Building brand loyalty in wine - May 23rd, 2012
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Building brand loyalty in wine - May 23rd, 2012

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Building brand loyalty in wine

Building brand loyalty in wine

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Building brand loyalty in wine - May 23rd, 2012 Building brand loyalty in wine - May 23rd, 2012 Presentation Transcript

  • Building brand loyalty in wine May 23rd, 2012 Wine Intelligence at London International Wine FairFollow the discussion on Twitter#LIWF@wineintell © Wine Intelligence 2012
  • Branding: the theory “A brand is a name, term, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors” (Kotler 2001) “Brand is a deceptively simple concept. Everyone can immediately come up with an example of a typical brand, but very few people are able to propose a satisfying definition” (Jean-Noel Kapferer, 2001) 2
  • To be effective, a brand must have. . . .  Authenticity  Authority “Customers must recognise that  Friendliness you stand for something”  Status - Howard Schultz, Starbucks  Loyalty  Irreverence  Conscience …all of which combine to make a brand identity, to provide direction, purpose and meaning for a brand 3
  • The product attribute fixation trapBrand “identities” that rely solely on product attributes, e.g.  It tastes better  It’s better quality  It goes faster  It lasts longerRemember:  Any non-trademarked attribute can be copied anyway  Product attribute positioning assumes a rational customer (!)  It limits brand extension strategies  And reduces strategic flexibility 4
  • Brand positioning A brand position is the part of the brand identity and value proposition that is actively communicated to the target audience and that demonstrates an advantage over competitive brands Good positioning communicates:  Emotional benefits (“you’re worth it”)  Rational benefits (“it does the job better than anything else”)  How you can turn desire into action 5
  • If you’re still wondering what the difference isbetween a product and a brand… “In the factory we make cosmetics. But in the store we sell hope.” - Ron Perelman, Chairman of Revlon 6
  • Branding and the wine industry
  • In wine, we need to scale our brand ambitions to thefollowing tasks:1. How to get the consumer to notice you2. How to get the consumer to feel reassured by you3. How to get the consumer to remember you 8
  • Understanding subconscious behaviours is useful tosupport our complex category Category Social complexity complexity Range of SKUs Wine’s role in the social environment 4 COMPLEXITIES OF WINE ? Situational Product complexity complexityAppropriateness of wine for Variability of style, different occasions vintage and variety etc. 9
  • Brand loyalty and consumers
  • What are consumers loyal to? Price ¾ of consumers £5 - 8 usually buy… what is on 61% promotion Varietal Promotion 1/3 usually buy 55% wines from the 73% same brand Brand 35% Origin (Country / region) Own label 30% 22% 11SOURCE: Wine Intelligence Vinitrac® UK, May 2012, n=1,003 UK regular wine drinkers
  • Who are your consumers? More interested in wine Adventurous Connoisseurs GenerationINVOLVEMENT Treaters 3 ML 2.7 ML Mainstream- at-Homers Risk-averse Senior Sippers Youngsters 8.3 ML Less interested in wine 6.9 ML Kitchen 5.1 ML Casuals 2.9 ML Younger AGE Older Size of bubble is proportional to size of population 12SOURCE: Wine Intelligence Vinitrac® UK, March and July 2011, n=3,052 UK regular wine drinkers % in bubble = % of total value
  • Portraits at a glance: We group UK wine drinkers into 6 segments, each with a distinct relationship with wine Adventurous Connoisseurs are middle- aged confident wine drinkers who enjoy experimenting within their wine lives Generation Treaters areKitchen Casuals are younger wine drinkers who 10% 11%middle-aged and infrequent are growing in confidence andwine drinkers, who are experimenting with caution intypically unengaged with the 9% their wine choicecategorySenior Sippers are 24%older, less frequentwine drinkers with alimited interest inwine 29% Mainstream-at-Homers 18% are middle-aged ‘core’ wine Risk-averse Youngsters are younger wine drinkers, drinkers who view their wine lacking in confidence and still drinking as a frequent treat growing into the wine category SOURCE: Wine Intelligence Vinitrac® UK, March and July 2011, n=3,052 UK regular wine drinkers 13
  • Portrait groups overview Adventurous Generation Mainstream- Risk-averse Senior Kitchen Connoisseurs Treaters at-Homers Youngsters Sippers Casuals Who are Younger, Younger wine Middle-aged or they? Middle-aged and conservative wine Older, less drinkers, lacking older and higher income drinkers who Middle-aged ‘core’ frequent wine in confidence and infrequent wine confident and experiment with wine drinkers from drinkers with a with low interest drinkers, typically experienced wine caution and use across the UK limited interest in in the wine unengaged with drinkers price as a proxy for wine category the category qualityWhy do they Wine is an A relatively Wine is one of adrink wine? Wine is a hobby, Wine is a social A glass of wine at affordable drink affordable and set of alcoholic which they enjoy drink that projects the end of the day choice when healthy choice for drinks, which exploring and an image of who is a frequent treat spending time their occasional they consume experimenting with they are to others with friends alcoholic drink infrequently Where? Drink at home and Buy in in the on-trade. Generally drink Pick up a bottle Highest likelihood supermarkets, Almost More often than wine at home, and on their way out to among all groups to and mostly drink exclusively others found in buy wine as a part see friends, and drink wine in bars at home, although consume wine in wine shops, but of the weekly rarely stock up on and pubs occasionally also the off-trade mainly shop in supermarket shop wine at home in the on-trade supermarkets What do Looking for a Like Seniorthey drink? Large repertoire, “good value for Tend to stick to Consume from a Sippers, and enjoy trying Growing repertoire, money” everyday “easy choices” in narrow repertoire consume from a new styles and and enjoy trying wine – know their terms of brands, that is driven by narrow repertoire regions – but also new wines brands, but will try varietals and low prices that is driven by buy big brands anything on origins low prices promotion 14
  • Which brands they buy the most? Brand mapping More interested in wine Adventurous Connoisseurs GenerationINVOLVEMENT Treaters 3 ML 2.7 ML Mainstream- at-Homers Risk-averse Senior Sippers Youngsters 8.3 ML Less interested in wine 6.9 ML Kitchen 5.1 ML Casuals 2.9 ML Younger AGE Older Size of bubble is proportional to size of population 15SOURCE: Wine Intelligence Vinitrac® UK, May 2012, n=1,003 UK regular wine drinkers % in bubble = % of total value
  • Building brand loyalty Building brand loyalty is about relevance and knowing what is important to consumers So… what is important to consumers? 16
  • What is important for them when buying wine? Value for money and consistency lead for all Portrait groups Story behind the wine Unusual More interested in wine Producer’s passion Anti-marketing Natural/organic Adventurous Connoisseur GenerationINVOLVEMENT Treaters 3 ML 2.7 ML Reassurance Wines that in taste / origin bring back nice memories Mainstream- At-Homer Risk-averse Senior Sippers Youngsters 8.3 ML Less interested in wine 6.9 ML Kitchen 5.1 ML Casuals 2.9 ML Younger AGE Older Size of bubble is proportional to size of population 17SOURCE: Wine Intelligence Vinitrac® UK, May 2012, n=1,003 UK regular wine drinkers % in bubble = % of total value
  • Communicating brand through labels
  • How do consumers view brands? Consumers in focus groups place wines in groups based on perceived price and frequency of discounting STANDARD DISCOUNT FAMILIARS / HIGH BRANDS TV BRANDS QUALITY (depending on Portraits group) 19Source: Wine Intelligence focus groups, London, April 2012. Groups conducted with Mainstream-at-Homers and Generation Treaters
  • UK consumers expect higher price out of traditionallabels Expected price Mean expected price if found in shop where usually buy wine Base=All UK regular wine drinkers (n=1,016) £6.95 £4.67 Stately Light-hearted Source: Wine Intelligence, Vinitrac© UK, March 2011, n=1,016 UK regular wine drinkers 20
  • Exercise1. What does the brand owner want to communicate?2. How do they communicate it?3. Who is the target consumer? 21
  • Thank you © Wine Intelligence 2012www.wineintelligence.com