Chateau Margaux Case Essay

1301 Words Jun 7th, 2011 6 Pages
Château Margaux Case

1- Château Margaux’s distribution system

Château Margaux is one of the well-known wines from the Bordeaux region in France. It is famous by the fact that this wine has got a luxury and high quality notoriety, and also stand out from the competitors thanks to the quality of is first growth produce with carefully selected grapes. With only two mains wines (first wine: Chateau Margaux; Second wine: Pavillon Rouge; See in Exhibit 2) Chateau Margaux is a famous wine all over the world.

This situation is, in a part, due to its distribution system. Indeed, Chateau Margaux has not got is own distribution system because it entrust the distribution through specialist merchants which have good knowledge about the
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But we can see that this system presents some drawbacks.

2- Change the distribution system

Even with the numerous of advantages of this distribution system (Concentration on the core business, knowledge about the market by the merchants) this one knows some drawbacks. That is why, in my opinion, Chateau Margaux should change, in a way, how they organize it.
Indeed, the important point by selling wine is to ensure it to be sell to the right consumer by inform him on all the characteristic of the product. As, Chateau Margaux wine is a very specific product by its high quality, its traditional fabrication, its luxury image, and its status, its really important that the merchant take that in count. Thus, the first drawback, in this system is that Chateau Margaux doesn’t know exactly who are their consumers and consequently let to the merchant this charge. But, as the consumer of luxury wine is really volatile, because they can change their consumption habits really quickly, Chateau Margaux has to be sure that all the information of the product is really highlight. Moreover, we can see that there is a problem because the objective of the merchant is to sell the more they can and not really to be concentrate on how they communicate. So as they have to sell not only the Chateau Margaux’s product but also the well-known competitors’ products their approach to the consumer can be the same for all the wine. Thus, it can have a lack in the communication about the

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