Strategic Management
Introduction
• Located in the Bordeaux region, which produces the most
prestigious wines in France.
• Majorly there are 2 kinds of wine:
▫
▫
Red Wine.
White Wine.
• CASTEL group was founded in 1949.
• Today, Castel Group is one of the world leaders in wines,
beers and soft drinks.
• 80 hectares devoted to vines for production of red wines.
• 12 hectares devoted to vines for white wines.
Internal analysis
• Cheteau Margaux produced an average of 150,000
bottles per year of its first wine.
• 200,000 bottles of its second wine.
• The Core Resources of Château Margaux extends 262
hectares (650 acres)
Market share world wide
Consumer growth
Specialty of brand
•
•
•
•
•
•
•
Well established prestige brand
High Margins profit
Strong and growing demand of wine
Strong brand equity
Experience and expertise in winemaking
Strong financial position
Promotion
Weakness of brand
• Lack knowledge about customer behavior
• Marketing is outsourced to wine merchants
• No capacity to increase production
weakening brand
• Dependency on negotiates
• No experience on launching new wine
• Snob appeal
• Weak marketing Opportunities
without
SWOT ANALYSIS
STRENGTHS
•Penetration Pricing
•State of the Art Winery
•Excellence Award for Finery
OPPORTUNITIES
•Cutting edge over foreign
wine makers
•Expansion opportunities
WEAKNESSES
•Low on Production Capacity
•Less Overseas Supply
THREATS
•Strong competition from other
countries
•Decrease in consumption of
wine in France
•Emergence of substitute
products
Market Analysis
Chateau Margaux Summary Assesment
Alternatives
Relative Weights Control Distribution Develop Tourism Increase Product Status Quo
Criteria
Business
Line
Market share loss to new world countries
0.2
4
3
3
3
Very limited company's structure (no marketing or sales) 0.1
2
1
2
4
Possible brand devaluation in case of expansion
0.4
3
3
1
5
Limited sales channels
0.3
1
4
2
4
Relative Index
2.5
3.1
1.8
4.2
Market Analysis
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Control Distribution
Develop Tourism Business
Increase Product Line
Alternatives
Status Quo
Price Analysis
Adopted Marketing Strategy
PRODUCT STRATEGY
• It adopts latest technology to increase production.
• Attractive packaging for enhancing looks of the
product.
PRICE STRATEGY
• Low price of product to increase customer band.
• Penetration into the market with diversified products.
Adopted Marketing strategy
PLACE STRATEGY
• Wide area reach in France.
• Company products are present in 5 continents
PROMOTION STRATEGY
• Providing good offers and discounts
• Has the best in word of mouth promotion.
Recommendation
•Château Margaux's brand is one of their strongest
assets; why dilute it?
• The current distribution system works well
• Company management is tradition-bound and not
ready to innovate
• Demand is growing without action from Château
Margaux
Strategy Management Statement
• Chateau Margaux prides itself on providing quality wine to the
millennial generation of consumers at competitive prices
through creative marketing techniques.
• The winery provides wine to its customers using a friendly,
knowledgeable tasting room staff. We offer products to a wide
array of individuals through our unique tasting room.
• Become an executive member of the Wineries Association to
help promote the wellbeing of the wine industry by Year 8 of
operation.
Thank You