Mount Nittany Vineyard and Winery Company Analysis Essay

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Customer demographics

Mount Nittany Vineyard and Winery accentuates both customer satisfaction and affordability as a strategy for upholding its position as the producer of a 100% naturally grown and processed wine. The company has stratified its target market into upper and lower economic end customer segments.

The Mount Nittany Vineyard and Winery’s wine products are further classified into premium and ordinary in order to maximize the returns from customers from different social and economic backgrounds.

Despite the relatively crowded market, Mount Nittany Vineyard and Winery has designed and integrated a reliable and efficient distribution platform to ensure that they remain the most reliable provider of wine products across the regions of Penn/Philadelphia and its neighboring counties.

The company targets adults who love naturally processed wines. As a result of the stratified quality assurance, the company recorded a sale of 450, 000 bottles in the year 2013 alone. Most of the customers are in the bracket of adults between the ages of 30 and beyond. This can be attributed to its catchy wine advertisement messages which the adult customers can identify with.

Fortunately, the company is geared to further penetrate the market since it plans to introduce more products and has adopted the Penn/Philadelphia themes in its wine brands (Mount Nittany Vineyard and Winery, par. 4). The main success parameters of the company include customer acquisition, customer retention, quality services, and proactive response to different business situations (Barringer and Ireland, 31).

For instance, direct engagement with the customers has ensured fast growth since customized products delivered to the customers has created confidence and loyalty in the Penn market.

Operations statistics

The stable management team comprising of two directors and fifty employees is instrumental towards providing necessary support and production of the quality wine in the market. The company understands the wine market because of its series of products and distribution platforms.

The Sauvignno Blanc, Chenin Blanc, Shiraz, Chilean Merlot, and Champagne Style Brut are some of its products that are created for the upper and lower economic ends of the market. The company has a strong presence in the wine production industry due to its wide network of distribution channels (Mount Nittany Vineyard and Winery, par. 9).

In order to remain relevant, the Mount Nittany Vineyard and Winery Company has established a unique market for its customer through tailored optometry wine products for the customers in the upper and lower economic ends of the markets. Mount Nittany Vineyard and Winery’s performance in the Penn/Philadelphia wine industry depends highly on the power of the private consumers and the corporate segments.

Financial information analysis

Year 2013
Sales$12,000,000.00
Cost of wines sold$4,800,000.00
Gross Profit$7,200,000.00
Selling & Admin. Expenses$960,000.00
Depreciation Expense$2,000,000
Operating Income$4,240,000.00
Interest Expenses$1,350,000
Earnings Before Tax$2,890,000.00
Income Tax (40%)$1,156,000.00
Net Income (NI)$1,734,000.00

(Source: Mount Nittany Vineyard and Winery, par. 11)

Competition and competitive advantage

There are several wine production companies operating in the same industry with virtually all of them dealing with a variety of the wine products, as the case at the Mount Nittany Vineyard and Winery. For instance, the household brands such as Sutter Home and Kendall-Jackson wines provide competition to the Mount Nittany Vineyard and Winery due to their big market share and expanded networks.

In line with this, the Mount Nittany Vineyard and Winery Company introduced more interesting products in its product line in 2009 such as the “Cayuga, Seyval Blanc, Riesling, Chardonnay, Vidal Blanc, de-Chaunac, and Cabernet Sauvignon varieties” (Mount Nittany Vineyard and Winery, par. 6).

The business also has the opportunity of developing more products and services for its market since the demand for wine is higher than the annual quantity supplied by all the wine production companies. For instance, the company plans to introduce a scotch or a ready to drink vodka brand. In addition, the company plans to introduce a lower alcohol content drink to target the women alcohol consumer market.

Through competitive pricing, strategic expansion, and planned diversification, the Mount Nittany Vineyard and Winery has managed to establish a strong market niche in Penn despite the rivalry. At present, the company has a very responsive customer support and a well organized distribution channel for its products.

Mount Nittany Vineyard and Winery Company has a great opportunity for expansion since the market is inclined to its advantage. For instance, its innovative approach to addressing consumer quality, price concerns, and convenience via a well organized distribution network is an assurance for rapid expansion into new market niches.

Current rhetorical identity

The Mount Nittany Vineyard and Winery product varieties give it a competitive advantage over its competitors. The product development variables at the company are connected at the central point of strategic planning. The variables encompass costing, speed, quality, flexibility, and dependability to create a smooth, continuousoperation tracking model. This makes it easy to communicate with the customers (Belch, Belch, Kerr and Powell, 29).

Mount Nittany Vineyard and Winery’s strategy in marketing its products relies on the assertion that “products don’t just perform, they actually exhibit behavior” (Mount Nittany Vineyard and Winery, par. 8). Thus, through effective advertisement, the target segment has increased their purchase of the Mount Nittany Vineyard and Winery products. Interestingly, this identity has remained consistent across its different forms of brand and product communication.

Works Cited

Barringer, Bruce, and D. Ireland. How Bringing Its Business Plan to Life Helped a Social Enterprise Get Off to a Strong Start, New York: Free Press, 2009. Print.

Belch, George, Michael Belch, Gayle Kerr and Irene Powell. Advertising and Promotion: An Integrated Marketing Communications Perspective, Boston: McGraw-Hill, 2008. Print

Mount Nittany Vineyard and Winery. . 2014.

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IvyPanda. 2020. "Mount Nittany Vineyard and Winery Company Analysis." March 19, 2020. https://ivypanda.com/essays/mount-nittany-vineyard-and-winery-company-analysis/.

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