Posts Tagged ‘marketing’

 
The health lobby in France has invoked the Evin Law in a call for stricter limits on what bloggers and social media users can write about wine online.

 
A report on the issues of addiction in France entitled ‘Les Dommages Liés Aux Addictions et les Strategies Validées pour Reduire Ces Dommages’ (Damage related to addictions and strategies for reducing the damage) is being prepared as part of the background to forming government policy from 2013-2017.

One of the suggestions put forward is that alcohol promotion should be formally forbidden on the internet and social media, including promotion of wine.

Specific sites belonging to producers, online wine merchants or wine tourism sites would be exempt, but wine bloggers would fall under the definition of sites that would be no longer authorised, as would any specific advertising or promotion of wine.
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The brewing industries in many countries are undergoing dramatic changes, with increasing numbers of craft breweries challenging the traditional volume-based business model of major corporations.

In the US for example, more than 400 breweries opened in 2012, an increase of 17% from the year before. Craft beer continues to grow even when beer consumption overall is declining in many markets around the world. This certainly seems to be the trend in countries like the US, Canada, New Zealand and indeed Australia.

In 1990, the centralisation of the Australian beer industry seemed complete; three companies controlled the market and the whole country had just 11 breweries. Yet this seems to have been the turning point rather than the end state: 20 years later the craft beer sector had well and truly made its entrance so that by 2013, Australia’s beer industry consists of over 130 breweries.

The trend suggests craft breweries have found a niche market where the large breweries find it hard to compete. Craft beer is often differentiated by taste, as a food companion and by the raw material used to produce it. Enthusiasts sometimes refer to the common beers in derogatory terms as “fizzy yellow lagers”. Some may reject mainstream beer products based on a perceived lack of flavour; others reject it based on ownership of the label.

Some pub mangers around Melbourne refuse to serve beers that are not produced by small independent companies due to negative attitudes towards large multinational businesses, and a belief that craft beer can only be produced by small and independent businesses. Independent craft breweries have been able to make something positive out of their small size by framing themselves as unique and it is resonating with drinkers and pub owners alike.

While beer consumption in Australia has decreased steadily every year since 1979, consumers increasingly demand quality beers and the consumption of craft beers is increasing. ABC news reported that the consumption of craft beer in Australia is increasing by 6% every year. Nevertheless, the beer industry in Australia is still largely centralised, with multinationals SAB Miller (UK) and Kirin Holding (Japan) controlling about 90% of the market.

Yet it is this very high centralisation of the industry, where the large players can be regarded as “generalists”, that provides the opening for small players to enter the market as “specialists”. For craft breweries, such concentration of power in the industry is actually good news because these breweries serve a different market.

The specialists are often focused on selling more than just beer. They are selling an experience, quite often centred on educating consumers about beer styles and how to match it with food. As such, the craft beer industry is tapping into the monopoly of the wine industry as being the natural beverage to accompany a meal.

 

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 © Roy Morsch/CORBIS

© Roy Morsch/CORBIS

She is eyeing up the wine shelf. But how do you convert this “browser” into a “buyer”?

Studies from the Yale School of Management 1 have shown that it’s all about shifting a consumer’s frame of mind, from what psychologists call “deliberative” mode – where you’re busy weighing up practical factors like value for money, into a more “action-focused” purchasing gear.

Switching “browsers” into a buying mentality can be kick-started by offering products that need very little consideration such as a highly practical and low cost product e.g. an umbrella if it’s raining. Once one purchase decision has been made, shopping momentum builds up. A study has shown that once consumers have decided to buy a first item, they buy more items overall.

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Also download:

wine-intelligence-liwf-2012-think-tank-session-the-science-of-choice-in-the-wine-category.pdf

 

Chances are that at least once in your life you’ve found yourself at a restaurant, sitting next to someone who claims to know everything about wine.

They usually hold their glass up toward the light to see the color of the wine, talk about tannins, grape variety, soil quality… Of course, the most expensive wine always seems to be the best one.

But recently, several studies have shown that the price itself of a wine can actually influence its taste.

In 2001, Frederic Brochet carried out two experiments at the University of Bordeaux. In one of them, he got 54 oenology students together and had them taste a glass of red wine, and a glass of white wine. They described each wine with as many details as they could. What Brochet did not tell them was that both glasses were actually the same wine. He had simply dyed the white wine red – which did not affect its taste. In the second experiment, he asked experts to assess the quality of two bottles of red wine. One was very expensive, the other one was cheap. Once again, he had tricked them, filling both bottles with the cheap wine. So, what were the results?
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Swedish company Vernissage has started selling its boxed wines shaped to look like designer handbags in the UK due to unprecedented consumer demand.

Keen to appeal to fashion savvy consumers, last year Vernissage released the chic trio in the US and a number of European countries, overlooking the UK.

But due to repeated requests from British consumers, the wines are now available to buy in the UK through The Exceptional Wine Company.

Created by Stockholm-based graphic designer Sofia Blomberg, the “Bag-in-Bag” wines are made at the Nordic Sea Winery in Sweden run by Takis Soldatos.
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The drinks business has compiled a list of the current top 10 Champagne brands by global volume sales.

While there are few dramatic changes to this year’s rankings – the slide by Piper Heidsieck was widely forecasted as a result of the brand’s recent repositioning – what does stand out is the decline in sales seen by so many of these major players in the Champagne category.

For many consumers, especially in more traditional markets, Champagne stands firm as the ultimate celebratory drink. However, this slide in sales appears to be the result of two aligning forces: ongoing economic difficulties in some of the category’s biggest markets and the growing competition Champagne faces from an increasingly ambitious sparkling wine market.

Read on to find out which brands are dominating today’s Champagne market.

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Neft Vodka ad...

 

New research suggests that market leaders in the alcohol industry are being left behind in social video marketing because “they are not optimising their content for social web”.
Video technology company Unruly, has published a report called “Untapped Potential: The State of Sharing in the Alcohol Sector”, which found that despite enjoying significant growth in the last quarter, a staggering 97% of the alcohol sector’s video shares came from just four adverts. The four ads, which came from Budweiser, Carlsberg, Heineken and little-known Russian-Austrian vodka brand, Neft, represent less than 1% of the alcohol adverts released in 2013.

The report also suggests that market leaders such as Diageo and SAB Miller are lagging behind in social video sharing, while wine brands have remained the slowest to embrace social video, attracting less than 1% of the sharing activity during the final quarter of 2012 and the first of 2013. This trend was also noticeable earlier this year, when db revealed the Top 10 brands ruling social media.

Ian Forrester, Unruly’s insight director, said: “The research found that some of the big alcohol brands – and subsectors – are vastly underperforming in social video.

“For wine and spirit brands, the opportunity to increase brand awareness and sales conversion rates through social video is huge, as there has been very little mass movement from these brands in creating shareable video content.

“Additionally, leading brands like Diageo and SAB Miller that have very strong market share are lagging behind competitors when it comes to social video share of voice.”

The report also highlighted the impact of spirits brands on beer brands, which historically dominate alcohol advertising. Beer brands’ share of voice dropped from 97% in the fourth quarter of 2012 to 75% in the first quarter of 2013.

The report also published details of the most shared alcohol videos of all time, and you can click through the following pages to find out which these videos were.
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Selling commodities is difficult because people buy on emotion, or instinct if you will. Want and desire are powerful emotions that can stimulate the release of endorphins. It’s why some people are shop-a-holics. It feels good to buy. But it’s not that easy to get emotionally worked up about borax, chlorine, and salt. As an economic good, a commodity has no real differentiation, so small price differences in competing products can make huge differences in total sales.

Think about how you won’t buy gasoline at one gas station because it’s four cents cheaper around the corner. That’s a commodity. Ever buy a piece of art that way? Of course not because art’s value is in the eye of the beholder, is easily differentiated, and consequently will have wide price ranges. When art is sold, it’s sold on the artist’s reputation or the emotion the piece evokes for someone. Marketers work overtime to take commodity-like goods and then pretend they aren’t commodities by creating and building an emotional appeal around the brand.

 Take the above deodorant commercial. Did you hear mention of the product characteristics as a differentiator? Nowhere does this commercial say Old Spice is made with orange, lemon, clary sage, heliotrope, pimento berry and musk, even though those were the original Old Spice ingredients. The creative team instead focused on delivering an emotional image; something with a human connection that ties back to the product.
 
In this case in a humorous way, they are talking about sex-appeal and are really targeting women who are by far the larger purchasers of family groceries still. The subliminal note is if you get Old Spice for your husband, he will look like this …….. or maybe the message is he will ride a horse? I don’t know but I am wearing Old Spice and on a horse right now. Look at me….

 

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Don't forget the consumers with a sweet tooth!

Don’t forget the consumers with a sweet tooth!

 

The wine industry is failing to keep up with changing tastes among consumers, according to drinks analyst Jonny Forsyth of Mintel, speaking at the LIWF today.

 

Forsyth said consumers are becoming increasingly sweet toothed and adventurous in the products they choose.

 

However, he added, unlike other industries the wine trade is failing to keep up, to its commercial detriment.

 

Forsyth said: “Consumers are evolving, I’m not convinced that wine is evolving quite enough to follow this.”

 

He added sugar consumption in the UK had risen by 31% since 1990, with the average Brit now consuming 700g of sugar each week while in the US each American consumes 130lb of sugar per year.

 

Forsyth said the impact can already be seen in the industry, with rosé now having a market share in the UK of 11%, up from just 1% 10 years ago.

 

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Wine for the calorie watchers.

Wine for the calorie watchers.

Marketing wine on the number of calories it contains is far more effective than claiming drinking it can be part of a healthy lifestyle.

Speaking at the London International Wine Fair 2013 today at ExCeL, London, Mintel global drinks analyst Jonny Forsyth said the idea of a healthy lifestyle remains an abstract idea for consumers, making it difficult to market.

However, he added, everyone understands calories and can quickly find out how many are in whatever they are consuming, making it far easier to market.

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