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PRESERVE THE LUXURY OR EXTEND THE
BRAND ?
Chateau de Vallois
Wine producing estate
Family owned
Record of quality and reputation
Gaspard de Sauveterre
Owner
Possesses 50% of estate
Traditional perspective
Decision maker
Worried about future generations
Claire de Valhubert
Granddaughter of Gaspard
Possesses 25% of estate
Modern perpective
Proposed a change
Francois de Sauveterre
Son of Gaspard
Possesses 25% of estate
Traditional perspective
Jean Paul
Estate manager
Agriculture engineer
Worked for 30 years in estate
Negociants
Merchants and dealers
Traditional perspective
Buy wine from de Vallois
Sell and ship wine
Reputation determine the price
ABOUT COMPANY
 Selling 2 wines
 Cost : one wine @1000 euro
: second wine @ 100-450 euro
 best selling wine
What to
Enter
AFFORDABLE
LUXURY 
Market
Claire proposed
Produce third wine and sell it directly.
Keep the price low around 20-25 euro.
Attract more young consumers.
Extend the brand.
Francois perspective
Not enough grapes
More investment
New distribution and marketing channel
Losing negociants.
Who will produce ?
Solution
More grapes
Buy land and growBuy grapes
overseasHere itself
Preserve the luxury or extend the brand
Final decision depends on Gaspard
SOME EXAMPLES
Preserve the luxury or extend the brand
IN 1991
IN 1995
IN 1999 ( INR 5)
IN 2001
Preserve the luxury or extend the brand
TATA NANO
 FOR MIDDLE CLASS
 KEEPING ITS CORE
PROPERTIES
 ATTRACTING AN
ENTIRE NEW MARKET
SEGMENT
 MORE DEMAND
Preserve the luxury or extend the brand
HUL
WILL INTRODUCE
PACKED ROTI
RESEARCH DONE
HIGH DEMAND
Preserve the luxury or extend the brand
RECOMMENDATION
1.
To attract young drinkers and
other segments of people
Gaspard should consider
Claires suggestion
2.
Claire should proceed with
her suggestion while
francois should take care of
already established estate.
3.
The distribution and
marketing channel should be
new for the third wine and
they should adopt different
strategy for it.
4.
They can give the third wine a
new product name and create
a new brand so there is no
danger of bad mouthing or
declination of the estate.
Lets relate this to
some concepts in
Kotler textbook
BRAND EQUITY
BRAND
POSITIONING
BRAND EXTENSION
Preserve the luxury or extend the brand
Created by Jay s. Mehta,
SPCE, during an
internship by Prof.
Sameer Mathur, IIM
Lucknow.
www.iiminternship.com
THANK YOU

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