JULY

7, 2019

MARKETING PLAN
E.J. GALLO’S BEAR FLAG ZINFANDEL

PRESENTED BY: CASSIDY NURNBERGER, EMILY HOUSEY, SOPHIA MOLINA

E.J. GALLO BEAR FLAG ZINFANDEL

 MARKETING PLAN
I Company Description

II Business Mission

III Marketing Objective

IV Situation Analysis

Industry Analysis
SWOT Analysis

V Marketing Strategy

Target Market Strategy

Marketing Mix
Product
Promotion
Place/Distribution
Price

July 7, 2019 MarkeHng Plan 1


I Company Description
Structured and full-bodied, Bear Flag
Zinfandel is an ultra-premium dark
wine that is explodes with fresh
blueberries and ripe blackberry jam
complimented by baking spices that
give this wine its bold taste and
lingering finish. Sourced in the
iconic vineyards of Sonoma,
California, Bear Flag Zinfandel is
composed of the most renowned
berries in the Dry Creek Valley area.
Dry Creek Valley is one of the best
growing areas in California due to its
contrasting weather of daytime heat
and cool nights enable Zinfandel’s
berries and spices to mature and
blend together giving the wine its
bold complexity that is unique to the
Sonoma region.
The origins of Bear Flag
Zinfandel represent the bold,
rebellious, and independent spirit of
California. Bear Flag Zinfandel
draws its name from the historic
Bear Flag Revolt in 1846. With
hopes of a bright future and
prosperous land, American settlers
made their way to Sonoma,
California, but was quickly faced
with tyranny and oppression from a
Mexican government. An American
rebellion arose from the courageous
spirits of the settlers as they
established a government that
embodied freedom and liberty. On
June 14 ,1846, the American settlers
won the battle of independence
against the Mexican government,
and raised the Bear Flag in the Town
Square of Sonoma, California where
the Zinfandel is grown and crafted. It
is the bold, rebellious spirits of the
American settlers that still exist
today that inspired this wine.
E.J. Gallo remains a family-
owned winery that is the leader in
the United States wine industry and
leading winery in California. With
the Bear Flag Zinfandel launch, E.J.
Gallo will continue to impress wine
enthusiasts with its flavors
reminiscent of a blueberry pie. With
the highest growth rate among all red
ultra-premium wines, Bear Flag
Zinfandel remains popular among its
consistent consumer audience for
ultra-premium wine. The wine shows
accelerated growth each year making
it very popular, however just because
the wine is rooted in California
doesn’t mean its audience remains
there. The Zinfandel is nationally
relevant across the country, and
globally for its unique character and
high-quality wine.
Bear Flag Zinfandel inspires
an independent spirit who isn’t afraid
to defy the odds, and has the taste to
dream big and never wastes a drop.
Bear Flag Zinfandel offers an escape
from reality with each rebellious and
bold sip with its fruity, but rustic
lingering taste. Inspired by the brave
souls of the Bear Flag Revolt in
1846, this wine holds tribute to the
kindred souls who love a quality
tasting wine. We stand for the right
to raise the flag in honor of the ones
who are bold, rebellious, and
independent. Bear Flag Zinfandel is
forever independent and forever
enduring and forever in your heart.
 II Business Mission
Inspired by the brave souls of the
Bear Flag Revolt, we celebrate the
kindred spirits who stand their
ground, have the good taste to dream
big, and never waste a drop. We
stand for the right to raise a flag in
honor of your unique place in the
world, whether that’s a patch of
untamed territory or an enduring
point of view. E.J. Gallo’s goals for
Bear Flag Zinfandel is to offer
quality, unique wine that enhances
enjoyment by instilling California
culture and heritage all while
maintaining to be the leading ultra-
premium in the wine industry. Bear
Flag Zinfandel provides the
consumer with quality taste by
combining fruity jams with a smokey
lingering finish that sets them apart
from their competitors. With the
launching of Bear Flag Zinfandel,
the wine will bring success to the
company through its loyal
customers, consistent growth, and
nationally relevant brand. The
company’s commitment to providing
the consumer with a quality wine
comes from the history of their name
which is inspired by the men who
fought for their independence and
defined what it means to be an
independent spirit that is forever
enduring.
III Marketing Objective
The marketing objective of Bear
Flag Zinfandel is to establish a brand
of Ultra-Premium Dark Wine that
also supports American nationalism.
While based in California, Bear Flag
Zinfandel will establish a domestic
July 7, 2019 MarkeHng Plan 1
market, with little focus on the
global marketplace. With a focus on
advertising national pride, Bear Flag
Zinfandel looks to isolate the
domestically grown and operated
wine market. In order for this to
work successfully, we have to make
customers aware that you don’t need
to go to Italy for a fine glass of wine,
and that we can reduce prices with
rates lower than foreign countries
that have to deal with tariffs and
increased shipping costs.
IV Situation Analysis
Industry Analysis:
Bear Flag Zinfandel head
winemaker Aaron Piotter is a native
to Sonoma, California making him
have a deep connection to providing
the best tasting wine at a fair and
reasonable price. California’s
persistent heat and cooler nights give
Zinfandel a unique taste only parts of
California vineyards can achieve.
Piotter’s experience in over twenty
vintages in the vineyards of
California has proved he understands
the dynamic growing region and
what it takes to craft a truly authentic
California Zinfandel. Zinfandel is
often thought of as California’s
flagship grape. Aaron helped Bear
Flag claim new territory leading to
new wines such as Cabernet
Sauvignon and a Eureka! Red
Blend.
SWOT Analysis:
Strengths
• Packaging: Ink that is made
with 10% real gold applied to
the bottle; creating a luxury
stand-out package reinforcing
high quality.
 Awards & Accolades: Scored
• droughts, wildfire, floods, or
95 points on a Zinfandel earthquakes.
wine. The E&J Gallo • New Technology: Other companies
Winery’s first 90-point could find new ways to harvest
score. Since 1998, nearly grapes indoors, so the outside
30% of Gallo’s scores on climate would not have an effect on
Zinfandel have been 90 their productions.
points or higher. • Liability: If employees break laws
• Resources: Wine that is only regarding serving minors or
produced in the Golden State, inebriated individuals legal action
specifically Sonoma County. may follow. The company could then
Giving the company a see negative consumer reactions due
competitive advantage. to bad publicity.
Weaknesses:
• Niche Brand: The company V Marketing Strategy
is only catering to consumers
interested in the origin and Target Market Strategy
branding. Such as people
E.J. Gallo’s Bear Flag Zinfandel,
native to California and its
drawing its name from the Bear Flag
history of independence.
Revolt, is a reputable brand that is
• Expensive Price: Targets a
very much aware of the marketplace
smaller market, only
and on how to be as efficient as
capturing high income
possible in the wine industry. With
consumers.
great understanding of their target
• Small Market: Rooted in
market, Bear Flag Zinfandel relates
California, not much room
to men and women who are
for growth. Smallest growth
rebellious, bold, and a free-spirit.
in the northwest region.
Being an ultra-premium wine, Bear
Opportunities:
Flag Zinfandel is targeted to the
• Expand Market: To a global level
high-income consumers who have
giving company higher revenue. Can
more purchasing power and who
also hire another wine maker to
appreciate a quality wine and are not
collaborate and expand ideas with
price driven, but remain loyal to the
Aaron.
unique taste of a Zinfandel. Bear
• Release Cheaper Products: This will
Flag Zinfandel is dedicated in
help grow the market size and reach
maintaining relationships with their
to different consumers.
loyal customers, as well as creating
• Release temporary seasonal
new relationships with the next
products: Take advantage of
independent, rebellious soul who
California’s seasons and make
isn’t afraid to stand their ground and
different wines.
doesn’t waste a drop.
Threats:
Geographically, Bear Flag
• Environment: The climate is
Zinfandel’s sales plan and marketing
constantly changing and becoming
efforts will be prominently targeted
unstable; could lead vineyards to
in the United States. With its
emphasis on the state and history of

July 7, 2019 MarkeHng Plan 2

 California, the brand name itself will
attract the psychographics of people
who reside in California or have an
emotional connection.
Marketing Mix
Product
Not only is Bear Flag Wine selling
Zinfandel, Cabernet Sauvignon and
Redblend but also the California
heritage.
Zinfandel - Structured and full-
bodied, Bear Flag Zinfandel has
spicy character complemented by
jammy, dark fruit flavors reminiscent
of blueberry pie. Notes of toasted
oak and vanilla combine to create a
plush mouthfeel and lingering finish.
Cabernet Sauvignon - Packed with
an abundance of fruit character, Bear
Flag Cabernet Sauvignon opens with
notes of black raspberries, red cherry
jam and dried fruit. Silky smooth on
your tongue, things get interesting
when subtle layers of clove, cedar,
luscious butterscotch and cocoa kick
in.
Red Blend - Blending the best bold
California reds, Bear Flag Eureka!
Red Blend delivers notes of ripe
plum and boysenberry jam one
moment and hints of graham
crackers and milk chocolate the next.
Abundant hints of complex spices
and a tease of candied orange zest
lend a hand in putting this plush red
blend in a category of its own.
Place / Distribution
In order to maintain and
communicate Bear Flag’s high-end
reputation, an on premise oriented
July 7, 2019 MarkeHng Plan 3
marketing strategy must be in place.
Consumers see a higher value in
wine introduced to them at
restaurants instead of a local grocery
store shelf or common liquor store.
On-Premise Marketing
1. Mimic and create a benchmark of
restaurants, high end wineries and
sophisticated retail options based off
of a like brand such as Prisoner.
Prisoner being one of the most
credible red wines in the country for
the past ten years has concrete
networking and distribution factors.
Off - Premise
1. Customers only believe the worth of
a product by how much you believe
it's worth. Under selling Bear Flag to
increase sales and placement will
result in a communal understanding
of low worth. To keep the high
standards of Bear Flag while
simultaneously being accessible to
the public. The off-premise strategy
must reflect the company’s value.
Bear Flag must be displayed in
Zinfandel, Cabernet Sauvignon and
Redblend fine wine sections.
Criteria:
• Double facing bottles in order
to gain more attention and
stand out.
• Placement on the shelves at
the target market eye level.
Bear Flag targets women and
as a result the position of the
product should be at a 5’5
eye level.
• Pricing should be visibly
displayed when in the fine
wine sections. Creating
separate more intricate
displays should not include
store pricing tools. Bear Flag
must provide aesthetically
pleasing and color
 complimenting price
advertising in order to
correlate with the
sophistication of the brand.
• Fine wine display options:
o Wood barrels
o Metal rack
o Wooden display
boxes
Constellation Brands 2018
Promotion
Bear Flag is a proud California brand
and needs to embrace its image in its
home state and captivate others.
Promotion strategies should revolve
around the values of the pioneer
spirit, California Constitution, and
the gold rush in which its colors
reflect.
1. Advertising
Current video advertising as
seen on the website has a
very masculine connection.
In order to appeal more to its
target demographic as well as
the sophisticated appearance,
Bear Flag should focus on the
aspect of gold. This could use
the concept of gold diggers or
emphasis the rich lifestyle
implementing gold which
will attract celebrities which
reside in California in turn
free advertising.
In the wine industry, a by the
glass (BTG) premise has
proven to be more successful
than commercials. Customers
at restaurants believe they are
getting a better deal with a
single glass but also turns a
higher profit for Bear Flag.
Internal Tools:
Create staff
incentives in restaurants for selling more
Bear Flag.
July 7, 2019 MarkeHng Plan 4
Create Gallo
sales team incentives for selling more cases.
2. Point value
Point values have high traction in the
wine industry and are very appealing
to consumers knowledgeable on
wine. With Bear Flags high end
appearance and promotion point
values will appeal to consumers.
3. Organic social media campaign
Social media is notoriously known as
the best way to reach customers and
to advertise brands. Bear Flag Wine
has a few trending hashtags but it’s
Instagram presence is limited to
those under the age of 21. With the
understanding that underage drinking
is a huge liability, this will also lose
potential customers for when they do
turn 21. This is a red flag and a
limitation for marketing.
The three highest profiles with the
best reach are Instagram, Facebook
and Snapchat. The Instagram
account should contain an
engagement platform for consumers
replicating brands such as Veuve
Clicquot. Content should be
aesthetically pleasing and create an
aesthetic with clean gold and black
accents. Engagement will include
reposting images of other customers
with Bear Flag on Instagram and
Facebook stories to encourage the
common need for social media users
to be relevant and seen.
4. Events
The largest music festival in
America is Coachella in California.
Coachella is known for its celebrity
appearances both on stage and in the
crowd. Advertising campaigns and
sponsorships will inevitably attract
the women target demographic along
with celebrities. Other event
opportunities include: fashion shows,
 sporting events, gala appearances
and YouTube conventions.

Price

1. Consistency
Bear Flag currently has inconsistent
pricing which fluctuates between $20
to $30. Creating a concrete price
point with eliminate skepticism
among distributors and consumers.
The pricing should be level at $28 or
higher if the company decides to stay
in that range. However, according
the benchmark approach, Prisoner
sells consistently between $45 to $50
a bottle. This also circulates back to
the psychology that people will
believe Bear Flag is high end if the
company’s actions reflect it.
2. BTG
The best strategy for Bear Flag and
any wine is to sell at restaurants by
the glass. This creates the illusion
that the customer will be paying less
but in turn drinking and paying for
more. With the ratio of 6 glasses to a
bottle. A standard price point of $12
a glass will inevitably create the net
profit of $72 per bottle instead
of $28.

Constellation Brands 2018

July 7, 2019 MarkeHng Plan 5