PBC Case 3 Final Version 2

Marketing plan, Case:
By: group 1, from 2-IBM3

Publication date: 20th November, 2013
Gosse du Margaux
A name which in English translates into
Child of Margaux.
A wine that is created by Chateu
Margaux,
one of the four wines that received
the highest rank of Premier Cru.
The third wine carries the same
prestige and luxury that the Margaux
clienteles adore. Although the price is
moderate paralleled to the existing two
wines, the consumers recognize the
definition of
child of Margaux.
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Index
INDEX....................................................................................................... 3
1.
INTRODUCTION...................................................................................5
1.1.
1.2.
COMPANY INFORMATION.......................................................................................5
PROBLEM STATEMENT.......................................................................................... 5
2.
EXECUTIVE SUMMARY.........................................................................6
3.
EXTERNAL AND MARKET ANALYSIS......................................................7

3.1.
MARKET ANALYSIS...............................................................................................7
3.1.1. Import and Export......................................................................................7
3.1.2. Customer Trends........................................................................................7
3.1.3. Demographics............................................................................................ 7
3.2.
MAJOR SEGMENTS...............................................................................................8
3.2.1. Fine wine buyers........................................................................................8
3.2.2. Enthusiasts................................................................................................. 8
3.2.3. Image seekers............................................................................................ 8
3.2.4. Savvy Shoppers.......................................................................................... 9
3.2.5. Traditionalists............................................................................................. 9
3.2.6. Satisfied sippers......................................................................................... 9
3.2.7. Overwhelmed............................................................................................. 9
3.3.
COMPETITOR ANALYSIS......................................................................................... 9
4.
INTERNAL ANALYSIS...........................................................................9
4.1.
TARGET MARKET................................................................................................. 9
4.2.
POSITIONING.................................................................................................... 10
4.3.
COMPETITIVE................................................................................................... 10
4.3.1. Competitive advantage............................................................................10
4.4.
MARKETING MIX............................................................................................... 10
4.4.1. Product..................................................................................................... 10
4.4.2. Place........................................................................................................ 10
4.4.3. Price......................................................................................................... 10
4.4.4. Promotion.................................................................................................10
4.5.
SALES & PROFITS............................................................................................. 11
4.5.1. Sales........................................................................................................ 11
4.5.2. Profits/Loss............................................................................................... 11
5.
SWOT ANALYSIS................................................................................12
5.1.
6.
CONFRONTATION MATRIX...............................................................12
SEGMENTATION, TARGET MARKET, POSITIONING.................................13
6.1.
TARGET MARKETS, SEGMENTATION.......................................................................13
6.1.1. Enthusiasts...............................................................................................13
6.1.2. Image seekers.......................................................................................... 13
6.1.3. Savvy shoppers........................................................................................13
6.1.4. Traditionalists........................................................................................... 13
6.1.5. Satisfied sippers.......................................................................................13
6.1.6. Overwhelmeds......................................................................................... 14
6.2.
FUTURE PROSPECT............................................................................................ 14
6.3.
NEW SEGMENTS............................................................................................... 14
6.3.1. New image seekers..................................................................................15
6.3.2. New enthusiasts.......................................................................................15
6.3.3. New traditionalists....................................................................................15
6.4.
POSITIONING.................................................................................................... 15
7.
CORPORATE STRATEGY......................................................................15
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7.1.
7.2.
7.3.
8.
OBJECTIVES......................................................................................16
8.1.
8.2.
9.
CORPORATE-LEVEL STRATEGY..............................................................................15
BUSINESS-LEVEL STRATEGY.................................................................................15
FUNCTIONAL-LEVEL STRATEGY..............................................................................16
SHORT-TERM GOALS.......................................................................................... 16
LONG-TERM GOALS........................................................................................... 16
MARKETING MIX...............................................................................16
9.1.
PRODUCT........................................................................................................ 16
9.1.1. Three levels of Product:............................................................................16
9.1.2. Product positioning strategy.....................................................................17
9.2.
PLACE............................................................................................................ 17
9.2.1. U.S. Market...............................................................................................17
9.2.2. Product Life Cycle: Growth Stage.............................................................18
9.3.
PRICE............................................................................................................. 18
9.3.1. Pricing Strategy........................................................................................18
9.4.
PROMOTION (4 ELEMENTS OF PROMOTIONAL MIX)..................................................19
9.4.1. Advertising............................................................................................... 19
9.4.2. Public Relations........................................................................................19
9.4.3. Corporate Image......................................................................................19
9.4.4. Direct Marketing.......................................................................................19
9.4.4.3. New image seekers...............................................................................20
9.4.4.4. New enthusiasts....................................................................................20
9.4.4.5. New traditionalists................................................................................20
9.5.
DISTRIBUTION.................................................................................................. 20
9.5.1. Distribution Strategy................................................................................20
10. BUDGET........................................................................................... 21
10.1. PROFIT & LOSS ACCOUNT..................................................................................21
10.1.1. Fiscal Year 2014....................................................................................21
10.1.2. Fiscal Year 2015....................................................................................22
10.1.3. Fiscal Year 2016....................................................................................22
11. RECOMMENDATIONS.........................................................................22
12. SOURCE LIST....................................................................................23
13. APPENDIXES.....................................................................................23
13.1. APPENDIX 1..................................................................................................... 23
13.2. APPENDIX 2..................................................................................................... 24
13.2.1. Peer assesment....................................................................................24
13.3. APPENDIX 3..................................................................................................... 28
13.3.1. Group cooperation report......................................................................28
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1. Introduction
1.1.
Company information
Up until this point, the estate had been selling two red wines, a first wine
whose retail price often exceeded $1000 per bottle, and a second wine whose
retail price often exceeded $200 per bottle. We, from the management team, are
considering and preparing to launch a new third wine: Esprit du Chateau
Margaux, made from the estates production not used to make the first two.
Chteau Margaux is one of the most popular exclusive, luxury, popular,
international wine producer, with a big market share in Europe and in more
places in the world. The current situation is that Chteau Margaux sells two high
quality and highly priced exclusive wine. The first wine has a Parker Score of 99
out of a 100 and a average price of $1.280. The second wine has a Parker Score
of 93 out of a 100 and average price of $185.
1.2.
Problem statement
This marketing will display the research that has been done to solve the
following problem: How could we solve the loss of the core customers in the
United States?.
To solve this problem we explain some of the background information, the
current situation and gives a future perspective for Chteau Margaux. We
introduced a third bottle of wine, under the brand name of Chteau Margaux, and
this bottle will be called: Gosse du Margaux.
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2. Executive summary
Chteau Margaux is currently in the market of the winery. As of 2013, the
global wine market was valued at generating between $60-65 billion in annual
revenues. The amount of bottles being produced was estimated to be over 30
billion. The production of wine has seen a shift from being produced in the Old
world to an increasing production of wine in the New world. This shift created
an increasingly upsweep in the global production of wine which resulted in a huge
supply of wine to the market. This development forced many wine producers to
lower their prices in order to be able to compete in the wine market.
Chteau Margaux will be expanding its market with a third wine titled Gosse
du Margaux.
Chteau Margaux offers three types of wine, the first wine being the best and
the third being the least good. The third wine is however, of such high quality
that it is considered good enough to sell. The United States of America has a
population of over 300 million people and because the wine industry is currently
booming in the US; there are many potential customers. To create growth in the
US market, Chteau Margaux first needs to introduce the third wine to this
market. With the new product development, Chteau Margaux will increase its
market share.
Objectives
The objectives related to the launch of the third wine are separated in short
and long term. Introducing the third wine will be done with the introduction price
of 99 dollar in the first quarter of 2014. The desired quantity sold is 600 cases per
month in the US, creating revenue of 8 million dollar at the end of the first fiscal
year. The predicted increase in market share is 2% after the first fiscal year and
10% at the end of 2016. The sales will increase during the second year from 600
to 1000 cases per month. The sought increase will lead to revenue of 8 million
dollar during the second year from 10 to 16 million dollar a year.
Expenses and profits
The total operating expenses for the year 2014 is $4.020.000, 00. These
expenses cover three main parts, specifically, distribution, promotion and the
wages. The expected retained profit at the end of 2014 is $3.575.302, 50.
This business plan gives a clear explanation of the strategies which were set,
to be precise a corporate strategy, which consist out of a corporate-level, a
business-level and a functional-level strategy. When used in the right way these
strategies can be responsible for a turnover of approximately 13, 8 million dollar
for 3 years.
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3. External and market analysis

3.1.
Market analysis
Chteau Margaux is currently in the market of the winery. As of 2013, the

global wine market was valued at generating between $60-65 billion in annual
revenues. More than hundred thousands of wineries generated these revenues
from corner to corner globally. The amount of bottles produced were estimated to
be over 30 billion, varying from low-priced supermarket wines costing around $3
to upwards $3000 bottles in expensive restaurants.
The production of wine has seen a shift from being produced in the Old
world (France, Italy, Spain) to an increasing production of wine in the New
world (America, Argentina, Australia, etc.). This shift created an increasingly
upsweep in the global production of wine which resulted in a huge supply of wine
to the market. This development forced many wine producers to lower their
prices in order to be able to compete in the wine market. This threat due to the
above-mentioned shifts resulted in governments protecting their domestic wine
production. These protection methods ranged from subsidizing to restrictions on
vine planting.
3.1.1.Import and Export

The global wine export is still dominated by the previous mentioned Old
world countries even though the shift had occurred. The leading wine importers
in the world are the UK and Germany, followed by the United States. The highend bottles mentioned in the first paragraph of this chapter are exported to areas
where there is a high willingness to pay in contrary to the low-end wine which is
usually exported in bulk to large retail chains. Those large retail chains import
different low priced wines in order to bottle it their selves and sell it under their
own private label. This way of importing and reselling it became an increasingly
popular trend in numerous countries.
3.1.2.Customer Trends
Wine was for many years tied with traditions and everyday life happenings
such as families dining together. These activities however, have seen many
changes since the typical family structures died out the last decades. The
previous trend was one of the motives for the decline in wine consumption. Wine
consumption became more occasion-driven and takes place outside of
consumers households more and more often.
3.1.3.Demographics
There are various correlations between the wine consumption and numerous
demographics. In the US, older and educated people consume United Kingdom
and Australia the consumption of wine for the largest segment. An additional
characteristic is that the biggest part is female and well educated.
3.1.3.1. Location
The location plays a big role in the spending behavior. In the US half of all
wine purchases (by $ amount) were made in so-called on-premise (bars and
restaurants). These venues sell the wines for a high price, which causes the high
amount of purchases by dollar amount. If you concentrate on the actual, it
represents only 20% of the total volume of wine being sold in the US. The
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remaining 80% was sold in off-premise (liquor stores, grocery stores, fine wine
shops etc. Another interesting switch in wine sales is that Internet retailers are
getting increasingly more active. The consumption of wine in China grew a lot
over the last couple of years. The consumption was valued to be bigger than that
of the US by three times. Wealthy Chinese citizens increasingly showed more
awareness in wine. In 2008, the Chinese government eliminated all taxes and
restrictions on the import of wine. The elimination of these restrictions created a
huge demand of wine (2 billion bottles in 2012) and this trend led China to be the
fifth largest market in the world by volume pushing the UK of its place.
The graph below1 shows the enormous growth in the Chinese consumption of
wine from 2000 until the forecasts of 2012. There is not one other country, which
has seen such a relative growth in wine consumption. The previous paragraphs
explain why these developments occurred.
3.2.
Major segments
Fine wine buyers (connoisseurs, luxury buyers)

Enthusiasts
Image seekers
Savvy shoppers
Traditionalists
Satisfied sippers
Overwhelmed
3.2.1.Fine wine buyers

3.2.1.1. Connoisseurs
A connoisseur is a wine consumer that is knowledgeable about the different
types of wine on the market. They appreciate high quality and distinguish wine
by the different regions.
3.2.1.2. Luxury buyers
1 Source: http://www.oiv.int/oiv/cms/index
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A luxury buyer is a wine consumer that shortages deep knowledge of different
types of wine. They usually consume wine in order to represent an image of
wealth.
3.2.2.Enthusiasts
An enthusiast buyer is someone whom portrays passion and knowledge when
it comes to wine consumption.
3.2.3.Image seekers
Drinking wine is a status symbol for an image seeker. The knowledge is basic
and they are driven by wine trends. Choosing a wine bottle is often based on the
idea of expensive is better.
3.2.4.Savvy Shoppers
Consumers that enjoy shopping for wine. They are usually coupon users and
take pride in getting discounts for wine bottles.
3.2.5.Traditionalists
These consumers do not switch to new brands. They prefer a wide variety of
well-known brands and enjoy wineries that have perfected the art of winemaking
during a long time.
3.2.6.Satisfied sippers
They are not very knowledgeable about different types of wine. The
experiences of buying the perfect wine and combining it with dishes is
something they do not care about.
3.2.7.Overwhelmed
These consumers find the selection of wine to massive. They prefer simple
and easy wine descriptions and wont purchase a bottle if the information is to
confusing.
3.3.
Competitor analysis
The competitive advantage for wine producers used to be all about which
types of grapes were produced and what type of vineyard one producer had.
Now however, it is all about economies of scale and the marketing around a
companys brand. The numerously mentioned Old world producers still have the
competitive advantage when it comes to creating customer value around the
tradition and heritage aspects. The global shifts however, have made it very
difficult for old world producers to depend solely on tradition and heritage since
the new world producers are gaining the same prestige.
When you look at the manner in which the wine producing countries are
divided all over the world you will find that the market is extremely fragmented.
The 20 leading wine producers are based in 10 different countries all over the
world; however, many wine companies are looking for developing regions in order
to produce.
(See appendix 1.)
4. Internal Analysis
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4.1.
Target market
The consumers of wine have been segmented into six groups:

1. Enthusiasts
2. Image seekers
3. Savvy shoppers
4. Traditionalists
5. Satisfied sippers
6. Overwhelmed
Chteau Margaux offers three types of wine, the first wine being the best one
and the third being the least good. The third wine is however, of such high quality
that it is considered good enough to sell. The wines are sold at relatively normal
to high prices. By making this choice, enthusiasts, traditionalists and Image
seekers are targeted the most. Enthusiasts are very passionate about wine and
its background, and the first wines have a big reputation amongst the
enthusiasts. Image seekers could be linked with the luxury consumers which
buy wine more so to show their wealth rather than because of their interest in
wine.
4.2.
Positioning
The wine industry is easily influenced by certain factors such as critics. That is
why Chteau Margaux has used several occasions to uplift their brands status.
They do this by organizing events such as wine tastings and inviting important
people such as the ambassador of china. By doing this they raise the interest of
possible Chinese consumers. Because of the actions that Chteau Margaux has
taken, they lost popularity within France itself but have gained popularity
internationally in places such as china. In china there are the so called luxury
consumers that are interested in the wine because of its price and prestigious
background.
Chteau Margaux brand used to position itself as a brand that concentrated
on the people that were interested in the background and details of the wine.
Ngociants however, are being used in order to sell the wines to luxury
consumers with no such interest which means that in the minds of luxury
consumers Chteau Margaux is just another expensive wine that shows how
wealthy they are.
4.3.
Competitive
4.3.1.Competitive advantage
It is correct to say that Chteau Margaux thinks ahead of its time. The
competitive advantage Chteau Margaux possesses, started to make shape in
the 1980s when the general manager retired and Pontallier was hired. The
execution of certain practices that were not being applied yet in the 1980s were
applied later on because of the influence of Pontallier.
The way this competitive advantage is described, is the urge to keep
improving the quality of their wine.
4.4.
Marketing mix
4.4.1.Product
Chteau Margaux is a very prestigious brand that is known for offering topnotch fine wines. They offer two main types of wine; the first growth and the
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second. The first growth is their main product. The second growth is also well
known.
The use of innovative and sophisticated methods to prepare their wine makes
them deserve a parker score of 99 for their first wine and a score of 95 for their
second wine. This illustrates how prestigious their wine is.
4.4.2.Place
Most of fine wines from Bordeaux are being distributed through ngociants.
These ngociants sell the wine further to consumers internationally. As already
mentioned, it is due to the ngociants that the buyers of Chteau Margaux wines
are partly from Russia and China.
4.4.3.Price
Chteau Margaux is selling two types of wine; the first and the second wine.
The First wine is priced at $1280 a bottle. The second wine is priced $185 a
bottle. Different factors influence these prices, such as the parker score and the
overall brand positioning of the wine brand.
4.4.4.Promotion
Chteau Margaux has promoted its brand through wine-tasting events that
were organized with the intention to receive feedback on their wine. These
events were created so that the wine that Chteau Margaux sells can be
evaluated by the tasters and in this way can be priced according to its taste and
future popularity.
4.5.
Sales & Profits
4.5.1.Sales
Chteau Margaux produces an average of 13000 cases of their first wine and
15000 cases of their second wine. It is stated that 80% of the total production is
being sold. The following calculations roughly show how many cases of wine are
sold, a case of wine consist of 12 bottles:
First wine: 13.000 x 12 x 0,8 = 124.800
Second Wine: 15.000 x 12 x 0,8= 144.000
4.5.2.Profits/Loss
Due to the changing prices of the two wines, each year a different amount of
turnover is made. Because of this, the amount of profit also differs each year. The
following table roughly shows the profit made by selling the first wine.
Year
2007
2008
2009
2010
2011
Price
442
528
1.122
917
502
Units
produced
156000
156000
156000
156000
156000
68.952.00
0
3.900.000
82.368.00
0
3.900.000
175.032.00
0
3.900.000
143.052.00
0
3.900.000
78.312.00
0
3.900.000
Turnover
Production
costs 2
2 The assumption is made that the production of a bottle of the first wine
costs 25
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Profit
65.052.00 78.468.00 171.132.00
0
0
0
139.152.00
0
74.412.00
0
The following table roughly shows the profit made by selling the second wine.
Year
2007
2008
2009
2010
2011
Price
Units
produced
141
119
124
172
119
156000
156000
156000
156000
156000
Turnover
21.996.00
0
Production
costs 3
2.340.000
Profit
19.656.00
0
18.564.00
0
2.340.000
16.224.00
0
19.344.00
0
2.340.000
17.004.00
0
26.832.00
0
2.340.000
24.492.00
0
18.564.00
0
2.340.000
16.224.00
0
The following tableroughly shows the total amount of profit made each year
by selling the first and second wine:
Year
Profit first
wine
Profit second
wine
Total profit
2007
2008
2009
2010
2011
65.052.00
0
19.656.00
0
84.708.00
0
78.468.00
0
16.224.00
0
94.692.00
0
171.132.00
0
139.152.00
0
17.004.000
24.492.000
188.136.00
0
163.644.00
0
74.412.00
0
16.224.00
0
90.636.00
0
5. SWOT Analysis
3 The assumption is made that the production of a bottle of the second wine
costs 15
2.340.000
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Strenghts
Weaknesses
Sophisticated production process
No capacity to increase production,
High profit margins
without it having effects on the brand
Demand for first wines is already
Marketing is outsourced to 'ngociants'
Well established brand
strong but still growing
Opportunities
Growing interest in wine in and
New distribution channels
Not much knowledge of customer base
Threats
French wines losing market share globaly
Inconstancy of quantity of the left over
will be effective or not.
wine
Inconstancy of quality of the left over wine
outside of europe; US, china, australia.

Chateaux latour serves as a test to
know if holding back 100% of the wine

Luxury type customer in russia and
Attitude towards bordeaux wines by
sommeliers have turned negative
asia
5.1.
Confrontation matrix
The high profit margins that are achieved by Chteau Margaux make it
possible to experiment with new distribution channels, online sales in particular.
This is a good way to reach more customers and sell more products in this
technological age. Furthermore, the sophisticated production process make the
taste of the wine extraordinary; the wines that Chteau Margaux sells are popular
amongst many wine-lovers. The demand for Chteau Margauxs first wines is
already strong but still growing, not only local but also internationally. Chteau
Margaux is a well-established brand that is indeed very popular amongst the
luxury customers from Russia and China. However, not only the luxury
customers are interested in the wines that Chteau Margaux sells, the overall
interest in wine is growing in and outside of Europe. The US, China and Australia
in particular are finding more interest in wine. However, French wines are losing
their market share globally as the US and other countries produce wine
themselves. Moreover, there is a case of inconstancy concerning the quality and
quantity of the wine it is hard to meet the demands and standards of your
customer, which are not entirely clear to Chteau Margaux; their knowledge of
their customer base is rather insufficient. Another problem that goes hand in
hand with the inconstancy of the quantity of the wine produced by Chteau
Margaux is that there is no capacity to increase production without damaging the
brand. If Chteau Margaux decides to do so, connoisseurs could damage their
brand, which will influence the attitude towards Bordeaux wines. Connoisseurs
already have a negative attitude towards Bordeaux wines but the possibility is
there that if Chteau Margaux decides to buy bulk wine and sell that as their third
wine it will lose the respect from the connoisseurs even more.
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6. Segmentation, Target Market, Positioning

Chteau Margaux, as one of worlds most famous wines, is a luxury brand.
This is widely believed because of the high quality and the exclusivity of the
brand. The prices of Chteau Margaux differ per year, the years in which the wine
is seen as most tasteful and of a higher quality are more expensive. One of the
things the famous wine brand is known for is the way they are using the same
procedure and materials to produce the wine for over a decade. Furthermore,
since the 1800s the ngociants (or merchants/dealers) spared Chteau Margaux
owners from the commercial aspects of the business and let them focus on
winemaking. This optimizes the quality and the taste of the wines.
6.1.
Target Markets, segmentation
The consumers of wine are segmented into six groups:

Enthusiasts
Image seekers
Savvy shoppers
Traditionalists
Satisfied sippers
Overwhelmeds
6.1.1.Enthusiasts
Although the enthusiasts only form approx. 10% of the total customers, they
still spend the most of all other customers (a quarter of total spending). The
enthusiasts appreciate a good wine and like to enjoy wine with friends.
Furthermore, they have some knowledge about wine and they both buy well
known as unique wine selections.
6.1.2.Image seekers
The image seekers are usually wealthy people and buy the wine to show their
wealth. They do not have much knowledge about wines, and usually buy the
most expensive wines to impress their friends. The Internet is the most used
source for the image seekers to check out wine lists, for example, before he/she
goes to have a drink. They do this to impress their friends and pretend as if they
have much knowledge about wines. The image seekers also form a big part of the
total consumers for wine, with 20%.
6.1.3.Savvy shoppers
The savvy shoppers always seek for the less expensive wines and they do not
recoil to visit all the shops for discounts or the less expensive wines. They also
use many coupons and enjoy shopping for wine. At last, the savvy shoppers are
15% of the total wine-market.
6.1.4.Traditionalists
Usually have a couple of (or one) brand(s) which they tend to stick to, the
traditionalists are easily influenced by marketing efforts and prefer shopping at
retail places. This makes it easier for them to find the better-known brands, which
they also seem to take a liking to. The traditionalists have the same segment size
as the savvy shoppers.
6.1.5.Satisfied sippers
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Just like the traditionalists, the satisfied sippers do not like a lot of variation; in
fact, they usually buy the same brand they like. Satisfied sippers, unlike the other
segments, do not like the experience of buying wine and have no interest in
getting to know more about wines.
6.1.6.Overwhelmeds
The overwhelmeds like to play it safe, and that is why they always want
advice at what tastes the best. They do not look at the labels and rather get
information and base their purchase on that. If they do not get any information or
do not know a wine, they will probably leave it and search for a more secure
wine.
Exhibit 1.
6.2.
Future prospect
Chteau Margaux has a wide range of customers, varying from real wine
lovers to the (often rich) image seekers, who do it all for the fame. When
introducing the third wine, Chteau Margaux should focus most on the
traditionalists, since they are open for changes and are often looking for unique
brands. Expected is that the image seeker will be maintained no matter what,
since they do not really care about the taste or quality, but solely buy the wine as
a status symbol.
Furthermore, Chteau Margaux should consider pricing their new wine(s)
lower, to have more consumers buy it. Since Chteau Margaux has many
consumers, but lots of them have a rather small share of purchase. (See exhibit
1)
6.3.
New segments
The United States of America has a population of over 300 million people and
because the wine industry is currently booming in the US, there are many
potential customers. Furthermore, more and more young people are interested in
wine; the $30 billion business is also drawing attention to all kinds of other
segments in the population (e.g. celebrities) 4. Of course, the customers we seek
for the third wine in the United States are very different from the ones who are
interested in the first and second wine. Thus, the customers for the 3 rd wine
mostly consist of more savvy shoppers, people who search for the discounted or
4 http://www.news4jax.com/news/younger-generation-of-winedrinkers/-/475880/20706970/-/lduvbo/-/index.html
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less expensive wines and less image seekers, but the wine business growing
and with that also the segments.
Of course, the wine will not be sold at the normal wine sellers, but more
towards high quality restaurants. Nevertheless, the potential customers are still
high in size and although it will not (entirely) be the same brand, they will also
but the third wine.
The potential customers of the 3rd wine in the US can be divided into 3 main
segments;
1. New image seekers
2. New enthusiasts
3. New traditionalists
6.3.1.New image seekers

These new image seekers will have the same characteristics as the old
ones. However, now the wine is less expensive and the third wine is not from the
main brand (Chteau Margaux), this will attract also the upcoming image
seekers. Those who do not have a lot of money, but still want to show that they
are wealthy. The old image seekers will probably stick with the first or second
wine, because the third wine seems to cheap to them and does not reflect their
wealth.
6.3.2.New enthusiasts
The new enthusiasts will be, as the enthusiasts are for the first and second
wine, the biggest share of the customers of the third wine. These new enthusiasts
also like to spend a lot of time with friends and drink wine. The big difference
here is that there will be a lot more new enthusiasts, because of the price of the
third wine. This can also cause many old enthusiasts to buy another brand, as
the third wine will become more of a normal wine, since more customers will
buy it.
6.3.3.New traditionalists
The new traditionalists will love the third wine, because they do not like to
spend too much money, but still want a high quality wine. A big advantage of this
segment is that they tend to stick to one wine, and (still) are easily influenced by
marketing efforts.
6.4.
Positioning
Chteau Margaux brand used to position itself as a brand that concentrated

on the people that were interested in the background and details of the wine.
However, Ngociants5 are being used in order to sell the wines to luxury
consumers with no such interest, which means that in the minds of luxury
consumers Chteau Margaux is just another expensive wine that shows how
wealthy they are. But of course, these image seekers are extremely profitable
and have a share of purchase6 of more than 20% percent. Therefore, although the
image of the brand may be damaged, Chteau Margaux will not have to worry
about profits and popularity. In the future, Chteau Margaux may want to get rid
of this image, but as long as profit keeps growing and Chteau Margaux keeps its
luxury status, there is no reason to change the image.
5 Ngociants is French for merchants or dealers.

6 See exhibit 1( source http://wineeconomist.com/2008/04/05/what-are-wine-enthusiasts-looking-for/ )
Page 17 of 32

7. Corporate strategy
7.1.
Corporate-level strategy
Chteau Margaux has been an exceptional winemaker since the 16 th century.

One of Chteau Margaux key success factors is the renowned quality of its wines.
Having an already first and second wine, Chteau Margaux will be expanding its
market with a third wine. With the new Gosse du Margaux, wine Chteau
Margaux will vitalize the consumer with this new product. Chteau Margaux
focuses the innovation of the Chteau Margauxs brand on two core themes,
excellence and passion. To be successful in this market Chteau Margaux has to
keep up its quality standards. To create growth on the US market Chteau
Margaux first needs to introduce the third wine to this market. With the new
product, development Chteau Margaux will increase its market share.
7.2.
Business-level strategy
Chteau Margaux will be focusing on differentiating itself from the other lower
classed wines. By being in the same price range, but slightly more expensive
than its competitors Chteau Margauxs third wine will sell in higher volume.
Chteau Margaux can afford this through the reputation it has built up with its
previous wines. The review critics will also play a big role in the success factor of
the differentiation strategy. This is why Chteau Margaux will invite the major
critics to a private tasting session. The outcome of this session will make or break
the success of the third wine.
7.3.
Functional-level strategy
It is essential for the success of Chteau Margaux, that the third wine will be
available again to the loyal customers. That means that it is our responsibility to
make the wine available to not only the traditional market but to new segments
as well. The new product should also be available in restaurants to give image
seekers the opportunity to buy the wine at different locations.
The combination of a well-functioning network and innovative products will
position Gosse du Margaux on the US market for growth with even a higher
potential than its previous products.7
8. Objectives
8.1.
Bringing the third wine into the market at a price of 99 euro in the first
quarter of 2014
Sell 600 cases per month in the US
Achieve revenue of 8 million euro at the end of the first fiscal year
Increase market share by 2% in the first fiscal year.
8.2.
Short-term goals
Long-term goals
Increase market Share by 10% at the end of 2016.

Increase the sales from 600 cases per month up to 1000 cases per month
during the during the second year
7 Source: http://www.chateau-margaux.com/en/savoir-faire/travail-vigne/palissage
Page 18 of 32

Increase revenues by 8 million euro during the second year from 10 to 16
million euro a year
9. Marketing Mix
9.1.
Product
9.1.1.Three levels of Product:

9.1.1.1. Core Product
By defining the core product clearly, Chteau Margaux can achieve marketing
excellence. The core product is also known as a benefit and is generally
intangible in nature. The core product of Chteau Margauxs high-end luxury wine
is satisfying thirst for extinguished alcohol and value for money.
9.1.1.2. Actual Product

The actual product is the tangible, physical product of Chteau Margaux, which is
the wine. The core product of Chteau Margaux is a status symbol. Therefore, the
actual product will be a very high quality product with high pricing. Chteau
Margaux currently offers a line of high-quality wine including the first wine;
Chteau Margaux and the second wine; Pavillon Rouge du Chteau Margaux.
Now Chteau Margaux is planning to expand the product line by including a
third wine named Gosse du Margaux. In addition, with Gosse du Margaux,
Chteau Margaux hopes to earn more revenue and eventually increase their
profit and market share.
However, less than half of what was left after blending the first two wines was
deemed of high enough quality for the third wine. In addition, due to the small
amount that was left, Chteau Margaux created a special allure of the wine by
using the scarcity of the product to their benefit. So, the third wine; Gosse du
Margaux exists out what was left after blending the first and second wine.
9.1.1.3. Augmented Product

Augmented product is the non-physical part of the product. The augmented
product is an important way for Chteau Margaux to tailor their core and/or
actual product to the needs of an individual customer.
9.1.2.Product positioning strategy

Page 19 of 32

Looking at the product/market grid, Chteau Margaux could easily identify the
product positioning strategy. This is due to the third wine of Chteau Margaux
and the distribution to the United States of America. Moreover, by looking at the
product/market grid Chteau Margaux could easily decide which strategy they
are going to apply.
9.1.2.1. Market Development

Gosse du Margaux is a new wine; however, it is still an existing product. In
addition, Chteau Margaux will be entering a new market, which is the United
States of America. That is why Chteau Margaux chose for the market
development strategy.
There are three approaches for Chteau Margaux to develop the market. First,
there is the expansion of the distribution channels. Besides the expansion, there
is also the selling in new locations. Last but not least the identification of the
potential users.
9.2.
Place
It is best for Chteau Margaux to enter the United States of America because
the U.S. market shows great potential. In the United States, there is a marked
correlation between the tendency to drink wine and various demographics. Wine
drinkers in the U.S. tend to be older, have higher disposable income, greater
education levels, and are often female.
9.2.1.U.S. Market
Wine sales in the U.S. from all production sourcesCalifornia, other U.S.
states and foreign countriesincreased 2% from the previous year to a new
record of 360.1 million 9-liter cases with an estimated retail value of $34.6 billion,
according to wine industry consultant Jon Fredrikson of Gomberg, Fredrikson &
Associates in Woodside.
"The U.S. is the largest wine market in the world with 19 consecutive years of
volume growth," said Wine Institute President and CEO Robert P. (Bobby) Koch.
"Wine shipments to the U.S. market climbed by nearly 50% since 2001. Moreover,
it is likely that American consumption will continue to expand over the next
decade as wine continues to gain traction among American adult consumers,
said Fredrikson & Associates. "The amazing diversity of choices and exciting new
offerings are attracting new consumers and boosting consumption. Among the
key growth drivers are favorable demographics, a widening consumer base and
increasing points of distribution in both on- and off-sale outlets. Wine sales in
U.S. stores and other off-premise measured channels from all domestic and
foreign producers grew 2% by volume and 6% by value, according to Nielsen, a
global provider of information and insights into what consumers buy.
9.2.2.Product Life Cycle: Growth Stage

The U.S. market is currently in the growth stage, which is the point where the
product sales, revenues and profits begin to grow as the product becomes more
popular and accepted in the market. If Chteau Margaux is successful with their
strategy then the company will see a rapid increase in sales. Once Chteau
Margauxs third wine; Gosse du Margauxs sales begin to increase the company
share of the market will increase. Once they get to this point Chteau Margaux
will be able to attain a part of the market from their competitors in the U.S.
Page 20 of 32

9.3.
Price
Gosse du Margaux is priced with the competition in mind. The Chteau

Margaux is setting high prices to show its luxury and/or prestige. Chteau
Margaux is not attempting to achieve the goals of offsetting low prices by selling
high quantities of products because there is only a limited amount available for
the third wine.
The third wine will have a Parker score of 90 and will be sold for $99, -, which
is less than the regular Chteau Margaux wine. The third wine; Gosse du Margaux
will be priced competitively, offering a good value against the competition such
as Chteau Latour.
9.3.1.Pricing Strategy
9.3.1.1. Mix of Premium Pricing & Psychological Pricing
Chteau Margaux uses a premium pricing strategy to establish a price higher
than their competitors, such as Chteau Latour. Premium pricing strategy can be
effectively used when there is something unique about the product such as the
scarcity of the third wine. Furthermore, when the business has a distinct
competitive advantage such as Chteau Margaux. Chteau Margaux also uses a
psychological pricing strategy. Chteau Margaux will sell the third wine for $99, -,
which is psychologically less in the minds of consumers than $100, -. A minor
distinction can make a big difference.
9.4.
Promotion (4 Elements of Promotional Mix)
9.4.1.Advertising
Advertising includes paid promotional placement of a product. There are
various types of advertisements; however, Chteau Margaux is going to focus a
lot on the word of mouth advertising. Usually purchase decisions of wine
consumers are based on "word of mouth." However, where does the "word" come
from? In most cases, it comes from friends, family or acquaintances in either face
to face settings; online social networking forums; or via texting.
9.4.2.Public Relations
Public relations could be maybe the most effective method. This is because
companies usually spread information to the media, which will generate news
coverage and therefore result in a form of free advertisement. Chteau Margaux
is going to organize a tasting ritual especially for the introduction of the third
wine Gosse du Margaux. This will be a 3-day event where journalists, critics,
Page 21 of 32

importers, and merchants/importers will be invited to taste the new wine. Critics
such as Robert Parker Jr. of the Parker Score, James Molesworth of the Wine
Spectator and Janice Robinson of the Financial Times will also be invited. This will
be one of the methods, which Chteau Margaux will be applying in order to get
the attention of the media and people.
9.4.3.Corporate Image
Corporate image refers to the importance of a company keeping a good
relationship with the public, avoiding scandal, and having a reputation for
delivering quality. Chteau Margaux already has an amazing reputation as
producing one of the most expensive, fine and exclusive wines in the world. If an
unknown product such as the third wine comes from a respectable company such
as Chteau Margaux, the likelihood of people buying the product will be very
high. Therefore, Chteau Margaux will be fully utilizing their corporate image as a
promotion tool.
9.4.4.Direct Marketing
Direct marketing is directed to a targeted group of scenarios and customers
rather than to a mass audience. The goals of direct marketing are to generate
sales or indications for sales representatives to pursue. Chteau Margaux will be
using direct marketing in order to place their third wine in high-end and/or trendy
restaurants, and specialized wine shops. The targeted group of Chteau Margaux
is:
9.4.4.1. The Enthusiast

The enthusiast exists out of 12% of the total consumers of which 25% are
actually spenders in the U.S. wine market. They consider themselves passionate
and knowledgeable about the total wine experience. At, retail read labels and
enjoys lingering in the wine section. Like to be offered both well known as well as
unique wine selections. On premise (at restaurants), typically purchase wine by
the bottle.
9.4.4.2. The Image Seekers

The image seekers exist out of 20% of the total consumers of which 24% are
actually spenders in the U.S. wine market. For them wine is a status symbol. They
only have the basic wine knowledge, and are driven by awareness of the latest
trends. They often use the internet as a key source of information. When going
out to a nice restaurant, they will typically check out the wine list ahead of time
online, so they can impress their friends.
9.4.4.3. New image seekers

These new image seekers will have the same characteristics as the old
ones. However, now the wine is less expensive and the third wine is not from the
main brand (Chteau Margaux), this will attract also the upcoming image
seekers. Those who do not have a lot of money, but still want to show that they
are wealthy. The old image seekers will probably stick with the first or second
wine, because the third wine seems to cheap to them and does not reflect their
wealth.
9.4.4.4. New enthusiasts

Page 22 of 32

The new enthusiasts will be, as the enthusiasts are for the first and second
wine, the biggest share of the customers of the third wine. These new enthusiasts
also like to spend a lot of time with friends and drink wine. The big difference
here is that there will be a lot more new enthusiasts, because of the price of the
third wine. This can also cause many old enthusiasts to buy another brand, as
the third wine will become more of a normal wine, since more customers will
buy it.
9.4.4.5. New traditionalists

The new traditionalists will love the third wine, because they do not like to
spend too much money, but still want a high quality wine. A big advantage of this
segment is that they tend to stick to one wine, and (still) are easily influenced by
marketing efforts.
9.5.
Distribution
Chteau Margaux has to bypass the negociants in order to target specific

consumers for the third wine; Gosse du Margaux. Meaning that Chteau Margaux
has to contact importers or large distributors directly to try and reach the desired
end consumers at the right time and place. In addition, these so-called places
are high-end or trendy restaurants and specialized wine shops.
9.5.1.Distribution Strategy
9.5.1.1. Selective Distribution
This distribution method relies on fewer intermediaries, while still maintaining
a respectable amount, and is used primarily for goods that are more specialized.
In the U.S., imported wine has to go through a three-step distribution scheme,
which involves an importer and state distributor before the wine reaches the wine
store or restaurant. Importers or large distributors are expecting to earn a 25%
margin, wine shops a 30% margin and restaurants a 60% margin. In addition,
U.S. State distributors expected a 28% margin.
After Chteau Margaux, selects the right importer. The state distributor will
allocate the wine in small amounts in both the restaurants and specialized wine
shops to create a scarcity climate, which will aid Chteau Margaux to keep their
luxury image. Chteau Margaux will canvas the metropolitan cities where they
are going find the best venues to sell their wines to. The Sommeliers will be
critical here by featuring Gosse du Margaux on lists and endorsing it to guests.
Apart of that, Chteau Margaux will also be selling a very exclusive amount of
their third wine on their website.
This is due to the increase of online wine purchases. This way Chteau
Margaux keeps on track with the current hype of e shopping and satisfies many
customers by providing a small amount of their third wine online.
Chteau Margaux usually sells their wine in barrels and after bottling, is not
allowed, when the wine is in advance about the major vintage. Then primeur
distribution is used by most of the Chteau and wine producers because they
only sell between 5% and 10% of their wine in after bottling.
10.
Budget
Page 23 of 32

Chteau Margaux had decided that the third wine would be 20% of the total
production. So the first and second wine makes up for the rest of the production,
which is 80%. The amount of cases and bottles of the third wine: Gosse du
Margaux is calculated as follow:
Wine 1 + Wine 2 = 80% 30.000 / 80% x 20% = Cases
Case x Price = Revenue 2014
Cases x Bottles in 1
14.000 + 16.000 = 30.000

30.000 / 0,8 x 0,2 = 7.500 Cases
7.500 x 12 = 90.000 X 99 = $8.910.000, -
10.1.
Profit & Loss Account

Third wine
Gosse du
Margaux
2014
End 31st of
December
2015
End 31st of
December
2016
End 31st of
December
Revenue
$8.910.000,00
$12.485.302,50
$14.283.901,72
Cost of Sales
$270.000,00
$270.000,00
$270.000,00
Gross Profit
$8.640.000,00
$12.215.302,50
$14.013.901,72
Distribution
$500.000,00
$500.000,00
$500.000,00
Promotion
$1.000.000,00
$1.500.000,00
$2.000.000,00
Wages
$2.520.000,00
$2.730.000,00
$2.940.000,00
Total Expenses
$4.020.000,00
$4.730.000,00
$5.440.000,00
Operating Gross
Profit
$4.620.000,00
$7.485.302,50
$8.573.901,72
Tax Payable
$1.044.697,50
$2.111.400,78
$3.699.114,24
Retained Profit
$3.575.302,50
$5.373.901,72
$4.874.787,48
Operating
Expenses
10.1.1.
Fiscal Year 2014
In the first fiscal year 2014 Chteau Margauxs: Gosse du Margaux has
managed to project a profit of $3.575.302, 50. It is a huge profit; however, this
much would be expected of Chteau Margaux. The cost of sales consists mainly
Page 24 of 32

out of the 90.000 bottles and the label prints. The cost of sales has a total of
$270.000, -.
There are also the distribution costs, which are $500.000, - and it consists
mainly out of safely shipping the goods from France to the U.S. Apart of the
distribution costs there is also the promotion costs. The promotion costs are
related to the tasting ritual, which was especially organized for the third wine.
The promotion costs include the invitations, transportation of all the invited
people, furniture, entertainment, food etc. The promotion costs are $1.000.000, -.
In addition, there is another cost factor, which is very important and keeps the 70
employees of Chteau Margaux motivated. These important costs are the wages.
The wages in the first year counts for 12 months. Moreover, the wages are
calculated as following: (3000 x 12) x 70 = $ 2.520.000, -. And last, there are the
U.S. taxes, which are usually 11,725%. So, the taxes are calculated as following:
8.658.000 x 0, 11725 = $1.044.697, 50.
10.1.2.
Fiscal Year 2015
In the second fiscal year 2015 Chteau Margauxs: Gosse du Margaux has
managed to project a profit of $5.373.901,72 once again. It is once again a huge
profit, however, this time the profit almost doubled looking at the previous year.
The cost of sales did not change because the production was the same as the
previous year. The cost of sales in 2015 is $270.000, -. There is also the
distribution cost, which will be once again $500.000, -. The promotion costs had
an increase of $500.000, - meaning that the current costs totals $1.500.000, -.
Moreover, Chteau Margaux increased the wages of their employees in order to
motivate them to perform even better than the previous year. The wages are
calculated as following: (3250 x 12) x 70 = $2.730.000, 00 -. And as last, the U.S.
taxes are calculated as following: (12.485.302, 50 - 3.575.302, 50) x 0,11725 =
$5.373.901,72.
10.1.3.
Fiscal Year 2016
In the third fiscal year 2016 Chteau Margauxs: Gosse du Margaux has
managed to project a profit again of $4.874.787,48. Again, Chteau Margaux
made a good profit; however, this time the profit did not double looking at the
previous year. The cost of sales is still $270.000, -. There is also the distribution
cost, which once again $500.000, -. The promotion costs had once again an
increase of $500.000, - meaning that the current costs totals $2.000.000, -. In
addition, Chteau Margaux increased the wages of their employees to celebrate
the projected profit. So, the wages are calculated as following: (3500 x 12) x 70 =
$2.940.000, 00 -. And once again, the U.S. taxes are calculated as following:
(14.283.901, 72 - 5.373.901,72) x 0,11725 = $3.699.114,24.
11.
Recommendations
We have found that it would be very profitable to introduce the third wine in
the United States. We have found five targets that we recommend to the
company, two of the original segments of the first two wines and tree new
segment groups that we have researched (the enthusiast, the image seekers,
new image seekers, new enthusiasts and new traditionalists).
There are several strategies in order to make this introduction of the third
wine in the United States. There is a pricing strategy, distribution strategy,
promotion strategies and a product strategy. Furthermore, we have set up a
corporate strategy, which consist out of a corporate-level, a business-level and a
Page 25 of 32

functional-level strategy. When used these strategies in the right way you could
make a turnover of approximately 13, 8 million dollar for 3 years.
With this third wine Chteau Margaux has a chance to grow in the American
wine market and increase their market share. Because, there is a growing
demand for a new high quality wine but also for a more affordable Chteau
Margaux wine, but to differentiate themselves to the competitors to be slightly
more expensive. It is essential for the success of Chateau Margaux, that the third
wine will be available again to the loyal customers. That means that it is our
responsibility to make the wine available to not only the traditional market but to
new segments as well.
To conclude, this third wine of Chteau Margauxs: Gosse du Margaux should
be introduced in the United States because this could be the way to reach
Chteau Margauxs core customers in the United States. With a positive effect on
the brand image, because their still more expensive than the competitors, while
they still produce a high quality wines. Moreover, selective distribution maintains
the exclusivity of the brand.
12.
Source list
Index. (n.d.). Retrieved from Organisation Internationale de la Vigne et du Vin:

http://www.oiv.int/oiv/cms/index
Mike Veseth, P. e. (2008, April 5). What are wine enthusiasts looking for?
Retrieved from The Wine Economist:
http://wineeconomist.com/2008/04/05/what-are-wine-enthusiasts-lookingfor/
http://wiki.answers.com/Q/Best_example_of_five_product_level?#slide2
http://www.wineinstitute.org/resources/pressroom/04082013
http://www.slideshare.net/ludatalalaeva/Chteau-Margaux-case-study
http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates
http://www.marketing91.com/pricing/
http://www.news4jax.com/news/younger-generation-of-winedrinkers/-/475880/20706970/-/lduvbo/-/index.html
http://www.chateau-margaux.com/en/savoir-faire/travail-vigne/palissage
13.
Appendixes
13.1.
Appendix 1
Chateau
Margaux
Latour
Lafite
Rotschild
Haut-Brion
Mouton
Rotschild
Appellation
Margaux
Pauillac
Pauillac
Pessac-Leognan
Pauillac
Wine
Vineyard
80 Hectares
80 Hectares
103 Hectares
49 Hectares
80 Hectares
Page 26 of 32

Grape
Varietals
75%Cabernet
S.,
20% Merlot,
3% Cabernet
F.
2% Petit
Verdot
Wine
Production
(Average
Range of
Cases)
First Wine: 1214,000

Second Wine:
14-16,000
Price Per
Bottle
1st $1280
2nd $185
Average
Parker
score
96
Competitiv
e
Advantage
13.2.
One of the
four wines to
achieve the
Premier Cru
Classe.
75%
Cabernet,
20% Merlot
4% Cabernet
f, 1% Petit V.
70% Cabernet
S.
25% Merlot
3%Cabernet F
2% Petit V.
50% Cabernet
40% Merlot
9% CabernetF.
1% Petit Verdot
83%
Cabernet S.
14% Merlot,
3% Cabernet
F
First Wine:
18-20,000
Second Wine:
15-20,000

Second Wine: 57,000
First Wine:
16-18,000
Second
Wine: 56,000
1st $1530
2nd $ 335
1st $1200
2nd $160
1st $1100
2nd $195
95
96
95
94,5
Latour is the
only one with
a third wine
already in its
assortment.
Lafite Rotchild
has the
largest
vineyard that
covers 103
Hectares.
Haut-Brion is the
only wine with the
Pessac-Leognan
appellation which
still remains the
benchmark of today
and is rated: Premier
cru Classe.
Each year an
artist
designs a
label for the
Mouton
Rotschild
company.

Second Wine:
18,000
Third Wine: 69,000
1st $1745
2nd $280
3rd $97
Appendix 2
13.2.1.
Peer assesment
Karim Bidri
Brent Heiner
Grade
7,5
Jamiro Bouva
7,5
Zaheb Geujar
7,5
Mohamed el
Ghouch
7,5
Kyran Broeke
7,5
Short Evaluation
Brent was very organized and always
tries to help when he can. He is a
great team worker and provided
sufficient work.
Jamiro is very creative and did a good
job on the internal analysis
calculations.
Zaheb always tries to assist the team
members. His part was finished
before the deadline and the work was
clear. The budget was explained very
well.
Mohamed is a very enthusiastic
member of the team. He always
thinks about new ideas and is very
focused on his own tasks.
Kyran is an organized member of the
team and did a great job in putting
the report together. He is a good
planner.
Personal Evaluation: Karim Bidri

Since the last case, the group had made a lot more agreements regarding
deadlines and tasks. I really liked the way this case was handled by us and we
Page 27 of 32

were very professional in the whole process. This case was more enjoyable
while reading it and this gave me more incentives in the process of making
the report. The group worked together like a real team and I hope this will
lead us to a good grade.
Brent Heiner
Grad
Short Evaluation
e
Karim Bidri
8
Karim worked hard on the plan and
cooperated well with the whole
group.
Jamiro Bouva
8
Jamiro did a great job on the external
analysis. His calculations were spot
on.
Zaheb Geujar
8
Zaheb did an excellent job. Again the
budget was clear and explained very
well.
Mohamed el
8
Mohamed was enthusiastic about the
Ghouch
project and worked well with the
tea .
Kyran Broeke
8
Kyran did a good job on the plan and
really brought the group together
during the process.
Personal Evaluation: Brent Heiner
I liked this case more than the last one. I learned a lot more of the
characteristics of the wine industry. I had difficulties with some of the parts I
had to make, but I hope it is sufficient enough for a good grade. The group
worked well together and the group discussions helped us make the plan
coherent.
Zaheb Geujar
Karim Bidri
Grad
e
8,5
Jamiro Bouva
8,5
Brent Heiner
8,5
Mohamed el
Ghouch
8,5
Short Evaluation
Karim did a very good job on the
assignment, which he received. He
finished everything at the day of the
deadline, which he received from
us.
Jamiro has put a lot of effort within
the marketing plan. He was a very
active member of the team and it
was very easy to communicate with
each other.
Brent is a very organized worker,
which enables him to work swiftly,
precise and effectively. And a part of
that, Brent is also a very good team
worker.
Mohamed is a great team worker. It
is very easy to contact him and ask
for his opinion on certain topics
related to the case. In addition, he is
always very thorough, with his
opinions.
Page 28 of 32

Kyran Broeke
8,5
Kyran has great analytical abilities.
He has shown a great amount of
effort and responsibility during the
complete marketing plan.
Personal Evaluation: Zaheb Geujar
I have learned a lot during the Chateau Margaux case. It was a very
interesting case. I did not know a lot about wines because I am not a drinker.
Nevertheless, I have learned about the different types of luxury wines. How
the pricing of wine is conducted (Parker score). How the unit is measured
(cases). And because of this case I have increased my knowledge about wine
and am able to talk about wine with other individuals. Once again, I was able
to improve myself due to the previous marketing plans. And it was a great
practical and theoretical experience, and I enjoyed myself.
Mohamed el
Ghouch
Karim Bidri
Grad
e
8
Jamiro Bouva
Zaheb Geujar
Brent Heiner
Kyran Broeke
Short Evaluation
He is a good team worker, always
tries to keep the peace in the group.
Likes to work organized, is
disciplined and can work very good
on his own.
Works very efficient is always
present and active during meetings.
Wants clarity about everything
before working, so does not make a
lot of mistakes and works fast.
Is always enthusiastic, does not
mind to take make more work on.
Furthermore, is supportive to others
and is always available to answer
your questions.
Worked hard, always made himself
available, even if he had a lot of
work of himself. Always wants
certainty before he starts working
and he does not bounce back to ask
questions.
Did a lot of work, seemed certain
about his work and always gives
advice and feedback to others. Also
has no problem handling feedback
directed to him.
Personal evaluation: Mohamed el Ghouch

I found the case more clear than the previous case, which looked a bit chaotic.
The group and I tried to consider all the feedback for this case. Everyone
worked hard and helped each other, when they were done. I feel we did a
better job on this marketing plan than on the previous one, because we now
know even clearer where the emphasis lies and what is less important at the
marketing plan. To conclude, we worked very efficient and effective and that is
why I think we did a better job than the previous weeks.
Jamiro Bouva
Grade
Short Evaluation
Page 29 of 32

Brent Heiner
7,5
Very organized worker and always
finished early with his tasks. I am
very positive about his results
regarding this project.
Karim Bidri
7,5
Always tries to help, resulting in a
better overall grade for the group. His
supportiveness helped members of
our group to finish their work. His
own work was also good.
Zaheb Geujar
7,5
Zaheb always tries to assist the team
members. His part was finished
before the deadline and the work was
clear. The budget was explained very
well.
Mohamed el
7,5
Hard worker who plans what he wants
Ghouch
to accomplish in the future. I think his
tasks were sufficiently fulfilled.
Kyran Broeke
7,5
Kyran always tries to motivate the

group and explains what each person
has to do when it is not entirely clear.
His own pieces throughout this
project were good.
Personal Evaluation: Jamiro Bouva

Personally, I have learned that in these types of projects it is extremely
important that during the process, you and your team communicate because
the plans that are made in this project have to be coherent and connect with
each other.
Kyran Broeke
Brent Heiner
Grade
8
Karim Bidri
Zaheb Geujar
Mohamed el
Ghouch
Jamiro Bouva
Short Evaluation
Always tries to motivate the group
and explains what each person has to
do when it is not entirely clear. His
own pieces throughout this project
were good.
Always tries to help, resulting in a
better overall grade for the group. His
supportiveness helped members of
our group to finish their work. His
own work was also good.
Very organized worker and always
finished early with his tasks. I am
very positive about his results
regarding this project.
Mohammed formed the objectives
well and was always present during
the meetings. He also worked well
with the deadlines set.
When assigned a task, he does not
complain and does the work. I think
his tasks were sufficiently fulfilled.
Personal Evaluation: Kyran Broeke

I think our group did a better job on the marketing plan compared with last
time. We tried to use all the advice and feedback we got at the previous
Page 30 of 32

marketing plan. Over all we did a good job, the ones who finished earlier
helped the other ones, especially the marketing mix and the budget took a lot
of time, but once again, I think we have made a great marketing plan.
Page 31 of 32

13.3.
Appendix 3
13.3.1.
Group cooperation report
Dividing tasks and having good communication within your group is essential
when it comes to group assignments. This is nothing different with this marketing
plan. Therefore, agreements had been made in order to be as effective and
efficient in the creation of the marketing plan. These agreements came in the
form of a contract which was signed by all individual members of the team and
the lecturer.
One of the key elements of this group assignment was the way we
communicated with each other during the meetings. During the week,
appointments were made where the group would go through the progress and we
would help each other in order to be as successful as our group can be. Below
you will find the details about these meetings.
1 Our group had set up a contract. That contract stated that there would have to
be at least two formal meetings in one week where we would meet in person. The
group had two weeks to prepare the marketing plan, however, in view of the fact
that the deadline had been moved one week our group had the chance to meet
two times more than we had originally planned.
Dates (meetings)
21 October 2013: 25 minutes
27 October: 60 minutes
11 November 2013: 60 minutes
24 November: 60 minutes
2 Presence / Absence
A:
Karim Bidri, Kyran Broeke, Mohamed el Ghouch, Zaheb Geujar, Jamiro Bouva,
Brent Heijner.
3 Purpose of meetings
21 October 2013: conversation about task allocation.
27 October: Discussion on progress and clarity on subjects
28 October - 9 November: Exam week preparation, no work on project pbc.
11 November 2013: Final discussion on progress, problems found and final
feedback.
22 November 2013: Hand in all work.
23 November 2013: Report is done and send to all members to check and give
feedback.
24 November: Feedback applied and final report is done and ready to hand in.
4 Task allocation
The contract we had constructed stated that every individual had to take the
main responsibility of two points from the marketing guidelines and this would
switch with every case which will have a positive effect on the learning proses
since every individual takes on a different task each case.
Page 32 of 32

PBC Case 3 Final Version 2

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Marketing plan, Case:

By: group 1, from 2-IBM3

Marketing plan, Case:

Marketing plan, Case:

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

Marketing plan, Case:

Marketing plan, Case:

Marketing plan, Case:

Marketing plan, Case:

3. External and market analysis

Chteau Margaux is currently in the market of the winery. As of 2013, the

3.1.1.Import and Export

Marketing plan, Case:

Fine wine buyers (connoisseurs, luxury buyers)

3.2.1.Fine wine buyers

3.2.1.2. Luxury buyers

Marketing plan, Case:

Marketing plan, Case:

The consumers of wine have been segmented into six groups:

Marketing plan, Case:

Sales & Profits

Marketing plan, Case:

Marketing plan, Case:

Sophisticated production process

No capacity to increase production,

High profit margins

without it having effects on the brand

Demand for first wines is already

Marketing is outsourced to 'ngociants'

Well established brand

strong but still growing

Growing interest in wine in and

New distribution channels

Not much knowledge of customer base

French wines losing market share globaly

Inconstancy of quantity of the left over

will be effective or not.

Inconstancy of quality of the left over wine

outside of europe; US, china, australia.

know if holding back 100% of the wine

Attitude towards bordeaux wines by

sommeliers have turned negative

Marketing plan, Case:

6. Segmentation, Target Market, Positioning

Target Markets, segmentation

The consumers of wine are segmented into six groups:

Marketing plan, Case:

Marketing plan, Case:

6.3.1.New image seekers

Chteau Margaux brand used to position itself as a brand that concentrated

5 Ngociants is French for merchants or dealers.

Marketing plan, Case:

Chteau Margaux has been an exceptional winemaker since the 16 th century.

Increase market Share by 10% at the end of 2016.

Marketing plan, Case:

9.1.1.Three levels of Product:

9.1.1.2. Actual Product

9.1.1.3. Augmented Product

9.1.2.Product positioning strategy

Marketing plan, Case:

9.1.2.1. Market Development

9.2.2.Product Life Cycle: Growth Stage

Marketing plan, Case:

Gosse du Margaux is priced with the competition in mind. The Chteau