Terlato Wines International: Managing Rutherford Hill Merlot in a Post-Sideways Market

Abstract

In 2005, a wine snob in the critically acclaimed movie Sideways denounced merlot. Subsequently, sales of merlot, including sales for Terlato's Rutherford Hill merlot, declined significantly. Students are asked to evaluate three strategies---rebranding, cutting price, and launching television advertising---that Terlato is considering to reverse this decline. The case should be used with “Student Supplement: Terlato Wines International: Background Note on the U.S. Wine Market and Terlato Wines International,” Case #KEL359.

Students explore the challenge of managing a brand when external factors cause a decline in category demand. They also explore the role of pricing and advertising in managing a small, luxury brand.

Citation

Tybout, A.M., Bennett, P. and Koenigs, B. (2017), "Terlato Wines International: Managing Rutherford Hill Merlot in a Post-Sideways Market", . https://doi.org/10.1108/case.kellogg.2016.000338