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CHATEAU MARGAUX

CASE STUDY

AGENDA

Introduction
Situation Analysis
Problem/Decision Statement
Identification of Alternatives
Critical Issues
Analyses
Recommendations

CHATEAU MARGAUX

MISSION STATEMENT

A brilliantly consistent wine of stunning


grace, richness and complexity, often called
the most seductive and elegant of all
Bordeaux wines
Greatness comes from the perfect mix of
four things:

A grand terroir
The right grape
Variety
Climate
High-quality human work

SITUATION AUDIT - HISTORY

Andre Mentzelopoulos purchased the chateau


in 1977

Located in the Bordeaux region, which


produces the most prestigious wines in France

Officially classified in 1855 as a first growth


(one of only 5 in the Bordeaux region)

Andre died in 1980 and his daughter Corinne


(then 27 years old) inherited the estate

SITUATION AUDIT - HISTORY

Corinne hired a new General


Manager, Pontallier, who in
time became one of the
worlds best wine experts

They transformed Chateau


Margaux from the worst to
one of the best first growths

Mentzelopoulos period one


of the biggest achievements
in Bordeauxs history

SITUATION AUDIT BUSINESS MODEL

80 hectares devoted to vines


for production of red wines

12 hectares devoted to vines


for white wines

170 hectares to mind the


forests and meadows for the
39 cattle that produced
fertilizers for the vineyards

70 production people, 4 with


administrative functions

SITUATION AUDIT BUSINESS MODEL

Produced an average of 150,000 bottles per


year of its first wine, Chateau Margaux

200,000 bottles of its second wine, Pavillion


Rouge du Chateau Margaux (grapes used from
discarded grapes of first wine)

33,000 bottles of its white wine, Pavillion


Blanc du Chateau Margaux
10% of grape production sold in bulk to other
wine merchants

SWOT ANALYSIS
Strengths
Well-established prestige brand
High profit margins
Demand for first-growth wines is
strong and growing

Weaknesses
No knowledge of customer base
Marketing is outsourced to
Bordeaux wine merchants
No capacity to increase production
without weakening brand

Opportunities
Increasing demand worldwide
New type of customer: the luxury
consumer in Asia and Russia
New distribution channels,
especially online sales

Threats
French wines losing market share
worldwide
Connoisseurs tastes shifting
towards different style of wine
(heavy tannins) that aren't easily
produced in Bordeaux

PROBLEM/DECISION STATEMENT

Should Chteau Margaux take over


distribution from the Bordeaux merchants?
Should Chteau Margaux add new, less
expensive wines to its portfolio?
Should Chteau Margaux build marketing
and sales capacity?

PROBLEM/DECISION STATEMENT

CRITICAL ISSUES

France is losing wine market share to


new world countries, such as Australia,
Argentina, South Africa and New Zealand

Connoisseurs could shift their tastes to


new world wines

Watching some competitors expanding

Company has no structure besides


production. No Sales, no Marketing.

CRITICAL ISSUES

Todas las ventas se realizan a travs del mismo canal


desde 1800.
La expansin podra poner en peligro la marca de
Chateau Margaux.
Produccin limitada de 200.000 botellas al ao y la
imposibilidad de expandirlo, debido a las regulaciones
estrictas en Burdeos.
Mercado poda ver Chateau Margaux puramente como
un producto de lujo.
Sin un registro de base de cliente final.

Competidores

Lafite-Rothschild
Mouton-Rothschild
Chateau

Latour
Haut-Brion

IDENTIFICATION OF
ALTERNATIVES

Tome un mayor control de la distribucin o


asociarse con distribuidores de emplear un
programa de fidelizacin para los clientes actuales.

Desarrollar un plan de marketing para un negocio


de turismo.

Aumentar la lnea de productos para satisfacer las


demandas de otros consumidores

Status quo

ANALYSIS

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

RECOMMENDATIONS
Status

quo

1.

La marca de Chteau Margaux es uno de sus


activos ms fuertes; por diluirlo?
2.

El actual sistema de distribucin funciona bien.

3.

Direccin de la Sociedad est ligada a la tradicin


y no est listo para innovar.
4.

La demanda est creciendo sin la accin de


Chteau Margaux

LO QUE REALMENTE SUCEDI

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