Chateau Margaux Case Study

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Executive Summary Chateau de Margaux is one of the world’s most renowned premium wine brands for many decades. Their wine offerings include only the first-growth and the second-growth wines. The company been profitable and is considered a very highly reputable and successful premium wine brand from the region of Bordeaux, France. Being successful and profitable often bring up questions like, how can the company do better? With the increasing demand for wine around the world and the increase of number in new wine producers around the world with exceptional potential, could the Chateau de Margaux still be competitive in the future? What are the possible ways for this company to expand and what are the pros and cons of each? In this…show more content…
The tags with Parker’s ratings also influence the placement of the wines in a retail stores. Parker’s influence to the wine industry did create many benefits to the consumers but a long with it some controversies. (Appendix 1) 3) Is Chateau Margaux a luxury brand or a connoisseur’s brand? Definitely, a connoisseur’s brand because their high quality wine is treasured by those who really understand wine. These are repeating customers with high brand loyalty. On the other hand, luxury customers are more likely to switch from product to product. Luxury customers also buy luxury wine on only special occasion; therefore they are not repeating customers. 4) Should Chateau Margaux extend the product line? From our group opinion we think that Chateau Margaux should not extend its product line. Chateau Margaux is connoisseur brand which has limited brand awareness and limited target group, which is the strong part that keeps Chateau Margaux stands on top rank wine in consumer mind. Extend the product line of Chateau Margaux could cause wrong perception among consumers. Moreover the product quality control for Chateau Margaux is highly strict and limited, so to add more product line on its regular basis production can cause the average quality of entire product drop down as well. 5) Should change its current distribution system? Chateau Margaux should not change its current distribution system. The
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