Branding a Foreign Location in an International Market

1. Branding a Foreign Location in an International Market Sam Heitner Director Office of Champagne, USA

2. Overview • Traditional branding vs. location branding • Challenges of international markets • How Champagne communicates in the United States -- case study • What others can gain from Champagne’s experience in the US

3. Branding vs. Location • Historically branding has been focused on specific products: • Coca-Cola • Budweiser • Disney • British Airways • When specific locations have been involved, most branding has been travel related and been led by countries or major entities: • Jamaica • UK • Ireland • I Love NY

4. Trademarks support this • Trademark system is designed to protect names and brands. • Has no allowance for the idea that a location has any effect on the value of a trademark • In fact, trademarks can be sold. Something that one cannot do with a specific location.

5. Yet locations are very brandable • They are unique • Have specific conditions that distinguish them from others • Branding often enables locations to increase value or prices for products • Examples include: • A city and tourist destination (Villa Gessel) • An agriculture product (Vidalia onions) • Wines (Champagne)

6. Branding locations requires: • Bringing the unique attributes of the place to life • Distinguishing it from others. • Note: not necessarily claiming superiority over others • Targeted communications to particular audiences that relate to their specific needs and interests

7. International challenges • Most people are wary of outsiders • Most regions have communicated to an internal audience for many years • One must break through both barriers: • Speak to consumers in their own language • Go to where they are • Know -- and use -- their local influencers and natural allies to help you communicate

9. Champagne • Champagne is a region 90 miles north west of Paris • Famous for growing the grapes and perfecting the system required to make a specific sparkling wine called Champagne • It’s unique northern climate and chalky soil combine to produce a specific environment that makes Champagne • In fact, the soil, air, water and other environmental conditions actually affect the taste of the grapes and, therefore, the wine. • Only grapes from specific plots within the region can be used to make Champagne.

10. Champagne video shown here

11. How Champagne Communicates in France • In the EU and many countries, the word “Champagne” can only appear on wines from Champagne. • Most French citizens have been to Champagne at least once in their lives. They understand the unique nature of the place. • Therefore, within France the Champagne region focuses on wooing wine critics, educating consumers about the different types of Champagne, the distinct nature of particular vintages, etc. • In short, they communicate to the French people in their native tongue.

12. The importance of the US market • Champagne has always been a region that exports a large portion of its wine • In 2004: • UK: 35 million bottles • US: 19 million bottles • The US is one of Champagne’s key priorities as wine consumption is increasing. US consumers are willing to spend extra for quality. • Yet, the name “Champagne” is not protected and is used by many lower quality sparkling wine producers

13. In the US, we refocus tone & message… • The Champagne community has two goals in the United States: • Promote Champagne consumption • Protect the Champagne name • The US consumer is very wary of France and French people • Therefore we: • Highlight US examples (Napa, California, Oregon, etc.) • Speak with an American voice • Focus on Champagne’s unique environment and growing conditions • We always remind consumers that “Champagne Only Comes from Champagne”

14. In the US, we refocus targets… • We target communications to reach: • Consumers -- High income, college graduates • Wine business • Media -- particularly lifestyle, political, business and travel reporters • As advertising and communicating in the United States is VERY EXPENSIVE. • Only target consumers who are potential Champagne purchasers or who will be in 5 years

15. All communication is targeted • Media • Trips to Champagne • Monthly updates on the state of the grapes • Monthly updates on shipment figures • Interviews with winemakers traveling to the US • Targeted outreach to non-wine writers who reach the target demographics • Travel writers • Business press • Political writers • Lifestyle reporters

16. All communication is targeted • Wine trade • Wine education seminars • Support materials • Special events at trade shows • Alliances with US wine growing regions • Speaking to them in US “environments”yet where they can enjoy the beauty of the French product

17. All communication is targeted • Consumers • All media and wine trade communication influence US consumers. • Yet reaching consumers directly is imperative. • Retailer tastings • Materials available for wine clubs • Education seminars • Radio • Television • Magazine advertising

18. US-specific advertising

20. Measuring success • Since the campaign commenced: • Only French region to increase shipments to US • More Americans than ever site “importance of location” when making a wine purchasing decision • Many fewer media clips misusing “Champagne” and many more mentions of the Champagne region • A greater variety of Champagne brands are now on the US market

21. Lessons learned • Champagne effectively communicates about their unique location in multiple countries • They are effective because Champagne: • Proudly proclaims its uniqueness • Has support of all in the region • Changing messages, tone and materials to suit the target countries • Targeted media • Targeted advertising • Targeted events • Educating new wine consumers about Champagne

22. Lessons for other regions • Highlight unique attributes differentiates one in the mind of the consumer • Yet one must understand the target market and customize all materials, activities and events to match that audience • While proudly proclaiming what is special about these places • Include and represent all major sectors of community

23. What does one gain by launching a comprehensive branding campaign? These efforts can be time consuming and difficult, yet they can: • Increase international recognition of locations • Enable some to increase the value of products from the region • Help all players in the region (directly and indirectly)

24. Branding a Foreign Location in an International Market Sam Heitner Director Office of Champagne, USA