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Author(s)

Alice M. Tybout

Patrick Bennett

Brie Koenigs

In 2005, a wine snob in the critically acclaimed movie Sideways denounced merlot. Subsequently, sales of merlot, including sales for Terlato’s Rutherford Hill merlot, declined significantly. Students are asked to evaluate three strategies—rebranding, cutting price, and launching television advertising—that Terlato is considering to reverse this decline.

The learning objective of the case is for students to explore the challenge of managing a brand when external factors cause a decline in category demand. They also explore the role of pricing and advertising in managing a small luxury brand.

The case should be used with Student Supplement: Terlato Wines International: Background Note on the U.S. Wine Market and Terlato Wines International, Case #5-108-002.

Date Published: 01/01/2008
Discipline: Marketing
Key Concepts: Brand Management, Advertising and Luxury Brands, Pricing Strategy.
Citations: Tybout, Alice M., Patrick Bennett, Brie Koenigs. Terlato Wines International: Managing Rutherford Hill Merlot in a Post-Sideways Market. 5-108-001 (KEL357).