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Preserve the
Luxury or
Extend The
Brand?
Château de Vallois
Types of
Grand Vin du
Château de Vallois
• Premium Wine
• Cost – €1000
• Production – 150,000
Bottles/ year
Puiné
• Second in Line
• Cost – €100
• Production – 200,000
Bottles/ year
• Rest of the grapes were sold to other estates
Stake Holders
Major
Gasperd de
Sauveterre
50%
François de
Sauveterre
25%
Claire de Valhubert
25%
Jean-Paul Oudineaux
0%
Stake Holders
Gaspard de Sauveterre
• Owner of Château de Vallois (50%)
• Steadily Profitable since 1980
• Deciding whether to expand or not
(Grand Father)
François de Sauveterre
(Son)
• CEO of Château de Vallois (25%)
• In control of day-to-day operations
• Traditionalist Perspective
Claire de Valhubert
• Stakeholder of Château de Vallois (25%)
• Studied from France’s elite grandes écoles
• Planned to join Family Business
• Radical Perspective
(Grand Daughter)
Jean-Paul Oudineaux
(Estate Manager)
• Agricultural Engineer
• Has been working for Gaspard for 30 Years
• Helped Gaspard in restoring the estates to its
former glory
Négociants
• Look after the Marketing and Distribution
chain.
• Would buy even in the bad year.
• Took nearly half of Profit.
(Specialist Merchant)
The Problem?
Younger wine enthusiasts were
being priced out of High-End
French Wines
• Enter “Affordable Luxury” market
• Introduce a branded Wine at a
price of 20 to 25 a bottle.
• Keep the new wine seperate
• Sell Directly to customers
Conflict
• Loss of Exclusivity of Brand
• Might sever relationship with Négociants
• Lack of experience in Marketing and Distribution Chain
• Will effect the Traditional Culture
Preserve the
Luxury or
Extend The
Brand?
Tanishq launches diamonds for
teens & working women
Range Starts from ₹ 500
But Still maintains exclusive high-end jewelry
collections
http://www.thehindubusinessline.com/marketing/tanishq-launches-diamonds-for-teens-working-women/article4329324.ece
The iPhone 5C Is Not A Failure
- Forbes
Apple launched a ‘budget’ model –> IPhone 5C
But still maintained its exclusivity with IPhone 5S
Options that should be
considered
WAY1
WAY2 Expand Internationally
WAY3
WAY4
MINIMAL
Of the Best
WAY5
Should we
Preserve the
Luxury or
Extend The
Brand?
Criteria for Evaluation
Criteria
1
Criteria
2
Profitability
Criteria
3
Maintain Relationship with négociateurs
Criteria
4
‘Affordable Wine’ Market Share
These slides were created by Archit Raj, IIT
Delhi, during a Marketing internship by Prof.
Sameer Mathur, IIM Lucknow
(See www.IIMInternship.com )

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