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An Integrated Marketing Success Story in an 8,000-year-old Industry Denise Stillman

An Integrated Marketing Success Story in an 8,000-year-old Industry Denise Stillman. Wine: Ancient Nectar of the Elite. Earliest written account of viniculture in Bible ’s “Old Testament” N oah planted a vineyard and made wine

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An Integrated Marketing Success Story in an 8,000-year-old Industry Denise Stillman

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  1. An Integrated Marketing Success Story in an 8,000-year-old Industry Denise Stillman

  2. Wine: Ancient Nectar of the Elite • Earliest written account of viniculture in Bible’s “Old Testament” • Noah planted a vineyard and made wine • Honey and grain older fermented crops than grapes, but nowhere near the social impact of wine • Grape cultivation and wine drinking started possibly as early as 6000 BC • Caspian Sea and in Mesopotamia, near present-day Iran • Priests and royalty were using wine, while beer was drunk by the workers source: http://www.winepros.org/wine101/history.htm

  3. WineStyles Brings Elite Nectar to the Masses • Founded in 2002 • Inspired by a backyard barbeque with friends • Guests blind-tasted wines • Winners not necessarily the most expensive or best marketed; but ones that simply tasted best • WineStyles® was created to make it easier for consumers to buy and understand wine

  4. WineStyles Simplifies, Educates • Organized by eight different taste profiles vs varietal or region • Demystifies the selection of the right bottle of wine through taste profiles : • Provides a description listing the wine's characteristics, flavors and suggested food pairings with each bottle • Each of the more than 100 WineStyles ® retailers in the U.S., Mexico and Puerto Rico carries • Regional and local wines • Unique, hard-to-find wines from small and large vineyards all over the world • Up to 150 revolving world-class wines and most are priced between $10 USD and $25USD per bottle (7.02 – 17.54 EUR)

  5. U.S. Wine Market is 2nd Only To France • Americans already spend more on wine than any other nation • In 2007, U.S. invested nearly $22 billion in wine purchases • Average total wine consumption in the U.S. from 2007 to 2012 is projected to grow by 1.9 percent ACGR • Men equal women now in consumption; Millenials (ages 21-31) adopt wine more than beer or spirits Sources: Recession Proof Remodel: The Wine Room,” www.prlog.com, February 20, 2009; 2008 Wine Handbook

  6. WineStyles Capitalizes on Trends, Boosts Interest Amidst Recession • People still drink in an economic downturn • Alcohol tends to outperform compared to other parts of the economy in a recession • Wine market has grown 20% from 2004-09 despite recession • U.S. sales of wine and beer meant to be consumed at home were expected to rise 4.8 percent in 2009 to $79 billion • Not drinking less • Spending during the recession is just shifting to stores • Already in the 12 months ending in February, Americans spent 7.2 percent more on wine at food, drug and mass-merchandise stores than they did in the same period a year earlier • Young, franchised company needs to support franchisees, build brand image • Grow sales volume amidst recession • Continue franchisee growth interest Sources: www.mintel.com, Nielsen Research

  7. Online, Local Marketing Helped Company Grow • Pre-May 2009 Marketing Mix • www.winestyles.net • www.winestyles.com.mx • www.winefranchise.net • On-premise marketing (100+ franchise stores) • Weekly e-mail marketing by each franchisee • Social media marketing (Facebook) • Franchisee local event marketing with celebrity chefs, winemakers

  8. Franchisor Consumer Site

  9. Franchisee Local Store Website

  10. Site to Market Franchising

  11. Franchisee Facebook Site

  12. Integrated Marketing Adds Mass Media, Event Marketing • In May 2009, added mass media and event marketing to the mix • Used consistent visuals, messaging • U.S. launch of first TV commercial • Tested with cable TV spots to support 17 stores in Chicago area • Franchisees could opt-in with media purchases zoned to drive traffic specifically to them • 14 participated • Ran May – July 2009 • Hosted Australian wine ambassadors at Chicago Jazz Festival to cross promote their wines at area WineStyles ® stores • Target • HHI $100K USD, female, college-educated

  13. Integrated Marketing Approach Boosts Sales, Web Traffic • Store Sales • 21% more transactions • 3% increase in dollar amount of avg transaction • Those stores not supported by TV saw 16% fewer transactions • Web Visits to Franchisor Site • 23% increase in new traffic • 13% more overall visitors • 49% increased usage of store locator page • Spent 23 more seconds on site

  14. Dankë merci  dankevell GRACIAS  TACK  GRAZIA  dank u  Hvala  Dêkuji Achiu Kiitoksia Dziekuje Multumesc Thank you

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