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Transcription of this question: 4.Secco Vineyards (SV)Secco Vineyards (SV) is a family-owned business producing wine in Sonoma, California.In 1947, SV opened using cost-plus (mark-up) pricing. For SV’s customers, the wines weremedium priced and available in local grocery stores.In 1977, Joe Secco, grandson of the founder, created a new strategy. He re-branded SWs wine fora niche premium market.SV began to sell directly to customers at its winery instead of in local grocery stores.• SV stopped using cost-plus (mark-up) pricing and began to sells its wines at much higher pricesthan before.Regular wine tastings and promotional events were held at its winery. At these events, wineexperts would promote SV’s wines by creating an elegant experience based on a luxuriousculture of wine consumption: stylish wine glasses, classical music and food that complementsthe wine.However, SV has recently faced intense competition and sales have fallen. Local wine producersand overseas competitors have entered the market with similar market positioning. In order tomaintain its brand image, SV has not changed its pricing strategies.SV conducted secondary market research about other possible markets in the US for its premiumwines. The research suggested that other possible markets for high-quality wines, such as thoseof SV, exist. As a result, SV is considering two options to increase sales in addition to its currentdistribution channel:Option 1 : open a business-to-consumer (B2C) e-commerce storeOption 2: sell SVwines to wholesalers serving the whole of the US market for premium wines.(a)(b)(c)(d)Describe one characteristic of a niche market.With reference to SV, explain one advantage and one disadvantage of usingsecondary market research.Given the intense competition, explain two pricing strategies SV might consider.Recommend which of Option 1 and Option 2 SV should consider in order to increasesales.[2][10]

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