Case Analysis Preserve the Luxury of Extend the Brand Write Up Essay Sample

1. Problem Designation: Identify the issue ( s ) that direction or the people involved in the instance must turn to.

2. Issue Analysis: Perform the appropriate analysis and rating ( e. g. . Stakeholder. VRINE. SWOT. PESTLE. and other analyses ) .

3. Actionable Recommendations: Construct a set of actionable schemes. which must be good reasoned. argued and supported with important grounds.

The Company Background:
Château de Margaux. located in the Bordeaux part of France. has been profitable since the 1980’s. Their trade names. current monetary value point for a bottle of Premier Grand Vin is $ 999 US. and averaging 150. 000 bottles sold each twelvemonth. The staying grapes are used to do Puiné . their 2nd vino. which is sold for $ 125- $ 560. and averages a entire sale of 200. 000 bottles per twelvemonth. Any staying grapes are sold to other manufacturers anonymously and repackaged under other trade name names Problem Designation:

As a manner to refresh up the traditional trade name. derive more exposure and create sustainability within the Wine market. Claire wanted to get down mass marketing a new vino trade name. The thought would be to utilize different. cheaper grapes in order to be more accessible to the younger coevals. The mark monetary value scope would be $ 25- $ 30 per bottle. There are a big figure of immature vino drinkers who can non afford the high monetary values of the current Gran Vin trade name and are hence non being attracted to the Château de Margaux vineries. If these consumers were introduced to an low-cost trade name of vino from the Margaux estate. so they may be more likely to acknowledge and swear the trade name. That manner. when they are looking for a more expensive vino. they will foremost travel to their label of Grand Vin from the Château de Margaux aggregation. Issue Analysis:

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Claire believes that making and administering a cheaper-end vino would fulfill the market of immature vino partisans whom were priced out of high terminal Gallic vinos in order to prolong profitableness. However some of the shareholders such as Francois don’t believe it would be a good thought because it would stain the repute of the high terminal vino if they were to get down making low-end vinos. Besides he doesn’t believe in puting in low-end vinos due to a high sense of tradition and household pride. Last. he doesn’t want to break up their relationships with distributers and negociants by administering in the Americas Similarly. Jean-Paul doesn’t want to do vino utilizing the other grapes and believes a production of two vinos is adequate therefore there would be no demand for a 3rd vino.

Gaspard possess 50 % of the estate is worried about the concern sustainability for future coevalss so is unfastened to new thoughts and must do a determination. Ultimately the hazard involved in spread outing and making a 3rd vino consists of keeping the exceptionality of the original trade name. guaranting that consumers still feel motivated to pay the higher monetary value point ( because the Gran Vin will be associated with administering a cheaper vino ) . happening another distributer. selling squad. and holding the ability to concentrate on more than one trade name of vino. In this peculiar instance. the Margaux concern has a close-tie with the distributorship and selling of vino. and hence this is a solution to one of the issues ; nevertheless there are still several of the other issues that remain. Actionable Recommendation:

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I believe that Château de Margaux would gain from ramifying into the cheaper terminal branded wines market. Using a broader scope of vinos would let Château de Margaux to rule the vino market every bit good as expand their trade name. Furthermore by appealing to the immature vino partisans Château de Margaux would accomplish sustainability in the hereafter. However by spread outing. Château de Margaux. runs the hazard of losing the exclusivity of the trade name and losing clients of the Gran Vin vino because it is associated with the lower quality vino intended for the younger coevals. Last. bring forthing a 3rd vino would take away from the quality of the production of the first two. In order to antagonize such jobs. they could engage Claire to supervise production. distribution and the development of the branded vino. Nonetheless the enlargement should be run as a subdivision of Château de Margaux.

This would profit the sustainability and let Château de Margaux to tap into a larger market but will merely be successful if trade name distinction is executed to guarantee assessment of the Grand Vin. Château de Margaux should buy cheap Bordeaux part land where they can bring forth bottles to be used to perforate the European and North American markets. Furthermore. the vino from the new part should hold a wholly separate Brand name and logo. under the Château de Margaux company name and this new trade name would be listed as a subordinate company.

More significantly. the company would necessitate to use current employees and have them cross-train/mentor the new trade name so that the trade name civilization is non lost. The granddaughter will be in complete charge of pull offing the new trade name including the distribution of the vino. but will be overseen by Gaspard. I think that finally running the two companies individually but keeping the same quality for each trade name will increase gross and trade name consciousness. I besides think that high-end patronages will go on to buy the higher-end trade name as they wouldn’t want to exchange to the less expensive trade name because they may non even be cognizant of the lower-end. as it is a wholly separate trade name.

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