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 INSIGHTS & JOY

A business newsletter with Pizzazz!

"We help leaders become better marketers
using a holistic business approach!"

March 2006

17th Anniversary Issue

 


"If you want to make a small fortune in the wine business in California, start with a large fortune." You will, no doubt, hear that adage repeated if you tour Napa or Sonoma County and visit the myriad tasting rooms there. Wine, particularly California wine, is a hobby of mine. I enjoy following the vagaries of the growing season, the harvest, and crush. The more I learn about wine and the individual wineries, the more I enjoy the final product inside each bottle. As a marketing consultant, I also study the outside of a bottle. You see, California wineries use different branding ideas to tempt the casual buyer. For this anniversary issue, I decided to explore some of the marketing techniques used by California wineries and contrast them with other regions of the world. You may well find an idea you can incorporate into your marketing approach. In any event, I feel sure you will take more notice of how wineries think outside the bottle when next you pass along a store's wine aisle. 

    
 
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IN THIS ISSUE

Marketing wine 'outside the bottle'

Smiles make the day!

$ Million Marketing Tips

Wine Quotes

Marketing Facets - The Market Focused Guide to Company Analysis

Marketing wine 'outside the bottle'

The next time you see a wine display, take a minute to observe the wide variety of labels. Wineries, particularly some in California, use eye-catching branding to lure buyers. Vintners all pay attention to the contents of the bottle, but the Californians now market 'outside the bottle.' You will see at least six different branding ideas.

First, notice the distinctive winery names. Imagine wineries named Smoking Loon, Frogs' Leap, Leaping Lizard, Wild Horse, Snob Hill and Epiphany. There's even Red Car, Red Flyer, and Red Zeppelin. You can also buy wine produced by Dog House, Toad hall, or Donkey & A Goat! Some consumers will buy the wine simply because of the weird winery name. There seems to be a rough inverse relationship between a winery's quirky name and the quality of the wine in the bottle. Crazy names can denote a drinkable, yet pedestrian wine.

Second, some use the name of the wine to catch the buyer's attention. A distinctive or cute name can boost sales of an otherwise mundane vintage. Some that come to mind are Sin Zin, a red zinfandel from Alexander Valley Vineyards; White Lie by Beringer Blass; Menage a Trois by Folie a Deux; Dancing Bull by Rancho Zabaco; and California Bandit produced, of course, by the Three Thieves winery!

Third, pick out some of the splashy and colorful labels that attract your eye. Several wineries illustrate their labels with modern art. Clos Pegase, Benziger, and Ferrari-Carano catch your attention with art, creating the impulse to purchase their wine. Far Niente employs large labels with lots of shiny gold to impress you with their offering. The higher-than-average price will also tend to convince a casual consumer that the wine will be to everyone's liking...and it usually pleases.

                Sample wine labels show attention-getting art and color.

Fourth, some producers with single vineyard products like to feature unique vineyard names to promote their wine. You will see vineyard names like Mink, French Camp, Saralee's, Mt. Carmel, Firepeak, Sangiacomo,Quarry, Belle Terre, Bosche, Out-of-Sight, Sunny Slope, Clos Pepe, and Three Sisters. Sometimes, a vineyard consistently produces extraordinary wine and is an important guide to the informed buyer. In other cases, the single vineyard designation is immaterial and is just used to impart the impression of high quality to an otherwise average bottle. 

Fifth, many wineries simply depend on a well-established name and consistent reputation to gain repeat consumers. When the customer sees the brand name, he or she will immediately conclude that the wine will be better than average to outstanding. Some wineries that come to mind include Caymus, Freemark Abbey, Raymond, Rombauer, Whitehall Lane, Cakebread, and Vincent Arroyo. The labels tend to be consistent in size and color. The idea is to make their wines easily recognizable to the repeat buyer.

Sixth, there is the snob appeal of signature or celebrity wines. Opus One carries the signatures of Robert Mondavi and Baron Philippe de Rothschild on an eye-catching label. This joint venture between a famous French wine house and a famous California producer commands a premium price. The 2002 vintage now being sold rated 86 (very good) and retails for $170 per bottle. Freemark Abbey's 2001 Bosche Vineyard Cabernet also rates 86, but sells for $65. Franciscan's 2002 Napa Valley Cabernet is also rated 86 and can be bought for $27. The extra price for Opus One can be attributed to the snob appeal of drinking a signature California wine produced in the ancient French Bordeaux style. Neibaum-Coppola features the name of Francis Coppola to help market their products. Other celebrity names like Fess Parker, Firestone, Andretti, and Arnold Palmer can be seen on California wine bottles.

Finally, some vintners have developed a cult-like following among wine aficionados and collectors. Their wines are expensive and generally hard to find in most stores. Grace Family, Screaming Eagle, and Harlan Estate are often considered 'cult wines.' The wines are world class, rating 95 and above by Wine Spectator. They are designed to age for years and improve in quality. The free publicity these vintners receive from wine publications and the annual multi-million dollar auctions means that they sell everything they produce at sky-high prices.

The French focus on chateau names and appellations, based on strict government regulations. Their labels tend to look similar to each other and to confuse the average American wine buyer. Can you say Chateau L'Eglise Clinet? How about Chateau Beausejour Duffau-Lagraosse? I can say Chateau Lafite Rothschild and Chateau Latour, but frankly I'm not one to pay $150-200 a bottle to go with my dinner! Why bother with all that gobbledy-gook on their labels when I can enjoy a California wine from a vintner I've visited of equal rating? I consider myself an aficionado, but not a wine snob.

Wines from other parts of Europe tend to follow the French. Italian, German, and Austrian wines feature family crests and distinct appellations on similar looking labels. You will see some interesting bottle shapes and sizes when you check the Italian Chianti's. The Italians use the bottles themselves to help market the wine inside.

The Australians are beginning to experiment with marketing 'outside the bottle. Greg Norman is the best known 'celebrity' wine from Australia. Little Penguin wine is now in American wine shops, as is Two Hands, Bird in Hand, Cockatoo Ridge, Fetish, Innocent Bystander, Mad Fish, and Wandering Wallaby. I predict you also will see flashier labels on Aussie wines in the future. Greg Norman and other Australian producers are now joint-venturing with California vintners and producing some very drinkable stuff. They are also picking up new marketing ideas. I've noticed some cute Aussie wine names and catchy vineyard designations lately.

We're already planning another trip to the California vineyards for early next year. The 2005 California vintage is reported to be one of the best and most prolific in recent years, thanks to near-perfect weather conditions. Perhaps, we'll get to barrel taste some of the 2005's that will be bottled this year and next! On an earlier trip, one of our hosts quipped, "There are only three tastes in the whole world...I like it, I don't like it, and it tastes like chicken." When it comes to wine, I must respectfully disagree. I find that each wine has a little something different to offer, something delightfully new to experience. I suppose that explains my eager anticipation every time I lift another glass.
 


Smiles make the day!
   
It doesn't hurt to dream, providing you get up and hustle when the alarm goes off.

Man is like a tack; he can only go as far as his head will let him.

People who walk on the clouds often leave too many things up in the air!

Between tomorrow's dream and yesterday's regret is today's opportunity.

The American dream is owning a German sports car, smoking a Cuban cigar, drinking fine French wine on a Caribbean beach.

Not so many Americans have been around the world but their income tax payments sure have.

Every American has the right to make a fool of himself, and today a lot of folks are abusing the privilege.

If it wasn't for picketing and protesting, many in America wouldn't get any exercise at all!

Americans are getting bigger and broader, a fact which has filtered through to everybody except those who design seats for theaters and sports arenas.


$ Million Marketing Tips

TIP: Sometimes, you must overcome apathy or inertia and get prospects to act. If you are first to spur action, you'll usually get the business.

TIP: Business buyers may be no more logical than consumers. There are emotional elements in every sale!


Wine Quotes

"Good wine is a necessity of life for me." Thomas Jefferson
 
Life's too short to drink bad wine. Anonymous
 
"...the soil has sublimated under sun and stars to something finer, and the wine is bottled poetry." Robert Louis Stevenson
"Fill ev'ry glass, for wine inspires us, and fires us with courage, love and joy." John Gay, The Beggar's Opera
 
"Drink no wine before its time...it's time!" Anonymous
 
"Anybody can taste the difference between a 70 and a 90, but only God knows the difference between an 86 and an 87." Bill Hatcher
 
"I like Champagne because it always tastes as if my foot's asleep." Art Buchwald
 
"Wine opens the heart. It warms the shy poet hidden in the cage of the ribs. It melts the wax in the ears that music may be heard. It takes the terror from the tongue that truth may be said. Christopher Morley
 
"In victory we deserve it, in defeat we need it." Winston Churchill on Champagne

"...the wine must taste of its own grapes." Elizabeth Barrett Browning
 
"Reminds me of my safari in Africa. Somebody forgot the corkscrew and for several days we had to live on nothing but food and water." W.C. Fields


Marketing Facets - The Market-focused Guide to Company Analysis

Marketing Facets - The Market-focused Guide to Company Analysis. Marketing Facets is a practical
resource for those involved in determining the current health of a company and gauging its future prospects. I designed my 103-page guidebook 
to be a supplement to other evaluation procedures and information normally gathered during a thorough due diligence or
business valuation process. The workbook takes a holistic approach, assembling facts and management assumptions in key areas to help
analysts form and support conclusions. 

Marketing Facets is a valuable resource to private investment fund managers, individual investors, venture capital specialists, investment banks,
and valuation specialists. Marketing Facets can also serve as a guide for C-level executives who wish to perform their own company analysis
as part of normal business planning, or in advance of efforts to refinance, acquire or divest.

Marketing Facets is available in electronic form via the Internet, on CD/ROM, or in print with a ring binder. 
> Electronic in MS Word .doc or Adobe .pdf format via the Internet @ $79.95
> CD/ROM format @ $85.95 including U.S. shipping and handling
> Ring binder version and CD/ROM combo @ $99.95 including U.S. shipping and handling

Consulting is also available. Please contact me for additional information.
Telephone: 972.931.7993  Fax 972.931.0542
  rpmorgan@morganmarketingsolutions.com.
 


P.S. Ninety-five percent of our engagements originate as a referral from helpful people like you! If you know someone who:

> Wants to develop a more productive marketing program, or
> Needs help building and implementing an effective operational business plan,

I would appreciate the opportunity to discuss the situation with you.

Our ideal client is a business owner or CEO between 30 and 60+ years old. Usually with a financial, engineering, or production background.
Who is often impatient, and interested in improving company performance.
Comes alive
when you ask, "How's business?" He, or she, is practical
but also enjoys the finer things in life. So, you may see my ideal client driving a Lexus or SUV to Neiman Marcus...and to Sam's Club.
Who do you know that fits this description?

A client speaks:  "Thank you for all of the hard work you did for my company. The concepts, experience, and insights that you brought to our public warehouse organization literally turned the company around. Now that we have a presence in the marketplace, and a proven method for getting the message out to our prospects, I can see that our growth will be limited only by our own desires."  Jeff Edwards, Edwards Warehouse Company, Dallas, Texas

 

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©2006 Morgan Marketing Solutions, Inc. All rights reserved. Other distribution permitted with proper attribution.


Richard P. Morgan CMC
Morgan Marketing Solutions, Inc.
Two Galleria Tower, Suite 10008
13455 Noel Road, Dallas, TX 75240-6620

Telephone 972.931.7993  fax 972.931.0542
email
rpmorgan@morganmarketingsolutions.com
www.morganmarketingsolutions.com

Author, Marketing Facets - The Market-focused Guide to Company Analysis
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