Chateau Margaux

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Evaluation Criteria:

• Customer satisfaction

• Brand Image

Evaluation of Alternatives:

• Status Quo: Merchants can help generate excitement around the wine consumers. Under the current system Chateau Margaux does not have to worry about distribution, insurance, delivery etc. And the merchants pay Chateau Margaux well in advance, so there is no uncertainty of payment.

• Chateau Margaux should take control of the distribution system from Merchants: It might decrease the distribution cost but in that case Chateau Margaux will have a huge work to do of its own distribution channel which will be more time consuming. Also the relation between the distributor and retailers are good. If Chateau Margaux take Control of distribution system, this whole chain will be affected and there might be some negative impact on the brand image of the company.

• Introduce a new wine which is less expensive: Price is generally an indication that the product is of a superior class. Introducing a new wine which is less expensive will affect the brand image and also a new wine might not accepted well by the consumers. So uncertainty over brand image and customer satisfaction will prevail.

• Develop the Marketing and Product capacity: Bordeaux winers generally have not engaged in marketing traditionally. The marketing a first growth might prove futile if it is a good product. Even if the winery decided to engage in marketing, there is not much they could do. Same situation is applicable for present situation also.

Recommendation:

Considering all the alternatives based on the criteria, it is recommended that Chateau Margaux should maintain the status quo and no new steps are required.