Chateau Margaux Wines

In: Business and Management

Submitted By Ayo187
Words 869
Pages 4
Consumer Conditions
Chateau Margaux Wines

Background: Chateau Margaux produces one of the highest quality wines in the world. It is not unusual for a bottle to sell for over $100.00. There has been a tremendous increase in wine usage over the last ten years. This is due to the introduction of lower priced New World Wines in Canada and the United States. These wines come from California, Australia, Chile, Argentina, South Africa and New Zealand.

The quality of these wines is very good, and the grape varieties are the same as in France: Merlot, Shiraz, Cabernet, Malbec, Pinot Noir, Shiraz, and Zinfandel.

Chateaux Margaux does not participate in the quickly growing segment. They are considering launching a lower priced wine which does not carry the Chateaux Margaux name. They would use the grapes that are very good but are not up to the standards of a Margaux. These lesser quality but great tasting grapes would be able to compete on a price level with

Market Measures

Size of the Market

The wine industry was worth $213.8 billion as of 2005 or 18.9 billion litres. The industry is forecasted to grow 2.7% by 2010 making it worth $243.7 billion. Five percent of global wine production comes from France, worth $10.69 billion in 2005.

Category Sales

New World wines have created a higher consumer demand for simpler wines. The sales in this category have experienced the most growth of all of the wines. Consumers find the product easier to relate to and easier to drink. Although, the sales for premium wines have not necessarily gone down, the market has grown. This means there are more people purchasing wine that are not considering premium brands.

What does the Market Buy?

Core Benefit: The main reason people consume wine is for taste. A majority of users also drink it for its ‘heart’ benefits.

Brand: The Chateaux Margot…...

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