Post on 07-May-2015
description
Innovations in Marketing
Prowein 2010by Robert Joseph
Innovation...Marketing...
Two concepts wine producers in the Old
World have rarely embraced...
There have been a few...
Philippe de Rothschild – “Art Labels” and brand extension (Mouton Cadet)
Mateus & Lancers Duboeuf – Flower labels
Blue Nun and Black TowerJP Chenet
Miguel Torres
But these are the exceptions to the rule
Adapt or die...
Vaudeville theatreSilent FilmSound FilmTelevision
Tradition is an experiment that workedEmile Peynaud
Tradition is lazinessGustav Mahler
Grapegrowing ?
Winemaking ?
Packaging √The winery (tourism) √Communication √Distribution √
Region Brand Grape Don’t Know
Moulis 33% 17% 21% 29%
Malbec 18% 20% 26% 36%
Guigal 24% 19% 24% 33%
Torres 18% 57% 18% 6%
McLaren Vale
45% 55%
Clarendon Hills
33% 58% 9%
DoILikeIt Survey. London Wine Show. Oct 2009
Innovation in marketing...
1. Ask yourself WHY you do what you do in the way that you do it?
2. If you understand what you’re doing, are you sure your customers understand it?
3. Are you as important to them as you think you are?
4. Are you as important to them as they are to you?
thejosephreport.com
robertj@doilikeit.com
Down2Earth Presentation by David Cunningham
Vice President, Business Development, Europe
Innovation in the Wine Industry
Success Factors & Future Drivers
19
Down to Earth Seminar New World @ Prowein: 21 March 2010
20
Constellation Europe builds wine brands from all major new world origins
Successful Innovation: 5 Golden Rules!
1. Understand consumers current & future needs
2. Generate & nurture Ideas
3. Invest € in people & process to take concepts to launch
4. Build strong partnerships with key retailers
5. Launch - Take the lead & take a risk !
21
1. Understand your consumers
22
• Consumer research – needs, motivations & occasions
• Read trend analysis, market reports etc
• Observe / talk to your consumers!
Source: Constellation Europe Wine Nation 2007. Base: 12000 respondents
23
… Understand which needs, motivations & behaviours drive wine consumption ….& profit growth
24
5. Meet these needs…. Take the lead & take a risk - Launch!
Drivers of Innovation in wine in the future……
25
26
ETHICAL
PACKAGING & PRODUCTION
27
CONVENIENT
QUALITY
28
HEALTH &
RESPONSIBILITY
29
OFF & ON
TRADE
30
SOCIAL MEDIA &
TECHNOLOGY
Shape The Future
• Some recessional trends will remain & continue to challenge profit
Discounting & Low price @ Home vs Out of Home
• Convert consumers love of wine into focus on quality, experience & price
• Understand consumers…meet their changing needs & occasions
• Generate ideas
• Invest € to take concepts to launch
• Build strong partnerships with retailers,agencies & suppliers
• Communicate in a relevant way ….Connect with your consumers
• Lead … take risk!31
March 21st, 2010
SITUATION
The Importance of Millennials in the US market!
70 million consumers
40% of wine consumption is
importsLearn and
communicate on-line
Social Networking is Exploding!
Facebook, Twitter and Blogs
leadBuzz is key!
SITUATION
The Importance of Millennials in the US market!
70 million consumers
40% of wine consumption is
importsLearn and
communicate on-line
Social Networking is Exploding!
Facebook, Twitter and Blogs
leadBuzz is key!
US Consumer Situation & ImplicationsIMPLICATIONS
Opportunity for Chilean wines as these young consumers are driving
many wine trends
Opportunity to communicate with
Bloggers and consumers on a national basis, daily!
Buzz = Sales!
IMPLICATIONS
Opportunity for Chilean wines as these young consumers are driving
many wine trends
Opportunity to communicate with
Bloggers and consumers on a national basis, daily!
Buzz = Sales!
Page 34
Social Networking Penetration ExplodingConsumer generated media influence continues to grow!
Source: Nielsen OnLine, Global Index (USA, Brazil, U.K., France, Germany, Italy, Spain, Switzerland, Australia)
U.S.: 67%U.S.: 67%
Nielsen OnLine listens to the BUZZ - from nearly 100 MM blogs, social networks, groups, boards and other CGM platforms
Nielsen OnLine listens to the BUZZ - from nearly 100 MM blogs, social networks, groups, boards and other CGM platforms
Page 35
What’s Hot in Sales is Also Hot in Online Buzz
*Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru 05-02-09 **Source: Nielsen BuzzMetrics (May 09 vs. May 08)
Dollar % Change
Chile – Cab Sauv
Argentina - Malbec
New Zealand – Sauv Blanc
Sales Value % Change +15% +66% +18%
Buzz % Change +55% +95% +85%
Buzz Sentiment
WoC Social Media Initiatives
Case Study: On-Line Blogger Tasting• Wines of Chile has conducted two Online Wine Tasting influential US
wine bloggers through a live video feed, broadcasting simultaneously from New York and Chile.
1.Wines of Chile Online
Wine Tasting
(May 2009)
1.Discover Carmenere:
the lost grape
(Nov. 2009)
Case Study: On-Line Blogger Tasting
MODERATOR IN NYC
TASTING KIT
SENT BY MAIL TO
EACH PARTICIPANT
8 WINEMAKERS IN CHILE TO GUIDE TASTING
AND PARTICIPATE
IN Q&A
Case Study: Online Blogger Tasting• Bloggers logged into a Wines of Chile-
branded “room” to view the video and ask questions. They dialed into a conference call number to hear the audio feed.
• The Wines of Chile team was on hand to moderate the event on Twitter and to field questions for the winemakers from the interactive online platform.
• Images and information were available for the bloggers to download following the event to enhance their wine reviews.
Over 75 Participating Bloggers• California
• Florida
• Georgia
• Maryland / Washington, DC
• Indiana • Ohio
• New York
• Kentucky
• New Jersey
• Massachusetts
• Texas
• Virginia
Over 75 Participating Bloggers
US National Reach & International Impact!
2
4
5
7
14
17
Number of Bloggers per State
Very Active Presence on Twitter
Sample Tweets
TwitScoop
• Midway through the 1st online tasting, #WinesofChile was one of the most popular topics on Twitter!
Example Coverage• To date, there have been over 80 posts
resulting from the tasting.
GonzoGastronomy.com, 11/11/09 Girl with a Glass, 11/5/09
Cooking Chat, 11/13/09
Example Coverage
Wine Peeps, 11/10/09
1WineDude.com, 11/9/09
About.com, 11/6/09
Benito’s Wine Reviews, 11/16/09
Very Positive Blogger Feedback(via Twitter, emails and platform comment section)
“A fun and informative evening. Some revelations for me on a few of these wines. A very strong lineup across the board and excellent values,
too.”Dennis Attick, Decatur Wine
Dude
“I have to say, I really like [the Carmen] very diff than the others - I find some chocolate in
the mid palate especially with the
steak.”Matt Horbund, A Good
Time with Wine
“Have to say I’m curious to compare this to that 2006 bottle we originally
got. I get cocoa powder on this. I rather like it.”
Michelle Lentz, My Wine Education
“Terra Andina - like this one, blueberry liqour
with very slight hints of sauerkraut.”
Frank Morgan, Drink What YOU You Like
“Re-tasting the wines from the #winesofchile tasting to get better notes. Really digging the Terra Andina Altos the
more I explore it.”Tim Lemke, Cheap Wine
Ratings
“Thoroughly enjoyed the #WinesOfChile Carmenere tasting tonight. Great stuff. Value at all price points.”
Robert Dwyer, Wellesley Wine Press
“Not much twitter chat due to in-meeting Chat
session in the #winesofchile event, but
some impressive QPR going on right now in
these wines.” Joe Roberts, MS,
1WineDude
“Cono Sur Vision: sumptuous, going well with our guacamole, opening up nice. A favorite so far. rich
cherry now.” David Crowley, CookingChat
“I would LOVE a Sauvignon Blanc tasting!!!”
Megan Kenney, Wannabe Wino
“Chilean Wine ---- ROCKS!”
Amy Corron-Power, Another Wine Blog
“I really love what y’all got going on down
there.”Duane Pemberton,
WineFoot
“This was very well-organized and I learned so much! Really wonderful tasting and very comprehensive.”
Elizabeth Schneider, Wine for Normal People
Creating Buzz
BUZZ => SHARE OF MIND
What’s Hot in Online Buzz is also Hot in Sales
Key Learnings• This new online platform worked well, meeting all of Wines of Chile’s needs and
creating smooth interactions between all involved parties. However, the bloggers would prefer to have the audio stream through their computers rather than their phones, as several did not have a speaker phone available.
• The bloggers enjoyed more focusing on one varietal during the tasting. • The bloggers found it difficult to balance the video feed, phone, chat pod,
Twitter and the wine. Many cut out one of the chat elements in order to focus on the wine and the winemakers’ commentary.
• Bloggers want to be treated like traditional journalists and would prefer the more serious wine questions be relayed to the moderator in the future.
• Very cost efficient: US$30,000 each.
March 21st, 2010
SITUATION
The Importance of Millennials in the US market!
70 million consumers
40% of wine consumption is
importsLearn and
communicate on-line
Social Networking is Exploding!
Facebook, Twitter and Blogs
leadBuzz is key!
SITUATION
The Importance of Millennials in the US market!
70 million consumers
40% of wine consumption is
importsLearn and
communicate on-line
Social Networking is Exploding!
Facebook, Twitter and Blogs
leadBuzz is key!
US Consumer Situation & ImplicationsIMPLICATIONS
Opportunity for Chilean wines as these young consumers are driving
many wine trends
Opportunity to communicate with
Bloggers and consumers on a national basis, daily!
Buzz = Sales!
IMPLICATIONS
Opportunity for Chilean wines as these young consumers are driving
many wine trends
Opportunity to communicate with
Bloggers and consumers on a national basis, daily!
Buzz = Sales!
Page 55
Social Networking Penetration ExplodingConsumer generated media influence continues to grow!
Source: Nielsen OnLine, Global Index (USA, Brazil, U.K., France, Germany, Italy, Spain, Switzerland, Australia)
U.S.: 67%U.S.: 67%
Nielsen OnLine listens to the BUZZ - from nearly 100 MM blogs, social networks, groups, boards and other CGM platforms
Nielsen OnLine listens to the BUZZ - from nearly 100 MM blogs, social networks, groups, boards and other CGM platforms
Page 56
What’s Hot in Sales is Also Hot in Online Buzz
*Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru 05-02-09 **Source: Nielsen BuzzMetrics (May 09 vs. May 08)
Dollar % Change
Chile – Cab Sauv
Argentina - Malbec
New Zealand – Sauv Blanc
Sales Value % Change +15% +66% +18%
Buzz % Change +55% +95% +85%
Buzz Sentiment
WoC Social Media Initiatives
Case Study: On-Line Blogger Tasting• Wines of Chile has conducted two Online Wine Tasting influential US
wine bloggers through a live video feed, broadcasting simultaneously from New York and Chile.
1.Wines of Chile Online
Wine Tasting
(May 2009)
1.Discover Carmenere:
the lost grape
(Nov. 2009)
Case Study: On-Line Blogger Tasting
MODERATOR IN NYC
TASTING KIT
SENT BY MAIL TO
EACH PARTICIPANT
8 WINEMAKERS IN CHILE TO GUIDE TASTING
AND PARTICIPATE
IN Q&A
Case Study: Online Blogger Tasting• Bloggers logged into a Wines of Chile-
branded “room” to view the video and ask questions. They dialed into a conference call number to hear the audio feed.
• The Wines of Chile team was on hand to moderate the event on Twitter and to field questions for the winemakers from the interactive online platform.
• Images and information were available for the bloggers to download following the event to enhance their wine reviews.
Over 75 Participating Bloggers• California
• Florida
• Georgia
• Maryland / Washington, DC
• Indiana • Ohio
• New York
• Kentucky
• New Jersey
• Massachusetts
• Texas
• Virginia
Over 75 Participating Bloggers
US National Reach & International Impact!
2
4
5
7
14
17
Number of Bloggers per State
Very Active Presence on Twitter
Sample Tweets
TwitScoop
• Midway through the 1st online tasting, #WinesofChile was one of the most popular topics on Twitter!
Example Coverage• To date, there have been over 80 posts
resulting from the tasting.
GonzoGastronomy.com, 11/11/09 Girl with a Glass, 11/5/09
Cooking Chat, 11/13/09
Example Coverage
Wine Peeps, 11/10/09
1WineDude.com, 11/9/09
About.com, 11/6/09
Benito’s Wine Reviews, 11/16/09
Very Positive Blogger Feedback(via Twitter, emails and platform comment section)
“A fun and informative evening. Some revelations for me on a few of these wines. A very strong lineup across the board and excellent values,
too.”Dennis Attick, Decatur Wine
Dude
“I have to say, I really like [the Carmen] very diff than the others - I find some chocolate in
the mid palate especially with the
steak.”Matt Horbund, A Good
Time with Wine
“Have to say I’m curious to compare this to that 2006 bottle we originally
got. I get cocoa powder on this. I rather like it.”
Michelle Lentz, My Wine Education
“Terra Andina - like this one, blueberry liqour
with very slight hints of sauerkraut.”
Frank Morgan, Drink What YOU You Like
“Re-tasting the wines from the #winesofchile tasting to get better notes. Really digging the Terra Andina Altos the
more I explore it.”Tim Lemke, Cheap Wine
Ratings
“Thoroughly enjoyed the #WinesOfChile Carmenere tasting tonight. Great stuff. Value at all price points.”
Robert Dwyer, Wellesley Wine Press
“Not much twitter chat due to in-meeting Chat
session in the #winesofchile event, but
some impressive QPR going on right now in
these wines.” Joe Roberts, MS,
1WineDude
“Cono Sur Vision: sumptuous, going well with our guacamole, opening up nice. A favorite so far. rich
cherry now.” David Crowley, CookingChat
“I would LOVE a Sauvignon Blanc tasting!!!”
Megan Kenney, Wannabe Wino
“Chilean Wine ---- ROCKS!”
Amy Corron-Power, Another Wine Blog
“I really love what y’all got going on down
there.”Duane Pemberton,
WineFoot
“This was very well-organized and I learned so much! Really wonderful tasting and very comprehensive.”
Elizabeth Schneider, Wine for Normal People
Creating Buzz
BUZZ => SHARE OF MIND
What’s Hot in Online Buzz is also Hot in Sales
Key Learnings• This new online platform worked well, meeting all of Wines of Chile’s needs and
creating smooth interactions between all involved parties. However, the bloggers would prefer to have the audio stream through their computers rather than their phones, as several did not have a speaker phone available.
• The bloggers enjoyed more focusing on one varietal during the tasting. • The bloggers found it difficult to balance the video feed, phone, chat pod,
Twitter and the wine. Many cut out one of the chat elements in order to focus on the wine and the winemakers’ commentary.
• Bloggers want to be treated like traditional journalists and would prefer the more serious wine questions be relayed to the moderator in the future.
• Very cost efficient: US$30,000 each.
74
Screwcaps and New World Wines – a Marketing Innovation?
Charlotte Read – Villa Maria Estate, NZ
Presentation Outline
• Impact of Screwcaps• The Premise for screwcaps• History of screwcaps use in wine• The rapid spread of screwcaps – especially in
the New World• Does the use of screwcaps represent a
Marketing Innovation in the wine industry? • Looking forward to the future 75
Impact of Screwcaps
• The last 10 years has scene a revolution in wine closures, with the meteoric conversion to screwcaps.
• Global scewcap usage is today estimated at 2.5 billion (15% of total).
• “I believe wines bottled with cork will be in the minority by 2015” – Robert Parker, 2004
• “Wine personality of the decade? The screwcap.” Jaimie Goode, January 2010
76
Why Screwcaps?A picture says a thousand words
77
Screwcap Range of different Closures - 28 months after bottling
P. Godden AWRI
Why Screw Caps
78
Elimination of cork taint Elimination of random wine
oxidation Wines which taste fresher and
livelier Prolonged and controlled
ageing of both red and white wines
Consistency of ageing, from one bottle to the next
Convenience – easy to open Upright or lay down storage &
re-sealable for convenience Feel positive when pouring the
wine knowing it will be in pristine condition
Urban Myths• A cork is required for wine to develop and age properly• Screwcaps might be OK for wines you drink young, but • Great wines need corks to age• Wine needs to breathe and only a cork allows this• Screwcaps can cause reductive characters in the wine
THEY ARE ALL WRONG - LIBRARY OF WIDESPREAD EVIDENCE NOW AVAILABLE TO DISPEL MISCONCEPTIONS
79
Where did the screwcap revolution all begin?
The Beginnings
81
1889• Dan Rylands, UK patents screw cap
1913• Widespread use of screw cap in whiskey industry.
Late 1950s• Wine screw cap developed by French Manufacturer, La Bouchage Mecanique
now the registered trademark of Pea-Pechiney.
1970s• First commercial bottling with screw caps at Hammel Winery, Switzerland's• 1977 – some producers in Australia and New Zealand including Yalumba Wines
in Australia & I think Selaks in NZ adopt screwcap for some of their wines. This is not commercially successful
1999• Australian Wine Research Institute’s Closures Trial commences
Decade of the Screwcap
82
2000• Clare Valley Riesling vintage bottled under Screwcap.
“Riesling with a Twist” Campaign• Napa Valley’s Plumpjack release top red wine, 1997
Reserve Cabernet Sauvignon, under Screwcap.
2001• New Zealand Screwcap Initiative formed – 28 initial
members.
2002 • UK Supermarkets demand Screwcap closures. Tesco
launch “Unwind’ range/ campaign.• Villa Maria first major wine company to commit to
having 100% under screw cap.
2004• First international Screw Cap Symposium, Marlborough
NZ
Screw Caps Today
• Quoted in Decanter, March 2009 as 2.5 billion units - 14% of the 17.5 billion global wine market.
83
Synthetic Cork22%
Screwcaps14%Cork (incl its
derivatives)64%
2004 2004
100 million 100 million
2010 2010
Over 3 Billion Over 3 Billion
= A growth of 3 000 %= A growth of 3 000 %
Screwcap market
The consumer acceptanceThe consumer acceptance
The UK Market The consumer’s acceptance
Source: Wine Intelligence Consumer access 2003-2006
+37% in four years
+37% in four years
Highest percentage of screwcap market share
Our estimation for Chile : 40 % on the total volume of bottled wine
Our estimation for Chile : 40 % on the total volume of bottled wine
Why such a success in a short time period ?
Screwcaps are also benefiting of the recent evolution of the wine packaging
Screwcaps and New World Wines – to add figures for countries in red
• Percentage of wines under screwcap• New Zealand – 95% • California• South Africa• Chile• Argentina• Australia - approx 70%
90
New Zealand and Screwcaps• Such high uptake from New Zealand producers due to a number of
factors:
– History of innovative attitude (stainless steel, refrigeration canopy managements etc)
– Not bound by traditions/ legislation.– Collective approach - big and small producers– Willingness to include breadth of offering: red and
white/ all price points.– Signature variety of Sauvignon Blanc particularity suited
to screwcap, but quickly adopted for all varieties.
91
Not Just New World Producers
• New World countries driving this, but also estimated 1 billion sales from European wines Jamie Goode, Decanter March 2009
• 2002 Domaine Laroche, the first French producer to use screwcap on Grand Cru wines.
• In 2005, Burgundian négociant Jean-Claude Boisset announced its move to screwcaps in these words: "The tasting which triggered this off was that of a distinguished Mercurey 1966 closed by a screw cap, presented by a dignitary of the Chair of Oenology at the Université de Bourgogne…. It turned out that the wine had an absolutely fantastic freshness, great body, and was in superb condition."
92
Is the Screwcap a Marketing Innovation?
• Widespread introduction of the screwcap, driven by winemakers, seeking improved quality and reliability in their wine.
• Without 100% commitment to screw cap to guarantee quality Villa Maria could not remain true to its commitment to be New Zealand’s most awarded winery which is the centre point of its positioning
• However Michel Laroche back in 2004 stated that innovation is one thing. Transforming it into a reality that is widely accepted by the consumer is quite another...
93
Innovation in Marketing• Innovative Marketing strategies needed to overcome initial resistance from some
trade and consumers with regards to lower quality perception/ loss of ‘romance’.• Breadth of offering crucial – not just drink-now, lower priced wines - top quality
wines (red as well as white) offered. (VM along with other NZ wine producers started using screwcaps with our Reserve wines first rather than lower priced wines)
• Hit the influencers – use of comparative tastings crucial:– Media – “I didn't know it at the time, but I was about to experience one of the most profound
wine comparisons I have ever encountered”. Tyson Stelzer at comparative tasting for Felton Rd 2001 Pinot Noir in 2007
– Trade/ distributors – Sommeliers /restaurateurs - “ screw caps.. offer better freshness and overall quality”. Joelle
Marti, wine buyer Great Eastern Hotel, London
– Retail :supermarkets /independents
• Examples of how Villa targeted these audiences
94
95
Innovations in MarketingDevelop promotional campaigns/ educational tools
96
Insert some images from Villa screw Cap marketing materials
Is the job done?• Screwcaps are fully integrated in the New Zealand wine scene and there is
little or no discussion about it from any members of the initiative as they have moved well beyond requiring any collective support. It is well and truly in the commercial arena now for both NZ and Australian wines. John Belsham, Foxes Island Wines NZ, former chair of New Zealand Screwcap initiative
• Ever-increasing library of evidence to dispel any misconceptions re the inability of wines to age well under screwcaps.
97
In Summary....• Screwcaps use in the wine industry has been a dramatic and very positive
development over the past decade and the customer is getting a better quality wine – they are very unforgiving of clumsy wine making
• Will be great to observe wine consumers’ screw capped bottle aging expectations rise. As the wines—commercial and great, red and white—live longer and develop better in bottle
• For the millennial’s who are the wine drinkers of the future cork taint should be a thing of the past
• Cork producers will continue down their own path of innovation• The growth in the use of screwcaps has been rapid and will continue.
According to the world's best known wine critic, Robert Parker, wines bottled with corks will be in the minority by 2015
98