1Strategic Marketing 1      MiM1 Anglo C01      ÉLÉONORE  MICHEL        CHLOÉ MORVANT     PAULINE VALLANZASCA  PIERRE-EMMA...
Table of contents                                 2IntroductionI.     External diagnosisII.    Internal diagnosisIII.   Ob...
Introduction     3               3/2/2013
I. External diagnosis          4                        3/2/2013
POLITICAL                                      5      Strong points                               Weak points Orientation...
ECONOMICAL                                  6        Strong points                         Weak points Agricultural incen...
Legal - Ecology                           7        Strong points                   Weak points Glass recycling           ...
Social - Technological                                      8        Strong points                             Weak points...
II. Internal Environment           9                           3/2/2013
Product                                       10           Strengths                                 Weaknesses Secured a...
Consumers                                   11          Strengths                             Weaknesses Loyalty to the b...
French competitors                             12 Latour (350.000 bottles) Lafite (250.000 bottles) Haut Brion (153.000...
Current ranking of wine producers                           13Production   Exportation    Country        % of the world’s ...
New world producer                               14 FROM 1995 up to 2000:     South Africa: +220%     Australia: +125% ...
The French market is changing                                     15 Problem :How can Château Margaux develop it export a...
III. Objectives and strategy             16                               3/2/2013
Objectives                                                                                 17Hypothesis (p.a.)           I...
Segmentation                                 18 Socio-demographic :   Men and women above 35 years old Social & Economi...
Targeting                                 19 The people we target are nowadays located in Japan,  China and Russia. In J...
Positionning                            20 We want to keep the same positionning that Château Margaux has in France. Qua...
IV. Marketing Mix       21                    3/2/2013
Product   22          3/2/2013
Price                                     23 Vary according to the vintage of the bottles, but always have a high  price....
Place                                     24 Training for foreign negociants in order to allow them to sell our  products...
Promotion    25            3/2/2013
V. Budget and follow-up          26                          3/2/2013
27                                                        Actual                         Forecasts                        ...
28                                                                                   Forecasts                            ...
Conclusion    29             3/2/2013
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Château margaux

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Château margaux

  1. 1. 1Strategic Marketing 1 MiM1 Anglo C01 ÉLÉONORE MICHEL CHLOÉ MORVANT PAULINE VALLANZASCA PIERRE-EMMANUEL MORINEAU PIERRE URIER-CATTOIRE 3/2/2013
  2. 2. Table of contents 2IntroductionI. External diagnosisII. Internal diagnosisIII. Objectives and strategyIV. Marketing MixV. BudgetConclusion 3/2/2013
  3. 3. Introduction 3 3/2/2013
  4. 4. I. External diagnosis 4 3/2/2013
  5. 5. POLITICAL 5 Strong points Weak points Orientation of Europe toward  Under-age drinking is alcohol consumption prohibited (18 years Fr)  Taxes are lowered inside Europe  Political campaign against drinking and driving in France Promotion of French culture worldwide (candidate for the UNESCO World Heritage) Tax on alcohol except on French wine productions 3/2/2013
  6. 6. ECONOMICAL 6 Strong points Weak points Agricultural incentives in  Competition from New World Europe to go against “rising” wines (California, Australia, emerging countries Argentina, Japan, Chile) Grants for one-time loss  Black markets in some southern countries Easy fluctuations of investments, money and goods  Financials buy vineyards within the European Union and do not pay attention to wine quality 3/2/2013
  7. 7. Legal - Ecology 7 Strong points Weak points Glass recycling  Legal age: between 18 and 21 years old according to the country  Advertising regulation : loi Evin (1991)  Export travel causes pollution  Organic wines  Competition but not direct 3/2/2013
  8. 8. Social - Technological 8 Strong points Weak points Different drinking patterns  Young people drink less and according to countries less wine  They are not trained to know Europe : tradition drinking wines wine is in culture (heritage, and culinary habits, especially in France)  French people are the most important consumer of French wines Faster and more precise machinery in France makes  New technologies can production easier and faster deteriorate a wine’s taste 3/2/2013
  9. 9. II. Internal Environment 9 3/2/2013
  10. 10. Product 10 Strengths Weaknesses Secured and authentic wine  Expensive product depends on vintage year Product full of history  Renowned  Specific localization and distribution difficult to change 1855: official classification as a  Pavillon Blanc does not take “first vintage wine” benefit from Margaux’s  Luxury wine seen as an appellation exclusive product  Accessible in limited quantity 3/2/2013
  11. 11. Consumers 11 Strengths Weaknesses Loyalty to the brand  Principal customers: connoisseurs Established in Europe (United Kingdom, Germany, etc…)  People with high income French attractive product  Ambitions about new markets: Japan, China and Russia Evolving taste of consumer 3/2/2013
  12. 12. French competitors 12 Latour (350.000 bottles) Lafite (250.000 bottles) Haut Brion (153.000 bottles) Mouton Rotschild (220.000 bottles) Ausone (20.000 bottles) Cheval Blanc (150.000 bottles) Petrus (30.000 bottles) 3/2/2013
  13. 13. Current ranking of wine producers 13Production Exportation Country % of the world’s production1 1 Italy 18%0 3 France 16%3 2 Spain 13%4 6 USA 8.6%5 7 Argentina 5.2%6 4 Australia 5.1%7 10 China 5%8 9 Germany 3.6%9 8 South Africa 3.5%10 5 Chili 3% 3/2/2013
  14. 14. New world producer 14 FROM 1995 up to 2000:  South Africa: +220%  Australia: +125%  Argentina: +73%  Chili: +160%  USA: +96% SINCE 2000: Production keep increasing (5 to 20% per year depending on the country) until the crisis 3/2/2013
  15. 15. The French market is changing 15 Problem :How can Château Margaux develop it export activity while maintaining its high-end positioning ? Current product New productCurrent market Develop awareness in France Create a new product Aim curious people with high (entrée de gamme) in income or connoisseur of other France and Europe wines (i.e. Burgundy wine) New market Use the same product to Create a new product to increase our market place and attract young people and develop the company in Japon, (non connoiseurs) all China and Russia around the world 3/2/2013
  16. 16. III. Objectives and strategy 16 3/2/2013
  17. 17. Objectives 17Hypothesis (p.a.) Inflation: 0,1% Production: +0,01% Same quality as 05 This budget only reflects activity related (directly and indirectly) linked to production and selling of Château MargauxN+1 - N+5: Japan (closer to our market, aim gastronomy traditions and add "French Touch" - product quality): +0,05% p.a.N+3 - N+5: Russia and China (aim new "Bling-Bling" market and work on brand image): +0,05% p.a.N+1; N+3: Formation for negociants with whom we work worldwide Invite international criticsN+1 - N+5: Tastings in well-known and high-end places worldwideN+3 - N+5: Annual Programm for our best customers (5/year): domain visit and 3 days in 5 star hotel/at the domainN+2: Reorganise website  Development objectives:  Japan  Russia and China  Access new clients: developp openess, product quality as well as brand image 3/2/2013
  18. 18. Segmentation 18 Socio-demographic :  Men and women above 35 years old Social & Economic :  People with a high level of revenues that allow them to spend money in quality product  Connoisseurs of wine products 3/2/2013
  19. 19. Targeting 19 The people we target are nowadays located in Japan, China and Russia. In Japan, there is a strong gastronomy culture In Russia and China it is more « Bling-Bling »  People are interested in expensive products at the expense of quality. 3/2/2013
  20. 20. Positionning 20 We want to keep the same positionning that Château Margaux has in France. Quality product => High-end product (haut de gamme) It is a product that customers buy for their pleasure.  To show-off 3/2/2013
  21. 21. IV. Marketing Mix 21 3/2/2013
  22. 22. Product 22 3/2/2013
  23. 23. Price 23 Vary according to the vintage of the bottles, but always have a high price. Production have been reduced so there are less bottles (scarcity of bottles) but higher prices. A bottle cost approximately 15 euros to produce, but Château Margaux benefits thanks to the perceived value approach. Usually sold between 200 and 1000 euros/bottle (these last years). Besides, it is also sold en-primeur (prices vary a lot between 70 and 300) but it is only between 5 to 15 % of the production.-> is high and climb a lot but it is justified by its high rank and prestige 3/2/2013
  24. 24. Place 24 Training for foreign negociants in order to allow them to sell our products properly. Tastings organised by negociants, with selected people, and products from the terroir Distribution remains the same: the estate, Château Margaux sell the production to brokers who take 2% margin and then deal with negociants on the Bordeaux place who take 15 to 20% margin. Then importers export the products all over the world. 3/2/2013
  25. 25. Promotion 25 3/2/2013
  26. 26. V. Budget and follow-up 26 3/2/2013
  27. 27. 27 Actual Forecasts Château Margaux YEAR 0 YEAR 1 YEAR 2 (2005) Margin MarginBudget ObjectivesN0-N+2 Production 150 000 150 150 150 300 1,00% 1,00% Sales 140 700 000 € 155 074 920 € 0,91% 169 177 849 € 0,92% COGS/unit 300 € 300 € 1,00% 299 € 1,00%Development of COGS Total 45 000 938 € 45 000 988 € 1,00% 45 001 036 € 1,00%Japanese activity Income Statement Revenues 140 700 000 € 155 074 920 € 0,91% 169 177 849 € 0,92%Frist training sessions COGS 45 000 938 € 45 000 988 € 1,00% 45 001 036 € 1,00% Gross Profit 95 699 062 € 110 073 932 € 124 176 813 €Beginning of tastings in 0,87% 0,89% Marketing & Sales 86 667 € 161 667 € 0,54% 86 667 € 1,87%renown places around CRM & Public Relations 16 667 € 91 667 € 0,18% 16 667 € 5,50%the world Tastings 50 000 € 50 000 € 1,00% 50 000 € 1,00% Other 20 000 € 20 000 € 1,00% 20 000 € 1,00% Reasearch & Development 25 000 € 25 000 € 1,00% 37 000 € 0,68% Website 12 000 € General & Administration 125 333 € 130 333 € 0,96% 125 333 € 1,04% France 125 333 € 125 333 € 1,00% 125 333 € 1,00% Other regions 5 000 € Operating Income 95 462 062 € 109 756 932 € 0,87% 123 927 813 € 0,89% Financial Income 20 000 € 20 000 € 1,00% 20 000 € 1,00% EBIT 95 482 062 € 109 776 932 € 0,87% 123 947 813 € 0,89% Interest Expense 750 € 750 € 1,00% 750 € 1,00% Taxes 31 824 171 € 36 588 652 € 0,87% 41 311 806 € 0,89% Net Income 63 657 141 € 73 187 531 € 0,87% 82 635 257 € 0,89% 3/2/2013
  28. 28. 28 Forecasts Château Margaux YEAR 3 YEAR 4 YEAR 5 Margin Margin MarginBudget Objectives Production 150 450 150 601 150 752N+3-N+5 1,00% 1,00% 1,00% Sales 183 459 279 € 0,92% 197 769 103 € 0,93% 212 107 363 € 0,93% COGS/unit 299 € 1,00% 299 € 1,00% 299 € 1,00%Reorganise website COGS Total 45 001 084 € 1,00% 45 001 133 € 1,00% 45 001 182 € 1,00% Income StatementStart of Russian and Revenues 183 459 279 € 0,92% 197 769 103 € 0,93% 212 107 363 € 0,93%Chinese activities with COGS 45 001 084 € 1,00% 45 001 133 € 1,00% 45 001 182 € 1,00%repositionning of brand Gross Profit 138 458 195 € 0,90% 152 767 969 € 0,91% 167 106 181 € 0,91%image (more « Bling- Marketing & Sales 296 667 € 0,29% 221 667 € 1,34% 221 667 € 1,00% CRM & Public Relations 216 667 € 141 667 € 141 667 €Bling ») 0,08% 1,53% 1,00% Tastings 50 000 € 1,00% 50 000 € 1,00% 50 000 € 1,00% Other 30 000 € 0,67% 30 000 € 1,00% 30 000 € 1,00%New trainings Reasearch & Development 25 000 € 1,48% 25 000 € 1,00% 25 000 € 1,00% WebsiteStart of the « Best General & Administration 140 333 € 0,89% 125 333 € 1,12% 125 333 € 1,00%customers France 125 333 € 1,00% 125 333 € 1,00% 125 333 € 1,00%programme » Other regions 15 000 € Operating Income 137 996 195 € 0,90% 152 395 969 € 0,91% 166 734 181 € 0,91% Financial Income 20 000 € 1,00% 20 000 € 1,00% 20 000 € 1,00% EBIT 138 016 195 € 0,90% 152 415 969 € 0,91% 166 754 181 € 0,91% Interest Expense 750 € 1,00% 750 € 1,00% 750 € 1,00% Taxes 46 000 798 € 0,90% 50 800 243 € 0,91% 55 579 168 € 0,91% Net Income 92 014 647 € 0,90% 101 614 977 € 0,91% 111 174 262 € 0,91% 3/2/2013
  29. 29. Conclusion 29 3/2/2013

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