Chateau Margaux Wines Essays

865 Words Nov 5th, 2010 4 Pages
Consumer Conditions
Chateau Margaux Wines

Background: Chateau Margaux produces one of the highest quality wines in the world. It is not unusual for a bottle to sell for over $100.00. There has been a tremendous increase in wine usage over the last ten years. This is due to the introduction of lower priced New World Wines in Canada and the United States. These wines come from California, Australia, Chile, Argentina, South Africa and New Zealand.

The quality of these wines is very good, and the grape varieties are the same as in France: Merlot, Shiraz, Cabernet, Malbec, Pinot Noir, Shiraz, and Zinfandel.

Chateaux Margaux does not participate in the quickly growing segment. They are considering launching a lower priced wine which
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Thus it is a status brand.

The brand enjoys these perceptions due to the unique geography, soil and weather conditions where the grapes are grown.

Augmented Brand: Satisfaction is guaranteed. If the wine’s flavour has deteriorated due to faulty storage or a loose cork, they will replace the bottle at no charge.

The Product Category

The product is all red wines which are perceived to satisfy the taste and health needs of the consumer. There are three distinct segments defined by product quality and price:

• Premium wines – French
• New world wines – California, Australia, Chile, Argentina, Canada, South Africa
• Price wines – lower quality, cheaper

Why does the Market Buy?

Maslow’s Hierarchy The needs satisfied by wine are found in a number of levels of the Hierarchy of Needs:

Belongingness and love: Wine can bring people together and is often used as a social facilitator (relaxes people and makes interaction easier).
Esteem Needs: The purchase and consumption of a fine bottle of wine can enhance our feelings.
Aesthetic Needs: Selecting and enjoying wine helps the consumer to move on towards self-actualization.

There are four fundamental reasons for purchasing wine

Leisure: purchased primarily for home consumption Entertainment: purchased primarily for parties/ restaurants Gifts: holidays, birthdays, etc.
Health (red wine): heart health and antioxidant properties

Product Purchase

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