The Chateau de Vallois wine estate is debating whether to preserve its luxury brand or extend its reach. Gaspard, the majority owner, must decide between his traditional views and his granddaughter Claire's proposal to produce a third, more affordable wine. Francois questions if there are enough grapes and resources for a new product. The estate risks losing its negociants but could attract younger customers and extend its brand by entering a new, lower price market segment. Gaspard must determine the best path for future generations at the estate.

1. PRESERVE THE LUXURY OR EXTEND THE
BRAND ?

2. Chateau de Vallois
•Wine producing estate
•Family owned
•Record of quality and reputation

3. Gaspard de Sauveterre
•Owner
•Possesses 50% of estate
•Traditional perspective
•Decision maker
•Worried about future generations

4. Claire de Valhubert
•Granddaughter of Gaspard
•Possesses 25% of estate
•Modern perpective
•Proposed a change

5. Francois de Sauveterre
•Son of Gaspard
•Possesses 25% of estate
•Traditional perspective

6. Jean Paul
•Estate manager
•Agriculture engineer
•Worked for 30 years in estate

7. Negociants
•Merchants and dealers
•Traditional perspective
•Buy wine from de Vallois
•Sell and ship wine
•Reputation determine the price

8. ABOUT COMPANY
• Selling 2 wines
• Cost : one wine @1000 euro
: second wine @ 100-450 euro
• best selling wine

9. What to

10. Enter
“AFFORDABLE
LUXURY “
Market

11. Claire proposed
•Produce third wine and sell it directly.
•Keep the price low around 20-25 euro.
•Attract more young consumers.
•Extend the brand.

12. Francois perspective
•Not enough grapes
•More investment
•New distribution and marketing channel
•Losing negociants.
•Who will produce ?

13. Solution
More grapes
Buy land and growBuy grapes
overseasHere itself

15. Final decision depends on Gaspard

16. SOME EXAMPLES

18. IN 1991

19. IN 1995

20. IN 1999 ( INR 5)

21. IN 2001

23. TATA NANO
• FOR MIDDLE CLASS
• KEEPING ITS CORE
PROPERTIES
• ATTRACTING AN
ENTIRE NEW MARKET
SEGMENT
• MORE DEMAND

25. HUL
•WILL INTRODUCE
PACKED ROTI
•RESEARCH DONE
•HIGH DEMAND

27. RECOMMENDATION

28. 1.
To attract young drinkers and
other segments of people
Gaspard should consider
Claire’s suggestion

29. 2.
Claire should proceed with
her suggestion while
francois should take care of
already established estate.

30. 3.
The distribution and
marketing channel should be
new for the third wine and
they should adopt different
strategy for it.

31. 4.
They can give the third wine a
new product name and create
a new brand so there is no
danger of bad mouthing or
declination of the estate.

32. Lets relate this to
some concepts in
Kotler textbook

33. BRAND EQUITY

34. BRAND
POSITIONING

35. BRAND EXTENSION

37. Created by Jay s. Mehta,
SPCE, during an
internship by Prof.
Sameer Mathur, IIM
Lucknow.
www.iiminternship.com

38. THANK YOU