Branding a Foreign Location in an International Market Sam Heitner Director Office of Champagne, USA Sam Heitner Director Office of Champagne, USA

Overview Traditional branding vs. location branding Challenges of international markets How Champagne communicates in the United States -- case study What others can gain from Champagne’s experience in the US Traditional branding vs. location branding Challenges of international markets How Champagne communicates in the United States -- case study What others can gain from Champagne’s experience in the US

Branding vs. Location Historically branding has been focused on specific products: Coca-Cola Budweiser Disney British Airways When specific locations have been involved, most branding has been travel related and been led by countries or major entities: Jamaica UK Ireland I Love NY Historically branding has been focused on specific products: Coca-Cola Budweiser Disney British Airways When specific locations have been involved, most branding has been travel related and been led by countries or major entities: Jamaica UK Ireland I Love NY

Trademarks support this Trademark system is designed to protect names and brands. Has no allowance for the idea that a location has any effect on the value of a trademark In fact, trademarks can be sold. Something that one cannot do with a specific location. Trademark system is designed to protect names and brands. Has no allowance for the idea that a location has any effect on the value of a trademark In fact, trademarks can be sold. Something that one cannot do with a specific location.

Yet locations are very brandable They are unique Have specific conditions that distinguish them from others Branding often enables locations to increase value or prices for products Examples include: A city and tourist destination (Villa Gessel) An agriculture product (Vidalia onions) Wines (Champagne) They are unique Have specific conditions that distinguish them from others Branding often enables locations to increase value or prices for products Examples include: A city and tourist destination (Villa Gessel) An agriculture product (Vidalia onions) Wines (Champagne)

Branding locations requires: Bringing the unique attributes of the place to life Distinguishing it from others. Note: not necessarily claiming superiority over others Targeted communications to particular audiences that relate to their specific needs and interests Bringing the unique attributes of the place to life Distinguishing it from others. Note: not necessarily claiming superiority over others Targeted communications to particular audiences that relate to their specific needs and interests

International challenges Most people are wary of outsiders Most regions have communicated to an internal audience for many years One must break through both barriers: Speak to consumers in their own language Go to where they are Know -- and use -- their local influencers and natural allies to help you communicate Most people are wary of outsiders Most regions have communicated to an internal audience for many years One must break through both barriers: Speak to consumers in their own language Go to where they are Know -- and use -- their local influencers and natural allies to help you communicate

Champagne Champagne is a region 90 miles north west of Paris Famous for growing the grapes and perfecting the system required to make a specific sparkling wine called Champagne Champagne is a region 90 miles north west of Paris Famous for growing the grapes and perfecting the system required to make a specific sparkling wine called Champagne It’s unique northern climate and chalky soil combine to produce a specific environment that makes Champagne In fact, the soil, air, water and other environmental conditions actually affect the taste of the grapes and, therefore, the wine. Only grapes from specific plots within the region can be used to make Champagne.

Champagne video shown here

How Champagne Communicates in France In the EU and many countries, the word “Champagne” can only appear on wines from Champagne. Most French citizens have been to Champagne at least once in their lives. They understand the unique nature of the place. Therefore, within France the Champagne region focuses on wooing wine critics, educating consumers about the different types of Champagne, the distinct nature of particular vintages, etc. In short, they communicate to the French people in their native tongue. In the EU and many countries, the word “Champagne” can only appear on wines from Champagne. Most French citizens have been to Champagne at least once in their lives. They understand the unique nature of the place. Therefore, within France the Champagne region focuses on wooing wine critics, educating consumers about the different types of Champagne, the distinct nature of particular vintages, etc. In short, they communicate to the French people in their native tongue.

The importance of the US market Champagne has always been a region that exports a large portion of its wine In 2004: UK: 35 million bottles US: 19 million bottles The US is one of Champagne’s key priorities as wine consumption is increasing. US consumers are willing to spend extra for quality. Yet, the name “Champagne” is not protected and is used by many lower quality sparkling wine producers Champagne has always been a region that exports a large portion of its wine In 2004: UK: 35 million bottles US: 19 million bottles The US is one of Champagne’s key priorities as wine consumption is increasing. US consumers are willing to spend extra for quality. Yet, the name “Champagne” is not protected and is used by many lower quality sparkling wine producers

In the US, we refocus tone & message… The Champagne community has two goals in the United States: 1.Promote Champagne consumption 2.Protect the Champagne name The US consumer is very wary of France and French people Therefore we: Highlight US examples (Napa, California, Oregon, etc.) Speak with an American voice Focus on Champagne’s unique environment and growing conditions We always remind consumers that “Champagne Only Comes from Champagne” The Champagne community has two goals in the United States: 1.Promote Champagne consumption 2.Protect the Champagne name The US consumer is very wary of France and French people Therefore we: Highlight US examples (Napa, California, Oregon, etc.) Speak with an American voice Focus on Champagne’s unique environment and growing conditions We always remind consumers that “Champagne Only Comes from Champagne”

In the US, we refocus targets… We target communications to reach: Consumers -- High income, college graduates Wine business Media -- particularly lifestyle, political, business and travel reporters As advertising and communicating in the United States is VERY EXPENSIVE. Only target consumers who are potential Champagne purchasers or who will be in 5 years We target communications to reach: Consumers -- High income, college graduates Wine business Media -- particularly lifestyle, political, business and travel reporters As advertising and communicating in the United States is VERY EXPENSIVE. Only target consumers who are potential Champagne purchasers or who will be in 5 years

All communication is targeted Media Trips to Champagne Monthly updates on the state of the grapes Monthly updates on shipment figures Interviews with winemakers traveling to the US Targeted outreach to non-wine writers who reach the target demographics Travel writers Business press Political writers Lifestyle reporters Media Trips to Champagne Monthly updates on the state of the grapes Monthly updates on shipment figures Interviews with winemakers traveling to the US Targeted outreach to non-wine writers who reach the target demographics Travel writers Business press Political writers Lifestyle reporters

All communication is targeted Wine trade Wine education seminars Support materials Special events at trade shows Alliances with US wine growing regions Speaking to them in US “environments”yet where they can enjoy the beauty of the French product Wine trade Wine education seminars Support materials Special events at trade shows Alliances with US wine growing regions Speaking to them in US “environments”yet where they can enjoy the beauty of the French product

All communication is targeted Consumers All media and wine trade communication influence US consumers. Yet reaching consumers directly is imperative. Retailer tastings Materials available for wine clubs Education seminars Radio Television Magazine advertising Consumers All media and wine trade communication influence US consumers. Yet reaching consumers directly is imperative. Retailer tastings Materials available for wine clubs Education seminars Radio Television Magazine advertising

US-specific advertising

Measuring success Since the campaign commenced: Only French region to increase shipments to US More Americans than ever site “importance of location” when making a wine purchasing decision Many fewer media clips misusing “Champagne” and many more mentions of the Champagne region A greater variety of Champagne brands are now on the US market Since the campaign commenced: Only French region to increase shipments to US More Americans than ever site “importance of location” when making a wine purchasing decision Many fewer media clips misusing “Champagne” and many more mentions of the Champagne region A greater variety of Champagne brands are now on the US market

Lessons learned Champagne effectively communicates about their unique location in multiple countries They are effective because Champagne: Proudly proclaims its uniqueness Has support of all in the region Changing messages, tone and materials to suit the target countries Targeted media Targeted advertising Targeted events Educating new wine consumers about Champagne Champagne effectively communicates about their unique location in multiple countries They are effective because Champagne: Proudly proclaims its uniqueness Has support of all in the region Changing messages, tone and materials to suit the target countries Targeted media Targeted advertising Targeted events Educating new wine consumers about Champagne

Lessons for other regions Highlight unique attributes differentiates one in the mind of the consumer Yet one must understand the target market and customize all materials, activities and events to match that audience While proudly proclaiming what is special about these places Include and represent all major sectors of community Highlight unique attributes differentiates one in the mind of the consumer Yet one must understand the target market and customize all materials, activities and events to match that audience While proudly proclaiming what is special about these places Include and represent all major sectors of community

What does one gain by launching a comprehensive branding campaign? These efforts can be time consuming and difficult, yet they can: Increase international recognition of locations Enable some to increase the value of products from the region Help all players in the region (directly and indirectly) These efforts can be time consuming and difficult, yet they can: Increase international recognition of locations Enable some to increase the value of products from the region Help all players in the region (directly and indirectly)

Branding a Foreign Location in an International Market Sam Heitner Director Office of Champagne, USA Sam Heitner Director Office of Champagne, USA