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Wine Marketing Paul Wagner, President, BALZAC Instructor, Napa Valley College Wine Marketing & Sales GOAL OF MARKETING: OPENING THE DOOR • Define Winery Position • Understand Distribution • Support Sales How are Sales and Marketing Different? • Sales is the transformation of inventory into cash. • Marketing is the development and protection of the brand. • These are not mutually supportive goals What is a brand? • A brand is the symbol that consumers associate with your company and products. • It’s worth is a direct measure of your marketing success. • If you have a company, you already have a brand. So what is your position? • If you have a brand, you have a position. • Do you know what it is? • How can you affect it? • What do you want it to be? That’s really big question: •What do you want your brand to be? So how do you answer it? • Build on what you have • Eliminate the negative • Look down the road SWOT DIAGRAM • Strengths • Weaknesses • Opportunities • Threats SWOT • Analyze competitive marketing programs • Focus on high return programs • Invest in long term strategies Build your Brand • Lead the category • Own a word in the consumers’ minds • Create value for the company • All this will help sales PULLING THROUGH THE PIPELINE • How does marketing help? • Who really gets people to buy a specific wine? Role play it. • What can it do that advertising can't? • Can it build long term success, relationships, results? DON’T JUST TALK; LISTEN “Propaganda ends where dialogue begins.” Marshall McCluhan WHAT EVERY WINERY WANTS • • • • • • QUALITY Best buys High scores News Interesting photos More buyers, better sales WHAT THE MARKET WANTS • • • • • • QUALITY Authenticity Personality Best buys High scores Interesting photos WHERE DO YOU APPLY THIS? • • • • Promotions Placement Pricing Product! • This is your brand. This is your message to the world. DON’T JUST TALK; LISTEN “Propaganda ends where dialogue begins.” Marshall McCluhan COST EFFECTIVE COMMUNICATIONS : • Public relations • Promotions • Special events SWOT—AGAIN • Analyze competitive programs • Focus on high return programs • Invest in long term strategies HOW DO YOU CONVEY QUALITY? • Scores, Prices, and your own marketing • Scores: everybody gets good scores these days • Prices: what the market will bear • How to convey quality? THAT’S MARKETING • Do you stage your house when you sell it? • Do you detail your car? • Now it’s time for your wine – Packaging – Marketing Affiliations – Strategy and Tactics WHAT ARE QUALITY CUES? • Heavier bottles– like heavier silverware. • Label paper vs. design • Cork, Capsule, Case • Wood boxes? DO CAPSULES MATTER? • They prepare the consumer’s perceptions • They affect perceptions immediately • Point of Consumption—at home, Or in a restaurant. CREATE PERCEPTION • Is a capsule a message? • Who receives it? • Plastic or Pure Tin? • Everything you do matters MARKET RESEARCH TO DEVELOP PROGRAMS • Read the stories, study the trends • Talk to them, find out what they want • Give them what they want! SOUND HARD? “Except as I were given some well defined limitations or requirements -- the more specific the better -- there would be no problem to work with, nothing to work out; why, then, the Artist?” Frank Lloyd Wright TELL A GOOD STORY • Stories are about people, not things • Give readers a way to respond • Give yourself a way to connect CREATE A GOOD DESTINATION • What do visitors want? • This is not about wine—it’s about lifestyle. • Get them involved CREATE RELATIONSHIPS • Make your visitors feel at home • Get them involved • Give them an experience CREATE COMMUNITY • The best source of new business is existing customers • Call them. Talk to them. Write them. • Connect on and off-line. EVERY INTERACTION IS AN INVITATION • Always create a reason to talk again • Call key customers and talk to them • Remind them of your relationship SPECIAL EVENTS • Wine festivals • Donations • Market visits • Word of mouth—the buzz WINE FESTIVALS: GOALS AND BUDGETS • Trade show booths--play to win, don't just show the flag • Who will notice if you're not there--and how to deal with them • Wine costs, travel expenses • Piggyback for cost effectiveness • Everyone else will be in town at the same time DONATIONS: GOALS AND BUDGETS • Play to win--and think big • One big role is better than twenty bit parts • What can you get in return? • Negotiate MARKET VISITS: GOALS AND BUDGETS • Distributor meeting • Key accounts lunch • Media lunch • Consumer event IN SUMMARY • Know your message • Identify your audience • Deliver the message • Evaluate results DEFINE EXPECTATIONS • Goals and budgets • Hard results vs. Image enhancement • Be accountable—for all our sakes