the reasoning and factors for the appreciation of
the product throughout Europe and USA.
If its was an exact science, to using the branding of the product in a virgin market or
Drones market in Trinidad and Tobago (TROTT, 2005) then what is wriiten should be
applied ?
1.2 A Brief History of Wine:
The History of wine would have been discovered by chance, probably around 5000 BC.
In Egypt wall paintings showing the use of wine as well as actual packaging of wine (See
Appendix 1). Biblical reference of wine is use to throughout from Genesis to Jesus Christ
(changing water into wine). It was argue that someone drank the fermented juice of wild
grapes that was collected and store.
It was not until 1890s, when Louis Pasteurs research in microbiology that linked sugars
conversion to alcohol (fermentation) to yeast (simple living organisms) was when wine
was seen as chemistry engineering process. (MACNEIL, 2001).
Throughout all culture and civilization producing and drinking wine is seen as a
celebration. It is only through culinary, due to the increase television programs like, Top
1
Chef, Iron Chef Etc, more and more individual use wine not only for consumption, but
for cooking as well.
However with the increase awareness of wine, there is the negative factor like alcoholise
which is indirectly association with bad behaviour.
1.3 Background of the Company:
The Gallo Winery was founded by two Brothers Ernest and Julio Gallo in 1933,
September 22nd at streets 11th and D Modesto, with a start-up less than $6,000 capital
which the majority was from Ernest mother-in-law. They were able 177,847 gallons of
wine in the first year.
Diagram 1:3 First Building of Gallo Winery
In 1934, the Gallos Brothers were able to increase their production by 40.4%.Thw
acquired of the Valley Agricultural Company, now called Livingston Ranch in 1942 was
2
a milestone for the Gallos brothers. Another milestone was in the year 1972 was the
appearing on the cover of Time for the article titled American Wine Come of Age
prove to be benefitting, as this was the first stage to marketing their brand to the
population.
By 1993, E & J Gallo was the countrys largest winery, with a 25% share of the
American Wine Market.
1.3.1 Operations of the Company
The GALLO Winery is a private company hence the company financials is not public
knowledge.
However the vision and values of the company has not change over time, to place a
premium on the relationships with the distributors, customers and their employees.
The Gallo Winery boast, to product both low-end (Thunderbird and Night Train Express)
and high-end (Chardonnay, Cabernet Sauvignon) fortified wines, which enable to target
both the differentiated (segmental and concentrated (niche marketing) (TROTT, 2005, pg
358).
important strategy for hence the reasoning wine appreciation in Trinidad will be in the
upper class (Western hemisphere of Trinidad ).
(which shown in the diagram below). Wine Industry in the market Trinidad and Tobago
around Christmas can be considering an impulse convenience or convenience specialty
buying without prior thought, with special purchase effort (PHILIP KOTLER AND
GARY ARMSTRONG, 2006). The wine product do not serves a need, more a want as it
do not really improve the life of the customer, this can be consist as consumer
product (PHILIP KOTLER AND GARY ARMSTRONG, 2006 pg 235)
Graph 2.1 Extracted of the Segment of Actual Product:
Actual Product
Brand
Gallo
Features
Core Customer Value
Quality
Design
Level 1
Packaging
Level 1
Soucre Extracted from Innovation Management and New Product Development 2005
byPaul Trott
In looking at Gallo Winery, the marketing strategic places individual product decision to
their product line. Whereas , product quality as high quality wine in the American , give
the suggestion that , taste , colour , and scent will define the product (ROBINSON, 2008)
. Furthermore, this creates value to customer and satisfaction towards the product. As
Siemens argues the product quality is when the customers come back, however this can
be misleading is it relies on other person opinion.
Graph: 2.2 Individual product and service decision: Gallo Product
INDIVIDUAL
PRODUCTGALLOS
ATTRBUTIES
BRANDING
PACKAGING
LABELLING
PRODUCT
SUPPORT
SERVICES
Source Extracted from Principles of Marketing by Philip Kolter and Gary Armstrong
Gallo Family
Vineyard Estate
High
Alamos
Product
Price
Low
Barefoot Cellars
Overall cost
leadership
Generic Strategy
Differentiation
Extracted Source Adopted Innovation Management and New Product Development by Paul Trott from using information from
appendix 3
In assessing at Gallos products of wines, what comes to mind is the possible value
proposition (PHILIP KOTLER AND GARY ARMSTRONG, 2006 pg 221) , whereas the
product Andre is considered the best selling brand of sparkling wine , due to the cost of
sale ($4 to $5 USD per bottle) , the same for less
competitors viewpoint , while the other products can fall into the catogeries of more or
more- preium , less for much less.
The benefits and value of the product is closely inter-related to its customers base, as
customers can drive the value of the product to its brands view. According to Harvard
Business Review, Value equity is the objectivity considered quality, price and convenience of
the offering. Brand equity is the customers subjective assessment of a branded offerings
The different is the value that the wine accumulated over the years. Hence some
customers tend to buy wine as investment (for resale) they are known as Collectors.
Before 350 BC
350 BC-
1800s to mid
century
1965
!980s
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new product or developing an invocated process for an existing or new product. However
innovation can be risky as well as, especially if the market is not ready for the product.
Which cause this so called new product to become a question mark or a dog (ANSOFF,
1988). Innovation involves the conversion of new knowledge into new product, processor
service and the putting of this new product, process or service into use, either via the marketplace
or by the other processes of delivery- GERRY JOHNSON ET AL, EXPLORING
CORPORATE STRATEGY, 8TH EDITION. The wine industry has evolves in to radical
innovation (TROTT, 2005) the way it manufacture wine. Firstly by the introduction of
living organisms (manufacture), then by its taste (sweet wine vs. medium /dry wine, flat
vs. Sparkling wine). Secondly by the packing of the product as it changes over time, to
meet the demands of the market, the labelling and trademark of the product to also
change over time to suit the marketing strategic that the company uses.
3.1 Gallos Innovation
There are many types of innovation that a product may fall into. In recent times, the wine
product, innovation is (a) product innovation Improve the existing product and (b)
process innovation Developing a new manufacture process (TROTT, 2005). In looking
at the pictures below the pressing machine, which used to crush the grapes have undergo
process innovation.
The demands of customers push product innovation to create new product (especially in
taste). Gallo Winery uses the internet, to advertise new product that are available in the
market. Gallo ask their customers for suggestions to improve their product.
Technology in process innovation is cause by the push or pull market (TROTT, 2005),
where the traditional methods of making wine becoming limited. Gallos winery, they
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look at the existing marketing create new ways to increase their production, even its
means outsource the production of wine to focus on branding and marketing. The process
innovation involved several strategic implications, in which Gallo Winery was able
successfully to achieve.
Diagram 2.3 Wine Presses
DOMINANT DESIGN
ESTABLISHED
PRODUCT
INOVATION
PROCESS
INNOVATION
INNOVATION
RATE
TIME
Source Extracted: Adapted from W.J.Abernathy and J.M Utterback, A dynamic model of
process and product innovation, Omega, vol 3, no 6 (1975).
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The overall of the innovation product and process involves the market input (the needs
and wants of the customers as well as the suppliers).
Diagram 2.3.1: Innovation Process
Source Extracted: Innovation Management and New Product Development by Paul Trott pg 10
13
In looking at all the wine bottles the brand labeling (brand name ) position in front, like a
stamp of approval. The Gallo Winery Brand name had not change over the time.
,however,the development of a brand (brand development) had envolue to represent the
current time. Brand Development can extend to new brands forming or acquisition of
other brands. An example of this Gallo Winery purchasing Barefoot Cellars in 2005.
In looking at brand appeal several aspects must be exaimed for Gallo Winery, that is
Quality, Status, Cost/ benefit, Global presence,social corporate responsibility and strong
ads with strong personalities.
Below is an illustration of this brand labelling change over time.
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1943
1946
1975
1982
2008
2012
15
A trademark is a register brand which is associate with the company (TROTT, 2005) The
Trade Marks Act (1994, section 1(1)) defines a trademark as being any sign capable of being
represented graphically which is capable of distinguishing goods or services of one undertaking
from those of other undertakings.
The trademark for the GALLO winery is the name itself and its logon of the rooster.
Diagram 4.0 Gallos Trademark
Symbol
Brand Name
In 1986, the GALLO brothers sued their younger brother Joseph, for using the name
GALLO for a cheese branded. Joseph claiming that the name belongs to their father, and
he has the right to use the name as a son also. Unfortunately, Joseph lost the case and was
force to change the name of his business to Joseph Farms.
In 1990s, GALLO winery sued a Spanish pasta company for using their name and their
symbol.
Diagram 4.1 Gallos Pasta and Gallo Winery
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GALLO use all its resources to prohibit future use of the brand name from other
companies. Although an agreement was made (GALLO Pasta was not allow to sell their
pasta in USA). In 1998, April GALLO winery filed a cease-and-desist order against
GALLO Pasta as they broken the agreement.
An example of Gallo Trademark is
The following trademarks are the property of E. & J. Gallo Winery:
Accents Vineyards, Alcott Ridge Winery, Anapamu, Andre, Andre Champagne, Ballatore, Bartles &
Jaymes, Bella Sera, Bella Sera Collezioni, Black Swan, Boones Farm, Burlwood, Burlwood Aldi USA,
Burlwood Cellars, Carlo Rossi, Copperidge Vineyards, Copperidge by E & J Gallo, E&J Cask and Cream,
E&J Brandy, E&J VS Brandy, E&J VSOP Brandy, Ecco Domani, EJG Twin Valley Vineyards, Ernest &
Julio Gallo, Fairbanks, Frei Brothers Reserve, Gallo, Gallo Vermouth, Gallo of Sonoma, Gallo of Sonoma
County, Gallo of Sonoma Estate, Gallo of Sonoma Family Selection, Gallo of Sonoma Single Vineyards,
Gossamer Bay, Hornsbys, Hornsbys Pub Draft Cider, Indigo Hills, Indigo Hills Champagne, Livingston,
Livingston Cellars, Louis M. Martini, Louis Martini Cab Centric, Louis Martini Cab Centric Select,
MacMurray Ranch, Marcelina, Maso Canali, Mirassou, Mirassou Selection, Napa Valley Vineyards, Night
Train, Peter Vella, Rancho Zabaco, Red Bicyclette, Redwood Creek, Redwood Creek Select, Rivercrest,
Sheffield Cellars, Thunderbird, Timberwood Vineyards, Totts, Totts Gold Medal Cuvee, Turning Leaf,
Turning Leaf Coastal Reserve, Turning Leaf Special Select, Walkabout, Wild Vines, William Wycliff Box,
William Wycliff Glass, William Wycliff Vineyards, Wycliff Sparkling, Wyalla Cove-Aldi
On September, 2010, the US federal re-registration the trademark for GALLO giving a
serial number of 85139959, in additional to wine, as GALLO winery is trade other
product like olive. GALLO trademark is filed in the category of Meats and Processed
Foods Products.
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6.0 Marketing
The Gallos brothers were among the pioneers of wine advertising on television
and launching many wines adverting campaigns. Marketing and sales provide the
means whereby consumers /users are made aware of the product or service and are able
to purchase it. (GERRY JOHNSON, KEVAN SCHOLES AND RICHARD
WHITTINGTON, 2008)
Many of GALLO advertisement slogans were create, insightful and relate to the
country they trying to market. If GALLO winery has to market in Trinidad and
Tobago the slogan will have to express our culture.
Examples of advertisement slogan are shown.
Ernest & Julio Gallo wines
Slogans: California. The new art of wine
E. &J. Gallo. Everything we know is everything you taste
Turning Leaf wine brand (E. &J. Gallo Winery)
Advertising slogan: Turning Leaf. Handcrafted for Perfect Moments
Black Swan wine brand, Australia
Ad slogan: Black Swan. Let Your Senses Take Flight
Bella Sera, Italian table wine
Ad slogan: Bella Sera. It's going to be a beautiful evening
Marketing can be considering the final stage after producing, innovating and
selling ones product. It educating the existing consumers and new consumers to
the product and receiving ideals to improve on existing product.
There many marketing models a company can use as a template to marketing their
product. The closest model that GALLO winery seems to follow is segmentation
(TROTT, 2005), targeting and position, as well as Porter Five Forces. Both
models are used interchangeable to maximum GALLO gains in the product.
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6.0 Conclusion
In conclusion the assignment was able to look at the product wine, and describe
effectively the type of product as it falls into contemporary, speciality consumer
product. A brief History of wine, from humble begins to being feature on Top Chef.
The product wine is not seen in the market of Trinidad and Tobago not popular
as
in
19
20
remembers played like an old movie film, its all in black and white.
My road to this was not easy, but life is not easy. I came from the traditional routine
Olevels, then A levels and after two months finishing my degree the rush to sign up and
start was a leap of faith rather than planned schedule. At the time, I did not have the
money to pay. I only have the Registration fee. I cannot ask my father because the battle
of cancer has won a year ago, and my mother did not have that kind of money, plus she
had my younger sister to take care of. However, I was determining to start this in for the
pence in for the pound and God will find a way was my phrase to encourage me.
My inner thoughts of a MBA, started to play like drum, questions started to rise in my
mind Will be able to keep up How will deal with your afraid of crowd and people "
What about your dyslexia " How will find the rest of money to pay for this program."
Then I could subdue these questions, find myself a little calmer.
When I have to find a group and work in a group.
I arrive late to class, which I was eager to learn thing new, especially in marketing. I
always had an interest in marketing. As a full time accountant and part time owner of a
small business, I asked myself what the real importance to marketing is and how this
study will help me in my business. The lecturer quickly inform the class it is wise to work
in groups, especially when u doing a MBA program. To be honest I never like
working in a group, you always find one member of the group do not like to pull their
weight. That person then becomes a parasite to the group, always having excuses. I
do miss the classical a dog ate my home work.
Besides, that one member, my afraid of crowds and reading aloud do prevent me. I put
aside my insecurity and said to myself, I need to find a group whose experiences will
help my overcome my doubtful thoughts and is focus to work, no matter what.
21
The advantage of being a quiet person is the ability to observe people in their natural
environment. My sociology learning came in handle. As I quietly observe behavioural
patterns, of leaders, followers, thinkers etc. I know selecting a group is not an exact
science, but I have to feel comfortable around this group of people for the next semester
or the rest of the duration.
I introduce to myself and to the group, the rest were history.
Now working in a group to me is not bad, to my surprise I find it very encouraging, as we
meet
and discuss the assignments. The principles of storming, norming, performing and
adjourning are used throughout each group meeting, with documentation of the previous
meeting.
My thoughts in relates to my assignment.
In looking at my assignment initially, I was confused, because there were so many
products to discuss. My marketing Lecturer made it look so easy. His PowerPoint slides
and videos made it relatable to me. Being in his class was exciting; it was like he
understands how my brain works, through pictures and graphics. One of my group
members remembered me, that Mr. Samuel say pick a product you are familiar with. I
think for five minutes and I remember my part time business is in the wine industry.
This assignment will be able to fulfil many objectives, firstly I can use all the theory I
learned to apply to the wine business. Secondly, I can do a needed research of the brand I
am selling and finally feel a little comfort in doing my assignment, as it relates to home.
The biggest challenges is structuring my assignment to meet the entire requirement, to
write 4000 words, obtaining data on my product and applying to the relevant theories. I
know, I just finish my degree and writing 4000 words should be easy, but it was not.
Especially the reflective writing, it is a long time I was asked to write reflective. Writing
the assignment around Christmas time was somewhat unfair. But, I set a plan how to
structure my time for my assignment, which was able to overcome most of my initial
challenges.
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WORDS COUNT-1000
23
Appendices
24
Viticulture
Fermentation
25
Pulp
Red Wine
Remove Skin
White Wine
26
Product
Brand Owner
Head
Office
Country
Gallo
E & J Gallo
Winery
USA
Logon
(brand
Management)
Concha Y Toro
Concha Y Toro
Chile
Yellow Tail
Casella Wine
Australia
Robert Mondavi
Constellation
USA
Hardys
Accolade Wine
Australia
Beringer
Treasury Wine
London
27
7
Sutter Home
Trinchero Family
Estate
CalifniaUSA
Ranking
Product
Brand Owner
Head
Office
Country
Jacabs
Creek
Pernod Ricard
France
Lindemans
Treasury Wine
London
Blossom Hill
Diageo
London
Logon
10
28
Brands
Countries
1
2
3
4
5
6
7
8
9
10
Hardys
Blossom Hill
Gallo
Jacobs Creek
Kumala
Stowells of Chelsea
Wolf Blass
Banrock Station
Lindemans
Echo Falls
Australia
USA
USA
Australia
South Africa
Australia
Australia
Australia
USA
Previous Year
Ranking
1
2
3
4
5
6
10
8
7
15
29
Description
Price/USD Marking
12.99
$$$
White Wine
13.99
Alamos
Andr
Apothic
Ballatore
Barefoot Cellars
Barefoot Bubbly
Bartles & Jaymes
Bella Sera
6.99
10.99
E&J is the original "premium wine
cooler" launched in 1985. The
brand continues to be the market
leader and has unmatched
consumer awareness, availability,
and association as flavorful
coolers. For sweet-seeking
flavored alcoholic beverage
consumers, Bartles & Jaymes is
the original cooler that satisfies
you with color and lively fruit
flavors.
Imported from Italy, Bella Sera
means "beautiful evening" and
offers wines that capture the
relaxed, authentic and welcoming
essence of Italy.
Black Swan
Bodega Elena de
Mendoza
Brancaia
$
$$$
$$
$$
$$$
$
7.99
$$
7.99
10.99
$$
$$
$$$$
30
Description
At Bridlewood, we like to take our
time. We hand select our grapes
from California's renowned
appellations, and we pour our
passion into winemaking.
Bridlewoods range of critically
acclaimed Chardonnay, Pinot Noir,
Cabernet Sauvignon, and Red
Blend wines tell the colorful story
of the Central Coast: the
adventurous Spirit, the relaxed
lifestyle, the fresh local foods, and
the incredible vineyards
Price/USD
19.99-39.99
Marking
$$$$
$$
$$$
Carlo Rossi
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Product
Description
Price/USD Marking
Clarendon Hills
Dancing Bull
DaVinci
Don Miguel Gascon
E. & J. VS Brandy
$$$$
15.99
First introduced in 1975, E&J
VS is America's most preferred
brandy. Popular because it
tastes great, mixes well and
offers consistent, awardwinning quality.
$$$
$$$
$$$
$$$
$$$
84.99
$$$
$$$$
$$$$
$$$
7.99
$$
$$$$
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Ratio
Name
Notes
0.1875
0.25
Piccolo
0.25
0.33
Chopine
0.375
0.5
Demi
0.378
0.51
Tenth
Jennie
0.5
0.67
0.62
0.75
0.83
1
Clavelin
Standard
0.757
1.01
Fifth
1
1.5
1.33
2
Litre
Magnum
2.25
Jeroboam (a.k.a.
Double
Magnum)
4.5
6
6
6
8
8
Rehoboam
Imperial
Methuselah
9
9
12
12
Mordechai
Salmanazar
12
16
15
18
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
One-fifth of a U.S.
gallon*
Used for cheaper-priced
wines.
Marie Jeanne
4
6
Yes
Also known as a 50 cl
bottle. Used for Tokaj,
Sauternes, Jerez, as well
as several other types of
sweet wines.
Primarily used for vin
jaune.
Also known as a
Tregnum or Tappit Hen
in the port wine trade.
3
4.5
20
25
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Balthazar
Yes
Yes
Yes
20
Nebuchadnezzar
Biblical, King of
Babylon
Yes
Yes
Yes
24
Melchior
Yes
Yes
Yes
26.7
33.3
Solomon
Sovereign
Yes
Yes
33
Volume
(litres)
Ratio
27
30
36
40
Name
Primat or
Goliath
Melchizedek
Notes
34
Appendix 7: Mc Kinsey 7s
35
36
37