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
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securing its status as one of the finest and most expensive wines in the world. The primary wine produced by the Châteaux, Grand Vin du Châteaux Margaux, is regarded as one of the top wines in the world, while its secondary wine, Pavillon Rouge du Chateau Margaux, was also considered in the top echelon of wines. Although the Pavillon was originally intended to occupy a slightly lower perceived quality point and lower price point, strong reviews of each wines have led to both the first and second wines
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Should Chateau go for the affordable luxury brand and why? As the owner of the Chateau brand and considering that there could either be a yes or no response, my choice would be to not create a new “affordable luxury” brand directed to the young. The following key reasons why Chateau should not go for segment:- 1. Brand Dilution:- The existing brand represents exclusivity and appeals niche target customer segment. Moreover the wine brand is perceived good and maintains a high quality in customer’s
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quality. Distinguishes: CM put less of production in the first and second wines and reduced yields overall in the vineyard in order to concentrated the flavors in the remaining grapes. Therefore CM got fewer bottles but with higher quality. While chateau relied on the channel to serve as the distribution and marketing arms for its wine, CM took note of demand shifts. It conducted the “ambassador” program in China to get close to customers in the big increasing market. The brand equity of CM is it
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Château Margaux Case 1- Château Margaux’s distribution system Château Margaux is one of the well-known wines from the Bordeaux region in France. It is famous by the fact that this wine has got a luxury and high quality notoriety, and also stand out from the competitors thanks to the quality of is first growth produce with carefully selected grapes. With only two mains wines (first wine: Chateau Margaux; Second wine: Pavillon Rouge; See in Exhibit 2) Chateau Margaux is a famous wine all over
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There are 400 hundred merchants in the Bordeaux, who taste the wine first to get the information about the surface, volume and harvest. Then they provide with the information the largest buyers. So merchants get the primeur cheaper, but then chateau Margaux can ask for higher process on the bottled markets, which the merchants accept, to get the primeur price for the next year. The merchants allocated wine to their buyers. This makes wine available to their customers. This system profits everybody
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ANNUAL REPORT 2009 CORPORATE PROFILE Le Château is a leading Canadian specialty retailer offering contemporary fashion apparel, accessories and JANUARY 30, 2010 JANUARY 31, 2009 STORES SQUARE FOOTAGE 352,214 319,762 117,321 128,768 35,575 28,083 16,200 19,332 9,203 3,480 1,029,938 17,591 STORES AND SQUARE FOOTAGE STORES SQUARE FOOTAGE 371,240 360,017 139,605 133,025 38,148 28,083 20,157 19,332 15,314 3,480 1,128,401 17,591 ONTARIO QUEBEC ALBERTA BRITISH COLUMBIA MANITOBA NOVA SCOTIA SASKATCHEWAN
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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
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OPPORTUNITIES 1) Demand for its wine: Although traditional markets like United Kingdom, Belgium, Netherlands, and Germany have historically driven the market for premium wines but in the last year’s new countries around the world have joined the club of countries with a high demand of high-end wines. Countries like United States, Japan, China, and Russia are demanding now almost half of its total demand, becoming very important markets. We see this as an opportunity for the company’s growing. 2)
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Alternatives 6 8. Strategy Recommendation 7 1. Introduction Le Chateau, a specialty retailer, who has been in business since 1959, has managed to vertically integrate its value chain to achieve financial stability while targeting the middle market. With tough competition in the industry, Le Chateau has struggled with marketing its brand and international expansion. 2. Company’s Current Strategy 3.1. Vision Le Chateau plans to market to the post-baby boom market while still attracting
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