4. Background Information
Located in the New York Finger
Lakes
Current offerings include:
Rieslings, Whites, Blushes,
Reds, and Sparklings
Participate in wine tours, tastings,
and local events
Organizational values include:
sustainability, consistency,
variety, freshness, and integrity.
6. External Analysis: Local Wine
Growing 21% in grape production by volume and 22% by value
In 1994, there were fourteen wineries on Seneca Lake and, presently, there
are forty-four
Annual visitors at Fox Run peaked in 2006 with 80,000 visits and now is
experiencing ~47,000 annually
Comprised of 240 active wineries, as of 2008
The most well-known and highly regarded grape varietal is Riesling
82% of wineries in New York are defined as farm wineries, but they represent
only 5% of wine production
7. External Analysis: National Wine
Wine leads consumption of alcoholic beverages: 59% drink wine, 57% drink
beer, and 54% drink spirits
Dollar sales of wine grew 10% between 2009 and 2014 when adjusted for
inflation
Slowing growth is forecasted to be 4% after inflation due to consumers
being less loyal to wine and more willing to try other alcohol
On-premise sales of wine have flat-lined
Increased competition in the wine industry makes it is difficult for wine
companies to have any leverage with distributors
8. External Analysis Overview of Wine
External Analysis: Trends
Increasing popularity in craft, local and artisan alcohol
Consumers want to be in the know and demonstrate they have a taste for
the finer things in life.
“Secret” tastings, advertised via social media or word-of-mouth
Consumers are less concerned with traditional formalities
40% of wine drinkers are interested in trying wine in boxes, pouches,
and plastic bottles
50% say wine in a screw top is as good as wine in a cork top
33% of wine drinkers try wine with added ingredients like cinnamon and
pepper, 55% ages 25-34
30% mix wine to make cocktails
9. External Analysis: Customers
Millennials are slightly more likely to drink beer as opposed to wine
Home drinking is preferred by young drinkers
Young consumers are more likely to try many kinds of alcohol, in fact it is
considered a source of pride to have tried the most amounts of alcohol
Older drinkers are less price and quantity sensitive, and are more likely to
make their own decisions with wine because
of their established tastes.
13. Frequent Drinkers
46% male, 54% female
Represents 30% of the sample and
is primarily non-Hispanic people
ages 45 and over
Pre-established tastes
Less concerned with packaging -
“A screw top is as good as a cork
top.”
Unlikely to spend more than $10 on
wine
15. On-Occasion Drinkers
Largest segment - comprising 41%
of the sample
Consumers ages 22-44
Evenly divided between men and
women
Primarily single
Willing to pay a high price for
quality
Particularly interested in sparkling
wine like champagne
Care about the image of the wine
they drink - imported
17. In-Moderation Drinkers
Represents the smallest segment,
29% of the sample
45% purchases wine at least once
per week
Not as likely to pay for the high
prices of imported wine
Focused on:
Local
Health
Quality
20. Internal Analysis: Management
Completely family-owned
Progressive owners Scott and Ruth are prominent in the Finger Lakes wine
scene
Winemaker Peter Bell has been an employee for 18 vintages
Inventory Manager, Pete Howe, has been with the company for twenty
years and has assisted in the vineyard and winery by operating the
bottling line
Sales Manager Dan Mitchell and Marketing & Events Manager Marisa
Indelicato serve in key roles
Overall, Fox Run benefits from a seasoned management team
21. Internal Analysis: Production
Produces 15,000 cases of wine annually from grapes grown both on the
organization’s 100-acre estate as well as grapes purchased from local
growers
Fox Run grapes are all of the vitis vinifera variety and the locally grown
purchased grapes are typically a less-expensive hybrid
Uses local suppliers as much as possible: the tanks in the winery were
manufactured by a Geneva, NY company, the bottles, corks, and closures
come from Waterloo, NY, and the labels are produced by a Syracuse, NY
company.
Harvest time is generally from September through the end of October,
depending on the growing season
22. Internal Analysis: Products
Typically thirty different wines offered by Fox Run Vineyards at any given
time
Offers wines that are differentiated based on price point and on
sweetness level; is able to serve a diverse group of existing and potential
consumers
Offers two different Chardonnays and roughly eight Rieslings that, combined,
represent just over 50% of sales by dollar value
Finger Lakes wines are considered to be cool climate wines
This climate is accepted as being more conducive for producing lower
alcohol, higher acidity, and food-friendly wines
23. Internal Analysis: Marketing Efforts
Overarching idea of Fox Run’s marketing strategy is to offer a wide variety
of wines that suit the needs of a diverse population of wine drinkers
Wine drinkers begin preferring less expensive sweeter wines, and as their
tastes mature, they can be up-sold to other, higher margin wines
Loyalty-driven Wine Club with benefits for members that include discounts
and exclusive access
A monthly newsletter is sent with the latest news including recent awards,
events, and new releases.
Promotes off-site by visiting liquor stores and restaurants and attending
special events
Manages labels and shelf-talkers for stores as well
as social media and internal events
24. Internal Analysis: Channels
Wines in the United States are sold through a three-tier system comprised
of producers, distributors, and retailers
Since the end of prohibition, liquor laws have been governed by individual
states - Fox Run has a different distributor in each state their products
are sold
35% of Fox Run wines are sold on-site in their tasting room with the other
65% coming from distribution
Nearly 75% of wines sold through distribution are sold in New York State
Of the wines sold in New York, over 80% are sold in upstate New York
26. Competitive Analysis
Chateau Ste Michelle
Target Market: Females 25 - 45
Product and Pricing Strategy: Top-Selling Brand, Riesling, $8.00 - $10.99
Channel Strategy: West-Coast (Grocery Stores), Crowd-Sourced Wine
Positioning and Advertising: Sustainable, “A Company that Cares”
27. Competitive Analysis
Dr. Konstantin Frank
Target Market: Purists, Wine Connoisseurs
Product and Pricing Strategy: $12.99 - $22.99, Separate Labels for Different
Price Points
Channel Strategy: Liquor Stores, Online
Positioning and Advertising: Oldest, Award-Winning, European Founder
28. Competitive Analysis
Ravenswood
Target Market: Males 25 - 35
Product and Pricing Strategy: Zinfandels ($7.99 - $31.99), Different Series
for Different Price Points
Channel Strategy: Constellation Brands - All States
Positioning and Advertising: “No Wimpy Wines”, Rustic, Toughness
37. Value Proposition: Benefits Offered
● High Quality
● Cool-Climate Wine
● Community Involvement
● Variety
● Commitment to Sustainability
● Management Experience
● Events
38. Value Proposition: Not Offered
● Wide Distribution - Only 9 States
● Retail Location Outside of Vineyards
● Alternative Packaging
39. Value Proposition Statement
“Among young, cultured, locally-driven, green
adventurers, Fox Run Vineyards is the brand of cool-
climate New York Finger Lakes wine that delivers unique
coaxed, not wrestled high quality wine because Fox Run
Vineyards filters our wines as little as possible to allow for
the true character of each grape variety to shine through.”
48. Citations
Bloom, Beth. "Wine - US - October 2014." Wine - US - October 2014. Web. 18 May 2015.
"Welcome to Passport." Euromonitor International. Web. 18 May 2015.
Gordon, Jim. Ste. Michelle Dominates $8-$10.99 Wine Sales. Wines & Vines. Aug. 15, 2012.
http://www.winesandvines.com/template.cfm?section=news&content=104230
Newman, Adam Andrew. Marketing Wine as a Respite From Women’s Many Roles. The New York Times. Aug. 29, 2012
http://www.nytimes.com/2012/08/30/business/media/marketing-wine-as-a-respite-for-harried-women.html?_r=0
Perdue, Andy. Ste. Michelle creates Anew Riesling label for women. Great Northwest Wine. Jun. 9, 2013.
http://www.greatnorthwestwine.com/2013/06/09/anew-riesling/
Fox Run Vineyards Website - http://foxrunvineyards.com/
Marketview Liquor Website - http://www.marketviewliquor.com
http://bi.galegroup.com.ezproxy.rit.edu/essentials/company/593902?u=nysl_ro_rinst
http://www.netadvantage.standardandpoors.com.ezproxy.rit.edu/NASApp/NetAdvantage/loadIndustrySurvey.do?task=loadInd
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