DOS HEMISFERIOS: REBRANDING STRATEGY for a NASCENT ECUADORIAN WINE MARKET

In August 2019, a pivotal moment unfolded that laid the groundwork for a significant endeavor. Robert Wright, President of the Ecuadorian winery Dos Hemisferios, sat at his desk in Guayaquil and answered an incoming call from his father, Guillermo Wright, the Founder and General Manager of Dos Hemisferios. They were working on a rebranding proposal for the winery and wanted to review it again before their presentation to the board later that week.

In recent years, Dos Hemisferios experienced a 50% increase in wine production and sales in the Ecuadorian market (“El vino local,” 2017). However, the company had not yet become profitable and aimed to boost sales through rebranding and marketing efforts. During their hour-long discussion, Robert and Guillermo went over key details of the proposal and considered potential questions that might arise.

Robert felt confident that the rebranding would address the concerns raised during the April board meeting. He remarked to Guillermo,

"Remember, the rebranding is important so that we increase sales. It’s an action that we’re doing because we strongly believe that people, in general in the Ecuadorian wine market, don’t really know about wine. So one of the things customers do is go by the feel of labels, right? So, we’ve decided to be more specific and thorough in terms of what each of our brands represents, its archetypes, and who it’s going to be sold to.

And at the same time, the label should be associated with each brand persona and brand archetype. So, in my perspective, it’s part of the strategy to increase sales."

Guillermo agreed, and then they decided to take a break and reconvene later that afternoon to go over the proposal in more depth.

DOS HEMISFERIOS BACKGROUND

In 1999, Guillermo established Dos Hemisferios after acquiring 360 hectares (1.39 square miles) of land in San Miguel del Morro, near the coast of Guayaquil. Exhibit 1 shows a map indicating the approximate location of the vineyard and winery. The first wine produced was called Paradoja, a blend of Cabernet Sauvignon and Malbec. The name “Paradoja,” which meant “paradox” in Spanish, was chosen because producing wine in Ecuador presented a real paradox due to the challenging climate. Guillermo noted, “The grape requires four seasons, and Ecuador does not have them. That is the obstacle to achieving good wine, according to the theory. But we have broken the paradigm” (“‘Petróleo’ en el paladar,” 2016). Fortunately, the soil in the vineyard was excellent, and climate challenges were managed by experts. The region’s dry climate allowed the plants to yield good grape harvests twice a year, in July and December (“El vino local,” 2017).

Exhibit 1.Map of Ecuador

Source: JRC, EC (n.d.)
Note: Bodega Dos Hemisferios location added by authors.

The winery’s Argentine winemaker, Abel Furlán, entered a bottle of Dos Hemisferios in the 2009 IX International Wine Contest, a prestigious competition held in Mendoza, Argentina. To the surprise of the judges, the Ecuadorian wine won a gold medal in a blind tasting (“‘Petróleo’ en el.”, 2016). Following this success, Dos Hemisferios began to produce more wines and introduced new brands, including Bruma, a cabernet sauvignon-merlot blend, in 2007, and Enigma, a chardonnay, in 2008. This was followed by Del Morro, another cabernet sauvignon, in 2008, and Travesía, which meant “voyage” in Spanish.

In 2014, the winery expanded its production and planted 38 hectares of grapes. Dos Hemisferios wines continued to receive international recognition, winning awards at competitions in London and China in 2015 and 2017, respectively (“El vino local,” 2017; “‘Petróleo’ en el paladar,” 2016). In 2017, Dos Hemisferios opened a new production facility and warehouse in San Miguel del Morro to enhance the production of the five wines in their collection. The new facility increased its capacity to produce 500,000 bottles per year.

This expansion was bolstered by the leadership of Robert Wright. Robert, the President of Vinos Dos Hemisferios, was a multilingual professional with an impressive educational background, including an MBA from IDE Business School, an M.S. from Stanford University, and a B.S. from Georgia Tech. In addition to his educational achievements, he had substantial management experience across various industries.

Since 2003, Robert had also served as the CEO of Tracklink, a company that specialized in vehicle tracking technology and operated in four countries. In this role, he oversaw operations and logistics in both the U.S. and Latin America. Furthermore, Robert held the position of President at the Wellness Group Ecuador, a chain of gyms with locations in Quito, and was leading its expansion into Guayaquil.

THE ECUADORIAN WINE MARKET

The wine market in Ecuador was growing, which attracted imports from global wineries and intensified competition (R. Wright, pers. comm., 2019). Approximately 90% of the wines sold in Ecuador were imported from Argentina or Chile (“‘Petróleo’ en el paladar,” 2016). Both Chile and Argentina had established a reputation for producing high-quality wines. Additionally, tariffs on Chilean and Argentine imports were lower than those on wines from other regions, such as Europe, Australia, and the United States. Recently, the Ecuadorian government reduced tariffs on European wine imports, contributing to the increasing popularity of European wines. As a result, wine sales expanded nationwide in Ecuador. However, U.S. wines had seen little success in the market and held almost no market share in the country.

Large global wineries dominated the wine market share in Ecuador. Competitor wine offerings spanned a variety of prices, quality, and grape types. The market leaders included Chilean wineries such as Concha y Toro, Gato Negro, and Mancura, as well as Trapiche from Argentina and Peñasol from Spain, all of which held significant market share. The brands mentioned all had global recognition and rich histories. Chile, Spain, and Argentina represented countries known for producing high-quality wines. These international wineries possessed greater resources compared to Dos Hemisferios. For instance, they operated with larger budgets and invested significantly in research and development, sustainability, and technology (Centro de Investigacíon e Ínnovacíon, 2023). Exhibit 2 illustrates the market share of leading wine brands sold in Ecuador.

In Ecuador, the primary sales channel for wine was the self-service segment, which encompassed large retail chains as well as smaller retailers that sold alcohol and other consumer food items.

An example of a large retail chain in this segment was Supermaxi Supermarket and Grocery Store. Supermaxi operated throughout Ecuador and had international subsidiaries in several other South American countries (Corporación Favorita, 2020). Additionally, Supermaxi served as the best-selling channel for Dos Hemisferios. Detailed information on Dos Hemisferios’s sales through the Supermaxi supermarket chain, categorized by price segment, is presented in Exhibit 3.

Other significant sales channels for Dos Hemisferios included Hotels, Restaurants, and Cafés, collectively known as the HORECA sector.

The Quito Market

The wine market in Quito was the largest in Ecuador, accounting for 44% of all wine sales by volume. Furthermore, Quito was located in Pichincha Province, which was recognized by MINTUR as Ecuador’s top tourist destination. According to a study by Mario et al. (2018), 65.7% of foreign visitors to the country visited Pichincha Province. As a result, the Quito market was significant for Dos Hemisferios for multiple reasons. It not only had the highest market potential in Ecuador, but the company could also target foreign tourists as a key customer segment.

According to company data, the average monthly revenue from May 2018 to April 2019 was roughly $14,000 in the Quito HORECA channel. This included several large customers, such as Swissotel and Restaurante Zazu. However, data suggested significant upside potential.

Recognizing the growth opportunity in Quito, the company ambitiously aimed to boost total revenues to $50,000 per month. Financial information for the Quito market is provided below. Exhibit 4 shows the total revenues per month in Quito. Exhibit 5 demonstrates a breakdown of revenues within the HORECA sector.

Exhibit 4.Quito Monthly Revenue (May 2018 to April 2019)

Source: Adapted from Dos Hemisferios (2019a)

Exhibit 5.Quito HORECA Annual Revenue

Source: Adapted from Dos Hemisferios (2019a) Note. Stores include several markets and bakeries.

To gain a deeper understanding of the market and develop effective strategies, MBA students conducted a field study focused on the Quito HORECA sector. Through in-person interviews, the following insights were gathered:

• 40% of the surveyed restaurants, bars, hotels, and cafés were unaware of the existence of Ecuadorian wines.

• 20% of those surveyed expressed an unwillingness to try the Dos Hemisferios brand (Shaw et al., 2019).

The results revealed a lack of awareness about Ecuadorian wines in the HORECA sector. This observation aligned with the concerns previously expressed by Robert and his team regarding the negative perceptions surrounding these wines.

Additionally, the MBA team distributed a questionnaire to Ecuadorians to assess their wine consumption habits, which yielded some intriguing results:

• 76% of respondents reported that they loved drinking wine.

• 54% indicated they had no prior experience with Ecuadorian wines.

• Quality was prioritized by 42% of participants, while 18% emphasized the importance of origin in their wine selection.

• Notably, 66% expressed interest in joining an Ecuadorian wine membership or club (Shaw et al., 2019).

The questionnaire also asked participants to identify the most important factors when choosing wine. The results, presented in Exhibit 6 by age group, revealed that quality and origin were the primary considerations, whereas brand and design (e.g., labeling) held less significance.

Exhibit 6.Wine Purchase Factors for Ecuadorians

Source: Adapted from Shaw et al. (2019)

Overall, the evidence supported the need to increase brand awareness through consumer education and marketing. This could be achieved by partnering with restaurants and hotels to host various wine-tasting and pairing events, communication through social media, establishing a robust wine club membership, or other marketing tactics.

BRANDING AND SEGMENTATION IN THE WINE INDUSTRY

Branding, consumer segmentation, and pricing segmentation played a crucial role in shaping customer perceptions and influencing their behavior in the wine industry. Multiple studies provided meaningful insights into the strategies and techniques that wineries used in this area. For example, Bruwer and Johnson (2010) examined place-based marketing and regional branding. They showed that regional cues could affect consumer judgment of wine labels, especially among customers who were highly engaged with wine products. This emphasized the importance of customization of branding strategies. Similar results were found in a study of the Australian wine industry with over 16,000 brands, which investigated the role of regional branding in differentiation (Rasmussen & Lockshin, 1999).

Another study by Vrontis and Paliwoda (2008) showed the need for innovation and rebranding. This study highlighted the importance of product improvement, promotion, labeling, and collaboration among wineries to conduct a successful rebranding initiative. Quality signals, international awards, and professional image-building were mentioned as factors affecting branding efforts (Vlachvei et al., 2012). This supported the notion that a successful branding strategy should incorporate various elements holistically.

Thach and Olsen (2015) and Szolnoki and Hoffmann (2014) studied consumer segmentation in the wine market in the United States and Germany. Thatch and Olson stressed the importance of price segmentation by categorizing customers into high, medium, and low spenders. They highlighted the need for customized promotional campaigns for each customer segment. Similarly, Szolnoki and Hoffmann used sales channels for the segmentation of German wine consumers. They found significant socioeconomic and behavioral differences among these segments. This research emphasized the importance of a comprehensive knowledge of consumer behavior across different segments to customize the marketing strategies effectively.

Lastly, Cuellar and Claps (2013) found that factors such as brand, region, and wine ratings significantly influenced customers’ willingness to pay. They observed that less sophisticated wine consumers typically preferred lower-priced wines and were less aware of wine brands and ratings. However, well-known wine regions positively affected the purchasing decisions of these individuals. In contrast, more sophisticated wine consumers had a greater understanding of wine. As a result, wine brands and ratings had a positive impact on their willingness to pay.

The results of these studies aligned with the Dos Hemisferios President’s vision for enhancing value at Dos Hemisferios. Robert explained the significance of branding in the wine industry, particularly its influence at Dos Hemisferios:

“The branding I think, helps a lot in the wine industry. There are many reasons. I believe that it has been instrumental in the increase in sales, but it’s not in a vacuum. The branding needs to come with other actions we incorporate. Branding, with marketing, with the sales process, and with the experiences we are creating around our brands are very important for us.”

Rebranding Dos Hemisferios

In 2019, Dos Hemisferios undertook a comprehensive rebranding initiative. The company hired the renowned Argentine firm Pierini Partners, which specialized in branding and packaging. The objective was to create an image that captured the winery’s history and vision. Producing wine in Ecuador presented unique challenges due to the country’s soil, climate, and limited winemaking heritage. To address these challenges, they adopted the slogan “Lo imposible es posible,” meaning “the impossible is possible.”

This rebranding effort was partly driven by the negative perceptions surrounding Ecuadorian wines, which highlighted the need to revitalize the Dos Hemisferios brand and its wine labels. According to Vrontis and Paliwoda (2008), rebranding in the wine industry often demanded an innovative approach that integrated product improvements and promotional activities. Thus, this perspective aligned with Dos Hemisferios’s decision to refresh its labeling and messaging to combat negative perceptions surrounding Ecuadorian wines. Exhibit 7 illustrates the wine bottle labeling process.

Exhibit 7.Workers Labeling Bottles

Source: https://wp.doshemisferios.com/nam-blandit-tristique-neque-tincidunt-luctus/

Robert and his team were figuring out different ways to explain and market their products to educate and position the wines within and outside Ecuador. The rebranding was based primarily on intuition and feedback from customers. Robert explained:

“There’s a lot of gut feelings behind it. The only data-driven information that we have is percentage market share we have in sales at the supermarket and in terms of the size of each channel, and where we’re at, and what we need to get to in order to be profitable. So, that part is more data-driven in my perspective.”

Additionally, the basis for defining brand archetypes at Dos Hemisferios related to psychologist Carl Jung’s personality traits. Jungian brand archetypes had already been applied elsewhere in branding strategy. These archetypes defined patterns that resonated with people and guided their reasoning and actions. Consequently, brand personality was posited to influence consumer buying decisions (Bechter et al., 2016).

For Dos Hemisferios, this translated into creating an identity for each of the winery’s brands using images or concepts from the archetypes. Thus, each wine in the portfolio reflected unique attributes and personality traits (Renovación de Imagen, n.d.). Integrating Jungian archetypes into the branding framework provided a structured narrative to connect with diverse customer segments. This approach was also consistent with the concept of developing holistic brand narratives that differentiated a product in a crowded marketplace (Vlachvei et al., 2012; Vrontis & Paliwoda, 2008).

Before the rebranding, Dos Hemisferios had a core collection of five wines: Paradoja, Travesía, Bruma, Del Morro, and Enigma (see Exhibit 8). Many customers went by the labels when they made purchasing decisions. The initial plan included updating the wine label designs for each brand. Thus, new labels were under development (see Exhibit 9). The stories behind each wine aimed to appeal to target market segments based on customer profiles. Every single label was targeted to different segments and use categories. The Enigma label would change the least (R. Wright, pers. comm., 2019).

Exhibit 8.Dos Hemisferios Wine Collection in 2019

Source: Vitivimosa.com

Exhibit 9.Updated Dos Hemisferios Wine Collection in 2023

Source: Doshemisferios.com

Robert and his team intended to modify the Dos Hemisferios logo too. The purpose was to position higher quality Dos Hemisferios wines with a “Bodega Dos Hemisferios” branded logo. The Dos Hemisferio brand name (and logo) indicated that Ecuador was in two hemispheres or the middle of the world. Thus, the “Bodega Dos Hemisferios” stamp would only be placed on higher quality wines, such as Paradoja, Bruma, Enigma, etc. (R. Wright, pers. comm., 2023).

Although Ecuador was not traditionally recognized as a wine-producing region, Dos Hemisferios was utilizing its unique location at the ‘center of the world’ as a compelling part of its brand story. This approach aimed to differentiate it from established wine regions like Chile and Argentina. According to Bruwer and Johnson (2010), place-based cues were an important factor in shaping consumer perceptions. Exhibit 10 displays a sample premium wine label with the “Bodega Dos Hemisferios” name and logo.

Exhibit 10.Dos Hemisferios Label with “Bodega Dos Hemisferios” Logo

Source: Doshemisferios.com

Del Morro and Valle del Mar did not display the name Dos Hemisferios on their labels because they were of lower quality. Instead, on the fine-print label, these wines would exhibit the name “Vidoheca” (Vinos Dos Hemisferios de Ecuador) or “Vitivimosa,” which was an abbreviation for the Dos Hemisferios holding company, Vitivinicola del Morro S.A. Vitivimosa (EMIS, n.d.).

Exhibit 11 illustrates the standard “Ecuador” logo for all Dos Hemisferios wine bottle neck tags.

Exhibit 11.Dos Hemisferios “Ecuador” Logo Neck Tag

Source: Doshemisferios.com

Dos Hemisferios Customer Segments

Dos Hemisferios created customer profiles to support its rebranding initiative. The winery’s customer profiles were based on various factors, such as demographics, customer preferences, price range, consumption behaviors, etc. The classifications were broken down into seven types of customers, and specific marketing tactics were identified for each. Customer segments and marketing tactics are described below.

1. Foreigners: These were tourists seeking to experience Ecuadorian products. The tourism industry in Ecuador was thriving. In 2017, the number of foreign visitors increased by 9%, surpassing the global average of 4.5%, totaling 1,323,000 visitors.

Approximately 60% of these foreign visitors were categorized under cultural tourism, while another 60% engaged in recreational activities (Mario et al., 2018). Consequently, the classification of “Foreigners” became increasingly important for Dos Hemisferios, especially when selling through the HORECA sector. Typically, foreign clients preferred quality wines, such as Paradoja, Travesía, and Enigma. In contrast, ultra-premium wines like Cautivo and Tomás Carlos were sold directly to consumers, making those premium wines less accessible to foreigners (R. Wright, pers. comm., 2024).

This category included anyone visiting Ecuador who tried local wine. Dos Hemisferios primarily marketed to this group through social media. For example, they created targeted social media stories specifically for German audiences. Other marketing tactics included:

• Promoting the history and brands of Dos Hemisferios.

• Optimizing search results through airlines, social media, hotels, agencies, and tourism websites.

• Listing wine experiences on Expedia and TripAdvisor.

• Offering vineyard tours through travel agencies and hotels.

• Ensuring availability on airlines that travel to the Galapagos and within Ecuador.

• Including details on the bottles that say “Made in Ecuador.”

• Designing bottles with Ecuadorian-themed labels (R. Wright, pers. comm., 2019).

2. Explorers or New Drinkers: These were individuals seeking new experiences or wanting to learn more about wines.

The targeted demographic for Travesía consisted of customers aged 18 to 25. The name Travesía, which meant “voyage,” reflected a focus on explorers. The brand embodied the archetypes of both the explorer and the sage, as it valued individuals who wished to grow by experiencing and learning new things (Renovación de Imagen, n.d.). For instance, Travesía encouraged consumers to compare its Dos Hemisferios Malbec with Argentinian Malbecs to expand their wine palates. This approach applied to other varietals as well, such as Cabernet Sauvignon. Travesía wines were available in a reserve option priced at $15 and a longer-aged grand reserve option priced at $19.

In contrast, new drinkers often lacked wine knowledge. More affordable wines were a better fit for them at the beginning of their wine journey. Previous studies demonstrated that less-experienced consumers gravitated toward lower-priced wines (Cuellar & Claps, 2013; Szolnoki & Hoffmann, 2014; Thach & Olsen, 2015). To cater to these customers, Bruma and Del Morro wines would be promoted. Del Morro was a $7 everyday wine offered in red and white blends, while Bruma was a versatile wine that paired well with various foods, priced around $12 per bottle. Bruma was available in blends such as Cab-Malbec, Cab-Merlot, and white blends.

Robert explained how Dos Hemisferios was integrating elements of the Bruma branding into their marketing strategy:

“We decided that Bruma was a generalist archetype. And we decided we were going to use the three [Bruma] wines…So, you can actually use Bruma, the white, or one of the other two reds, in order to pair them with the whole spectrum of Ecuadorian food. That is one example of how we are using that definition of the archetype and the design of the wine itself. One Bruma red is stronger and has more body than the other one. That can be paired with red meats. The other red is less powerful, less body, and you can pair it with other types of food that are not as heavy. And then, you have the white, which, of course, you can pair with fish or ceviche or other types of plates that we have in Ecuadorian national cuisine.”

The generalist archetype represented rebirth and a fascination with arts, culture, science, knowledge, etc., and aspiring to be competent in many areas. Bruma meant ‘haze’ in Spanish, named after the mist that covered the vineyard in the morning when the temperatures dropped (Renovación de Imagen, n.d.). In a similar vein, the everyman formed Del Morro’s brand archetype. The everyman believed everyone mattered equally, regardless of status, age, or ethnicity. He sought to do the right thing and had a casual approach to life (Renovación de Imagen, n.d.).

Additionally, Dos Hemisferios was launching a new brand called Mito. Mito was geared towards young people. It was for people who were mavericks and wanted to stand out. Thus, the brand received the archetypes of the storyteller and the maverick. However, each flavor aimed to inspire different values. Robert highlighted the plans for this brand:

“Mito means myth in Spanish. What we’re doing with Mito is actually providing values with each wine’s stories. Each one has its own story of an Ecuadorian legend. So not only are we transmitting through brand storytelling, but also the values of maverick, also romantic, and adventure. But each one will have its own Ecuadorian legend to be told. What we want to do is tell these stories by incorporating technology. We want people to actually go to the label and then the story in their cell phone starts showing itself, right?”

There would be four cans: tinto de verano, white spritzer, and flavors like lemon and grapefruit, rose spritzer, sangria, etc. See Exhibit 12, which shows images of the cans that were being market-tested. Additionally, they planned augmented reality (AR) or YouTube videos so people could use their smartphones to see the legend’s story. Mito would be priced at $2.50-$3.00 per can or $9-10 per four-pack.

Exhibit 12.Mito Brand Mock-up

Source: Dos Hemisferios (2019c)

The marketing for this segment involved several key tactics aimed at engaging a specific audience. Educating potential customers through tastings and events was a priority, offering in-depth pairings for those eager to learn. Additionally, cocktail recipes featuring wine were shared to enhance the experience. Collaborating with influencers who aligned with the products targeted this segment effectively. Promotions focused on communicating the brand’s history and showcasing the full range of offerings. To align with the exploratory nature of the experience, updates to the bottle’s image and presentation were also planned. Personalization played a significant role, alongside the commitment to maintaining a presence at relevant events (R. Wright, pers. comm., 2019). The personalization found in Dos Hemisferios’s marketing efforts aligned with studies by Bruwer and Johnson (2010) and Rasmussen and Lockshin (1999) whose research identified the importance of customization in branding strategies.

3. Appears to Know: These were occasional wine drinkers.

This customer segment varied based on several factors, including the level of wine knowledge, socio-economic status, and available disposable income for wine purchases. Some of these customers opted for the most expensive wines, such as Tomás Carlos or Cautivo. Tomás Carlos was the premier wine from Dos Hemisferios, targeted mainly at sophisticated drinkers who enjoy experimenting with different flavors. The brand’s archetype reflected traditional patriarchal values.

Robert shared the story behind this wine:

“So, we have a super blend that’s called Tomás Carlos in honor of my grandfather. My father always says that my grandfather has been one of the most enthusiastic people in pushing him to continue to grow and figure out how to do this, not only as a hobby but as a business…Which is interesting because my grandfather’s name is Tomás Carlos. So, the name of the wine is Tomás Carlos. It has six varietals and there are six children. My father is one of the six.”

On the other hand, Cautivo targeted wine enthusiasts and embraced romantic values. The brand adopted the archetype of the lover to reflect its appreciation for beauty, intimacy, and collaboration.

To market these wines, Dos Hemisferios planned to:

• Collaborate with waitstaff to recommend wines to their knowledgeable patrons.

• Feature the wines prominently on restaurant menus with appealing designs.

• Organize regular wine education events.

• Focus on promoting the history of Dos Hemisferios and its brands.

• Host events at the vineyard.

• Participate in gastronomic events, festivals, and concerts.

• Offer savings promotions.

• Provide subscriptions to a “Wine Club” along with other exclusive benefits (R. Wright, pers. comm., 2019).

4. Wine Connoisseurs (Drink What They Know): Some wine enthusiasts preferred to drink only what they were familiar with, while others were eager to explore new options.

Among the complex wines featured on Vivino and promoted by sommeliers were Paradoja and Enigma. For instance, the Enigma 2014 vintage won a gold medal at the China Wine & Spirits Awards in 2017 (“El vino local,” 2017). Priced at $17, Enigma’s chardonnay targeted individuals looking to express their ideas. Enigma was the second brand launched by Dos Hemisferios and was notable for being the first white grape harvested, despite uncertainties about its success, hence the name “Enigma.” The brand’s archetype embodied the muse aimed to inspire consumers.

On the other hand, Paradoja, a cabernet-malbec blend, was considered the pioneering and most iconic wine in the lineup, retailing at $29. The Spanish word “paradoja,” meant paradox. It symbolized the breaking of paradigms by creating wine in a region thought unsuitable for it. Paradoja was instrumental in putting Dos Hemisferios on the map, with values centered on transformation. Fittingly, Dos Hemisferios selected the pioneer and the magician as the archetypes for Paradoja.

The proposed marketing strategies would include:

1. Promotion that emphasized the history of wine and highlights top brands.

2. Tastings featuring more elaborate pairings for those with intermediate wine knowledge.

3. Custom-labeled wines.

4. Vineyard visits for a more immersive experience.

5. A “Wine Club” subscription service.

6. Educational initiatives aimed at changing perceptions of Ecuadorian wines.

7. More in-depth educational programs, as discussed by R. Wright (2019).

In the case of Dos Hemisferios, the winery successfully leveraged its international gold medal and focused on creating a professional, story-driven image. This approach aligned with the recommendations made by Vlachvei et al. (2012), which highlighted that quality signals, international recognition, and a polished image significantly enhanced a winery’s brand position.

5. Cooking Wine: Customers exclusively used wine in meal preparation.

Dos Hemisferios was set to introduce boxed wine specifically for cooking purposes. These products would be made from lower-quality grapes, and several wines were suitable for this category. For instance, the $4.77 Valle del Mar wine was sold through wholesalers and smaller, lower-end supermarkets. The boxed wine, priced at $5, would be available in supermarkets and through distributors.

The brand name of the wine was derived from the vineyard’s location, which was situated several miles from the ocean in an area with rich soil. The Valle del Mar archetype represented a child, manifesting the guardian of innocence and exhibiting qualities such as being energetic, happy, free-spirited, and open to wonder (Renovación de Imagen, n.d.).

6. Buy for Personal Events: This segment included individuals who purchased wine in large quantities for personal gatherings.

These events might include parties, cookouts, and other private celebrations. For special occasions, such as weddings or anniversaries, customers might seek higher-quality wines. It was essential to run promotions on all wines to attract this type of consumer.

In this segment, the choice of wine was influenced by the type of event and personal budget. For a baptism or first communion, customers might purchase a case of Enigma or Travesía. Conversely, someone with more discretionary income might buy ten bottles of Tomás Carlos for a special event (R. Wright, pers. comm., 2024).

7. Purchase for Sangria: This segment was specifically intended for making sangria.

When preparing sangria, one did not need to use the highest quality wine, as the audience for this beverage might not be as discerning as traditional wine drinkers. Therefore, lower-quality boxed wines, such as Valle del Mar or Mito, would be suitable options. There was also a potential market for pre-packaged fruit cocktails that could be sold in supermarkets.

A summary of the wine portfolio, categorized by brand, grape, and price, is provided in Exhibit 13 below.

DOS HEMISFERIOS LOOKING AHEAD

After lunch, Robert returned to his desk. Overall, he was happy with the achievements of Dos Hemisferios thus far. Several of their wines even won international awards, and opportunities existed for future growth. However, Robert recognized important decisions needed to be made soon. Should they tweak the rebranding proposal before presenting it to the board of directors?

Robert gathered his thoughts and readied himself to reconvene his phone meeting with Guillermo. Overcoming the mental paradigm and creating awareness about Ecuadorian wines would be critical moving forward. He thought, “I believe through the rebranding efforts that we’re doing, we are going to be able to tell the stories of each brand more effectively.” Robert then picked up the phone and called Guillermo.

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