Preserve the Luxury or Extend the Brand
Group- 4
Bordeaux region of France
Premier Grand Cru Classe;Premium Product
Two types of wine produced
Grand Vin duPrice 1,0001,50,000 bottle
PuinePrice 1002,00,000 bottle
Claire de Valhubert (Granddaughter):proposer of change
Gaspard de Sauveterre(owner):Traditional Perspective
Francois de Sauveterre(CEO):Day to Day operations
Jean-Paul Oudineaux(Agricultural Engineer):Questions the operations
Dealers and Merchants
Traditional perspective
But even in bad times to maintain relationships
Customer Based Brand Equity
EXCLUSIVE
AUTHENTIC
HERITAGE
LADDERING
Self Actualization
Ego(Wine)
Social
Safety
Psychological
Problems
• Target Young Drinkers?
• Spend on distribution channels & marketing?
• Should it import grapes?
Stay True to Tradition: Preserve the Luxury
Expand Internationally: Tap into the affordable Segment
Factors FOR Extension
Capturing Next Generation of Wine Lovers
Capitalizing on the existing Chateau de Vallois Brand
Increased Revenue By utilizing the estate fully
Direct Customer reach (Through Online service)
Gaining the Customer Loyalty Of Young customers for Expensive wines
Factors AGAINST Extension
Dilution of Brand Equity
Added expenditure on the Marketing and distribution
Alienation of
Core Customer Base
Loss of goodwill among the Negociants
Lack of Expertise –Affordable segment
•Population : 1.27 billion people•Middle class : 300 million people •Per Capita income : $ 5,350
The Indian Scenario
TATA TEA
Evolving consumer patterns
Divestment& focus on branding
Tata Global Beverages
56 tea gardens across India
2001
2005
20021000 crore
20158000 crore
REVENUE
• Positioned as upper upscale’ five-star hotel
• 2nd after the PREMIUM TAJ HERITAGE BRAND
• Launch year occupancy 68% against industry estimates of 3 yrs for a new property to reach 50%
• Brand recall value - top three in the hotel industry
• Targeted at youth• Priced at premium
GODREJ GANGA SOAP
• Mix of religion & product• Outdated for new generation• Ganga water considered polluted
MARUTI VERSA
-Steep Price at par with entry level sedan
HARLEY - DAVIDSON
-ROUGH-OIL-SWEAT
Hi!I AM 5S
You?
Hello!I AM
Apple 5C
Apple doesn’t do
CHEAP
• “unapologetically plastic” line in the product video• Sales of the 5C failed to meet
expectations• Apple to kill off iPhone 5C
production
Are you telling me I made a mistake?