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 the world.
This situation is, in a part, due to its distribution system. Indeed, Chateau Margaux has not got is own distribution system because it entrust the distribution through specialist merchants which have good knowledge about the potential consumer and consequently allocated the product in the right places all over the world. This system allows Chateau Margaux to be concentrate on the producing activity in order to have always the best first growth whereas merchants take care about the promotion and the sale. There are many merchants in the Bordeaux region, where Chateau Margaux’s terroir is located, which assures them to have many choices to select the best specialist to sell the wine. After, selected the right merchant, this one allocate the wine in small amount in markets that they think interesting to create a scarcity climate that search Chateau Margaux to keep is luxury image. More precisely, the distribution is mostly performed by the en primeur system. It means that Chateau Margaux sell its wine in barrel and no after bottling when the wine is in advance about the major vintage. This way of distribution is used by most of the chateaux and wine producers because they sell only between 5 and 10% of their wine in after bottling. The en primeur system is characterized by different step that Chateaux and merchants respect in order to fixe the final price. A good relationship in the long-term between Chateau Margaux and the intermediate ensure a...
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