strategies for selling wines in the next decade
TRANSCRIPT
No Slide TitleJane Baxter Lynn
FOR OUR DISCUSSION
• Strengths, weaknesses, opportunities and threats potentially facing your industry
• Possible strategies for getting yourselves heard
• Some of the tools available to achieve your goals.
THE ESSENTIALS
• Quality
• Focus
• Planning
• Vision
SWOT ANALYSIS
• Strengths
• Weaknesses
• Opportunities
• Threats
5
Strategies for selling Ohio wine in the next decade
STRENGTHS A “strength” is any existing or potential internal resource or capability
• Diverse offerings to suit a wide range of palates* • Since the 1990s Ohio has made good strides in terms of building respect among the
wine community – the goal now must be to get to the consumer • Award winning wines in the different categories • Proactive industry association and support from the Department of Agriculture, through
the Grape Industries Committee, and from the various tourism industry organizations like your CVBs
• Long history of leading the US wine industry • Wine tourism is already strong in your state • Sense of pride in the Ohio community for local products – they really want you to do
well.
6
Strategies for selling Ohio wine in the next decade
WEAKNESSES A “weakness” is any existing or potential internal force which presents a barrier or constraint
• The misperception that Ohio wines are not good quality
• The notion that there isn’t enough wine produced to make it worth carrying for a distributor
• Unfamiliarity of varietal names to the general public can make selling some of the wines a harder sell
• Internal competition between producers of the various styles of wine
• Limited cash flow for marketing and advertising activities, particularly for the smaller wineries - cost of marketing vs. return on investment
• Need for greater support from state government, both in terms of legislation and funding to enable wine growers to be more competitive and run as businesses
• Lack of awareness of programs available for marketing purposes.
7
OPPORTUNITIES Existing or potential forces in the external environment that, if properly exploited, present “opportunities” to gaining a favorable competitive position
• Growing credibility in the US for cool climate wines • Development of the internet for online wine sales, potentially reducing overhead costs • Changing legislation related to inter-state shipping opening up new markets • The national move towards ‘local’ and ‘sustainable’ - Ohio Proud & Our Ohio programs • Growing interest in environmental preservation and a greater understanding of the wine
industry’s role • Lifestyle trend towards younger people in the US enjoying wine, who typically start on
sweeter wine • Rapid growth in rural and “experiential” (not just going there but experiencing the place)
tourism • US is the largest relatively untapped and growing wine market globally.
8
Strategies for selling Ohio wine in the next decade
THREATS Existing or potential forces in the external environment that, if ignored, become “threats” to losing a favorable competitive position
• Competition from expanding number of wineries in the US, particularly in the small to mid-size range
• Increased competition from overseas wine producers looking for new markets as domestic markets saturate and wine sales in traditional markets decline
• Wines in all markets face pricing pressures and price erosion
• Producers who are not committed to Quality
• Urban/bedroom community spread from major centers threatening availability of land for vineyards and raising land costs.
KEY POINTS TO BE ADDRESSED:
9
• Convincing people why they should drink Ohio wine
• How you can capitalize on working together and developing strategic partnerships
• Importance of an integrated message and a sense of partnership among the players
• How you can change the perception that Ohio wine is not good? Reality vs perception of quality?
Strategies for selling Ohio wine in the next decade
TOP TEN STRATEGIES:
10
1. Have a Plan 2. Capitalize on market trends 3. Focus on branding 4. Define your key messages 5. Create demand 6. Utilize new media 7. Use tourism as a tool 8. Coordinate marketing and sales efforts 9. Identify and work with strategic partners 10. Believe in yourselves and what you have to offer.
Strategies for selling Ohio wine in the next decade
HAVE A PLAN
• Decide on your business model
• Select distribution channel or channels
• Set realistic goals and outline actions to achieve them
• Identify your target markets and define your audiences - examples
• Develop your sales and marketing strategies based on your business model and target markets and audiences
• Outline tactics (actions) to implement strategies
• Establish a budget link
TARGET MARKETS (geographic areas)
Strategies for selling Ohio wine in the next decade
i. 30-40 mile radius of your winery ii. Rest of Ohio:
Primary = Columbus, Cincinnati and Cleveland Secondary = Akron, Canton, Deyton, Toledo, Youngstown
iii. Other east coast states – Michigan, New York, Pennsylvania (Pittsburgh), West Virginia
iv. Kentucky and Indiana v. Rest of US vi. International (for larger producers - adds credibility for all)
Strategies for selling Ohio wine in the next decade
TARGET AUDIENCES (groups of people)
• Consumers: – Primarily female; 25-60; above average income; relies on internet for information
and shops on-line; typically makes tourism buying decisions; drinks to enjoy it, not to impress; wants approachable wine; sees wine as a healthy alternative to beer and hard liquor; not looking for ‘cheap’ wine, prepared to pay $18-25 per bottle
– The Millennials, born after 1980 - most sought after group in America today – New wine drinkers - grew up on sweet non-alcoholic drinks, attracted to sweet
wines when they first begin drinking wine
• Media - local, regional, national, international, trade; print, broadcast (TV & radio), on- line, cell phones
• Sales organizations like distributors, online retailers etc. for larger producers
• Local restaurants prepared to support local wines and educate consumers through wine by the glass programs
• Wine educators
13 Back
14
• Consumption of wine is rising steadily in this country and according to the MKF 2007 wine industry report this is due to five underlying trends:
a. Demographics - public more wine-friendly; more men; Millenials b. Consumer values changing - dining in groups; prepared to explore new
products c. Retailers expanding variety and quality of their offerings d. Restaurants using wine as major marketing and business generation tool e. Health effects – health benefits of grapes
• The increasing movement toward “Buying Local”
Strategies for selling Ohio wine in the next decade
FOCUS ON BRANDING
• Branding creates a sense of place, and generic branding programs are becoming increasingly important to the wine and wine grape business
• Develop an identity for your business that tells people who you are and what your wine means to you. This encompasses your labels, marketing materials, sales collateral, web site, signage and even ‘uniforms’, winery architecture, truck livery and more
• Participate in state branding programs to build recognition of the industry as a whole and capitalize on the Department’s marketing dollars.
15
16
Consistent Image
16
The new campaign is designed to increase consumer awareness, drive sales for Washington State's world class wines and promote tourism throughout the state's wine country.
DEFINE YOUR KEY MESSAGES
• Define who you are, what your wines are, and what makes them special
• Develop standard messages
17
ELEMENTS FOR A SUCCESSFUL SALES STRATEGY
• Demand creation
• Demand fulfillment
CREATE DEMAND
• Guerilla marketing
20
• Government and association use of Ohio wine.
21
DEMAND FULFILLMENT
• Database development
• Frequent communications
UTILIZE NEW MEDIA
23
24
25
USE TOURISM AS A TOOL
• Agricultural, culinary and wine tourism in the US is growing rapidly as America’s new “experiential” consumer evolves
• In the US there is a growing trend of people taking shorter holidays, closer to home
• Targeting tourism is a relatively cost effective way of using new media and developing new audiences.
• Department of Agriculture is committed to agri-tourism with wine leading the way.
26
COORDINATE MARKETING & SALES ACTIVITIES
• “Rising tides raise all boats”
• Raise awareness of and credibility for the region to support individual winery efforts
• Numerous opportunities to work together -
a. Paced campaign of education and awareness to convince local community of local wine’s quality
b. Establishment and expansion of wine trail programs through OWPA to bring new customers into the wineries
c. Targeted tastings and media presentations d. Participate in existing tasting opportunities e. Pitching to supermarkets to have dedicated ‘Local’ wine section f. Enter more competitions that are open to various varietals, styles and types of wine
in order to get more national recognition and reputation based sales at the wineries g. Restaurant promotions and high profile events.
Strategies for selling Ohio wine in the next decade
IDENTIFY & CAPITALIZE ON STRATEGIC PARTNERSHIPS
• Develop joint marketing programs with the State and regional Farm Bureaus, state restaurant and tourism bodies and other agriculture-related industry programs
• Involve local, regional and trade media in sponsorship of promotional events
• Include wine media and wine educators in your process as partners not combatants
• Develop partnerships within the local community through business and service clubs and other related organizations
28
BELIEVE IN YOURSELVES
• Believe in the uniqueness of your region
• Get the word out that there is quality wine of diverse styles in Ohio
29
IN SUMMARY
• Have a plan
• Develop repeat business
• Above all, have ATTITUDE!
Ohio wine!
You’ve convinced me ….
FOR OUR DISCUSSION
• Strengths, weaknesses, opportunities and threats potentially facing your industry
• Possible strategies for getting yourselves heard
• Some of the tools available to achieve your goals.
THE ESSENTIALS
• Quality
• Focus
• Planning
• Vision
SWOT ANALYSIS
• Strengths
• Weaknesses
• Opportunities
• Threats
5
Strategies for selling Ohio wine in the next decade
STRENGTHS A “strength” is any existing or potential internal resource or capability
• Diverse offerings to suit a wide range of palates* • Since the 1990s Ohio has made good strides in terms of building respect among the
wine community – the goal now must be to get to the consumer • Award winning wines in the different categories • Proactive industry association and support from the Department of Agriculture, through
the Grape Industries Committee, and from the various tourism industry organizations like your CVBs
• Long history of leading the US wine industry • Wine tourism is already strong in your state • Sense of pride in the Ohio community for local products – they really want you to do
well.
6
Strategies for selling Ohio wine in the next decade
WEAKNESSES A “weakness” is any existing or potential internal force which presents a barrier or constraint
• The misperception that Ohio wines are not good quality
• The notion that there isn’t enough wine produced to make it worth carrying for a distributor
• Unfamiliarity of varietal names to the general public can make selling some of the wines a harder sell
• Internal competition between producers of the various styles of wine
• Limited cash flow for marketing and advertising activities, particularly for the smaller wineries - cost of marketing vs. return on investment
• Need for greater support from state government, both in terms of legislation and funding to enable wine growers to be more competitive and run as businesses
• Lack of awareness of programs available for marketing purposes.
7
OPPORTUNITIES Existing or potential forces in the external environment that, if properly exploited, present “opportunities” to gaining a favorable competitive position
• Growing credibility in the US for cool climate wines • Development of the internet for online wine sales, potentially reducing overhead costs • Changing legislation related to inter-state shipping opening up new markets • The national move towards ‘local’ and ‘sustainable’ - Ohio Proud & Our Ohio programs • Growing interest in environmental preservation and a greater understanding of the wine
industry’s role • Lifestyle trend towards younger people in the US enjoying wine, who typically start on
sweeter wine • Rapid growth in rural and “experiential” (not just going there but experiencing the place)
tourism • US is the largest relatively untapped and growing wine market globally.
8
Strategies for selling Ohio wine in the next decade
THREATS Existing or potential forces in the external environment that, if ignored, become “threats” to losing a favorable competitive position
• Competition from expanding number of wineries in the US, particularly in the small to mid-size range
• Increased competition from overseas wine producers looking for new markets as domestic markets saturate and wine sales in traditional markets decline
• Wines in all markets face pricing pressures and price erosion
• Producers who are not committed to Quality
• Urban/bedroom community spread from major centers threatening availability of land for vineyards and raising land costs.
KEY POINTS TO BE ADDRESSED:
9
• Convincing people why they should drink Ohio wine
• How you can capitalize on working together and developing strategic partnerships
• Importance of an integrated message and a sense of partnership among the players
• How you can change the perception that Ohio wine is not good? Reality vs perception of quality?
Strategies for selling Ohio wine in the next decade
TOP TEN STRATEGIES:
10
1. Have a Plan 2. Capitalize on market trends 3. Focus on branding 4. Define your key messages 5. Create demand 6. Utilize new media 7. Use tourism as a tool 8. Coordinate marketing and sales efforts 9. Identify and work with strategic partners 10. Believe in yourselves and what you have to offer.
Strategies for selling Ohio wine in the next decade
HAVE A PLAN
• Decide on your business model
• Select distribution channel or channels
• Set realistic goals and outline actions to achieve them
• Identify your target markets and define your audiences - examples
• Develop your sales and marketing strategies based on your business model and target markets and audiences
• Outline tactics (actions) to implement strategies
• Establish a budget link
TARGET MARKETS (geographic areas)
Strategies for selling Ohio wine in the next decade
i. 30-40 mile radius of your winery ii. Rest of Ohio:
Primary = Columbus, Cincinnati and Cleveland Secondary = Akron, Canton, Deyton, Toledo, Youngstown
iii. Other east coast states – Michigan, New York, Pennsylvania (Pittsburgh), West Virginia
iv. Kentucky and Indiana v. Rest of US vi. International (for larger producers - adds credibility for all)
Strategies for selling Ohio wine in the next decade
TARGET AUDIENCES (groups of people)
• Consumers: – Primarily female; 25-60; above average income; relies on internet for information
and shops on-line; typically makes tourism buying decisions; drinks to enjoy it, not to impress; wants approachable wine; sees wine as a healthy alternative to beer and hard liquor; not looking for ‘cheap’ wine, prepared to pay $18-25 per bottle
– The Millennials, born after 1980 - most sought after group in America today – New wine drinkers - grew up on sweet non-alcoholic drinks, attracted to sweet
wines when they first begin drinking wine
• Media - local, regional, national, international, trade; print, broadcast (TV & radio), on- line, cell phones
• Sales organizations like distributors, online retailers etc. for larger producers
• Local restaurants prepared to support local wines and educate consumers through wine by the glass programs
• Wine educators
13 Back
14
• Consumption of wine is rising steadily in this country and according to the MKF 2007 wine industry report this is due to five underlying trends:
a. Demographics - public more wine-friendly; more men; Millenials b. Consumer values changing - dining in groups; prepared to explore new
products c. Retailers expanding variety and quality of their offerings d. Restaurants using wine as major marketing and business generation tool e. Health effects – health benefits of grapes
• The increasing movement toward “Buying Local”
Strategies for selling Ohio wine in the next decade
FOCUS ON BRANDING
• Branding creates a sense of place, and generic branding programs are becoming increasingly important to the wine and wine grape business
• Develop an identity for your business that tells people who you are and what your wine means to you. This encompasses your labels, marketing materials, sales collateral, web site, signage and even ‘uniforms’, winery architecture, truck livery and more
• Participate in state branding programs to build recognition of the industry as a whole and capitalize on the Department’s marketing dollars.
15
16
Consistent Image
16
The new campaign is designed to increase consumer awareness, drive sales for Washington State's world class wines and promote tourism throughout the state's wine country.
DEFINE YOUR KEY MESSAGES
• Define who you are, what your wines are, and what makes them special
• Develop standard messages
17
ELEMENTS FOR A SUCCESSFUL SALES STRATEGY
• Demand creation
• Demand fulfillment
CREATE DEMAND
• Guerilla marketing
20
• Government and association use of Ohio wine.
21
DEMAND FULFILLMENT
• Database development
• Frequent communications
UTILIZE NEW MEDIA
23
24
25
USE TOURISM AS A TOOL
• Agricultural, culinary and wine tourism in the US is growing rapidly as America’s new “experiential” consumer evolves
• In the US there is a growing trend of people taking shorter holidays, closer to home
• Targeting tourism is a relatively cost effective way of using new media and developing new audiences.
• Department of Agriculture is committed to agri-tourism with wine leading the way.
26
COORDINATE MARKETING & SALES ACTIVITIES
• “Rising tides raise all boats”
• Raise awareness of and credibility for the region to support individual winery efforts
• Numerous opportunities to work together -
a. Paced campaign of education and awareness to convince local community of local wine’s quality
b. Establishment and expansion of wine trail programs through OWPA to bring new customers into the wineries
c. Targeted tastings and media presentations d. Participate in existing tasting opportunities e. Pitching to supermarkets to have dedicated ‘Local’ wine section f. Enter more competitions that are open to various varietals, styles and types of wine
in order to get more national recognition and reputation based sales at the wineries g. Restaurant promotions and high profile events.
Strategies for selling Ohio wine in the next decade
IDENTIFY & CAPITALIZE ON STRATEGIC PARTNERSHIPS
• Develop joint marketing programs with the State and regional Farm Bureaus, state restaurant and tourism bodies and other agriculture-related industry programs
• Involve local, regional and trade media in sponsorship of promotional events
• Include wine media and wine educators in your process as partners not combatants
• Develop partnerships within the local community through business and service clubs and other related organizations
28
BELIEVE IN YOURSELVES
• Believe in the uniqueness of your region
• Get the word out that there is quality wine of diverse styles in Ohio
29
IN SUMMARY
• Have a plan
• Develop repeat business
• Above all, have ATTITUDE!
Ohio wine!
You’ve convinced me ….