Stuart Cellars Case Study

The problem at hand for Stuart Cellars it’s their prices for its wines. They are a family owned winery that is located in Temecula, California. The average retail price for their wine is around $28 per bottle. When it comes to pricing wines, cost varies based on winery location and the number of years that the winery has been in business. One rule of thumb for wineries is to price a bottle of wine at 1/1000 the cost of a ton of grapes. For example, a bottle of wine from a batch of $40,000 Cabernet Grapes would be $40. The wine business is known to be a highly lucrative business. To make up for this Stuart Cellars is targeting the upper end of wine connoisseurs. This may include people who can afford a premium product at a premium price. This group of people only represent the top 10-15% of those who purchase wine. Though people’s perceptions are driven by wine pricing, the average bottle price is dropping. Part of this is because of the growing popularity of New Zealand and Australian wines. Recently the most popular wine brands are less than $10 per bottle. …show more content…
Instead of just offering their products for sale through taste testing, its website, and retailers in California. They should try to broaden their target market past the top 10-15% of wine connoisseurs. Since image is so important wineries sell their wines through fancy bottles, elegant and artistic labels, celebrity endorsements, and reviews that can influence a consumer’s perception of the value of their wine. Incorporating this into their brand Stuart’s Cellar can keep their appeal to their premium wine connoisseurs, but be able to reach a new secondary target market that comes along with advertisement tactics like celebrity endorsements. Celebrity marketing is when a famous person uses their notoriety to help sell a product or