Premium Branding and Targeted Marketing
I try to spend time occasionally researching wine consumption and how those trends affect the industry. Along that line, a couple of media items came to my attention this week. This article published by Beverage Dynamics on current wine trends at – https://bit.ly/2JZ1cjp and the NPR Radio program regarding the history of Grey Goose brand Vodka and Jagermeister brand liqueur at – https://n.pr/2Fk3ZEg. Take a look for some background, or just follow along below. I will do my best to take you through the impressions this left with me that caused my view of wine marketing to veer in a very different direction.
2017 Wine Trends
This Beverage Dynamics piece lists: the largest selling wine labels in U.S. by volume, their growth in the last year and the fastest growing labels coming up. So, I am reading through this piece and it occurs to me – with over a 600 bottle personal cellar, I don’t have one bottle of any of the labels mentioned. Not one! Why is that? I am sure some of these are decent daily-drinking wine. Not everything in our cellar is expensive wine. Why hadn’t I found one of these as a daily-drinker for my enjoyment? Had me thinking. Then I listened to this radio program…
Guerrilla Marketing & Beverage Industry
It appears Sidney Franks (of Grey Goose Vodka fame) was the original mastermind behind the concept of “guerrilla marketing” in the premium beverage business. Relative to the Jagermeister brand, he took a product enjoyed in the USA by old German guys, and gave it a new hip, young and fresh make-over. This very successful re-branding effort was accomplished by sending out young, trendy brand ambassadors to college bars to promote the product face-to-face. Wow! Grass-roots demand generation from the ground up! It is hard to believe such a simple idea built a brand in U.S. with over $500M+ in revenue.
Hang in there with me… So, I am thinking about the wine labels from the Beverage Dynamics piece and I realize, I can’t remember a single piece of advertising regarding these brands! Broadly distributed, high-volume labels don’t register on my radar. Not because I am a snob, just because these wines tend to be homogenized. All much alike – very drinkable, but without much character. I tend to tune out products that I don’t believe will be of interest… there it is: “will be of interest”. How does my brain decide what wine information should be filtered out? Even more interesting, what would it take to grab and hold my interest? Fodder for another piece down the road…
It took me over ten years to find a group of guys that collect classic premium wines in the Phoenix Metro area. It always struck me, why was that so difficult? What organization in the wine industry identifies the individual market segments and brings like-minded consumers together? I was thinking at least one producer would attempt to do this to promote their product and build demand. Nope. Nada. Nothing. How is that possible? I did find an organization a couple of years ago that I thought might be the answer: the American Wine Society, or AWS (http://www.americanwinesociety.org/). It didn’t work out at the time. The chapters in my area were focused on typical, easy drinking, lower price wines. After some investigation, I just lost interest. Then recently I ran into Jay Bileti (an officer at AWS) and he “listened”. The net result was gleaning out of the current membership a few folks whose interests leaned in this direction. Voila!, we had a wine collector’s tasting group. The point is: where is the industry involvement? It is becoming increasingly clear as the baby-boomer generation ages, marketing must become more focused, target specific price categories and connect with consumer interests. Implementing a little of that “Guerrilla” thinking and investing in filling this gap would have a huge impact on label/brand awareness. Add a few smart folks to the mix and you would have the next great Sidney Franks-like story in the wine business!
Wineries & Marketing Investment
The first simple idea would be for wine producers/marketing reps to reach out to consumer organizations like AWS. No, not the way it is done now, but to invest in surveying wine enthusiasts to identify consumer market segments, categorize interests, separate price categories, build palate profiles and associated taste models. THEN, provide services to connect individuals. The best marketing ideas build a COMMUNITY! This is where brand loyalty begins. Right now, none are willing to invest this way, because there is no vision for how to monetize it. This has to be the future for premium brand wine marketing as Boomers age. Just holding local wine tastings and wine dinners is not the full answer. I wonder, what would it take for a few producers to embrace this idea?
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