Name of Product: Chateau Margaux
Type of Market/Industry: Wine producer
Market Definition: The market for Chateau Margaux is the people who enjoy high quality wines and luxury buyers Key Trends: Decreasing UK markets (connoisseur) who are loyal, increasing luxury buyers from Japan, China and Russia. Moreover, some critics preferred heavier and darker wines which influence consumer’s change in preferences.
Core Problem: Should Chateau Margaux take control over the distribution and marketing strategy instead of leaving it in the hands of Bordeaux merchants? Strengths
Evidence / Reference
Strong brand reputation
Chateau Margaux was part of the French elite of wines known as first growths. Leading wine critic Robert also Parker has described it as a “brilliantly consistent wine of stunning grace, richness and complexity.”
Contribute to brand awareness and loyalty. High product quality
They selected grapes for their first wine more rigorously. Their philosophy is to rather earn less than risk the quality.
Contribute to the rise in demand and hence, push the prices. Also might obtain goo review from the journalist and wine critics. Good quality terroir (land)
Distinctive microclimate and soil in France. And they also have quite large area for Margaux (192.7 acres).
Create distinctive wine’s character and high quality wine. It is one of the key of brand reputation. Good financial situation
Thanks to the high price level and good vintages, the revenues had been relatively good in the last 10 years.
Allowed them to buy the right equipment to work better and also to be more selective. Experienced distribution agent
The merchants managed a market for chateaux and ensure a wide distribution of small amounts of their product all over the world. And then they redistributed these among their customers.
This creates scarcity on the market and helps the prices to increase. The first growths should not be directly in the market or give the impression that they...
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