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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”

◦ Noah planted a vineyard and made wine ◦ Honey and grain older fermented crops than grapes, but nowhere near the social impact of wine

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Grape cultivation and wine drinking started possibly as early as 6000 BC ◦ Caspian Sea and in Mesopotamia, near presentday Iran ◦ Priests and royalty were using wine, while beer was drunk by the workers

source: http://www.winepros.org/wine101/history.htm

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

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)

U.S. Wine Market is 2nd Only To France

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

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

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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

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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 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

Franchisor Consumer Site

Franchisee Local Store Website

Site to Market Franchising

Franchisee Facebook Site

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

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

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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

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