Chateau Margaux

LABU 101

Marketing Château Margaux Napo, Connie, Crystal, Christy

Background Information •

Primary Goal:  To protect the brand

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 To command a price at the very top of  the five first-growth Bordeaux wines

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Background Information •

 Types of Wine produced:  –

Château Margaux •

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Part of the French elite of wines as first growth Price varies according to the factors fa ctors of  production, e.g.: weather, quality of grapes

Pavillon Rouge •

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Use grapes that are not included in the selection of Château Margaux Highly-priced

SWOT Analyses

SWOT-Strengths • Established brand - represent good quality, elegant, seductive wine - company philosophy: rather earn less than risk the quality qu ality • Mature technology - high quality human work

SWOT-Weaknesses •

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Relies heavily on the merchants, importers and retailers No knowledge about the consumer base  –  –

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No own distribution system Mainly sold through the Bordeaux merchants No information at all

Immature marketing team  –

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Relatively new concept in the industry A sign of weakness

SWOT-Opportunities •

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Huge pool of luxury consumers in Asia, esp. China  Tariff on wine in China has decreased, hence favours the entry of China market Chinese consumers drink 0.7 litres of wine per year * 1.3 billion= 9.1 billion litres huge potential to explore

SWOT-Threats •

Competition from New World producers  –

Australia, South Africa and California

Reasons:  –

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Better in Marketing Lower costs Comprehensive labels Improved production techniques and quality

Dropped market share by 10% in 10 years

SWOT-Threats •

Changing consumers’ taste  –

 Tend to taste the wine which is easier to taste and understand

SWOT-Threats •

Changing consumption pattern  –

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 Tasting wine vs drinking wine Our wine is better for drinking More complex pleasures when wines are aged a ged

Actions to take 1. Entr Entry y to China hina Marke arkett

4. Con onttac actt Ja James Suc Suckl kliing => Journalists of Wine Spectator

PEST Analysis in China •

Political  –

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Entry to WTO  tariff cancelled ↓ Greater competitive power

Economical  –

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GDP per capita ↑ Greater purchasing power Huge potential market

price

PEST Analysis in China •

Social  –

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↑contact with foreigners Treat wine as a symbol of social status

 Technological  –

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Mature technology Economies of Scale

Actions to take 1. En Entr try y to Chi hina na Mar arke kett

4. Cont ontact act Ja James Suc Suckl kliing => Journalists of Wine Spectator

Actions to take 3. Wine Fair for connoisseurs => reinforce old ones => attract new ones 4. Constant Price => keep brand image

References •

www.chateau-margaux.com/