1

Cal Poly Wines

Protégé Marketing

Chrystine Lee

Kirsten Sorensen

Kathryn Stucker

Kavita Chhotu

2

Objectives

To launch the Cal Poly Wine Club Survey results Co-marketing opportunities Member benefits

Events Discounts

Shipments

3

Background

By utilizing their rich viticulture program and agricultural school motto, “Learn By Doing,” Cal Poly is pleased to present their premiere wine release. With guidance from Baileyana Winery, students of Cal Poly have poured their heart and soul into creating the 2006 vintage.

4

Mission Statement

To create a successful wine club for Cal Poly Wines that is geared to keeping alumni in touch and satisfied. The limited production of wine allows members to feel unique and special.

5

Cal Poly Wine Story

Cal Poly houses an on-campus vineyard that is 12 planted acres in total. The vines are nurtured by professors and students alike.

The wine and viticulture program has recently become a major for the campus and these students will help launch and wines and increase wine quality.

6

The Rundown

Product: Pinot Noir, Chardonnay, & Zinfandel Wines

Size: 750ml

Pricing: $18-35

Launch Date: Homecoming 2007

7

Current Trends

Barbara Insel, Managing Director of Research at MKF Research in St. Helena stated, “Wine consumption is gaining among all generational segments, led by Baby Boomers, with more interest not only by women, but men and nearly all ethnic groups and regions.”

Wine Institute: The Voice for California Wine

8

Baby Boomers

Born 1946 – 1964 78.2 million of U.S. population Entering retirement

While the boomers represent the largest segment of the market, they are growing older, must also be able to market to the emerging younger market

9

Echo Boomers

Aged 21-30 years Approximately 28 million people of U.S.

population Wine sales grew in this demographic Wine manufacturers have major upside

potential with products and packaging that appeal to this market

IRI Times & Trends

10

Current Trends

California wines have begun to dominate the “premium” wines market (wines price $15 and above) Considered an “affordable luxury”, and

California accounts for 85% of the total US market of premium wines. (David Colker, LA Times)

11

Current Sales

California wine sales in the U.S. reached another record high of 441 million gallons (185.4 million nine-liter cases) in 2005 with a retail value of $16.5 billion According to wine industry consultant

Jon Fredrikson of Woodside and publisher of the Gomberg-Fredrikson Report.

12

Current Sales

Overall positive growth trend of wine in the US (especially California) Due to positive image from

consumers, media, government in recent years, wine consumption on the upswing.

13

Seasonality, Dynamics

Benefits of wine market: wine is always in season, with peaks in sales around the holidays, and in May/June for graduations

Wine sales have more than doubled in the last 10 years $11.5 billion in 1994 compared with

$23.2 billion in 2004 (Wine Institute, Department of Commerce: April 5, 2005)

14

Seasonality

Wine Sales in the U.S.

0.0

5.0

10.0

15.0

20.0

25.0

30.0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

Reta

il V

alu

e (

Bil

lion

s)

15

Demographics

"Wine consumption in United States on the rise in the last year: increased 5.2% to 2.98 gallons per adult" (United Press International, Sept 8, 2005)

Women pass men as leading purchasers of wine: 55% of wine purchases (Gallup Poll, September 12, 2005)

16

Wine Club Survey

This survey was conducted throughout the Central Coast and distributed to all the wineries in Paso Robles and San Luis Obispo.

The results are from forty-two various wineries.

The size of the responding wineries vary from less than 1000 cases annually to over 100,000 cases annually.

17

Survey Results-Production

When asked how many cases of wine does the winery produce annually, the majority of respondents answered 1001-5000 cases.

Cases Produced

1000 or less

1001-5000

5001-10,000

10,001-70,000

70,001-99,999

100,000 or more

18

Survey Results-Varietals

When asked how many varietals does your winery produce, the majority of respondents answered that their winery produces 6-10 varietals.

Varietals Produced

0%

5%

10%

15%

20%

25%

30%

35%

40%

1-5 6-10 11-15 16-20 20+

Number of Varietals

Perc

enta

ge R

espo

nse

19

Survey Results-Shipments

When asked how many shipments go out per year through your wine club, the majority of respondents answered 1-3 shipments per year.

Shipments Per Year

4-6

34%

1-3

54%

7-9

7%

10-12

5%

20

Survey Results-Shipment Additions

When asked if the wine club shipments included anything but wine in them, the majority of respondents answered that they also included newsletters.

Included RankingNewsletter 1Recipes 2Food Pairing Guides 3Special Gift 4

21

Survey Results-Promotional Sales

When asked what percentage of your promotional budget is allocated for wine club membership sales, the majority of respondents answered 0-5 percent.

Promotional Sales

0%

5%

10%

15%

20%

25%

30%

35%

40%

0-5% 6-10% 11-15% 16-20% 20%+

Percent of Budget

Per

cen

t R

espon

se

22

Survey Results-Number of Wine Clubs

When asked how many different wine clubs do you offer, the majority of respondents have one wine club.

Number of Wine Clubs

1

2

3

4

56+

23

Survey Results-Advertising

When asked how do you advertise your wine club, the majority of respondents answered by giving brochures to customers.

Advertising Methods Percentage Response Brochures given to customers 90% Booths at wine festivals 70%Email 62.5%Print Ads 22.5%Other: Website, Tasting Room Staff 17.5% Radio Ads 2.5%

24

Brochures Given To Customers

■ Brochures are a great way to introduce potential club members to the wine.

■ An effective way to communicate wine club benefits

25

Booth At Wine Festivals

This is ample opportunity for Cal Poly wines to market their wine and allow for tasting.

26

Email

Cost efficient way of keeping club members in touch in regards to: Events Releases Recipes

27

Website

Another effective way to give background information on: History of the wine Member benefits Pricing

28

Survey Results-Events

When asked do you hold special events for wine club members, the majority of respondents said yes. Hold Special Events Percentage Response

Yes 87.8%No 12.2%

Yes

No

29

Survey Results-EventsWhen asked what types of special events are held for club members, the majority of respondents answered that they hold BBQs, wine maker’s dinner, and food and wine pairing events.

Events

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BBQs Trips WineMaker’sDinner

Food andWine

Pairings

EducationalWine

Courses

HolidayParties

Other

Member Special Events

Perc

en

tage R

esp

on

se

*Other: Special discount weekends and shipment pick up parties,

30

Survey Results-Shipment Price

When asked how much the average wine club shipment is, the majority of respondents answered between $50-$99.

Shipment Price

0%

5%

10%

15%

20%

25%

30%

35%

40%

$49 or less $50-$99 $100-$149 $150+

Average Shipment Price

Perc

enta

ge R

espo

nse

31

Survey Results-Communication

When asked what is the best way to communicate with members, the majority of respondents answered through email.

Email 77.5%

Newsletter 12.5%

Phone 10%

32

Survey Results-Wine Club Goals When asked what is the main goal for

your wine club, respondents answered:

“To reward supporters with limited-production wines, as well as better discounts than 'regular' customers.”

“To have a limited number of members. We want to be able to make our club special and intimate.”

33

Survey Results-Wine Club Goals

“To promote our wines through loyal customers. If a member likes being in Club Edna and enjoys our wines and experiences that we offer, they are more likely to buy our wine and get their friends to join. Bottom line... sell more wine!”

34

Survey Results-Wine Club Improvements When asked what aspects of your wine club do

you feel need improvement, respondents answered: “More personal attention....we are so busy...I

would like to have personal time to get to know more members on a one-and-one basis.”

“To organize more and better events.”

“More marketing attention. We are a little too soft sell.”

35

Survey Results-Areas of Excellence When asked what aspects of your wine club do

you excel in, respondents answered:

“Creating one on one relationship between members and winemaker/winery. They feel that they are part of the team and hold a place in the winery.”

“SERVICE! - we try to accommodate the needs of our members. Shipping is included for wine club members.”

“I feel we make friends with our club members and make them feel special.....part of the family feeling.”

36

Survey Results-Areas of Excellence

“Creating value for our customers and being very serious about customer service.”

“Communication and exceeding expectations of wine quality.”

“Customer service is key... we provide a top quality wine for an affordable price, top quality service (service with a smile) the customer is always right, knowledge of the product, and direct access of questions to the winemaker.”

37

CP Wine Club Intention

To promote the wines, and to allow our customers to experience new wines.

38

Suppliers

We will be depending on Orcutt Cellars for packing and shipping needs As well as the Cal Poly University as

vendors of the product

39

Shipments

4 shipments per year 3 bottles in each shipment (one of each) Themed shipments with Cal Poly Products

Chocolate for February Organic fruit for May Cheese for August Jam for November

40

Recommendation

We recommend that you offer potential club members the opportunity to taste the wine.

10% of total wine reserved for promotional wine purposes (120 bottles)

Potential members can sample wine prior to signing up.

41

Events for Reserve Tasting

Homecoming Open House Cal Poly Wine Festival

April 28, 2007 Annual Roll Out the Barrels

Weekend May 5, 2007

2007 Paso Robles Wine Festival May 19, 2007

42

Target Market

Cal Poly Alumni Current Staff Parents of Students

43

Characteristics of Target Market

Middle to Upper-Middle Class ($60,000+) Extra income to spend on premium to

upscale wines Cal Poly College Graduates Age: 30+ years old Total spending: $10-20 per bottle Staying apart of the Cal Poly family

44

Advertise until the first vintage is released

Communicate the perks of the club Offer wine club sign up incentives

allowing potential member to feel like it is worth the investment

Market Strategies

45

Market Strategies: Advertising

■ Cal Poly Events

■ Farmers Market-Special Events

■ Newsletters

■ Email

46

How to promote CP Wine Club

Cal Poly Magazine

SLO Tribune

Homecoming

Mustang DailyFarmers

47

Homecoming

Homecoming booth: 1,000 Pouring rights: 500

Total: $1,500

Shaun Russell Director of Marketing

& Corporate Relations Cal Poly

Athletics

48

Cal Poly Magazine

Reaches alumni, as well as parents of current students

49

Mustang Daily

Would reach current students (who are of age!) as well as faculty who might be interested in joining a wine club and supporting Cal Poly

50

SLO Tribune

Reaches locals who might be interested in joining a wine club, and by doing so, supporting the efforts of students and faculty who supplement San Luis Obispo’s economy

51

Farmer’s Market

Promotion at Farmer’s Market would include wine tasting and distribution of wine club brochures, and would reach locals and current students

52

Communicating brand strategy is key to a great brand name.

Market Strategies: Branding

53

Market Strategies: Branding

Cal Poly is synonymous with excellence

Create brand recognition Education “Learn By Doing” Nostalgic

54

Market Strategies: Promotion

Wine Club Members will receive

Discounts on other Cal Poly agriculture products

Cal Poly Wine Club Special Events

Alumni networking

55

Pricing

Zinfandel - $18

Chardonnay - $25

Pinot Noir - $35

*Prices were previously set by Wine Club coordinator

56

Our pricing per shipment

Total for varietals: $78.00 Cal Poly Cheese

Blue & Gold Special $ 22.00 Shipping charges within

California: $ 8.50 Outside of California depends

on state

Total: $ 108.50

57

Pre-Launch Budget

Homecoming booth 1,500 Brochures: 5000 350 4 x 6 handouts: 2000 150 Magazine & Newspaper

Total: $2,020+

58

Potential Club Names

CP Wine ClubMustang Corral Mustang Wine ClubPoly Wines Stang Gang

59

What Now?

Create an appealing namePromote! Promote! Promote!