Sandlands Vineyards: Strategic Decision on Eastside Meats Building

This case study examines the strategic decision-making process of Sandlands Vineyards, focusing on whether to purchase the Eastside Meats building for expansion. The analysis delves into the wine industry's competitive landscape, Sandlands' marketing strategy, target customer base, and comp...Read More

Running head: CONSULTING PROCESSES
CONSULTING PROCESSES
Name of the Student:
Name of the University:
Author note:

1CONSULTING PROCESSES
Introduction
With a value of 60 billion dollars, the wine industry has faced considerable growth in
the United States. While a much segmented industry, the competition is high and the margins
are low for the small player. A young wine aficionade, Tegan Passalacqua’s life has been
associated with wine for significant period. As per reports, since 2012, Passalaqua and his
wife Olivia purchased a 20th acre vineyard known as the Kirschenmann Vineyard and a small
winery recognised as Sandlands Vineyards which produce old-vine wines (Thach & Olsen,
2015). Furthermore, Passalacqua has been engaged as a head winemaker at the Turley Wine
Cellars and has been involved with Folio Fine Wine Partners. Regardless of the odds,
Sandlands seems to be successive. However, in 2017, Passalacqua gathered significant
information about the Eastside Meat processing services. While the building has not been
listed for sale, Passalacqua gathered the information about the sale of the Eastside Meat
processing facility (Kelley, Hyde & Bruwer, 2015). The Passalacqua recently encountered a
vital decision whereby they he needs to reconsider of spending $500,000 in procuring the
road down from the Kirschenmann Vineyards and strategically develop it into a winery and
possibly a tasting room for Sandlands wine or if they need to reconsider of saving their
limited resources with the agenda of purchasing another vineyard (Esty & Saldutt, 2018). The
following report will evaluate the purchase decision of Passalacquas in buying the Eastside
Meats Building and develop it into a winery or purchase another old vineyard or make some
other strategic decisions.

2CONSULTING PROCESSES
Discussion
Recommendation Summary
In light of the aforementioned Marketing Strategy, target consumer base, strategic
choice of Sandlands Vineyard it is recommended to Passalacquas to purchase Eastside Meats
and develop it as a winery. Firstly, the budget is not highly exorbitant at around 0.5 billion
dollars and could utilize the building with an aim of generating additional capacity of
producing more unique taste wine (Laszlo & Zhexembayeva, 2017). At this juncture, it can
be claimed that the procurement of Eastside Meats can be effective for Passalacquas to
expand its product as its clientele are typically deprived of receiving the current wine
products and in consequence have to purchase illegally. This type of illegal purchase will
undermine the sales of Sandlands’ wine and consequently their brand image. In addition to
this, Passalacquas could implement the purchase as strategic sales channel in order to attain
their consumers on-site and expand their wide-ranging wine stories to increased clientele. In
opinion of Kelley, Hyde and Bruwer (2015), the purchase of Eastside Meats could facilitate
Passalacquas in reaching out to greater number of local consumers from California and attain
more wine enthusiasts from their target customer base of New York or Colorado. Such
attainment of customers would aid the owner of Sandlands elevating the interest of newly
attained consumers in their winery products through ‘word of mouth’ marketing strategy.
Furthermore, Passalacquas through the acquisition of Eastside Meats could establish
association with tourism sector and strategically endorse and market its winery products as
wine experience group and couple package.
Acquisition of Eastside Meats by Passalacquas will be highly effectual as it will bring
into line mass prestige approach. The Eastside meat building will increase in value
proposition and hence serve as an advantageous factor to Passalacquas. The Eastside Meats
building will further enable Sandlands to achieve its shared production capacity and augment

3CONSULTING PROCESSES
its production capacity which will consequently help Passalacquas to accomplish its
consumer desires. However, report has revealed that nearly 80% of vineyards in the United
States will encounter monetary fluctuations. According to Thach and Olsen (2015), since
owners of organizations have particular choices to make, they must take into consideration
particular results and judgments aligning to existing business operation reference to benefits
and losses whose results possibly will facilitate decision-makers of Sandlands to take
essential actions. Thus, taking into account the factors of benefits and losses, Passalacquas
must underline the decision of purchasing Eastside Meats building and expand its business.
As per studies of Kelley, Hyde and Bruwer (2015), because of ever-increasing competition in
the U.S wine industry related to pricing and quality, Sandland might encounter challenges of
executing its operations with utmost efficiency. Furthermore, irrespective of losses, extensive
emphasis on enhancing wine quality and expansion of clientele will facilitate Passalacquas to
reach new height with elevated efficiency, quality, value and compatible price values.
Situation
Marketing Strategy of Sandlands Vineyards
Sandlands Vineyards comprises of a marketing strategy though not well-defined and
articulated. As claimed by owner Passalacqua, the marketing strategy of the company relies
on producing affordable wines which their friends and associates could consume. Their
marketing strategy can be evaluated by 5Ps of marketing mix (Vin, 2020).
Product- Sandlands Vineyards make exceptional, good quality forgotten classic California
range of wines with grapes from old vineyards with no intervention in winemaking procedure
and without any use of pesticides and simply organic which would be preferred by wide
range of customers.

4CONSULTING PROCESSES
Price- Passalacqua distribute around 75% of its production directly to its consumers through
e-commerce services and applications like VineSpring and rest 25% of the production to
three distribution in markets of California, New York and Colorado with access to influential
people such as sommeliers and wine lovers.
Promotion- Sandlands Vineyards prefer to promote its products through word of mouth
marketing and distributors’ access to significant people of the wine market.
Packaging- Sandlands distinctive yet traditional labelling evokes mythical California which
could have been effective in the past as well as in prospective days (Thach, Lease & Barton,
2016).
Since Sandlands takes into account strategic processes for creating, communicating and
delivering wines which will have significant value for consumers, the company must create
strategic marketing.
Sandlands’ Target Customer Base
SandLands is targeting customers who generally show high passion towards wine and
prefer to pay high for the exceptional experiences. Their consumer base chiefly comprises of
wine enthusiasts and seeks distinctive wine tastes and incline towards learning about unique
variation with related story (Gilinsky, Newton & Vega, 2016). Sandlands do not target
consumers who show high inclination towards reasonable wine and price. They also do not
target consumers who prefer to incline towards specific brand or image seekers intending to
influence others.
Sandland’s Competitive Advantage- Porter’s Strategic Options
Sandlands Vineyards has attained sustainable competitive advantage and have an
option of attaining the strategic positions. According to Newton, Gilinsky Jr and Jordan
(2015), there can be various sources of sustainable competitive advantage for Sandlands

5CONSULTING PROCESSES
Vineyards. The wine company can rely on advanced technologies in order to lessen its
international production outlays and can pass this benefit on to its wide ranging customer
base. Sandlands Vineyards further can shed light on creating distinctive item or organization
with an aim of elevating its overall share of the revenues earned. Furthermore Sandlands can
produce substantial sustainable competitive advantage by using these systems. This can be
achieved by the means of well-established and advanced procedures and increase its share of
earnings (Villanueva, Castillo-Valero & García-Cortijo, 2015).
Differentiation Strategy-Organizational Leadership
Passalacquas has utilized differentiation factor in order to upload superior leadership as well
as differentiation from industry competition. According to Esty and Saldutte (2018),
differentiation of effective leadership possibly will be attained through diverse forms and
groundwork.
Brand Product Range
Product Range- Such a differentiation is likely to fluctuate with diverse range of items and
industry. In general sense, the fundamental basis of differentiation range from durability,
effectiveness and brand identification. Sandlands Vineyards has differentiated its items as
well as products reliable on the quality and establish a completely different and involving
customer experience (Kelley, Hyde & Bruwer, 2015).
Brand image- Passalacquas has developed an exceptional and distinguished brand
representation which can be considered as a premise of differentiation and stimulates
Sandlands’ ability of marketing and promotion of its products as well as brands as compared
to rival players in the local as well as overseas markets.

6CONSULTING PROCESSES
Leadership and Differentiation through Expenditure
Porter’s well-established methodologies are likely to increase as well as develop
sustainable competitive advantage for Sandlands. This is because the firm has been
establishing the ‘edge’ which possibly will help Passalacquas to attain the ideal position as
well as distinguishes it from competing players of the U.S wine industry. As per Gilinsky,
Newton and Vega (2016), there has been found two primary methods for achieving the ideal
position under cost leadership methodology. Firstly by elevating revenues and lessening its
expenditures while stimulating industry average prices and outlays from consumers.
Secondly, Sandlands can augment its share of overall industry by charging reduced costs and
simultaneously generating significant profits on regular business as Passalacquas has been
regulating and reducing its expenditures.
In the view of Newton, Gilinsky Jr and Jordan (2015), the cost based strategy as well
as system take into account Sandlands’s as the pioneer related to cost in the industry and
market where it functions. However, for Sandlands will not suffice by serving minimal price
ranged products, since it is susceptible to aggressive attacks by other competitive producers
and players in the U.S wine industry. According to Villanueva, Castillo-Valero and García-
Cortijo (2015)., these players show a propensity of undermining Sandland’s costs and might
further obstruct Passalacquas’ efforts towards the growth of its shares of the overall market
income.
Accomplishing cost leadership
Sandlands must focus on the susceptibility of imitation by competition and equipped
for rival players in order to emulate same taste and consistency produced by Sandlands. By
drawing relevance to this factor, it can be noted that Passalacquas must not establish only
single aspect of cost leadership but make continual improvements (Morrison & Rabellotti,
2017). Such continual developments can be done through various methods such as involving

7CONSULTING PROCESSES
and using renowned Japanese method of Kaizen, generate high efficiency and restricted
usage and use of dealing ability in order to set up minimal costs for generation inputs along
with effective creation procedures.
Complications
The strategic choices involve tools as well as techniques which are essential in
endorsing and increasing product positioning as well as attentiveness in the market. Report
has revealed that Passalacquas has failed to implement in diverse approach as compared to its
competing players like Napa and Sonoma. According to Gilinsky Jr et al. (2015), one of the
brand preferences which have been developed by Sandlands comprises of a brief branding
strategy. As per reports, Sandlands has not been able to strategically engage in pricing
strategy with an agenda of establishing a proper price which is less margined as compared to
general pricing of wine products in the U.S wine industry. As a result, the increase in the
positioning of the brand in the market has to be lucrative for the sales of wine in the U.S wine
industry (Taplin, 2015). However, it has analysed that Passalacquas must take into account
strategic choices for elevating its sale of wine products like digital promotional activities
which might increase its consumer reach as compared to the existing strategies implemented
by Passalacquas.
By drawing insights of Sandlands Vineyards, it has noted that one of the probable
implications for strategy must be related to the development of digital marketing campaign in
order to attain majority of individuals. According to Villanueva, Castillo-Valero and García-
Cortijo (2015), business organization and its management can progress with the marketing
campaign via social media and search engine optimization procedure which tends to elevate
the attainment of consumers as compared to its rivals. On the contrary, the firm has been
incompetent to present catalogues and varied offers with an aim of augmenting attention of
customers in the US wine industry. Morrison and Rabellotti (2017) have noted that

8CONSULTING PROCESSES
involvement of appropriate strategy implementation can facilitate firms to increase its
business performances in local and overseas wine market.
VRIO Analysis of Sandlands Vineyard
Sandlands Vineyard constitutes of a dynamic global presence.
Valuable- The firm with strong global recognition is considerably valuable in endeavouring
to expand its size, negotiations and achieve share of revenues of the American wine market.
Rare- Sandlands Vineyard has been recognized as one of the leading vineyard owing to it
exceptional taste and quality (Gilinsky Jr et al., 2015). However, other vineyards in the US
wine market also offer products which are offered by Passalacquas’ firm. Such substitution
results in accessibility of similar products by other companies.
Imitability- As per reports, there has been observed almost no major competition of
Sandlands Vineyard which could make relevant replacements to its product. Since Sandlands
comprises of major global presence in relation to its wine quality as well as consistency, it
would be challenging for the rival players to imitate its products (Taplin, 2015).
Organization- As per reports, the Sandlands Vineyard facilitates its consumers to establish a
strong bond with the brand. This enables Sandlands’ clientele to develop emotional linkage
with the brand and experience its product as an extension of its brand. Hence, the brand
becomes a valuable asset for Sandlands Vineyard (Muscio, Nardone& Stasi, 2017).
Resolutions
Sandlands Vineyard should make proper usage of its competitive advantage with an
aim of establishing association with their clientele with distinctive story in linkage with
historical events related to each wine item. Most importantly, investing on any other vineyard
would not be as effective as purchase of Eastside Meats building due to its excessively

9CONSULTING PROCESSES
inflated charge, non-economies of scale to make investment returns (Laszlo &
Zhexembayeva, 2017).
Moreover, Passalacquas must take into consideration that Eastside Meats already has
robust position in the market and has close association with old vineyards which produces
vine grape for sourcing. Furthermore, Sandlands should also take into consideration making
major financial investments in ecommerce markets and digital marketing and advertising in
wine magazines to penetrate in U.S tourism sector. Such a strategy could facilitate Sandlands
Vineyard to reach as well as develop their influential target consumer base such as
sommeliers as well as wine enthusiasts rather than focusing on distributors who only
consume wine as per reasonability of price (Muscio, Nardone & Stasi, 2017).
By establishing the value network as well as by enhancing the quality as well as
superior components at diverse stages, Sandlands Vineyard under the management of
Passalacquas will be competent to uphold its competitive advantage and further have a hold
over new competitors from the industry by mitigating its blockades to enter into new market.
Such strategy will further permit the company to preserve sustainable affordability over other
companies. It will further help in maintaining a conceivable leadership position in the local
and global markets as well as industry.
Conclusion
Therefore, from the above discussion it can be concluded that Sandlands Vineyard has
been executing its operations in an extremely complex market. Thus, the market
segmentation has been grounded on product quality as well as price of wine. Furthermore, by
analysing its market position and competitiveness it has been observed that there is rigid and
inflexible competition in the US wine industry with varying customer choices. It has been
further noted that Sandlands Vineyard has increased its level of performance and market
positioning in the U.S wine market. Sandlands should also take into consideration making

10CONSULTING PROCESSES
major financial investments in ecommerce markets and digital marketing and advertising in
wine magazines to penetrate in U.S tourism sector. The firm has recently presented
catalogues and varied offers with an aim of augmenting attention of customers in the US
wine industry. The firm under management of Passalacquas has engaged strategic marketing
tools in order to evaluate the internal as well as external environment and improve learning
over varied benefits and disadvantages of vineyard.

11CONSULTING PROCESSES
References
Esty, B. C., & Saldutte, G. (2018). Sandlands Vineyards. HBS Strategy Case, 718-438.
Gilinsky Jr, A., Newton, S. K., Atkin, T. S., Santini, C., Cavicchi, A., Casas, A. R., &
Huertas, R. (2015). Perceived efficacy of sustainability strategies in the US, Italian,
and Spanish wine industries. International Journal of Wine Business Research.
Gilinsky, A., Newton, S. K., & Vega, R. F. (2016). Sustainability in the global wine industry:
Concepts and cases. Agriculture and agricultural science procedia, 8(1), 37-49.
Humphreys, A., & Carpenter, G. S. (2018). Status games: Market driving through social
influence in the US wine industry. Journal of Marketing, 82(5), 141-159.
Kelley, K., Hyde, J., & Bruwer, J. (2015). US wine consumer preferences for bottle
characteristics, back label extrinsic cues and wine composition. Asia Pacific Journal
of Marketing and Logistics.
Kelley, K., Hyde, J., & Bruwer, J. (2015). US wine consumer preferences for bottle
characteristics, back label extrinsic cues and wine composition. Asia Pacific Journal
of Marketing and Logistics.
Kelley, K., Hyde, J., & Bruwer, J. (2015). Usage rate segmentation: enriching the US wine
market profile. International Journal of Wine Research, 7(2015), 49-61.
Laszlo, C., & Zhexembayeva, N. (2017). Embedded sustainability: The next big competitive
advantage. Routledge.
Mobley, E. (2018). Why is star winemaker Tegan Passalacqua building a winery in Lodi?.
Retrieved 21 February 2020, from https://www.sfchronicle.com/wine/article/Why-is-
star-winemaker-Tegan-Passalacqua-building-12926767.php

12CONSULTING PROCESSES
Morrison, A., & Rabellotti, R. (2017). Gradual catch up and enduring leadership in the global
wine industry. Research Policy, 46(2), 417-430.
Muscio, A., Nardone, G., & Stasi, A. (2017). How does the search for knowledge drive firms’
eco-innovation? Evidence from the wine industry. Industry and Innovation, 24(3),
298-320.
Newton, S. K., Gilinsky Jr, A., & Jordan, D. (2015). Differentiation strategies and winery
financial performance: An empirical investigation. Wine Economics and Policy, 4(2),
88-97.
Rendleman, C. M., Hoemmen, G. A., Altman, I., Taylor, B., Moon, W., & Smith, S. (2016).
Wine industry competitiveness: a survey of the Shawnee Hills American Viticultural
Area. Wine Economics and Policy, 5(1), 4-13.
Taplin, I. M. (2015). The modern American wine industry: Market formation and growth in
North Carolina. Routledge.
Thach, L., & Olsen, J. (2015). Profiling the high frequency wine consumer by price
segmentation in the US market. Wine Economics and Policy, 4(1), 53-59.
Thach, L., Lease, T., & Barton, M. (2016). Exploring the impact of social media practices on
wine sales in US wineries. Journal of Direct, Data and Digital Marketing
Practice, 17(4), 272-283.
Villanueva, E. C., Castillo-Valero, J. S., & García-Cortijo, M. (2015). Who is drinking wine
in the United States? The demographic and socio-economic profile of US wine
consumers (1972-2012). International Food and Agribusiness Management
Review, 18(1030-2016-83073), 39-60.
Vin, v. (2020). Sandlands. Retrieved 21 February 2020, from
https://www.sandlandsvineyards.com/

13CONSULTING PROCESSES