Preserve the luxury or extend the brand

4. About Gaspard de Sauveterre,the 75 year old owner of
Château deVallois…
… a famous wine-producing estate in the Bordeaux region of France

6. CEO: François de Sauveterre
Estate Manager:Jean-Paul Oudineaux
Owner: Gaspar de Sauveterre
Some important characters of the story:

7. 150,000 bottles of
Grand vin du were sold
annually
The average US customer paid $999 for a
bottle of GrandVin,of which deVallois
collected between £100-£450

8. The best of the remaining grape were used to sell 200,000 bottles of Puine

12. She observed
that the younger
drinkers were
unable to afford
wine produced
by their estate
due to its high
price.

13. She wanted to
produce a new range
of wine which was
between £20-£25.

15. What should Gaspard do?
Preserve
or
Extend?

17. To capture a
new set of
customers
Gain their trust until
they can afford the
expensive brand
Increase the revenue
and profits
Capitalization
Added flexibility
Building relations
with people from all
sets of the social
structure
Why should Gaspard accept this new idea ?

18. Why Gaspard should reject this idea?
Dilution of
brand equity
Alienation of
core customers
Added
expense
Buying of
extra assets
Loss of
negociants
Lack of expertise
in lowly wines

20. Insights from this story can be
applied to many brands in the
India Market:

21. DABUR