1.08.2010
Selecting Software for Direct Winery Sales
Check out my latest article, Selecting Software for Direct Sales, published in the January 2010 issue of Wines & Vines magazine. It outlines a three-step strategic process -- needs evaluation, competitive analysis and interview, to help wineries select the best fit and avoid common hassles and problems.
12.23.2009
Creative Packaging and Story
During a recent trip to Oregon's Hood River with friends, we decided to do some wine tasting. Phelps Creek is located on a public golf course and it happened to be snowing, so it was not only beautiful but we had the tasting room to ourselves.I was particularly struck by two wines made under its Mt. Defiance brand, Hellfire and Brimstone. These white ($15) and red ($16.50) blends, respectively, are "inspired" by baseball player turned prohibitionist preacher, Billy Sunday. Reverend Sunday moved from the Chicago area to Hood River, which coincidentally is a move shared by Phelps Creek owner, Bob Morus.
I find Hellfire and Brimstone compelling for two reasons -- they over deliver on the PPQ, the relationship between packaging, price and quality, and tell a great story. They may not appeal to all audiences (in fact, some of my fellow southern friends and family members might be downright offended), but surely serve as a great example of strong branding!
12.02.2009
The Length of a PR Pitch - What it Really Takes to Get Press
I've been thinking a lot lately about the length of a PR pitch. Some happen pretty quickly -- for example, Harvey Steiman posted to his blog on WineSpectator.com about Tony Rynders' involvement with Swiftwater Cellars within a week of my first call to him. In most cases, however, it takes a lot more time. The NJ Monthly story on Think Tank Wine Company ran this week seven months after the initial pitch, and this is more the norm. (I've had them take over a year!) Of course, the two situations and pitches were very different -- first featured a very known winemaker and a winery groundbreaking; the second a new micro boutique winery.
What is similar about the two results above is that they both started with a strategic focus including research, a plan and communication tactics. When wine industry owners and operators consider public relations, they most often think about the brands that have generated the most media "buzz". I frequently receive inquiries from my wine marketing students and potential clients asking me how they can best go about generating buzz. Some postulate that it's only possible if you "pay the big ad bucks" or have "Parkerized wines". Others liken it to some sort of magic that a brand either does or doesn't possess or avoid it all together thinking it's just too overwhelming or happens by chance.
The truth is that great PR is none of the above. It can't be boiled down to one action and it certainly doesn't work if you don't have the most important ingredient: wines (or any other product for that matter) that over deliver on the PPQ. Sure, sometimes a winery gets noticed or gets lucky, but more often those which excel in PR over time have a strategy.
Let's consider a standard definition of public relations: “The practice of managing the flow of information between an organization and its key publics.” This definition is much broader than buzz, which is essentially talk or an amount of communication surrounding a brand. (It's worth noting that media relations is a sub-set of PR.)
PR is about telling a consistent and compelling story and long-term relationship building. It is an ongoing management function involving research, planning, communication and evaluation. PR necessitates communication with all key winery stakeholders -- employees, consumers (and potential consumers), trade customers, media, shareholders and owners.
The research phase involves gaining a sense of winery perception by interviewing and surveying the aforementioned key stakeholders. This is also a good time to gain an understanding of the winery's competitive set and conduct a SWOT analysis to identify internal strengths and weaknesses and external industry and marketplace opportunities and threats. Is the brand valued? If so, for what? How high is awareness? What is the overall winery image? Is the story compelling and consistent? If there are problems is it due to lack of awareness? True issues? Poorly handled mistakes? Are they problems in communication, pricing/promotional strategy or in winemaking?
The planning phase is about bringing the winery's compelling story to the publics. In addition to the media, there are other ways to do so via advertising, events, hospitality, social media, e-newsletters, market visits, etc. A proper plan starts with the goals and then identifies specific tactics (and persons responsible for implementing them) for achieving those goals. It also provides for success metrics which will be discussed later in the post.
The third phase, communication and implementation, is providing talking points and messaging for all who are involved in telling the winery's story. Wineries with distribution need to remember that distributor sales reps are also story tellers. Those with tasting rooms must not forget that those behind the bar are critical communicators at the consumer level. (I was just two weekends ago at a winery where the two tasting room employees spent most of their time chatting with friends and regulars at the other end of the bar and ignoring my husband and me. The lack of hospitality irked me so much that I had my students discuss tasting room experiences and do's and don'ts. Next post in hospitality!)
This is also where the relationship building process enters the program. Thinking about conversations with media and other stakeholders as steps to a longer-term relationship that will deliver value over time is recommended.
The final phase, the one most wineries are "too busy" to complete, is evaluation. Without an understanding of what components of the plan provided the most return on investment, a winery is not operating efficiently as it will not know the difference between successful and less worthy tactics and costs associated. Implementing kaizen -- a management technique focusing on continuous conscious improvement which stems from Japanese philosophy, is a best practice for PR and general business operations.
Only with a strategic and long-term relationship building focus can a winery truly excel at PR and generating that magical "buzz".
What is similar about the two results above is that they both started with a strategic focus including research, a plan and communication tactics. When wine industry owners and operators consider public relations, they most often think about the brands that have generated the most media "buzz". I frequently receive inquiries from my wine marketing students and potential clients asking me how they can best go about generating buzz. Some postulate that it's only possible if you "pay the big ad bucks" or have "Parkerized wines". Others liken it to some sort of magic that a brand either does or doesn't possess or avoid it all together thinking it's just too overwhelming or happens by chance.
The truth is that great PR is none of the above. It can't be boiled down to one action and it certainly doesn't work if you don't have the most important ingredient: wines (or any other product for that matter) that over deliver on the PPQ. Sure, sometimes a winery gets noticed or gets lucky, but more often those which excel in PR over time have a strategy.
Let's consider a standard definition of public relations: “The practice of managing the flow of information between an organization and its key publics.” This definition is much broader than buzz, which is essentially talk or an amount of communication surrounding a brand. (It's worth noting that media relations is a sub-set of PR.)
PR is about telling a consistent and compelling story and long-term relationship building. It is an ongoing management function involving research, planning, communication and evaluation. PR necessitates communication with all key winery stakeholders -- employees, consumers (and potential consumers), trade customers, media, shareholders and owners.
The research phase involves gaining a sense of winery perception by interviewing and surveying the aforementioned key stakeholders. This is also a good time to gain an understanding of the winery's competitive set and conduct a SWOT analysis to identify internal strengths and weaknesses and external industry and marketplace opportunities and threats. Is the brand valued? If so, for what? How high is awareness? What is the overall winery image? Is the story compelling and consistent? If there are problems is it due to lack of awareness? True issues? Poorly handled mistakes? Are they problems in communication, pricing/promotional strategy or in winemaking?
The planning phase is about bringing the winery's compelling story to the publics. In addition to the media, there are other ways to do so via advertising, events, hospitality, social media, e-newsletters, market visits, etc. A proper plan starts with the goals and then identifies specific tactics (and persons responsible for implementing them) for achieving those goals. It also provides for success metrics which will be discussed later in the post.
The third phase, communication and implementation, is providing talking points and messaging for all who are involved in telling the winery's story. Wineries with distribution need to remember that distributor sales reps are also story tellers. Those with tasting rooms must not forget that those behind the bar are critical communicators at the consumer level. (I was just two weekends ago at a winery where the two tasting room employees spent most of their time chatting with friends and regulars at the other end of the bar and ignoring my husband and me. The lack of hospitality irked me so much that I had my students discuss tasting room experiences and do's and don'ts. Next post in hospitality!)
This is also where the relationship building process enters the program. Thinking about conversations with media and other stakeholders as steps to a longer-term relationship that will deliver value over time is recommended.
The final phase, the one most wineries are "too busy" to complete, is evaluation. Without an understanding of what components of the plan provided the most return on investment, a winery is not operating efficiently as it will not know the difference between successful and less worthy tactics and costs associated. Implementing kaizen -- a management technique focusing on continuous conscious improvement which stems from Japanese philosophy, is a best practice for PR and general business operations.
Only with a strategic and long-term relationship building focus can a winery truly excel at PR and generating that magical "buzz".
11.23.2009
Salem Statesman Journal Article
With a winemaking culture dating back to pre-Roman civilizations, Italy is one of the oldest wine producing regions in the world. The country’s huge variety of grape varieties (there are over 800 documented), delicious cuisine, and vibrant culture influenced a number of American wine industry pioneers like Mondavi, the Gallos and Oregon’s own Ponzi family. Today, more and more Willamette Valley wineries are producing Italian-style wines which salute the old world and offer distinct newer tastes in the heart of Pinot Noir country... Read full article
11.03.2009
Grapevine Article -- Drive Sales with Effective E-Marketing
Check out my latest article, Driving Direct Sales with Effective E-Marketing, in the October issue of Grapevine Magazine.
10.14.2009
A Look at the True Meaning and Value of Marketing
In the wine industry, we tend refer to “sales” and “marketing” in the same vein, often using the terms interchangeably. We create “sales and marketing plans”, appoint Directors of “Sales and Marketing” and generally know that we need both functions to operate successfully. However, there exists a good deal of confusion regarding the purpose and specific activities accorded to each activity. While the two should work in tandem, it is important to understand that sales and marketing are not one and the same. Marketing is a distinct value creating function.
Two years ago I created a workshop entitled “Driving Sales with Marketing Driven Strategies” that I’ve since had the pleasure of presenting to a few wine industry organizations. During the introduction, I point out that the title of the presentation was chosen mindfully -- it presupposes that sales and marketing are two distinct functions. I then show two simple images: a leather shoe and a crowded room. The leather shoe represents sales, which closes the deal, literally moving inventory out of the winery and through the channels of distribution and creating revenue. The crowded room symbolizes marketing -- a function that creates value by driving demand for wines and makes it easier to move those boxes.
Let us examine a different example, a tasting room: sales closes the deal -- it is a “here and now” activity; but first, marketing attracts the customers to the winery and requires a longer term outlook. Without marketing, the role of a sales person is rendered much more difficult. There are more outbound than inbound calls, a steeper slope and a heavier bag. And without sales, the marketing role is much less effective since wines rarely sell themselves. The challenge is that many wineries do not have the budget to hire two full-time people, one overseeing sales, another heading up marketing. So it is even more important that the roles of each function are well understood and that appropriate time is allocated to both.
One of the primary responsibilities of a marketing manager is to identify the winery’s compelling story. This story, commonly referred to as a “brand”, should identify the winery’s four “D”s – what is desirable, distinctive, deliverable and durable. These characteristics define uniqueness, which is critical for achieving a defendable and strong positioning in a very crowded marketplace. The next responsibility should be to create or polish the winery’s vision, mission, key talking points (and proof for each) and identify the segments it’s targeting in the sales channel. Part of doing so well involves a competitive analysis of wineries that occupy the chosen position and defining particular internal strengths and weaknesses, and external opportunities and threats (the SWOT analysis).
At this point a nascent winery will start thinking about assets including all visual and written communication including packaging, website, press kit, e-blasts, brochures, etc. For an existing winery, this is the time to review those assets to make sure that they do the following: 1) tell the story consistently and in a compelling manner; and 2) appeal to the identified target segment(s).
The next step in a marketing driven sales strategy is to create a plan to tell the winery’s compelling story. The traditional four P’s of the marketing mix provide the beginning of a framework -- product, price, place and promotion. The first two traditional P’s must be defined as part of the winery offering. The third, Place, is the one most related to sales. It should answer the questions of what channels and markets, as well as specific breakdown between wholesale, direct-to-consumer and direct-to-trade in each. “Place” is essentially where a winery will tell its story. The fourth P, Promotion, is often the “fun” part. It defines the combination of tactics including events, ads, online activity, media relations, trade relations, programming, promotional materials, etc.
There are some newer P’s including People, Process and Physical evidence that work very well in the wine industry, which necessarily has a hospitality and customer service focus. A good winery marketing plan will include specific strategies for engaging and training the right people, creating systems and processes for customer service, etc. and producing a location, whether online or virtual, that includes physical elements that speaking to the winery’s particular story.
The next part of a marketing driven sales strategy involves People, those charged with telling that story. Key story tellers in the organization including owner, winemaker, sales and hospitality staff etc., so all speakers should be well versed. It also defines the particular audiences -- consumers, trade, media, employees, and the modified version of the winery story each should receive.
The final and ongoing stage of marketing driven sales strategy is to aim for continuous improvement. The Processes created by marketing should determine exactly who is doing what, define how compliments and complaints are handled, and provide for a set of key winery metrics. Internal performance reviews and annual surveys of key audiences are methods used to assess good standing and provide feedback for improving operations.
Marketing can only succeed in its true creating role when it is performed at the strategic level. Confusing marketing with sales diminishes a winery’s optimum operations and misses opportunity for both short-term deal making and long-term value creation.
Two years ago I created a workshop entitled “Driving Sales with Marketing Driven Strategies” that I’ve since had the pleasure of presenting to a few wine industry organizations. During the introduction, I point out that the title of the presentation was chosen mindfully -- it presupposes that sales and marketing are two distinct functions. I then show two simple images: a leather shoe and a crowded room. The leather shoe represents sales, which closes the deal, literally moving inventory out of the winery and through the channels of distribution and creating revenue. The crowded room symbolizes marketing -- a function that creates value by driving demand for wines and makes it easier to move those boxes.
Let us examine a different example, a tasting room: sales closes the deal -- it is a “here and now” activity; but first, marketing attracts the customers to the winery and requires a longer term outlook. Without marketing, the role of a sales person is rendered much more difficult. There are more outbound than inbound calls, a steeper slope and a heavier bag. And without sales, the marketing role is much less effective since wines rarely sell themselves. The challenge is that many wineries do not have the budget to hire two full-time people, one overseeing sales, another heading up marketing. So it is even more important that the roles of each function are well understood and that appropriate time is allocated to both.
One of the primary responsibilities of a marketing manager is to identify the winery’s compelling story. This story, commonly referred to as a “brand”, should identify the winery’s four “D”s – what is desirable, distinctive, deliverable and durable. These characteristics define uniqueness, which is critical for achieving a defendable and strong positioning in a very crowded marketplace. The next responsibility should be to create or polish the winery’s vision, mission, key talking points (and proof for each) and identify the segments it’s targeting in the sales channel. Part of doing so well involves a competitive analysis of wineries that occupy the chosen position and defining particular internal strengths and weaknesses, and external opportunities and threats (the SWOT analysis).
At this point a nascent winery will start thinking about assets including all visual and written communication including packaging, website, press kit, e-blasts, brochures, etc. For an existing winery, this is the time to review those assets to make sure that they do the following: 1) tell the story consistently and in a compelling manner; and 2) appeal to the identified target segment(s).
The next step in a marketing driven sales strategy is to create a plan to tell the winery’s compelling story. The traditional four P’s of the marketing mix provide the beginning of a framework -- product, price, place and promotion. The first two traditional P’s must be defined as part of the winery offering. The third, Place, is the one most related to sales. It should answer the questions of what channels and markets, as well as specific breakdown between wholesale, direct-to-consumer and direct-to-trade in each. “Place” is essentially where a winery will tell its story. The fourth P, Promotion, is often the “fun” part. It defines the combination of tactics including events, ads, online activity, media relations, trade relations, programming, promotional materials, etc.
There are some newer P’s including People, Process and Physical evidence that work very well in the wine industry, which necessarily has a hospitality and customer service focus. A good winery marketing plan will include specific strategies for engaging and training the right people, creating systems and processes for customer service, etc. and producing a location, whether online or virtual, that includes physical elements that speaking to the winery’s particular story.
The next part of a marketing driven sales strategy involves People, those charged with telling that story. Key story tellers in the organization including owner, winemaker, sales and hospitality staff etc., so all speakers should be well versed. It also defines the particular audiences -- consumers, trade, media, employees, and the modified version of the winery story each should receive.
The final and ongoing stage of marketing driven sales strategy is to aim for continuous improvement. The Processes created by marketing should determine exactly who is doing what, define how compliments and complaints are handled, and provide for a set of key winery metrics. Internal performance reviews and annual surveys of key audiences are methods used to assess good standing and provide feedback for improving operations.
Marketing can only succeed in its true creating role when it is performed at the strategic level. Confusing marketing with sales diminishes a winery’s optimum operations and misses opportunity for both short-term deal making and long-term value creation.
10.05.2009
Oregon State Fair Judging Results
This summer I had the pleasure of judging the very well organized Oregon State Fair wine competition. Elaine Lisle, Desa Swaim and their crew did a tremendous job and I truly enjoyed getting to better know my fellow judges. Last week I received the results and my judge's notes in the mail. Below is a list of my favorite wines including the medal won (if available):
Phelps Creek Chardonnay
2007 - Nice toasty notes with lemon cream and a little baking spice. Integrated with a long finish. Gold Medal.
Amity Vineyards Pinot Blanc
2007 - Pretty fruit salad, melon and floral aromas with a touch of white pepper. Nicely balanced with acid and finishes clean -- very refreshing. Silver Medal.
Orchard Heights Gewürtztraminer
2008 - Beautiful aromas of slate, rain, sweet basil and honeysuckle. A little pétillance on the palate with floral and pear flavors. Nice acid balance with a clean finish. Silver Medal.
Chateau Lorane Viognier
2006 - I'd never heard of this winery before but I also liked its Tempranillo (see below). Lavender, floral and spicy aromas lead to a very pretty, ripe and round mouth-feel. Finishes lush and clean. Silver Medal.
Firesteed Dry Rose
2008 - watermelon, cranberry and herbal notes. Nice bright acidity leads to mouth-watering refreshment -- needs a good sunset. Bronze Medal.
Coelho Pinot Noir
2006 - Aromas of raspberry, sour cherry and pretty baking spices. Balanced with excellent structure. Gold Medal and Best of Red.
Stangeland Winery Pinot Noir
2006 - Cranberry, raspberry and nutmeg aromas with hints of dark chocolate. Bright, mouth-filling fruit with a solid finish. Bronze Medal.
Chateau Lorane Tempranillo
2004 - A huge nose filled with deep black cherry, raspberry and milk chocolate. Plus notes of fresh leather and curing tobacco. Ripe and round in the mouth with good tannic structure. One of my top three.
Devitt Merlot
2004 - Another new winery for me. Nose filled with plum, sage, fresh leather, cigar box -- it's a touch of old world mixed with ripe fruit. Nice attack and lingering finish. Silver Medal.
Zerba Cellars Red Blend
2006- Green peppercorn, pine cone and leather aromas matched by ripe blueberry, blackberry and raspberry. A hint of mint on the palate with nice balance between fruit and acid; great length. Gold Medal.
Devitt Cabernet Sauvignon
2005 - Nose of cigar box, cedar, black fruit and new leather saddle. Big, juicy black fruit with a silky mouth feel. Great lingering finish.
Phelps Creek Chardonnay
2007 - Nice toasty notes with lemon cream and a little baking spice. Integrated with a long finish. Gold Medal.
Amity Vineyards Pinot Blanc
2007 - Pretty fruit salad, melon and floral aromas with a touch of white pepper. Nicely balanced with acid and finishes clean -- very refreshing. Silver Medal.
Orchard Heights Gewürtztraminer
2008 - Beautiful aromas of slate, rain, sweet basil and honeysuckle. A little pétillance on the palate with floral and pear flavors. Nice acid balance with a clean finish. Silver Medal.
Chateau Lorane Viognier
2006 - I'd never heard of this winery before but I also liked its Tempranillo (see below). Lavender, floral and spicy aromas lead to a very pretty, ripe and round mouth-feel. Finishes lush and clean. Silver Medal.
Firesteed Dry Rose
2008 - watermelon, cranberry and herbal notes. Nice bright acidity leads to mouth-watering refreshment -- needs a good sunset. Bronze Medal.
Coelho Pinot Noir
2006 - Aromas of raspberry, sour cherry and pretty baking spices. Balanced with excellent structure. Gold Medal and Best of Red.
Stangeland Winery Pinot Noir
2006 - Cranberry, raspberry and nutmeg aromas with hints of dark chocolate. Bright, mouth-filling fruit with a solid finish. Bronze Medal.
Chateau Lorane Tempranillo
2004 - A huge nose filled with deep black cherry, raspberry and milk chocolate. Plus notes of fresh leather and curing tobacco. Ripe and round in the mouth with good tannic structure. One of my top three.
Devitt Merlot
2004 - Another new winery for me. Nose filled with plum, sage, fresh leather, cigar box -- it's a touch of old world mixed with ripe fruit. Nice attack and lingering finish. Silver Medal.
Zerba Cellars Red Blend
2006- Green peppercorn, pine cone and leather aromas matched by ripe blueberry, blackberry and raspberry. A hint of mint on the palate with nice balance between fruit and acid; great length. Gold Medal.
Devitt Cabernet Sauvignon
2005 - Nose of cigar box, cedar, black fruit and new leather saddle. Big, juicy black fruit with a silky mouth feel. Great lingering finish.
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