Abstract

The case “Chile’s Concha y Toro: Successfully Selling ‘New World’ Wine Globally,” describes the efforts taken by Chilean company Concha y Toro (Concha) to build its brand image in the global wine market, where Chilean wines were perceived as cheap. The case starts out with the history of Concha and its emergence as the leading Chilean wine producer and exporter. The successful efforts of the company to enhance the brand image of its flagship premium brand – Casillero del Diablo — is provided in detail. The case also mentions the production strategy and the global distribution strategy of the company, both aimed at strengthening the company’s brand image. The upshot of the company’s acquisition of leading US wine maker, Fetzer Vineyards, in enhancing its brand positioning and US market prospects is also discussed. The case ends with a summary of the company’s financial performance, which is a reflection of its success in growing sales of its premium segment.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To understand the importance of brand positioning
• To recognize the impact of sponsorship on brand equity
• To know the importance of an effective distribution strategy
• To comprehend the value of quality and innovation in improving brand image

Keywords

Wine, Emerging Markets, Brand Identity, Brand Management, Chile, Casillero del Diablo, Concha y Toro, Sponsorship,Fetzer, Silver Bullet, Perception Management, Manchester United, Premium brand, Globalisation, Price Competition