Word: kendalle
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Kendall-Jackson, whose total ad budget is $1 million, never knew what hit it. By late 1995, after a heady decade of 15%-to-20% annual sales growth, Vintner's Reserve Chardonnay began to falter. Gallo's Turning Leaf, priced at $6, was cheaper than Kendall-Jackson's $10 bottle...
As the internal documents illustrated, Gallo had methodically tested every element of the labels and packaging of Kendall-Jackson and other brands to see what consumers liked. At a January 1994 meeting, Ernest Gallo set his goal: "We want to do in one year what it took Kendall-Jackson 10...
When Turning Leaf hit the shelves in September 1995, the only hint of its origin was the Modesto, California, address; the word Gallo was nowhere to be found. Boosted by advertising, the wine sold 1.3 million cases in 1996, second to Kendall-Jackson. In April 1996, after hearing complaints that...
In court, Gallo officials insisted that Turning Leaf, with its lower price, was aimed at a different market from Vintner's Reserve. And they strenuously denied copying Kendall-Jackson or anyone else. They pointed to the dozens of bottles on exhibit--so many that the courtroom looked more like a...
The case is a toss-up. Me-too marketing happens in nearly every product category--think "ice" beer and "lite" everything. But there is a point when imitation becomes more than flattery. If Gallo is found guilty, it could be forced to redesign its Turning Leaf packaging and turn over...