Alexis Solis Cancino
Global Strategy
000130502
THE THIRD WIE ! CA IT SE"" "I#E A SEC$D% 1& Intro'(ction C)*te C)*tea( a( +arg +arga( a(x, x, one one o- .ost .ost i./or i./ortan tantt estate estates s in t)e or' or'ea( ea(x x +e'oc ine region rance4, -aces a 'ecision o- t)e .ost (t.ost i./ortance -or t)e ine co./any& / (ntil no, t)e co./any sol' to batc)es o- ines, a 6rst ine )ose retail /rice o-ten excee'e' 71000 a bottle, an' a secon' ine )ose retail /rice o-ten excee'e' 7200 a bottle& Since t)e 2008 6rst to batc)e batc)es s ere ere a.a9 a.a9ing ingly ly goo' goo',, t)e t)e one oner, r, Corin Corinne ne +ent9e +ent9elo/ lo/o( o(lo los s on'ere' i- t)e t)ir' one co(l' be sol' as a great ine by itsel-& (t t)is as not an easy acco./lis).ent& "a(nc)ing a ne t)ir' ine .a'e -ro. t)e estate:s /ro'(ction /ro'(ction .eant a signi6cant a.o(nt a.o(nt o- or; an' inno
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2& ?roble. State.ent Inste Instea' a' o- sellin selling g t)e t)ir' t)ir' ine ine to ot)er ot)er ine ine .erc .erc)an )ants ts by b(l;, b(l;, .a;ing t)e t)ir' ine one o- t)e co./any@s .ain /ro'(cts co(l' .ean a greater a.o(nt o- re co(ntries ere losing ine .ar;et s)are to t)e =e Worl'> co(ntries s(c) s(c) as e e eal ealan an', ', Arge Argent ntin ina, a, A(st A(stra rali lia a an' an' So(t So(t) ) A-ric -rica& a& T)is T)is as as concer concerning ning,, since since connois connoisse(r se(rs s an' so..elier so..eliers s o(l' o(l' t(rn t(rn to t)ese t)ese ne /ro'(cts instea' o- t)e ol' -as)ione' ones&
3& Analysis 3&1 The wine market - let us talk economics. In t)e year o- 2013, t)e ine in'(stry .a'e aro(n' 7105110 billion in re
Alexis Solis Cancino
Global Strategy
000130502
co./etition as aggressi an' =connoisse(rs>& T)e -or.er lac;e' any ;nole'ge o- ines an' t)eir 'ecisions ere base' on reco..en'ations or t)e searc) -or a /ortrayal o- ealt)& T)e latter )a' a )ig) a.o(nt o- ;nole'ge an' co(l' tell a goo' ine -ro. a ba' ine it) ease& T)e in'(stry 'e
3&3 Diferentiation – is Château Margaux’s third wine a winner? Accor'ing to t)e case, a great ine co.es -ro. t)e .ix o- -o(r t)ingsB a gran' =terroir> lan'4, , t)is ine )a' no /roble. 'eli
& Reco..en'ations So, 6rst o- all )o s)o(l' be t)e .ain b(yers o- Corinne +ent9elo/o(los@ astonis)ing t)ir' ine% I consi'er t)at C)*tea( +arga(x s)o(l' re.ain tr(e to its tra'itional .ar;ets an' sell t)e t)ir' ine to its core
2
Alexis Solis Cancino
Global Strategy
000130502
c(sto.ers& Since t)is is a /ro'(ct in t)e =ex/eri.ental /)ase>, so to s/ea;, it o(l' be better -or t)e co./any to (se 'istrib(tion c)annels t)at it alrea'y ;nos to /er-ection& T)is lea's (s to t)e /ricing o- t)e t)ir' ine& Since Corinne@s .ain obecti, I s(ggest t)at t)e /rice s)o(l' be aro(n' 780 7100 /er bottle to 'istrib(tors, so t)at t)e 6nal /rice at retail stores ineries, etc&4 o(l' be aro(n' 7130 7150 /er bottle an' aro(n' 710 /er bottle at resta(rants ta;ing into acco(nt, to so.e extent, t)e .argins t)at t)e case .entionsB 30 -or retailers an' 0 -or resta(rants4& T)e .anagers co(l' /lay aro(n' it) t)e /ricing in or'er to .aintain it si.ilar to its .ain bec).ar;B "ato(r@s t)ir' ine& T)is o(l' generate excellent extra re& T)is relates to t)e bran' an' t)e i.age t)at Corinne ants to /ortrayB a )ig) (ality ine at an aJor'able /rice& All in all, t)is co(l' .ost /robably .aintain a stea'y 'e.an' -or t)e ne /ro'(ct& In or'er to start 'e.an' going, an i./ortant (estion is t)e /ro.otion an' a' /roect, reco..en'ing it to so..eliers an' a' to t)e .ore ra'ial oneB =b(ying a''itional lan' or e& ?ersonally, all o- t)ese .et)o's are correct b(t in
3
Alexis Solis Cancino
Global Strategy
000130502
a''itional lan'& I- t)is /ro
An' so, it) t)eir ne /ro'(ct t)ey -ace a .ost si.ilar sit(ationB t)ey ill )a s)o(l' be sent to t)e .ar;et, an' at )at /rice&
