In my last newsletter, I wrote about the importance of analyzing account level data from the wholesale market. For smaller wineries, getting this data and knowing how to use it can be a challenge. For larger businesses, allocating the resources to wading through all of the data usually means having a dedicated person or team.
The first step is, of course, gaining access to the data. Depending on the number of wholesalers you work with, you may be able to simply ask for it in spreadsheet form -- this might work for about five to ten markets. After that, investing in software to help manage the business is usually necessary. (See the newsletter for different providers of this software.)
Below are the fields in which I'm most interested for each market:
* Account name and address (would love phone number and buyer, too)
* wine(s) purchased and quantity of each one
* distributor sales rep who made the placement
The above is just a baseline set of information and represents a good start for those who haven't yet made wholesale management a priority. (I always recommend that if you're in a market, you might as well manage it -- it is ultimately the winery's responsibility to do so and those who expect the distributor just to sell through without a partnership will likely be disappointed.)
Software providers like DarWine will help you look at changes in the business because it's gathered monthly and offers a series of reports ranging from account level detail to wholesale business overview. Top level information might include a report showing number of accounts and placements for each wine nationally comparing 2009 with 2010. An example of a detailed report shows this data for an individual market to let me know best accounts, unsold accounts, etc. A further drill-down might be looking into purchasing patterns of individual accounts.
Assuming I just have the baseline information from my clients, here are a few examples of how I use it at different intervals to ...
monthly:
* have a productive conversation with each brand manager regarding inventory management/depletions and any programming
* send a thank you note to new accounts, or depending on the size of the order, a special token for the staff members
* send shelf talkers to new off-premise accounts who use them
* promote special accounts or events through social media and winery e-blasts to consumers
... quarterly:
* help plan market travel and specific accounts to call upon during the day and patronize each evening
* run a list of accounts for DTC manager to keep on hand for out-of-town visitors to the winery who ask where to find their favorite wine when they return home
... annually:
* call top X# of buyers in each market to thank them and personally invite them to the winery and send a thank you gift
* run performance report for review meetings with wholesalers
Adding wholesale analysis to your repertoire will result in a great ROI if done consistently and well.
11.17.2010
Latest Bi-Monthly Newsletter
Edition 15 covers part II of Increasing Sales with Marketing-Driven Strategies, a review of Grappos.com and discusses the importance of analyzing account level data.
10.25.2010
Study Finds Marketing Key During Downturn
There is a natural tendency to cut marketing spending during a down economic cycle. When revenues and margin begin to decrease, business managers begin to look at ways to cut costs to maintain an acceptable level of profitability.
Marketing is typically in one of those "first to go" categories. While understandable since measuring ROI can be tricky given the demand creation cycle, cutting these activities actually reinforces the downturn for the company.
Even when there is not a downturn, some firms choose to cut marketing when things are going well -- I saw this a few times in the wine industry when I worked for Ed Schwartz Public Relations (now Calhoun & Company). In one particular example, the company worked diligently for two years to get coverage in a major business publication. Soon after, the client called to end the engagement saying that the work was phenomenal and that he no longer needed PR. Rather than invest in building the momentum, he decided to choke it off at its peak.
This research study by McGraw Hill was cited in a North Bay Business Journal article that came through today's Daily Links. The main take away for me is a reminder that some businesses grow during recessions. For example, one of my clients is up 70% YTD, and the main reasons for it are enhanced focus among the (fabulous) team of people and a strong, targeted marketing plan.
Investing in your brand awareness and loyalty (especially within your target market) when others are cutting, actually brings your business a greater ROI.
Marketing is typically in one of those "first to go" categories. While understandable since measuring ROI can be tricky given the demand creation cycle, cutting these activities actually reinforces the downturn for the company.
Even when there is not a downturn, some firms choose to cut marketing when things are going well -- I saw this a few times in the wine industry when I worked for Ed Schwartz Public Relations (now Calhoun & Company). In one particular example, the company worked diligently for two years to get coverage in a major business publication. Soon after, the client called to end the engagement saying that the work was phenomenal and that he no longer needed PR. Rather than invest in building the momentum, he decided to choke it off at its peak.
This research study by McGraw Hill was cited in a North Bay Business Journal article that came through today's Daily Links. The main take away for me is a reminder that some businesses grow during recessions. For example, one of my clients is up 70% YTD, and the main reasons for it are enhanced focus among the (fabulous) team of people and a strong, targeted marketing plan.
Investing in your brand awareness and loyalty (especially within your target market) when others are cutting, actually brings your business a greater ROI.
10.21.2010
The Power of Goals - A 3 Part Process for Plan Preparation
Setting goals is normal part of everyday living in modern society. Whether it's getting to the gym three times per week, creating and tracking a budget, or spending time with the family on Sundays, setting specific goals helps identify what is important and to live a life of purpose.
In the business world, setting and measuring goals is a very important practice for success. John Wooden, one of the most successful college basketball coaches of all time and author of one of my favorite business books, Wooden on Leadership, believed that winning (or losing) was a matter of preparation. For Wooden, the process of becoming the best team possible -- setting goals and tracking success -- was the most important predictor of success:
"Success is peace of mind, which is a direct result of self-satisfaction in knowing you made the effort to do the best of which you are capable."
In the wine industry, particularly in smaller and younger businesses, goal-setting is often primarily focused on the production side. We spend a lot of time setting goals for vineyard yields, fruit processing, aging, style, production level, recognition, etc.
Production goals are undoubtedly important given the need to deliver delicious wine, but, if there is no plan specifying goals for people and processes, managing the business side becomes increasingly difficult. The symptoms of lack of preparation include rising inventories, decreased demand, unclear and/or inefficient processes, frustration and waning focus among people and, ultimately, decreased sales, profitability, and team cohesion.
Many want to believe that making excellent wine is "enough", but with competition from imports and new domestic entrants, consolidation in wholesale and account tiers, and the variability of economic cycles, it just isn't. I don't necessarily believe in the "new normal" of consumer spending (people tend to revert back to old habits once economic pressures decline), but I do believe in the "new normal" of the competitive landscape in the wine industry.
The great news is that preparation is a proactive process, not something out of our control like enormous flocks of birds preying on vineyards or rain during harvest. It's something we all have in our power to do provided we commit the necessary time and brainpower.
Preparation is also a positive learning process. It helps you understand why certain tactics worked and others didn't, and gain knowledge of team strengths and challenges. Viewing this process in a positive light means freeing yourself as a business manager to make mistakes and then seeking the understanding that comes from correcting them. Wooden again speaks to this value:
If you're not making mistakes, then you're not doing anything. I'm positive that a doer makes mistakes.
In my practice, goal-setting for established wineries is a three-part process. First, I seek to understand the winery's strengths and challenges with interviews and surveys: confidential individual interviews and then surveys of key stakeholders including staff, trade and consumers. Then, I provide data analysis and recommendations to my clients and their teams, which serve as a point for further discussion about goals and processes. Finally, based on the knowledge gained from these conversations, I work with owners and managers to develop a strategic marketing plan identifying organizational and sales goals, mapping out specifically who is doing what, and when and how performance will be measured. We work to establish an engaging and motivating review process and coach the "players" to success based on preparation.
The research phase of this process respects and includes the winery's past while mapping out a proactive future. A consultant can't enter a company and effectively make recommendations based on prior experience alone. My experience working with close to 60 wineries ranging from domestic "one-man" operations to global producers gives me a series of best practices, but it doesn't give me the proprietary knowledge that is just as important in delivering excellent preparation.
For new wineries, there is still a research phase based on identified competitors, and focus groups can be used to augment it. Preparation for a new winery means that there isn't a lot of data to consider for the plan, but there is also a "fresh slate".
Operating with a common set of goals has several power effects. Teams become more focused and united, prioritization is easier and more effective coaching is possible. The feeling of setting and achieving (or surpassing) a goal also helps build momentum needed for the next year, when we need to plan all over again!
In my next post, I'll discuss meaningful business goals for the wine industry.
.
In the business world, setting and measuring goals is a very important practice for success. John Wooden, one of the most successful college basketball coaches of all time and author of one of my favorite business books, Wooden on Leadership, believed that winning (or losing) was a matter of preparation. For Wooden, the process of becoming the best team possible -- setting goals and tracking success -- was the most important predictor of success:
"Success is peace of mind, which is a direct result of self-satisfaction in knowing you made the effort to do the best of which you are capable."
In the wine industry, particularly in smaller and younger businesses, goal-setting is often primarily focused on the production side. We spend a lot of time setting goals for vineyard yields, fruit processing, aging, style, production level, recognition, etc.
Production goals are undoubtedly important given the need to deliver delicious wine, but, if there is no plan specifying goals for people and processes, managing the business side becomes increasingly difficult. The symptoms of lack of preparation include rising inventories, decreased demand, unclear and/or inefficient processes, frustration and waning focus among people and, ultimately, decreased sales, profitability, and team cohesion.
Many want to believe that making excellent wine is "enough", but with competition from imports and new domestic entrants, consolidation in wholesale and account tiers, and the variability of economic cycles, it just isn't. I don't necessarily believe in the "new normal" of consumer spending (people tend to revert back to old habits once economic pressures decline), but I do believe in the "new normal" of the competitive landscape in the wine industry.
The great news is that preparation is a proactive process, not something out of our control like enormous flocks of birds preying on vineyards or rain during harvest. It's something we all have in our power to do provided we commit the necessary time and brainpower.
Preparation is also a positive learning process. It helps you understand why certain tactics worked and others didn't, and gain knowledge of team strengths and challenges. Viewing this process in a positive light means freeing yourself as a business manager to make mistakes and then seeking the understanding that comes from correcting them. Wooden again speaks to this value:
If you're not making mistakes, then you're not doing anything. I'm positive that a doer makes mistakes.
In my practice, goal-setting for established wineries is a three-part process. First, I seek to understand the winery's strengths and challenges with interviews and surveys: confidential individual interviews and then surveys of key stakeholders including staff, trade and consumers. Then, I provide data analysis and recommendations to my clients and their teams, which serve as a point for further discussion about goals and processes. Finally, based on the knowledge gained from these conversations, I work with owners and managers to develop a strategic marketing plan identifying organizational and sales goals, mapping out specifically who is doing what, and when and how performance will be measured. We work to establish an engaging and motivating review process and coach the "players" to success based on preparation.
The research phase of this process respects and includes the winery's past while mapping out a proactive future. A consultant can't enter a company and effectively make recommendations based on prior experience alone. My experience working with close to 60 wineries ranging from domestic "one-man" operations to global producers gives me a series of best practices, but it doesn't give me the proprietary knowledge that is just as important in delivering excellent preparation.
For new wineries, there is still a research phase based on identified competitors, and focus groups can be used to augment it. Preparation for a new winery means that there isn't a lot of data to consider for the plan, but there is also a "fresh slate".
Operating with a common set of goals has several power effects. Teams become more focused and united, prioritization is easier and more effective coaching is possible. The feeling of setting and achieving (or surpassing) a goal also helps build momentum needed for the next year, when we need to plan all over again!
In my next post, I'll discuss meaningful business goals for the wine industry.
.
9.08.2010
Swiftwater Cellars Grand Opening Friday
It gives me great pleasure to announce the grand opening of Swiftwater Cellars this Friday! This is truly Washington's ultimate destination winery -- delicious wines by Tony Rynders and Linda Trotta; fine cuisine and hospitality by Chef Matt Bates, F&B Norm Dillard and Club and Event Manager, Jami Parks; and a solid accounting and business foundation by Controller, Bjorn Gjerde. It's a beautiful location about an hour from Seattle in the Cascades. And there is something for everyone given the Suncadia resort -- golf, trails, spa, fishing and much more. All created within the vision of founders, Don and Lori Watts and their son and GM, Donnie and his wife, Meghan.
I have had the pleasure of working with the ever-growing team for the last 17 months and to get to this point is both professionally and personally thrilling. They broke ground in only August of last year so the fact that such a beautiful facility was finished in such a short period of time is nothing short of amazing.
Here's a detailed look at the work we've done together over the last year and a half:*created and revised a messaging platform
*written and revised a business plan
* developed labels, packaging and a wide range of marketing materials with Joe Farmer of WhizBang Studio
* sourced software for the winery and restaurant
* written job postings
* sent 6 press releases and 7 newsletters
* pitched 300 writers and counting
* promoted 35 resulting articles, a video and radio interview so far... still counting!
* created a website and planned a new one with Brett Lytle of Lytle Works
* sourced bottle photography from Image works
* developed 3 social media platforms
* created two rock star wine clubs which already have over 150 members
* grown our contacts from 100 to over 1000
* hosted ground breaking and participated in Taste WA and Wine in the Pines
* created a website and planned a new one with Brett Lytle of Lytle Works
* sourced bottle photography from Image works
* developed 3 social media platforms
* created two rock star wine clubs which already have over 150 members
* grown our contacts from 100 to over 1000
* hosted ground breaking and participated in Taste WA and Wine in the Pines
* worked with the Suncadia marketing, PR and event teams
* written and revised a speech
* sourced dummy bottles, branded items, glassware and "This is how we roll" shirts
* written and revised a speech
* sourced dummy bottles, branded items, glassware and "This is how we roll" shirts
* had 8 meetings and spent likely 5 full 24 days on the phone
* sent thousands of emails and logged 5000+ driving miles
* enjoyed many delicious meals at Portals in Suncadia, Seattle and the Watts family homes in Cle Elum and Kennewick (can't wait to finally have one at the Hoist House!)
* seen a Tri-City Americans ice hockey game and attended a baby shower
* visited several Prosser area wineries
* shared dinner two IPNC Salmon Bakes
* met many family members, friends and business associates
* congratulated Don on his Puget Sound Hall of Fame award
* congratulated Don on his Puget Sound Hall of Fame award
* and last but certainly not least... welcomed two new babies
Whew! This is just what I've worked on... multiply that by a factor of 100 for the full team's efforts.
In February of 2009, I'd never heard of Cle Elum, Suncadia, or the Watts family. Thanks to an introduction by Tony Rynders, whom I'd met at a conference in June 2008, I became part of an incredible team and business vision. For all this I am truly thankful.
9.05.2010
OR State Fair Wine Competition
I was happy to return as a judge for the Oregon State Fair's wine competition. As usual, Elaine Lisle and Desa Swaim did an incredible job with the volunteers, organization and excellent treatment of their judges. The pre-judging dinner at Bentley's in Salem is always a treat because it features gold medal winners from the prior year. Sommelier Brian Kemmerle, a fellow judge, and chef Derek Ridgway do an excellent job pairing wine with the cuisine.Some highlights included tasting the Italian varieties from Cana's Feast by winemaker, Patrick Taylor. And of course Stoller Vineyards' 2006 SV Estate Pinot Noir being awarded "Best Red of Show". (No, I had no idea which of the many Pinot Noirs was my client's because this was a blind tasting :)
It's always interesting to compare your judging notes with the overall medal list. As I wrote after the WA wine competition, there isn't a lot of time to savor these wines, so my notes are my 30 second to one minute impressions. Here I present my personal "Golds":
Phelps Creek 2009 Gewurtztraminer
Mineral, fresh rain, oregano and white peach aromas. Pretty tangerine and lime notes in mouth. Delicious with great acid!
Phelps Creek 2008 Chardonnay
Deep golden delicious and red apple. Nice oak integration with spice and good length. Best white of show/Best wine of show.
Deep golden delicious and red apple. Nice oak integration with spice and good length. Best white of show/Best wine of show.
Shadow Mountain Vineyards 2009 Pinot Gris
Very inviting notes with pretty lemon-lime and fresh rain aromas. Bright acidity with a crisp mouthfeel with a touch of almond on the finish. More of a Grigio style -- fun and sexy.
Firesteed 2008 Rose of Pinot Noir
Ripe strawberry, sour cherry, floral and herbal aromas. Strawberry really comes through in mouth with nice acid structure -- refreshing.
August Cellars 2006 Pinot Noir
Deep, inviting red cherry, raspberry and baking spices -- multiple layers. Some good stewed fruit notes with a touch of fresh tomato, cherry and a nice minty/herbal character. Long finish.
Very inviting notes with pretty lemon-lime and fresh rain aromas. Bright acidity with a crisp mouthfeel with a touch of almond on the finish. More of a Grigio style -- fun and sexy.
Firesteed 2008 Rose of Pinot Noir
Ripe strawberry, sour cherry, floral and herbal aromas. Strawberry really comes through in mouth with nice acid structure -- refreshing.
August Cellars 2006 Pinot Noir
Deep, inviting red cherry, raspberry and baking spices -- multiple layers. Some good stewed fruit notes with a touch of fresh tomato, cherry and a nice minty/herbal character. Long finish.
Stoller Vineyards 2006 SV Pinot Noir
Very inviting, sweet black cherry jam, tea leaves, curing tobacco, earth with a hint of dusty character. Ripe, rich and round with a long finish.
Stoller Vineyards 2007 JV Pinot Noir
Deep, beautiful ripe, brambly raspberry, cherry and espresso aromas. Espresso turns to toffee and mocha in mouth which has rich feel. Love this nose! Nice balance and smooth finish.
Evergreen Vineyards 2008 Pinot Noir
Brambly with raspberry, cherry and fresh leather aromas. Deeper black cherry with earthy/forest floor and baking spice in mouth. NICE.
Very inviting, sweet black cherry jam, tea leaves, curing tobacco, earth with a hint of dusty character. Ripe, rich and round with a long finish.
Stoller Vineyards 2007 JV Pinot Noir
Deep, beautiful ripe, brambly raspberry, cherry and espresso aromas. Espresso turns to toffee and mocha in mouth which has rich feel. Love this nose! Nice balance and smooth finish.
Evergreen Vineyards 2008 Pinot Noir
Brambly with raspberry, cherry and fresh leather aromas. Deeper black cherry with earthy/forest floor and baking spice in mouth. NICE.
Cana's Feast 2007 Sangiovese
Deep red berry, leather, sweet curing tobacco with white pepper. Nice, dusty mouthfeel with raspberry and great acid. A terrific food wine with a long finish. What more could you want in a domestic Sangiovese?!! Best one I've ever tried.
Cana's Feast 2007 Nebbiolo
Blueberry, cherry, raspberry jam; smoke and moss. Good acid/tannin balance. Nice present finish -- still juicy so more time left to age in bottle.
Deep red berry, leather, sweet curing tobacco with white pepper. Nice, dusty mouthfeel with raspberry and great acid. A terrific food wine with a long finish. What more could you want in a domestic Sangiovese?!! Best one I've ever tried.
Cana's Feast 2007 Nebbiolo
Blueberry, cherry, raspberry jam; smoke and moss. Good acid/tannin balance. Nice present finish -- still juicy so more time left to age in bottle.
Ribera Vineyards 2007 Merlot
Very concentrated aromas of stewed plum, fresh leather, clay. Delicious soft and round mouth with big fruit flavors retaining complexity of nose. Silky, velvety and round.
Cana's Feast 2007 Counoise
Peppery fabulousness. Red cherry, blackberry. Ripe with good acid.
Devitt Winery 2005 Cabernet Sauvignon
Plum, bark, blackberry, clove, olive, mint and a little je ne sais stank. What a nose! Ripe fruit with good balance. Love the mouthfeel. What a delicious glass of wine!
Stone Wolfe Vineyards 2005 Cabernet Sauvignon
Blackberry, black cherry, fresh leather, tobacco, eucalyptus. Very focused, fine ripe sweet fruit with peppery note and silky mouthfeel. Good tannic structure and balance. Long finish.
Very concentrated aromas of stewed plum, fresh leather, clay. Delicious soft and round mouth with big fruit flavors retaining complexity of nose. Silky, velvety and round.
Cana's Feast 2007 Counoise
Peppery fabulousness. Red cherry, blackberry. Ripe with good acid.
Devitt Winery 2005 Cabernet Sauvignon
Plum, bark, blackberry, clove, olive, mint and a little je ne sais stank. What a nose! Ripe fruit with good balance. Love the mouthfeel. What a delicious glass of wine!
Stone Wolfe Vineyards 2005 Cabernet Sauvignon
Blackberry, black cherry, fresh leather, tobacco, eucalyptus. Very focused, fine ripe sweet fruit with peppery note and silky mouthfeel. Good tannic structure and balance. Long finish.
9.01.2010
Latest Newsletter
Check out the latest edition of Strategic Guidance from the Ground Up, the Trellis Wine Consulting bi-monthly newsletter. In this issue I discuss how to create a marketing-driven business plan, an online meeting scheduler and present latest client and company news.
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