Case | HBS Case Collection | October 2006 (Revised August 2007)

Marketing Chateau Margaux

by John A. Deighton, Leyland Pitt, Vincent Marie Dessain, Daniela Beyersdorfer and Anders Sjoman

Abstract

Chateau Margaux, luxury brand or connoisseur brand? Although France is awash with unsold wine, demand has never been stronger for the very finest Bordeaux. How should Margaux sustain and grow its business? The Chateau management team is wondering if it can take more control of distribution instead of leaving it to the Bordeaux wine merchants. Also, can the Chateau build marketing and sales capabilities on its own? Who is the target market, wine connoisseurs or the newly rich? Corinne Mentzelopoulous, who took over the estate from her father in 1980, wonders whether a new lower-priced wine should be added to the portfolio.

Keywords: Price; Growth and Development Strategy; Brands and Branding; Distribution; Luxury; Food and Beverage Industry; France;

Citation:

Deighton, John A., Leyland Pitt, Vincent Marie Dessain, Daniela Beyersdorfer, and Anders Sjoman. "Marketing Chateau Margaux." Harvard Business School Case 507-033, October 2006. (Revised August 2007.)