Chateau Margaux

960 Words Feb 24th, 2015 4 Pages
FACULTY OF ECONOMICS MATEJA PIRNAT, 19554965

UNIVERSITY OF LJUBLJANA

INTERNATIONAL MARKETING

SCHOOL YEAR 2014/2015

INDIVIDUAL ASSIGNMENT- Chateau Margaux Study Case
1. Describe the current distribution system of the company and explain why it is so important for its brand positioning? Please explain also how the brand is positioned on international markets. Chateau Margaux’s current distribution system is completely traditional, which means that it is handled by the specialized and independent merchants. The merchants are a major part of the distribution system for the Chateau Margaux’s wines. Besides the responsibility for the distribution of wine, the merchants also have other significant roles, for instance
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Chateau Margaux is one of the five first-growth Bordeaux wine producer; it and has one of the finest names of Bordeaux and the number of drinkers worldwide is growing through the years. Chateau Margaux’s wines are used by the connoisseurs and luxury consumers. They are facing an uncertain future, because of losing market to New World producers (such as California, Australia, South Africa and New Zealand) which have lower prices and more accessible flavours. Nowadays wine drinkers are changing tastes, which could cause a big problem. 1. Explain and argue whether current distribution system should be changed or not. If yes, how? If not, why not? Be specific as possible and use financial data to support your argument. I am going to defend the statement that current distribution system should not be changed. Present system has advantages as well disadvantages, but in my opinion the benefits dominate. The main factors that prove the current distribution model is the right one are: (1) security of high1 quality3 wine2, (2) differentiation of the margin price between the retail price and the merchants is not high, (3) Chateau Margaux has not got neither the skills nor education to take care of merchant’s job and many others. They do not have their own distribution system because they put the responsibility trust in specialised merchants which have good