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 is one for those minor breweries. They refused to keep up with the competition because they did not want to lose their “soul”. However with changing times they must in order to keep up. They wanted to make other brands, and mass produce. In order to make enough money to mass produce their good wine they would have to use cheaper products and not age the wine as long, which they were not