Brl Hardy Case Questions

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3. Should Millar approve Carson’s proposal to launch D’Istinto? Why or why not? As CEO of the newly merged companies, Steven Millar had to make a lot of decisions regarding competition and brand overlapping within the company. In this respect, Millar had to choose between the Italian brand D’Istinto versus the Chilean Mapocho brand. The Chilean enterprise’s bad and unreliable management, unstable sales and rather pessimistic forecasts doomed Mapocho to failure. D’Istinto on the other hand, was very successful as a result of the cooperation with 135 experienced wine growers in Sicily and corporate help in the form of new productive vineyard techniques and winemaking methods introduced by technical experts. Advantages Many beneficial characteristics of D’Istinto can be outlined. First of all, although the bottle looks expensive, the price is medium-low: between 3,49 £ and 5,99 £. This will attract a large number of consumers and generate about 80% of sales in the UK (Exhibit 9, Christoper A. Bartlett, P.18). Second, Carson has a very broad knowledge concerning Italian wine due to 20 years of marketing experience. Accepting D’Istinto will do him great honour and allows BRL Hardy to have its influence in a traditional winemaking country. Also, D’Istinto would have a higher chance of succeeding thanks to its high atractiveness to retailers. According to Carson this is essential to succeeding in local markets. Another benefit involves multiple advantages related with the industry threats if they choose to launch D’Istinto. First, industry threats will reduce because using grapes from Italy protects BRL Hardy against bad weather from Australia. Next, sourcing from multiple regions reduces the supplier related risk, and lastly, it would provide assistance against currency fluctuations in the market. Another important factor to consider is the fact that
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