Preserve the luxury or extend the brand??
Aug 12, 2015
Stake holders:Owner:
Gaspard de Sauveterre
CEO:
Francois de Sauveterre
Estate manager:
Jean Paul Oudineaux
In 1855, de Vallois had been classified as ‘Premier Grand du Classe’ which allowed it to charge top price
for it’s wine
Why extend the brand?• A chance to attract and retain the next
generation of wine lovers
• Added flexibility and a chance to stay ahead of the drinking trends
• An opportunity to meet the demands of consumers who want to buy wine directly
•Capitalization on the existing Chateau de Vallois brand
•Monetary benefits and larger customer base
•Assured loyalty from the younger consumers, once they can afford the luxury wine
Why preserve the luxury?• Not enough grapes for a third de
Vallois wine
• Risking the goodwill of the people currently selling the wine
• Lack of expertise in marketing of low priced wine
•Added expenditure on distribution and marketing
•Alienation of core customer base
•Consumers could worry of mixing low quality grapes in the high quality wine
(1).
To keep young drinkers buying and to attract future high quality wine drinkers, Gaspard de Sauveterre must venture into the branded wine market.
(3).
Their marketing strategy(for the exclusive brand) should emphasize on the preservation of their brand
(4).
Implement direct marketing, helping the estate better understand wine marketing and their distribution methods
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BRAND EXTENSIONS have been the core of strategic growth for a variety of firms during the past decade
A brand extension when done, should be a perfect fit with the parent brand and resonate with the consumer’s mindset