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how do i calculate world wide cabo projected growth First, it is necessary to know certain basic data: a box of wine -or 'case', in

how do i calculate world wide cabo projected growth

First, it is necessary to know certain basic data: a box of wine -or 'case', in English- in the export context, corresponds to 12 750cc bottles, thus completing 9 liters of wine. On the other hand, the price of each bottle at the retail and wholesale level is determined by a series of factors, such as the type of grape, the country of origin, the microclimate of the area in which it is produced, the technique of fermentation / creation of wine, barrels where it is stored, among others.

It becomes important, in this type of case, to analyze in monetary terms what each one of the projections granted by the distributors means. we proceeded to analyze each of the proposals and to value them, in order to take them to monetary terms.

The first importer / distributor, World Wine Importers, proposes a positioning proposal of "value for money", that is, a product that offers a good quality at an accessible price. The projection of the company reaches 40,000 boxes the first year, going to 120,000 in the third year; with a suggested price between $ 7.99 and $ 10.99 (it is assumed for varietal and for reserve, respectively); with a mix of 70% varietals and 30% reserve wines. It is important to highlight that, according to the text associated with the case, this company is one of the distributors with the highest growth in the segment of high-end wines and liquors and income of around 200 million dollars, which provides a great background with respect to to the seriousness and professionalism of his service.

On the other hand, the second importer / distributor, Cabo Import, proposes a different positioning proposal, appealing to the quality of MontGras wines and thinking that the brand, if better positioned, could increase its price and thus obtain a greater margin of profit per unit sold. The projection corresponds to 25,000 boxes for the first year, passing to 60,000 boxes for the third year; with a suggested price between $ 7.99 and $ 14.99 (it is assumed for varietal and for reserve, respectively); with a mix of 40% varietals and 60% reserve wines. Simultaneously, the brand also shows interest in positioning the premium variety of MontGras, the Ninqun, with a suggested price of $ 24.99 and forecasts 1,500 boxes sold in the second year. Likewise, the company proposes that MontGras have a person in charge of promoting the brand within the US market, which would be in charge of being the visible face of the brand within the country, as well as who should organize tastings and, in general, generate a greater diffusion and a better positioning of the brand in the United States. That initiative has a projected cost of $ 120,000 per year.

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