Case Chataux

2 February 2017

1. How does the Bordeaux wine distribution system work? Who benefits and how? there are 400 hundred merchants in the Bordeaux, who taste the wine first to get the information about the surface, volume and harvest. Then they provide with the information the largest buyers. So merchants get the primeur cheaper, but then chataux can ask for higher process on the bottled markets, which the merchants accept, to get the primeur price for the next year. the merchants allocated wine to their buyers. this makes wine available to their customers.

From this system profits averybody. For wine industry it’s goo because they get the payment yearlier and they do not have to worry about distribution. As for merchants they are as well paid early. Customers benefit because they get a high quantity. 2. How is price set? Trace the process from the sale of the first tranche to the sale of a bottle in a wine store for $1,200. Why is the process so complicated? 3.

Case Chataux Essay Example

Is Chateau Margaux a luxury brand or a connoisseur’s brand? There is a wide distribution of small amounts of this wine all over the world.This creates a scarsity on the market and helps for raising the price. This is done for the reason to make customer feel that this is not widely available. That makes sense that this is a luxury brand according to experts for its high quality. 4. What problems face Corinne Mentzelopoulos? What, if anything, should she do? should she extend into the mass market or maintain their exclusivity? In order to draw a conclusion one must investigate alternative ways of expanding, marketing and distributing her brand. There is an idea to begin mass marketing with a new wine brand.

The idea would be to use different grapes in order to be more accessible to the younger generation. Some of the issues with this suggestion are: maintaining the exclusivity of the original brand, ensuring that consumers still feel motivated to pay the higher price point, and they will also now need a distributor, marketing team, and an ability to focus on more than one brand of wine. In this particular case, the Margaux business has a close-tie who is very familiar with the distributorship and marketing of wine.At the same time Chateau de Margaux should purchase inexpensive Bordeaux region land where they can produce 1million bottles per year. These bottles should be used to penetrate the European, North American and South American markets, as suggested by Vivek Kochikar, associate vice president and principal researcher, Infosys Technologies. These markets are easier to penetrate and lack the ability to as easily effect the reputation of the Grand Vin as the demand for mid-range wines is higher.

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