Wine Marketing: The Basics Paul Wagner, President, BALZAC Instructor, Napa Valley College Wine Marketing & Sales

GOAL OF MARKETING: OPENING THE DOOR Define Winery Position Understand Distribution Support Sales

The Basics: Developing Your Business Plan Sales Projections Estimating the Size of your Market Creating a Unique Selling Proposition

Developing Your Business Plan What will you make? Where will you sell it? Financial Analysis and Cash Flow

Sales Projections How Many Cases CAN you sell? Where will you sell them? How many customers do you need? How many contacts must you make?

Estimating the Size of your Market How many people are there? Where are they? How many of them drink wine? How many will be YOUR customers?

Creating a Unique Selling Proposition How are you special? Why should people care? How will that sell wine?

Some definitions: Marketing: preparing the ground for sales Sales: transforming inventory into cash Brand: a symbol in the customers’ mind Positioning: how you are different

How are Sales and Marketing Different? Sales is the transformation of inventory into cash. Marketing is the development and protection of the brand. These are not mutually supportive goals

What is a brand? A brand is the symbol that consumers associate with your company and products. It’s worth is a direct measure of your marketing success. If you have a company, you already have a brand.

So what is your position? If you have a brand, you have a position. Do you know what it is? How can you affect it? What do you want it to be?

That’s really big question: What do you want your brand to be?

So how do you answer it? Build on what you have Eliminate the negative Look down the road

SWOT DIAGRAM Strengths Weaknesses Opportunities Threats

SWOT Analyze competitive marketing programs Focus on high return programs Invest in long term strategies

Build your Brand Lead the category Own a word in the consumers’ minds Create value for the company All this will help sales

PULLING THROUGH THE PIPELINE How does marketing help? Who really gets people to buy a specific wine? Role play it. What can it do that advertising can't? Can it build long term success, relationships, results?

DON’T JUST TALK; LISTEN “Propaganda ends where dialogue begins.” Marshall McCluhan

WHAT THE TRADE WANTS Best buys High scores News Interesting photos More buyers, better sales

WHAT CONSUMERS WANT Authenticity Personality Best buys High scores Interesting photos

WHERE DO YOU APPLY THIS? Promotions Placement Pricing Product! This is your brand. This is your message to the world.

MARKETING 101 IN SUMMARY Know your message Identify your audience Deliver the message Evaluate results

DEFINE EXPECTATIONS Goals and budgets Hard results vs. Image enhancement Be accountable—for all our sakes