Preserve the luxury or extend the brand Case Study

Preserve the luxury or extend the brand - Case Study Example ?s fellow grand cru classà © owners complained about the nà ©gociants’ margins whom Gaspard accepted because they have a ready buyer even in their bad years. What Gaspard missed is that their brand had been classified by de Vallois had in 1855 as a Premier Grand Cru Classà © (First Growth) making their brand already saleable at a commanding price even without a nà ©gociant who would readily buy it. Sticking to their two brands, this may not be enough to secure the chateau in the long run because new wine makers with cheaper wine are already coming in the market. These new competitors’ offer an alternative to their products that could shrink their market share and pose a real threat to Gaspard’s business. Gaspard must adapt to the new realities in the wine industry. Extending the brand has many advantages. First, Gaspard can widen their market share to include the younger market who could not afford their high end wines. This market is already a captured market and there is a greater probability that they would come to them when they are ready to purchase high end wines. Second, Gaspard has the advantage of being classified by de Vallois had in 1855 as a Premier Grand Cru Classà © which they could use in marketing their branded wines. Claire was right, they could either buy grapes or land and mention that its either ‘Bordeaux origin’ or that the de Vallois team is in charge of making it in case they would buy cheaper lands abroad to grow grapes. This option will not harm the brand of Gaspard’s premiere wine because they will not be mixed up. In fact, the de Vallois brand can complement the upcoming branded wine by suggesting quality and class by association. In addition, these branded wines can easily adapt to the changing tastes of the younger market and make the most profit by catering to what they want. When this younger market can already afford the high end wines, they can also graduate to the Vallois team’s high end wine. True there is