Case Analysis: ChateauOnline

Presented By: Group 1 (PGPSM08)

IIM Lucknow- Noida Campus
Consumers decision-making process for buying wine

1. Identification of need as
desirable
2. Information like wine types,
grape variety, recipe, taste,
blending, etc.
3. Search for the options available
4. Select the best-preferred option
5. Decision for loyalty (customer
retention-level of dissonance)
Online model helping
in consumer decision

• Large selection of wines

• Tasting notes and professional advice
• Guarantees and professionalism: Wine
evaluated by sommeliers
• Secure payment systems
• Timely delivery
• Money back guarantee of satisfaction
Potential segment for
ChateauOnline
Typical Internet Users
 Wine-consuming adults (35- to 55-year-old)
Rich- Higher than average income group
Planned customers (Occasional consumers for
weekend lunch, gift, or Christmas party
Unplanned customers (Regular consumers)
CHATEAU VALUE PROPOSITION TO CONSUMERS
Selection leverage from
a pool of 1000+
varieties of wines Chateau online got recognized as
Access to knowledge
an industry leader offering a good
Lower attractive from independent selection & competent advice
prices sommelier

 IBM selected Chateau for its e-

Bon vivant business advertising campaign
& e-quality
Range of voucher& Secure payment
corporate employees lifestyle systems & money  Forrester Research ranked it
scheme back guarantee among the Top 10 e-commerce
sites

Wine
Online tasting
 E-commerce Grand Trophy for
accessories, gift
shops
notes & photos the best French site
SELECTION AFTER SITES COMPARISION
Aesthetic Design

Optimised Product Listings

Featuring of customer reviews

Transparency of prices ( shipping ,packing)

High Quality Product Photos

Creation of Brand entity

Promotions & Discounts

• More than 5000 • Products categorised • Products categorised • Products categorized
wines portfolio
• Shady & dark • Bright & colourful • Bright & colourful
• Very simple & aesthetic aesthetic aesthetic
soothing website
• Gifts Cards • Gifts Cards • Free shipping items
• Value proposition
mentioned • No Customer reviews • No Customer reviews • Customer reviews

• Customer reviews • Tasting events • Recommendations • Sales & Discounts

• Latest news & • Difficult User • Sales & Discounts • Detailed & smooth
trends on company interface user experience
 • High Collection- At least three times as high as a typical
Sustainable supermarket
• Big market to serve- Whole EU and Switzerland
Advantages • Online Featuring and Discussion Platform
and • First Mover Advantage and Learning by Doing
Capabilities for • Centralized Business Model
ChateauOnline • Lean Operations, direct shipment from wineries,
Consistent standards, and quality
• Bypassing middlemen
• Localisation of websites to overcome cultural and
language barriers
Capabilities of ChateauOnline

Use of versatile team Struggling to attract

Variety building retail customers
Supply chain Conversion rate only 0.1
management – 0.7 %
Customer service and Beating new competitor
helpline start-ups like Rouge et
Blanc, MadAboutWine,
IT Infrastructure VinSurVins, etc.
Viable Market Position
 Yes, In order to get an economically adequate return on the capital
invested
 Problem of conversion rates and margins needs to be addressed
 ChateauOnline needs to demonstrate a definitive leadership position
in the European market
 ChateauOnline received praise and appraisal and more and more
producers want to sell their wines through their platform in
comparison to many new industries.
Implications of the physical products
 Consumer behaviour towards buying it through stores and wine
sellers will decrease, as buying through this platform gives consumers
options to know more about the product.
 Personal advice, delivery, privacy, etc features are not there with
physical products.
Economics for ChateauOnline partner
 Profitable Business
 Long-term strategic planning and execution