In the US wine industry, Casella Wines created Yellow Tail, a new wine that broke away from competition and created a new market. They did not simply offer wine as an expensive drink but rather as a ‘social drink available to all kinds of drinkers and consumers: cocktail, beer and other drinkers of non-wine beverages. In Just two years, Yellow Tail became the quickest growing brand in the histories of Australian and U. S. wine industries and is the most imported wine in the U.
S. Yellow Tail surpassed its big competitors without campaigning, big broadcasting or major advertising.
Other large wine businesses, on the other hand, took years of investment and advertising to create well-established brands. It not only took customers away from competitors but also expanded the market with more than 6 million new customers that consisted of non-wine drinkers (beer and cocktail drinkers). Furthermore, new wine consumers began to drink on a more regular basis and ‘luxurious’ wine consumers started drinking Yellow Tail.
Casella Wines developed new features in the U. S. wine industry by looking at the substitutes of beer and cocktails and looking at non-customer’s point of view.
It created a wine that was easily selectable by anyone, along with being fun and adventurous. The wine company fgured out that the majority of Americans turned down wine due to the fact that they couldn’t appreciate its alternative taste. For instance, beer and cocktails were sweetened and easier to drink. As a result, Yellow Tail emerged as a completely new category that combined some wine characteristics with a simple structure.
It was instantaneously attractive to alcohol drinkers as a whole. It tasted soft and had strong flavors, with hints of fruitiness, allowing consumers to enjoy more than one glass of wine.
This resulted in a simple wine that could be appreciated by anyone. Along with its sweet fruity flavor, Yellow Tail differed from other wines by getting rid of many features that were commonly competed on, including the need for ageing. This in turn reduced the working capital needed and created faster returns for the wines created. Although Yellow Tail was dramatically criticized by the wine industry for its fruity taste, which apparently lowered the quality and proper appreciation for wine, its sales spoke otherwise. In the U. S. , consumers felt overwhelmed and intimidated by the wide variety of wines offered.
The wine bottles all resembled each other, the labels explaining how the wines were made was only understandable by experienced wine buyers, and the wide variety of wines from which to select was so wide that the sellers were equally disadvantaged in helping and recommending wines to customers. Yellow Tail fixed these problems by reducing the selection of wine offered. It developed only two types of wine: Chardonnay (a white wine) and Shiraz (a red wine). Their labels are consumer friendly and uncomplicated because they carry a simple design, which is a brand rather than an explanation about the rapes, soil, or aging process, used.
They are prominent and striking ones presenting bright cultured Australian wallabies (kangaroo) on black backgrounds. They create an eye-catching display for wine. Moreover, simply offering two wines from the beginning (a red and a white) gave Casella Wines a quick start. It allowed them to offer both wines in the same shaped bottles, which simplified manufacturing and industry around the world was pleased to provide a new distilled drink. The appealing packaging, combined with the decent quality of the wines and the low rice ($7), proved to be a masterstroke.
Undeniably, the strategies used by the big wine companies in the industry were targeted for the higher income bracket consumers, with billions invested in marketing and branding. However, by regarding the non-consumers, Yellow Tail discovered that this exclusive picture did not appeal and apply to the main population, who found it unapproachable. Yellow Tail thus moved away from this image and shaped a personality that reflected the Australian culture: boldness, adventure and fun, Just like the bottles and striking labels themselves.