Client Case Study

Two of the founding directors of the BLUE OCEAN Consulting Group, Brian Marks and Wayne Mortensen from Australia, assisted Casella Wines  to rapidly grow their industry changing BLUE OCEAN product [yellow tail].
yellowtailwinerange1

BLUE OCEAN Consulting Group's work is showcased in Chapter 2 of BLUE OCEAN STRATEGY.

Below is the summary of a Case Study that our practice co-authored with the INSEAD professors who wrote BLUE OCEAN STRATEGY: Chan Kim & Renee Mauborgne.

Crafting Winning Strategies in a Mature Market: The U.S. Wine Industry

Description: The case entitled, ‘Crafting Winning Strategies in a Mature Market: The US Wine Industry in 2001’ examines the competitive environment of the US wine industry in 2001, prior to [yellow tail]’s launch. The case demonstrates how the industry was overcrowded, highly competitive, and increasingly squeezed at the distribution and retail stages of the supply chain. Even though the industry was intensely competitive, wine manufacturers have systematically competed along the same set of factors that have hardly changed over the last few centuries. In July 2001, Australia’s Casella Winery introduced [yellow tail] into this highly competitive US market. Small and unknown, they had expected to sell 25,000 cases in their first year. In fact, they had sold nine times that amount. By the end of 2005, [yellow tail]’s cumulative sales were tracking at 25 million cases. [yellow tail] soon emerged as the overall best selling 750ml red wine, outstripping Californian, French and Italian brands. This case examines the strategic move executed by [yellow tail] that made it the number one imported wine and the fastest growing brand in the history of the US and Australian wine industries. The case is accompanied by a 2-part video called ‘Creating a Blue Ocean in the US Wine Industry’ that is free for instructor download. Part A provides a visual overview of the wine industry setting pre- [yellow tail]. It is a powerful complement to the paper case. Part B explores, through interviews with the principal players behind the launch of [yellow tail], the development and execution of Casella’s blue ocean strategic move. The case and the video dvd come with a comprehensive teaching note and are excellent for both MBAs and executives.

Case: Crafting Winning Strategies in a Mature Market: The U.S. Wine Industry in 2001

Author(s): W. Chan Kim, Renee Mauborgne, J Hunter, B Marks, W Mortensen
Read our Harvard Business School Case Study

Publisher: INSEAD

Teaching Note: Crafting Winning Strategies in a Mature Market: The U.S. Wine Industry in 2001

Author(s): W. Chan Kim, Renee Mauborgne, J Hunter, B Marks, W Mortensen
Harvard Business School Press Product Number: BOS 019

Publisher: INSEAD