Yellow Tails Strategic Planning

Introduction
In the contemporary highly competitive business setting, all organizations are in direct intense rivalry with each other through different business approaches. Nonetheless, a small number of these organizations have the capacity to sustain themselves in the marketplace. Interestingly, it is presently conceivable to compete with rivals in the prevailing market and not satisfy the acknowledged, prevalent demand. In this regard, the competition becomes immaterial as the organization generates an unchallenged market space and also creates and seizes new demand. Basically, this implies getting into a market devoid of the fear of decreasing product or service demand as well as not facing the intense competition that is existing. The purpose of this report is to conduct a comprehensive analysis that delineates the success accomplished by Yellow Tail within the wine industry and how the organization carried it out through such an approach.
Situational Analysis
Yellow tail is a wine brand constituted in Casella Wines. Through the blue ocean strategy, Yellow Tail, in a span of three years subsequent to entering the American Market came to be the fastest growing and developing brand of wine in the history of the nation. To elaborate, when there is restricted scope and capacity for growth and development, organizations attempt to seek opportunities for obtaining new business where they can revel in market share that is unchallenged, also referred to as Blue Ocean. In delineation, a blue ocean comes about when there is the prospect for greater profits as a result of the lack of competition or having extraneous competition. Taking this into consideration, Yellow Tail deserted and cast aside the customary emphasis on high-status vineyards and wine aging. Moreover, they discarded the intricate jargon that is usually perceived on bottles of wine, which can in fact be daunting for prospective consumers. Yellow Tail ceased being in direct competition with the key and prominent players in the American wine market. Rather, they generated a new marketplace of their own. They sought after non-consumers and lay emphasis on the generation of demand instead of satisfying the prevailing one in the market. As a result, through the blue ocean strategy, Yellow Tail came up with a drink that was dissimilar to the common wines within the market in being considerably sweeter. This new product offering was appealing to the multitudes as a result seized demand from not only wine enthusiasts but also beer and spirit lovers. In addition, Yellow Tail created a simple product diversification for consumers by having red sweet wine and white sweet wine only (Teeter, 2015).
A key aspect of Yellow Tail’s success encompassed the branding of the product as well as the packaging and marketing. Aside from rendering top-notch wine flavor, Yellow Tail endeavored to make a distinction of its product to prevailing ones through its packaging. Before Yellow Tail unveiled its products in the market, a great deal of packaging in the wine business was considerably customary and numerous consumers often pointed out that it was difficult to recall the precise wine bottle they had reveled in subsequent to drinking it. So as to come up with a solution to this particular problem and be noticeable, Yellow Tail came up with packaging that had a bright yellow wallaby positioned exactly in the middle of its label. It also included bars that had neon colors in order to make a distinction of the different varieties of grapes included in the wine. For instance, if the consumer was delighted with Shiraz, then it meant the bottle bought was the one with the yellow packaging. If the bottle had an orange packaging, then it was Merlot whereas the red packaging was the Cabernet Sauvignon.
The success enjoyed by Yellow Tail was entirely planned and by designed taking into account the accessibility, the profiles of the different flavors of the product offerings, as well as market dominance. In particular, the success of this brand was centered on attracting customers that were not very well acquainted into the product offering that is wine, and instantaneously rendering a profile of various flavors that they loved and enjoyed. This particular profile facilitated the Yellow Tail brand to accomplish its repute of being one of the quickest growing brands of all time. Notably, subsequent to such remarkable success came businesses that endeavored to imitate the same approach so as to accomplish the similar level of success. Numerous copycats came into play, however, experiencing contrasting levels of success. As pointed out, one of the key distinguishing factors of Yellow Tail as it unveiled its product in the market was the inclusion of an animal in its packaging. Subsequently, numerous companies followed suit and the market was filled with products branded with different animals. However, the implication of this is that numerous wine producers dashed to compete in the low-cost wine category that had been enjoyed by Yellow Tail. This had a negative influence on the perception several consumers had for the wines of the nation and therefore were considered to be cheap wine that consumers started to detest and therefore the copycats failed to enjoy similar success.
Recommendations
The following is an action plan delineating the different actions that ought to be undertaken by the business together with the different timelines in which such actions should be carried out. Yellow Tail has without doubt experienced success and is deemed to be the fasted growing brand in history. However, there are shortcomings to this regard. One of the key recommendations is to understand that what was functional and effective for Yellow Tail will not be the same for all other wine companies in the industries. The downside of charting the Yellow Tail path is that the company brand will be associated to cheapness and frivolity. The low-cost pricing model applied in Yellow Tail’s strategy is not applicable for the corporation. This is largely for the reason that aging and the wine process is a costly process and therefore the company cannot afford to price its wine product offerings at $10 or less. This implies positioning the product to the consumers and target market that resonates with the product offering. Secondly, through the blue ocean strategy, the company is positioned to supply solely one end of the market that has one kind of consumer. The downside of this is that the company is not able to have diversity in its consumer base, which limits its growth potential in the prospective future. It is recommended for the company to take into consideration embracing a wider and more diverse consumer bracket, which takes into account not only high-priced but also low-priced product offerings for consumers. Most of all, it is recommended that the company ought to add consumer value through enhancement of quality and decreasing the overall cost incurred by the business in addition to having fast product and service delivery.
Conclusion
The blue ocean strategy makes it possible for a business to generate its own demand, compete in a different market and generate increased revenues. Through the application of this particular approach, the company will be able to not only have a distinctive product offering compared to other players in the industry, but will also be able to deal with consumers that have no service and are under-serviced. The actions recommended take into account laying emphasis on obtaining new consumers so as to generate new markets, creating new demand and opening the new markets. These markets ought to lack product offerings and services to be rendered or have an inadequacy or shortcoming. Moreover, it is recommended for the company to add value through quality and decrease the cost all at the same time. The proposed plan of action is purposed to enhance the position of the company in increasing its consumer demand, increasing its market share and generating greater revenue.



References
Teeter, A. (2015). The yellow tail story: how two families turned Australia into America’s biggest wine brand. Vinepair.