...Colorado Height University Case study of Marketing Chateau Margaux Xuan Mai Le IBS400 Château Margaux had entered the Mentzelopoulos family in 1977 when Andre Mentzelopoulos, the owner of a French supermarket chain, bought it for about €12 million. It located in Bordeaux region, which produces the most prestigious wine in France. The Bordeaux wine community was initially shocked to see it “fall in the hands of a Greek.” However, they gained confidence in Mentzelopoulos as they saw the complete overhaul of the vineyards with better drainage and new plantings. Château Margaux was part of the French elite of wines known as first growths, five specific wines from the Bordeaux region. Wine critic Robert Parker had recently described Château Margaux as a “brilliantly consistent wine of stunning grace, richness and complexity.” It was often called the most seductive and elegant of all Bordeaux wines. Château Margaux officially classified in 1855 as a "first-growth" (one of only five in the Bordeaux region). A critic commented, “The Château Margaux 1953 is considered a superstar among wines. It just improves in power, elegance and charm with age. Andre's first vintage in 1978 was seen as one of the best Bordeaux wines of the year. Unfortunately, he died suddenly in 1980 before he could see the full transformation of the château. Corine is his daughter inherited the estate. She is 27 years old, high educated and work in the marketing but she does not know anything about wine industry...
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...Chateau Margaux Case Study International Business March 19th, 2012 “Who knows whether this ancient system will still be working in 20 years or so?” (Executive Manager of Chateau Margaux). This quote, spoken by an executive manager, very proficiently sums up what is happening to the Chateau brand. The Chateau brand has always prided themselves in their unique process for creating one of the world’s finest wines. However they refuse to change their ways because they are afraid it would damage “their soul” (Deighton 9). As the world markets expanded, other companies began changing formulas or changing how they produce their products n order to keep up with the demands for mass production across the globe. Chateau refused to do this because they wanted to keep their identity intact. They were not being affected because of their product but instead were affected due to their management. They refused to market their product or even sell directly to the customer. As other companies began running ad complains, Chateau did not even know who their target market was because they had no information and their suppliers had little information as well. Take the Coke vs. Pepsi war. Both of these companies have mass produced their product and have found the shortest, simplest, and cheapest way to produce their cola and ship it world wide. This does not mean that their product is better than any other cola, in fact there are some minor brewing companies that also make really good cola. Chateau...
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...posed “Is Mass Marketing dead?” Many marketers may would yes, but I would say not quite, but it is dying. As one should already know, with mass marketing, also know as interruption marketing, “the firm ignores segment differences and goes after the whole market with one offer. Unfortunately, the ability to create a large potential market that leads to the lowest costs, lower prices, or higher margins is no longer a necessity. In this day and age the change from mass marketing to micromarketing is as much an opportunity as it is a need. During the time when it was harder to gather personal information about consumers, mass marketing was the best route to go. You put your campaign out to the world and if you’re lucky, a large percentage of consumers will be interested in what you’re company is selling. If the reaction was positive, you knew what worked. If the response was negative, you found out what changes were needed and companies went back and tried again. In this new era of marketing, there is a new breed of consumers who are obsessed with self gratification and want a more personalized experience which means that mass marketing is slowly being pushed out of sight. If consumers continue to get these personalized touches, eventually prospective customers will demand it more and more. The largest of companies still don’t agree with this and think mass marketing is the way to go. The advancements in technology are also starting to lead to the demise of mass marketing. Consumers...
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... Good Communication = Good Business * Helps an organisation to thrive * Cost effective | Poor Communications = Bad Business * Can cost market share & jobs * Can damage reputation & image | GENERAL THEORIES OF COMMUNICATION One Step Flow Theory This theory stated that mass communication media channels, communicate directly to the mass audience without the message being filtered by opinion leaders. The best known model of this theory is the hypodermic needle model. Dating from the 1920s, this theory was the first attempt to explain how mass audiences might react to mass media. It suggests that the information from a text passes into the mass consciousness of the audience unmediated. This theory suggests that our behaviour and thinking might be easily changed by media makers. It assumes that the audience is passive. Two Step Flow Theory The Hypodermic Model quickly proved too clumsy for media researchers seeking to explain the relationship between audience and text more precisely. As mass media became an essential part of life in societies around the world, a more sophisticated explanation was sought. Paul Lazerfield et al suggested that the information from a text does not flow directly into the minds of its audience unmediated but is...
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...Is Mass Marketing Dead? TABLE OF CONTENT NO 1.0: 2.0 3.0: 4.0: References DETAIL Introduction Is Mass Marketing still a viable way to build a profitable brand? The reasons for the fall of traditional Mass Marketing Conclusions PAGE 3-4 5-7 7 – 13 14 - 16 17 1 1.0: INTRODUCTION Marketing is about identifying and meeting human and social needs, (Kotler, 2002) or even in simpler words, that is done to attract and retain customer at a profit. Thus, we see marketing management as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering and communicating superior customer value (Kotler, 2012). This simple definition tells that marketing is basically customer oriented in nature. However, looking back at the history of marketing indicates that the idea of marketing was different and it took many different shapes at different ages. The four major marketing management philosophies i.e production concept, product concept, selling concept and marketing concept are in fact, related to this evolutionary nature of marketing. This conceptual development of marketing implies that initially marketing was associated with the mass production and efficient delivery of the products (production concept) and now it is viewed as a customer oriented essential business activity (marketing concept). An inquisitive mind may ask a simple question: before even production concept what was the form of marketing? If the job of marketing...
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...Marketing Myopia, is it Relevant Today? Marketing Myopia by Theodor Levitt was published in 1960. In the article he discusses that every industry is a growth industry and that growth does not decline or stop because the market is saturated, it does so because of a failure of management. According to the article, an industry is a customer-satisfying process, not a goods-producing process. Businesses will be more successful in the end if they concentrate on meeting consumers’ needs rather than on selling products. To illustrate his point Levitt uses several examples (Digital Marketing, 2010) His first example is of the decline of growth in the railroad industry. Railroads did not decline because needs were filled by cars, trucks, planes or telephones. They declined because they failed to meet their customers’ needs. Railroad executives assumed themselves to be in the railroad business and not in the transportation business. They declined not because of cars, trucks, airplanes, and even telephones, but because of their own myopia (Levitt, 1960). The next example that Levitt uses is that of Hollywood. Hollywood barely escaped being totally wiped out by television. All of the established film companies went through drastic reorganization or disappeared. Similar to the railroads Hollywood forgot that they were in the entertainment business and operated as those they were just in the movie business. Instead of embracing television as an opportunity they viewed it as a threat...
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...Living in Dell Time 1. Identify and describe all the different types or forms of innovation exemplified in this article by explaining with data and facts from the case (10 points). First they are using a production innovation the just-in-time model. (It is a strategy for inventory management in which raw materials and components are delivered from the vendor or supplier immediately before they are needed in the manufacturing process.) Inventory has been a form of security but this kind of security is very expensive because computer parts are fast moving goods, and if your stock is full of these goods you will lose a lot of money. Kevin Rollins the CEO of Dell said, “inventory is like fish, the longer you keep it the faster it deteriorates.” Eleven years ago Dell carried 20 to 25 day of inventory in their warehouses and today they don’t have a warehouse. But if it fails, its manufacturing operations will crash within a matter of hours. But they also said that if you have your stock full of components, always you will have a lot of the wrong stuff and none of the right stuff. Many companies are not sure if it´s good of running so lean in an uncertain world, because you never safe for terrorist attacks or natural disasters. Another innovation is when they miss a forecast and they see they are running out of 15-inch flat screens they make for example a one week special of 17-inch screens in that time they sell it cheaper and so they lead the customer what they should buy...
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...Harvard Business School 9-598-056 October 23, 1997 L'Oréal of Paris: Bringing "Class to Mass" with Plénitude L’Oréal was born in Clichy, France in 1907, the offspring of technological innovation. Nearly 90 years later, the spirit behind answering the needs of a Parisian hairdresser in search of more subtle and lasting hair color for his clientele, was at work in the Health and Beauty Aids aisles of K-Marts, Wal-Marts, drugstores, and grocery stores throughout the United States as L’Oréal sought to bring “class to mass” in the skincare market. C PA RI S From his office overlooking Fifth Avenue in New York City, Joseph Campinell, President of L’Oréal’s U.S. Retail Division explained L’Oréal’s strategy for the mass market: “We sell product in the department store and specialty store channels. The research and development we do in support of those brands like Lancôme and Biotherm can be leveraged into mass market outlets as well. We call this ‘trickle down and fire up.’ We trickle the technology down to the mass markets where the high volumes are and that fires up our next generation of products by funding the research and development. In the retail division we do what the company always does: drive sales with product technology. But, since the drugstores, mass merchants and grocery stores we sell through are “selfservice” types of outlets, we have to support that technology with strong advertising, merchandising and promotions. We have been very successful...
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...The Culture Industry at Work The culture industry is undeniably one that we are all part of and, therefore, influences us time and time again. Persuaded by the famous work of Marx and Weber, critical theorists Theodor Adorno and Max Horkheimer coined the culture industry in 1944 (During). This name was agreed upon after much debate, as they considered naming their work “mass culture” but decided it incorrectly assumed culture arises spontaneously from the people (de Peuter). The pair worked out of The Frankfurt School of Critical Theory where they studied the effects of culture in capitalist societies, summing up their concerns into an effective piece of literature entitled “The Culture Industry: Enlightenment as Mass Deception” (de Peuter). Although seen in a negative light by Adorno and Horkheimer, it is crucial to consider its positive aspects as well. The rise of the culture industry is seen as a positive event for media theorists such as Walter Benjamin because it provides the ability to reproduce art on a mass scale (Laughey 38). This paper will outline Adorno and Horkheimer’s pessimistic view of the culture industry, along with the theory’s limitations and its relevance in today’s society. More specifically, it will discuss three defining characteristics of the culture industry: the ability to mass-produce, the monopolistic market and technological advancements. Adorno and Horkheimer believe the culture industry is comparable to the entertainment industry with respect...
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...1. Stragetic Marketing In its strategic role, marketing focuses on business’s intentions in a market and the means and timing of realizing those intentions. The strategic role of marketing is quite different from marketing management, which deals with developing, implementing, and directing programs to achieve designated intentions 1.1 Concept of strategic marketing As shown above, the marketing function plays at different levels in the organization. At the corporate level, marketing inputs (competitive analysis, market dynamics, and environmental shifts) are essential for formulating a corporate strategic plan. Marketing represents the boundary between the marketplace and the company, and knowledge of current and emerging happenings in the marketplace are extremely important in any strategic planning exercises. At the other end of the scale, marketing management deals with the formulation and implementation of marketing programs to support the perspectives of strategic marketing, referring to marketing strategy of a product/market. This time, marketing strategy is developed at the business unit level. |Marketing’s Role in the Organization | |Organizational level |Role of Marketing |Formal Name | |Corporate |Provide customer and competitive...
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...for his clientele, was at work in the Health and Beauty Aids aisles of K-Marts, Wal-Marts, drugstores, and grocery stores throughout the United States as L’Oréal sought to bring “class to mass” in the skincare market. From his office overlooking Fifth Avenue in New York City, Joseph Campinell, President of L’Oréal’s U.S. Retail Division explained L’Oréal’s strategy for the mass market: “We sell product in the department store and specialty store channels. The research and development we do in support of those brands like Lancôme and Biotherm can be leveraged into mass market outlets as well. We call this ‘trickle down and fire up.’ We trickle the technology down to the mass markets where the high volumes are and that fires up our next generation of products by funding the research and development. In the retail division we do what the company always does: drive sales with product technology. But, since the drugstores, mass merchants and grocery stores we sell through are “self- service” types of outlets, we have to support that technology with strong advertising, merchandising and promotions. We have been very successful with this in hair colorings. Our Preference by L’Oréal brand, with the famous advertising tag-line “Because I’m worth it,” has become the market leader. I’m sure we will get there with the Plénitude skincare line as well, though we clearly have some things to work out there.” Carol Hamilton, Senior Vice President of Marketing for the L’Oréal Retail Division...
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...life, finding the right human service organization is essential. The object of this paper is to evaluate one human service agency’s mission and values, stakeholders influence on the agency, marketing and public relations of the agency, and value of diversity demonstrated within the agency. The agency chosen is The United Way of Central Massachusetts. The United Way of Central Massachusetts The United Way of Central Massachusetts made a commitment to improve the lives of people in the community (United Way of Central Mass, 2010). Their vision is to have “a world where all individuals and families achieve their human potential through education, income stability, and healthy lives” (United Way Worldwide, 2012). The mission of The United Way is “to improve lives by mobilizing the caring power of communities around the world to advance the common good” (United Way Worldwide, 2012). The United Way began back in 1887 by a Denver woman, a priest, two ministers, and a rabbi (United Way Worldwide, 2012). The organization was created “to serve as an agent to collect funds for local charities, as well as to coordinate relief services, counsel and refer clients to cooperating agencies, and make emergency assistance grants in cases which could not be referred” (United Way Worldwide, 2012). Still today, 125 years later, The United Way is focused on improving and making a difference in the lives of those in the community. There is a network of “nearly 1,800 community- based United Ways...
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...| Case Assignment I (GE & BMW) | Marketing Management | | | 10/10/2012 | | 1. Business to Business marketing refers to the transactions made between two businesses. A vital step in business-to-business marketing is to create and communicate relevant differentiation from competitors. Thomas Edison invented the light bulb and today the same company taken gigantic steps in creating power plants. With the change in time, the marketing has to also evolve and no longer is it just about marketing a product. The importance of business marketing today is to touch all aspects of a business, create a complete brand experience, from start to end. Companies want to build a strong brand because that can lead to success in terms of increased revenue and higher profits. Moreover, strong brands also help in gaining the competitive advantage. When one business buys a product or service from another business the main things put on the table are the competitive advantage in terms of quality, pricing and above all brand recognition. The stronger the brand, the lesser risk it is for a consumer because the brand is known and there is a level of trust in it. Additionally, a brand that adds intangible imagery to its marketing mix can build a sense of community and provide emotional benefits to its consumers. It is very essential for progress because it gives the brand, the value it needs and is especially true for companies who don’t necessarily have tangible products...
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...will get the greatest happiness for the greatest number of people. In this question, Sansa’s pros and cons are to be compared with the pros and cons of other employees of Iron Throne Industries (ITI). If HR lets Sansa to work as senior VP at ITI without her having an MBA, many other employees who have worked hard to get an MBA to apply to such positions might feel angry and distrust. Others might feel the credibility of their company has gone down. If she can falsify on resume, she could falsify other documents as well. On the other hand, if Sansa is let go for the reason of lying on the resume and not having an MBA, which was a requirement when she was promoted, the company would be losing an excellent employee who has shown that she is more than capable of her job. In this case, letting Sansa continue to work as a senior VP not only helps Sansa but also to all the employees of ITI as she has been an outstanding worker and would further increase revenue in the company. Which individuals’ rights cannot be violated, no matter what? First and foremost the rights of all employees and ITI cannot be violated. Although each employee should have an equal opportunity at the senior VP position based on their educational requirements set by the company and their work history, a decision has to be made such that the company’s well-being and the...
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...Background of Key Problem The success of Red Bull majorly lies behind their unique marketing strategy which is usually called guerilla marketing, buzz marketing or in simpler words, marketing based completely on Below-the-line activities, word of mouth, endorsements etc. This unconventional marketing has been applied in Pakistan also where instead of executing Above-the-line promotions (which usually work very well in Pakistan and communicate to a larger audience), they have stuck to their unusual styles of marketing and have up till now sustained their position. But whether or not these unconventional strategies can carry on being effective with competitors like Sting and Speed emerging and keeping in mind the behaviors of the Pakistani consumers, is yet to be answered. The difference of Red Bull customers outside Pakistan and Pakistani consumers is vast and hence those extreme sports, club partying do not entirely relate to them. This needs to be addressed any marketing activities should be planned keeping in mind the different nature of the Pakistani consumer who are usually more susceptible to what they see on television, print and radio. The emergence of competitors like Sting and Speed means that Red Bull can now face a problem if they do not start extensive marketing campaign through not just BTL but also ATL methods too, just like its competitors are currently doing. If Red Bull remains in myopia, its downfall may soon be inevitable at the hands of big brands like Sting...
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