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IMC Campaign for Northleaf WineryPrepared By: Kyle Bast, Simone Kapp, Shawn Krizan, Luke Martell, Bill Quinn, Ryan Ryczek, and Joe Wiersma4/28/2009Executive SummaryThis executive summary will give a very brief overview for the proposed IMC campaign for The Northleaf Winery. The SWOT analysis identified key strengths (creative thinking, wine variety, and location), key weaknesses (economic recession, limited marketing budget and its new existence), opportunities (health benefits of wine, increase in wine consumption and online wine sales), and threats (existing competitors and online wine retailers).Two target audiences were identified for this campaign. The first target audience consisted of young professionals ages 25-34. This target audience was selected because they spend the most money on alcohol and there is a large concentration of these people in the Milton area, especially around UW-Whitewater. The second target audience consisted of adults ages 45-64 in the Milton area. This target audience was selected because of its significant size and statistics have shown that they are the largest wine drinking segment. The proposed positioning strategy for Northleaf will focus on the price/quality relationship as well as portraying the wines as a social catalyst. This strategy was chosen because more and more people are looking for extra value with the products they purchase. Also, studies have shown that older generations like to consume wine in social settings and use wine as a social catalyst.Four objectives were chosen for the campaign: Increase foot traffic through the winery by 15-20% over opening month levels among people in the target audiences before the Highway 26 rerouting project starts in 2012.Increase online wine sales to 10% of total sales by February 2011 among people in the United States.Increase the amount of visitors that sign up for the mailing list by 20% each month until February 2010.Increase number of private party bookings from local organizations by 40% of current bookings by February 2010.The tactics chosen to reach the target audiences were based off of achieving the objectives. The key tactics chosen were: sales promotions, direct mailings, newspaper advertising and product placement. All of the proposed tactics are very simple and easy to implement, while still remaining focused on the aforementioned objectives.
Table of Contents TOC o "
h z u Situational Analysis PAGEREF _Toc228628873 h 6Assignment Definition PAGEREF _Toc228628874 h 6Analysis of Current Marketing Environment PAGEREF _Toc228628875 h 6Economic PAGEREF _Toc228628876 h 6Demographic PAGEREF _Toc228628877 h 6Social /Cultural PAGEREF _Toc228628878 h 7Political/Regulatory PAGEREF _Toc228628879 h 7Technological PAGEREF _Toc228628880 h 8Competitive PAGEREF _Toc228628881 h 8SWOT Analysis PAGEREF _Toc228628882 h 9Strengths PAGEREF _Toc228628883 h 9Weaknesses PAGEREF _Toc228628884 h 10Opportunities PAGEREF _Toc228628885 h 11Threats PAGEREF _Toc228628886 h 11Client’s Current Promotional Programs PAGEREF _Toc228628887 h 12Samples of marketing communications PAGEREF _Toc228628888 h 13Key Competitors PAGEREF _Toc228628889 h 13Analysis of how the market for this product category is generally segmented PAGEREF _Toc228628890 h 15Special Topic PAGEREF _Toc228628891 h 15Target Audience PAGEREF _Toc228628892 h 16Background PAGEREF _Toc228628893 h 161st Target Audience Analysis PAGEREF _Toc228628894 h 16Functional and Emotional Benefits PAGEREF _Toc228628895 h 18Decision – Making Process PAGEREF _Toc228628896 h 19Relevant Reference Groups PAGEREF _Toc228628897 h 20Perceptions PAGEREF _Toc228628898 h 212nd Target Audience Analysis PAGEREF _Toc228628899 h 22Functional and Emotional Benefits PAGEREF _Toc228628900 h 24Decision-Making Process PAGEREF _Toc228628901 h 24Reference Groups PAGEREF _Toc228628902 h 26Perceptions PAGEREF _Toc228628903 h 26Intermediary target audiences PAGEREF _Toc228628904 h 27Strategic Plan PAGEREF _Toc228628905 h 29Recap Target Audiences PAGEREF _Toc228628906 h 29SWOT Matrix PAGEREF _Toc228628907 h 30Recap SWOT and Competitor Analyses PAGEREF _Toc228628908 h 30Recap of Special Topic PAGEREF _Toc228628909 h 31Problems and Opportunities for Young Professionals PAGEREF _Toc228628910 h 32Positioning Young Professionals PAGEREF _Toc228628911 h 32Problems and Opportunities for adults ages 45-64 in the Milton area PAGEREF _Toc228628912 h 32Positioning adults ages 45-64 in Milton PAGEREF _Toc228628913 h 33Situational Analysis Expansion PAGEREF _Toc228628914 h 33Positioning Strategy PAGEREF _Toc228628915 h 33Strategy for Target Audience #1 PAGEREF _Toc228628916 h 34Strategy for Target Audience #2 PAGEREF _Toc228628917 h 34Competition PAGEREF _Toc228628918 h 35Objectives PAGEREF _Toc228628919 h 36Evaluation PAGEREF _Toc228628920 h 39Tactics 1 PAGEREF _Toc228628921 h 40Recap for Tactics 1 PAGEREF _Toc228628922 h 40Theme/Big Idea PAGEREF _Toc228628923 h 41One-to-One Marketing PAGEREF _Toc228628924 h 41Direct Mail PAGEREF _Toc228628925 h 42Relationship Marketing PAGEREF _Toc228628926 h 43Website PAGEREF _Toc228628927 h 44Sales Promotion – Consumer-Oriented PAGEREF _Toc228628928 h 45Trade-Oriented Sales Promotions PAGEREF _Toc228628929 h 47Public Relations PAGEREF _Toc228628930 h 47Tactics 2 PAGEREF _Toc228628931 h 49Strategy & Tactics 1 Recap PAGEREF _Toc228628932 h 49Media Objectives PAGEREF _Toc228628933 h 50Media Strategy PAGEREF _Toc228628934 h 51Media Choices PAGEREF _Toc228628935 h 51Newspaper PAGEREF _Toc228628936 h 51Television PAGEREF _Toc228628937 h 53Banner PAGEREF _Toc228628938 h 54Every Point of Contact Builds the Brand PAGEREF _Toc228628939 h 55Overall Budget PAGEREF _Toc228628940 h 56Appendix PAGEREF _Toc228628941 h 58Works Cited PAGEREF _Toc228628942 h 58Website Sources PAGEREF _Toc228628943 h 58Book Sources PAGEREF _Toc228628944 h 66Online Database Sources PAGEREF _Toc228628945 h 67Journal Article Sources PAGEREF _Toc228628946 h 67<br />Situational Analysis<br />Assignment Definition<br />The Northleaf Winery will open for business on February 14 of 2009 so there are only a few promotions and policies currently in place. After talking with the owner of the winery Gail Nordlof, it appears as if she wants to target the normal adult wine drinkers, but she also made it clear that she wants to target young professionals with specialty wines, especially the Wisconsin wines. There is not really an existing slogan or positioning strategy currently in place so there is a great opportunity to help make this business known to the public.<br />Analysis of Current Marketing Environment<br />Economic<br />The United States’ economy has been faltering recently forcing almost everyone to cut back on their spending. With that being said, the sales for alcoholic beverages in the U.S. have remained fairly strong. According to Nielsen studies, 80% of U.S. consumers state that they are spending the same amount of money on alcohol as they did in the previous year (Euromonitor International). Growth in products like high priced wines and premium lagers are expected to slow down in the upcoming years, but demand for medium and lower priced products is expected to increase (Euromonitor International). The overall conclusion from the research on the economic status of the wine and alcohol industry is that people are still willing to spend money for the products, but they are trading down. The less expensive wines should be the most marketed items because those are the ones the consumers will be most willing to buy. The higher end wines should not be totally ignored, but consumers are less willing to spend the extra money on those products at this time. <br />Demographic<br />There are some very interesting trends when it comes to who is most likely to consume wine. One major trend was that the estimated number of people who drank wine in the past year increased in every age segment until the 65+ segment where it slightly decreased (Mediamark Research). According to the report done by Mediamark Reporter, 33.6% of people in the 55-64 age segment had consumed wine in 2008 and the 45-54 age segment was not too far behind coming in at 33.0% (Mediamark Research). With that being said, there is a trend starting in Generation Y where people are beginning to try wine at a younger age which will be talked about more in the social/cultural section (Euromonitor International). <br />Another very telling trend was that as the annual income for a household increased the more the likely they were to drink wine. Only an estimated 22.7% of people with an annual household income under $20,000 had consumed wine in the past year, but that number jumped up to 50.3% for people with a household income over $150,000 annually (Mediamark Research). What makes this trend even more convincing is that the number of people who consumed wine increased as the household’s income increased in all but one income bracket (Mediamark Research). This is very important because according to research done by E & J Gallo, the 25% of customers who really know their wines make up about 68% of the sales (Tarnowski, 2009).<br />Social /Cultural<br />It seems like there has always been a notion that wine is a very high class drink and is only for the people who make a lot of money. Jeff Cioletti, a writer for Supermarket Business, described the culture of wine well when he said “When one thinks of wine, one often visualizes an elegant dinner by candlelight with the gentle sounds of a string quartet playing in the background” (Cioletti, 2001). The United States, however, is becoming a more relaxed wine culture compared to European countries like France or Italy because wine is not a key of a part of society like it is there. (McCarthy & Ewing-Mulligan, 2002). Part of the reason why the U.S. wine culture is becoming a bit more relaxed is that the U.S. only ranks 34th in the world in yearly wine consumption (McCarthy & Ewing-Mulligan, 2002). Another reason why wine consumption is lacking is that according to Ted Baseler, President and CEO of Stimson Lane Vineyards & Estates, “Generally, people are intimidated by wine” (Cioletti, 2001), This is a huge reason why a lot of younger consumers are hesitant to drink wine until they get older. They are afraid that they will not fit in with the prim and proper culture, but this trend is beginning to change in the United States with Generation Y (Euromonitor International). Knowing this kind of information is very important to the marketing of a winery because it gives an understanding of what the different target audiences are and what they are looking for. <br />Political/Regulatory<br />There is much to consider when making wine, selling wine, and shipping wine. Many rules and regulations come about when selling and making wine in Wisconsin. Wine that contains less than 14 % alcohol by volume is subject to a tax of 6.605¢ per liter. Wine that contains more than 14% alcohol by volume but less than 21% alcohol by volume is subject to a tax of 11.89¢ per liter (Liquor Tax, Distilled Spirits, Cider, and Wine, 2009). Federal product taxes on wines range from $1.07 to $3.30 per liter, with special credits available for small wineries (EuroMonitor International). There are also a number of permits that must be acquired in order to sell wine in Wisconsin. In order to sell wine in Wisconsin a person must acquire a Wisconsin winery license (WWI); this license cost $200 and is good for 2 years ( Liquor Tax, Distilled Spirits, Cider, and Wine, 2009). In order to ship wine out of Wisconsin a person must acquire two licenses, an out-of-state shipper license (FF) for $500 for 2 years, as well as a Wisconsin direct shipper license (WDS) for $200 for a 2 year license (Liquor Tax, Distilled Spirits, Cider, and Wine, 2009). Also when selling wine, taxes have to be paid on the wine sold both locally and online. Tax is paid by the Wisconsin wholesaler who imports spirits or wine from a foreign country, the out-of-state shipper who ships spirits or wine into Wisconsin from other states, the Wisconsin manufacturer who bottles or produces spirits or wine in Wisconsin, and the wine direct shippers who ships wine directly to consumers in Wisconsin (Liquor Tax, Distilled Spirits, Cider, and Wine, 2009). Another issue that arises when bottling wine is the labels that are applied to the bottle. All labels must be approved by the federal government (Wisconsin Department of Revenue, 2008). Another challenge that wine makers face is whom they can sell their wine to. Under state laws wineries are prohibited from selling wines directly to liquor stores, bars, and restaurants. Instead they are required to use a distributor. If wineries join a co-op they are able to sell their wines using the co-ops name, this allows them to enter another sector of retail sales and can boost sales by 10 - 40% (Haverkorn, Wisconsin Wineries Form Co-Ops , 2008). Wineries also have to be careful whom they ship to when selling wine online. Only certain states permit wine shipments, and even then a permit may be required which can range from $10 a year to $600 every two years (Wine Institute, 2008). Only 27 states allow wine to be shipped and they are; California, Colorado, Connecticut, Florida, Idaho, Illinois, Iowa, Louisiana, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, South Carolina, Texas, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming (Wine Rack Butler). There are many regulations and laws to consider when deciding where to sell wine, how to sell wine, where to make wine, and whom you sell wine to. <br />Technological<br />There are many parts on which wine can be benefited by technology. One way wine sellers have benefited is from internet sales. Online wine sales allow independent wineries to sell their wine to select states without having to go through a distributor. Currently, online wine sales only account for 1-2 % of all direct wine sales (Gunn, 2008). Online wine sales may be suffering in the United States due to regulations, where as in Europe a March 2007 study found that 16% of regular wine drinkers in the UK had bought wine online in the previous six months (Wark, 2008). Electronic temperature monitors are also helping wineries ship and control the quality of their products. Information on exactly what temperatures the product reached and when, can be downloaded via a portable reader into a computer spreadsheet. If there is a problem, the data shows where it occurred, which is helpful in determining who is responsible (Haverkorn, ELECTRONIC LABEL HELPS PREVENT “COOKED” WINE, 2008). Advances in technology are also effecting how wine is made. Recently, Roger and Guy Kebble created a technology that eliminates sulfur from wine. Sulfur is the leading ingredient attributed to “hangovers” and allergic reactions to wine. The “SuperPure” technology is based on ultraviolet applications and laminate flow of product, and the time the product is exposed. The technology is also described as cost-effective and easy to use and did not destroy natural components of the liquids, but most importantly removed the need for sterile filtration, which at times reduced the intensities of flavor (Business Day, 2008). Technology changes and advances are an important part to every business and staying on pace with the changes is a sure way to keep a business strong. <br />Competitive<br />Competition can come from everywhere; it could come from a local grocery store, liquor store, other wineries, both local and online, or wine associations. Often grocery stores provide access to cheaper wines, where as liquor stores will stock the higher end wines, overall, however, local wineries offer the best service and advice as to what wine to select due to their expertise (Lessner-Gioquindo, 2009). Another form of competition to the local winery comes from online wine retailers. Wineweb.com claims to offer over 170,000 different wines from 35,000 different wineries (WineWeb Enterprises). This is just one of many online wine offerings. Many local and independent wineries sell their wines directly from their websites. Wine associations or co-ops are also a direct form of competition. The Wisconsin Winery Association currently has 36 members and often represents its members at local events and state fairs (Wisconsin Winery Association, 2009). Local wineries pose threats to each other. Wollersheim Winery in Prairie du Sac, Wisconsin is one of America’s oldest winery estates, the vineyards were established before the Civil War (Wisconsin Winery Association, 2009). These well established and nationally recognized wineries have perfected the art of wine making and have established a firm stake hold in the market. Competition can come from anywhere and establishing a company as an industry leader is one of the best ways to combat competition. <br />SWOT Analysis<br />StrengthsWeaknesses Creative Thinking Unique Wine Names and Labels Wine Variety History of Northleaf Winery Location of Winery New/Small Business Economic Recession Limited Marketing Budget Small Town Limited Quantity and Selection of WineOpportunitiesThreats Health Benefits of Wine Growth of Wine Consumption Online Wine SalesAvailability of Wine Established Customer Markets Existing Wineries Online Wine Retailers<br />Strengths<br />The Northleaf Winery owned by Gail and John Nordlof features a variety of strengths personally, as a product, and as a place of business. On a personal base, Gail is very creative and as she puts it, “likes to think outside the barrel.” Gail enjoys coming up with her own ideas at the winery like the unique wine names and customized wine labels. Her unique wine names come from local historians which she feels “gives a historic touch to the wine that’s produced.” The custom labels are not only used on her wine but have also been customized and auctioned off by the Milton Historic Preservation Society. Her strengths as a person is what led her to create the winery and play a significant role in her product and place of business.<br />A winery is defined to be a place of business for making wine which is also the number one priority for The Northleaf Winery. The winery is unique compared to larger wineries due the fact that its wine is handcrafted in smaller batches. The smaller batches allows for closer attention during the winemaking process in case something unexpected goes wrong. If something does go wrong it’s easier for them to correct the issue due to the smaller batches. The Northleaf Winery has a wide variety of wines due to its worldwide access to grapes locally and from locations in California and South America. The grapes make their way to Wisconsin where the wine is produced in the newly restored Historic John Alexander/Sunnyview Orchard Warehouse.<br />The Northleaf Winery is located right off of Highway 26 in Milton, WI. This location is significant because it gets on average 20,000 citizens passing by each day. The building is on the National Historic Registry and has a long history of being home to Alexander Wheat Warehouse, Badger Garage, Machine Company, and the Sunnyview Orchard Warehouse. The local crowd has a sense of pride over their Milton Historic district which includes historic places of business such as the Milton House and The Northleaf Winery. Milton College Alumni from all over also take pride in the historic winery and can’t wait to get their wine. <br />Weaknesses<br />The Northleaf Winery is a new small business that has many opportunities but also faces a large number of challenges. Starting a new business is hard enough, let alone in a down economy such as the one we are currently in. People are cutting back on their expenses and they might see wine as a luxury and decrease their consumption. As a new business, Northleaf is relatively unknown and must get the word out that it is in business and has an excellent product. This alone is hard to do because they have a limited marketing budget. Ideally it would like to run commercials on all of the local television stations and have ads in the local magazines and newspapers. This is not a possibility, however, because the funds that it has need to be used in other aspects of the business. <br />Another potential weakness of this startup business is the fact that it is located in a small town. With between 5,000 and 6,000 people living in the town of Milton, the initial customer base is limited. While the Nordlofs would like the business to extend to bigger cities like Janesville and Madison that will be a little harder with Northleaf’s limited marketing budget. The town of Milton gets a good amount of traffic that comes through on Highway 26, but there are plans to reroute that Highway around the city, reducing the amount of traffic past the winery. This could be detrimental to the business if it does not get the word out about the winery before the construction starts. <br />Being a small business, Northleaf also faces challenges with its products. The winery is small compared to many others in the country and that means that it has a relatively small quantity and selection of products. This could mean that it specializes in certain wines but it also limits the ability to appeal to a large range of customers. Also being the size that it is, it isn’t able to sell its products to other stores through a distributor. This limits the places where people can buy their wine and therefore gives their wine less exposure. It also faces a relatively large number of competitors with other wines being sold in liquor stores, grocery stores, other wineries in the state, and also online.<br />Overall, The Northleaf Winery has a great opportunity to establish itself as a premier winery and historical site, but as a new small business it faces a number of challenges to overcome in order to get to that point. <br />Opportunities<br />There are many opportunities available for The Northleaf Winery. There are many different types of wines that are able to be created with different types of fruits that appeal to many different audiences. According to one article that appeared on NBC Bay Area, California wine sales have been on the rise and people are looking for cheaper bottles of wine in the recession (Sifuentes, 2009). “Tony Carlucci, an enologist and instructor in geography, said statistics have shown that today's generation has been drinking more wine than previous generations,” said an article by Laura Cordle (Cordle, 2009). The article goes on to say that Carlucci has found the average age of a wine drinker to have moved from age 45 to age 24.<br />Health benefits are an incredibly important opportunity for a winery. If in moderation, women no more than one glass a day and men no more than two glasses a day, wine has been shown to reduce the risk of heart disease, certain cancers and slow the progression of neurological degenerative disorders according to Joy Bauers article “Is Wine Good For You?”<br />Threats<br />There are many external threats that affect The Northleaf Winery. These are mainly due to its new existence, the number of competitive wineries in the market today, and laws prohibiting the sale of winery products to retailers. Predominantly, the threats affecting Gail and the winery most are the wide availability of wine products, the wineries new existence, and the rerouting of Hwy 26. The location of the winery in a small town will add to the difficulty of marketability as well as the competitive online wine business. Also, the fact that Northleaf is a new business without a wide customer base will make it even more difficult to capture market share of the wine industry.<br />The Northleaf Winery has only recently become a part of Milton, WI and faces many challenges establishing its wine in the market today. It becomes one of over 40 wineries in the state of Wisconsin alone and also has to compete with domestic wines as well as imported wines from all over the world. Northleaf is also one of a few wineries in Wisconsin that does not belong to the Wisconsin Winery Association which hosts a Wine Garden at the Wisconsin State Fair every year promoting the local wines throughout Wisconsin (Wisconsin Winery Association, 2009). Out of more than 200 million places to buy wine throughout the U.S., Northleaf draws in a target market of 2.2%. Supermarkets and liquor stores account for 23.7% of wine sales (Mediamark Reporter). That difference in the percentage of sales poses a threat to Northleaf’s overall target market and sales. Gail was particularly worried about the draw to her particular wines rather than the more popular wines from well known places such as Sonoma and Napa Valley. <br />The online sale of wine is becoming more and more popular in today’s technological era and can be a great opportunity for Northleaf Winery. Although, instead there is a competitive edge for the vast majority of wine producers from more well known areas that have been selling their wine online for years. This is a major threat to her online business, because she stated that her licenses allow her to sell to 27 particular states and she must receive approval from some of those states in order to ship her products there. Another threat is state laws that prohibit wineries from selling their products directly to liquor and grocery stores, because they must use a distributor and join a co-op (Wine & Spirits Daily, 2008). Northleaf would have to join the current co-op, Wisconsin Winery Co-op which has 16 members, otherwise create a new one with other small wineries who bottle less than 25,000 gallons of wine each year. Gail does not particularly like the co-op in place at the moment, due to the fact it is run with a marketing distributor. Northleaf is losing 10%-40% of business sales that are normally accounted by other wineries in this co-op. <br />Overall, Northleaf has many threats that stand in the way of a productive business. The wide variety of wineries already in Wisconsin, along with the domestic and imported wines creates an uphill battle for Northleaf to succeed. The online sale of wine produces a great opportunity for Gail to promote her business, but once again some stipulations and other well known producers hold a large majority of the target audience. The possible creation of another co-op in Wisconsin and joining the Wisconsin Winery Association could help out tremendously to all the external threats that stand in Northleaf’s way.<br />Client’s Current Promotional Programs<br />The Northleaf Winery currently has a couple of marketing promotional programs in place. The website is a highly functional way to promote the winery. Currently, the website provides information about the winery including the location, the history surrounding the winery, information about the wine that is made, pictures of the winery, and how to get in contact with the owner/operator of the winery. The website is very visually pleasing and easy to use. Northleaf tries to keep the historic aspect of the winery present in the promotion of the winery. There is as much information given about the past aspects of the winery as is given about the present and future aspects of the winery. The website also provides a map to the winery.<br />The Northleaf Winery also offers tours of the winery which includes the past history of the building as well as what it is used for today. This tour provides the customer with an in-depth look at how the wine is made. The tour also informs the customer about some of the history of Milton which, for some, may be their home town. Taking this tour allows the customer to really get to know what they are drinking which makes them that much more excited to try Northleaf’s wine.<br />The Northleaf Winery also offers wine tasting. Wine tasting can be enjoyed alone or with a group of friends. It is a chance for the customers to try the various types of wine offered at Northleaf. This tasting experience allows the customer to find their favorite type of wine while tasting a variety of others. <br />Northleaf has had a magazine article in Discover. They also had a small ad in a couple of different issues of The Four Lakes Area. Northleaf also put a newspaper article in the Milton Courier Ad at www.visitmilton.com. Bank of Milton also sponsored an ad in Rock County Magazine. All of these print media ads gives Northleaf a good stepping stone for business promotion. <br />These various promotional programs help heighten name recognition, inform customers about the wine offered, and explain the overall mission of The Northleaf Winery, but there is room for more promotional programs. Northleaf could have a wine club where members would come once a month to taste wines and enjoy good company. <br />Samples of marketing communications<br />The website provides the bulk of the marketing communications. The website provides the customer with the Northleaf logo. The colors are dark and old giving off the feeling of a seasoned, old fashioned winery. This logo gives off a rustic feel to the winery and gives off the impression that the wine made here is original, creative, and respected. <br />The wine bottles are uniquely wrapped with Northleaf Winery brand wrapping which informs the customer and anyone else enjoying the wine where that specific bottle came from and what the name of the wine is. This form of branding will provide name recognition as well as a way to distinguish one bottle from another. <br />Key Competitors<br />The first key competitor for The Northleaf Winery that will be talked about is supermarkets. An estimated 39.4% of adults who consumed wine in 2008 bought wine at a supermarket during the last six months of 2008 (Mediamark Research). The city of Milton currently has an Abbyland Foods and Piggly Wiggly while the nearby city of Janesville has a Pick n’ Save, two Woodman’s Food Markets, an Aldi Foods, and a Sentry Food Store. (“Google Maps”). All of these supermarkets, with the exception of Abbyland Foods, would be considered supermarket chains. This is especially important because supermarket chains have a huge advantage in buying power over specialty stores like wineries and thus can offer wines to the consumer at a lower price (“Little: Selling wine in supermarkets would hurt liquor stores,” 2009). Another strength of supermarket chains is that buying wine there is more convenient for the consumer. An estimated 86.6% of households in the U.S. made at least one weekly trip to the supermarket in 2008 so buying their wine at a supermarket saves them an extra trip to a place like a winery or a liquor store (Mediamark Research). One huge weakness for supermarkets, however, is that they are not able to carry a wide selection of wines due to limited shelf space. Another weakness of supermarkets when it comes to selling wine is that they typically do not have people on staff who have a good knowledge of the various different types of wines. When people go wine shopping they are looking for someone who knows wine and will give them a recommendation and most supermarkets are unable to offer this type of service (Cioletti, 2001).<br />As was said in the previous paragraph, all but one of the supermarkets in the cities of Milton and Janesville are considered supermarket chains. According to a study done by Media edge in a poll of over 15,000 shoppers in 26 countries, end-cap displays were found to be the most effective form of supermarket advertising while advertising in paper publications, shelf signs, and product demos rounded out the top four (Applebaum, 2005). Just from living in this area we can say that the bulk of the advertising done by these supermarkets seems to come in the form of print ads and coupons in local newspapers like the Jefferson Daily Union and the Janesville Gazette. Pick n’ Save, Piggly Wiggly, and Aldi are big enough chains that they have the funds to produce television ads and that is another way those three companies market to consumers. One last marketing device that all seven of these companies use is a website. The websites for Piggly Wiggly, Pick n’ Save, and Sentry did a lot of advertising for current deals and promotions whereas the Aldi and Abbyland Foods websites gave much more general information about what types of products they carry and where they are located (“Aldi”) (“Abbyland Foods”) (“Piggly Wiggly”) (“Pick n’ Save”) (“Sentry Foods”) . The Woodman’s website was extremely vague and only gave store locations (“Woodman’s Food Markets”). Being that these businesses are supermarkets, they seem to be trying to position themselves as having lower prices than a place like a winery and also offering more convenience to the consumer.<br />Two more key competitors for The Northleaf Winery are Locker Room Liquor and Beverage Mart liquor stores. An estimated 47% of adults who consumed wine in 2008 bought wine at a liquor store in the last six months of 2008 (Mediamark Research). The city of Milton currently has two liquor stores, Locker Room Liquor and Beverage Mart. (“Google Maps”). One of the advantages of buying wine at a liquor store instead of a winery is that liquor stores also sell other kinds of alcohol so it becomes more of a one-stop shop. Another advantage of buying wine at a liquor stores is that the staff there is more knowledgeable when compared to a place like a supermarket (Love, 2007). This is vital because as was stated in the previous paragraph, when people go wine shopping they are looking for someone who knows wine and will give them a recommendation (Cioletti, 2001). There are also some weaknesses of buying wine at a liquor store. One weakness is that shopping for wine is still just shopping and it lacks giving the customer a buying experience that a place like a winery can offer (El Cohen & Ben-nun, 2009). Another weakness of buying wine at liquor stores is that liquor stores typically do not offer the selection of specialty wines that a winery can offer because they have limited shelf space. Many wineries, on top of making traditional wines, also make their own specialty wines with all sorts of different tastes and flavors that are unique to a particular region or culture (McMahon, 2007).<br />Locker Room Liquor and Beverage Mart in Milton are both small local businesses with estimated average sales both around $430,000 annually (“Beverage Mart”) (“Locker Room Liquor”). Neither of these businesses have websites, but Locker Room liquor is a member of the Milton Chamber of commerce whereas Beverage Mart is not (“Milton Chamber of Commerce”). Overall it does not seem like either of these two businesses does much in the way of marketing because information on both of these businesses was very hard to find. With the limited information available it is difficult to determine how these businesses are trying to position themselves, but with their annual sales being where they are one would think that they are trying to be more of a local small business.<br />The last key competitor for The Northleaf Winery that will be talked about is the Apple Barn Orchard and Winery in Elkhorn, WI. This is a key competitor for Northleaf because it is the closest winery to Milton (“Wisconsin Winery Association”). A strength of the Apple Barn Orchard and Winery is that it has an abundance of wine varieties that can accommodate the tastes of many different consumers (“Apple Barn Orchard and Winery”). Another strength is that they also have activities such as strawberry picking and apple picking that draw customers to the business (“Apple Barn Orchard and Winery”). Any time that a business has multiple aspects that draws in customers it is a huge strength. One weakness of the Apple Barn Orchard and Winery, however, is that they were established in 2004 so they are not very well established in the community (“Wisconsin Winery Association”). Another weakness it that they charge $5 per person for tours whereas Northleaf plans to charge no fee for tours (“Apple Barn Orchard and Winery”). <br />As far as marketing is concerned for the Apple Barn Orchard and Winery, it seems as if its website is the best avenue to find out information about the business. The website is very well designed and has information on the different types of wines they make, the tours they give, their harvest schedule, and a photo gallery (“Apple Barn Orchard and Winery”). Apple Barn is also a member of the Elkhorn Chamber of Commerce which is another good way of getting their name out to the public (“Elkhorn Area Chamber of Commerce”). Apple Barn’s website makes it look like they are trying to position themselves as a family atmosphere with an old style feel. The winery’s name also makes it sounds like a family atmosphere.<br />Analysis of how the market for this product category is generally segmented<br />Most wineries have the regular segments of older professionals and wine enthusiasts. These people include the middle to upper-class and middle-aged men and women. The segment for The Northleaf Winery includes those people; however, it also includes younger professionals, historical enthusiasts, tourists, and Milton alumni. In this campaign there will be an emphasis on the young professionals because this will catch the eye of the new and future wine drinker. Northleaf Winery could also try to target the Milton graduates as they may like to keep close to their roots and have products that are from their home town, or a town they associate themselves with.<br />Special Topic<br />Branding was chosen as a topic of special interest that Northleaf Winery could benefit from. Although there are established brands within the wine market, none of them have a very significant market share. According to Belch and Belch branding a product is “important from a promotional perspective because brand names communicate attributes and meaning. Marketers search for brand names that can communicate product concepts and help position the product in the customers’ minds” (Belch, 2007). Brand recognition can drive both e-commerce and store sales. Brand recognition drove Coach sales in 2006. Because of Coach’s well recognized brand and targeted email campaigns Coach posted web sales of $114 million in 2006, up by 34.1% from web sales of $85 million in 2005. Coach also had more than 40 million unique visitors to its site in 2006 (Internet Retailer, 2007). This remains relevant to Northleaf and its wine brand. By creating brand recognition Northleaf would be able to generate more e-commerce and help drive toward the goal of increasing online wine sales to 10% of total sales by February 2011 among people in the United States.<br />Brand names also are important to a new product. Being able to create a brand image that is unique to what type of wine is in the bottle would also be beneficial to Northleaf Winery. Siam Winery in Thailand has been able to make itself into the wine of Thailand through its unique branding strategy. According to Martin Roll, “Over the years Siam Winery has launched three main brands: Monsoon Valley, Sabai and Spy. Each brand of wine has been given a distinct composition, unique taste and a defined usage situation” (Roll, N.D.). Northleaf Winery would be able to benefit from a similar strategy. If Northleaf would develop brand names specific to what kind of wine is in the bottle customers would be able to walk into the store and pick up a bottle and immediately know what kind of taste it will have and what the ideal drinking conditions for the wine are. Creating a distinct brand image would give Northleaf an advantage as it did for Siam Winery and effectively increase foot traffic to the store and therefore contributing to the goal of increasing foot traffic through the winery by 15-20% over opening month levels among people in our target audiences before the Highway 26 rerouting project starts in 2012.<br />Overall, it would appear that branding will remain as a key contributor to Northleaf Winery and the goals that have been established for it. Creating a distinct brand name and image will contribute to increased internet sales and in store sales. Branding will also help with creating knowledge about the wines offered and therefore make buying Northleaf wines less intimidating to the younger crowd. <br />Target Audience<br />Background<br />The following section will discuss the target audiences for Northleaf Winery. Two different consumer target audiences as well as two intermediary target audiences will be identified. Some conclusions can be made from the SWOT and environmental analysis. First, people aging from 45-64 drink the most wine. Many wine drinkers generally have an annual household income of 150,000 or above. Competition is very high as there are over 170,000 wines from 35,000 different wineries. Northleaf wine drinkers are generally segmented on one end or the other. Most of Northleaf customers will fit into one of these two segments, the older wine enthusiasts segment or the younger professional segment. The owner has asked that some attention is focused on attracting wine drinkers from age 30-60 and put special interest on younger professionals and older wine lovers. <br />1st Target Audience Analysis<br />The owner from Northleaf knew that she wanted to expand into the young professional market. Thus, young professionals will be the first target market. The upcoming generation Y group includes those ages 25-34. This market is going to include both males and females. Since the winery is located in Milton, having such close proximities to a major university, the main market of young professionals will be those in the Whitewater area. <br />This target is sufficient in size because it is about 8.4% of the total population in Whitewater; there are a little over 1,100 people in the age group that will be targeted (MRI Reporter, 2008). Although the owner had not initially looked into the Whitewater area as much as young professionals in general, this area would be a good starting point for her since it has many young professionals, current and future. Besides 45-64 year olds, the age segment of ages 25-34 spends the most money on alcoholic beverages in the U.S. <br />This target is actionable because those people with either a bachelors or masters degree spend about 40% more on alcoholic beverages than those without a degree (Bureau of Labor Statistics, 2007). Studies have also found that generation Y focuses more on spending time with their friends (Trunk, 2007). According to Upload Experience 56.8% of men and 43.2% of women aged 22 - 31 lived at home in 2002. This may be a minor setback for this target market, however, it may also allow for more disposable income in this market. <br />The reason this group is identifiable is because they have a tendency to be friend oriented. This includes going out with friends, but it also includes the possibility of staying in with friends and having a glass of wine. Many young professionals appreciate the life and activities of older professionals and wine is a part of the older profession practice.<br />Another reason this target market was chosen is because of the accessibility of the audience. There are many ways that young professionals may be reached, whether it is alumni programs or through current student programs. Since this group is from the Whitewater area they are most likely familiar with the city of Milton and would be appreciative of something so close and familiar coming to keep in contact. <br />“Generation Y is more immersed in online and mobile activities including social networks (86%), podcasts (57%), blogs (50%) and text messaging (96%) than any other generation.” (Consumer Behavior Report). According to Brand Home, Joe Frankel said, “Gen Y is less rooted in traditional social morals and ethics. They are easier targets, because they have grown up in a culture of pure consumerism. They're more likely to buy because they see buying as a part of life. They're way more tuned into media because there's so much more media to tune into.” (Brandhome, 2002).<br />Many people that fall into the generation Y category, aside from moving home with their parents upon graduating college, took international trips to experience the world. This is one thing that has affected the world. Traveling after college is not irresponsible because these young professionals are gaining experience in the world that is progressively growing smaller before entering the workplace. (Upload Experience, 2005)<br />Generation Y has had many things that differentiated them from previous generations. “Wine consultants survey the country and find that 21- to 35-year-olds prefer wine to beer,” said the Wine Marketer (Tasker, 2008). This audience, however, does not have much brand loyalty.<br />Functional and Emotional Benefits<br />Young professionals can benefit from wine in many ways. The first is wine can actually improve health. In a study of almost 50,000 women, those who drank moderately (one drink per day), gained less weight than women who abstained (Formichelli, 2007). Red wine in particular helps retain and produce many key chemicals that the body produces; these include Flavonoids, Melatonin, and Resveratrol. Flavonoids are thought to help protect the body from cancer because of their antioxidant properties. They help the body neutralize certain free radicals that can trigger the cellular activity that may lead to cancer. Melatonin — a substance present in red wine and some foods and that humans naturally produce in small amounts — is thought to delay the oxidative damage and inflammatory processes typical of old age. Resveratrol is produced naturally by grape skins during red wine's fermentation process. Several studies have suggested that Resveratrol may explain the "
— why the French appear to be able to consume a diet higher in fat than normal while enjoying a comparatively lower incidence of heart disease. High doses of the chemical appear to mimic the effects that a 20 to 30 percent reduction in calories in the typical diet would have. Researchers say such a diet is effective at prolonging life in many species. <br />Wine has been credited with more than keeping a healthy heart and delaying the aging process. It has also shown promising results in preventing prostate cancer, diabetes, Alzheimer's disease, leukemia and some common food-borne illnesses. (CBCnews, 2008). The drinking of wine, red wine in particular seems to help prolong and promote healthy living. Young professionals are an active group of people and are constantly looking for a way to stay healthy and live longer. Alcohol is a relaxant so, in moderation, it can reduce feelings of anxiety and inhibitions (Frank, n.d). Young professionals often are faced with stressful working conditions and a feeling of uncertainty. With the current economic situation no job is secure; many young professionals may benefit from a glass of wine to help unwind for a stressful day at work. It can be concluded that a less stressed worker will produce better quality of work and enjoy their job far more than those who are under more stress. This is especially true for a startup employee such as a young professional just entering a new sector of his/her life. <br />There are emotional benefits that also can be derived from drinking wine. Many young professional groups host wine and liquor tasting parties as a form of networking events. Many young professionals are often in new cities where they have few long term friends. Wine can be used as a social elixir and help lead to new personal and professional friendships. Young professionals often host dinner parties to become better acquainted with potential friends and colleagues. Wine is often a focal point of the dinner and helps promote socialism. Bringing a bottle of wine to a dinner party as a gift to the host is a common occurrence (Professors House, n.d). Bringing or supplying a proper bottle of wine will help ensure that your guests or hosts will remember you. This is crucial to young professionals developing new relationships. When young people drink wine, it promotes a sense of cultural identity and social status; this sense of belonging to a higher class promotes a better self-perception (Barrena, 2009). <br />Decision – Making Process<br />The decision on which wine a young professional chooses to purchase or consume doesn’t vary much between age groups. Most buyers of wine are overwhelmed with the amount of wines that are available for consumption and many people are hesitant to ask for help in selecting a wine because they do not want to feel out of place. This is where the initial problem arises. Most buyers of wine purchase wine either in a retail store and/or at a restaurant. The biggest problem that consumers encounter is taste when buying wine. Retail stores don’t allow taste testing which makes the choice of which wine to purchase all that more difficult. Consumers often tend to acquaint taste with price and on average the typical consumer only wants to spend an average of $19 per bottle for casual consumption at home, and $31 per bottle for a gift or special occasion (Thach, 2008). When purchasing a wine at a restaurant, taste and pairing with food are the top two concerns. Most restaurants provide wine tasting so this alleviates finding a wine that a person will appreciate. Most consumers are willing to spend $22 per bottle at a restaurant and $43 per bottle when eating at a fine dining establishment (Thach, 2008). The main problem when purchasing a wine is lack of knowledge.<br />When making a decision as to which wine to buy there are many factors which weigh in on the purchase. The most important is taste and familiarity with the wine (Thach, 2008); this is a form of internal search. Besides taste the next most important factor in deciding on a wine is recommendation. This often comes from a friend when purchasing at a retailer, or from another table or waiter at restaurants (Thach, 2008). Other important factors in choosing a wine are origin, brand, and medals/points (Thach, 2008). These are all types of external searching that can be found on the bottle or in a product description. A few external factors that didn’t make a difference in wine purchases are alcoholic content, in store displays, and front labels (Thach, 2008). A form of external search that isn’t popular is internet sales and research. Currently, online wine sales only account for 1-2 % of all direct wine sales (Gunn, 2008). This has the potential to become a valuable source of information as the internet is a direct part of a young professionals’ life.<br />The perception of wine is that of class and elegance. Wine feeds on many forms of sensation; taste, smell, and sight. As discussed in the previous paragraph, the taste of wine is the most important factor in a purchase and repeat purchase. Smell is also an important part of drinking wine; many people smell the wine before drinking it. Smell is directly linked to taste and helps prepare the mind for what it is about to taste (Bonné, 2004). Sight of wine affects a person on two levels. Color can be an indicator of what the nose and the mouth might expect (LaMar, 2008). The perception that is created when drinking wine is one of professionalism and class. <br />When faced with making a wine purchase, a consumer has many alternatives that he/she can choose from. When overwhelmed with options, a consumer will choose what is familiar to him/her. This is a challenge that Northleaf Winery needs to overcome, ultimately making its brand one of a consumer’s top choice. Brands are constantly competing on many evaluative criteria, or dimensions or attributes of a product that are used to compare different alternatives (Belch, 2007). Wine competes on price, taste, brand awareness, points, medals, function, and variety. After a purchase is made, a wine will be evaluated by the consumer with functional consequences, concrete outcomes of a products usage that are tangible or directly experienced (Belch, 2007). Functional consequences are obvious such as taste, smell, and sight. Wine will also be evaluated on psychosocial consequences, or abstract outcomes that are more intangible, subjective and personal to the user (Belch, 2007). A few examples of this is how a person feels about the quality of the wine in perspective to the price, price in perspective to taste, and perception created within a social circle when consuming the wine as a group. <br />All of this research leads to a purchase decision. The first part is developing purchase intent. This is when the consumer decides on which brand of wine to buy. This is based on motivation, perception, attitude formation, and integration, all of these are formed earlier in the decision making process (Belch, 2007). Intent is not the same as an actual purchase. Often the purchase can be delayed because of price, need, and want (Belch, 2007). This should not pose an issue with the young professional demographic as they are typically among the top purchasers of alcohol (Bureau of Labor Statistics, 2007). Following the purchase is the post purchase evaluation where the customer is both satisfied with the purchase, and likely to repeat purchase, or dissatisfied. <br />Relevant Reference Groups<br />The main reference groups for young professionals are friends. Young professionals are still very new to establishing themselves as individuals, so having a group of friends that are very interested in something, such as wine, would spark the same interest in a young professional. The 25-34 year old age group is tuned to what its friends are doing and don’t want to be the one who is falling behind the times. Work culture and relationships also influence young professionals. Adapting to work culture is important to young professionals. Young professionals will look to what their co-workers are doing and attempt to become a part of it. Family remains a big part of young professionals’ lives and often influences what they do. As mentioned before 56.8% of men and 43.2% of women aged 22 - 31 lived at home in 2002. Family can influence what a young professional does in their personal life, if wine is regularly served with dinner then a young professional is more likely to take that with them and share it with their friends. Successful business people also drive young professionals. They provide young professionals with something to aspire to. Young professionals will be likely to mimic what they think a successful person does. <br />Perceptions<br />There are many interesting facts to consider about the upbringing of the people in generation Y before considering the way that they act and consume the products they purchase. An astonishing 91% of generation Y recollects their childhood as happy, according to Coming of Age in America, Part II. This article also explains that 90% of generation Y described their relationships with their mothers as close as opposed to 65% saying that their relationship with their father was equally as close. This is important to know because it means that most of the people included in generation Y are likely to have strong bonds with their parents. If they have developed this strong bond they are likely to develop similar bonds to things such as the town they went to college in and the surrounding area.<br />This group of people also tends to have a cynical view on marriage. It is obvious that the institution of marriage is changing throughout the years, we now have a still high divorce rate, the U.S census has reported a declining marriage rate, and there is also the possibility to come about with same sex marriages. They also are accepting to the idea of living together before marriage (Finding Dulcinea, 2008). Since this is the case for many generation Y’ers they are likely to keep strong bonds with their friends and family which is good for the social aspect that wine brings.<br />Generation Y perceptions are extremely different than the generation preceding them. Generation Y is full of very critical thinkers and are able to develop and adapt to different technology and ideas. This is a plus for the wine industry as the idea of drinking wine on a regular basis would not be a completely farfetched idea.<br />Generation Y has a tendency of being less brand and even job loyal than other generations in past. According to the Health Focus Trend Study “Their top five concerns (in order) are tiredness, stress, cancer, depression and cardiovascular disease.” It is also stated in this study that this concern that they have derives from their childhoods which were often filled with school activities and after-curricular which has impacted their adult lives. Generation Y in the current economic condition has displayed ultimately three types of characteristics as shown by Nic Paton. He has stated that the three groups of generation Y are “work hard, play hard”, “worried and weary”, and “willing workaholics” (Paton, 2008). It will be important to follow the actions of those in generation Y as many people think it will be an eye-opener for “the generation that got everything they wanted.” This is an important concept to understand as the wine industry will be appealing to this group because wineries might have to position themselves differently for each group.<br />These qualities that generation Y possess are great insight as to where to go with the campaign. The campaign will want to get to most of the new consumers first using a technology that they are familiar with as opposed to an out of date technique. More often with generation Y, if you are innovative in the manner that you present yourself they respond positively. The main problems the campaign will run into with the marketing efforts will be pinpointing where to connect with the target market on the budget. Although the economic times are not ideal for a marketer, the positive about generation Y is that they act almost as if the world is not in a recession. Many people in this target market are in the striver or achiever in the VALS model where they like to spend money so their peers see what they have accomplished. The campaign will definitely need to change the way it approaches those in the generation Y category and try to create to create brand loyalty. <br />2nd Target Audience Analysis<br />The second target audience for the IMC campaign will consist of adults in the Milton area between the ages of 45-64 who are wine enthusiasts and/or are curious about wine. For this section, the Milton area will be defined as the tri-county area of Rock, Jefferson, and Walworth counties. Gail was also interested in looking into targeting people who previously attended Milton University, but this group has become very scattered throughout the country and would be very hard/expensive to target with a limited marketing budget.<br />This target audience is sufficient in size because census data from the year 2000 showed that 22.4% of the population in the tri-county area was between the ages of 45-64 and that amounts to roughly 71,576 people (“Wisconsin by County”). Using information from Mediamark Reporter that says 33.3% of people in the 45-64 age group are wine drinkers, this would mean that about 23,834 people in the Milton area would be considered wine drinkers in the target age range (Mediamark Research). This number is very realistic and it shows that there are definitely enough people in the target audience to support the winery.<br />This target audience is actionable because as mentioned in the previous paragraph, the 45-64 age group was the most likely to be wine drinkers as an estimated 33.3% of people in this age bracket had consumed wine in 2008 (Mediamark Research). Another statistic that shows this target audience is actionable is that the 25% of consumers who really know their wine make up about 68% of total wine sales (Tarnowski, 2009). This is extremely important because it proves that the people who are wine enthusiasts are going out and buying a lot wine in terms of dollars.<br />This target audience is identifiable in many different ways because they tend to have certain consumer behaviors. People that are wine enthusiasts are more likely to subscribe to magazines that deal with wines and they are also quite possibly interested in fine foods because a lot of wines go best with fine foods. This brings up another interesting point because wine is by far the beverage of choice at restaurants that serve fine food (Beaumont, 2008). Identifying and reaching these customers that enjoy fine dining would be a very effective way to find people who are very possibly also wine enthusiasts. <br />This target audience is accessible because a good percentage of people in the target age range are wine drinkers who would probably be excited to learn about what The Northleaf Winery has to offer. When an audience is passionate about a topic, such as wine, they are always interested in learning more about the topic and would very likely be excited to learn about a winery in their area. Also, the people in this target audience are usually out in public a lot whether it be going to work, attending a social event, or doing something with the family. This is important because the more someone is out in public the more they are susceptible to certain types of advertising like billboards, flyers, word of mouth, etc. The fact that this target audience is pretty active makes them very accessible to market to. <br />There are many activities that this target audience participates in that can be very helpful to marketers in reaching them successfully. One interesting fact was that 53% of the baby boomer generation felt confident when making purchases online (Consumer Reports). This is important because it shows that even consumers in a slightly older generation are still purchasing things online so selling wine off of Northleaf’s website may be a very viable option.<br />One consumer behavior that this target age group has is that they are the most likely to dine out at least once a week (Mediamark Research). As was stated in the previous paragraphs there is a direct connection between fine food and wine so marketing at local fine dining restaurants would be a very good way to market to people who are also quite possibly wine enthusiasts. People in this target age group are also the most likely to travel somewhere out of state so advertising in a travel publication may be a good idea because many times when people travel they find themselves dining out at restaurants that serve fine food (Mediamark Research).<br />Another characteristic that is extremely important is that most people in this target audience have some sort of a family life. Whether it be a family of four or five or just a husband and wife, but family has an important affect on almost everything in this target audience’s life. This idea will be talked about further when the topic of reference groups is addressed in regards to decision making.<br />Functional and Emotional Benefits<br />Wine consumers perceive an underlying emotional benefit from drinking wine. According to an article in The British Food Journal, “Consumers drink wine for the sensory pleasure it gives, but younger drinkers are also motivated to drink it for reasons relating to cultural identity and social status, while older generations focus primarily on the potential of wine as a social catalyst” (Barrena & Sanchez, 2009). This leads to the idea that a lot of people drink wine simply to fit in and gain a sense of belonging with their peers. The older generations, however, drink wine more for it to be a social catalyst which means that they do it more to relax and enjoy themselves. Wine also portrays a social image of someone being very classy and successful which many people desire and some people in this target audience may drink wine solely to try and gain that image. Wine appeals to many different emotions for a simple alcoholic beverage because it can also stand for an entire way of life.<br />When wine is consumed in moderation it can give many health benefits. In the publication Wine News, Dr. Harvey Finkel said that there is a lot of evidence that would suggest that wine helps to prevent coronary heart disease and other blood vessel related disorders (Finkel). Dr. Finkel went on to say that there is “a growing body of knowledge which indicates that in moderate dosage, wine’s alcohol and antioxidant polyphenolic flavonoids combine to decrease deaths, illnesses, and disabilities from atherosclerotic thrombotic disease of the arteries of the heart, brain and other organs” (Finkel). These health benefits are very appealing to this target audience because people ages 45-64 are beginning to enter into a part of their lives where a lot more health concerns may arise. <br />Decision-Making Process<br />The consumer decision-making process has a large impact as to which products consumers buy and why. There are five different stages to the decision process that will be evaluated for the target market of adults’ ages 45-64 that are wine enthusiasts in the Milton area. Mainly, Gail needs consumers to eventually internally seek out The Northleaf Winery as their choice for purchasing wine within a couple years, because Hwy 26 will be rerouted around Milton, which will lower the amount of traffic that passes by substantially.<br />The first stage in the decision-making process is problem recognition, which consists of two parts, the social need and the esteem need. According to The British Food Journal, “older generations focus primarily on the potential of wine as a social catalyst” (Barrena & Sanchez, 2009). The social need does not necessarily benefit Northleaf because any wine drinker in our target market can socially fit in with any brand of wine. However, the winery could be established as a socially accepted place to purchase wine and the esteem need could help fulfill this. The esteem need gives an advantage to Northleaf, because the first people who discover the winery will most likely recommend it to their friends in hopes to gain respect from them. On the other hand, name brand wines that can be purchased at a supermarket or liquor store when recommended will not give as high of esteem. This is because Northleaf is new, not available everywhere and more of a diamond in the rough.<br />The second stage consists of the information search that can come from internal or external sources. Gail and Northleaf are most concerned about how to affect consumers internally so they will think of her winery as the first place they want to buy wine. This happens through external sources such as word of mouth, the internet, and articles from magazines or newspapers. According to Duct Tape Marketing, 76% of consumers do not trust advertisers while 68% of consumers trust advice from their peers (Balderaz, 2006). The target market will give the winery a great chance for new customers and even repeat customers through word of mouth, even more so because the target market and winery are located in the same area.<br />The third step is the alternative evaluation that consists of the other various identifiable brands considered as an alternative. Every consumer has an evoked set of alternatives for products such as point-of-purchase materials and promotional techniques encourage consumers to consider brands that may not of initially been in the evoked set (Belch and Belch, 2007). Northleaf has a point-of-purchase advantage over its competition due to the availability to sample its wine before purchase, which will encourage consumers to put Northleaf’s wine selection in their evoked set. If the wine enthusiast does not enjoy a certain type of wine they can always taste test more to find the right one they’re looking for. There are always the consumers that have brand loyalty, but attitudes can be changed and with the help of word of mouth anyone in our target market should be at least willing to stop by the winery. Northleaf’s wine in the eyes of the target market will be in a good price range for wine enthusiasts and the overall aura of the winery itself will satisfy tenfold compared to a liquor store or supermarket, which should change several consumers’ attitudes.<br />The fourth step is the actual purchase decision and this is where the search stops and the decision is made. Consumers usually tend to develop a purchase intention or predisposition as to which particular brand they are going to buy (Belch and Belch, 2007). This has an almost neutral effect on Northleaf due to the fact that most of the target audience is busy working during the day and wants to get home to their families so any time they can save is helpful. This means that some of the target market will inevitably purchase their choice of wine at the supermarket while buying other items for dinner. On the other hand as mentioned above, Northleaf has such a great aura that some of the wine enthusiasts will make sure to make that extra stop at the winery just to pick up a bottle for dinner. With the winery right off of Hwy 26 it makes the stop easy and quick, which could be harmful for business when the Highway it is rerouted. This is why the next couple of years must be the marking ground for the target audience.<br />The final step in the decision making process is the post purchase evaluation where the consumer is either satisfied or not. The good aspect for this is that Gail makes all of her own wine and so if there is ever dissatisfaction the consumer can easily come back to the winery where things can be worked out. Whereas if a consumer buys a bottle of wine at a supermarket or liquor store and there is something wrong with the product, the consumer would likely have to find a number to call and it could take weeks before they are compensated. Cognitive dissonance is a large issue with certain products and certainly can be for wine, but with the purchase of a bottle from Northleaf and the availability of taste testing the dissonance should always be relatively low compared to its competition. The target market should have a much lower dissonance for Northleaf’s wine selection compared to anything they will buy at a supermarket or liquor store. <br />Reference Groups<br />Reference groups are extremely important when it comes to this target audience. People in this target audience are very influenced by family as most of them have children who range from being in high school to being college graduates. The majority of people in this target audience are also married so spouses have a direct impact on almost all of the decisions made. Work is another thing that can affect the decisions of people in this target audience. Most people who are ages 45-64 are not quite retired yet and work affects their daily lives and the decisions they make. As was already stated, a lot of people drink wine to fit in with their peers so if someone sees a coworker or friend drinking wine people in the target audience may be influenced to drink wine to fit in because they think it is the norm. A major commonality of all the reference groups mentioned above is that they all involve people to some extent. This shows that word of mouth could be a powerful marketing weapon to get people from this target audience to The Northleaf Winery. If people are hearing about it from their friends, spouse, and/or coworkers they would probably be prone to at least check it out.<br />Perceptions<br />Perceptions the target audience has about The Northleaf Winery are that it’s a place where you can go to get a locally made bottle of wine with a historical touch, this would also be (Ab) in the multi attribute model. People find a great loyalty to the city and in return they pass that loyalty on to the stores of Milton, WI. As for the (Bi) or beliefs about the brand’s performance, The Northleaf Winery provides the best service and great advice that can be acquired from employees with a wine expertise. This kind of service is rarely offered by anyone other than a personal winery making it unique to the area. The buyers find the wine to be reasonably priced compared to big box retailers. The perceptions of the big box retailers are that there is a larger selection of wines which leads to competitive pricing, but they don’t offer anything from The Northleaf Winery, making their wine store exclusive. Competitors are also easier to access for the fact that they are larger companies and provide more locations. Convenience is also a factor for Northleaf because the winery is a one stop shop for wine where as going to other retailers it is a one stop shop for all different types of goods. <br />The basis for constructing this model comes from personal experience of what was learned through the in class presentation and onsite tour given by Gail Nordlof. Through Gail came the perceptions of her customers and how they view her winery. The perceptions of her competitors were received from personal experiences in visiting retailers like Wal-Mart, Sentry, and Woodman’s. Perceptions also came about by personal research and opinions of other group members. Strategic implications of the model are that the attributes and beliefs vary depending upon the situation so it is uncertain the importance attached to each or how many attributes are included. Problems associated with the model would be finding the right attributes to get customers to make the trip to the Winery to buy their wine instead of purchasing it at a retailer where it’s more convenient. It’s also important that consumers are aware of The Northleaf Winery and that they receive a long lasting image so that customers become loyal. To do this Northleaf needs to take advantage of various mediums of technology like updating its website and getting its name out in the media. <br />Intermediary target audiences<br />The two target intermediary audiences for Northleaf Winery are art fairs and auctions in Milton and the surrounding areas. Both of these events attract a lot of people and can create good exposure for the product. It is a relatively inexpensive way to market products and increase word-of-mouth advertising.<br />Art fairs are an excellent way to get the name of a new business out in the community. Not only would this partnership benefit a business, but also the fair itself and the local community. There are two ways that a company can go about getting their business involved in an art fair. A business can either become a vendor at the fair, selling their products to the attendees, or they can choose to sponsor certain events. Both of these would be good ideas for Northleaf Winery. With all of the traffic that goes through these fairs, it would allow them to introduce and try their products if they became a vendor. People could stop by the booth, try the wine, and learn about the company. This would be great exposure to people who live in Milton and the surrounding areas. A sponsorship would also be a good idea because it would allow Northleaf Winery to try and appeal more to their target audience. They could sponsor events that they think the people they are trying to attract would attend. This would give them the best exposure to potential customers only. Some events you could consider would be a photography event or a certain band that is playing at the fair.<br />Not only would this be beneficial to the company, but it would also be beneficial to the fair as well. Fairs love to see new local businesses come in and participate in their activities because it helps improve the area and build community bonding. Fairs are set up to benefit the areas participating in it, and also to create some revenue. With more companies joining the fair, they are able to put on more events and earn more money. Fairs are designed to make people aware of local businesses and help create a rapport within the community. They are always looking for more sponsors and vendors to participate in the festivities. <br />Overall, the Morning Glory Fine Craft Fair in Milwaukee would be an excellent choice for Northleaf Winery to start marketing their products to the Wisconsin wine community. This fair consists of a large group of artists from around the country that come to Milwaukee to sell their work. This fair would be an excellent choice as a large number of the attendees to this fair fall within Northleaf Winery’s target market. They currently sell wine at the fair but it is just basic wine sold by the catering company. This is an area where a local winery can come in and set up their own booth with their products. For a relatively small fee they can set up a booth to sell their product and inform passers-by of their historical building and other aspects of their company. They can also pay to sponsor an event that they think their target market would attend. This allows them to narrow down their marketing efforts in order to get the most potential customers. While it does cost the company money to do something like this, the return would be well worth it, as people in the surrounding areas would become aware of their new business, creating a large amount of word-of-mouth advertising throughout the community.<br />Northleaf Winery will look to auction off their wines at local auctions in and around the Milton area. There are many auctions around the southern Wisconsin area, the bulk of them are in the months of May, June, July, and August (Auction Guide). The auctions that Northleaf should look for would include silent auctions, auctions for fund raisers, and auction services which would auction off items for Northleaf. One of the auction services that was found is called Wine Commune. Wine Commune states that internet wine sales account for 3 billion dollars in revenue or 10% of all retail wine sales. Selling wine online can open Northleaf up to a much broader audience. Silent auctions and auctions for fund raisers would be a great way to inform customers about Northleaf’s wines. Auctions would not only inform the winner about the wine but every person that comes to bid on the wine would be able to look at Northleaf’s logo, bottle, and overall presentation. <br />Any auction that Northleaf participates in would benefit in a big way. Gail has said that she would like to donate her wine to these auctions. The auctions would be getting a product to auction off without paying anything for it. Auctions generally are not picky about what they auction off. The bottle of wine may not be the number one item but it will be around the middle of the pack. Gail might also be able to auction off a gift basket with wine, cheese, glasses, and a tour of the winery all included in one basket. This would not only get people to try Northleaf’s wine but also draw them back into the winery for additional purchases. <br />Donating products to an auction is a great starting point for any business. The surrounding community will consider Northleaf Winery as a company that wants to help out the community. Potential customers will be given a chance to look at what products Northleaf can offer. Putting products in auctions is a very inexpensive way to advertise. The cost of the advertisement is the product itself. Anyone who bids on the wine and doesn’t win is more likely to make a visit to Northleaf to purchase a bottle for themselves. <br />Because the auctions will not be purchasing the product directly they do not have much to lose when auctioning off Northleaf’s product. Each auction would have to consider if they had enough room to fit in another product. After they take that into consideration they would have to decide when to auction it and what the starting bid should be. Gail has said that she would like to be part of a fund raising type of auction where all proceeds go toward one cause. If this is the case then the people running the auction should have no problem adding another product to be auctioned off as that only adds to the proceeds. <br />Any auction that Northleaf enters into should have a good perception of the product. Because they are not taking a specific risk when allowing the product to be auctioned off, the people running the auction should accept Northleaf’s product fully. In the case of an auction the multiattribute attitude model doesn’t come into play as much because the auction is not buying the product, it is the people bidding on the products that make the final purchase. The people that are bidding on products could take their attitude toward the brand, beliefs about the brand’s performance, and importance attached to the attributes into play. <br />Strategic Plan<br />Recap Target Audiences<br />The first target audience selected consisted of the 25-34 year old young professionals. The young professional target audience is substantial in size; currently it is comprised of over 1,100 students in the whitewater area. This doesn’t account for the graduates who also fall into the young professional category. Young professionals graduating with a bachelor’s degree or higher are 40% more likely to consume alcoholic beverages. Young professionals also spend a substantial amount of time with friends which broaden the reach into other young professional groups. Young professionals also tend to prefer wine over beer. <br />The second suggested target audience is adults ages 45-64 living in the Milton area. There is a substantial target market size with over 24,000 adult wine drinkers in the tri-county area. These adults make up 68% of all total wine sales. Over half of these adults are confident in online purchases, and could help drive Northleaf’s online wine sales. 45-64 year olds also have a larger disposable income and are willing to spend it on extras such as wine. Adults tend to drink wine to promote their social status and since the winery is located in this target audience’s geographic region, it will create awareness and create discussion at social events through word of mouth.<br />SWOT Matrix<br />StrengthsWeaknesses Creative Thinking Unique Wine Names and Labels Wine Variety History of Northleaf Winery Location of Winery New/Small Business Economic Recession Limited Marketing Budget Small Town Limited Quantity and Selection of WineOpportunitiesThreats Health Benefits of Wine Growth of Wine Consumption Online Wine SalesAvailability of Wine Established Customer Markets Existing Wineries Online Wine Retailers<br />Recap SWOT and Competitor Analyses<br />There were several critical findings that came about from the SWOT analysis. The research concluded that the main items to focus on were the fact that Northleaf is a new business, located in a small town, and consumers need to be aware of its existence and historic value before the reroute of Hwy 26 in 2012. The campaign needs to focus on making each target audience aware of Northleaf’s local existence and its overall presence and aura will leave consumers wanting more.<br />Northleaf features a variety of strengths, as a product and as a place of business. One of the largest strengths is the current location of the winery on Hwy 26 which on average gets 20,000 citizens passing by each day. Northleaf must take advantage of this statistic before the reroute. The fact that Milton is a small town directly benefits the winery due to the fact that word of mouth is the trusted by 68% of consumers while 76% do not trust advertisers (Balderaz, 2006). This will allow for a limited marketing budget to do fairly well in reaching the target audience of adults ages 45-64 in the Milton area. The history of the winery, the accessibility to produce wine with grapes from California to South America, and the ability to sample wine before purchase are all key factors that Northleaf needs to make known to its consumers.<br />Recap of Special Topic<br />Branding was chosen as a topic of special interest that Northleaf Winery could benefit from. Although there are established brands within the wine market, none of them have a very significant market share. According to Belch and Belch branding a product is “important from a promotional perspective because brand names communicate attributes and meaning. Marketers search for brand names that can communicate product concepts and help position the product in the customers’ minds” (Belch, 2007). Brand recognition can drive both e-commerce and store sales. Brand recognition drove Coach sales in 2006. Because of Coach’s well recognized brand and targeted email campaigns Coach posted web sales of $114 million in 2006, up by 34.1% from web sales of $85 million in 2005. Coach also had more than 40 million unique visitors to its site in 2006 (Internet Retailer, 2007). This remains relevant to Northleaf and its wine brand. By creating brand recognition Northleaf would be able to generate more e-commerce and help drive toward the goal of increasing online wine sales to 10% of total sales by February 2011 among people in the United States.<br />Brand names also are important to a new product. Being able to create a brand image that is unique to what type of wine is in the bottle would also be beneficial to Northleaf Winery. Siam Winery in Thailand has been able to make itself into the wine of Thailand through its unique branding strategy. According to Martin Roll, “Over the years Siam Winery has launched three main brands: Monsoon Valley, Sabai and Spy. Each brand of wine has been given a distinct composition, unique taste and a defined usage situation” (Roll, N.D.). Northleaf Winery would be able to benefit from a similar strategy. If Northleaf would develop brand names specific to what kind of wine is in the bottle customers would be able to walk into the store and pick up a bottle and immediately know what kind of taste it will have and what the ideal drinking conditions for the wine are. Creating a distinct brand image would give Northleaf and advantage as it did for Siam Winery and effectively increase foot traffic to the store and therefore contributing to the goal of increasing foot traffic through the winery by 15-20% over opening month levels among people in our target audiences before the Highway 26 rerouting project starts in 2012.<br />Overall, it would appear that branding will remain as a key contributor to Northleaf Winery and the goals that have been established for it. Creating a distinct brand name and image will contribute to increased internet sales and in store sales. Branding will also help with creating knowledge about the wines offered and therefore make buying Northleaf wines less intimidating to the younger crowd. <br />Problems and Opportunities for Young Professionals<br />A few problems that will be faced when targeting Young professionals are:<br /> Locating and mailing to the target audience<br /> Getting young professionals into The Northleaf Winery<br /> Familiarizing young professionals with a local brand<br />A few opportunities that are presented by Young professionals are:<br /> Want for a unique product<br /> Active social life, allowing for word of mouth advertising<br /> Ability to shape brand loyalty<br /> Willing to make online wine purchases<br />Positioning Young Professionals<br />Many young professionals are new to the wine market and have not yet developed brand loyalty or much brand recognition. Many young professionals are unknowledgeable about wine and are therefore susceptible to going with a brand with a good marketing strategy. <br />Positioning Northleaf Winery as a unique product that offers historical value and the ability to share will be vital to a successful marketing strategy. Establishing brand recognition for Northleaf will also help drive purchases from young professionals. <br />In order to drive young professionals to drink Northleaf wines, brand recognition and product knowledge will need to be achieved. A want to purchase a unique wine that is both excellent to drink and serve will need to be pursued within the young professional target audience. If Northleaf wine is positioned as a superior product within current young professionals many are sure to follow and purchase the same product.<br />Problems and Opportunities for adults ages 45-64 in the Milton area<br />A few problems to address for adults ages 45-64 in the Milton area are:<br /> Hwy 26 will be rerouted in 2012<br /> Creating awareness of The Northleaf Winery<br /> Consumers have to make an extra stop to purchase wine<br /> A website that is not fully updated<br />A few opportunities that are presented by adults ages 45-64 in the Milton area are:<br /> Health benefits when consumed in moderation<br /> Large amount of disposable income<br /> Word of mouth and active social lives<br /> View wine as a potential social catalyst<br /> Open and confident about making online purchases<br />Positioning adults ages 45-64 in Milton<br />The current status of this target audience is that many are unaware that Northleaf Winery exists. According to Mediamark, one-third of people ages 45-64 are wine drinkers, which is by far the largest percentage of any age group (Mediamark Research). Older generations view wine as a social channel and are susceptible to word of mouth especially since the target audiences all live in the same geographical region (Barrena & Sanchez, 2009). Northleaf is relatively new to the area, opening in early February of 2009, which means most of the target audience is likely to be unaware or uniformed about the winery and its history.<br />Positioning Northleaf Winery as a local social catalyst with historic value will be extremely important for influencing awareness and overall sales. Once the audience gains curiosity and awareness of the winery, they will likely establish Northleaf internally as their choice for purchasing wine within the time range before Hwy 26 is rerouted.<br />In order to compel adults ages 45-64 to drink Northleaf wines, social events and the awareness of these events need to be well known. A local winery with history that provides an unforgettable experience that leaves consumers wanting more. The winery needs to be positioned as a socially active place and viewed with a point-of-purchase advantage due to its availability to sample its wine before purchase.<br />Situational Analysis Expansion <br />One topic that drew specific interest is the emergence of young wine drinkers being intimidated by wine (Cioletti, 2001). Also included in this was the statement that young people are bucking the trend of not drinking wine and moving towards more consumption. According to Evelyne Resnick, “Young wine drinkers are full of surprises for professionals and older consumers. The younger generation - consumers AND sommeliers - is looking for wines that are original, regional and with a rich background story (or history). No more of those funny wines forgotten as soon as drunk!” (Resnick, 2008). This is a direction that Northleaf winery is already going, Gail is already creating unique wines with labels that are of historic value. <br />Positioning Strategy<br />Northleaf’s positioning strategy will be to focus on the price and quality of the product they are offering. This will help solve a few of the problems that were earlier stated. There will be more traffic within the store because of the high quality at a reasonable price regardless of the rerouting of Highway 26. If people know about the quality of product that is offered at The Northleaf Winery people will not mind the extra stop at the winery because it will be worth it. <br />This strategy will help to get the young professionals into the winery because they will be looking for a quality product which they will find at The Northleaf Winery. This will in turn familiarize the young professionals with Northleaf brand that they will continue to look for. <br />Strategy for Target Audience #1<br />There are many reasons that this positioning strategy will be an effective marketing strategy for the target audience of young professionals ages 25-34. The Northleaf Winery offers a high quality product at an affordable price while providing an historic atmosphere that will give the consumer a memorable experience.<br />All young professionals will like the idea that The Northleaf Winery offers a high quality product. When entering into the professional world and leaving the college days behind many people have a tendency to leave behind what they would have been drinking and how they would have been drinking in college to upgrade to a classier, more tasteful way of enjoying a beverage. In order to achieve this they will be looking for more quality product. <br />People with either a bachelors or masters degree spend about 40% more on alcoholic beverages than those without a degree (Bureau of Labor Statistics, 2007). Since many generation Y’ers are moving back into their parents’ house after graduating college they will be looking for high quality products, but very often they are trying to save money for other things such as paying off student loans or buying a home. Since they may be trying to be conservative with their money, especially in a recession, Northleaf will need to offer its product at an affordable price in order to reach this segment. <br />Lastly, the segment of young professionals will be attracted to the idea of the whole experience of the winery. The group of generation Y has very strong ties to their friends (Trunk, 2007). The experience of going to a winery with historic value would be a great alternative experience compared to what they would otherwise do with their free time.<br />Strategy for Target Audience #2<br />The Northleaf Winery hopes to position itself in the customer’s mind as providing high quality products at affordable prices. With this position their goal is to get people attached to the winery so that they want to tell everyone they know about it creating word-of-mouth advertising. Given the overall positioning strategy of providing price and quality, this approach will be effective to adults ages 45-64 in the Milton area that are wine enthusiasts and/or are curious about wine. <br />This approach will be effective because this age group is one to be active as far as going to work, attending social events, and doing things with their family. This leads to people being more impacted by community advertising which The Northleaf Winery is looking to accomplish. For those looking to be more involved in wine, Northleaf Winery offers a wine club, winery tours, and wine tastings. By getting consumers in the door they will be able to experience the historical quality that The Northleaf Winery has to offer. Not only is the wine made in-house but it’s also made with local grapes giving consumers a sense of what kind of product they’re getting and where it’s coming from. The wine’s quality is achieved through Gail’s creativity and the handcrafted smaller batches that allow for closer attention during the wine making process.<br />The quality of the wine is important to the target audience as they get up there in age because wine can provide health benefits. According to Dr. Harvey Finkel, research has shown that drinking wine in moderation can help prevent coronary heart disease and other blood vessel related disorders (Finkel). This is important to this age group as they have to start watching what they eat and drink to prevent health concerns from arising. It also gives wine a longer lasting experience since people of any age can drink it and as shown it can provide benefits that beer and hard liquor cannot.<br />Not only are consumers getting a quality product, The Northleaf Winery offers affordably priced wine compared to other wine retailers. When consumers go to Sentry or Woodman’s they are getting a larger selection of wine from all over the world but unless you’re very knowledgeable on wine it’s hard to choose one that will fit the consumer’s standards. The Northleaf Winery offers free wine tasting and the wine experts can offer customers expert wine advice and quality service that isn’t available if they are shopping at the big box retailers. This is great for those curious about wine and for those wine enthusiasts because they are not only getting an experience but also a wine that isn’t available anywhere else.<br />According to Mediamark Research, this target age group is one that is most likely to dine out at least once a week (Mediamark Research). This is great for Northleaf Winery because the wine isn’t offered at any restaurants anyway but with people eating at home it becomes easier for adults to pick up a bottle a wine to have so they can enjoy with their meals the way they would if eating out. Typically buying wine by the glass at restaurants, it saves consumers money by being able to buy it in a bottle and drink whatever amount they choose in the convenience of their own home.<br />Competition<br />Northleaf Winery faces competition from several different areas. The wine market is continually growing with new and different ways for a company to get their products out to their customers. Competition comes from areas such as: other local Wisconsin wineries, national brands of wine sold in liquor and grocery stores, and the increasing amount of online sales. This is why Northleaf Winery needs to find a way to set itself apart from the competition. In order to make customers decide to purchase wine from Northleaf winery, it need to focus on its strengths. These would include: an affordable price, a historic atmosphere, a high quality product, the homemade factor, and also the variety of wines. <br />Northleaf offers its wine anywhere from $12- $18 a bottle. It is also considered high quality, especially at that price. The fact that it is a small, homemade winery means that it is produced in small batches allowing very close observation on all of the wine. This sets it apart from their similarly priced large quantity-producing competitors. They can also increase the variety they offer and tweak their batches to certain customer preferences. <br />Another aspect of Northleaf Winery that sets itself apart from its competition is the historic atmosphere that it offers. Anyone can go to a liquor store and pick up a bottle of wine for between $12-18, but Northleaf winery offers an experience. Not only do customers get to take in the rustic setting, but they also get a tour of a historic Milton building and are shown how and where the wine is made. <br />Overall, the positioning strategy it has should focus on price and quality. It has a relatively high quality product to similarly priced wines and the way the winery is set up allows them to customize and closely monitor their locally and nationally flavored wines. Northleaf Winery offers a unique historic experience that goes along with the wine that they sell. These things set it apart from competitors and will entice its customers to come back time and time again.<br />Objectives<br />The DAGMAR model for choosing objectives was chosen for this campaign. The DAGMAR model was chosen because since Northleaf is a newly opened business, communicating its existence to the public is crucial. DAGMAR’s four stage communication process of: awareness, comprehension, conviction, and action fit in very well with what needs to be done for The Northleaf Winery. <br />Objectives:<br />Increase foot traffic through the winery by 15-20% over opening month levels among people in the target audiences before the Highway 26 rerouting project starts in 2012.<br />This objective was chosen because increasing foot traffic through a store is a great way to increase overall sales for any type of retail business. By increasing the foot traffic that goes through the winery more people will be aware of the products that they offer. Making more people aware of the products will, in turn, likely lead to increased sales.<br />This objective specifies an audience because it mentions people in the chosen target audiences. In the case of this campaign the two target audiences are young professionals and adults ages 45-64. These two target audiences will be the main focus of this objective because the research in the previous sections has shown that these audiences have an interest in Northleaf’s products.<br /> The objective is time specific because it says that the objective should be completed before the Highway 26 rerouting project begins in 2012. The time specificity in this objective is extremely important because once the rerouting project begins the amount of car traffic that passes by Northleaf will decrease immensely. Making the public aware that Northleaf is there before the project beings will be crucial to the business’s success.<br />The objective identifies a clear benchmark of increasing foot traffic by 15-20% compared to opening month levels. The winery just recently opened in February 2009 so it is still an unknown for many people in the area. With that being said, the opening month sales at Northleaf were very strong as it was clear that people in the area who knew about the winery were excited to see what it had to offer. Basing this objective off of opening month levels was done to try and build off of this early success and avoid relying solely on these early customers for the bulk of the overall sales.<br />Lastly, the objective is concrete and measurable because foot traffic can easily be measured. Foot traffic can be measured most easily by asking all customers to sign some sort of guest registry. The registry can ask them to give a little information about themselves (such as age and gender). Another way to measure foot traffic is to have an employee count the number of people who come through the winery on a given day and estimate their age. Once the foot traffic is counted it will be compared to the opening month levels to see if the objective was accomplished successfully.<br />Increase online wine sales to 10% of total sales by February 2011 among people in the United States.<br />This objective was chosen because selling products online is an increasing trend. The internet also provides another avenue besides the retail location to sell the wines that Northleaf has to offer. Any time that a business can have more than one avenue to sell their products it is a major strength.<br />The objective specifies an audience as it mentions people in the United States. This is obviously a very broad audience, but the beauty of doing business online is that it makes it very easy to sell to people from almost anywhere. By making the audience this broad it opens up the possibility of selling wine to wine enthusiasts from all over the country who may have a particular interest in a type of wine that only Northleaf has to offer.<br />The objective is time specific because it says that the objective should be completed by February 2011. Northleaf already has a website but it is not quite able to accommodate online sales yet, however, Gail said that she does plan to sell wine online as some point. Setting the date two years after the business was opened should provide enough time for the website to be upgraded to be able to accommodate online sales and also for the public to become aware that they can purchase wine online from Northleaf. <br />The objective identifies a benchmark of making online sales 10% of total sales. This benchmark was chosen because 10% is small enough where it is not going to be a huge stretch to get the online sales to that mark. The retail location will continue to be the main source of sales.<br />Lastly, the objective is concrete and measurable because it is very easy to track overall sales as well as online sales. This can be done most easily by measuring how much wine has been sold in the store and online in terms of dollars. Once all of the figures have been gathered simple division will be used to see if the objective has been met.<br />Increase the amount of visitors that sign up for mailing list by 20% each month until February 2010.<br />This objective was chosen because the more people that Northleaf has on its mailing list the more loyal customers they will create. Also, if the winery has anything it would like to communicate to its customers a large mailing list will make it that much easier to do so. Currently, Northleaf has a sign up for the mailing list and all visitors are encouraged to sign up for it. This objective should not be overly difficult to reach because as a new business Northleaf’s mailing list was at zero in February of 2009 and increasing the list by 20% each month for a year should not be very hard to do.<br />The objective does not specifically mention an audience because if someone signs up for the mailing list they would have had to do it while visiting the winery. When someone visits the winery it shows that they have some kind of an interest in wine and they are a potential customer. Putting a specific audience in this objective would hinder Northleaf from trying to get as many wine enthusiasts on the mailing list as possible because they would be trying to focus on just getting a particular audience to sign up.<br />The objective is time specific because it says that the objective is to be completed by February 2010. February of 2010 was chosen because it marks the one year anniversary of when Northleaf opened its doors. Accumulating a solid mailing list in the first year of operation will go a long way in helping Northleaf maintain a loyal customer base.<br />The objective identifies a benchmark because the objective is to increase the mailing list by 20% each month. To clarify with an example, if Northleaf has 100 people on the mailing list at the end of March the goal would be to have 120 people on it at the end of April and 168 on it at the end of May and so on. This objective should not be overly difficult to reach because as a new business Northleaf’s mailing list was at zero in February of 2009.<br />Lastly, the objective is concrete and measurable because it is simply the number of names on the mailing list. To see if the objective was achieve the names on the list just need to be counted and then compared with how many names were on the list at the end of the previous month. If there was an increase of 20% in that month then the objective was achieved for the month. <br />Increase number of private party bookings from local organizations by 40% of current bookings by February 2010.<br />This objective was chosen because hosting private parties from local organizations is a great way to increase awareness about The Northleaf Winery in the community. Northleaf currently has a solid start on booking private parties, but there is plenty of room for growth. Increasing the current amount of events booked over the next year by 40% is a very attainable objective and it will do a lot in terms of increasing awareness that the winery exists within the Milton community.<br />The objective identifies an audience because the target will be local organizations. Local organizations often have meetings at places such as restaurants or other places of public gathering so a winery would fit into that group. Hosting private parties for local organizations would also be a huge money maker for the winery because they would likely be able to charge some sort of room rental fee.<br />The objective is time specific because it says that the goal is to increase the bookings by February 2010. February of 2010 was chosen because it is the one year anniversary from when the winery opened and creating relationships with local organizations in the first year of business is very important. Creating these relationships early can help lead to a lot more party bookings down the road.<br />The objective identifies a benchmark of increasing the bookings by 40%. This benchmark is very attainable because as a new business, Northleaf currently has a somewhat limited number of contacts at local organizations. Northleaf does have a decent number of private parties booked, but there is plenty of room for growth and an increase of 40% over the first year would get those numbers to a very good level.<br />Lastly, the objective is concrete and measurable because private party bookings are simply a number. This number can easily be counted and to find out if the objective was achieved simple division can be used to see if the increase in bookings reached the 40% mark over where they were at in March 2009.<br />Evaluation<br />The data that has already been gathered about Northleaf’s opening month levels of foot traffic can be compared with foot traffic that has taken place before the Highway 26 rerouting project, which begins in 2012. An accurate record can be kept by using a tally counter on specific days of the week. By using a tally counter an effective estimate can be made. Now the foot traffic from the opening months can be compared with the current foot traffic. The ending data should show a boost in foot traffic by 15-20%.<br />In order to measure the objective of online wine sales accounting for 10% of total sales, the annual sales must be checked. Northleaf should take total online wine sales and divide that number by total sales and that should equal .1 or above. This should be done at the end of the 2011 fiscal year. <br />Another objective that needs to be tracked is increasing the amount of visitors that sign up for the mailing list by 20% each month until February 2010. To do this Northleaf needs to be sure to keep records of its mailing list for each month. At the end of each month Northleaf should take the beginning total and multiply that by 1.2. When that number is compared with the ending total for the month, Northleaf can clearly see if they went above or below the quota. <br />The last objective that needs to be tracked is increasing the number of private party bookings from local organizations by 40% of current bookings by February 2010. This number can be found by taking the total number of private party bookings and dividing that by the total number of overall current bookings. If the number comes out to be .4 or above then the objective has been reached. <br />Tactics 1<br />Recap for Tactics 1<br />This IMC campaign has identified two target audiences. The first target audience consisted of 25-34 year old young professionals. The young professional target is substantial in size; currently it is comprised of over 1,100 students in the Whitewater area. Young professionals who graduate with a bachelor’s degree are 40% more likely to consume alcoholic beverages than those who do not. The second target audience consisted of adults ages 45-64 living in the Milton area. There are currently roughly 70,000 adults in the tri-county area that fall into this age range. These adults make up 68% of all total wine sales and one reason is that they have more disposable income. Research in the previous sections has shown that these are two audiences worth targeting.<br />The overall positioning strategy for this IMC campaign consisted of two parts and each part was focused on a target audience. The first part emphasized the price and quality of Northleaf’s wines and the second part is more focused on positioning Northleaf’s products as a social catalyst. The overall image that this positioning strategy is trying to create is that Northleaf is a place where someone can come and get a great product at a reasonable price and that the product can be used to relax and be social with friends/family. <br />The four objectives identified for the IMC campaign were as follows:<br />Increase foot traffic through the winery by 15-20% over opening month levels among people in the target audiences before the Highway 26 rerouting project starts in 2012.<br />Increase online wine sales to 10% of total sales by February 2011 among people in the United States.<br />Increase the amount of visitors that sign up for mailing list by 20% each month until February 2010.<br />Increase number of private party bookings from local organizations by 40% of current bookings by February 2010.<br />Theme/Big Idea<br />The overall theme for this campaign will be based off of the positioning strategy. As was mentioned in the recap the positioning strategy consisted of two parts: price/quality and positioning Northleaf’s products as a social catalyst. To most people (especially younger people) wine is considered an expensive product; however, Northleaf’s wine prices are very reasonable with many bottles of wine ranging from $12-$18. This positioning strategy will be focused on the young professional target market because they are typically the ones who are more price conscious since they do not have an abundance of discretionary income.<br />The second part of the strategy was positioning Northleaf and its products as a social catalyst. This part is more focused on the adults ages 45-64 target audience, because research in previous sections has shown that wine drinkers in this age range like to drink wine for relaxation and to be social. Positioning Northleaf and its products as a social catalyst will appeal to these people, because it will create a social and relaxing feeling about Northleaf. All of the tactics in this campaign will try to focus on creating this position for Northleaf. <br />One-to-One Marketing <br />The first objective for the one-to-one marketing strategy is to increase the communication to customers about news and events going on at the winery. Increasing this communication will lead to an increase in foot traffic through the store. A great way to do this is to have an email database and email updates on news and events going on at the winery. Northleaf should create a monthly newsletter with all of the events that will be happening at the winery during the month as well as other news about the winery such as new wines or current sales promotions. The newsletter should include a calendar of events for the month so that customers can plan accordingly for events that they want to attend. A simple newsletter will help Northleaf to retain loyal customers by keeping them informed. <br /> Northleaf currently has a mailing list and the email database can be created by asking people who sign up for the mailing list for their email address. These people are already obviously interested in Northleaf so they would likely be willing to give their email address to receive the newsletter. The main target for the email marketing will be current customers of Northleaf. By sending out updates it will increase the probability of that customer coming back because they will be aware of what is going on at the winery.<br />One of the best things about doing marketing through email is that it is very inexpensive when compared to other vehicles such as direct mail or mass media advertising. The time to create the newsletter will likely be the biggest expense that the email marketing campaign will encounter. <br />Direct Mail<br />Direct mail is a very feasible option for Northleaf Winery to execute with promotions and awareness. According to the United States Postal Service: (United States Postal Service, 2005) <br />Consumers spend an average of 30 minutes reading their mail on any given occasion.<br />98% of consumers bring in their mail the day it’s delivered. <br />72% bring it in as soon as possible. <br />77% sort through their mail immediately.<br />From this it was concluded that the personal factor of mail outweighs that of Email. Direct mail has also made the change from being viewed as cheap or “junk mail”, and is now viewed as a respectful form of advertising (Belch, 2007). The success of a direct mail campaign is decided with the mailing list. Who receives the mail is often segmented by geography, demographics, and lifestyle (Belch, 2007). The second most important part of direct mail is the copy. Often a copy is long in nature between 1 to 16 pages, according to Robert Bly (Bly, 2001), “The more you tell, the more you sell.” <br />For Northleaf Winery, a feasible direct marketing campaign can be pulled off for under a thousand dollars, fitting within Gail’s Fall/Winter budget. The intent of the initial direct mailing would be to generate interest and awareness of the new winery. This would increase foot traffic and consequently generate new sales. This direct mailing could be targeted at either of the target markets. The Milton area list could be generated by using census data and the already established Northleaf Winery customer database. The young professional list could be generated from Amerilist Young Professionals on the Rise Mailing List purchased from Nextmark. This young professional list can be segmented by Zip code. The individuals on this list are within the targeted age range and they are highly educated professionals who have a disposable income (Nextmark, 2009). <br />The best way to advertise for Northleaf would be using postcard sized direct mailer. One the front of the postcard an image of The Northleaf Winery would be suitable or a picture of a vineyard. This image will draw in the consumer and may look to be a postcard that they would receive from a relative. This will capture their attention and get them to flip it over and read the copy. A short copy telling of the winery and all it has to offer, as well as the offer of a free tour, would be described. To see an example piece of this direct mailer please refer to the appendix. <br />The cost of a 1,000 person Milton area mailing will be $399.00, assuming a free mailing list is obtained. The cost of printing 1000 postcard mailers is $129.00 (DirectMail.com, 2009). The cost of mailing 1,000 postcards will be $270.00 (USPS, 2009). The cost of a 1,000 person young professional mailing would be $674.00. The costs of the printing and mailing would remain the same as the previous, but a list will have to be purchased for $275.00 from Nextmark. Assuming a 2.6 percent response rate 26 new customers would visit the winery. If they each bought a bottle of $15.00 wine sales would be boosted by $390.00. Sales and new foot traffic could potentially be much higher. Wine is social catalyst, and many of the recipients would bring friends or spouses on the tour with them. This estimate also doesn’t account for repeat purchases and multiple bottle purchases. The potential of the response rate could be much higher as well. <br /> A ShipShape direct mailing was looked into but was deemed too expensive to justify doing it. A 1,000 person ShipShape mailing would cost an estimated $7,285.00 (ShipShapes, 2009). Even with the higher response rate of 10.4% (400% greater than that of a postcard direct mail (ShipShape, N.D.) the sales needed to make up for the mailing would be unlikely.<br />Relationship Marketing<br />Most companies are focusing on more than just a one-time transaction and are focusing on developing and maintaining relationships with their customers (Belch & Belch, 2007). These long-term relationships are derived through the customer’s perception of value offered from one company compared to others. Northleaf has already done a tremendous job at reaching out to the community and getting involved with non-profit organizations. Northleaf establishes its relationship with many locals through donation baskets, sponsoring events, and custom label designs for any event upon request. The overall goal Northleaf wants to accomplish in this area is long-term relationships with its customers in both target markets. This is extremely important before the Hwy 26 rerouting in 2012, because Northleaf with lose a lot of passerby traffic.<br />Northleaf has done a good job starting relationship marketing through several events in the area. Among the events and donations that Northleaf has contributed to were the Indulgence, where proceeds went to the Oblrich Botanical Gardens and Sips and Sounds, which proceeds went to HospiceCare. Northleaf donated gift baskets to the events and even had wine tasting available at Indulgence. This type of service allows for brand recognition and these events are aimed at the older audience in the Milton region, which happens to be one of our target markets. Older generations view wine as a social channel and are susceptible to word of mouth especially since our target audience all live in the same geographical region (Barrena & Sanchez, 2009). These promotional events tailor right to the strategies and idea of relationship marketing. <br />Another important component to developing a long-term relationship with customers is to tailor products personally to specific needs and wants. Northleaf can do this with its custom label design services. Northleaf has and will continue to work with customers at a minimal cost to create their own private label for corporate, community or private gift or event. Private events are also valuable in the strategy, because most of the target audience can use Northleaf as a social catalyst by holding or attending events at the winery. These types of offerings from Northleaf to its customers will show a valuable unique business trying to help out its community. This is the feeling desired for long-term relationships with both young professionals and adults ages 45-64 in the Milton area.<br />Website<br />The website will be a very important marketing tool to use. Currently there is a website but improvements can be made. Websites in today’s business world act as a stepping stone to success. They allow a company to be open 24 hours a day and 365 days a year. A website can be a tool to expand the trading area. A website can provide consumers information about the company without spending money to do so. Websites help to create or improve a company’s brand image. These reasons and others that will be covered are why a quality website is a vital key to Northleaf’s success. <br />The current website has been updated and the new look is a lot more eye catching than the old. There are more pictures that help give customers a better view of what is offered. One improvement that could be made to the website is a more professional layout. When a customer looks at the first page of a website they immediately get a feel for the company. The generation Y market is becoming more internet savvy and can draw conclusions about a business just by looking at the website. By creating a more effective tab system within the website it will promote the winery as high class and professional. The tab system will also be more organized and easy to follow. The tab system that is currently in place works fine, but can be improved if put at the top of each page so a user can jump from one topic to the next. <br />Blogging is gaining steam in the winery industry. Many wineries are creating a daily blog that explains what was accomplished on a daily basis. Using a blog can inform consumers about the wine making process as a whole which may entice them to try the product. Blogging is a very inexpensive way to promote a product. When new products are available or in the creation stage it can be recorded in a blog to inform consumers and create demand before the product is even on the shelves. This form of promotion has taken off in the music industry. Artists post their new creations to their blog for fans to check out and review. Not only do they introduce their audience to their new creations but a blog allows consumers to give feedback about their thoughts on the new produce. Consumers should buy this product not only for the final product but because they feel like they are part of the creation process then they will be more likely to purchase the final product. <br />Site traffic is always a key when evaluating a website. With website traffic report programs the owner of the site can see how many people are looking at their website and who is looking at it, analyze traffic patterns, and look at what areas of the site customers are looking at the most. This can provide quality information on what parts of the site should be the main focus and what parts are complementary to the others. Generally these programs are free or very inexpensive to run and many times offer a 30 day free trial to see if the information that is generated is worth the cost. In order to receive quality information site traffic must be generated.<br />There are many ways to increase site traffic. One of these is to advertise on different sites. YouTube is more popular than ever and posting a video is free. One way to increase site traffic would be to post a video of the wine making process on YouTube with a direct link into the website. Now if anyone looks up the word “Wine, Winery, North, Leaf,” or any other keywords the video will come up. If a video was created with step by step directions on the wine making process people could view it not only for information purposes, but also about Northleaf as a credible wine supplier. YouTube can be a very useful tool for not only displaying useful information about the creation of the product but also for drawing consumers into the website. <br />Direct email is also a useful way to keep returning customers informed about upcoming events or new product lines. If there was an option on the site to become a part of The Northleaf Winery Wine Club or something along those lines people would be able to sign up and monthly newsletters could be sent out to those people. This would allow the consumer to become more involved and up to date on activities within the winery. It would also provide the owner with a list of interested customers that desire more information about the business. <br />Selling wine online has its upsides, but there are many rules and regulations that go along with that. A permit may be required which can cost anywhere from $60 to $600. Along with the permit only 27 states allow the sale of wine through mail, they are; California, Colorado, Connecticut, Florida, Idaho, Illinois, Iowa, Louisiana, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, South Carolina, Texas, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. Selling wine on the website would become very profitable because it would open up the size of the market. No longer would wine be bought only in store but shipped across America. <br />With the integration of these new key aspects of the website the site will see double the internet traffic that it is currently seeing. Now, the people that are visiting the website are becoming more involved in the business which makes them feel like they are part of the process. Involvement is the key when looking at a website. Customers will want to check up on a daily or weekly basis on the new activities surrounding the winery and will be more likely to state their opinions in the blog. The YouTube video will inform customers about the wine making process and also provide a link to the website. All of these components must work with each other and the overall marketing strategy. <br />Sales Promotion – Consumer-Oriented<br />Sales promotions offer an extra incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale (Belch). For Northleaf Winery the main objective is getting the consumers to purchase goods through activities like sampling, frequency programs, and price-offs. The use of sampling is already in place at Northleaf Winery as it offers free in-store wine tasting to people 21 and older. The free samples are given in hopes that people will want to purchase a bottle to take home. <br />While it is already offered, many people may not be aware of it or The Northleaf Winery so throughout the advertising the sampling is a key point that needs to be included to influence more people to come buy from Northleaf. Not only does everybody like free stuff, but the idea of being able to try the wine before you buy it assures consumers that they’re getting what they want. This is important with the current economy because consumers are spending less which means that they’re only buying what they need so they aren’t going to spend the money on a full bottle of wine if they are unsure of what they’re getting. The sampling of wine is also good for the wine enthusiast because sampling different wines is the only way to improve your wine tasting ability. Wine enthusiasts may also gain a lesson of education on wine from various internet sites but there is no substitute for tasting wines (Wine Pros).<br />Setting up a frequency program at The Northleaf Winery would increase sales and brand loyalty. Not sure what the breakeven or profit points are on the sales end, but the frequency program would consist of buying a certain number of bottles of wine and receiving a free bottle of wine. The frequency would be measured through low-cost reward punch cards and could last for a specific period like six months or indefinitely. To have 5,000 reward punch cards printed only cost around $100 (“Punch Cards”). With the rewards card it keeps customers coming back and is also a form of advertisement because the will be carrying that card in their purse or wallet so they won’t forget about The Northleaf Winery.<br />Price-off promotions create a clear price incentive as to how much consumers are actually saving on a purchase. For instance, customers may purchase three bottles of wine and receive the fourth bottle at half off the regular price. This incentive encourages people to not only buy, but typically buy more for the fact that they can see if they want to buy two bottles of wine all it would take is one more bottle to receive that free bottle. This offer can be available to anyone at anytime or can be more specific like during the month of November locals residing in Walworth County receive $2 off any one bottle of wine. For example, with a product markup of 20-30% on wine it makes it possible to have promotional discounts of 1-29% off wine and still make a profit depending upon the price and markup on each item. The best route is to keep the promotion at $2-5 or 5-10% off so that it’s enough to be of value to customers and so as not to devalue the quality of the wine. This promotion would be used during the non-peak times of the year to create sales and get customers in the door. These incentives can be made aware to consumers by featuring them in-store, online website, and through other forms of advertisement. All of these activities take a different focus on the consumer with their overall goal being to generate more sales for the winery. <br />Northleaf Winery November 2009 Locals 10% Off Promotion ExampleProduction Cost of 150 Bottles @ $10 each$1500Retail Cost Of 150 Bottles With 50% Markup – 10% Discount$2250 – $150 = $2100Profit MadeFrom Promotion$2100 - $1500 = $600<br />Trade-Oriented Sales Promotions<br />At this time The Northleaf Winery has not chosen to do any trade-oriented sales promotions, however, there are always opportunities in the future. Northleaf Winery may look into distributing its wine through stores in the tri-county area and they could work with small local businesses with promotions.<br />One in store promotion that should be run by Northleaf Winery is to advertise that its wine is now available in another convenient place and when doing this the company getting advertisement in Northleaf Winery could put the wine on special display in their store. These types of promotions would come with a discount for the stores that would be buying it as they would be buying larger quantities of wine. Based on distributing through stores a good goal to set for a trade-oriented sales promotion would be to increase sales by 5% in the first quarter from whatever the sales were at the beginning of the trade-oriented promotion.<br />A trade oriented promotion that works with a small local business will be beneficial to the winery. One promotion is working with a business such as Patty’s Plants where a person could just walk between businesses and experience both businesses. The Northleaf Winery already displays plants in there store that have come from Patty’s Plants and this is a great start. The next step would be to do a type of selling promotion for the plants that are on display and in return have Patty promote the wine or even do a wine tasting outdoors where you can see Patty’s Plants. A different trade oriented promotion would be to work with the Milton House Museum since they both have historical significance to them. An advantage to working with the Milton House Museum would be that it would connect with the locals who live in the Milton area as well as those who have come to visit.<br />Public Relations<br />Public relations can be extremely beneficial to a company, especially a new company that has a limited marketing budget and is looking to get free exposure. There are many different tools that a company like Northleaf Winery can use in order to increase and improve its public relations. <br />Community events are a very effective way to get a business known locally and also create a positive image that potential customers will see. Anything from sponsoring local events to joining in the local parade will allow for company exposure and potentially create positive word-of-mouth advertising. Helping out local non-profit organizations such as the Milton House, the Clear Lake Association, or even Milton Schools will also generate large amounts of positive publicity. If consumers see that a company is helping out the community then they are more likely to buy their products rather than spend their money somewhere else that doesn’t help out their local community at all.<br />A newsletter is also something that would be very beneficial to a winery as well as to its customers. It allows the winery to announce new products and events all while building a relationship with them to ensure repeat business. This newsletter can be sent out to the members of the wine club and give them special privileges such as first tastes of a new wine or discounts for being a member. <br />Another way to improve public relations would be to create press releases for the local newspaper and radio/television stations to potentially pick up. Every time Northleaf Winery releases a new product or hosts an event, let the local media know about it so that they can possibly run the story. This creates an incredible amount of exposure within the target market areas and doesn’t cost a thing. This type of publicity can actually be more effective than advertising because the public views it as unbiased and therefore true. The media may not always pick up a story that a company gives them, but it doesn’t hurt the company to try because it doesn’t cost them anything and the benefits can be extremely advantageous. <br />These days, the Internet is an increasingly popular way for companies to create publicity. Websites such as YouTube, Facebook, and Twitter are all being used to get exposure for businesses and their products. A winery should post a video on YouTube showing how to make wine or what to eat with certain types of wine. They could also have a helpful hint section on their website that previews things that are in the members’ newsletter, inducing visitors to sign up for the newsletter creating greater brand loyalty. The internet has almost endless possibilities for creating publicity for a company. For example, Northleaf Winery should create a Facebook fan group, which could have members such as Milton alumni, one of its main target markets. <br />The main strategy for these public relations tactics is to create a buzz in the community about Northleaf Winery and also to create more word-of-mouth advertising. This type of positive publicity gives a company free exposure and keeps them in the minds of their target market. Not only do these plans work for getting targeting the secondary market but they also put an emphasis on targeting the young professional’s age group of 24-35. They spend an increasing amount of time online (16.7 hours per week) and these tactics focus on that aspect. These tactics also create brand loyalty which has been shown, through studies (Brandkeys), to affect consumers buying habits and cause them to buy the same products over and over. <br />These types of public relations and publicity strategies fit into the overall scheme of the marketing plan in many ways. They combine with the other marketing strategies to create the maximum impact and reach the largest amount of people as possible. These tactics focus mainly on the target markets that Northleaf Winery is concerned with and will bring the most amount of foot and web traffic through the business. This strategy emphasizes the main theme of creating brand loyalty by focusing on the price and quality of the product they offer as well as emphasizing the historic experience of purchasing from them. <br />Tactics 2<br />Strategy & Tactics 1 Recap<br />This IMC campaign has identified two target audiences. The first target audience consisted of the 25-34 year old young professional. The young professional target is substantial in size; currently it is comprised of over 1,100 students in the Whitewater area. Young professionals who graduate with a bachelor’s degree are 40% more likely to consume alcoholic beverages than those who do not. The second target audience consisted of adults’ ages 45-64 living in the Milton area. There are currently roughly 70,000 adults in the tri-county area that fall into this age range. These adults make up 68% of all total wine sales and one reason is that they have more disposable income. Research in the previous sections has shown that these are two audiences worth targeting.<br />The overall positioning strategy for this IMC campaign consisted of two parts and each part was focused on a target audience. The first part emphasized the price and quality of Northleaf’s wines and the second part is more focused on positioning Northleaf’s products as a social catalyst. The overall image that this positioning strategy is trying to create is that Northleaf is a place where someone can come and get a great product at a reasonable price and that the product can be used to relax and be social with friends/family. <br />The four objectives identified for the IMC campaign were as follows:<br />
Increase foot traffic through the winery by 15-20% over opening month levels among people in the target audiences before the Highway 26 rerouting project starts in 2012.
Increase online wine sales to 10% of total sales by February 2011 among people in the United States.
Increase the amount of visitors that sign up for mailing list by 20% each month until February 2010.
Increase number of private party bookings from local organizations by 40% of current bookings by February 2010.
The overall theme is based on the positioning strategy explained above and by positioning Northleaf and its products as a social catalyst. The theme was achieved through many key tactics that are listed below:<br />One-to-One Marketing<br />Relationship Marketing<br />Website<br />Sales Promotion<br />Public Relations<br />Media Objectives<br />The geographic scope of media placement that this plan is looking at is the tri-county area. This includes Rock, Walworth, and Jefferson counties. This area includes a total of 340,636 people. Of these people, about 40% of them fall within the age range of the target market (ages 24-64). This means that about 136,254 people are potential customers that Northleaf Winery should be looking at. <br />It would be ideal to reach all of these people, however, that is most likely not possible. The target number that should be reached however is around 70% of these individuals that fall within the age and geographic range of the target market. Not all of the people who fall within this age range will be wine enthusiasts, but if 70 percent of this group is reached, then there will be a sufficient amount of the population exposed to Northleaf’s products. <br />Effective frequency refers to the amount of times people need to be exposed to a message in order to “get it.” With something as straight forward as a winery, someone doesn’t necessarily need to be exposed as many times as a different product in order to figure out the point that is trying to be portrayed. Something like a banner or billboard doesn’t need to be read into as much as a commercial. The problem with that type of advertising, however, is that it needs to grab the potential customer’s attention so that they see the advertisement. The decided upon number of times that someone needs to see Northleaf Winery’s ads in order to full “get it” is somewhere around four times. Now this can vary from person to person, but on average four exposures will help the company stick in a person’s head and think about Northleaf the next time they are considering wine. This takes into account the fact that it is a new business, the target group, and the clutter that the ads need to cut through.<br />Overall, the gross ratings point (GRP) is found by multiplying together the reach and frequency. This determines how often a certain number of the population is exposed to an advertisement. In this case, with a reach of 70% and a frequency of four times, the expected GRP for Northleaf Winery is 280. This will allow for the optimal exposure to the brand so that the target market considers Northleaf Winery as an option in their decision making process.<br />Media Strategy <br />The media strategy that will be used in promoting the winery will be limited because of cost aspects. The goal will be to provide the partial market coverage the information needed to locate the winery and incentive to make a purchase. A pulsing strategy fits this situation the best because a constant promotional awareness is required with certain times becoming more important than others. The frequency of promotion is more important than the reach of promotion because the area marketed in is relatively small. Consumers must always be aware that the winery exists and creating new and exciting products that they can relate to. The small advertising budget limits the amount of television advising that can be done. However, direct mail and website construction are well within the limits of the budget. The strategy will be to draw consumers into the winery rather than just inform them that it does exist. Promoting free wine tasting or winery tours rather than just information about the winery will draw people into the winery where they can make purchases. The best way to draw people into the winery is by using sales promotions. This can include discounts which add value to the product or incentives like a free wine tasting or after the tenth bottle of wine is purchased the eleventh will be 50% off. These types of promotions will increase store traffic as well as inform the customers about the winery. The main goal of the media strategy will be to keep the customers informed and excited about upcoming produces, events, and sales promotions that are going on within the business.<br />Media Choices<br />Newspaper<br />The first mass media choice will be advertising in a local newspaper. Advertising in a local newspaper was chosen because according to Mediamark Reporter, people in the ages 45-64 target audience use newspapers as their major form of print media (Mediamark Reporter). This is not very surprising because the head of a household is generally who subscribes to a newspaper and people ages 45-64 are generally the head of a household. Also, in most areas 50% or more of households read a daily newspaper and the figure exceeds to around 70% among households with higher incomes and education levels (Belch & Belch, 2007). The 70% figure is extremely important because as research in the situational analysis showed, people with higher incomes are much more likely to be wine drinkers. <br />Some of the other major advantages for advertising in newspapers are: flexibility they offer advertisers, extensive market coverage, and geographic selectivity. Some of the limitations of newspaper advertising are: short life span of the ad, poor reproduction, lack of selectivity, and a great deal of clutter (Belch & Belch, 2007). <br /> Three local newspapers papers were considered for the IMC campaign: The Janesville Gazette, The Milton Courier, and The Jefferson Daily Union. Out of these three newspapers the Daily Union seems to be the best fit for the reasons described below.<br />The Janesville Gazette has the largest number of subscribers as they reach about 20,000 households in mostly Rock and Walworth counties; however, they do very little advertising in their newspaper (Mondo Times).<br />The Milton Courier is the most localized paper as it is located in the city of Milton, but it is only delivered once a week and it only reaches about 3300 households (Mondo Times).<br />The Daily Union is delivered Monday through Friday and reaches about 13,000 households in southern Jefferson, northern Rock and northern Walworth counties (Jefferson Daily Union Online).<br />The Daily Union is the only paper that reaches all three counties that were identified as the tri-county area in the target audience analysis (Jefferson Daily Union Online).<br />The Daily Union will reach people from outside of the city of Milton who are within easy driving distance of the winery, but may not know that the winery even exists.<br />The message of the advertisement should match up with the proposed positioning strategy of price quality and a good social atmosphere as was mentioned in the recap. Also, mentioning the free wine tasting and daily tours is a must because those two elements would be very appealing to potential customers since they are free. To be more specific, the advertisement should have a social background such as a couple having a glass of wine, but then it should mention in words that the prices are very competitive. The name and location of the winery, the web address and contact information, and the free wine tasting and tours should also be mentioned in the advertisement. <br />One intriguing idea would be to request that the ads for Northleaf be put on the same page as the area wedding announcements. Weddings are a place where a lot of wine is consumed and placing an ad near the wedding announcements may get people to think about buying the wine for their wedding from Northleaf.<br />The Daily Union currently charges $11.68 per column square inch per time that the advertisement is run in the newspaper (Jefferson Daily Union Online). An advertisement of around five square inches would likely work well for Northleaf which would put the price per advertisement at $58.40. To get the message to the consumer the ad will likely have to run once a week for about a month, putting the total cost of the campaign around $233.60. This is a very good value for Northleaf because the cost per thousand households reached is about only$.02. <br />Right now with Northleaf’s limited marketing budget, any advertisements in newspapers would likely not be able to be run until the fall of 2009. In the future, advertisements in the other two newspapers mentioned may also be a viable option, but with the limited marketing budget advertising in The Daily Union looks to be the best option right now. Starting the advertisements in October would be a great idea because the tourism season is over and Northleaf will be relying mostly on people from the area for the bulk of their business<br />Television<br />TV advertising is important because TV is the largest advertising medium with the average American household watching over eight hours of TV a day. During the prime time of 8 to 11 P.M. more than 100 million people are watching TV (Belch). With a limited to no budget Northleaf isn’t looking to do prime time advertising but more towards a low-cost local TV ad that will make them aware of the winery and influence them to visit. This will be effective during the fall and winter months because more customers will be in their homes watching TV and looking for something to do now that tourism season is over and most tourist attractions are closed. <br />The advantages of TV advertising include creativity, impact, coverage, cost effectiveness, captivity, attention, flexibility, and selectivity (Belch). Creating a commercial can be done for little to no money if done personally or through an educational program where students are looking to get experience in producing commercials. The commercial would consist of a view of The Northleaf Winery from the outside and how to get there or seeing a tour through the inside of the winery giving viewers a sense of what they have to offer. The goal behind the TV advertising is make people aware of The Northleaf Winery and influence them to stop on by. As with all the advertising media choices, Northleaf wants people to know its name, location, website, hours, and what makes it unique.<br /> In order to reach the targeted markets the best option is to go through the local cable provider Charter Communications. Charter will not only help you identify the correct market but also when and where to air commercials so that money isn’t wasted on useless advertising. Advertising can take place on stations like the Food Network or Travel Channel. Not only does cable TV cover over 75% of all American households but its viewers also watch over 60 hours of TV a week compared to noncable viewers who are only watching around 42 hours of TV (Charter Media). Local TV advertising is estimated to cost around $5 per 1,000 people and can be less than $100 for a 30 second commercial slot. This cost can be less depending upon how many commercials purchased and the size of the targeted market (How Much Do Television Ads Costs?). <br />Another newer form of advertising to also consider is TV advertising through ads on Charter on Demand which allows viewers to look through a series of businesses and choose to view ads of their choice. Charter on Demand customers are 22% more likely than non-subscribers to spend $3,000+ on travel and leisure which would include traveling to a winery or relaxing with a nice bottle of wine. The subscribers are also identified as mostly age 25-44 and seek local information on travel and leisure services (Charter Media). It’s unaware of what this advertising medium would cost but it should run cheaper than a commercial because it will be reaching a smaller group of people as people actually need to find the advertising unlike the commercial which brings it to your TV whether the consumer likes it or not. <br />Media VehicleVehicle AudienceTarget Audience in the Vehicle AudienceCost of the AdvertisementCost per thousand (Total Audience)Cost per Thousand (Target Audience)Newspaper advertisementHouseholds receiving The Jefferson Daily Union8500 people*$58.40 per ad**$233.60 total for campaign$.02$.03***Television AdvertisementHouseholds receiving Charter Cable1000 people*$100+ per add*$.10n/a<br />*Estimated Number<br />** Source: Jefferson Daily Union Online<br />***Number used the estimated figured for Footnote 1<br />Banner<br />One media choice that Northleaf Winery has always been looking into is the banner that hangs right outside its doors, over the road. The advantages of being displayed on the banner would include the number of people it would reach see it each day when driving, the location of the banner is right outside The Northleaf Winery, and the number of times that one person would pass the banner would cause recognition of The Northleaf Winery in their mind. One issue that was run into was that they were not sure that they would be allowed to put their winery on the banner since it would be promoting the sale of alcoholic beverage. There are a couple different ways to get around this issue.<br />The first way to avoid the concern about the Winery promoting alcohol would be to sponsor an event that is being held and will be displayed on the banner. The cost that would be associated with this would be the cost to sponsor an event. This could run from donating a gift basket to an auction or sponsoring an event held by the Milton Historical Society. A sponsorship would most likely run around $600 depending on the event and the level of involvement. <br />Another way that The Northleaf Winery could be displayed is for the Milton Historical Society. Since The Northleaf Winery’s building is recognized as part of historic Milton it could be involved and promoted on the sign for its historic significance within the town. The cost of this would be minimal if there was a cost.<br />The banner in Milton would be a good idea for The Northleaf Winery to consider for the future. It would help increase awareness about the winery and would reach all different people while they are driving. It will help people who are both interested in wine to recognize the winery and those interested in historic Milton. <br />Every Point of Contact Builds the Brand<br />A couple points of contact that Northleaf Winery can participate in without spending much of the marketing budget are the donation of items for auction and product placement at local events (such as wine glasses). <br /> Northleaf Winery needs to promote goodwill through auction items for charity raffles and organizational events. A couple objectives for charity raffles and auctions are:<br />Donate to 1 event every 3 months<br />Participate in the Milton/Janesville/Whitewater area<br />By participating in these events Northleaf will be able help spread knowledge about the winery and therefore increasing the general populations’ awareness of the brand. The idea behind promoting the goodwill of the winery is that customers will seek out Northleaf for their wine needs. Northleaf should actively look for opportunities to donate to. These events should be located in the Milton/Janesville/Whitewater area, as this is a great place to find individuals that fall within both target audiences. Also by seeking events, it is probable that organizations will seek out Northleaf when looking for auction items. These requests should be evaluated, and if they seem like viable options for promotion they should be taken advantage of. <br />Northleaf could also promote the company and its products through product placement. This could be done through use of Northleaf wine glasses at weddings and events that serve Northleaf wines. One objective would be to secure two events every year.<br />By selling wines to private events, such as weddings or reunions, Northleaf will be able to sell a substantial amount of wine to an individual event. During the event people may not always know where the wine is produced, but if it is printed on the glass they are drinking out of they are sure to notice. Doing an event like this is also sure to educate the consumer of Northleaf Winery and boost brand awareness. This type of event would be best tailored towards the young professional audience. They are the most likely to be getting married, and will have the biggest demand for a provider at a wedding reception. Northleaf should advertise this within the realm of the store to make people knowledgeable of the service. It also could be advertised during peak wedding seasons, most likely included in an email newsletter or printed in a newspaper ad next to engagement announcements. <br />Overall Budget<br />The overall budget for Northleaf Winery is pretty small due to the company’s new existence and a lack of funds. Northleaf decided to focus on regional tourism magazines and print brochures this spring, which ended up costing around $2500. Also, a few mass media newspaper announcements were made promoting the opening and any new wines. The proposed budget given by Gail for next fall is $1000 - $1500, significantly less due to the lack of tourists in the fall. This range allows for a few ways to allocate these funds into direct mailing and a newspaper. <br />The first of two places to invest for one-on-one marketing in mass media is one of the local newspapers called The Jefferson Daily Union. This form of mass media was chosen, because there is a paper Monday-Friday, it reaches all three counties in the suggested target audiences, as well as other potential customers within driving distance of the winery. The strategy is to run a five square inch ad once a week for a month in the fall that would cost $233.60. <br />The second of the two areas is direct mailing to our target audiences with a postcard. The cost of 1,000 mailers to the Milton area would be $399 for all supplies, while the cost of 1,000 mailers to young professionals would be $674. This would bring total costs for direct mailing to $1073 or most of the budget for fall. The cost for the direct mail should cause for some foot traffic and overall awareness.<br />A ShipShape direct mailing was looked into but was deemed too expensive to justify doing it. A 1,000 person ShipShape mailing would cost an estimated $7,285.00 (ShipShapes, 2009). Even with the higher response rate of 10.4% (400% greater than that of a postcard direct mail (ShipShape, N.D.) the sales needed to make up for the mailing would be unlikely.<br />Northleaf has invested $2500 so far through tourism magazines and brochures, which leaves no budget for the summer where tourism will be the most prevalent. The proposed budget for fall will invest in direct mailing to both target audiences and take up a little more than 70% of the overall budget. Mass media will be used with The Jefferson Daily Union and will only take up 16% of the budget. The overall proposed budget is $1500 and will be comprised of the following:<br />Appendix<br />Works Cited<br />Website Sources<br />Abbyland Foods. Retrieved February 16, 2009 from http://www.abbyland.com/<br />Apple Barn Orchard and Winery. Retrieved February 16, 2009 from<br />http://www.applebarnorchardandwinery.com/index.html<br />Auction Guide. The Internet Guide to Auctions and Auctioneers. 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