Case Analysis Preserve the Luxury of Extend the Brand Write Up
1. Problem Identification: Identify the issue(s) that management or the people involved in the case must address.
2. Issue Analysis: Perform the appropriate analysis and evaluation (e.g., Stakeholder, VRINE, SWOT, PESTLE, and other analyses).
3. Actionable Recommendations: Build a set of actionable strategies, which must be well reasoned, argued and supported with significant evidence.
The Company Background:
Château de Margaux, located in the Bordeaux region of France, has been profitable since the 1980’s. Their brands, current price point for a bottle of Premier Grand Vin is $999 US, and averaging 150,000 bottles sold each year. The remaining grapes are used to make Puiné, their second wine, which is sold for $125-$560, and averages a total sale of 200,000 bottles per year. Any remaining grapes are sold to other producers anonymously and repackaged under other brand names
Problem Identification:
As a way to freshen up the traditional brand, gain more exposure and create sustainability within the Wine market, Claire wanted to begin mass marketing a new wine brand. The idea would be to use different, cheaper grapes in order to be more accessible to the younger generation. The target price range would be $25-$30 per bottle. 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.
Issue Analysis:
Claire believes that creating and distributing a cheaper-end wine would satisfy the market of young wine enthusiasts whom were priced out of high end French wines in order to sustain profitability.
However some of the stockholders
2. Issue Analysis: Perform the appropriate analysis and evaluation (e.g., Stakeholder, VRINE, SWOT, PESTLE, and other analyses).
3. Actionable Recommendations: Build a set of actionable strategies, which must be well reasoned, argued and supported with significant evidence.
The Company Background:
Château de Margaux, located in the Bordeaux region of France, has been profitable since the 1980’s. Their brands, current price point for a bottle of Premier Grand Vin is $999 US, and averaging 150,000 bottles sold each year. The remaining grapes are used to make Puiné, their second wine, which is sold for $125-$560, and averages a total sale of 200,000 bottles per year. Any remaining grapes are sold to other producers anonymously and repackaged under other brand names
Problem Identification:
As a way to freshen up the traditional brand, gain more exposure and create sustainability within the Wine market, Claire wanted to begin mass marketing a new wine brand. The idea would be to use different, cheaper grapes in order to be more accessible to the younger generation. The target price range would be $25-$30 per bottle. 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.
Issue Analysis:
Claire believes that creating and distributing a cheaper-end wine would satisfy the market of young wine enthusiasts whom were priced out of high end French wines in order to sustain profitability.
However some of the stockholders