Question 1: What are the main market entry barriers that Chateau Camargue faces in entering

the Indian wine market?

Answer: There are two main barriers are:

a. Indian tariff protection can go up to 260% when you factor in state level taxes and this is
unsustainable even to the biggest companies. This percentage is a dramatic increase
from the Indian basic import duties on wine of 100% which is within WTO limits.
b. The vast geographical size of India is daunting for investors. Chateau Camargue has to
put this into consideration and decide whether to concentrate on a particular region
before branching to other parts. Remember that each of these regions have different
trade policies and all must be adhered to.
There are relatively low barriers in selling wine in Indian market. The main marketing barriers
are as follows:

a. The reducing growth of the demand as well as in industries are the major barriers t enter
in the Indian market.
b. Since the companies like Sula, Dindori and Grover having good marketing share in the
industry, it will not make any difference or will not create any barriers from them over
costing inputs.
c. The key role is to find the right partners and kinks of the other Indian marketing who has
the knowledge of the marketing policies and legislations.
d. While the states like Bihar, Daman-Diu, Jharkhand and Uttaranchal either restricts or
prohibits the sale as well as import wine.
e. Being complicated in the trading between interstate and the higher regulations of the
international countries, there are low barriers to enter a wine making companies who
satisfies the requirement of licensing and approvals by the state and central
government.
f. The main barriers the Chateau Camargue will face is that in some part of the Indian
states like Gujrat, Manipur, Nagaland and Mizoram are strictly prohibited for the sale of
alcoholic beverages as well as import wine.

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 2 Question: In your opinion, what would be the best market entry strategy for Chateau
Camargue to overcome their financial difficulties? Explain your reasoning.

Answer: By my opinion the best form of market entry strategy for Chateau Camargue to
overcome their financial difficulties I would suggest the investing strategies.

a. Transfer related strategies includes: Licensing, Franchising, subcontracting and

Loosely coupled strategic alliances.
b. By obtaining all of the strategies you can accomplish at a low operating cost and can
achieve profit maximization.
c. This is the excellent form of market entry that involves a company conducting
business in a foreign market which is divided into two categories:
 Transfer related
 Foreign direct investment related
 Greenfield investment
 Merger or acquisition
d. Whereas FDI related strategies includes: opening a branch office, forming a joint
venture, greenfield investment and Merger or acquisition.

3 Question: Should Chateau Camargue consider a long-term foreign direct investment

strategy in India? Explain your reasoning.

Answer: Chateau Camargue should consider a long-term foreign direct investment

strategy in India because FDI is seen as a driver of growth for emerging economies.
Chateau Camargue investing in India which is developing country is profitable as the
company can obtain the raw materials for its production processes at low prices and due
to lenient regulations in India. India has a highest population in the world with the
fastest growth of middle class that can provide market for consuming wine. Also, the
consumption of wine in India is gradually growing because of millennials group who are
receptive to it because they buy wine which they never heard of, drink more wine

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 because of entertaining and because of socializing out. Chateau should definitely
consider foreign direct investment:

a. Wine has been gaining an increasing presence in India’s social culture, with
continuous growth in wine bars, wine shops and wine tourism.
b. The current evolution presents a promising consumer market for wine, as the
average wine consumer in India is typically a young professional crowd from the
urban areas who has an international orientation.
c. Even if the marketing demand is low it will not affect the wine industry, as the
demographic young generation ranging 20-35 age continuous to grow where if
recession will also not make any difference in expanding the sales of the wine
industry.
d. As India is growing faster in the world, where middle class generation considering
of young people are attracting more towards the wine.
e. The average wine consumer in India is typically a young urban professional who

has an international orientation.

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