Fosters was facing a common management problem: that of harnessing its portfolio of Beringer California Collection wines to increase profitability, improve its competitive position, and defend against a disruptive new entrant in the U.S. wine market called Yellow Tail. The normal response would be for Fosters to consider lowering price to maintain share and volume.
However through the intelligent use of data analytics Ashish Sinha demonstrated that a combination of price increase together with the introduction of a volume-flanker product in a new channel would improve profits, increase revenue, and protect and enhance market share. It also managed to play an important role in deposing the market share leader, Yellow Tail, from its dominant position. Ashish will also provide examples of other companies where this approach has been successfully implemented and discuss some avenues for future research.
Ashish Sinha, Head, School of Marketing, UNSW