...Chateau Margaux Case Study International Business March 19th, 2012 “Who knows whether this ancient system will still be working in 20 years or so?” (Executive Manager of Chateau Margaux). This quote, spoken by an executive manager, very proficiently sums up what is happening to the Chateau brand. The Chateau brand has always prided themselves in their unique process for creating one of the world’s finest wines. However they refuse to change their ways because they are afraid it would damage “their soul” (Deighton 9). As the world markets expanded, other companies began changing formulas or changing how they produce their products n order to keep up with the demands for mass production across the globe. Chateau refused to do this because they wanted to keep their identity intact. They were not being affected because of their product but instead were affected due to their management. They refused to market their product or even sell directly to the customer. As other companies began running ad complains, Chateau did not even know who their target market was because they had no information and their suppliers had little information as well. Take the Coke vs. Pepsi war. Both of these companies have mass produced their product and have found the shortest, simplest, and cheapest way to produce their cola and ship it world wide. This does not mean that their product is better than any other cola, in fact there are some minor brewing companies that also make really good cola. Chateau...
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...FACULTY OF ECONOMICS MATEJA PIRNAT, 19554965 UNIVERSITY OF LJUBLJANA INTERNATIONAL MARKETING SCHOOL YEAR 2014/2015 INDIVIDUAL ASSIGNMENT- Chateau Margaux Study Case 1. Describe the current distribution system of the company and explain why it is so important for its brand positioning? Please explain also how the brand is positioned on international markets. Chateau Margaux’s current distribution system is completely traditional, which means that it is handled by the specialized and independent merchants. The merchants are a major part of the distribution system for the Chateau Margaux’s wines. Besides the responsibility for the distribution of wine, the merchants also have other significant roles, for instance negotiating prices, maintaining the relationship with retailers, promoting and positioning the brand. The distribution is dependent on the merchants who are responsible for customer relationships and finding out who the wine consumers are. For this reason they are selected on the basis of their previous relation with the château and their past success in promoting and positioning the brand. One of the major benefits of current distribution system is that it creates a scarcity on the market and helps to gain the better prices and at the same time not give an impression of wide availability to the customers - customers begin to appreciate the wine more and more. The merchants are able to create an enthusiasm around the wine which can affect the whole...
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...Using the aforementioned data, it is easy to conclude that the Chateau de Margaux brand is performing very well, yet there is always a question if a company can be doing even better than they already are. In 1997, the Mentzelopoulos family and Margaux brand had to ask themselves this question- should they extend into the mass market or maintain their exclusivity? In order to draw a conclusion one must investigate alternative ways of expanding, marketing and distributing their brand- which is exactly what we will consider when examining the Château de Margaux business model. New Idea for an Old Brand: As a way to freshen up the traditional brand and to gain more exposure, the granddaughter of the Margaux family wanted to begin mass marketing a new wine brand. The idea would be to use different grapes in order to be more accessible to the younger generation. The target price range would be €20-€25 per bottle (Dessain, 2011). There are a large number of young wine drinkers who cannot afford the high prices of the current Gran Vin brand and are therefore not being attracted to the Château de Margaux vineyards. If these consumers were introduced to an affordable brand of wine from the Margaux estate, then they may be more likely to recognize and trust the brand. That way, when they are looking for a more expensive wine, they will first go to their label of Grand Vin from the Château de Margaux collection. Some of the issues with this suggestion are: maintaining the exclusivity...
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...Colorado Height University Case study of Marketing Chateau Margaux Xuan Mai Le IBS400 Château Margaux had entered the Mentzelopoulos family in 1977 when Andre Mentzelopoulos, the owner of a French supermarket chain, bought it for about €12 million. It located in Bordeaux region, which produces the most prestigious wine in France. The Bordeaux wine community was initially shocked to see it “fall in the hands of a Greek.” However, they gained confidence in Mentzelopoulos as they saw the complete overhaul of the vineyards with better drainage and new plantings. Château Margaux was part of the French elite of wines known as first growths, five specific wines from the Bordeaux region. Wine critic Robert Parker had recently described Château Margaux as a “brilliantly consistent wine of stunning grace, richness and complexity.” It was often called the most seductive and elegant of all Bordeaux wines. Château Margaux officially classified in 1855 as a "first-growth" (one of only five in the Bordeaux region). A critic commented, “The Château Margaux 1953 is considered a superstar among wines. It just improves in power, elegance and charm with age. Andre's first vintage in 1978 was seen as one of the best Bordeaux wines of the year. Unfortunately, he died suddenly in 1980 before he could see the full transformation of the château. Corine is his daughter inherited the estate. She is 27 years old, high educated and work in the marketing but she does not know anything about wine industry...
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...‘’Gosse du Margaux’’ A name which in English translates into ‘’Child of Margaux’’. A wine that is created by Chateâu Margaux, one of the four wines that received the highest rank of Premier Cru. The third wine carries the same prestige and luxury that the Margaux clienteles adore. Although the price is moderate paralleled to the existing two wines, the consumers recognize the definition of ‘’child of Margaux’’. Index INDEX 3 1. INTRODUCTION 5 1.1. COMPANY INFORMATION 5 1.2. PROBLEM STATEMENT 5 2. EXECUTIVE SUMMARY 6 3. EXTERNAL AND MARKET ANALYSIS 7 3.1. MARKET ANALYSIS 7 3.1.1. Import and Export 7 3.1.2. Customer Trends 7 3.1.3. Demographics 7 3.2. MAJOR SEGMENTS 8 3.2.1. Fine wine buyers 8 3.2.2. Enthusiasts 8 3.2.3. Image seekers 8 3.2.4. Savvy Shoppers 9 3.2.5. Traditionalists 9 3.2.6. Satisfied sippers 9 3.2.7. Overwhelmed 9 3.3. COMPETITOR ANALYSIS 9 4. INTERNAL ANALYSIS 9 4.1. TARGET MARKET 9 4.2. POSITIONING 10 4.3. COMPETITIVE 10 4.3.1. Competitive advantage 10 4.4. MARKETING MIX 10 4.4.1. Product 10 4.4.2. Place 10 4.4.3. Price 10 4.4.4. Promotion 10 4.5. SALES & PROFITS 11 4.5.1. Sales 11 4.5.2. Profits/Loss 11 5. SWOT ANALYSIS 12 5.1. CONFRONTATION MATRIX 12 6. SEGMENTATION, TARGET MARKET, POSITIONING 13 6.1. TARGET MARKETS, SEGMENTATION 13 6.1.1. Enthusiasts 13 6.1.2. Image seekers 13 6.1.3. Savvy shoppers 13 6.1.4. Traditionalists 13 6.1.5. Satisfied sippers 13 6.1.6. Overwhelmeds 14 6.2. FUTURE PROSPECT...
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...9 -5 0 7 -0 3 3 REV: AUGUST 16, 2007 JOHN DEIGHTON VINCENT DESSAIN LEYLA N D PI TT D A N I E L A B E Y E R SD O RF E R ANDERS SJÖMAN Marketing Château Margaux Were a wine to be drunk in paradise, it would be Château Margaux. — William Styron, Sophie’s Choice Brad watched as wine poured from a precarious height into his glass, generating turbulence but no splash. “I must try that,” he thought. A young management consultant, Brad was no stranger to expensive meals, but here he felt separated from the proceedings by more than income. He was the junior member of a consulting team invited to join Corinne Mentzelopoulos and Paul Pontallier for lunch at Château Margaux, in the room where such luminaries as the president of China, Hu Jintao, had been hosted when he came to visit the source of one of the world’s great wines. The château’s white wine had accompanied Brad’s first course, next its Pavillon red, and now, with a selection of cheeses, came Château Margaux 1982, a wine that might have cost him $1,200 back in New York if he could have found a bottle. He raised it to his lips with trepidation. He rather hoped that what he was about to encounter would not be so transcendent that he would never again enjoy his neighborhood trattoria’s house red. His concern was unfounded. The sip was pleasant, smooth, and the finish was far longer than anything he had noticed before, but frankly, he thought, there was none of the explosion of flavors that he associated...
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...THE GINESTET CASE STUDY. INTERNATIONALISATION AS A WAY TO RENEW BORDEAUX WINE ECONOMY’S ENTREPRISE SPIRIT (1978-2000) Christian Delpeuch, chief executive officer of Ginestet, Bordeaux, & Hubert Bonin, professor in contemporary economic history at Bordeaux Political Sciences Institute The Bordeaux wine economy endured a grave crisis at the beginning of the last quarter of the 20th century: most of its familial trade houses were submerged by losses and failed down. The renewal of bordeaux wine economy was due to new forms of capitalistic and commercial strategies. Large French financial groups (Suez, Paribas) linked to investment banks, or foreign French and alcohol and spirits groups (Bols, Seagram, Pernod-Ricard, Rémy-Cointreau) or wholesale traders (John Holt) took hold of Bordeaux wine houses. But this trend was brought to a halt at the very end of the century: specialists in wines and alcohols more and more prevailed. Multiregional wine sellers constituted groups which developed all over France dynamic policies to rebuild commercial networks. Whereas their strategy turned towards the internal mass market doesn’t matter here, their involvement in the reshaping of an international network and trademark will be the core of that case study. Whilst waiting for a large synthesis about Bordeaux trade at the end of the century1, we’ll concentrate our attention on a middle-size company, Ginestet, as a testimony about the requirements of internationalisation but...
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...EXPERIENCE HBR.ORG Case Study The owner of the prestigious Château de Vallois must decide whether to launch an affordable wine. by Daniela Beyersdorfer and Vincent Dessain The Experts Corinne Mentzelopoulos is the owner and CEO of Château Margaux, a firstgrowth wine estate in the Bordeaux region of France. Preserve The Luxury Or Extend The Brand? G aspard de Sauveterre shivered as he stepped out of a side entrance to his château. While the late September days were still warm, he could feel autumn approaching. The 75-year-old owner of Château de Vallois, a famous wine-producing estate in the Bordeaux region of France, felt a familiar thrill. This was the season he and his team had worked toward the whole year; any day now the bell for the harvest, the famous vendanges, would ring. He quickened his pace down the long, well-kept alley through the wrought-iron gates to start his ritual morning walk through the vineyards. He loved these hours when the rising sun bathed the misty landscape in shades of yellow and gray. The quiet, cool air cut through the thoughts that had been swirling in his head since his granddaughter burst into his study yesterday with an audacious proposal. Claire de Valhubert had grown up on the estate but had moved to Paris following the sudden death of her mother, Gaspard’s daughter, seven years ago. After graduating from one of France’s elite grandes écoles she had worked for a top consulting firm before earning an MBA at Insead. Gaspard had...
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...Country Comparison Factbook France vs. Italy Wine Industry Group 16.4 Bram van Veen Caspar Leusink Muhammad Hafidz Randy Hardja Lecturer: Mr.Drs.HenkRitsema Contents Executive Summary 3 Introduction 4 Methods and Frameworks 5 Hofstede’s cultural dimensions 5 Porter’s diamond 7 Porter’s Five Forces Model of Competition 8 Introducing the Wine Industry 9 Overview of Wine Industry 9 French Wine Industry 10 Italian Wine Industry 11 Country comparison 12 Comparison of relevant macro-economic indicators 12 General economic indicators 12 Financial Health 13 Demographic Factors 13 Historical developments 14 Historical Background 14 Global Wine Industry Developments 15 Socio-cultural conditions 17 Cultural Diversity 17 Hofstede 18 Political and Governmental Systems 19 Legal Systems 21 Financial Systems 21 Labour Market 22 Industry Conditions 24 Supply Market Conditions 24 Demand market conditions 24 Threat of New Entrants and Substitute Products 25 Major players and level of competition 27 Level of Competition 28 Recommendations 28 Italy 29 France: 31 Recommendations: 33 References 34 Executive Summary The goal of this factbook is to provide potential investors with information on relevant dimensions regarding the wine industry in Italy and France. The factbook is comparing both of the countries using methodological framework and secondary data. The data we used are obtained through various sources. In the end, Italy is presented...
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...Fine Wine Market Outlook 2012 Contents Introduction Methodology The Fine Wine Market in 2012: Challenges and opportunities Survey findings 5 6 7 10 PROFESSIONALS’ WINE NETWORKING Connecting professionals with a shared interest in wine In your city, and around the world With colleagues in the sectors that matter to you Few things form stronger bonds between people than a shared passion for wine. Whether you’re an experienced wine collector or just embarking on wine discovery, we can help power your networking by connecting you with like-minded professionals, in the elds you tell us are relevant to your business and career. The service is free, private, and condential. Simply register your interest at www.wineyields.com, and we’ll contact you privately to set up introductions with complimentary professionals who’d like to share a glass or two. A free reader service, from Wine Yields F INE WINE INVESTMENT SPECIALISTS Best prices for fine wine We have an excellent reputation as advisors on investment grade wines; we trade in them on a daily basis and so are well placed to recommend what and when to buy and sell. We supply the trade and private collectors at the same highly competitive prices. We charge no management or performance fees. • Top prices paid for your wine • Highly regarded fine wine blog • Professional storage available Pantone PMS 273 • Daily fine wine news and extensive news library Pantone 273 Cmyk Suite 5, Claremont House, 22 Claremont...
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...Bloodlines of Illuminati by: Fritz Springmeier, 1995 Introduction: I am pleased & honored to present this book to those in the world who love the truth. This is a book for lovers of the Truth. This is a book for those who are already familiar with my past writings. An Illuminati Grand Master once said that the world is a stage and we are all actors. Of course this was not an original thought, but it certainly is a way of describing the Illuminati view of how the world works. The people of the world are an audience to which the Illuminati entertain with propaganda. Just one of the thousands of recent examples of this type of acting done for the public was President Bill Clinton’s 1995 State of the Union address. The speech was designed to push all of the warm fuzzy buttons of his listening audience that he could. All the green lights for acceptance were systematically pushed by the President’s speech with the help of a controlled congressional audience. The truth on the other hand doesn’t always tickle the ear and warm the ego of its listeners. The light of truth in this book will be too bright for some people who will want to return to the safe comfort of their darkness. I am not a conspiracy theorist. I deal with real facts, not theory. Some of the people I write about, I have met. Some of the people I expose are alive and very dangerous. The darkness has never liked the light. Yet, many of the secrets of the Illuminati are locked up tightly simply because secrecy is a way...
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...A FAREWELL TO ARMS BOOK ONE 1 In the late summer of that year we lived in a house in a village that looked across the river and the plain to the mountains. In the bed of the river there were pebbles and boulders, dry and white in the sun, and the water was clear and swiftly moving and blue in the channels. Troops went by the house and down the road and the dust they raised powdered the leaves of the trees. The trunks of the trees too were dusty and the leaves fell early that year and we saw the troops marching along the road and the dust rising and leaves, stirred by the breeze, falling and the soldiers marching and afterward the road bare and white except for the leaves. The plain was rich with crops; there were many orchards of fruit trees and beyond the plain the mountains were brown and bare. There was fighting in the mountains and at night we could see the flashes from the artillery. In the dark it was like summer lightning, but the nights were cool and there was not the feeling of a storm coming. Sometimes in the dark we heard the troops marching under the window and guns going past pulled by motortractors. There was much traffic at night and many mules on the roads with boxes of ammunition on each side of their packsaddles and gray motor trucks that carried men, and other trucks with loads covered with canvas that moved slower in the traffic. There were big guns too that passed in the day drawn by tractors, the long barrels of the guns covered with...
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...62118 0/nm 1/n1 2/nm 3/nm 4/nm 5/nm 6/nm 7/nm 8/nm 9/nm 1990s 0th/pt 1st/p 1th/tc 2nd/p 2th/tc 3rd/p 3th/tc 4th/pt 5th/pt 6th/pt 7th/pt 8th/pt 9th/pt 0s/pt a A AA AAA Aachen/M aardvark/SM Aaren/M Aarhus/M Aarika/M Aaron/M AB aback abacus/SM abaft Abagael/M Abagail/M abalone/SM abandoner/M abandon/LGDRS abandonment/SM abase/LGDSR abasement/S abaser/M abashed/UY abashment/MS abash/SDLG abate/DSRLG abated/U abatement/MS abater/M abattoir/SM Abba/M Abbe/M abbé/S abbess/SM Abbey/M abbey/MS Abbie/M Abbi/M Abbot/M abbot/MS Abbott/M abbr abbrev abbreviated/UA abbreviates/A abbreviate/XDSNG abbreviating/A abbreviation/M Abbye/M Abby/M ABC/M Abdel/M abdicate/NGDSX abdication/M abdomen/SM abdominal/YS abduct/DGS abduction/SM abductor/SM Abdul/M ab/DY abeam Abelard/M Abel/M Abelson/M Abe/M Aberdeen/M Abernathy/M aberrant/YS aberrational aberration/SM abet/S abetted abetting abettor/SM Abeu/M abeyance/MS abeyant Abey/M abhorred abhorrence/MS abhorrent/Y abhorrer/M abhorring abhor/S abidance/MS abide/JGSR abider/M abiding/Y Abidjan/M Abie/M Abigael/M Abigail/M Abigale/M Abilene/M ability/IMES abjection/MS abjectness/SM abject/SGPDY abjuration/SM abjuratory abjurer/M abjure/ZGSRD ablate/VGNSDX ablation/M ablative/SY ablaze abler/E ables/E ablest able/U abloom ablution/MS Ab/M ABM/S abnegate/NGSDX abnegation/M Abner/M abnormality/SM abnormal/SY aboard ...
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