1. Wine Marketing for the Millennium Generation Dr. Liz Thach * Kate Shields Sonoma State University, Wine Business Program

2. Topics About the Millennium Generation DVD: Advice From The Millennium Generation Findings & Opportunities in Millennium Wine Marketing Advertising for Millennials

3. Millennium Generation Also called Y Generation and Echo Boomers Born between 1977 and 1999 (wine consumers 21 – 27) 76+ million strong - largest consumer group in the history of the U.S. (Harris Interactive) – –Annual incomes totaling $211 billion – –Spend $172 billion per year and save $39 billion per year Represent the future market for most consumer brands SOURCES: 1) When Generations Collide; Lancaster & Stillman (2002); 2) Wine Market Council; 3) http://www.onpoint-marketing.com/generation-y.htm; and 4) Harris Interactive Study (2001)http://www.onpoint-marketing.com/generation-y.htm

4. Millennium Traits Technology Savvy – grew up with cell phones and Internet –Will read online menus and wine lists in advance Positive, Optimistic Thinkers –Can do attitude; working mothers Realistic Problem-Solvers Embrace Diversity –1 of 3 consider themselves non-Caucasian Believe in Balance –Saw their parents work too hard; want some fun Environmentally Conscious Seek Out Quality and Top Brands

5. In Comparison With… Gen X Wine Drinkers(46M) – –Late 20’s and 30’s – –More marginal wine drinkers – –59% female/ 41% male Baby Boomer Wine Drinkers (80M) – –Age 40’s – 60’s; more core – –Highly educated – –55% men/ 45% female – –High income; primarily White Traditionalist Wine Drinkers (75M) – –Ages 70’s-90’s – –Conservative – –Hard-working; loyal – –Drinking less wine now SOURCES: When Generations Collide; Lancaster & Stillman (2002 Population in Millions

6. DVD: Advice From The Millennium Generation To The Wine Industry Pay attention to us…….. Pay attention to us……..  108 interviews (51% Male; 49% female)  Age: 21 – 28; average age 23  Consumption levels: 66% drink wine sometimes  45% core (drink wine at least 2-3 times per month)  21% marginal (drink wine at least once every 2-3 months)  34% non-adopters

7. 5 Question Categories 1) Type of Wine You Like to Drink? 2) Why You Like/Dislike Wine? 3) Is Wine Hip/Cool? 4) Advice to the Wine Industry to Market to Millenniums? 5) Appealing Advertising?

8. Findings & Opportunities in Millennium Wine Marketing

9. Red Both White Red, 48% White, 18% Both 34% Major Findings: Preferred Type of Wine In sample, 48% preferred red wine: -- fruity -- smooth -- goes well with food -- MERLOT most common

10. Major Findings: Reasons Like/Dislike Wine I Like the Taste34 It Goes Well With Food20 It Makes Me Relax16 It Gives a Warm Buzz10 It’s a Good Social Drink8 I Drink Wine With Family * 7 I Like the Variety of Types/Flavors 6 To Educate Myself2 For Digestive/Health Reasons 2 Other (4 responses)na I Drink Wine Because…….. I DON’T Like the Taste 16 It’s too ritzy; not cool 3 I don’t know about wine 2 It gives me bad hangovers 2 Red wine stains my teeth 2 Other – 3 responses na I DON’T Drink Wine Because…….. * 45% say family drinks wine

11. Opportunities 1) Explore “taste” issues further –Why STRONG likes/dislikes for the taste of wine? –Flavor profiling of millenniums 2) New Red Millennium Wine –Develop a new “fruity, red wine” that is “hip/cool” and priced below $10 – but marketed as “quality wine for the new generation.” 3) Emphasize Certain Attributes - Relaxation; food connection; social situations

12. Findings: Is Wine Hip or Cool?

13. Findings: What Would Make Wine More Hip/Cool? It’s Too Elite To Be Hip/Cool16 Market To Young Generation15 Not Sure11 Not Possible5 Easier More Portable Packaging5 Associate With Cool People4 Cooler Labels4 Have at More Events3 Educate People On Wine3 Lower the Price2 Other (11 responses)1

14. Findings: What Events Do You Associate With Wine? Nice Dinners35 Weddings12 Special Events10 Elite & Formal Events9 Family Occasions8 Jazz Concerts8 Museums8 Fancy Parties8 Wine Tastings7 Art Events6 Music Concerts (not jazz)6 Social Events5 Dates (with girls)4 Food and Meals4 Holidays (e.g. Christmas)4 49ners Fans2 Casual Get-togethers2 Other (12 responses)na

15. Findings: What should the Wine Industry DO to become more consumer focused? Broaden Market Focus to Diverse Audiences (Market to Us!) 36 Advertise More32 Reduce Price; Provide Good Quality18 Educate Consumers on Wine; Simplify11 Provide More Wine Tasting Opportunities10 Better Packaging4 More Wine Bars3 Promote Health Benefits2 More Music Concerts2 Other (17 responses)na

16. Opportunities in Millennium Wine Marketing 4) Begin Strategic Marketing Planning – –Can’t afford to ignore this 76 million strong generation; – –The future consumers of wine – –Already drinking wine; but wine not perceived as hip/cool 5) Consider Innovative Packaging & Appealing Labels – –Light, portable, and convenient packaging (plastics, screw- caps; multi-packs) – –Colorful, hip labels with simple descriptions (chart to illustrate level sugar; fruitiness, etc.) 6) Emphasize Value Equation: Good Quality for Good Price – –Under $10; perceived as decent quality – –“Give us a wine that is priced between winos and high class”

17. Opportunities in Millennium Wine Marketing 7) Start Preliminary Advertising to This Group –Online; TV; Print Ads –Casual social situations; relaxed; fun – with Wine –Not to get drunk; but to enjoy and enhance life

18. Millennium Words to Describe Wine 0 5 10 15 20 25 30 35 40 Expensive Snobby Snooty Way Too Serious Natural Old Guys White Other Confusing Fun Easy Light Cool Hip Opportunity to promote NATURAL attributes of wine – perceived positively as something made from the earth, sun, and by hand. Number of responses

19. Findings: If You Had to Produce An Ad to Get People to Drink Wine, What Would It Look Like? Show people having fun and drinking wine19 Ads with young people drinking wine19 Just like a beer commercial, but with wine8 Show the natural way wine is made5 Find a good wine slogan for ads5 Show people eating food and drinking wine3 Show wine as part of romance3 Promote sexy wine commercials3 DO NOT promote sexy wine commercials3 Show wine with sports2

20. Examples of Current Advertising and Opportunities for the Future