Chateau Margaux has a major process and a major system of manufacturing its wines. It has a set of wines that it leaves over and sells directly to other manufactures. Chateau Margaux has resolved to brand their excess wine that they sell in bulk to create a third wine brand. This paper will seek to formulate a marketing strategy for Chateau Margaux. This will involve the examination of the business environment and the industry. Through this, there will be the review of marketing strategy and communication components in order to define a marketing strategy to the company.In order to formulate a good marketing strategy, there is the need to conduct a critical review of the external environment (Henry 57). The external environment provide a fair understanding of circumstances of the terrain and show the way a firm must position its assets and competencies to attain the best results in the larger environment.The main political element identified in the case study is the fact that the European Union is offering subsidies on its wine production entities to promote wine production. This means that firm like Chateau Margaux has a better chance than other foreign brands in countries like Argentina, South Africa or New Zealand. The second aspect of political analysis is the fact that China is opening up for business. This gives Chateau Margaux the chance to enter China and sell at high prices to meet its profit targets. On the other hand, countries like Japan and the United States are building self-sufficiency in their production and meeting consumer needs and expectations.
Economic The credit crunch and global financial crisis affected most Western nations and was as a result of excessive spending on war between 2002 and 2008 and major credit injections in the economies (Cunliffe 45). This has created a major glut in the traditional markets and people might want to tilt towards cheaper wines and cheaper products. Also, there are many economies in the developing world that are growing and becoming more receptive of wines and other luxury products (Deshpande and Nurse 117). This include the nations in Asia, Africa and Latin America. Cunliffe (32) identifies that during the credit crunch, nations like China did not get affected directly by the credit crunch. This shows that there are new and emerging markets in these countries.