How Social Media has Changed the Game for Wine and Winery

Promotion in the US.

Agenda

• Who is this guy and why should I listen to him?

• U.S. Bev. Alc history lesson• U.S. Wine market snapshot and why

Millennials matter.• Social Media Marketing: Theory and

Practice

BAT Social Media Team

Theory Practice

Marketing consulting company with specialization in beverage alcohol marketing

–Three “Sweet Spots”:• US Brand Development and Launch• Social Media Marketing• Trade Communications

What is Brand Action Team?

The Companies We Keep

Agenda

• Who is this guy and why should I listen to him?

• U.S. “Bev. Alc.” history lesson

U.S. Market: Laws Made in 1933

PRODUCER(Wineries, Brewers, Distilleries, Importers)

Wholesaler (Distributor)

Retailer

Consumer

U.S. Three Tier System

U.S. “Control” States for Wine

Michigan

Virginia

No. Carolina

Alabama

Arkansas

Iowa

Colorado

Wyoming

Montana New Hampshire

and Vermont Maine

OhioPennsylvania

W. Va.

IdahoOregon

50 States, 50 Different Markets

Retail Outlet Differences• Supermarket/grocery/drug,

Liquor Stores selling beer, wine , and/or spirits, Convenience stores

Off Premise Sale• Sunday sales (8 states still

prohibit)• In store tastings (10 states

prohibit)

Promotion & Merchandising• Discounts, consumer refunds,

sweepstakes, gift sets / combo packs highly regulated and restricted

Agenda

• Who is this guy and why should I listen to him?

• U.S. “Bev. Alc.” history lesson• U.S. Wine market snapshot and why

Millennials matter

Snapshots of the American Market

Identifying the Target Consumer

Identifying the Target Consumer

Identifying the Target Consumer

Why They Buy

Why They Buy

Direct to Consumer Wine Sales, 2010 vs. 2011 Increases

Source: Wines & Vines

Volume Value

9.3%

12.5%

Information They Seek

The King is Dead, Who…or What’s Next?

Type of Wine Marketing That Works with Millennials

Source: Sonoma State Univ. Study, 2009

Agenda

• Who is this guy and why should I listen to him?

• U.S. Bev. Alc history lesson• U.S. Wine market snapshot and why

Millennials matter.• Social Media Marketing: Theory and

Practice

Social Media MarketingWhat’s all the talk about “conversations”?

What is Social Media?

A fancy way to describe the zillions of conversations people are having online

24/7/365

It evolves SHOUTING into

conversations and communities

Turns a monologue into a dialog

It’s All About Engagement, Not Noise

Response from brand.

Contributions, but no conversation

Then another reader contributes to the conversation

The Web Won’t Do The Old Thing Better

The web is the worst medium ever devised

for interrupting people who don’t want to be interrupted

But it is the best medium for engaging

interested consumers in conversation.

The Game Has Changed

Traditional and SMM are Different

Traditional• One way

communication• With a disinterested

party• Whose attention you

have to get

• Creative = intrusion

SMM • Two-way

communication• With an interested

party• Who initiates the

conversation

• Creative = relevance

Old Model: Same message to everyone

Web 1.0: your audience can talk back

Now they’re connected to each other

And, the size of the network is the SQUARE of the # of participants

…so when it gets big it gets HUGE

SMM Myths and RealitiesIt’s optional, not necessary

Your customers and prospects expect you to engage them online…if you don’t they will consider you irrelevant.

It’s cheap if not freeMany of the tools are free to use, however knowing how to use them the right way

and strategically costs money.Anyone can do it

Doing it the wrong way can hurt, not help. Hire experienced, professional help.You can make a big splash in a short time

Maybe, if you’re really lucky. But generally it takes time to build credibility, and you need to commit for the long term.

You can do it all in-houseYou need strategy, contacts, tools and experience, plus the dedicated time of people

focused on it.If you do something great, people will find it

You have to actively build traffic, a voice, visibility and a maintain a presence. You can’t measure it

Everything is measurable online, and measurement should go beyond how well you’re doing and provide behavior-based insights on consumer needs and wants.

Adapted from: B.L. Ochman, Businessweek 2/19/09

Social Media ExplainedI need to pee

I peed

This is where I pee

Look at this pee

I’m good at peeing

Let’s all pee together

Social Media Strategy Simplified

On your Website

On the Web

Connect Consumers With Your Content

BlogsSites/Forums

Social Networks

E-Commerce

Fundamental Principles

Listening

Respect and Transparency

Engagement

Commitment

Listen First, Talk Second

“People can smell BS even across an oil-slicked gulf”

Gary Vaynerchuk

Respect Your Audience

It’s Not the # of Contacts, it’s the Depth of the Connections

Connections vs. ContactsEngagement Noise

• Facebook comments• Convos among commenters•Response time to comments

vs.Facebook fan

count

It’s Not the # of Contacts, it’s the Depth of the Connections

(The Chicken is Involved, but the Pig is Committed)

Commitment, not Involvement

1) Blogger and Site moderators post.

2) Passionate consumer reads the blog regularly and participates via comments.

3) Involved consumers read the posts

Interested Consumers

are influenced (Tens of Millions)

4) Passionates and Involved are the peer “experts” whom Interested consumers turn to for recommendations and advice.

Bloggers&

Sites/Forums

PassionateReaders

Participate(est. 1 Million)

Involved Readers Review(est. 10 Million)

How SMM Impact Expands

Neil Dorosin, www.brooklynguyloveswine.com

How Blog Outreach Impacts Traditional Media

BEFORE

Populating Curated Content

AFTER

Populating Curated Content

Populating Content

47

The Most Influential Wine Writer in America

48

Long Tail: Theory

Steve’s 5 SMM Rules of Engagement

1. Do your homework

2. Understand and follow the rules (written and unwritten)…be transparent

3. Identify what’s important to each outlet (ratings, reviews, food/wine pairings)

4. Join the conversation by contributing value not commercials.

5. Make it a lasting relationship

Let Them Know You Care

Hope is Not a Strategy

Metrics Matter

“I know half my advertising doesn’t work…I just don’t know which half”

Pure E-marketing/

Ecommerce

ROI

1 + 1 =

The Equation Has Changed

1 + 1 = 11

The Equation Has Changed

Print vs. Online?

Print vs. Online?

Wine Spectator

Wine Enthusiast

Wine Advocate

Snooth

WineSpectator.c

om

Vinography0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000Snooth reaches 5X more than Wine Spectator

Print vs. Online?

Wine Spectator

Wine Enthusiast

Wine Advocate

Snooth

WineSpectator.c

om

Vinography0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000Vinography reaches 2X more than The Wine Advocate

References• The Cluetrain Manifesto, Locke,

Wineberger et al.• The Long Tail, Free, Anderson• Join the Conversation, Jaffe• Now is Gone, Battelle• The Tipping Point, Gladwell• The Big Switch, Carr• Here Comes Everybody, Shirkey• New Rules of Marketing andPR, Scott

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Steve Raye

Contact:

Steve Raye, Managing PartnerBrand Action Team

1 Darling Dr.Avon, CT 06001 USA

+1-860-676-7900sraye@TheBrandActionTeam.com