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An Integrated Marketing Success Storyin an 8,000-year-old Industry
Denise Stillman
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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
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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
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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)
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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
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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
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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
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Franchisor Consumer SiteFranchisor Consumer Site
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Franchisee Local Store Franchisee Local Store WebsiteWebsite
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Site to Market FranchisingSite to Market Franchising
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Franchisee Facebook SiteFranchisee Facebook Site
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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
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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
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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