Posted: September 17th, 2015

Michael Shaps Winery.

answer the following two questions.

1 Should Shaps expend production of his premium wines with his new capacity, or launch a custom crush business to make private-label wine for commercial customers?
2 Should Shaps package his own wines in boxes?

(* Explain the basis of your decision, not just a yes/no answer; include any calculation that supports your answer. Below are a few questions you may use to guide your thinking for question 4 and 5, you do not need to answer these individual questions in writing.

What would be the impact on his brand if he chose to expand his “Michael Shaps” – label production? Would Shap’s plan to hire one sales person overcome the distribution challenges?
What value would custom crush deliver for customers? What segments should he target and how should he allocate his sales resources?
Should Shaps offer his custom crush customers the option of packaging their wine in boxes? What value would this technology deliver for his customers?
How should he price custom crush boxed wine?
How would custom crush impact the perception of the “Michael Shaps” brand? Should he associate his name with private-label wine (e.g. by including a note on the back label that indicates that the wine was produced and bottled by Michael Shaps)?

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