Frog Leap Case Essay
In 1981, John Williams and Larry Turley established Frog’s leap winery in Napa Valley. Frog’s leap winery began production in 1981 with 653 cases of Sauvignon Blanc. By 2010 they produced as many as 62000 cases of different variety of red wines. According to John Williams, he have developed the industry most sophisticated Environmental management system. The companies have employed some sustainable initiative, which have benefited them. Furthermore they want to become more ecofriendly and turn their sustainable investment into profit. The issues faced by the companies are raising energy cost, water scarcity, chemical exposure and climate change. Also they owe $22 million to bank. Additionally as Williams mentioned that his …show more content…
3.FLW has built community of workers. Their workers get stable wages housing and healthcare and their workers kids go to school. There are fewer problems with documentation, better health, less crime and use of the community’s safety net.
All of these initiatives made FLW to differentiate from competitors, especially in the period of 2008-2009 (financial crisis period), where all the competitors were struggling to sell their inventory, while FLW remained profitable. Their sustainability strategy resulted in lower operating costs.
FLW ‘s conventional distribution channels innovation of “wine-by-the glass” program using kegs (instead of bottles) of wine, and by initiating direct-to-consumer programs, including a tasting room, and “Fellowship of the Frog” wine club is going good but they should concentrate more on resellers as most of their profit is earned from them. Also opening more Wine club’s
FLW should have also concentrate in marketing their brand as a sustainable pioneer in winery industry, which will attract the 17% of consumer knows as “green customers” with the spending power of $209 billion annually. This would have resulted in higher revenues.
Increase international exposure
Increase sales volumes in Japan and China
•Favorable brand image toward Californian wines as a Green Brand
•Older population with