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

The Stakeholders

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

The Negociants

Dealers and Merchants

Traditional perspective

But even in bad times to maintain relationships

Brand Elements

PACKAGING

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

SUCCESS

TATA TEA

Evolving consumer patterns

Divestment& focus on branding

Tata Global Beverages

56 tea gardens across India

2001

2005

20021000 crore

20158000 crore

REVENUE

VIVANTA by TAJ

• 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

FAILURES

• 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• Mix of religion & product• Outdated for new generation• Ganga water considered polluted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?