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An Integrated Marketing Success Story in an 8,000­year­old 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 blind­tasted 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, hard­to­find wines from small and large vineyards all over the world ◦ Up to 150 revolving world­class 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 2004­09 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 mass­merchandise 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 Pre­May 2009 Marketing Mix

◦www.winestyles.net ◦www.winestyles.com.mx ◦www.winefranchise.net ◦On­premise marketing (100+ franchise stores) ◦Weekly e­mail 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 opt­in 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, college­educated

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