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The wine market in the US has been faced by stiff competition in the wine market. The desert wine has been of great importance in the wine industry. This has been attributed to the large margin that market players get from such sales. Though constituting about 10% of sales made in the industry, desert wines has transformed market trends and forced many distributors and selling agents make large stocks of the brand (Armstrong, Stickland, & Green, 2010).
Desert wines that were sold in the half pints was liked by many alcoholics because they could be placed in the back pocket making them secure. The high margin was realized in the sales of the low-end desert and fortified wines because the ingredients that were used in the manufacturing of the wine and the packaging costs were relatively lower compared to other products (Armstrong, Stickland, & Green, 2010). This has therefore made the segment lucrative for distributors and sellers. The brand is therefore important for the industry success and performance.

E & J Gall Winery was also keen on the performance desert wine. To succeed in a market characterized by competition, the company [url=http://www.vivid-host.com/barbour.htm]barbour uk outlet[/url] had to formulate strategies [url=http://www.achbanker.com/home.php]hollister[/url] that were aimed at ensuring subsequent sales of their brands. The company introduced various measures [url=http://www.hanesmorgan.com]hollister sale[/url] that were aimed at ensuring sales were made even to the low-income earners and at periods when peoples cash floats was low.
The bottles used in packing E & J Winery were customized to ensure continued sales. Gallo intends to improve their products quality and company's image in order to be a going concern. The sale of Thunderbird and Night train impaired the image of E $ L and the company was in a journey to improve their products quality (Armstrong, Stickland, & Green, [url=http://www.hanesmorgan.com]hollister outlet[/url] 2010). With the sale of the desert wine, the company [url=http://www.vivid-host.com/barbour.htm]barbour uk[/url] will be sailing in the positive direction, as it will improve the products quality to gain a competitive edge.
Thunderbird and night train are brands that lack reputation in as much as they have a market demand in some segments. E & j Gall Winery distances itself from these two brands because of the negative publicity it has had because of this low [url=http://www.1855sacramento.com/peuterey.php]peuterey outlet[/url] quality, low-priced brands. Even though, the two alcohol brands may have a market demand, their impacts on the behavior and health of the users has left many regretting.
Those who have drunk Night train describe it as having the smell of a rotten lollipop (Armstrong, Stickland, & Green, 2010). Others who have drunk Thunderbird are said to cause fights and therefore causing social evils. Businesses should consider the impact of their products on the society irrespective of the profits the company earns from the sales. The products lack a redeeming feature and will cause social cost to the society.
Success Factors in Desert Wine Segment
For success to be realized in the desert segment, the products must be manufactured at a low cost. Ingredients and packaging costs are made low to ensure that the margin is increased. It is anticipated that the profit margin was 10%. Another success factor in [url=http://www.1855sacramento.com/peuterey.php]giubbotti peuterey[/url] the desert wines is its distribution. Consumptions patterns is influenced and affected by the accessibility of the products. In the case of desert, many distributors ensured widespread distribution of the product making it available in the market. The strategic positioning of the wines in the shelves [url=http://www.achbanker.com/home.php]www.achbanker.com/home.php[/url] and the good returns garnered by the sellers makes the profit increase.
Gallo fortified wines and the other wines all are aimed at positioning the company towards improving on the quality of the wines and adapting to changes in the market. Fortified wines and other wines will ensure that Gallo increase its [url=http://www.1855sacramento.com/woolrich.php]woolrich bologna[/url] market share growth and control by making it enjoy strategic fit against the competitors. The two wines will also be in tandem with the company's strategy to reduce its production and distribution of T-bird and Night train (Armstrong, Stickland, & Green, 2010).
Gallo is a company and the core objective of a business is to make profits. The company earns profit from the sale of the fortified cheap wine and not anything that will lead to discontinuation in its production will sound feasible for the company. The company must at the same time look into ways in which it remains socially responsible to its stakeholders. The company must thus make a compromise on the decision to undertake if all stakeholders have to get their needs considered.
Conclusion
Gallo could also discontinue the manufacturing of some other fortified brands that had adverse on the image of the company. Through this, the company would be able to attract new customers and increase the market share while at the same time achieving a competitive edge against its competitors. In conclusion, the wine manufacturing business requires companies to be flexible and adapt to the needs of the customers caused by the changing consumer tastes and preferences.
Consideration must also be given to the changing legislation and the expectation of the society with regard to the effects of substance abuse. The need of maintaining ethical standards and satisfying the stakeholders' needs must as well be [url=http://www.getconversational.com]hollister france[/url] incorporated in the policies of a business. Gallo should therefore improver on their ethical standards and look at the needs of various stakeholders.
Reference
Armstrong, M., Stickland, A., & Green, T. (2010). Craftingand Executing Strategy:Concepts and Cases (17 ed.). McGraw Hill.
Mallin, C. A. [url=http://www.buynflticketsonline.com]NFL Tickets[/url] (2010). Corporate social responsibility: a case study approach. Edward Elgar Publishing.
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