Saturday, February 27, 2010

Don't let bad marketing get in the way of great wine


Whenever a bottle of wine is purchased, the consumer is looking for a certain level of satisfaction. This satisfaction can often be from the contents of the bottle, but rarely is it exclusively from the contents. Instead, the consumer, consciously or subconsciously, is looking for overall reassurance that the bottle they just purchased, is worth every penny. As a result of most consumers' lack of confidence in their own palates, they look to marketing for reassurance. I know, this sounds cynical and resonates a lack of faith in consumers.

Think I'm wrong? What about the crazy success of 2-buck chuck? The success of this wine is least dependent on it's quality. There are scores of people that say that there is "nothing wrong with it", but most people, again subconsciously, are satisfied buying this wine as a result of marketing. For $2, you get a wine in a bottle with a label and a cork. This is a novelty, and the package over delivers the perception of price point.

Take the other end; I know many collectors that buy simply on perceived reputation of name (Jordan, Silver Oak) without really being able to identify what they like about the wine. They are reassured buying these wines because of their name perception in the marketplace. Their packaging looks more expensive, and certainly did, 15-20 years ago when many collectors where learning about wine. Every retail shop will tell you that simply selling a wine from a wood box will double the velocity on higher end wines. Heavier bottles, wax tops, and tissue paper all add to consumer reassurance of quality. When laid out, it seems almost stupid that this can influence a wine brands' sales. I'll tell you what's stupid: newer brands that have access to this sort of information that ignore it. How many hubris driven names and labels are out there? It's a shame when consumers buy bad wine becasue of great packaging and marketing, but the worse crime is making a world-class wine that languishes because of poor marketing. Wineries don't need to pull out all of the stops, but they need to consider whether the consumer will be reassured trying a new wine, packaging and name go a long way to consumers taking a risk and trying something new.

9 comments:

  1. A shocking truth is that some customers will be full cases of expensive wine if the wine is in a sealed wooden case. I'm talking about $60 wine that they've never tasted and know nothing about. They just want that beautiful case.

    On the flip side, I wish I could sell Cavit Pinot Grigio in a 5 Liter box.

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  2. Indeed. But how can a winery keep costs low, AND provide the consumer with the satisfaction of making a "worth it" purchase? Nice glass, expensive cork, wax tops etc. all add the the cost of a bottle. The packaging shouldn't be worth ore than the wine right? Or maybe it should...?

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  3. As a small winery owner, this is a TOTAL struggle.

    Making a wine that will stay at a reasonable price point is hard enough at under 500 cases, but adding expensive and time consuming packaging is nearly impossible.

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  4. thanks for the comments. while it is certainly not conducive for <500 cs wineries to implement these expensive bottling methods, it's very important for those same wineries to pay particular attention to their own packaging. This can be as simple as using the right nam, or logo to more involved color schemes.

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  5. I don't like heavy, "dig me" glass bottles, and I abhor faux wax "capsules" but I agree that an attractive label is essential. An ugly label on an unfamiliar brand almost always is a guarantee of sub-par vino.

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  6. I agree with Paul. It seems to me to be philosophically inconguous when a "green" winemaker ships his 5 lb bottles wrapped in unnecessary tissue paper. It's like wearing too much lipstick.

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  7. I think you are missing the ORIGINAL and most valid point, i.e., that the American (buying) public need to be validated that they made a smart/good buy, esp. in the face of a slimmer wallet to spend from. That is why we have Parkers, WS, somms, retail salesmasters and now yes, even bloggers, that can tell people they can and will feel good about their personal choice/purchase and declaration of style. We all got egos, right?

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  8. Hey Wine Fans,

    I'm Dave, I work with the Austrian Wine Marketing Board. In preparation for upcoming tastings in NY and San Francisco we are having a slogan contest aiding us in building awareness of Austrian Wines. Tweet us an original Slogan @AustrianWine, and the best one gets a CASE of Gruner Veltliner!
    Check out what we have so far so you understand what we are going for.
    Thanks, I look forward to seeing what you got!

    http://www.austriauncorked.com/#goto=uncorked-ad-campaign---win-free-wine

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  9. Give me an example in the Cognac business. Now they promote a new brand with a rapper (Ludacris). It's Marketing within one year and they are successful. But: The cognac seems to be great as far as I can say.

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