Question
Karen owns a winery in Italy, called the Cinque Winery. In 2021, Cinque produced and sold 3,000 cases (with 12 bottles each) of her trademark
Karen owns a winery in Italy, called the Cinque Winery. In 2021, Cinque produced and sold 3,000 cases (with 12 bottles each) of her trademark and only wine, White wine, at a cost of $7.42 per bottle and a retail of $15.00 per bottle. She sells White wine via a direct-to-consumer channel via her website, as well as in her winery gift shop. Sales of Cinques chardonnay, White wine, have been declining from 2018 to 2021, so Karen would like to find data-driven ways to improve her sales. In spite of this decline in the sales of White wine, Karen is hopeful that she can improve the winerys overall revenue by implementing a couple of different strategies, highlighted below. Strategy 1: Improve Revenue via Product Line Extension As a strategy to improve the companys position, Karen and her leadership team have ideated around the idea of producing a second wine. They have had several meetings and have discussed which varietal of wine makes the most sense. Karen wants to make sure that, if they move forward with producing a second wine, they will have selected the right wine based on data. That is, one that has the greatest potential for achieving a high Wine Enthusiast score and which commands a good price. Karen has asked you to analyze a data set that represents reviews on the Wine Enthusiast website from 2017 - 2020. 1 Karen got this data set by contracting a data expert who scraped the review data from the Wine Enthusiast website. Karen believes the data she acquired from the Wine Enthusiast website is a good match for her business questions. Of course, it doesnt represent all wines available in the marketplace, but since she wants to create a wine that scores a rating of 80 or higher, she thinks that this is a great set of sample data which fairly represents overall opinions about wine. Based on this data, she hopes to create a high scoring wine and use that as a marketing tool. Karen is only interested in research based on Italian wines, since she cant compare well with wines from other countries. this assumption is reasonable, given that she cant duplicate the qualities of a Spanish or French wine for example.
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