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
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
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 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
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