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PRESERVE THE LUXURY OR EXTEND THE BRAND ?
Chateau de Vallois
•Wine producing estate•Family owned•Record of quality and reputation
Gaspard de Sauveterre•Owner •Possesses 50% of estate•Traditional perspective•Decision maker•Worried about future generations
Claire de Valhubert•Granddaughter of Gaspard•Possesses 25% of estate•Modern perpective•Proposed a change
Francois de Sauveterre•Son of Gaspard•Possesses 25% of estate•Traditional perspective
Jean Paul•Estate manager•Agriculture engineer •Worked for 30 years in estate
Negociants •Merchants and dealers •Traditional perspective•Buy wine from de Vallois •Sell and ship wine•Reputation determine the price
ABOUT COMPANY
• Selling 2 wines • Cost : one wine @1000 euro : second wine @ 100-450 euro• best selling wine
What to
Enter “AFFORDABLE LUXURY “ Market
Claire proposed •Produce third wine and sell it directly.•Keep the price low around 20-25 euro.•Attract more young consumers.•Extend the brand.
Francois perspective •Not enough grapes•More investment•New distribution and marketing channel•Losing negociants.•Who will produce ?
Solution
More grapes
Buy land and growBuy grapes
overseasHere itself
Final decision depends on Gaspard
SOME EXAMPLES
IN 1991
IN 1995
IN 1999 ( INR 5)
IN 2001
TATA NANO• FOR MIDDLE CLASS• KEEPING ITS CORE PROPERTIES• ATTRACTING AN ENTIRE NEW MARKET SEGMENT•MORE DEMAND
HUL•WILL INTRODUCE PACKED ROTI•RESEARCH DONE•HIGH DEMAND
RECOMMENDATION
1.To attract young drinkers and other segments of people Gaspard should consider Claire’s suggestion
2.Claire should proceed with her suggestion while francois should take care of already established estate.
3.The distribution and marketing channel should be new for the third wine and they should adopt different strategy for it.
4.They can give the third wine a new product name and create a new brand so there is no danger of bad mouthing or declination of the estate.
Lets relate this to some concepts in Kotler textbook
BRAND EQUITY
BRAND POSITIONING
BRAND EXTENSION
Created by Jay s. Mehta, SPCE, during an internship by Prof. Sameer Mathur, IIM Lucknow.www.iiminternship.com
THANK YOU