Chataux Margaux Business Case

‗‘Gosse du Margaux‘‘

A name which in English translates into ‗‘Child of Margaux‘‘.

A wine that is created by Chateâu Margaux,

one of the four wines that received the highest rank of Premier Cru.

The third wine carries the same prestige and luxury that the Margaux
clienteles adore. Although the price is moderate paralleled to the existing
two wines, the consumers recognize the definition of

‗‘child of Margaux‘‘.

Index

INDEX 3

1. INTRODUCTION 5

1.1. COMPANY INFORMATION 5

1.2. PROBLEM STATEMENT 5

2. EXECUTIVE SUMMARY 6

3. EXTERNAL AND MARKET ANALYSIS 7

3.1. MARKET ANALYSIS 7

3.1.1. Import and Export 7

3.1.2. Customer Trends 7

3.1.3 Demographics 7

3.2. MAJOR SEGMENTS 8

3.2.1. Fine wine buyers 8

3.2.2. Enthusiasts 8

3.2.3. Image seekers 8

3.2.4. Savvy Shoppers 9

3.2.5. Traditionalists 9

3.2.6. Satisfied sippers 9

3.2.7. Overwhelmed 9

3.3. COMPETITOR ANALYSIS 9

4. INTERNAL ANALYSIS 9

4.1. TARGET MARKET 9

4.2. POSITIONING 10

4.3. COMPETITIVE 10

4.3.1. Competitive advantage 10

4.4. MARKETING MIX 10

4.4.1. Product 10

4.4.2. Place 10

4.4.3. Price 10

4.4.4. Promotion 10

4.5. SALES & PROFITS 11

4.5.1. Sales 11

4.5.2. Profits/Loss 11

5. SWOT ANALYSIS 12

5.1. CONFRONTATION MATRIX 12

6. SEGMENTATION, TARGET MARKET, POSITIONING 13

6.1. TARGET MARKETS, SEGMENTATION 13

6.1.1. Enthusiasts 13

6.1.2. Image seekers 13

6.1.3. Savvy shoppers 13

6.1.4. Traditionalists 13

6.1.5. Satisfied sippers 13

6.1.6. Overwhelmeds 14

6.2. FUTURE PROSPECT 14

6.3. NEW SEGMENTS 14

6.3.1. New image seekers 15

6.3.2. New enthusiasts 15

6.3.3. New traditionalists 15

6.4. POSITIONING 15

7. CORPORATE STRATEGY 15

7.1. CORPORATE-LEVEL STRATEGY 15

7.2. BUSINESS-LEVEL STRATEGY 15

7.3. FUNCTIONAL-LEVEL STRATEGY 16

8. OBJECTIVES 16

8.1. SHORT-TERM GOALS 16

8.2. LONG-TERM GOALS 16

9. MARKETING MIX 16

9.1. PRODUCT 16

9.1.1. Three levels of Product: 16

9.1.2. Product positioning strategy 17

9.2. PLACE 17
9.2.1. U.S. Market 17

9.2.2. Product Life Cycle: Growth Stage 18

9.3. PRICE 18

9.3.1. Pricing Strategy 18

9.4. PROMOTION (4 ELEMENTS OF PROMOTIONAL MIX) 19

9.4.1. Advertising 19

9.4.2. Public Relations 19

9.4.3. Corporate Image 19

9.4.4. Direct Marketing 19

9.4.4.3. New image seekers 20

9.4.4.4. New enthusiasts 20

9.4.4.5. New traditionalists 20

9.5. DISTRIBUTION 20

9.5.1. Distribution Strategy 20

10. BUDGET 21

10.1. PROFIT & LOSS ACCOUNT 21

10.1.1. Fiscal Year 2014 21

10.1.2. Fiscal Year 2015 22

10.1.3. Fiscal Year 2016 22

11. RECOMMENDATIONS 22

12. SOURCE LIST 23

13. APPENDIXES 23

13.1. APPENDIX 1 23

13.2. APPENDIX 2 24
13.2.1. Peer assesment 24

13.3. APPENDIX 3 28

13.3.1. Group cooperation report 28

1. Introduction

1.1. Company information

Up until this point, the estate had been selling two red wines, a
first wine whose retail price often exceeded $1000 per bottle, and a
second wine whose retail price often exceeded $200 per bottle. We,
from the management team, are considering and preparing to launch a
new third wine: Esprit du Chateau Margaux, made from the estate‘s
production not used to make the first two.

Château Margaux is one of the most popular exclusive, luxury, popular,

international wine producer, with a big market share in Europe and
in more places in the world. The current situation is that Château
Margaux sells two high quality and highly priced exclusive wine. The first
wine has a Parker Score of 99 out of a 100 and a average price of
$1.280. The second wine has a Parker Score of 93 out of a 100 and
average price of $185.

1.2. Problem statement

This marketing will display the research that has been done to solve the
following problem: ―How could we solve the loss of the core customers in
the United States?.

To solve this problem we explain some of the background information,

the current situation and gives a future perspective for Château
Margaux. We introduced a third bottle of wine, under the brand name of
Château Margaux, and this bottle will be called: Gosse du Margaux.

2. Executive summary

Château Margaux is currently in the market of the winery. As of 2013,

the global wine market was valued at generating between $60-65 billion
in annual revenues. The amount of bottles being produced was
estimated to be over 30 billion. The production of wine has seen a shift
from being produced in the ‗‘Old world‘‘ to an increasing production of
wine in the ‗‗New world‘‘. This shift created an increasingly upsweep in
the global production of wine which resulted in a huge supply of wine to
the market. This development forced many wine producers to lower their
prices in order to be able to compete in the wine market.

Château Margaux will be expanding its market with a third wine titled
―Gosse du Margaux‖.

Château Margaux offers three types of wine, the first wine being the best
and the third being the least good. The third wine is however, of such
high quality that it is considered good enough to sell. The United States
of America has a population of over 300 million people and because the
wine industry is currently booming in the US; there are many potential
customers. To create growth in the US market, Château Margaux first
needs to introduce the third wine to this market. With the new product
development, Château Margaux will increase its market share.

Objectives

The objectives related to the launch of the third wine are separated in
short and long term. Introducing the third wine will be done with the
introduction price of 99 dollar in the first quarter of 2014. The desired
quantity sold is 600 cases per month in the US, creating revenue of 8
million dollar at the end of the first fiscal year. The predicted increase in
market share is 2% after the first fiscal year and 10% at the end of 2016.
The sales will increase during the second year from 600 to 1000 cases
per month. The sought increase will lead to revenue of 8 million dollar
during the second year from 10 to 16 million dollar a year.

Expenses and profits

The total operating expenses for the year 2014 is $4.020.000, 00. These
expenses cover three main parts, specifically, distribution, promotion
and the wages. The expected retained profit at the end of 2014 is
$3.575.302, 50.

This business plan gives a clear explanation of the strategies which

were set, to be precise a corporate strategy, which consist out of a
corporate-level, a business-level and a functional-level strategy. When
used in the right way these strategies can be responsible for a turnover
of approximately 13, 8 million dollar for 3 years.

3. External and market analysis

3.1. Market analysis

Château Margaux is currently in the market of the winery. As of 2013,

the global wine market was valued at generating between $60-65 billion
in annual revenues. More than hundred thousands of wineries generated
these revenues from corner to corner globally. The amount of bottles
produced were estimated to be over 30 billion, varying from low-priced
supermarket wines costing around $3 to upwards $3000 bottles in
expensive restaurants.

The production of wine has seen a shift from being produced in the ‗‘Old
world‘‘ (France, Italy, Spain) to an increasing production of wine in the
‗‗New world‘‘ (America, Argentina, Australia, etc.). This shift created an
increasingly upsweep in the global production of wine which resulted in a
huge supply of wine to the market. This development forced many wine
producers to lower their prices in order to be able to compete in the wine
market. This threat due to the above-mentioned shifts resulted in
governments protecting their domestic wine production. These
protection methods ranged from subsidizing to restrictions on vine
planting.

3.1.1. Import and Export

The global wine export is still dominated by the previous mentioned ‗‘Old
world‘‘ countries even though the shift had occurred. The leading wine
importers in the world are the UK and Germany, followed by the United
States. The high-end bottles mentioned in the first paragraph of this
chapter are exported to areas where there is a high willingness to pay in
contrary to the low-end wine which is usually exported in bulk to large
retail chains. Those large retail chains import different low priced wines
in order to bottle it their selves and sell it under their own private label.
This way of importing and reselling it became an increasingly popular
trend in numerous countries.
3.1.2. Customer Trends

Wine was for many years tied with traditions and everyday life
happenings such as families dining together. These activities however,
have seen many changes since the typical family structures died out the
last decades. The previous trend was one of the motives for the decline
in wine consumption. Wine consumption became more occasion-driven
and takes place outside of consumers‘
households more and more often.

3.1.3. Demographics

There are various correlations between the wine consumption and

numerous demographics. In the US, older and educated people
consume United Kingdom and Australia the consumption of wine for the
largest segment. An additional characteristic is that the biggest part is
female and well educated.

3.1.3.1. Location

The location plays a big role in the spending behavior. In the US half of
all wine purchases (by $ amount) were made in so-called ‗‘on-premise‘‘
(bars and restaurants). These venues sell the wines for a high price,
which causes the high amount of purchases by dollar amount. If you
concentrate on the actual, it represents only 20% of the total volume of
wine being sold in the US. The remaining 80% was sold in ‗‘off-premise‘‘
(liquor stores, grocery stores, fine wine shops etc. Another interesting
switch in wine sales is that Internet retailers are getting increasingly
more active. The consumption of wine in China grew a lot over the last
couple of years. The consumption was valued to be bigger than that of
the US by three times. Wealthy Chinese citizens increasingly showed
more awareness in wine. In 2008, the Chinese government eliminated
all taxes and restrictions on the import of wine. The elimination of these
restrictions created a huge demand of wine (2 billion bottles in 2012) and
this trend led China to be the fifth largest market in the world by volume
pushing the UK of its place.

The graph below shows the enormous growth in the Chinese

consumption of wine from 2000 until the forecasts of 2012. There is not
one other country, which has seen such a relative growth in wine
consumption. The previous paragraphs explain why these developments
occurred.

3.2. Major segments

• Fine wine buyers (connoisseurs, ‗‘luxury‘‘ buyers)

• Enthusiasts

• Image seekers

• Savvy shoppers

• Traditionalists

• Satisfied sippers

• Overwhelmed

3.2.1. Fine wine buyers

3.2.1.1. Connoisseurs

A connoisseur is a wine consumer that is knowledgeable about the

different types of wine on the market. They appreciate high quality and
distinguish wine by the different regions.

3.2.1.2. ‗‘Luxury‘‘ buyers

A luxury buyer is a wine consumer that shortages deep knowledge of

different types of wine. They usually consume wine in order to represent
an image of wealth.

3.2.2. Enthusiasts

An enthusiast buyer is someone whom portrays passion and knowledge

when it comes to wine consumption.

3.2.3. Image seekers

Drinking wine is a status symbol for an image seeker. The knowledge is

basic and they are driven by wine trends. Choosing a wine bottle is often
based on the idea of ‗‘expensive is better‘‘.

3.2.4. Savvy Shoppers

Consumers that enjoy shopping for wine. They are usually coupon users
and take pride in getting discounts for wine bottles.

3.2.5. Traditionalists

These consumers do not switch to new brands. They prefer a wide

variety of well-known brands and enjoy wineries that have perfected the
art of winemaking during a long time.

3.2.6. Satisfied sippers

They are not very knowledgeable about different types of wine. The
experiences of buying the ‗‘perfect‘‘ wine and combining it with dishes is
something they do not care about.

3.2.7. Overwhelmed

These consumers find the selection of wine to massive. They prefer

simple and easy wine descriptions and wont purchase a bottle if the
information is to confusing.

3.3. Competitor analysis

The competitive advantage for wine producers used to be all about

which types of grapes were produced and what type of vineyard one
producer had. Now however, it is all about economies of scale and the
marketing around a company‘s brand. The numerously mentioned Old
world producers still have the competitive advantage when it comes to
creating customer value around the tradition and heritage aspects. The
global shifts however, have made it very difficult for old world producers
to depend solely on tradition and heritage since the new world producers
are gaining the same prestige.

When you look at the manner in which the wine producing countries are
divided all over the world you will find that the market is extremely
fragmented. The 20 leading wine producers are based in 10 different
countries all over the world; however, many wine companies are looking
for developing regions in order to produce.

(See appendix 1.)

4. Internal Analysis

4.1. Target market

The consumers of wine have been segmented into six groups:

1. Enthusiasts

2. Image seekers

3. Savvy shoppers

4. Traditionalists

5. Satisfied sippers

6. Overwhelmed

Château Margaux offers three types of wine, the first wine being the best
one and the third being the least good. The third wine is however, of
such high quality that it is considered good enough to sell. The wines are
sold at relatively normal to high prices. By making this choice,
enthusiasts, traditionalists and Image seekers are targeted the most.
Enthusiasts are very passionate about wine and its background, and the
first wines have a big reputation amongst the enthusiasts. Image
seekers could be linked with the ‗luxury consumers‘ which buy wine
more so to show their wealth rather than because of their interest in
wine.

4.2. Positioning

The wine industry is easily influenced by certain factors such as critics.

That is why Château Margaux has used several occasions to uplift their
brand‘s status. They do this by organizing events such as wine tastings
and inviting important people such as the ambassador of china. By doing
this they raise the interest of possible Chinese consumers. Because of
the actions that Château Margaux has taken, they lost popularity within
France itself but have gained popularity internationally in places such as
china. In china there are the so called ‗luxury consumers‘ that are
interested in the wine because of its price and prestigious background.

Château Margaux brand used to position itself as a brand that

concentrated on the people that were interested in the background and
details of the wine. Négociants however, are being used in order to sell
the wines to luxury consumers with no such interest which means that in
the minds of luxury consumers Château Margaux is ‗just another‘
expensive wine that shows how wealthy they are.
4.3. Competitive

4.3.1. Competitive advantage

It is correct to say that Château Margaux thinks ahead of its time. The
competitive advantage Château Margaux possesses, started to make
shape in the 1980‘s when the general manager retired and Pontallier
was hired. The execution of certain practices that were not being applied
yet in the 1980‘s were applied later on because of the influence of
Pontallier.

The way this competitive advantage is described, is the urge to keep

improving the quality of their wine.

4.4. Marketing mix

4.4.1. Product

Château Margaux is a very prestigious brand that is known for offering

top-notch fine wines. They offer two main types of wine; the first growth
and the second. The first growth is their main product. The second
growth is also well known.

The use of innovative and sophisticated methods to prepare their wine

makes them deserve a parker score of 99 for their first wine and a score
of 95 for their second wine. This illustrates how prestigious their wine is.

4.4.2. Place

Most of fine wines from Bordeaux are being distributed through

négociants. These négociants sell the wine further to consumers
internationally. As already mentioned, it is due to the négociants that the
buyers of Château Margaux wines are partly from Russia and China.

4.4.3. Price

Château Margaux is selling two types of wine; the first and the second
wine. The First wine is priced at $1280 a bottle. The second wine is
priced $185 a bottle. Different factors influence these prices, such as the
parker score and the overall brand positioning of the wine brand.

4.4.4. Promotion
Château Margaux has promoted its brand through wine-tasting events
that were organized with the intention to receive feedback on their wine.
These events were created so that the wine that Château Margaux sells
can be evaluated by the tasters and in this way can be priced according
to its taste and future popularity.

4.5. Sales & Profits

4.5.1. Sales

Château Margaux produces an average of 13000 cases of their first

wine and 15000 cases of their second wine. It is stated that 80% of the
total production is being sold. The following calculations roughly show
how many cases of wine are sold, a case of wine consist of 12 bottles:

• First wine: 13.000 x 12 x 0,8 = 124.800

• Second Wine: 15.000 x 12 x 0,8= 144.000

4.5.2. Profits/Loss

Due to the changing prices of the two wines, each year a different
amount of turnover is made. Because of this, the amount of profit also
differs each year. The following table roughly shows the profit made by
selling the first wine.

Year 2007 2008 2009 2010 2011

Price € 442 € 528 € 1.122 € 917 € 502

Units produced 156000 156000 156000 156000 156000

Turnover € 68.952.000 € 82.368.000 € 175.032.000 € 143.052.000 €

78.312.000

Production costs € 3.900.000 € 3.900.000 € 3.900.000 € 3.900.000 €

3.900.000

Profit € 65.052.000 € 78.468.000 € 171.132.000 € 139.152.000 €

74.412.000

The following table roughly shows the profit made by selling the second
wine.

Year 2007 2008 2009 2010 2011

Price € 141 € 119 € 124 € 172 € 119

Units produced 156000 156000 156000 156000 156000

Turnover € 21.996.000 € 18.564.000 € 19.344.000 € 26.832.000 €

18.564.000

Production costs € 2.340.000 € 2.340.000 € 2.340.000 € 2.340.000 €

2.340.000

Profit € 19.656.000 € 16.224.000 € 17.004.000 € 24.492.000 €

16.224.000

The following tableroughly shows the total amount of profit made each
year by selling the first and second wine:

Year 2007 2008 2009 2010 2011

Profit first wine € 65.052.000 € 78.468.000 € 171.132.000 € 139.152.000

€ 74.412.000

Profit second wine € 19.656.000 € 16.224.000 € 17.004.000 €

24.492.000 € 16.224.000

Total profit € 84.708.000 € 94.692.000 € 188.136.000 € 163.644.000 €

90.636.000

5. SWOT Analysis

5.1. Confrontation matrix

The high profit margins that are achieved by Château Margaux make it
possible to experiment with new distribution channels, online sales in
particular. This is a good way to reach more customers and sell more
products in this technological age. Furthermore, the sophisticated
production process make the taste of the wine extraordinary; the wines
that Château Margaux sells are popular amongst many wine-lovers. The
demand for Château Margaux‘s first wines is already strong but still
growing, not only local but also internationally. Château Margaux is a
well-established brand that is indeed very popular amongst the ‗luxury
customers‘ from Russia and China. However, not only the luxury
customers are interested in the wines that Château Margaux sells, the
overall interest in wine is growing in and outside of Europe. The US,
China and Australia in particular are finding more interest in wine.
However, French wines are losing their market share globally as the US
and other countries produce wine themselves. Moreover, there is a case
of inconstancy concerning the quality and quantity of the wine it is hard
to meet the demands and standards of your customer, which are not
entirely clear to Château Margaux; their knowledge of their customer
base is rather insufficient. Another problem that goes hand in hand with
the inconstancy of the quantity of the wine produced by Château
Margaux is that there is no capacity to increase production without
damaging the brand. If Château Margaux decides to do so,
connoisseurs could damage their brand, which will influence the attitude
towards Bordeaux wines. Connoisseurs already have a negative attitude
towards Bordeaux wines but the possibility is there that if Château
Margaux decides to buy bulk wine and sell that as their third wine it will
lose the respect from the connoisseurs even more.

6. Segmentation, Target Market, Positioning

Château Margaux, as one of world‘s most famous wines, is a luxury

brand. This is widely believed because of the high quality and the
exclusivity of the brand. The prices of Château Margaux differ per year,
the years in which the wine is seen as most tasteful and of a higher
quality are more expensive. One of the things the famous wine brand is
known for is the way they are using the same procedure and materials to
produce the wine for over a decade. Furthermore, since the 1800s the
négociants (or merchants/dealers) spared Château Margaux owners
from the commercial aspects of the business and let them focus on
winemaking. This optimizes the quality and the taste of the wines.

6.1. Target Markets, segmentation

The consumers of wine are segmented into six groups:

• Enthusiasts

• Image seekers

• Savvy shoppers

• Traditionalists

• Satisfied sippers

• Overwhelmeds
6.1.1. Enthusiasts

Although the enthusiasts only form approx. 10% of the total customers,
they still spend the most of all other customers (a quarter of total
spending). The enthusiasts appreciate a good wine and like to enjoy
wine with friends. Furthermore, they have some knowledge about wine
and they both buy well known as unique wine selections.

6.1.2. Image seekers

The image seekers are usually wealthy people and buy the wine to show
their wealth. They do not have much knowledge about wines, and
usually buy the most expensive wines to impress their friends. The
Internet is the most used source for the image seekers to check out wine
lists, for example, before he/she goes to have a drink. They do this to
impress their friends and pretend as if they have much knowledge about
wines. The image seekers also form a big part of the total consumers for
wine, with 20%.

6.1.3. Savvy shoppers

The savvy shoppers always seek for the less expensive wines and they
do not recoil to visit all the shops for discounts or the less expensive
wines. They also use many coupons and enjoy shopping for wine. At
last, the savvy shoppers are 15% of the total wine-market.

6.1.4. Traditionalists

Usually have a couple of (or one) brand(s) which they tend to stick to,
the traditionalists are easily influenced by marketing efforts and prefer
shopping at retail places. This makes it easier for them to find the better-
known brands, which they also seem to take a liking to. The
traditionalists have the same segment size as the savvy shoppers.

6.1.5. Satisfied sippers

Just like the traditionalists, the satisfied sippers do not like a lot of
variation; in fact, they usually buy the same brand they like. Satisfied
sippers, unlike the other segments, do not like the experience of buying
wine and have no interest in getting to know more about wines.

6.1.6. Overwhelmeds
The overwhelmeds like to play it safe, and that is why they always want
advice at what tastes the best. They do not look at the labels and rather
get information and base their purchase on that. If they do not get any
information or do not know a wine, they will probably leave it and search
for a more ‗secure‘ wine.

Exhibit 1.

6.2. Future prospect

Château Margaux has a wide range of customers, varying from real wine
lovers to the (often rich) image seekers, who do it all for the fame. When
introducing the third wine, Château Margaux should focus most on the
traditionalists, since they are open for changes and are often looking for
unique brands. Expected is that the image seeker will be maintained no
matter what, since they do not really care about the taste or quality, but
solely buy the wine as a status symbol.

Furthermore, Château Margaux should consider pricing their new

wine(s) lower, to have more consumers buy it. Since Château Margaux
has many consumers, but lots of them have a rather small share of
purchase. (See exhibit 1)

6.3. New segments

The United States of America has a population of over 300 million

people and because the wine industry is currently booming in the US,
there are many potential customers. Furthermore, more and more young
people are interested in wine; the $30 billion business is also drawing
attention to all kinds of other segments in the population (e.g. celebrities)
. Of course, the customers we seek for the third wine in the United
States are very different from the ones who are interested in the first and
second wine. Thus, the customers for the 3rd wine mostly consist of
more ‗savvy shoppers‘, people who search for the discounted or less
expensive wines and less ‗image seekers‘, but the wine business
growing and with that also the segments.

Of course, the wine will not be sold at the ‗normal‘ wine sellers, but more
towards high quality restaurants. Nevertheless, the potential customers
are still high in size and although it will not (entirely) be the same brand,
they will also but the third wine.
The potential customers of the 3rd wine in the US can be divided into 3
main segments;

1. New image seekers

2. New enthusiasts

3. New traditionalists

6.3.1. New image seekers

These ‗new‘ image seekers will have the same characteristics as the
‗old‘ ones. However, now the wine is less expensive and the third wine is
not from the main brand (Château Margaux), this will attract also the
upcoming image seekers. Those who do not have a lot of money, but
still want to show that they are wealthy. The ‗old‘ image seekers will
probably stick with the first or second wine, because the third wine
seems to ‗cheap‘ to them and does not reflect their wealth.

6.3.2. New enthusiasts

The new enthusiasts will be, as the enthusiasts are for the first and
second wine, the biggest share of the customers of the third wine. These
new enthusiasts also like to spend a lot of time with friends and drink
wine. The big difference here is that there will be a lot more new
enthusiasts, because of the price of the third wine. This can also cause
many ‗old‘ enthusiasts to buy another brand, as the third wine will
become more of a ‗normal‘ wine, since more customers will buy it.

6.3.3. New traditionalists

The new traditionalists will love the third wine, because they do not like
to spend too much money, but still want a high quality wine. A big
advantage of this segment is that they tend to stick to one wine, and
(still) are easily influenced by marketing efforts.

6.4. Positioning

Château Margaux brand used to position itself as a brand that

concentrated on the people that were interested in the background and
details of the wine. However, Négociants are being used in order to sell
the wines to luxury consumers with no such interest, which means that
in the minds of luxury consumers Château Margaux is ‗just another‘
expensive wine that shows how wealthy they are. But of course, these
‗image seekers‘ are extremely profitable and have a share of purchase
of more than 20% percent. Therefore, although the image of the brand
may be damaged, Château Margaux will not have to worry about profits
and popularity. In the future, Château Margaux may want to get rid of
this image, but as long as profit keeps growing and Château Margaux
keeps its luxury status, there is no reason to change the image.

7. Corporate strategy

7.1. Corporate-level strategy

Château Margaux has been an exceptional winemaker since the 16th

century. One of Château Margaux key success factors is the renowned
quality of its wines. Having an already first and second wine, Château
Margaux will be expanding its market with a third wine. With the new
―Gosse du Margaux‖, wine Château Margaux will vitalize the consumer
with this new product. Château Margaux focuses the innovation of the
Château Margaux‘s brand on two core themes, excellence and passion.
To be successful in this market Château Margaux has to keep up its
quality standards. To create growth on the US market Château Margaux
first needs to introduce the third wine to this market. With the new
product, development Château Margaux will increase its market share.

7.2. Business-level strategy

Château Margaux will be focusing on differentiating itself from the other

lower classed wines. By being in the same price range, but slightly more
expensive than its competitors Château Margaux‘s third wine will sell in
higher volume.

Château Margaux can afford this through the reputation it has built up
with its previous wines. The review critics will also play a big role in the
success factor of the differentiation strategy. This is why Château
Margaux will invite the major critics to a private tasting session. The
outcome of this session will make or break the success of the third wine.

7.3. Functional-level strategy

It is essential for the success of Château Margaux, that the third wine
will be available again to the loyal customers. That means that it is our
responsibility to make the wine available to not only the traditional
market but to new segments as well. The new product should also be
available in restaurants to give image seekers the opportunity to buy the
wine at different locations.

The combination of a well-functioning network and innovative products

will position Gosse du Margaux on the US market for growth with even a
higher potential than its previous products.

8. Objectives

8.1. Short-term goals

• Bringing the third wine into the market at a price of 99 euro in the first
quarter of 2014

• Sell 600 cases per month in the US

• Achieve revenue of 8 million euro at the end of the first fiscal year

• Increase market share by 2% in the first fiscal year.

8.2. Long-term goals

• Increase market Share by 10% at the end of 2016.

• Increase the sales from 600 cases per month up to 1000 cases per
month during the during the second year

• Increase revenues by 8 million euro during the second year from 10 to

16 million euro a year

9. Marketing Mix

9.1. Product

9.1.1. Three levels of Product:

9.1.1.1. Core Product

By defining the core product clearly, Château Margaux can achieve

marketing excellence. The core product is also known as a benefit and is
generally intangible in nature. The core product of Château Margaux‘s
high-end luxury wine is satisfying thirst for extinguished alcohol and
value for money.

9.1.1.2. Actual Product

The actual product is the tangible, physical product of Château Margaux,
which is the wine. The core product of Château Margaux is a status
symbol. Therefore, the actual product will be a very high quality product
with high pricing. Château Margaux currently offers a line of high-quality
wine including the first wine; Château Margaux and the second wine;
Pavillon Rouge du Château Margaux.

Now Château Margaux is planning to expand the product line by

including a third wine named Gosse du Margaux. In addition, with Gosse
du Margaux, Château Margaux hopes to earn more revenue and
eventually increase their profit and market share.

However, less than half of what was left after blending the first two wines
was deemed of high enough quality for the third wine. In addition, due to
the small amount that was left, Château Margaux created a special
allure of the wine by using the scarcity of the product to their benefit. So,
the third wine; Gosse du Margaux exists out what was left after blending
the first and second wine.

9.1.1.3. Augmented Product

Augmented product is the non-physical part of the product. The

augmented product is an important way for Château Margaux to tailor
their core and/or actual product to the needs of an individual customer.

9.1.2. Product positioning strategy

Looking at the product/market grid, Château Margaux could easily

identify the product positioning strategy. This is due to the third wine of
Château Margaux and the distribution to the United States of America.
Moreover, by looking at the product/market grid Château Margaux could
easily decide which strategy they are going to apply.

9.1.2.1. Market Development

Gosse du Margaux is a new wine; however, it is still an existing product.

In addition, Château Margaux will be entering a new market, which is the
United States of America. That is why Château Margaux chose for the
market development strategy.

There are three approaches for Château Margaux to develop the

market. First, there is the expansion of the distribution channels. Besides
the expansion, there is also the selling in new locations. Last but not
least the identification of the potential users.

9.2. Place

It is best for Château Margaux to enter the United States of America

because the U.S. market shows great potential. In the United States,
there is a marked correlation between the tendency to drink wine and
various demographics. Wine drinkers in the U.S. tend to be older, have
higher disposable income, greater education levels, and are often
female.

9.2.1. U.S. Market

Wine sales in the U.S. from all production sources—California, other

U.S. states and foreign countries—increased 2% from the previous year
to a new record of 360.1 million 9-liter cases with an estimated retail
value of $34.6 billion, according to wine industry consultant Jon
Fredrikson of Gomberg, Fredrikson & Associates in Woodside.

"The U.S. is the largest wine market in the world with 19 consecutive
years of volume growth," said Wine Institute President and CEO Robert
P. (Bobby) Koch. "Wine shipments to the U.S. market climbed by nearly
50% since 2001. Moreover, it is likely that American consumption will
continue to expand over the next decade as wine continues to gain
traction among American adult consumers,‖ said Fredrikson &
Associates. "The amazing diversity of choices and exciting new offerings
are attracting new consumers and boosting consumption. Among the
key growth drivers are favorable demographics, a widening consumer
base and increasing points of distribution in both on- and off-sale
outlets.‖ Wine sales in U.S. stores and other off-premise measured
channels from all domestic and foreign producers grew 2% by volume
and 6% by value, according to Nielsen, a global provider of information
and insights into what consumers buy.

9.2.2. Product Life Cycle: Growth Stage

The U.S. market is currently in the growth stage, which is the point
where the product sales, revenues and profits begin to grow as the
product becomes more popular and accepted in the market. If Château
Margaux is successful with their strategy then the company will see a
rapid increase in sales. Once Château Margaux‘s third wine; Gosse du
Margaux‘s sales begin to increase the company share of the market will
increase. Once they get to this point Château Margaux will be able to
attain a part of the market from their competitors in the U.S.

9.3. Price

Gosse du Margaux is priced with the competition in mind. The Château

Margaux is setting high prices to show its luxury and/or prestige.
Château Margaux is not attempting to achieve the goals of offsetting low
prices by selling high quantities of products because there is only a
limited amount available for the third wine.

The third wine will have a Parker score of 90 and will be sold for $99, -,
which is less than the regular Château Margaux wine. The third wine;
Gosse du Margaux will be priced competitively, offering a good value
against the competition such as Château Latour.

9.3.1. Pricing Strategy

9.3.1.1. Mix of Premium Pricing & Psychological Pricing

Château Margaux uses a premium pricing strategy to establish a price

higher than their competitors, such as Château Latour. Premium pricing
strategy can be effectively used when there is something unique about
the product such as the scarcity of the third wine. Furthermore, when the
business has a distinct competitive advantage such as Château
Margaux. Château Margaux also uses a psychological pricing strategy.
Château Margaux will sell the third wine for $99, -, which is
psychologically less in the minds of consumers than $100, -. A minor
distinction can make a big difference.

9.4. Promotion (4 Elements of Promotional Mix)

9.4.1. Advertising

Advertising includes paid promotional placement of a product. There are

various types of advertisements; however, Château Margaux is going to
focus a lot on the ―word of mouth‖ advertising. Usually purchase
decisions of wine consumers are based on "word of mouth." However,
where does the "word" come from? In most cases, it comes from friends,
family or acquaintances in either face to face settings; online social
networking forums; or via texting.
9.4.2. Public Relations

Public relations could be maybe the most effective method. This is

because companies usually spread information to the media, which will
generate news coverage and therefore result in a form of free
advertisement. Château Margaux is going to organize a tasting ritual
especially for the introduction of the third wine Gosse du Margaux. This
will be a 3-day event where journalists, critics, importers, and
merchants/importers will be invited to taste the new wine. Critics such as
Robert Parker Jr. of the Parker Score, James Molesworth of the Wine
Spectator and Janice Robinson of the Financial Times will also be
invited. This will be one of the methods, which Château Margaux will be
applying in order to get the attention of the media and people.

9.4.3. Corporate Image

Corporate image refers to the importance of a company keeping a good

relationship with the public, avoiding scandal, and having a reputation for
delivering quality. Château Margaux already has an amazing reputation
as producing one of the most expensive, fine and exclusive wines in the
world. If an unknown product such as the third wine comes from a
respectable company such as Château Margaux, the likelihood of
people buying the product will be very high. Therefore, Château
Margaux will be fully utilizing their corporate image as a promotion tool.

9.4.4. Direct Marketing

Direct marketing is directed to a targeted group of scenarios and

customers rather than to a mass audience. The goals of direct marketing
are to generate sales or indications for sales representatives to pursue.
Château Margaux will be using direct marketing in order to place their
third wine in high-end and/or trendy restaurants, and specialized wine
shops. The targeted group of Château Margaux is:

9.4.4.1. The Enthusiast

The enthusiast exists out of 12% of the total consumers of which 25%
are actually spenders in the U.S. wine market. They consider
themselves passionate and knowledgeable about the total wine
experience. At, retail read labels and enjoys lingering in the wine
section. Like to be offered both well known as well as unique wine
selections. On premise (at restaurants), typically purchase wine by the
bottle.

9.4.4.2. The Image Seekers

The image seekers exist out of 20% of the total consumers of which
24% are actually spenders in the U.S. wine market. For them wine is a
status symbol. They only have the basic wine knowledge, and are driven
by awareness of the latest trends. They often use the internet as a key
source of information. When going out to a nice restaurant, they will
typically check out the wine list ahead of time online, so they can
impress their friends.

9.4.4.3. New image seekers

These ‗new‘ image seekers will have the same characteristics as the
‗old‘ ones. However, now the wine is less expensive and the third wine is
not from the main brand (Château Margaux), this will attract also the
upcoming image seekers. Those who do not have a lot of money, but
still want to show that they are wealthy. The ‗old‘ image seekers will
probably stick with the first or second wine, because the third wine
seems to ‗cheap‘ to them and does not reflect their wealth.

9.4.4.4. New enthusiasts

The new enthusiasts will be, as the enthusiasts are for the first and
second wine, the biggest share of the customers of the third wine. These
new enthusiasts also like to spend a lot of time with friends and drink
wine. The big difference here is that there will be a lot more new
enthusiasts, because of the price of the third wine. This can also cause
many ‗old‘ enthusiasts to buy another brand, as the third wine will
become more of a ‗normal‘ wine, since more customers will buy it.

9.4.4.5. New traditionalists

The new traditionalists will love the third wine, because they do not like
to spend too much money, but still want a high quality wine. A big
advantage of this segment is that they tend to stick to one wine, and
(still) are easily influenced by marketing efforts.

9.5. Distribution
Château Margaux has to bypass the negociants in order to target
specific consumers for the third wine; Gosse du Margaux. Meaning that
Château Margaux has to contact importers or large distributors directly
to try and reach the desired end consumers at the right time and place.
In addition, these so-called ―places‖ are high-end or trendy restaurants
and specialized wine shops.

9.5.1. Distribution Strategy

9.5.1.1. Selective Distribution

This distribution method relies on fewer intermediaries, while still

maintaining a respectable amount, and is used primarily for goods that
are more specialized. In the U.S., imported wine has to go through a
three-step distribution scheme, which involves an importer and state
distributor before the wine reaches the wine store or restaurant.
Importers or large distributors are expecting to earn a 25% margin, wine
shops a 30% margin and restaurants a 60% margin. In addition, U.S.
State distributors expected a 28% margin.

After Château Margaux, selects the right importer. The state distributor
will allocate the wine in small amounts in both the restaurants and
specialized wine shops to create a scarcity climate, which will aid
Château Margaux to keep their luxury image. Château Margaux will
canvas the metropolitan cities where they are going find the best venues
to sell their wines to. The Sommeliers will be critical here by featuring
Gosse du Margaux on lists and endorsing it to guests. Apart of that,
Château Margaux will also be selling a very exclusive amount of their
third wine on their website.

This is due to the increase of online wine purchases. This way Château
Margaux keeps on track with the current hype of e shopping and
satisfies many customers by providing a small amount of their third wine
online.

Château Margaux usually sells their wine in barrels and after bottling, is
not allowed, when the wine is in advance about the major vintage. Then
primeur distribution is used by most of the Château and wine producers
because they only sell between 5% and 10% of their wine in after
bottling.

10. Budget
Château Margaux had decided that the third wine would be 20% of the
total production. So the first and second wine makes up for the rest of
the production, which is 80%. The amount of cases and bottles of the
third wine: Gosse du Margaux is calculated as follow:

Wine 1 + Wine 2 = 80% 30.000 / 80% x 20% = Cases Cases x Bottles in

1 Case x Price = Revenue 2014

14.000 + 16.000 = 30.000 30.000 / 0,8 x 0,2 = 7.500 Cases 7.500 x 12 =

90.000 X 99 = $8.910.000, -

10.1. Profit & Loss Account

Third wine –

Gosse du Margaux

2014 2015 2016

End 31st of December End 31st of December End 31st of December

Revenue $8.910.000,00 $12.485.302,50 $14.283.901,72

Cost of Sales $270.000,00 $270.000,00 $270.000,00

Gross Profit $8.640.000,00 $12.215.302,50 $14.013.901,72

Operating Expenses

Distribution $500.000,00 $500.000,00 $500.000,00

Promotion $1.000.000,00 $1.500.000,00 $2.000.000,00

Wages $2.520.000,00 $2.730.000,00 $2.940.000,00

Total Expenses $4.020.000,00 $4.730.000,00 $5.440.000,00

Operating Gross Profit $4.620.000,00 $7.485.302,50 $8.573.901,72

Tax Payable $1.044.697,50 $2.111.400,78 $3.699.114,24

Retained Profit $3.575.302,50 $5.373.901,72 $4.874.787,48

10.1.1. Fiscal Year 2014

In the first fiscal year 2014 ―Château Margaux‘s: Gosse du Margaux‖ has
managed to project a profit of $3.575.302, 50. It is a huge profit;
however, this much would be expected of Château Margaux. The cost of
sales consists mainly out of the 90.000 bottles and the label prints. The
cost of sales has a total of $270.000, -.

There are also the distribution costs, which are $500.000, - and it
consists mainly out of safely shipping the goods from France to the U.S.
Apart of the distribution costs there is also the promotion costs. The
promotion costs are related to the tasting ritual, which was especially
organized for the third wine. The promotion costs include the invitations,
transportation of all the invited people, furniture, entertainment, food etc.
The promotion costs are $1.000.000, -. In addition, there is another cost
factor, which is very important and keeps the 70 employees of Château
Margaux motivated. These important costs are the wages. The wages in
the first year counts for 12 months. Moreover, the wages are calculated
as following: (3000 x 12) x 70 = $ 2.520.000, -. And last, there are the
U.S. taxes, which are usually 11,725%. So, the taxes are calculated as
following: 8.658.000 x 0, 11725 = $1.044.697, 50.

10.1.2. Fiscal Year 2015

In the second fiscal year 2015 ―Château Margaux‘s: Gosse du Margaux‖

has managed to project a profit of $5.373.901,72 once again. It is once
again a huge profit, however, this time the profit almost doubled looking
at the previous year. The cost of sales did not change because the
production was the same as the previous year. The cost of sales in 2015
is $270.000, -. There is also the distribution cost, which will be once
again $500.000, -. The promotion costs had an increase of $500.000, -
meaning that the current costs totals $1.500.000, -. Moreover, Château
Margaux increased the wages of their employees in order to motivate
them to perform even better than the previous year. The wages are
calculated as following: (3250 x 12) x 70 = $2.730.000, 00 -. And as last,
the U.S. taxes are calculated as following: (12.485.302, 50 - 3.575.302,
50) x 0,11725 = $5.373.901,72.

10.1.3. Fiscal Year 2016

In the third fiscal year 2016 ―Château Margaux‘s: Gosse du Margaux‖

has managed to project a profit again of $4.874.787,48. Again, Château
Margaux made a good profit; however, this time the profit did not double
looking at the previous year. The cost of sales is still $270.000, -. There
is also the distribution cost, which once again $500.000, -. The
promotion costs had once again an increase of $500.000, - meaning that
the current costs totals $2.000.000, -. In addition, Château Margaux
increased the wages of their employees to celebrate the projected profit.
So, the wages are calculated as following: (3500 x 12) x 70 =
$2.940.000, 00 -. And once again, the U.S. taxes are calculated as
following: (14.283.901, 72 - 5.373.901,72) x 0,11725 = $3.699.114,24.

11. Recommendations

We have found that it would be very profitable to introduce the third wine
in the United States. We have found five targets that we recommend to
the company, two of the original segments of the first two wines and tree
new segment groups that we have researched (the enthusiast, the
image seekers, new image seekers, new enthusiasts and new
traditionalists).

There are several strategies in order to make this introduction of the

third wine in the United States. There is a pricing strategy, distribution
strategy, promotion strategies and a product strategy. Furthermore, we
have set up a corporate strategy, which consist out of a corporate-level,
a business-level and a functional-level strategy. When used these
strategies in the right way you could make a turnover of approximately
13, 8 million dollar for 3 years.

With this third wine Château Margaux has a chance to grow in the
American wine market and increase their market share. Because, there
is a growing demand for a new high quality wine but also for a more
affordable Château Margaux wine, but to differentiate themselves to the
competitors to be slightly more expensive. It is essential for the success
of Chateau Margaux, that the third wine will be available again to the
loyal customers. That means that it is our responsibility to make the wine
available to not only the traditional market but to new segments as well.

To conclude, this third wine of ―Château Margaux‘s: Gosse du Margaux‖

should be introduced in the United States because this could be the way
to reach Château Margaux‘s core customers in the United States. With a
positive effect on the brand image, because their still more expensive
than the competitors, while they still produce a high quality wines.
Moreover, selective distribution maintains the exclusivity of the brand.

12. Source list

Index. (n.d.). Retrieved from Organisation Internationale de la Vigne et
du Vin: http://www.oiv.int/oiv/cms/index

Mike Veseth, P. e. (2008, April 5). What are wine enthusiasts looking
for? Retrieved from The Wine Economist:
http://wineeconomist.com/2008/04/05/what-are-wine-enthusiasts-
looking-for/

http://wiki.answers.com/Q/Best_example_of_five_product_level?#slide2

http://www.wineinstitute.org/resources/pressroom/04082013

http://www.slideshare.net/ludatalalaeva/Château-Margaux-case-study

http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates

http://www.marketing91.com/pricing/

http://www.news4jax.com/news/younger-generation-of-wine-drinkers/-
/475880/20706970/-/lduvbo/-/index.html

http://www.chateau-margaux.com/en/savoir-faire/travail-vigne/palissage

13. Appendixes

13.1. Appendix 1

Chateau Margaux Latour Lafite Rotschild Haut-Brion Mouton Rotschild

Appellation Margaux Pauillac Pauillac Pessac-Leognan Pauillac

Wine Vineyard 80 Hectares 80 Hectares 103 Hectares 49 Hectares 80

Hectares

Grape Varietals 75%Cabernet S.,

20% Merlot,

3% Cabernet F.

2% Petit Verdot 75% Cabernet,

20% Merlot

4% Cabernet f, 1% Petit V. 70% Cabernet S.

25% Merlot

3%Cabernet F 2% Petit V. 50% Cabernet

40% Merlot

9% CabernetF.

1% Petit Verdot 83% Cabernet S.

14% Merlot, 3% Cabernet F

Wine Production (Average Range of Cases) First Wine: 12-14,000

Second Wine: 14-16,000 First Wine: 15-16,000

Second Wine: 18,000

Third Wine: 6-9,000 First Wine:

18-20,000

Second Wine: 15-20,000 First Wine: 10-20,000

Second Wine: 5-7,000 First Wine: 16-18,000

Second Wine: 5-6,000

Price Per Bottle 1st $1280

2nd $185 1st $1745

2nd $280

3rd $97 1st $1530

2nd $ 335 1st $1200

2nd $160 1st $1100

2nd $195

Average Parker score 96 95 96 95 94,5

Competitive Advantage One of the four wines to achieve the Premier

Cru Classe. Latour is the only one with a third wine already in its
assortment. Lafite Rotchild has the largest vineyard that covers 103
Hectares. Haut-Brion is the only wine with the Pessac-Leognan
appellation which still remains the benchmark of today and is rated:
Premier cru Classe. Each year an artist designs a label for the Mouton
Rotschild company.

13.2. Appendix 2

13.2.1. Peer assesment

Karim Bidri Grade Short Evaluation

Brent Heiner 7,5 Brent was very organized and always tries to help
when he can. He is a great team worker and provided sufficient work.

Jamiro Bouva 7,5 Jamiro is very creative and did a good job on the
internal analysis calculations.

Zaheb Geujar 7,5 Zaheb always tries to assist the team members. His
part was finished before the deadline and the work was clear. The
budget was explained very well.

Mohamed el Ghouch 7,5 Mohamed is a very enthusiastic member of the

team. He always thinks about new ideas and is very focused on his own
tasks.

Kyran Broeke 7,5 Kyran is an organized member of the team and did a
great job in putting the report together. He is a good planner.

Personal Evaluation: Karim Bidri

Since the last case, the group had made a lot more agreements
regarding deadlines and tasks. I really liked the way this case was
handled by us and we were very professional in the whole process. This
case was more enjoyable while reading it and this gave me more
incentives in the process of making the report. The group worked
together like a real team and I hope this will lead us to a good grade.

Brent Heiner Grade Short Evaluation

Karim Bidri 8 Karim worked hard on the plan and cooperated well with
the whole group.

Jamiro Bouva 8 Jamiro did a great job on the external analysis. His
calculations were spot on.
Zaheb Geujar 8 Zaheb did an excellent job. Again the budget was clear
and explained very well.

Mohamed el Ghouch 8 Mohamed was enthusiastic about the project and

worked well with the tea .

Kyran Broeke 8 Kyran did a good job on the plan and really brought the
group together during the process.

Personal Evaluation: Brent Heiner

I liked this case more than the last one. I learned a lot more of the
characteristics of the wine industry. I had difficulties with some of the
parts I had to make, but I hope it is sufficient enough for a good grade.
The group worked well together and the group discussions helped us
make the plan coherent.

Zaheb Geujar Grade Short Evaluation

Karim Bidri 8,5 Karim did a very good job on the assignment, which he
received. He finished everything at the day of the deadline, which he
received from us.

Jamiro Bouva 8,5 Jamiro has put a lot of effort within the marketing plan.
He was a very active member of the team and it was very easy to
communicate with each other.

Brent Heiner 8,5 Brent is a very organized worker, which enables him to
work swiftly, precise and effectively. And a part of that, Brent is also a
very good team worker.

Mohamed el Ghouch 8,5 Mohamed is a great team worker. It is very

easy to contact him and ask for his opinion on certain topics related to
the case. In addition, he is always very thorough, with his opinions.

Kyran Broeke 8,5 Kyran has great analytical abilities. He has shown a
great amount of effort and responsibility during the complete marketing
plan.

Personal Evaluation: Zaheb Geujar

I have learned a lot during the Chateau Margaux case. It was a very
interesting case. I did not know a lot about wines because I am not a
drinker. Nevertheless, I have learned about the different types of luxury
wines. How the pricing of wine is conducted (Parker score). How the unit
is measured (cases). And because of this case I have increased my
knowledge about wine and am able to talk about wine with other
individuals. Once again, I was able to improve myself due to the
previous marketing plans. And it was a great practical and theoretical
experience, and I enjoyed myself.

Mohamed el Ghouch Grade Short Evaluation

Karim Bidri 8 He is a good team worker, always tries to keep the peace
in the group. Likes to work organized, is disciplined and can work very
good on his own.

Jamiro Bouva 8 Works very efficient is always present and active during
meetings. Wants clarity about everything before working, so does not
make a lot of mistakes and works fast.

Zaheb Geujar 8 Is always enthusiastic, does not mind to take make

more work on. Furthermore, is supportive to others and is always
available to answer your questions.

Brent Heiner 8 Worked hard, always made himself available, even if he

had a lot of work of himself. Always wants certainty before he starts
working and he does not bounce back to ask questions.

Kyran Broeke 8 Did a lot of work, seemed certain about his work and
always gives advice and feedback to others. Also has no problem
handling feedback directed to him.

Personal evaluation: Mohamed el Ghouch

I found the case more clear than the previous case, which looked a bit
chaotic. The group and I tried to consider all the feedback for this case.
Everyone worked hard and helped each other, when they were done. I
feel we did a better job on this marketing plan than on the previous one,
because we now know even clearer where the emphasis lies and what is
less important at the marketing plan. To conclude, we worked very
efficient and effective and that is why I think we did a better job than the
previous weeks.

Jamiro Bouva Grade Short Evaluation

Brent Heiner 7,5 Very organized worker and always finished early with
his tasks. I am very positive about his results regarding this project.

Karim Bidri 7,5 Always tries to help, resulting in a better overall grade for
the group. His supportiveness helped members of our group to finish
their work. His own work was also good.

Zaheb Geujar 7,5 Zaheb always tries to assist the team members. His
part was finished before the deadline and the work was clear. The
budget was explained very well.

Mohamed el Ghouch 7,5 Hard worker who plans what he wants to

accomplish in the future. I think his tasks were sufficiently fulfilled.

Kyran Broeke 7,5 Kyran always tries to motivate the group and explains
what each person has to do when it is not entirely clear. His own pieces
throughout this project were good.

Personal Evaluation: Jamiro Bouva

Personally, I have learned that in these types of projects it is extremely

important that during the process, you and your team communicate
because the plans that are made in this project have to be coherent and
connect with each other.

Kyran Broeke Grade Short Evaluation

Brent Heiner 8 Always tries to motivate the group and explains what
each person has to do when it is not entirely clear. His own pieces
throughout this project were good.

Karim Bidri 8 Always tries to help, resulting in a better overall grade for
the group. His supportiveness helped members of our group to finish
their work. His own work was also good.

Zaheb Geujar 8 Very organized worker and always finished early with
his tasks. I am very positive about his results regarding this project.

Mohamed el Ghouch 8 Mohammed formed the objectives well and was

always present during the meetings. He also worked well with the
deadlines set.

Jamiro Bouva 8 When assigned a task, he does not complain and does
the work. I think his tasks were sufficiently fulfilled.
Personal Evaluation: Kyran Broeke

I think our group did a better job on the marketing plan compared with
last time. We tried to use all the advice and feedback we got at the
previous marketing plan. Over all we did a good job, the ones who
finished earlier helped the other ones, especially the marketing mix and
the budget took a lot of time, but once again, I think we have made a
great marketing plan.

13.3. Appendix 3

13.3.1. Group cooperation report

Dividing tasks and having good communication within your group is

essential when it comes to group assignments. This is nothing different
with this marketing plan. Therefore, agreements had been made in order
to be as effective and efficient in the creation of the marketing plan.
These agreements came in the form of a contract which was signed by
all individual members of the team and the lecturer.

One of the key elements of this group assignment was the way we
communicated with each other during the meetings. During the week,
appointments were made where the group would go through the
progress and we would help each other in order to be as successful as
our group can be. Below you will find the details about these meetings.

1 Our group had set up a contract. That contract stated that there would
have to be at least two formal meetings in one week where we would
meet in person. The group had two weeks to prepare the marketing
plan, however, in view of the fact that the deadline had been moved one
week our group had the chance to meet two times more than we had
originally planned.

Dates (meetings)

21 October 2013: 25 minutes

27 October: 60 minutes

11 November 2013: 60 minutes

22 November 2013: 30 minutes

23 November 2013: 30 minutes

24 November: 60 minutes

2 Presence / Absence

A:

•Karim Bidri, Kyran Broeke, Mohamed el Ghouch, Zaheb Geujar, Jamiro

Bouva, Brent Heijner.

3 Purpose of meetings

21 October 2013: conversation about task allocation.

27 October: Discussion on progress and clarity on subjects

28 October - 9 November: Exam week preparation, no work on project

pbc.

11 November 2013: Final discussion on progress, problems found and

final feedback.

22 November 2013: Hand in all work.

23 November 2013: Report is done and send to all members to check

and give feedback.

24 November: Feedback applied and final report is done and ready to

hand in.

4 Task allocation

The contract we had constructed stated that every individual had to take
the main responsibility of two points from the marketing guidelines and
this would switch with every case which will have a positive effect on the
learning proses since every individual takes on a different task each
case.