PBC Project HvA
Table of Contents
1. Executive Summary
Chateau Margaux is one of the highest quality wine producers on the planet with a retail price of above a 100$. In total there are three harvests: The 1st one, which is the most qualitative wine, the 2nd one, which usually also goes through as a top notch Margaux and the 3rd harvest, which does not get sold as a Margaux because the quality usually has detoriated.
In this case this is not the situation as the quality of the 3rd batch can be compared to a 2nd harvest wine and thus has the potential abillity to still be sold to consumers.
In general terms, wine consumption in France has been declining due to the shift in consumer consumption and the replacement of consumption of wine by fruit juicez and frizz drinks and the emphasis of the French government that alcohol is a large threat.
The US has a rapidly growing wine market and is expected a 16% growth up until 2016. Moreover, 13% of all worldwide consumed wine is consumed by Americans, this is because 45% of all American adults drink wine. Evidence indicates that the Eastern part of America are more interested in imported wine rather than domestic wines and this gave perspective to start exports to the state of New York to begin with. As we are expanding to the U.S. we will have to go through a 3-tier system.
The decision is made to focus on two groups: the baby boomers and the millinialists, this is underdivided in the image seekers and enthusiast segments. This can be divided into restaurant consumers and retail consumer and Margaux in this case will choose for selling to retailers. This is also because 60% of total wine consumption in the US takes place at home and 20% in restaurants, bars and lounges. Moreover, retailers will only earn a 30% margin whereas restaurants earn a 60% margin.
Chateau Margaux has three direct competitors: E&J Gallo Winery, The wine group and Constellation. The main one of these three is Constellation as they also are
1. Executive Summary
Chateau Margaux is one of the highest quality wine producers on the planet with a retail price of above a 100$. In total there are three harvests: The 1st one, which is the most qualitative wine, the 2nd one, which usually also goes through as a top notch Margaux and the 3rd harvest, which does not get sold as a Margaux because the quality usually has detoriated.
In this case this is not the situation as the quality of the 3rd batch can be compared to a 2nd harvest wine and thus has the potential abillity to still be sold to consumers.
In general terms, wine consumption in France has been declining due to the shift in consumer consumption and the replacement of consumption of wine by fruit juicez and frizz drinks and the emphasis of the French government that alcohol is a large threat.
The US has a rapidly growing wine market and is expected a 16% growth up until 2016. Moreover, 13% of all worldwide consumed wine is consumed by Americans, this is because 45% of all American adults drink wine. Evidence indicates that the Eastern part of America are more interested in imported wine rather than domestic wines and this gave perspective to start exports to the state of New York to begin with. As we are expanding to the U.S. we will have to go through a 3-tier system.
The decision is made to focus on two groups: the baby boomers and the millinialists, this is underdivided in the image seekers and enthusiast segments. This can be divided into restaurant consumers and retail consumer and Margaux in this case will choose for selling to retailers. This is also because 60% of total wine consumption in the US takes place at home and 20% in restaurants, bars and lounges. Moreover, retailers will only earn a 30% margin whereas restaurants earn a 60% margin.
Chateau Margaux has three direct competitors: E&J Gallo Winery, The wine group and Constellation. The main one of these three is Constellation as they also are