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Château Pontet-Canet Case Solution & Answer

 Château Pontet-Canet  Case Solution 

Strategical and economical aspects

Château Pontet-Canet engages in selling quality wine products to its customers i.e. les hauts de Pontet-Canet and Chateau Potent-Canet. Additionally, the company uses 1000 cases of each wine every day for the promotional purposes,and it contribute-sup to 100000 dollars to its own joint marketing & advertising efforts to increase its sales, fight competition and enhancement of its goodwill. The company was recognized as delivering the quality of an average third growth and the products were trading at premium over its peers in the 2nd edition of Bordeaux and Its Wines, was valued at 75000 francs per tun. Furthermore, the company allocated 25000 out of 40000 cases to first wine which was rated 90 points by Wine Spectator and 15000 wines to second class which was rated 86 points by Wine Spectator, hence showing that the quality of the products offered to customers was extraordinary.

Furthermore, the company has accelerated its efforts on growing the finest grapes and to attract a number of people through harvesting grapes of excellent quality. The competitive strategy of Château Pontet-Canet is to maintain its standard of consistency and quality in harvesting and producing rich grapes, which are used worldwide in the wine manufacturing. In the wake of the robust market competition in the global wine industry; it has decided to maintain its competitive advantage, thereby following the practices of becoming a notable wine manufacturing company.

In addition to this, Aside from playing the significant part in the culture of the country; the spirits and wine industry is fundamental to the French economy. The huge number of employment opportunities are linked to the sales and production of spirits and wines, which in turn enables the country to benefit from the industry’s success. The company provides the employment opportunities, which in turn contributes to the economic prosperity and growth of France. Wine being a non-essential product, means that the income level of consumers influences the sales and market growth,but the wine sales and consumption are not directly related to the GDP of the country or increase in the nation’s income.

Analysis of the current situation (including the protagonists and key players) of Chateau with central problem description

The key players and protagonists include:Alfred Tesseron, who was the son as well as the director of the owner of Chateau Pontet-Canet. Also, Tesseron and his manager: Jean-Michel Comme, were both responsible for the marketing and promotion of wine and building the reputation of the brand, nationally as well as internationally.

Château Pontet-Canet is one of the highly valued and recognized wineries in the Pauillac appellation of the Bordeaux wine region of France. It is also the name of the red wine produced by this property. Despite delivering the high quality and its rank as a 5th growth; the price of products offered by company was declining. The revenues was declining and the international competition was mounting despite the fact that the Chateau Pontet-Canet was delivering the higher quality as compared to equally classed peers. Despite gaining the market reputation and getting appraisal for its recent quality efforts;Chateau had received high criticism from the leading critic of the world for being old-fashioned. Tesseron is concerned about whether he should produce the right level of quality or should he follow the unconventional ideas of his young winemakers for the work in the vineyard. Consequently, he is wondering on how to secure the prosperity of Pontet-Canet in the new millennium. Furthermore, he must decide whether to modernize the style of Pontet-Canetto flourish or to stay traditional.

SWOT analysis (central problem and maybe plus a few other problems)

Strengths

The Château Pontet-Canethas polarizing reputation in the market place due to its fine and flavored wine as it is known for offering an enormously wide rangeof flavours and fruity taste.Additionally, strategic competitiveness is achieved by successfully formulating and implementing a value creating strategy. Roughly 8000 Chateau produced more than 650 million wine bottles from approximately 125000 hectares. In the list that was made by 61 producers, Château was ranked as fifth. With 85 hectors under wine, it is considered one of the large classed growths.

Weaknesses

One of the considerable weakness of the company is that it is highly vulnerable to the market competitionfrom Chile, Australia, South Africa, New Zealand, the US and Argentina. The concentration of Château Pontet-Canet has steadilydeclined with the influx of many market competitors, commanding more significant shareof total revenue. Also, the company is criticised continuously for producing old-fashioned wine, which has resulted in the loss of customers and having financial stability. Furthermore, the company is still producing wine conventionally, which in turn allows the customers to switch to firms with organic or bio-dynamic production.

Opportunities

            The company could take full advantageof the opportunities of introducing unique and iconic brand to more legal-age consumers around the world, and it should offer a wide range of products for those who prefer non-alcohol beverages, keeping in mind that the customers are getting aware of the health effects of wine. By offering no-and-low-alcohol wine; the company should continue to cultivate new opportunities in many of their markets throughaddressing the growing consumer trends of moderation and health and wellness. The company could also shift the production to biodynamic farming, based on itsnumerous benefits. It can produce an innovative packaging technology, which would provide a better consumer experience and help in increasing  the life of draught wine by more than fourtimes.

Threats

The new world wine are offering high quality products at much affordable rates to their customers. Also, the company is threatened by an emergence of the wine magazines and critics. In the wake of the increased comprehensiveness of coverage of wines in newsletter and magazines, supply of high quality wines, improved practices and technology in wineries;heightened the customer demand for standardized products and high quality products. Furthermore, the changes in industry trends, change in customer preferences, expectations and attitude have the potential to adversely affect the growth and profit levels ofChâteau Pontet-Canet.(H. Chládková, 2016)…………….

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