Chataux Margaux Business Case

Gosse du Margaux

A name which in English translates into Child of Margaux.

A wine that is created by Chateu 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 estates production
not used to make the first two.

Chteau 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 Chteau 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 Chteau Margaux. We
introduced a third bottle of wine, under the brand name of Chteau
Margaux, and this bottle will be called: Gosse du Margaux.

2. Executive summary

Chteau 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.

Chteau Margaux will be expanding its market with a third wine titled
Gosse du Margaux.

Chteau 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, Chteau Margaux first
needs to introduce the third wine to this market. With the new product
development, Chteau 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

Chteau 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 companys 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

Chteau 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 Chteau Margaux has used several occasions to uplift their
brands 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 Chteau 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.

Chteau 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. Ngociants 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 Chteau 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 Chteau Margaux thinks ahead of its time. The
competitive advantage Chteau Margaux possesses, started to make
shape in the 1980s when the general manager retired and Pontallier was
hired. The execution of certain practices that were not being applied yet
in the 1980s 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

Chteau 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

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

4.4.3. Price

Chteau 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

Chteau 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 Chteau 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

Chteau 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 Chteau 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 Chteau Margaux sells are popular amongst many wine-lovers. The
demand for Chteau Margauxs first wines is already strong but still
growing, not only local but also internationally. Chteau 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 Chteau 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 Chteau 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 Chteau Margaux is
that there is no capacity to increase production without damaging the
brand. If Chteau 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 Chteau 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

Chteau Margaux, as one of worlds 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 Chteau 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 ngociants (or
merchants/dealers) spared Chteau 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

Chteau 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, Chteau 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, Chteau Margaux should consider pricing their new wine(s)

lower, to have more consumers buy it. Since Chteau 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 (Chteau 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

Chteau 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, Ngociants 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 Chteau 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, Chteau Margaux will not have to worry about profits and
popularity. In the future, Chteau Margaux may want to get rid of this
image, but as long as profit keeps growing and Chteau Margaux keeps
its luxury status, there is no reason to change the image.

7. Corporate strategy

7.1. Corporate-level strategy

Chteau Margaux has been an exceptional winemaker since the 16th

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

7.2. Business-level strategy

Chteau 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 Chteau Margauxs third wine will sell in
higher volume.

Chteau 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 Chteau 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 Chteau 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, Chteau Margaux can achieve

marketing excellence. The core product is also known as a benefit and is
generally intangible in nature. The core product of Chteau Margauxs
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 Chteau Margaux,

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

Now Chteau Margaux is planning to expand the product line by including

a third wine named Gosse du Margaux. In addition, with Gosse du
Margaux, Chteau 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, Chteau 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 Chteau 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, Chteau Margaux could easily identify

the product positioning strategy. This is due to the third wine of Chteau
Margaux and the distribution to the United States of America. Moreover,
by looking at the product/market grid Chteau 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, Chteau Margaux will be entering a new market, which is the
United States of America. That is why Chteau Margaux chose for the
market development strategy.

There are three approaches for Chteau 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 Chteau 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 sourcesCalifornia, other U.S.
states and foreign countriesincreased 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 Chteau Margaux
is successful with their strategy then the company will see a rapid increase
in sales. Once Chteau Margauxs third wine; Gosse du Margauxs sales
begin to increase the company share of the market will increase. Once
they get to this point Chteau 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 Chteau

Margaux is setting high prices to show its luxury and/or prestige. Chteau
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 Chteau Margaux wine. The third wine;
Gosse du Margaux will be priced competitively, offering a good value
against the competition such as Chteau Latour.

9.3.1. Pricing Strategy

9.3.1.1. Mix of Premium Pricing & Psychological Pricing

Chteau Margaux uses a premium pricing strategy to establish a price

higher than their competitors, such as Chteau 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 Chteau Margaux.
Chteau Margaux also uses a psychological pricing strategy. Chteau
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, Chteau 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. Chteau 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 Chteau 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. Chteau 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 Chteau Margaux, the likelihood of people
buying the product will be very high. Therefore, Chteau 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.
Chteau 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 Chteau 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 (Chteau 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

Chteau Margaux has to bypass the negociants in order to target specific

consumers for the third wine; Gosse du Margaux. Meaning that Chteau
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 Chteau 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 Chteau
Margaux to keep their luxury image. Chteau 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, Chteau
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 Chteau
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.

Chteau 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 Chteau and wine producers
because they only sell between 5% and 10% of their wine in after bottling.

10. Budget

Chteau 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 Chteau Margauxs: 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 Chteau 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 Chteau 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 Chteau Margauxs: 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, Chteau 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 Chteau Margauxs: Gosse du Margaux has
managed to project a profit again of $4.874.787,48. Again, Chteau
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, Chteau 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 Chteau 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 Chteau 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 Chteau Margauxs: Gosse du Margaux

should be introduced in the United States because this could be the way
to reach Chteau Margauxs 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/Chteau-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.