An Integrated Marketing Success Storyin an 8,000-year-old Industry

Denise Stillman

Wine: Ancient Nectar of the Wine: Ancient Nectar of the EliteEliteEarliest 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

WineStylesWineStyles Brings Elite Brings Elite Nectar to the MassesNectar to the MassesFounded in 2002Inspired by a backyard barbeque

with friendsGuests 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

WineStylesWineStyles Simplifies, Simplifies, EducatesEducates

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)

U.S. Wine Market is 2U.S. Wine Market is 2ndnd Only To Only To FranceFrance

Sources: Recession Proof Remodel: The Wine Room,” www.prlog.com, February 20, 2009; 2008 Wine Handbook

WineStylesWineStyles Capitalizes on Capitalizes on Trends, Boosts Interest Trends, Boosts Interest Amidst RecessionAmidst 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

Online, Local Marketing Online, Local Marketing Helped Company GrowHelped Company GrowPre-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

Franchisor Consumer SiteFranchisor Consumer Site

Franchisee Local Store Franchisee Local Store WebsiteWebsite

Site to Market FranchisingSite to Market Franchising

Franchisee Facebook SiteFranchisee Facebook Site

Integrated Marketing Adds Integrated Marketing Adds Mass Media, Event MarketingMass 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

Integrated Marketing Integrated Marketing Approach Boosts Sales, Web Approach Boosts Sales, Web TrafficTrafficStore Sales

◦21% more transactions◦3% increase in dollar amount of avg

transaction◦Those stores not supported by TV saw 16%

fewer transactionsWeb 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

DANKË DANKË MERCI MERCI DANKE DANKE VELL VELL GRACIAS GRACIAS TACK TACK GRAZIA GRAZIA DANK U DANK U HVALA HVALA DÊKUJI DÊKUJI ACHIU ACHIU KIITOKSIA KIITOKSIA DZIEKUJE DZIEKUJE MULTUMESC MULTUMESC THANK THANK YOUYOU