A discussion about branding is generally not a discussion anticipated with excitement. If you're a marketing type it can be characterized as maybe interesting. But, promising many people an indepth discussion about them of wine branding; heck, we might have no one accepting an invitation to the dinner party. The truth is, creating a brandname image for wineries and wines might help the consumer to be smart buyers.

Because margins could be small for producers and a perponderance of producers are small, small margins impact the tiny producer profoundly. Branding could be expensive. Just what exactly can be achieved to entice consumers to here is another brand they have never heard about before? Now we're speaking about branding and it can be risky, despite having great planning. Further, it is a lot of compromising.

What impact did branding have on the last wine bottle you got? Did you purchase that wine because you knew some enticing fact in regards to the winery, winemaker or their wine making processes? Did you purchase a wine in relation to a friend's recommendation because they knew your preference for a specific varietal? Have your preferences for a wine changed over the past several years? Do you purchase your wine in relation to a random trial and found you liked that specific wine? Whatever the process you had in buying a wine you've been impacted, to some extent, by branding. If you only selected a wine in relation to its price or label design, branding was involved.

Recently, I experienced discussions concerning the process of business branding from a corporate perspective and a product perspective. Most of the emphases of these discussions have already been specific to the worthiness of branding a winery and their wines; predominately with small producers. Similar to everything in operation, decisions are generally in relation to compromises in budgets, approach, etc. Obviously, the product of a winery is bottles of various varietal wines which really are a disposable product that's consumed in relation to ever changing sensory perceptions--mostly taste. I submit that the juxtaposition in branding a winery and their products makes this discussion difficult. For example, many wines I like and buy frequently, I don't even know who produces them. Further, winery brands I recognize, some of the wines I don't like for various subjective reasons.

Point being, in many branding discussions associated with the wine industry become convoluted. Wineries produce multiple labels and these labels are put through consumer reviews that are based on innumerable personal influences. With so many variables, the job of presenting an optimistic image about a corporate winery brand is difficult.

All of us are influenced by branding to some extent, even minimally. For example, a couple of years ago Tide would stop sponsoring NASCAR races. Surprisingly, they discovered that Tide had a huge and loyal following with female NASCAR fans and Tide continues to be a sponsor. The brand had made a commitment and now wanted to improve it.

Another exemplory case of branding impact is Schlitz beer. In the late 1960's Schlitz decided to improve their formula for brewing their beer. Immediately they went from a top label, before Budweiser, to being virtually extinct. In 2008, they returned to their original formula of the 1960's, however the injury to a good brand was permanent.

These samples of powerful brands are obvious. In the event of Schlitz it shows how fragile a brandname could be if the consumer is betrayed. However, wine is not a large market product (like beer) that's as ubiquitous as beer or a laundry detergent. In comparison to wine, consumers do not build beer cellars in their home and collect beer. So, wine is just a very unique product that's expensive to brand on a per customer basis (this is especially true when consumers understand the discounting needed for distributors to market and promote a tag (discounting is area of the branding strategy).

The demographics for the wine market are broken into 5 segments with some under 21 years old in the millennial category. That is based on a Wines and Vines Newsletter. The biggest segment of wine drinkers will be the millennia's and Generation xers making up 70% of the 5 market segments (Baby Boomers included). Wine Business Monthly estimates 1 of 4 drinking consumers do not drink wine but prefer beer or spirits. Of the 130 million adult populations it's estimated 35% drink some wine, based on Live Science. This illustrates the finite size of industry and the precision required in branding to work in creating a consumer's perception of a corporate winery brand.

With this discussion on winery branding, Wines and Vines tells us that the typical price of a wine bottle keeps inching up and is currently approximately $12. The real sweet spot is in the $10-15 per bottle range. When a winery discusses the expense of raw materials, marketing, packaging, sales/discounting and facilities and G/A the margins are restrictive when planning a new or improved branding program. Wineries in this position need volume and a 5,000 case run makes branding challenging, but not impossible.

Using the best information available for this discussion, we assume you can find about 44% of the populations who do not drink any alcoholic beverages. Based upon population distribution within the 5 demographic segments you can find approximately 65 million people who drink some wine at the least monthly. We shall assume here that they can buy approximately 3-4 wine bottles per month (probably a nice assumption). This information could account fully for the purchase of approximately 220 million wine bottles in the US. These purchaseswould be for home consumption having an additional amount for restaurant sales and meeting/convention sales.

Here's where in fact the branding issues become real. You can find 8,500 wineries in the U.S. 80% of these wineries produce 5,000 cases or less of wine. To add perspective, Gallo produces in excess of 80 million cases of wine in a year for worldwide sales. Keeping with the tiny producer for the minute, this wine comes via the winery tasting room, winery wine clubs, on-line (Direct to Consumer), retailers (which includes grocery stores) via Three Tier Distribution that will require discounting to the distributors for retailer discounts, sale commissions, promotions and their advertising.

Remember, there's been no discussion of the wines that are imported from Italy, France, Chile, Argentina, Spain, Portugal, South Africa, New Zealand and Australia. That is important since these producers/importers are focused on branding their products also; this causes a lot of clutter in the market.

It's probably apparent you can find large producers, from all over the world, selling wine in America. Some wines do enjoy strong brand recognition such as Yellow Tail from Australia or Gallo from Lodi, CA. Beringer, Mondavi, and Coppola in Napa Valley are also full of brand recognition. In Sonoma we have Kendall Jackson and Rodney Strong. Interestingly, it requires strong revenue and profits to create a brandname and if you should be a tiny producer the money it requires for consumer branding activities is prohibitive. We must bear in mind every brand (corporate or product) must be positioned differently as an image.

We see that sales of 4 or 5 wine bottles per month to U.S. consumers is just a daunting task just to get trials of the product. That is one of several explanations why wineries are spending more on improving direct sales through their tasting rooms, wine clubs, on-line (Direct to Consumer) sales and social media.

Let's discuss corporate winery branding. A needs an honest relationship with consumers. Otherwise the client is one of the 3 Tier Distributor or wine store and the sale becomes exponentially expensive going forward. A winery must define their image, product niches, consumer profile and be targeted to the consumer with a message specific to their targeted consumer. Wine Business.com reports that the vast majority of wine consumers buy wine in relation to taste. But, taste is just one of many differentiators. Obviously, wineries need to get the taster.

Branding

Effective branding is about bringing a corporate name, the company's products, or the services to be top of mind awareness for the customer. An item may even have significantly more recognition/branding than the company name. For example, Kleenex is more recognized than Kimberly Clark which manufacturers Kleenex. That is fine.

Wine is mostly sold, not with a winery name or a tag but first through price. Of the 10,000 plus varietals in the world, California has mostly dedicated to maybe 25 varietals for wine and wine blending. This fact causes it to be even harder to brand a winery when people try to find price first and varietal in third place based on Dr. Thach and Dr. Chang. Number two is branding.

Now look at the changes impacting the wine business. A is currently impacted with labels and brands announcing: organic wines, sustainable wines, and bio-dynamic farming wines.These add a new twist to branding considerations. Within the last several years there are some trying to brand lower alcohol levels, and medals. Talk about branding overload https://next-generation-wine.com/wein-zu-spargel/";}">wein zu spargel .


Branding Impact

Wineries must recognize, after your choice is created to incorporate focus to the company and/or its products, the company branding effort must be impacted throughout the organization. It will demand constant development, refinement, monitoring, and administration. Finally, a corporate identity must end up being the culture at the winery. In Dr. Thach and Dr. Chang 2015 survey of: American Wine Consumer Preferences, 61% of the respondents had visited multiple wineries in California alone. This implies, if a branding message being put out into the marketplace is not area of the winery culture the brand is going to be diminished. Consumers will see that culture in action at the winery.

Marketing is not all there's to branding, but it's significantly before number two. Marketing is part of branding since it touches and introduces the brand to consumers, retailers, vendors and the community. There are many large companies that spend vast sums of money on building corporate brand without selling specific products. Boeing is such a company; consumer does not buy $300 million airplanes nevertheless they do answer image https://next-generation-wine.com/wein-zu-spargel/";}">wein zu spargel .


Finally, companies/brands must protect their image at all costs. Once the Branding Plan (akin to a company plan) is developed, with a great foundation of research and winery metrics, that plan will dictate many things. For example: product launches and new service launches, dictate the messages from the company, employee hiring, PR, packaging, and the list encompasses every department is just a winery.

Weergaven: 6

Opmerking

Je moet lid zijn van Beter HBO om reacties te kunnen toevoegen!

Wordt lid van Beter HBO

© 2024   Gemaakt door Beter HBO.   Verzorgd door

Banners  |  Een probleem rapporteren?  |  Algemene voorwaarden