Revisiting Wine Marketing 101

Leo Burnett“If you don’t get noticed, you don’t have anything. You just have to be noticed, but the art is in getting noticed naturally, without screaming or without tricks.” … Leo Burnett

Chicken Little

Yes indeed, the sky may be falling. The Great Recession, which in the 6 months from September 2008 through March 2009 stripped in excess of $6.6 trillion from USA personal wealth, may be with us for awhile. The access to credit that drove US consumer spending behavior and the economy has largely evaporated. Although consumers have paid down debt at aiDepression Bread Lines coming soon to your neighborhood record pace, banks continue to reduce credit availability, expecting to retract an additional $1.5 trillion by lowering home equity loan access, consumer credit card limits and commercial lines of credit, restricting the ability of the US economy to recover recent spending patterns. Something lost in the swirl of marketing images from luxury Paneri Watchesconsumer brands such as Panerai Watches, Hasselblad, Hermes, Ferrari, Tom Ford, Christian Louboutin, Michael Kors, et alia, is that under the aura of glitz America has been on sale for quite sometime. Just like disco, to many consumers the idea of the luxury brand may be dead, at least for the foreseeable future. Value has coexisted with the concept of brand as long as brand has existed. It’s the yin and yang of the retail continuum. Walmart created explosive growth in the 1990’s with the concept of everyday low prices, and then created significant competition to chain grocers with the introduction of consumables in both Walmart and Sam’s Club stores. Costco has been in the game for awhile, and has become a major factor in wine sales. Target introduced the idea of designer products at value pricing, and now will match Walmart pricing toy for toy this Safeway Cut Case Wine Display w/Sale pricingChristmas. And then there’s Amazon. Amazon is no longer just your bookstore, but now a major online retailer across several categories of consumer goods and electronics. And, as soon as the compliance situation, delayed by the well documented situation at New Vine Logistics, can be sorted Amazon will be a major factor in wine sales. Trader Joe’s introduced the concept of healthful foods at value pricing back in the 1970’s. With the latest US Labor The Economic Elevator's going SouthDepartment statistics pegging the jobless rate at 9.8%, this is a dramatic understatement of the now real number that’s closer to 17% including people no longer actively looking for work and those now underemployed and working non-benefited minimum wage part-time jobs. It’s not surprising to see major retailers and grocers follow a strategy of value pricing. For anyone in this neck of the woods if you’ve been in Safeway recently the major merchandising theme is SAVE, and the yellow sale tags are inescapable. Lucky stores are following their philosophy of everyday low prices. And overriding this is a spirit of the new consumerism. It’s now cool to be frugal and save money.

The New Wine Consumer

San Francisco TrafficAs I worked my way to the Mission Street Garage traffic slowed to a crawl, in part due the rerouting of traffic away from Market Street. I was in the process of doing a NorCal broad market survey of grocery and independent package stores for a privately held family winery client, and it was time to break for lunch. Since my last two stops were in SoMa, I was headed to the food court in the Westfield Center, and to Charles Phan’s ‘Out the Door.’ Even though it was only 12:30 on an early October Friday, the joint was jumping. The food court was packed with shoppers, most holding multiple bags. The noise level sounded, well actually felt, like a low roar, creating a sense of excitement not present in the City’s shopping Out the Door at the Westfield Center, San franciscodistrict for several years. One of my early retail lessons at Disney’s Lake Buena Vista Village, was to look for the bags in shoppers hands as an indicator of a good or bad day, and this looked like a good day. All of this economic activity seemed to be driven by the aggressive mark-downs and clearances in the stores in the Center. Pricing motivated by the need to make room for holiday merchandise, and these pricing strategies seemed to be working. Consumers have been on the sidelines, even during the recent back to school shopping period in August. But sharp advertising and in store media seemed effective at getting shoppers to reopen their wallets. The efficacy of the various campaigns will be reflected in each stores daily flash reports. The tide may be turning, however slowly, as consumer sentiment seems to be Inflection Point Graphdriven by value, with the economic thermostat having obviously been reset. An economy that now seems more driven by consumer needs rather than by wants. And the need for value seems to be paramount as a new inflection point in consumer purchasing behavior has been reached. So, in an age of cash for clunkers, extended unemployment benefits and tight credit what can we do as wine marketers to meet the contemporary challenges of the market. Let’s take a quick revisit to the basics of consumer packaged goods marketing (I’ll try not to be too wonky) by first asking the following questions:

  • Who are the buyers?
  • How much will the buyers pay for my wine?
  • Where and how will the buyers purchase my wine?
  • How do I create buying situations?
  • Is the customer happy after purchasing my wine?

Marketing 101 Revisited

  • Product – the want satisfying offering of your winery (branding, packaging, product features)
  • Price – what you charge for your wines. Price is a measure of value. Price in the marketplace is a rough measure of how your consumers value your wines
  • Promotion – the communication of information between your winery (the seller) and the potential buyer in a defined channel (Place) that tends to influence attitudes and behavior
  • Place – making goods and services available in the right quantities and locations when your customers want them, resulting in the transfer of ownership from producer (your winery) to your customer/client, taking into account strategies and tactics applicable to any middlemen, brokers, marketing agents, wholesalers and retailers

Wine Business Monthly Top #0 US Wine CompaniesToday most wineries are micro marketers. Even wineries in the WBM Top 30 approach the market on a segmented basis. Micro marketing is the ‘performance of activities that seek to accomplish an organization’s (your winery) objectives (selling your wine on a timely basis) by anticipating customer or client needs (marketing research) and directing a flow of need satisfying goods (your wines) from producer (you) to customers/clients’ (via DTC, DTT, broad market).

It is important to understand that we are no longer in a wants period of aspirational or conspicuous consumption, but in period of meeting the specific identifiable needs oAbraham Maslowf your targeted audience. Without entering the maze of Abraham Mazlow’s ‘hierarchy of human needs,’ here are the basic definitions of wants and needs and demands:

  • Wants – desires for specific satisfiers of deeper needs; i.e., the particular choices (including types of products/specific brands) that consumers aspire to buy to satisfy perceived needs.
  • Needs – a state of felt or real depravation of some basic satisfaction (the difference between a consumers actual condition and their desired condition).
  • Demands – wants for specific products that are backed by an ability and willingness to pay for them.

Wine Consumers at Benziger WinerySo, as wine marketers it is important to understand that we don’t create needs. Needs preexist marketers and their brands. A marketers function is to influence wants. A good marketer takes the initiative in stimulating and facilitating commerce. A key part of this function is understanding the market and your consumer. So, how can one identify the best possible markets, and then influence consumer purchasing behavior? Engage your marketing research resources and ask:

  • Who are the people with identified wants?
  • Where are these people?
  • What’s their purchasing power?
  • What’s their buying behavior?

Having asked and answered the above questions, what degree of market exposure do you want, or more importantly can support with your production, allocations and resources, human and capital?

  • Intensive (ubiquitous distribution for large production, enterprise wine companies)
  • Selective (by channel for mid-sized winecos, or for products within an enterprise wineco where price dictates targeted distribution)
  • Exclusive (small- family winecos with limited channel distribution, or luxury brands model)

Having now identified your market and your desired level of targeted distribution, what sort of consumer behavior response do you want to engender – routinized response behavior or adoptive response behavior?

Routinized Response Behavior – the regular selection of a particular way of satisfying a need. This is typical of low involvement purchases, generics or purchases motivated by price or perception of price.

Adoptive Response Behavior – the demand for a specific product that meets, on a regular basis, the hierarchy of needs of a buyer, and the continued ability to purchase your wine(s). This is typical of high involvement purchases, usually of products (wines) within a consumer’s brand set.

Sale tags on all the winesAs a marketer, if you plan to sell your wines in a saturated market based only on price, in essence creating a commodity and not a brand, in what has to be by nature a rapid depletion exit strategy, then the idea of routinized response behavior is the way to go, and pricing and display allowances will be your primary marketing tactics. However, if you want to build a brand even in this challenging market, then engage in marketing tactics that create adoptive response behavior within your identified consumer set.

Wine Consumer Adoption Process

Awareness – comes to know your wine(s) through your brand awareness plan that may include category specific magazine reviews, scores, story placement, newspapers, blogs, forums, and social media.

Interest – the ease of finding information on your web site, forums, blogs and traditional wine press. Events like Twitter Taste Live, open that Bottle Night or Tweet-ups.

Evaluations – providing information and access to your wine. In addition to the traditional wine press new points of information such as Cellar Tracker, AbleGrape, and approximately 800 wine bloggers are a resource that you need to identify and utilize.

Trial – the chance to try before committing. Wine by the Glass, in-store sampling, winery tasting rooms, winemaker dinners.

Decision – to adopt or reject. A whole set of modifiers come into play, such as varietal, pricing, packaging, where and when available to purchase.

Confirmation – the reinforcement that the decision is good. This can be in the form of availability or rarity, appealing to cultural values (sustainable or biodynamic wines), based on acclaim, reviews or a wine blog, or on the affirmation from friends or family.

The Game

Twins beat Tigers in one game playoff 2009Without a thorough grounding in classic CPG marketing fundamentals and a clear understanding of wine brand marketing concerning human motivations in regards to purchasing behaviors, success in today’s highly competitive and product saturated marketplace is not likely for your winery. This somewhat academic take, a departure from my usual ‘how-to’ articles was written to encourage you, your winery’s marketing officer, to think about your current brand plan. Concerning your brand – what is it that you do and why do you do it? Is it working? What would you do differently? What are you doing to differentiate your wines? It’s not a time for indecision in your consumer facing wine business. Faced with declining sales in his collection line Michael Kors quickly introduced a consumer approachable ready to wear line and is thriving in a brutal retail market. Yes, times are tough, and consumer behavior has been reset, but commerce moves on. It is important to be in the game, so sharpen your pencils and fire up your synapses. Preparation and planning = performance.

Note: Copyright © 2009 Think Wine Marketing® All rights reserved.

Does your winery have an effective OND plan?

Dave Barry“Once again, we come to the Holiday Season, a deeply religious time that each of us observes, in his own way, by going to the mall of his choice.”
Dave Barry

The End of Innocence

Now that, according to Chairman Bernanke, we’re at the end of the recessionary crisis, don’t you feel like you’ve been a passenger on Ozzy Osbourne’s ‘Crazy Train,’ and at the end of the ride Axl Rose is welcoming you to the jungle. Well, if one’s to believe all the press, it has been a jungle out there. Consumer behavior has been difficult to predict, as trends in recenJulia Childt spending patterns have only now begun to make sense. Consumer credit card debt has been significantly reduced, and there’s been a concomitant raise in the rate of savings from less than 1% of income to more than 5% resulting in a noticeable drop in consumer spending. An example of the nationwide impact on dining-out is demonstrated in today’s Zagat Survey PR release ‘SF Bay Area 2009 Zagat Guide San FranciscoDiners Adjust Habits in Response to Slow Economy.’ Wine sales and wine values as a result have been flat in the latest rolling 52 weeks report. Questions still remain as to the nature of any long term shifts in behavior, and if or when there will be a return to what was viewed as normal. Some of the analysis, even by those who’s insights we’ve come to value, of the situation have been somewhat myopic. Several of the changes in wine sales and marketing that we are now experiencing are fundamental structural shifts that were both exacerbated and accelerated by the recent hard times. There has been for some time a move from traditional white table cloth dinning to a more casual dinning environment, even with the increased sophistication of American cuisine . Guest check averages grew faster than the rate of inflation as business diners supported restaurants in urban MSAs. On-premises experiences have evolved and will continue to do so. Business expense accounts have been reigned-in as T&E budgets are rationalized to revenues. While its Jacques PepinAlice Watersseems surprising that entertaining at home has increased, Faith Popcorn was talking about nesting for aging boomers a decade ago The effect that Chuck Williams, Julia Child, Jacques Pépin, Alice Waters, et alia had on the American domestic cook has now made home dining chic. The shift in sales channels for premium and artisan wines from on-sale to off-sale, while well documented, has been a shift that’s been occurring for some time. A change that in part has been driven by frequently changing (desktop publishing) and more focused wine lists, and a vibrant off sale market driven by groceries, chains, club stores and innovative independents.

Let’s Get it Started

August 18th Start of Crush at Schramsberg It’s the last week in September marking the 1/3 point of the ’09 Crush. Now that some if not most of the Pinot and many of the white varietals are in-house, the seasonal harvest temperatures are starting to climb towards triple digits bringing smiles to the faces of vintners and growers throughout wine country. Most every year it’s a time of optimism, especially after what’s this year been referred to as an optimal growing season. Everybody at the winery seems busy in the pursuit of a zen-like perfection. Crews hovering over sorting tables thaRobert Conard at the C Donatieloo Winery sorting Pinot Noirt are now commonplace as all hands are on deck insuring that only optimal fruit makes it into the wine that you’ll be drinking in one to two years. Even if the hours are long and days-off are rare, it’s a vibrant time with midnight picking schedules, large farmer’s breakfasts, and plenty of beer at the end of the day. The economic panic of the last year, and the resulting decline in sales have been temporarily forgotten as all the physical and emotional energy is willingly put into the winemaking process . The intense process that is winemaking, as evidenced by the game faces displayed by winemakers, from Santa Barbara to Yakima and all the way to the North Fork of Long island, from the middle of August to the middle of December each year continues unabated until every lot is barreled down. The enthusiasm created by the annual wine grape harvest and the esprit de corps generated has often served as the launching vehicle for the important last quarter sales period. A period known within the beverage distribution industry as OND for the months of October, November and December.

Pump it Up

Judith Owen & Harry ShearerA late start to the upcoming holiday selling season has been forecasted by a number of beverage industry analysts. That may be the case, and we’ll all know soon enough. But hopefully, as the chief marketing officer your winery programing and promotions calendar is in place and ready to go on Thursday, October 1st. A reasoned look at the situation would seem to dictate that now is the time to get off your wallet and put on your seasonal game face. Differing sales channels will require unique tools structured to the idiosynchrocies of each. It will take innovative pricing structures to maximize your sales effort in Q4 of 2009. Christian Miller of Full Glass Research has shared that a recent survey of on-premises wine sales by the Wine Opinions Panel, revealed points of price sensitivity for list above $60/bottle, and $16/glass. So, depending on your resources it’s time to create programing for targeted restaurants accounts with this fact in mind. In addition to doing line-up tastings each working day at targeted restaurants, stick around for the early diners and offer an amusChuck Williams at the Maysonnave House in Sonoma, CAe bouches of a 1 oz pour of your listed or featured wine. As Chuck Willams said at the Maysonnave House this past week in Sonoma, ‘make the customer your friend.’ Also, spread your efforts across differing channels, hotels, catering, urban hot spots, large independents, ethnic cusine, entree specific and targeted lighthouse accounts. For off-sale, your POP materials, flow shelf talkers and back card should be pre-packed within the case. Provide high resolution, grabbable images on your winery web site for sell sheets, review talkers, labels bottle shots and tasting notes, etc. This will help to maximize ad placements and possible Sonoma Market Wine Displaydisplay activity. Discounting will be aggressive this OND, but you don’t have to compete with the big boys, be innovative in your tiered pricing, display allowances and use of coupons, including co-branding, non wine merchandise discounting, MIRs and occasional IRCs. Remember a basic rule in merchandising, hangers on 4-6 bottles, not on all 12 in a case. Oh, and Saturdays are great for in store tastings and/or bottle signings. If you’re relying on your tasting room and your wine club as your only DTC options, please consider the many other options available, such as third party wine clubs. This is a specific area in which sub-channel diversity will be the norm, but that’s not the case as yet. Assume the role this OND as a bleeding edge DTC leader.

Winter Song

Happy HolidaysI’ve been researching a series of articles written about the apparent market softness in the wine industry, and it seems that most of the noise is centered around the volumetric end of the business. As a small or mid-sized winery looking at flat as up, you can be much more innovative in your distribution strategy, and much more agile in the execution of your holiday marketing tactics. OND is your Crush time, so this selling season you should heed Warren Zevon’s words ‘I’ll Sleep When I’m Dead.’ The big boys aren’t sleeping at this time of year. Wineries in your competitive frame likely aren’t sleeping either. Go out there and shake a lot of hands, the hands of old and new friends. You can rest in January, at least for a few days.

Note: Copyright © 2009 Think Wine Marketing® All rights reserved.

Yes We Can

Rosanne & Johnny Cash“The key to change… is to let go of fear” … Rosanne Cash

Change, Change, Change

Anyone who has lived through the last 3 years, has an awareness that in these transformative times fundamental social change has occurred. You were along for the ride whether you wanted to be or not. Oh, this isn’t the Woodstock Nation’s form of radical social change, or, even the Brown vs The Board ofBrown vs the Board of Education Education emotionally charged social change. In this current period symbols of change were not as visible. No long haired flower children in strange colorful clothes, no angry mobs, no Lester Maddox with his ax handle, and no burning Woodstock posterstreets. The agents of change fit-in as well as ‘The Man in the Grey Flannel Suit’ fit into his era. Most likely you woke up one day and saw that significant cultural change had occurred. Buried in the details of your daily existence, the greed and hubris of those that created the current economic conditions driving this period of change went largely unnoticed until the meltdown. The meltdown which hit as quickly and as surely as those planes hitting the TwinTowers on 9/11. And, as this was happening an evolution of just how it is we communicate concepts, ideas and beliefs rapidly evolved. Into the void stepped a political marketing machine whose brand plan was consideredChris Matthews News Sunday on MBC revolutionary, and was widely disregarded by most professional political pundits. It was an often repeated Sunday broadcast network news analysis that the candidate and his team using these new symbols and social media platforms had no idea what they were doing. And then came the Iowa Caucus. Without regard to your personal set of political beliefs, it seems to be obvious that you as a wine marketer should be studying the observable lessons of the Obama Presidential campaign marketing tactics and the campaign’s use of new media tools with the understanding that how we as wine MarCom managers now communicate and market brand has fundamentally changed.

A Short Case Study in Contemporary Brand Management

Barrack working the crowd on the Campaign TrailIn any brand marketing campaign, the essence and essential truths of the brand must be distilled into a viable message. The message must be replicated and repeated through the use of images, words and symbols. Through the message a visceral connection must be made between the brand and the targeted audience for success to be North Carolina Rally for Barrack Obamaaachieved. In an effort to achieve this success, through effective marketing research, the campaign was able to identify a target audience based on demographics and attitudinal predisposition. A significant portion of this identified audience had a presence on social media. The Obama campaign was an early adopter/implementer of social media platforms. MySpace was dominant in the social media space at the beginning of the campaign, and so an Obama fan page was created, and interested individuals rushed to join the club. As Facebook and then Twitter gained traction, accounts were created to engage voters, and as the Shepard Fairey's Barrack Obama 'Hope' posternumber of fans grew so did the channels for communication and a pool for fund raising was established. Individuals who contributed to the campaign were given an opt-in choice to receive important updates about the campaign and election. YouTube was also a major factor with numerous short videos featuring endorsements, narrative story lines and music like the Will.i. am. ‘Yes We Can’ video featuring the mantra of the ‘Change’ message for the campaign.Will.i.am, Yes We CanThe iconic Obama ‘HOPE’ poster was created by street artist Shepard Fairey, and became instantly recognized as the visual image of the campaign. Third party endorsements, utilizing the ideas of co-branding and borrowed interest, were achieved, with Oprah’s endorsement gaining worldwide press coverage for the Obama campaign. A masterful use of message, image, social media, endorsement and third party advocacy. There was significant push-back against this campaign, but the execution of an integrated brand management plan through the fidelity to the perceived authenticity of message, the engagement and involvement of the many, and a transparency of the process, insured the successful conclusion of stated goals. So, are you to going to mirror this model and move your brand(s) forward towards the adoption by your targeted audience resulting in purchase?

An Even Shorter Conclusion

writing a checkAs I stood in line at the local Safeway this morning the three customers ahead of me all paid by personal check, and I’m thinking ‘people still use checks?’ If you want to live on a cash basis, haven’t ATM cards been around all of our adult lives. This slow adoption of tools made available through technology, even in this technologically sophisticated area of the country, seems to be endemic in the marketing arena of the wine business. I’m not sure if this is ego, uncertainty, or fear of the unknown. But I am sure that those that are frozen by fear will likely not survive in these uncertain economic conditions, or have afrozen in fear chance of thriving in a turnaround. Given the vision allowed by the distance of time and with my apolitical marketing mind-set, I can see the clarity of vision of the Obama presidential campaign, and their effective use of all the current tools available to even wine marketers. Ones that are available for use without the necessity to build a war chest on the scale of a political campaign. Difficult times should light the fires of our creative marketing imaginations. At this time in history, we have to be thinking better, faster and cheaper. One of the key lessons to be learned is that ubiquity doesn’t trump authenticity. The basic idea that I’ve learned sometime in my marketing experience is that while political skills matter there are no magic bullets, or one size fits all solutions for today’s wine marketing challenges. But, identifying, targeting and engaging your consumer audience before, during and after the sale is essential, essential to conceiving and executing your winning wine marketing brand plan.

Note: Copyright © 2009 Think Wine Marketing® All rights reserved.

Video as an Effective Emotional Branding Medium

Schramsberg Blanc de Noirs“A brand that captures your mind gains behavior. A brand that captures your heart gains commitment.” … Scott Talgo, Brand Strategist

The challenges facing today’s wine brand marketer are daunting. In what brand communicator, Paul Wagner of Balzac Communications refers to as a saturated wine market, how do we communicate the passion to excel as evidenced by our vintner partners? How do we consistently maintain and elevate the real value of our brand(s) in today’s marketplaceSafeway wine set, everything is on sale? And, how do we create a community of passionate fans? Well, my observations tell me that the lessons that you memorized in marketing 101, and then actualized early in your careers as wine brand marketers – creating a positive consumer interaction, then consistently and credibly delivering an authentic brand message engendering trust and hopefully loyalty – have not changed. But, the methods incorporated and the mediums utilized in this age of permission marketing certainly have accelerated brand evolution, and reshaped the ability of wine marketers to consistently maintain message and elevate inherent brand value.

Don Draper, Emotional BranderVideo as a tool in brand marketing kits has been around for a long time, since the golden age of television changed how the Mad Men utilized emotional branding. But that was in a time of 3 networks and low resolution TV signals received by antenna, and shown on sets limited by CRT’s and tube technology. Now we live in a world of flat screen multi-media receivers featuring 3-400 channels delivered via cable or satellite, increasingly in an HD format. We all have our iPhones, smartphones, net books,and laptops connected to the ether of the internet via wifi or laptop broadband connect cards. FlipHD cameras have becomLisa filming Keth Hock w/FlipHD at Keefer Vineyarde ubiquitous, and the new iPhone 3G-S is capable of recording video and sound. Consumers are empowered to capture and then replicate images through YouTube, Twitter, Facebook and Vimeo. As a marketer desiring to incorporate innovative best practices as part of your integrated wine brand marketing tactics, it would behoove you to not only be aware of and master contemporary and evolving video technologies, but to observe others in wine biz marketing incorporating video as an effective emotional branding medium; and then, within the culture of your wine business mirror the most successful applications utilizing consumer driven video applications to deliver and hopefully maximize the dissemination of your core message.

Carl SaganVideo to effectively make a connection with our, as Carl Sagan describes, reptilian brains it must maximize emotional impact through the use of images, sound and narrative. Story matters, even more in a visual medium. Story always matters. We, as consumers, have developed keen message filters, accepting some messages, disregarding others as junk mail, or sending many directly to the trash as cynical exercises in marketing voodoo. The narrative often determines the tenure of the video, and the visuals tend to follow the story. Although, Diane Ackerman advises that “the visual image is a kind of tripwire for the emotions.” And, Scott Bedbury of Nike and Starbucks states, “Great brands taps into emotions. Emotions drive most if not all of our decisions. A branSteve Jobsd reaches out with a powerful connecting experience. It’s an emotional connecting point that transcends the product.” “A great brand is a story that’s never completely told. A brand is a metaphorical story that Blake Mykoskie of TOMS Shoesconnects with something very deep. Stories create the emotional context people need to locate themselves in a larger experience.” Within the context of wine brand marketing, to make this connection with and to make an imprint on our limbic brains, the story needs an inherent legitimacy, and needs to exhibit a ‘realness,’ to create emotional brand capital with the power to translate experience and awareness into action (purchase). Your goal in this saturated wine marketplace is to create a compelling brand identity, by using your whole marketing tool chest, including video, and by creating an emotional connection between your brand promise and your targeted set of consumers…and, then delivering on that promise. Some examples of this are Steve Jobs at Apple, Blake Mycoskie at TOMS Shoes, and now, within our own wine industry, Wilson Daniels Films.

Wilson Daniels FilmThrough luck and circumstance I had the opportunity this past week to follow Bret Lyman, of B-Napa Studio, and Lisa Mattson, of Wilson Daniels Films , shooting the Schramsberg Documentry , and to post tweets in real time documenting the Documentary. Having had the chance to interact with Lisa Mattson,Lisa Mattson w/ToxBox at Wine 2.0Wilson Daniels Director of Communications, at two Taste Live events, an Earth Day teleconferencing session with Bernard Lacroute of WillaKenzie in Oregon’s Willamette Valley, and Nigel Nigel Greening of Felton RoadGreening of Felton Road in New Zealand’s Central Otago, and observing Ms Mattson’s TokBox live online discussions with Australian winery Owner Grant Burge at this Spring Wine 2.0 event at Crushpad, SF, I knew that Lisa gets it. This is someone that industry should be watching and mirroring. Whip smart, professional, accomplished and with a work ethic that is unmatched, I knew that this would be a good shoot. The bonus was local B-Napa Studio Principal and Director of Photography Bret Lyman, who first came into focus with the wine marketing community with his award winning film “CRUSH” for Don Sebastiani & Sons. Although a local Napa Valley kid, Bret migrated to New York City to work in the production of commercials, where he earned his chops in production and editing.

The Schramsberg Documentary crew at Standish Vineyards, Anderson ValleyMaybe it’s the big city experience or the Malcom Gladwell 10,000 hours to competence theory, but working with these two, Lisa as Producer, and Bret as cinematographer, editor and visual story teller provided another take on the creative process. I’ve often said, I don’t know all the answers, just most of thSchramsberg Documentry Grip Holding Tree Branch for Bret Layman shote questions. On a ride back from the shoot in the Anderson Valley, I asked about Bret’s background helping with framing the shoot. His response was on-point that although he’s a commercial editor/producer by training, his foundation is as an ‘emotional brander.’ And although there was a scene schedule outlining the shoot, Bret, reinforcing my experience with the creative process, said the scenes revel themselves as he shoots.Watching these two pros function as a unit at each location was another lesson in getting the job done correctly. And yes the resulting thought-provoking visuals were revealed as part of the process. This wasn’t a video being shot, but a real film shot by consummate professionals, capturing the visceral images and rich details at each location.

Lisa Mattson Slatting the shot for Bret Lyman at Juster, Anderson ValleyMy emotional connection with Schramsberg goes back to my days at Disney when I was promoted out of food & beverage and assigned responsibility for Village Wine & Spirits. I knew that I had to differentiate the shop to be successful. One of my plans was a wall of Methode Champenoise wines. Schramsberg was my first domestic sparkler and my best seller. It didn’t hurt that President Nixon took Schramsberg to China on his visit tKeith Hock & Lisa Mattson in Juster Vineyard Filming Schramsberg Documentaryo establish detente. Since my Disney days, I’ve visited Schramsberg on several occasions, but over these two days I had unfettered access to the backstory of people and place. Riding from Sonoma up to Mendocino’s Anderson Valley with Keith Hock, I was able to ask any question that I wanted, and was surprised to learn that he sourced 92 separate vineyards in multiple appellations in the Napa/Carneros, Sonoma Coast, Marin Coast, and Mendocino/Anderson Valley AVAs for Schramsberg. And these are not just any vineyards. In Anderson Valley we stopped at Juster, and Standish, and had a meeting with Paul Ardzrooni, Schramsberg’s Anderson Valley Vineyard Manager, in the Savoy Vineyard. After lunch at Underwood, where Keith reveled that he was a professional bike racer who lived for a period in France Keith Hock, Schramsberg Winemaker checking the Pinot in Keefer Vineyards, Green Valleyriding in races such as the famed PariBret Lyman & Lisa Mattson shooting Schramsberg documentary in Keefer Vineyards Roubaix, we headed to the Green Valley and the Keefer Vineyard. Watching Keith walk around through the vineyard, looking at the fruit, I noticed that his eyes lit up like the Sebastiani Theater marquis at dusk. He was at home and in his element. Then off to the wilds of the Sonoma Coast and the Saltonstall Vineyard, where the grapes shared space with the wind, the fog some sheep and a white border collie that keep between the film crew and his flock. The light faded before we had a chance to continue to the Hyde/Carneros location. BTW: these aren’t any vineyards, but vineyards that supply fruit to some of the most revered Chardonnay and Pinot Noir still wine producers in Northern California. Great wine takes great fruit, and with these sources Schramsberg’s quality is assured.

Riddler, Ramon Viera scene set-upDay two of the shoot was at the winery. I’ve been around wineries for the last 25 years, and there are certain cues that I observe that tell me the real story. First are the grounds, then the cellar, then bottlinBret Lyman filming shoot positioning at Jack's Block of the J Davies Estateg and most importantly the people. I came away impressed. And as I’ve said before I’m somewhat jaded. I was impressed from the start, first with Scooby of Rios Vineyard Management, to Marketing Manger Matt Levy, to Ramon Viera, the world’s fastest riddler. What I liked best when I asked Ramon about Hugh Davies, he replied that ‘Hugh is one of us.’ There’s a cultural context to what Ramon said. Hugh is respected as the boss, but this respect is reinforced by his not setting himself apart from his team. Great Hugh Davies at Schramsbergcompanies, and great wineries are the work of a team. This is a lesson that we must learn as marketers. The best wines come from an emotional connection by the team. If we can visually convey this, then our customers will bHand Labeling J Schrame part of that connection. I can’t wait to see the finished Schramsberg Documentary film from Bret and Lisa. I know it’s going to be good. When I left, Bret and Lisa were still filming, so, Bret posted the last scene shot that day on my Facebook wall, a long view of a Schramsberg cave tunnel. He said he dreamed of the shot the night before, This almost obsessive attention to detail, the philosophical mindset of this filmmaker, the creative intuition and passion displayed in B-Napa’s earlier work for Wilson Daniels Films, and the ability to draw out that essential visual narrative in consort with Lisa is so important to the ’emotional branding’ inherent in this 2 year long documentary process.

Note: Copyright © 2009 Think Wine Marketing® All rights reserved.

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Dispatches from the 2009 Wine Bloggers Conference

Grateful Dead

“Spent a little time on the mountain,
 Spent a little time on the hill,
 Things went down we don’t understand, 
but I think in time we will”
… “New Speedway Boogie” … Words by Robert Hunter; music by Jerry Garcia

***

Conferences are conferences are conferences, and it seems that the one-on-one conversations are often where the real ideas Hardy & Ashley at WBC09are exchanged. Discussing ideas and feedback on just what it is that we’re doing, what others are doing or have done will tend to make us all more proficient tomorrow. A lot of citizen wine writers are in factthe twitterai at WBC09 technology geeks.  Really smart technology geeks, like Doug Cook of Able Grape, who is now the director of search at Twitter, or founder organizer Joel Vincent, or Paul Mabray of VinTank, or Evan Cover of Cruvee, or Josh Hermsmeyer, or etc, etc. The Wine Bloggers Conference IQ meter has been off the charts. This active exchange of ideas with so many wicked smart people is really charging my batteries. The take-away is that I wish that more wineries would embrace this democratization of wine information. Oh, not just the social media side of this, but the energy and intelligence inherent in this citizen wine writer movement. I’m also shaking my head in disbelief that more wineries weren’t standing in line to talk to the candidates from the A Really Goode Job promotion. I had the chance at the conference to talk with Frank Gutierrez of Frank Loves Wine and one of the VinTank 4 + . With a nod to Malcom Gladwell’s Frank Gutierrez of Frank Loves Wine‘Blink’, I’ve always been good at recognizing talent in meetings or during interviews, and then in securing this talent. I alway wanted to surround myself with people that are smarter than I am. Have you noticed that your education doesn’t end the day that you get your diploma, that life is a process of observing, learning, and incorporating best practices until you’re boots-up. Frank is someone that I followed through the arcane process of ARGJ. Mostly because he reached out to engage me. Last night I had the chance to talk to Frank about his aspirations and his vision. I came away floored. I’m not prone to intemperate decisions, but if I were a winery in this economy, I would have extended an offer to Frank on-the -spot. So, out there in the winery world, I just want to know is this somebody that you want working for you competitors, or do you want your wine business to be the next success story?

***

CIA at Greystone, St Helena, CANapa Valley gets it. They’ve gotten it for quite awhile. The Napa Valley Vintners Association knows how to throw a party, and, at the same time, how to effectively communicate their message. Kudos to Terry Hall, Joel Coleman-Nakai, Kat Corcoran, et al. And special thanks to Paula Kornell. I first met her years ago during mBarry Schuler & Marc Lhormer discussing WBC09y tenure at Disney when visiting the Hans Kornell Winery to meet her Dad, Hans Kornell, one of my all time favorite Napa Valley vintners. Having met Paula as a small child, I’ve followed her career from the early days, through her ascension to the top of the Napa Valley wine industry. I know her dad is somewhere, smiling from ear to ear, a glass of sparkling wine in his hand thinking ‘I did a good job.’ Well, Hans, yes, you did a very good job indeed. What a start to the day. Talk about firepower, from the kick-off talk by Ms Kornell to the engaging and effective Charles Henning, ExecutiveEd Thralls, Rick Bakas, Paul MabrayDirector of the CIA (the original CIA) at Greystone, to how to be a better wine blogger/writer from the source that knows, Jim Gordon, Editor of Wines & Wines. But, please allow me a moment to go WOW!!! Barry Schuler, internet pioneer, owner of Meteor Vineyards and VC icon, and one of the great intellects of our time gave a speech that would likely fill the Moscone Center Herta Peju hosting bloggers at Peju Winery WBC09convention hall auditorium at Macworld . And this was just the start of the day. Back to the shuttles, and off to the real business of wine writing, meeting with the winemakers. It was my luck to have a chance to go to Peju Province Winery and to sit with the co-founder, the lovely Mrs Herta Peju herself. Then off to Spring Mountain Vineyard for what would turn out to be the Napa Valley Cabernet tasting of my lifetime.

***

Spring Mt. HouseI’ve been around wine a long time. I’ve attended so many tastings, and thought that I had seen it all. Don’t get me wrong, I am as passionate as ever about wine and the wine business, but how much more new is there? Well, I soon found out, sitting at rounds in the living room of Tuburcio Parrott’s old Victorian, and tasting wines from the mid-90’s and the current or future releases from a list of storied Napa Valley vintners: Jac Cole of SprinThe tasting Panel at Sring Mt, for the Napa Valley cabernet Sauvignon bloggers tasting at WBC09g Mountain, Ted Edwards of Freemark Abbey, Jeffery Stambor of Beaulieu Vineyards, and Paula Kornell of Oakville Ranch Vineyards. Not only did I come away impressed by the overall quality, but by the openness, the frankness and the transparency of the conversation. Yes, times and communications have changed, and they’ve changed for the better. Also, isn’t it about time that we now refer to Sauvignon Blanc, Cabernet Sauvignon and associated varietals as Napa Valley varietals and drop the anachronistic use of the term Bordeaux varietals? Just saying….

***

The grand napa Valley tasting at Quintessa for WBC09Recovering from a day of wine tasting in Napa, after a grand tasting at Quintessa that went by in a flash,IMG_0762 and a great dinner with old friends at Franciscan Vineyards hosted by Jay Turnipseed, Aaron Potts, Efrain Barragan, and Cathy Corison, it was back to the Flamingo trenches, and a morning of shared education. Thanks to Tim Lemke, who gave a tutorial on how to monetize blogs, and to Doug Cook, Director of Search at Twitter, who conducted a discussion on just how search actually works. And then of course back to the busses and off to the Russian River Chris Donatiello conducting a bloggers wine tasting at the WBC09and Dry Creek Valleys for more on-site interaction with our sources. I was lucky enough to be invited to C.Donatiello on Westside Road. Chris, Web, Robert and Vanessa get it. Because they get it they’ll be one of the thrivers as the economy rebounds. Oh, and the C.Donatiello Chardonnays and Pinots are fab. Next time you’re in the Healdsburg area, head over and treat yourself to one of our area’s top winery hospitality experiences. And, don’t miss the summer Sunday concerts. Can’t think of a better way to send a day in wine country.

***

Tim Lemke at WBC09There is some significant wattage of talented, professional and intellectual firepower residing in the citizen wine blogger community. Most of the resources in this community are just an email, a text message or a phone call away. As a group we’re always looking for ideas, so don’t be afraid to pitch us. Oh, I have the scoop that I promised in my last post: Evan Cover CEO at Cruvee is pairing with Josh Hermsmeyer in development of the winery interface for helpawineryout.com, facilitating the targeting and interaction between wineries and citizenDoug Cook, Twitter Director of Search at WBC09 wine reviewers. More to come as this story fleshes-out. Also, note that there is new media, creative talent out there looking for work. And, not just because they’re looking for work, but because they’re passionate about your (our) business, the wine business. Be counterintuitive and hire the best talent in these tough times to maximize your rise out of the morass, as the economy bounces forward and upward. Adopt and incorporate the appropriate technologies for your wine businesses. Recognize that the game has changed, and we’re all in this with shared responsibility for (re)inventing the future. The bus of wine biz marcom is leaving the station and picking-up speed. Get on-board as soon as you can, or risk being left out of the conversation. Identify and mirror those companies that get it, such as: Hahn, St. Supery, Murphy-Goode, C.Donatiello, Judd’s Hill, Gunlach Bundschu, the NVVA, or Wilson Daniels. Observe, study and then incorporate their best practices into your winery’s marketing/communications operations. Sink or swim, we’re in this together. We do this thing because we must. We are a community driven by passion and talent, and fueled by a burning intellectual curiosity. We are not so different from you. Oh, we may be the early adopters, but the door on the bus is still open. So, come on-board. It’s going to be a fun ride.

Note: Copyright © 2009 Think Wine Marketing® All rights reserved.

Is The Medium the Message?

Marshall McLuhan“Obsolescence never meant the end of anything. It’s just the beginning.”
… Marshall McLuhan

The opening talk by Paul Wagner of Balzac Communications at the recent kickoff meeting at the St. Helena based CIA’s Rudd Center of the reenergized Academy of Wine Communications was filled with promise.Academy of Wine Communications Promise tempered by concern. Concern that the world of winery public relations was changing, and it was changing fast. How we all communicate our messages and to whom is in a state of flux. Our own local major urban newspaper, The San Francisco Chronicle is the canary in the coal mine when it comes to wine coverage. While the articles and reviews are still top flight, the once dedicated wine section no longer makes economic sense in a world where news, reviews and information availability is ubiquitous anywhere where there is an internet connection. Having been around for awhile, I’ve discovered that change is good for the soul. It’s adapt or perish. Old dogs can and must learn new tricks.

aka Bistro, St HelenaToday at lunch in St. Helena, I couldn’t help but notice the number of smart phones, netbooks and laptops that were visible and in use. The discussion of the decay of manners in American society is a topic for another’s blog, but the use of technology is here and it’s how we now talk with each other. Technology enables how we get and filter our daily information. My invitation to lunch was in the form of a text message sent from a client’s Blackberry to my iPhone, and my response was in kind. We both knew several people in the crowded room, so after the check was paid, we took the opportunity to network. Networking in the old school sense by shaking hands and swapping stories. My host became involved in a longer conversation, so I thought I would do some market research. Alaptop keyboard couple from South Africa was teleconferencing with their winery staff on their MacBook Air laptop. The honeymooners from Florida were posting pictures of their lunch on Facebook for their friends and family back home. The young women from the New York distributor, on an educational trip to the Napa Valley, were documenting lunch and the local wine choices on their company blog. The local vineyard owners were texting details of their luncheon deal back to their CFO. The room was abuzz, and the restaurant was mentioned to countless contacts around the States and around the world.

Reading the NewspaperIt is an incontrovertible fact that we are in an age of permission marketing. Consumers choose what message or marketing centric handshake to accept. We have to ask and answer the question as to what now works, and how do we track the metrics of Public Relations success in this new, new world. How can we still control the substance and intent of our brand messages? Do the number of mentions and the old circulations numbers still function as the measure of success? And, if now, what about tomorrow? The rise of social media and the conversations of wine bloggers, wine forums and the active wine community on Facebook and Twitter are in fact being tracked by Cruvee. Batchbook, a small company contact manager CRM has developed a social media interface that allows registered users to read what their clients are saying on social media networks about their brand(s). Salesforce.com, the cloud CRM application has added a module offering clients the abilitytwittering to listen and interface with their customers on Twitter. So, it is now possible to initiate communications initiatives within specific targeted communities and then track and document the specific resultant metrics via Cruvee, or the appropriate hosted CRM. I happen to think this is more accurate and more effective than a review or a story in a classic metropolitan newspaper, where the accepted metrics were, in my opinion, perhaps more nebulous, by tracking insertions and assuming circulation numbers equaled reads. Of course the numbers won’t look as good, but we are now actually narrowcasting to an identified set of wine consumers rather than broadcasting. If we do this in a limited set of markets, then an ROI can be established by tracking the effect on wine sales within the defined geographies over a 30 day followup period.

Rutherford GrillTraditional CPG best marketing practice must carry the day without regard to the communications medium utilized. In a conversation at the Rutherford Grill,after the AWC meeting and reception, with two giants in winery PR, Jim Caudill and Tim McDonald it was agreed that times have changed, but that the basics have remained the same. The story to have value and to create interest must be unique,Jim Caudill replicable, visceral and verifiable. There must be an objective beyond just awareness. It has to be about managing your winery and your brand(s) reputation. Specific objectives for your communications program must be established and objective points of achievement must be tracked. Action without accountability is likely devoid of merit. Key communication points must be defined and repeated as part of your winery message throughout all tiers, all channels and all outlets. Listen to the pros, incorporate their ideas, and you’ll be effective in achieving your planned programs.

Inconsistency just doesn’t work in winery PR. In my time in the ether of social media, I have witnessed some egregious breaches Twisted Oak Signof sound public relations communication principles. Making the effort and then bailing seems to be worse than not making the effort at all. To be effective in your social media or traditional media engagement efforts it is important to be interesting, consistent, honest, transparent, and personable. The feedback from those in the know is that the format for conversation has changed, the rules of interface have changed, but the idea of

Jug Shop Pinot Days Promotionbest practices remain.There are many wineries and wine shops that do this job well: Twisted Oak, Hahn, St. Supery, The Jug Shop, Domaine547, Winery Collective, Walla Walla Wine Woman, and of course Bin Ends Wine, founders of Taste Live, to name a few. Hahn and St Supery have established the role of social media management as a key winery functional area. With the advent of the the Really Goode Job promotion, the industry has had the opportunity to identify a number of very talented individuals on Murphy-Goode’s bank. It is my fervent hope that many or most of these individuals, finalist or the overqualified, are offered wine industry PR positions.

In spite of the spate of current conversations and all of our observations of old media hand wringing, traditional print media is not yet dead. Perhaps they’re under the weather with a serious case of where are we now introspection. Each week in my iMac mailbox I receive an update from Wine Opinions listing wine reviews and stories that have been printed in major urban USA newspapers. Wine Opinions has also recently identified key wine bloggers and listed key stories covered in this emerging universe. Anyone in the wine business  who has worked with or talked to a wine distributor sales person in current times understands the functional role of reviews. Good to great reviews raise the awareness of your winery or brand with the first line of gatekeepers, and function as virtual key masters unlocking access to the market. So, don’t throw away or demean this still important point of market information.

Imagine How Others Would Do ItI’ve had the opportunity recently to interface with some real wine industry public relations pros and integrated communication wine marketers: Lisa Adams Walter of Adams Walter Communications; Michael Wangbickler of Balzac Communications; Victoria Bunch, former HP PR executive, and Tia Butts of Benson Marketing Group. The individuals in this group along with the aforementioned Jim Caudill and Tim McDonald will help you identify and craft your brand message and act as pilots to assist in navigating your winery through the now churned waters of wine business communications. Remember that Marshall McLuhan advised us that “it’s not the medium it’s the message.”

Note: Copyright © 2009 Think Wine Marketing® All rights reserved.

The Wake-up Call

Niccolo Machiavelli“Whosoever desires constant success must change his conduct with the times.”

… Niccolo Machiavelli

The Cult

My wife’s friend, New York based designer Joe Macal, told her that this summer in the Hamptons the wine selection on the party circuit is no longer the envy of the wine cognoscenti. The cult wines have been locked in the basement wine cellars of the McMansions, and the famous hosts just don’t think ostentatious displays of conspicuous consumption are cool in this economyHamptons Summer Party. Or so opined a vintner friend over Racer 5‘s in Healdsburg last week . I’m guessing there has been a sort of a reverse Veblen good effect going on here. Well, no doubt the tide is out. Wall Street has sneezed, and it’s looking less like a cold and more like the financial flu. The question being asked in the hills and knolls of wine country is ‘are we in a luxury goods recess, or has long-term consumer, even the most affluent consumer, behavior been modified?’ The luxury category segment of the American wine business known as the cult wine market has been on anKinked Demand Curve Model unprecedented run since 1990. While the term is new the concept isn’t. There have always been wines, as long as wines have been produced and sold, that commanded more attention and higher prices. Although we look at absolute pricing as an identifier of value, pricing is relative to the times, and through the inverted kink in the demand/pricing graph made famous by the late Dr Paul Samuelson in ‘Economics,’ and codified by John Forbes Nash in ‘Equlibrium,’ we’ve come to understand that the stratospheric pricing of cult wines infers on the host and guest the psycho-social attributes, as described by Berkeley’s Erving Goffman, of being accepted as members of the club. However, just ask Silas Lapham, membership in the club may not be long term.

The Call

Screaming EagleRinggggg, ringggggg, ringggggg. Sitting bolt up-right in my desk chair, looking past the glare of the iMac screen in the darkened room, I couldn’t believe that at 5 AM my iPhone was vibrating off the edge of my desk. Quickly shaking my head back-and-forth to loose the remnants of the mind numbing long night’s work of pushing ouHarlan Estatet pricing structures for a client’s new label project, I answered my phone without first checking the caller-ID. At the sound of the click the sonorous voice at the other end of the connection jump started the conversation. “Hi, sorry to call you so early, but did you read today’s Wall Street Journal article on the luxury wine market? Well, it struck home. My sales, for the first time in 15 years aren’t so great, and well, I’d like to toss around a few ideas.”

“Not a problem, I’ve been up working on a project, but no, haven’t read any papers this morning. Ah, excuse me. Who is this?”

“I’m that small cult winery, ha, that you pitched last year about this time and I told you I didn’t need any help. But I just got off the Araujophone with a management contact at my Boston asset management firm and, well, I need it now.” “I’ve replanted about half of my vineyard, changing the potential final blend, and the grapes are in 4th leaf. I could bottle the young juice in my primary brand, but the overall quality would be diminished. And if there was ever a time to push the quality envelop, it’s now.” “I’m thinking about introducing another label, in a more popular tier, something that could be sold in other environments, other channels. I’ve always been at the luxury end of the market, but I do buy other wines all the time, and think it would be great to get this new wine in more hands.” “So, how do I do this?”

The Plan

Yes, it is possible for a luxury brand to execute a lower priced, more egalitarian brand strategy effectively. A clear focus is needed and a tier specific brand plan is necessary. There are key questions that need to be asked and answered.

  1. Theme – name, appearance, label, packaging
  2. Personality – place, product, pricing, promotion
  3. Tactical Plan – what, when, where, how, how much
  4. Reputation Engineering – the PR initiative
  5. Sales Effort – DTC, DTT, existing distributors?

Forts de LatourA great team is in place, and to dislocate them for a new project just wouldn’t make any sense. They are part of the positive story for your existing brands and lend credence to the new project. You’re current cult and luxury portfolio is based on Napa Valley mountain grown Bordeaux proprietary reds. Protect the image of the existing luxury/cult brands by reducing production by further defining selection and maintaining real rarity. Use the traditional Bordelais classified growth second label model. Think Forts de Latour from Chateau Latour, Pavillion Rouge from Chateau Margaux, or Le Petite Cheval from Chateau Cheval Blanc. Share the story of replanting with new clones and the early quality displayed by the young vines, whilimages-3e refining the cult winemaking process. Increase exposure and the positive press and/or wine blog buzz opportunities by providing value and access to wines which were formerly unavailable in the broad market from your winery. In a market in which Michelin star chef Daniel Boulud has decided to focus more on value with DBGB Kitchen & Bar, the idea of a cult brand providing a more value centric model is not only timely, but most likely necessary given the reality of today’s world financial markets.

The Wrap

drafting plansCreating any new brand in a rapidly consolidating and saturated broad market is not without risk. Manage your risk by utilizing research to target the best potential accounts. Work with key lighthouse accounts, both on and off-premises in limited geographic markets, who will provide support through newsletter, blog and/or web endorsements, while avoiding brand image diminishing discounting. Be sharp in your pricing to not only maximize profit but to achieve planned depletion velocity and consumer pick-up and repurchase. Your value proposition is leveraged on your existing reputation, built through hard work and a fidelity to your singular vision over the last 15-20 years. Don’t engage in any activity that will diminish the new brand or your existing brands. And, really only do this if you are totally committed to success, and not just as a short term liquidity fix.

Note: Copyright © 2009 Think Wine Marketing® All rights reserved.