Chateau de Vallois

Jennifer Xing 1. The disadvantages of Chateau de Vallois pass into the sleazy wine market place 1) ledger entry a unseasoned product, and entering a y bring outhful market will regard large investiture upfront, for doing research, hiring late staff, getting tender land. 2) It is a risky investment since the overbold product market is actually unfamiliar with(predicate) to the alliance. The market, competitors, consumer preference, even the climate is unfamiliar for the company. ) The launch of cheap wine may hurt the tell on image of the sumptuousness line. Consumers may feel less esteemed if they suspect that the grapes atomic number 18 not attend to as well as before, because the youthful winery took time away from fetching care of the traditional land.Consumers may to a fault suspect that the wine is made surface of grapes that are used to make cheap wine, thus less willing to get the expensive wine from the company. The advantages ) Chateau de Vallois spa te veer away the financial risk of a bad year for grapes or economic science depression, by having a operation in California that is not as rubbery as the luxury smear 2) With the impertinently cheap provoker, Chateau de Vallois will be subject to capture a broader base of consumers. The family smear name will occupy a larger share of the wine industry. 3) The new cheap brand, if captures the young consumers, when the young prospect for good wines, they will be to a greater extent likely to look into Chateau de Vallois high toll wine. 2.Claire is forward looking, profit-driven, and expansionary, patch Francois is traditional, reserved, and risk-averse. Gaspard batch wait everybody happy by allowing Claire to set up a different brand in California, and leave the France winery to Francois. The different brand is essential not a break off of Chateau de Vallois, thus Francois wouldnt worry while Claire can still try out her business venture. 3. Three specific suggestions 1 ) Claire can bug out from scratch in California, produce existing winery or start with a joint venture.I suggest an acquirement of existing winery, so Claire will pay the expertise of the existing staff members who are familiar with the estate 2) Claire must program a new brand and logo separate from Chateau de Vallois, and be listed as a subsidiary, so the new brand enjoys the service of the prestigious brand name, but do not necessarily hurt the brand by entering the cheap market 3) Claire should bring in staff and experts from France to withdraw the California staff of bore control, procedures and company culture.It is after all a Chateau de Vallois brand, and what can distinguish this new brand from early(a) wines is its Chateau de Vallois family name. 4. I agree with de Rothschild that the winery could and should expand. I do not see the new expansion as a panic to the image of the older brand, especially if the new brand is well managed with ensured high quality that can even add to the brand prestige.Johnny Walker didnt even distract to change the name of the brand, but its swart labels are very successful, catering to a spectrum of consumers. There are many upsides of the expansion. The new brand can capture new consumer segment, the new consumers can transfer to high end wines, and the higher end buyers major power even want to drink the cheaper large-minded on a more workaday basis instead of putting the most expensive into wine cellar.