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A Management Case Study On Sandlands Vineyards

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Georgia Tech University
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A Management Case Study on Sandlands Vineyards
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A Management Case Study on Sandlands Vineyards
1. Is the premium wine segment an attractive market?
The premium wine market carries favorable growth opportunities for Sandlands Vineyards
based on industry research, and promising indicators for potential success include branding,
direct-to-consumer sales, and technology. In focusing on the attractiveness of the premium wine
market segment, pestle analysis is critical. Therefore, on the political and legal factors, the wine
sector's level of control is very high in the U.S. In 2005, a ruling by the Supreme Court permitted
wine manufacturers to sell directly to customers and retailers. Apart from the production,
distribution, and selling of wine at the state and federal levels, it is strictly regulated and highly
taxed. The sector, on economic factor it encounters rising volumes and higher prices on long
courses. Statistically, 40% of the U.S. market's alcoholic intake is wine. The wine industry is
estimated at $66 billion, and 70 % of that is manufactured in the United States domestically.
About 90% of all wine production comes from California, particularly in the Napa and Sonoma
Valley, where millions of visitors see the wine regions and sample the wines each year (Esty &
Saldutte, 2019).
Socially, customers are in favor of higher quality wines and are shifting away from lower-
cost segments. For instance, reading through the case study shows that consumers love wine, and
as of 1965, American wine consumers have grown from about one gallon per year to two gallons
by 2000 and up to three gallons by 2016. Over time more than 40% of all wine buyers said they
bought a bottle of wine for more than $50 and above, while one-third of this percentage drank
wine frequently and accounted for 80 percent of consumption and purchase (Esty & Saldutte,
2019). Technologically, the introduction of grafting technology has sought to promote resistant
rootstocks during the growing phase. Also, equipment (including bottling machines, pressing and

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1 A Management Case Study on Sandlands Vineyards Your First and Last Name University Name of Course Instructor Name Due Date 2 A Management Case Study on Sandlands Vineyards 1. Is the premium wine segment an attractive market? The premium wine market carries favorable growth opportunities for Sandlands Vineyards based on industry research, and promising indicators for potential success include branding, direct-to-consumer sales, and technology. In focusing on the attractiveness of the premium wine market segment, pestle analysis is critical. Therefore, on the political and legal factors, the wine sector's level of control is very high in the U.S. In 2005, a ruling by the Supreme Court permitted wine manufacturers to sell directly to customers and retailers. Apart from the production, distribution, and selling of wine at the state and federal levels, it is strictly regulated and highly taxed. The sector, on economic factor it encounters rising volumes and higher prices on long courses. Statistically, 40% of the U.S. market's alcoholic intake is wine. The wine industry is estimated at $66 billion, and 70 % of that is manufactured in the United States domestically. About 90% of all wine production comes from California, particularly in the Napa and Sonoma Valley, where millions of visitors see the wine regions and sample the wines each year (Esty & Saldutte, 2019). Socially, customers are in favor of higher quality wines and are shifting away from lowercost segments. For in ...
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