pbc case 3 final version 2

7/21/2019 PBC Case 3 Final Version 2

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Marketing plan, Case:By: group 1, from 2-IBM3Publication date: 2t!"o#ember, 213

$%&osse du Margau'%%( name )!ic! in *nglis! translates into

$%C!ild of Margau'%%+( )ine t!at is created by C!ateu

Margau',one of t!e four )ines t!at recei#edt!e !ig!est rank of Premier Cru+!e t!ird )ine carries t!e same

prestige and lu'ury t!at t!e Margau'clienteles adore+ (lt!oug! t!e price is

moderate paralleled to t!e e'isting t)o)ines, t!e consumers recogni.e t!e

de/nition of$%c!ild of Margau'%%+

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Index

INDEX.......................................................................................................3

1. INTRODUCTION...................................................................................5

1+1+ C0MP("I"0M(I0"+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++41+2+ P0B5*M6(*M*"++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++4

2. EXECUTIVE SUMMARY.........................................................................6

3. EXTERNAL AND MARKET ANALYSIS......................................................7

3+1+ M(7*("(56I6+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++83.1.1. Import and Export......................................................................................73.1.2. Customer Trends........................................................................................73.1.3. Demographics............................................................................................ 7

3+2+ M(906*&M*"6+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++3.2.1. Fine wine buyers........................................................................................3.2.2. Enthusiasts.................................................................................................3.2.3. Image see!ers............................................................................................ 3.2.". #a$$y #hoppers..........................................................................................%3.2.&. Traditiona'ists.............................................................................................%3.2.(. #atis)ed sippers.........................................................................................%3.2.7. *$erwhe'med.............................................................................................%

3+3+ C0MP*I0("(56I6+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++;

4. INTERNAL ANALYSIS...........................................................................9


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8+1+ C0P0(*-5*=*56(*&++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++148+2+ BA6I"*66-5*=*56(*&+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++148+3+ A"CI0"(5-5*=*56(*&++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1@

%. O&'ECTIVES......................................................................................16

+1+ 60-*M&0(56++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1@

+2+ 50"&-*M&0(56+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1@

9. MARKETIN" MIX...............................................................................16

;+1+ P0DAC++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1@%.1.1. Three 'e$e's o0 ,roduct............................................................................1(%.1.2. ,roduct positioning strategy.....................................................................17

;+2+ P5(C*++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++18%.2.1. .#. ar!et...............................................................................................17%.2.2. ,roduct i0e Cyc'e 4rowth #tage.............................................................1

;+3+ PIC*+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1%.3.1. ,ricing #trategy........................................................................................1

;+


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1. In)*+d,-)+n

1+1+ Company information

Ap until t!is point, t!e estate !ad been selling t)o red )ines, a /rst )ine)!ose retail price often e'ceeded G1 per bottle, and a second )ine )!oseretail price often e'ceeded G2 per bottle+ e, from t!e management team, areconsidering and preparing to launc! a ne) t!ird )ine: *sprit du C!ateauMargau', made from t!e estate%s production not used to make t!e /rst t)o+

C!teau Margau' is one of t!e most popular e'clusi#e, lu'ury, popular,international )ine producer, )it! a big market s!are in *urope and in moreplaces in t!e )orld+ !e current situation is t!at C!teau Margau' sells t)o !ig!Huality and !ig!ly priced e'clusi#e )ine+ !e /rst )ine !as a Parker 6core of ;;out of a 1 and a a#erage price of G1+2+ !e second )ine !as a Parker 6core

of ;3 out of a 1 and a#erage price of G14+

1+2+ Problem statement

!is marketing )ill display t!e researc! t!at !as been done to sol#e t!efollo)ing problem: o) could )e sol#e t!e loss of t!e core customers in t!eAnited 6tatesJK+

o sol#e t!is problem )e e'plain some of t!e background information, t!ecurrent situation and gi#es a future perspecti#e for C!teau Margau'+ eintroduced a t!ird bottle of )ine, under t!e brand name of C!teau Margau', andt!is bottle )ill be called: &osse du Margau'+

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2. Exe-,)/e 0,*

C!teau Margau' is currently in t!e market of t!e )inery+ (s of 213, t!e

global )ine market )as #alued at generating bet)een G@-@4 billion in annualre#enues+ !e amount of bottles being produced )as estimated to be o#er 3billion+ !e production of )ine !as seen a s!ift from being produced in t!e $%0ld)orld%% to an increasing production of )ine in t!e $$"e) )orld%%+ !is s!ift createdan increasingly ups)eep in t!e global production of )ine )!ic! resulted in a !ugesupply of )ine to t!e market+ !is de#elopment forced many )ine producers tolo)er t!eir prices in order to be able to compete in t!e )ine market+

C!teau Margau' )ill be e'panding its market )it! a t!ird )ine titled &ossedu Margau'K+

C!teau Margau' oLers t!ree types of )ine, t!e /rst )ine being t!e best and

t!e t!ird being t!e least good+ !e t!ird )ine is !o)e#er, of suc! !ig! Hualityt!at it is considered good enoug! to sell+ !e Anited 6tates of (merica !as apopulation of o#er 3 million people and because t!e )ine industry is currentlybooming in t!e A6 t!ere are many potential customers+ o create gro)t! in t!eA6 market, C!teau Margau' /rst needs to introduce t!e t!ird )ine to t!ismarket+ it! t!e ne) product de#elopment, C!teau Margau' )ill increase itsmarket s!are+

0bNecti#es!e obNecti#es related to t!e launc! of t!e t!ird )ine are separated in s!ort

and long term+ Introducing t!e t!ird )ine )ill be done )it! t!e introduction priceof ;; dollar in t!e /rst Huarter of 21


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3. Ex)e*n nd *e) n00

3+1+ Market analysis

C!teau Margau' is currently in t!e market of t!e )inery+ (s of 213, t!eglobal )ine market )as #alued at generating bet)een G@-@4 billion in annualre#enues+ More t!an !undred t!ousands of )ineries generated t!ese re#enuesfrom corner to corner globally+ !e amount of bottles produced )ere estimated tobe o#er 3 billion, #arying from lo)-priced supermarket )ines costing around G3to up)ards G3 bottles in e'pensi#e restaurants+

!e production of )ine !as seen a s!ift from being produced in t!e $%0ld)orld%% Erance, Italy, 6painF to an increasing production of )ine in t!e $$"e))orld%% E(merica, (rgentina, (ustralia, etc+F+ !is s!ift created an increasinglyups)eep in t!e global production of )ine )!ic! resulted in a !uge supply of )ineto t!e market+ !is de#elopment forced many )ine producers to lo)er t!eir

prices in order to be able to compete in t!e )ine market+ !is t!reat due to t!eabo#e-mentioned s!ifts resulted in go#ernments protecting t!eir domestic )ineproduction+ !ese protection met!ods ranged from subsidi.ing to restrictions on#ine planting+

3+1+1+Import and *'port

!e global )ine e'port is still dominated by t!e pre#ious mentioned $%0ld)orld%% countries e#en t!oug! t!e s!ift !ad occurred+ !e leading )ine importersin t!e )orld are t!e A7 and &ermany, follo)ed by t!e Anited 6tates+ !e !ig!-end bottles mentioned in t!e /rst paragrap! of t!is c!apter are e'ported to areas)!ere t!ere is a !ig! )illingness to pay in contrary to t!e lo)-end )ine )!ic! is

usually e'ported in bulk to large retail c!ains+ !ose large retail c!ains importdiLerent lo) priced )ines in order to bottle it t!eir sel#es and sell it under t!eiro)n pri#ate label+ !is )ay of importing and reselling it became an increasinglypopular trend in numerous countries+

3+1+2+Customer rends

ine )as for many years tied )it! traditions and e#eryday life !appeningssuc! as families dining toget!er+ !ese acti#ities !o)e#er, !a#e seen manyc!anges since t!e typical family structures died out t!e last decades+ !epre#ious trend )as one of t!e moti#es for t!e decline in )ine consumption+ ineconsumption became more occasion-dri#en and takes place outside ofconsumers% !ouse!olds more and more often+

3+1+3+Demograp!ics

!ere are #arious correlations bet)een t!e )ine consumption and numerousdemograp!ics+ In t!e A6, older and educated people consume Anited 7ingdomand (ustralia t!e consumption of )ine for t!e largest segment+ (n additionalc!aracteristic is t!at t!e biggest part is female and )ell educated+

3.1.3.1. ocation

!e location plays a big role in t!e spending be!a#ior+ In t!e A6 !alf of all)ine purc!ases Eby G amountF )ere made in so-called $%on-premise%% Ebars and

restaurantsF+ !ese #enues sell t!e )ines for a !ig! price, )!ic! causes t!e !ig!amount of purc!ases by dollar amount+ If you concentrate on t!e actual, itrepresents only 2O of t!e total #olume of )ine being sold in t!e A6+ !e

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remaining O )as sold in $%oL-premise%% EliHuor stores, grocery stores, /ne )ines!ops etc+ (not!er interesting s)itc! in )ine sales is t!at Internet retailers aregetting increasingly more acti#e+ !e consumption of )ine in C!ina gre) a loto#er t!e last couple of years+ !e consumption )as #alued to be bigger t!an t!atof t!e A6 by t!ree times+ ealt!y C!inese citi.ens increasingly s!o)ed more

a)areness in )ine+ In 2, t!e C!inese go#ernment eliminated all ta'es andrestrictions on t!e import of )ine+ !e elimination of t!ese restrictions created a!uge demand of )ine E2 billion bottles in 212F and t!is trend led C!ina to be t!e/ft! largest market in t!e )orld by #olume pus!ing t!e A7 of its place+

!e grap! belo)1s!o)s t!e enormous gro)t! in t!e C!inese consumption of)ine from 2 until t!e forecasts of 212+ !ere is not one ot!er country, )!ic!!as seen suc! a relati#e gro)t! in )ine consumption+ !e pre#ious paragrap!se'plain )!y t!ese de#elopments occurred+

3+2+ MaNor segments

ine )ine buyers Econnoisseurs, $%lu'ury%% buyersF

*nt!usiasts

Image seekers

6a##y s!oppers

raditionalists

6atis/ed sippers

0#er)!elmed

3+2+1+ine )ine buyers

3.2.1.1. Connoisseurs

( connoisseur is a )ine consumer t!at is kno)ledgeable about t!e diLerenttypes of )ine on t!e market+ !ey appreciate !ig! Huality and distinguis! )ineby t!e diLerent regions+

3.2.1.2. 89uxury99 buyers

1 6ource: !ttp:)))+oi#+intoi#cmsinde'

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http://www.oiv.int/oiv/cms/indexhttp://www.oiv.int/oiv/cms/index


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Marketing plan, Case:By: group 1, from 2-IBM3Publication date: 2t!"o#ember, 213( lu'ury buyer is a )ine consumer t!at s!ortages deep kno)ledge of diLerent

types of )ine+ !ey usually consume )ine in order to represent an image of)ealt!+

3+2+2+*nt!usiasts

(n ent!usiast buyer is someone )!om portrays passion and kno)ledge )!enit comes to )ine consumption+

3+2+3+Image seekers

Drinking )ine is a status symbol for an image seeker+ !e kno)ledge is basicand t!ey are dri#en by )ine trends+ C!oosing a )ine bottle is often based on t!eidea of $%e'pensi#e is better%%+

3+2+


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second+ !e /rst gro)t! is t!eir main product+ !e second gro)t! is also )ellkno)n+

!e use of inno#ati#e and sop!isticated met!ods to prepare t!eir )ine makest!em deser#e a parker score of ;; for t!eir /rst )ine and a score of ;4 for t!eirsecond )ine+ !is illustrates !o) prestigious t!eir )ine is+


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$*+)U@4+42+

U8+


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S)*en9:)0

V 6op!isticated production process

V ig! pro/t marginsV Demand for /rst )ines is alreadystrong but still gro)ing

V Bell establis!ed brand

e25ne00e0

V "o capacity to increase production,

)it!out it !a#ing eLects on t!e brand

V Marketing is outsourced to WnSgociantsW

V "ot muc! kno)ledge of customer base

O66+*),n.).e0

V &ro)ing interest in )ine in andoutside of europe A6, c!ina, australia+

V "e) distribution c!annelsV C!ateau' latour ser#es as a test tokno) if !olding back 1O of t!e )ine

)ill be eLecti#e or not+

V 5u'ury type customer in russia andasia

T:*e2)0

V 2renc! )ines losing market s!are globaly

V (ttitude to)ards bordeau' )ines bysommeliers !a#e turned negati#e

V Inconstancy of Huantity of t!e left o#er)ine

V Inconstancy of Huality of t!e left o#er )ine


5.1. C+n;*+n))+n )*x

!e !ig! pro/t margins t!at are ac!ie#ed by C!teau Margau' make itpossible to e'periment )it! ne) distribution c!annels, online sales in particular+

!is is a good )ay to reac! more customers and sell more products in t!istec!nological age+ urt!ermore, t!e sop!isticated production process make t!etaste of t!e )ine e'traordinary t!e )ines t!at C!teau Margau' sells are popularamongst many )ine-lo#ers+ !e demand for C!teau Margau'%s /rst )ines isalready strong but still gro)ing, not only local but also internationally+ C!teauMargau' is a )ell-establis!ed brand t!at is indeed #ery popular amongst t!e$lu'ury customers% from ussia and C!ina+ o)e#er, not only t!e lu'urycustomers are interested in t!e )ines t!at C!teau Margau' sells, t!e o#erall

interest in )ine is gro)ing in and outside of *urope+ !e A6, C!ina and (ustraliain particular are /nding more interest in )ine+ o)e#er, renc! )ines are losingt!eir market s!are globally as t!e A6 and ot!er countries produce )inet!emsel#es+ Moreo#er, t!ere is a case of inconstancy concerning t!e Huality andHuantity of t!e )ine it is !ard to meet t!e demands and standards of yourcustomer, )!ic! are not entirely clear to C!teau Margau' t!eir kno)ledge oft!eir customer base is rat!er insuQcient+ (not!er problem t!at goes !and in!and )it! t!e inconstancy of t!e Huantity of t!e )ine produced by C!teauMargau' is t!at t!ere is no capacity to increase production )it!out damaging t!ebrand+ If C!teau Margau' decides to do so, connoisseurs could damage t!eirbrand, )!ic! )ill inRuence t!e attitude to)ards Bordeau' )ines+ Connoisseursalready !a#e a negati#e attitude to)ards Bordeau' )ines but t!e possibility ist!ere t!at if C!teau Margau' decides to buy bulk )ine and sell t!at as t!eir t!ird)ine it )ill lose t!e respect from t!e connoisseurs e#en more+

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6. Seen))+n# T*e) M*e)# $+0)+nn

C!teau Margau', as one of )orld%s most famous )ines, is a lu'ury brand+!is is )idely belie#ed because of t!e !ig! Huality and t!e e'clusi#ity of t!ebrand+ !e prices of C!teau Margau' diLer per year, t!e years in )!ic! t!e )ineis seen as most tasteful and of a !ig!er Huality are more e'pensi#e+ 0ne of t!e

t!ings t!e famous )ine brand is kno)n for is t!e )ay t!ey are using t!e sameprocedure and materials to produce t!e )ine for o#er a decade+ urt!ermore,since t!e 1s t!e nSgociants Eor merc!antsdealersF spared C!teau Margau'o)ners from t!e commercial aspects of t!e business and let t!em focus on)inemaking+ !is optimi.es t!e Huality and t!e taste of t!e )ines+

@+1+ arget Markets, segmentation

!e consumers of )ine are segmented into si' groups: *nt!usiasts

Image seekers

6a##y s!oppers

raditionalists

6atis/ed sippers

0#er)!elmeds

@+1+1+*nt!usiasts

(lt!oug! t!e ent!usiasts only form appro'+ 1O of t!e total customers, t!eystill spend t!e most of all ot!er customers Ea Huarter of total spendingF+ !eent!usiasts appreciate a good )ine and like to enNoy )ine )it! friends+urt!ermore, t!ey !a#e some kno)ledge about )ine and t!ey bot! buy )ellkno)n as uniHue )ine selections+

@+1+2+Image seekers

!e image seekers are usually )ealt!y people and buy t!e )ine to s!o) t!eir)ealt!+ !ey do not !a#e muc! kno)ledge about )ines, and usually buy t!emost e'pensi#e )ines to impress t!eir friends+ !e Internet is t!e most usedsource for t!e image seekers to c!eck out )ine lists, for e'ample, before !es!egoes to !a#e a drink+ !ey do t!is to impress t!eir friends and pretend as if t!ey!a#e muc! kno)ledge about )ines+ !e image seekers also form a big part of t!etotal consumers for )ine, )it! 2O+

@+1+3+6a##y s!oppers

!e sa##y s!oppers al)ays seek for t!e less e'pensi#e )ines and t!ey do notrecoil to #isit all t!e s!ops for discounts or t!e less e'pensi#e )ines+ !ey alsouse many coupons and enNoy s!opping for )ine+ (t last, t!e sa##y s!oppers are14O of t!e total )ine-market+

@+1+


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9ust like t!e traditionalists, t!e satis/ed sippers do not like a lot of #ariation infact, t!ey usually buy t!e same brand t!ey like+ 6atis/ed sippers, unlike t!e ot!ersegments, do not like t!e e'perience of buying )ine and !a#e no interest ingetting to kno) more about )ines+

@+1+@+0#er)!elmeds

!e o#er)!elmeds like to play it safe, and t!at is )!y t!ey al)ays )antad#ice at )!at tastes t!e best+ !ey do not look at t!e labels and rat!er getinformation and base t!eir purc!ase on t!at+ If t!ey do not get any information ordo not kno) a )ine, t!ey )ill probably lea#e it and searc! for a more $secure%)ine+

*'!ibit 1+

@+2+ uture prospectC!teau Margau' !as a )ide range of customers, #arying from real )ine

lo#ers to t!e Eoften ric!F image seekers, )!o do it all for t!e fame+ !enintroducing t!e t!ird )ine, C!teau Margau' s!ould focus most on t!etraditionalists, since t!ey are open for c!anges and are often looking for uniHuebrands+ *'pected is t!at t!e image seeker )ill be maintained no matter )!at,since t!ey do not really care about t!e taste or Huality, but solely buy t!e )ine asa status symbol+

urt!ermore, C!teau Margau' s!ould consider pricing t!eir ne) )ineEsFlo)er, to !a#e more consumers buy it+ 6ince C!teau Margau' !as manyconsumers, but lots of t!em !a#e a rat!er small s!are of purc!ase+ E6ee e'!ibit

1F

@+3+ "e) segments

!e Anited 6tates of (merica !as a population of o#er 3 million people andbecause t!e )ine industry is currently booming in t!e A6, t!ere are manypotential customers+ urt!ermore, more and more young people are interested in)ine t!e G3 billion business is also dra)ing attention to all kinds of ot!ersegments in t!e population Ee+g+ celebritiesF


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less e'pensi#e )ines and less $image seekers%, but t!e )ine business gro)ingand )it! t!at also t!e segments+

0f course, t!e )ine )ill not be sold at t!e $normal% )ine sellers, but moreto)ards !ig! Huality restaurants+ "e#ert!eless, t!e potential customers are still!ig! in si.e and alt!oug! it )ill not EentirelyF be t!e same brand, t!ey )ill also

but t!e t!ird )ine+

!e potential customers of t!e 3rd)ine in t!e A6 can be di#ided into 3 mainsegments1+ "e) image seekers2+ "e) ent!usiasts3+ "e) traditionalists

@+3+1+"e) image seekers

!ese $ne)% image seekers )ill !a#e t!e same c!aracteristics as t!e $old%ones+ o)e#er, no) t!e )ine is less e'pensi#e and t!e t!ird )ine is not from t!emain brand EC!teau Margau'F, t!is )ill attract also t!e upcoming imageseekers+ !ose )!o do not !a#e a lot of money, but still )ant to s!o) t!at t!eyare )ealt!y+ !e $old% image seekers )ill probably stick )it! t!e /rst or second)ine, because t!e t!ird )ine seems to $c!eap% to t!em and does not reRect t!eir)ealt!+

@+3+2+"e) ent!usiasts

!e ne) ent!usiasts )ill be, as t!e ent!usiasts are for t!e /rst and second)ine, t!e biggest s!are of t!e customers of t!e t!ird )ine+ !ese ne) ent!usiastsalso like to spend a lot of time )it! friends and drink )ine+ !e big diLerence!ere is t!at t!ere )ill be a lot more ne) ent!usiasts, because of t!e price of t!et!ird )ine+ !is can also cause many $old% ent!usiasts to buy anot!er brand, as

t!e t!ird )ine )ill become more of a $normal% )ine, since more customers )illbuy it+

@+3+3+"e) traditionalists

!e ne) traditionalists )ill lo#e t!e t!ird )ine, because t!ey do not like tospend too muc! money, but still )ant a !ig! Huality )ine+ ( big ad#antage of t!issegment is t!at t!ey tend to stick to one )ine, and EstillF are easily inRuenced bymarketing eLorts+

@+


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7. C+*+*)e 0)*)e

8+1+ Corporate-le#el strategy

C!teau Margau' !as been an e'ceptional )inemaker since t!e 1@t!century+0ne of C!teau Margau' key success factors is t!e reno)ned Huality of its )ines+a#ing an already /rst and second )ine, C!teau Margau' )ill be e'panding itsmarket )it! a t!ird )ine+ it! t!e ne) &osse du Margau'K, )ine C!teauMargau' )ill #itali.e t!e consumer )it! t!is ne) product+ C!teau Margau'focuses t!e inno#ation of t!e C!teau Margau'%s brand on t)o core t!emes,e'cellence and passion+ o be successful in t!is market C!teau Margau' !as tokeep up its Huality standards+ o create gro)t! on t!e A6 market C!teauMargau' /rst needs to introduce t!e t!ird )ine to t!is market+ it! t!e ne)product, de#elopment C!teau Margau' )ill increase its market s!are+

8+2+ Business-le#el strategy

C!teau Margau' )ill be focusing on diLerentiating itself from t!e ot!er lo)er

classed )ines+ By being in t!e same price range, but slig!tly more e'pensi#et!an its competitors C!teau Margau'%s t!ird )ine )ill sell in !ig!er #olume+

C!teau Margau' can aLord t!is t!roug! t!e reputation it !as built up )it! itspre#ious )ines+ !e re#ie) critics )ill also play a big role in t!e success factor oft!e diLerentiation strategy+ !is is )!y C!teau Margau' )ill in#ite t!e maNorcritics to a pri#ate tasting session+ !e outcome of t!is session )ill make or breakt!e success of t!e t!ird )ine+

8+3+ unctional-le#el strategy

It is essential for t!e success of C!teau Margau', t!at t!e t!ird )ine )ill bea#ailable again to t!e loyal customers+ !at means t!at it is our responsibility to

make t!e )ine a#ailable to not only t!e traditional market but to ne) segmentsas )ell+ !e ne) product s!ould also be a#ailable in restaurants to gi#e imageseekers t!e opportunity to buy t!e )ine at diLerent locations+

!e combination of a )ell-functioning net)ork and inno#ati#e products )illposition &osse du Margau' on t!e A6 market for gro)t! )it! e#en a !ig!erpotential t!an its pre#ious products+8

%. O


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Marketing plan, Case:By: group 1, from 2-IBM3Publication date: 2t!"o#ember, 213 Increase re#enues by million euro during t!e second year from 1 to 1@

million euro a year

9. M*e)n Mx

;+1+ Product

;+1+1+!ree le#els of Product:

%.1.1.1. Core ,roduct

By de/ning t!e core product clearly, C!teau Margau' can ac!ie#e marketinge'cellence+ !e core product is also kno)n as a bene/t and is generallyintangible in nature+ !e core product of C!teau Margau'%s !ig!-end lu'ury )ineis satisfying t!irst for e'tinguis!ed alco!ol and #alue for money+

%.1.1.2. 5ctua' ,roduct

!e actual product is t!e tangible, p!ysical product of C!teau Margau', )!ic! ist!e )ine+ !e core product of C!teau Margau' is a status symbol+ !erefore, t!eactual product )ill be a #ery !ig! Huality product )it! !ig! pricing+ C!teauMargau' currently oLers a line of !ig!-Huality )ine including t!e /rst )ineC!teau Margau' and t!e second )ine Pa#illon ouge du C!teau Margau'+

"o) C!teau Margau' is planning to e'pand t!e product line by including at!ird )ine named &osse du Margau'+ In addition, )it! &osse du Margau',C!teau Margau' !opes to earn more re#enue and e#entually increase t!eirpro/t and market s!are+

o)e#er, less t!an !alf of )!at )as left after blending t!e /rst t)o )ines )as

deemed of !ig! enoug! Huality for t!e t!ird )ine+ In addition, due to t!e smallamount t!at )as left, C!teau Margau' created a special allure of t!e )ine byusing t!e scarcity of t!e product to t!eir bene/t+ 6o, t!e t!ird )ine &osse duMargau' e'ists out )!at )as left after blending t!e /rst and second )ine+

%.1.1.3. 5ugmented ,roduct

(ugmented product is t!e non-p!ysical part of t!e product+ !e augmentedproduct is an important )ay for C!teau Margau' to tailor t!eir core andoractual product to t!e needs of an indi#idual customer+

;+1+2+Product positioning strategy

Page 19of 32
http://www.marketing91.com/pricing/http://www.marketing91.com/pricing/


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Marketing plan, Case:By: group 1, from 2-IBM3Publication date: 2t!"o#ember, 2135ooking at t!e productmarket grid, C!teau Margau' could easily identify t!e

product positioning strategy+ !is is due to t!e t!ird )ine of C!teau Margau'and t!e distribution to t!e Anited 6tates of (merica+ Moreo#er, by looking at t!eproductmarket grid C!teau Margau' could easily decide )!ic! strategy t!eyare going to apply+

%.1.2.1. ar!et De$e'opment

&osse du Margau' is a ne) )ine !o)e#er, it is still an e'isting product+ Inaddition, C!teau Margau' )ill be entering a ne) market, )!ic! is t!e Anited6tates of (merica+ !at is )!y C!teau Margau' c!ose for t!e marketde#elopment strategy+

!ere are t!ree approac!es for C!teau Margau' to de#elop t!e market+ irst,t!ere is t!e e'pansion of t!e distribution c!annels+ Besides t!e e'pansion, t!ereis also t!e selling in ne) locations+ 5ast but not least t!e identi/cation of t!epotential users+

;+2+ Place

It is best for C!teau Margau' to enter t!e Anited 6tates of (merica becauset!e A+6+ market s!o)s great potential+ In t!e Anited 6tates, t!ere is a markedcorrelation bet)een t!e tendency to drink )ine and #arious demograp!ics+ inedrinkers in t!e A+6+ tend to be older, !a#e !ig!er disposable income, greatereducation le#els, and are often female+

;+2+1+A+6+ Market

ine sales in t!e A+6+ from all production sourcesXCalifornia, ot!er A+6+states and foreign countriesXincreased 2O from t!e pre#ious year to a ne)record of 3@+1 million ;-liter cases )it! an estimated retail #alue of G3


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;+3+ Price

&osse du Margau' is priced )it! t!e competition in mind+ !e C!teauMargau' is setting !ig! prices to s!o) its lu'ury andor prestige+ C!teau

Margau' is not attempting to ac!ie#e t!e goals of oLsetting lo) prices by selling!ig! Huantities of products because t!ere is only a limited amount a#ailable fort!e t!ird )ine+

!e t!ird )ine )ill !a#e a Parker score of ; and )ill be sold for G;;, -, )!ic!is less t!an t!e regular C!teau Margau' )ine+ !e t!ird )ine &osse du Margau')ill be priced competiti#ely, oLering a good #alue against t!e competition suc!as C!teau 5atour+

;+3+1+Pricing 6trategy

%.3.1.1. ix o0 ,remium ,ricing : ,sycho'ogica' ,ricing

C!teau Margau' uses a premium pricing strategy to establis! a price !ig!ert!an t!eir competitors, suc! as C!teau 5atour+ Premium pricing strategy can beeLecti#ely used )!en t!ere is somet!ing uniHue about t!e product suc! as t!escarcity of t!e t!ird )ine+ urt!ermore, )!en t!e business !as a distinctcompetiti#e ad#antage suc! as C!teau Margau'+ C!teau Margau' also uses apsyc!ological pricing strategy+ C!teau Margau' )ill sell t!e t!ird )ine for G;;, -,)!ic! is psyc!ologically less in t!e minds of consumers t!an G1, -+ ( minordistinction can make a big diLerence+

;+


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importers, and merc!antsimporters )ill be in#ited to taste t!e ne) )ine+ Criticssuc! as obert Parker 9r+ of t!e Parker 6core, 9ames Moles)ort! of t!e ine6pectator and 9anice obinson of t!e inancial imes )ill also be in#ited+ !is )illbe one of t!e met!ods, )!ic! C!teau Margau' )ill be applying in order to gett!e attention of t!e media and people+

;+


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!e ne) ent!usiasts )ill be, as t!e ent!usiasts are for t!e /rst and second)ine, t!e biggest s!are of t!e customers of t!e t!ird )ine+ !ese ne) ent!usiastsalso like to spend a lot of time )it! friends and drink )ine+ !e big diLerence!ere is t!at t!ere )ill be a lot more ne) ent!usiasts, because of t!e price of t!et!ird )ine+ !is can also cause many $old% ent!usiasts to buy anot!er brand, as

t!e t!ird )ine )ill become more of a $normal% )ine, since more customers )illbuy it+

;+


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Marketing plan, Case:By: group 1, from 2-IBM3Publication date: 2t!"o#ember, 213C!teau Margau' !ad decided t!at t!e t!ird )ine )ould be 2O of t!e total

production+ 6o t!e /rst and second )ine makes up for t!e rest of t!e production,)!ic! is O+ !e amount of cases and bottles of t!e t!ird )ine: &osse duMargau' is calculated as follo):

ine 1 Z ine 2 T O 3+ O ' 2O T Cases Cases ' Bottles in 1Case ' Price T e#enue 21"+00e d,M*,x

2(14 2(15 2(16

End 31st of

December

End 31st of

December

End 31st of

December

e#enue G+;1+, G12+


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out of t!e ;+ bottles and t!e label prints+ !e cost of sales !as a total ofG28+, -+

!ere are also t!e distribution costs, )!ic! are G4+, - and it consistsmainly out of safely s!ipping t!e goods from rance to t!e A+6+ (part of t!edistribution costs t!ere is also t!e promotion costs+ !e promotion costs are

related to t!e tasting ritual, )!ic! )as especially organi.ed for t!e t!ird )ine+!e promotion costs include t!e in#itations, transportation of all t!e in#itedpeople, furniture, entertainment, food etc+ !e promotion costs are G1++, -+In addition, t!ere is anot!er cost factor, )!ic! is #ery important and keeps t!e 8employees of C!teau Margau' moti#ated+ !ese important costs are t!e )ages+

!e )ages in t!e /rst year counts for 12 mont!s+ Moreo#er, t!e )ages arecalculated as follo)ing: E3 ' 12F ' 8 T G 2+42+, -+ (nd last, t!ere are t!eA+6+ ta'es, )!ic! are usually 11,824O+ 6o, t!e ta'es are calculated as follo)ing:+@4+ ' , 11824 T G1+


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functional-le#el strategy+ !en used t!ese strategies in t!e rig!t )ay you couldmake a turno#er of appro'imately 13, million dollar for 3 years+

it! t!is t!ird )ine C!teau Margau' !as a c!ance to gro) in t!e (merican)ine market and increase t!eir market s!are+ Because, t!ere is a gro)ingdemand for a ne) !ig! Huality )ine but also for a more aLordable C!teau

Margau' )ine, but to diLerentiate t!emsel#es to t!e competitors to be slig!tlymore e'pensi#e+ It is essential for t!e success of C!ateau Margau', t!at t!e t!ird)ine )ill be a#ailable again to t!e loyal customers+ !at means t!at it is ourresponsibility to make t!e )ine a#ailable to not only t!e traditional market but tone) segments as )ell+

o conclude, t!is t!ird )ine of C!teau Margau'%s: &osse du Margau'K s!ouldbe introduced in t!e Anited 6tates because t!is could be t!e )ay to reac!C!teau Margau'%s core customers in t!e Anited 6tates+ it! a positi#e eLect ont!e brand image, because t!eir still more e'pensi#e t!an t!e competitors, )!ilet!ey still produce a !ig! Huality )ines+ Moreo#er, selecti#e distribution maintainst!e e'clusi#ity of t!e brand+

12. S+,*-e 0)

Index+ En+d+F+ etrie#ed from 0rganisation Internationale de la =igne et du =in:!ttp:)))+oi#+intoi#cmsinde'

Mike =eset!, P+ e+ E2, (pril 4F+ ;hat are wine enthusiasts 'oo!ing 0or


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"*eV*e)0

84OCabernet6+,2O Merlot,3O Cabernet+2O Petit=erdot

84OCabernet,2O Merlot


28/32

Marketing plan, Case:By: group 1, from 2-IBM3Publication date: 2t!"o#ember, 213)ere #ery professional in t!e )!ole process+ !is case )as more enNoyable)!ile reading it and t!is ga#e me more incenti#es in t!e process of makingt!e report+ !e group )orked toget!er like a real team and I !ope t!is )illlead us to a good grade+&*en) ?ene* "*d

e

S:+*) E/,)+n

K* &d* 7arim )orked !ard on t!e plan andcooperated )ell )it! t!e )!olegroup+

'*+ &+,/ 9amiro did a great Nob on t!e e'ternalanalysis+ is calculations )ere spoton+

:e< "e,=* ^a!eb did an e'cellent Nob+ (gain t!ebudget )as clear and e'plained #ery)ell+

M+:ed e":+,-:

Mo!amed )as ent!usiastic about t!eproNect and )orked )ell )it! t!e

tea +K*n &*+ee 7yran did a good Nob on t!e plan and

really broug!t t!e group toget!erduring t!e process+

Personal *#aluation: Brent einerI liked t!is case more t!an t!e last one+ I learned a lot more of t!ec!aracteristics of t!e )ine industry+ I !ad diQculties )it! some of t!e parts I!ad to make, but I !ope it is suQcient enoug! for a good grade+ !e group)orked )ell toget!er and t!e group discussions !elped us make t!e planco!erent+

:e< "e,=* "*de

S:+*) E/,)+n

K* &d* ,4 7arim did a #ery good Nob on t!eassignment, )!ic! !e recei#ed+ e/nis!ed e#eryt!ing at t!e day of t!edeadline, )!ic! !e recei#ed fromus+

'*+ &+,/ ,4 9amiro !as put a lot of eLort )it!int!e marketing plan+ e )as a #eryacti#e member of t!e team and it)as #ery easy to communicate )it!

eac! ot!er+&*en) ?ene* ,4 Brent is a #ery organi.ed )orker,)!ic! enables !im to )ork s)iftly,precise and eLecti#ely+ (nd a part oft!at, Brent is also a #ery good team)orker+

M+:ed e":+,-:

,4 Mo!amed is a great team )orker+ Itis #ery easy to contact !im and askfor !is opinion on certain topicsrelated to t!e case+ In addition, !e isal)ays #ery t!oroug!, )it! !isopinions+

Page 2%of 32


29/32

Marketing plan, Case:By: group 1, from 2-IBM3Publication date: 2t!"o#ember, 213K*n &*+ee ,4 7yran !as great analytical abilities+

e !as s!o)n a great amount ofeLort and responsibility during t!ecomplete marketing plan+

Personal *#aluation: ^a!eb &euNar

I !a#e learned a lot during t!e C!ateau Margau' case+ It )as a #eryinteresting case+ I did not kno) a lot about )ines because I am not a drinker+"e#ert!eless, I !a#e learned about t!e diLerent types of lu'ury )ines+ o)t!e pricing of )ine is conducted EParker scoreF+ o) t!e unit is measuredEcasesF+ (nd because of t!is case I !a#e increased my kno)ledge about )ineand am able to talk about )ine )it! ot!er indi#iduals+ 0nce again, I )as ableto impro#e myself due to t!e pre#ious marketing plans+ (nd it )as a greatpractical and t!eoretical e'perience, and I enNoyed myself+

M+:ed e":+,-:

"*de

S:+*) E/,)+n

K* &d* e is a good team )orker, al)aystries to keep t!e peace in t!e group+5ikes to )ork organi.ed, isdisciplined and can )ork #ery goodon !is o)n+

'*+ &+,/ orks #ery eQcient is al)ayspresent and acti#e during meetings+ants clarity about e#eryt!ingbefore )orking, so does not make alot of mistakes and )orks fast+

:e< "e,=* Is al)ays ent!usiastic, does notmind to take make more )ork on+

urt!ermore, is supporti#e to ot!ersand is al)ays a#ailable to ans)eryour Huestions+

&*en) ?ene* orked !ard, al)ays made !imselfa#ailable, e#en if !e !ad a lot of)ork of !imself+ (l)ays )antscertainty before !e starts )orkingand !e does not bounce back to askHuestions+

K*n &*+ee Did a lot of )ork, seemed certainabout !is )ork and al)ays gi#esad#ice and feedback to ot!ers+ (lso

!as no problem !andling feedbackdirected to !im+

Personal e#aluation: Mo!amed el &!ouc!I found t!e case more clear t!an t!e pre#ious case, )!ic! looked a bit c!aotic+

!e group and I tried to consider all t!e feedback for t!is case+ *#eryone)orked !ard and !elped eac! ot!er, )!en t!ey )ere done+ I feel )e did abetter Nob on t!is marketing plan t!an on t!e pre#ious one, because )e no)kno) e#en clearer )!ere t!e emp!asis lies and )!at is less important at t!emarketing plan+ o conclude, )e )orked #ery eQcient and eLecti#e and t!at is)!y I t!ink )e did a better Nob t!an t!e pre#ious )eeks+

'*+ &+,/ "*de S:+*) E/,)+n

Page 29of 32


30/32

Marketing plan, Case:By: group 1, from 2-IBM3Publication date: 2t!"o#ember, 213&*en) ?ene* 8,4 =ery organi.ed )orker and al)ays

/nis!ed early )it! !is tasks+ I am#ery positi#e about !is resultsregarding t!is proNect+

K* &d* 8,4 (l)ays tries to !elp, resulting in a

better o#erall grade for t!e group+ issupporti#eness !elped members ofour group to /nis! t!eir )ork+ iso)n )ork )as also good+

:e< "e,=* 8,4 ^a!eb al)ays tries to assist t!e teammembers+ is part )as /nis!edbefore t!e deadline and t!e )ork )asclear+ !e budget )as e'plained #ery)ell+

M+:ed e":+,-:

8,4 ard )orker )!o plans )!at !e )antsto accomplis! in t!e future+ I t!ink !istasks )ere suQciently ful/lled+

K*n &*+ee 8,4 7yran al)ays tries to moti#ate t!egroup and e'plains )!at eac! person!as to do )!en it is not entirely clear+is o)n pieces t!roug!out t!isproNect )ere good+

Personal *#aluation: 9amiro Bou#aPersonally, I !a#e learned t!at in t!ese types of proNects it is e'tremelyimportant t!at during t!e process, you and your team communicate becauset!e plans t!at are made in t!is proNect !a#e to be co!erent and connect )it!eac! ot!er+

K*n &*+ee "*de S:+*) E/,)+n&*en) ?ene* (l)ays tries to moti#ate t!e group

and e'plains )!at eac! person !as todo )!en it is not entirely clear+ iso)n pieces t!roug!out t!is proNect)ere good+

K* &d* (l)ays tries to !elp, resulting in abetter o#erall grade for t!e group+ issupporti#eness !elped members ofour group to /nis! t!eir )ork+ iso)n )ork )as also good+

:e< "e,=* =ery organi.ed )orker and al)ays/nis!ed early )it! !is tasks+ I am

#ery positi#e about !is resultsregarding t!is proNect+

M+:ed e":+,-:

Mo!ammed formed t!e obNecti#es)ell and )as al)ays present duringt!e meetings+ e also )orked )ell)it! t!e deadlines set+

'*+ &+,/ !en assigned a task, !e does notcomplain and does t!e )ork+ I t!ink!is tasks )ere suQciently ful/lled+

Personal *#aluation: 7yran Broeke

I t!ink our group did a better Nob on t!e marketing plan compared )it! lasttime+ e tried to use all t!e ad#ice and feedback )e got at t!e pre#ious

Page 3(of 32


31/32

Marketing plan, Case:By: group 1, from 2-IBM3Publication date: 2t!"o#ember, 213marketing plan+ 0#er all )e did a good Nob, t!e ones )!o /nis!ed earlier!elped t!e ot!er ones, especially t!e marketing mi' and t!e budget took a lotof time, but once again, I t!ink )e !a#e made a great marketing plan+

Page 31of 32


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13+3+ (ppendi' 3

13+3+1+ &roup cooperation report

Di#iding tasks and !a#ing good communication )it!in your group is essential

)!en it comes to group assignments+ !is is not!ing diLerent )it! t!is marketingplan+ !erefore, agreements !ad been made in order to be as eLecti#e andeQcient in t!e creation of t!e marketing plan+ !ese agreements came in t!eform of a contract )!ic! )as signed by all indi#idual members of t!e team andt!e lecturer+

0ne of t!e key elements of t!is group assignment )as t!e )ay )ecommunicated )it! eac! ot!er during t!e meetings+ During t!e )eek,appointments )ere made )!ere t!e group )ould go t!roug! t!e progress and )e)ould !elp eac! ot!er in order to be as successful as our group can be+ Belo)you )ill /nd t!e details about t!ese meetings+1 0ur group !ad set up a contract+ !at contract stated t!at t!ere )ould !a#e tobe at least t)o formal meetings in one )eek )!ere )e )ould meet in person+ !egroup !ad t)o )eeks to prepare t!e marketing plan, !o)e#er, in #ie) of t!e factt!at t!e deadline !ad been mo#ed one )eek our group !ad t!e c!ance to meett)o times more t!an )e !ad originally planned+

D)e0 ee)n0B21 0ctober 213: 24 minutes28 0ctober: @ minutes11 "o#ember 213: @ minutes22 "o#ember 213: 3 minutes23 "o#ember 213: 3 minutes2< "o#ember: @ minutes

2 $*e0en-e A

pbc case 3 final version 2

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