Tesbury Is one of the Leading Supermarkets Chains in the Uk.

Question 1:

Tesbury is one of the leading supermarkets chains in the UK, offering two proposals for MontGras to consider. First, Tesbury invited MontGras to participate in a  “Gold Medal Wines” promotion in which 10 medal-winning wines would be offered for a £1 off. MontGras’ Merlot Reserva 2000, was awarded a gold medal for “Best Value Wine” by a leading UK wine magazine and is a candidate for the promotion.  

Tesbury’s second proposal was to take place three months later, debuting a selection of “South American Wines”. The promotion would take a %15 off the price of 6 South American wines. Both promotions would be supported by £100,000 of press advertising, direct marketing to regular store costumers, and point-of-sale marketing materials.

A tradeoff to consider before accepting the Tesbury deal -- the possible perception of lower quality or value because of the reduced price. However, the potential sales volume and customer conversion is an attractive offer. The regular price of the Reserva is £6.79 at Tesbury ($10.18 USD), which still places the Reserva in the premium quality tier. MontGras can still penetrate the premium market with the DeGras or the Ninquén wines if Reserva stays positioned as a value wine.

Question 2:

In terms of entering the US Market, MontGras has two options to consider.  World Wine Importers, who propose a “value for money” position with a price range of $7.99 - $10.99, and Cabo Imports, who offers a “high quality wine” position. Cabo Imports presents a desirable solution for MontGras – an understanding of the US market and a premium retail price point of $7.99 -- $14.99. This will ensure that MontGras is competitive with Californian wines, which are the leaders in the US market.  Finally, Cabo Imports’ creative marketing plan can push MontGras’ premium postioning effectively. Specifially, having a “Brand Champion” in the US can strengthen the ties in the market.