Cooperativa Agrícola Pisquera Elqui Limitada (Capel) produced Pisco Capel, Chile’s leading pisco brand, but sales of the product were declining. By 2022, the co-operative, a symbol of tradition and social responsibility, had suffered a significant drop in consumer trust and loyalty toward its flagship product. Francisco Valdebenito, the newly appointed marketing manager, needs to evaluate potential strategies for dealing with the market decline. Should the co-operative revitalize Pisco Capel’s market position or explore other alternatives, especially focusing on Capel’s other brands?
Capel: At a Crossroads
Jorge Bullemore, Flavia Cardoso, Juan Staudt
Product #:W40135
Supplier:Ivey
Discipline:Marketing, Strategy
Setting:Chile, 2022
Subjects:
Industries:
Geography:
Your Price:$10.54
Purchase this material with a free Educator Account and enjoy more benefits:
- Free Educator Copy
- Free Teaching Notes
- Build your coursepack
- Discounted academic price
Learning Objectives
The case addresses segmentation, targeting, and positioning (STP) and consumer behaviour principles. It can be used in graduate marketing management courses, mainly to understand branding, consumer behaviour, and strategic marketing of a declining brand in a competitive and tradition-driven market. After working through the case and assignment questions, students will be able to do the following:
- Apply an STP framework to develop and apply segmentation, targeting, and positioning strategies in a mature market.
- Understand the key consumer behaviour concepts of perceptions and behaviours and the role of psychographics in brand decline and recovery.
- Analyze qualitative market research to inform consumer insights and strategic choices.
- Evaluate strategic marketing decisions based on business performance data to adjust marketing plans.
- Understand crisis management in branding and navigate negative consumer perceptions.