Lagarde consulting project master rev2

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Lagarde consulting project master rev2

  1. 1. USD Consulting Group: US Market Expansion Analysis  Brandon Britton|Ann Sophie Loehde|Erin Majorsky|Paula Martinez-Barros-Rodriguez|Tony Maude
  2. 2. Agenda A Where does Bodega Lagarde want to be in the US? B Where is Bodega Lagarde currently positioned in the US? C How do we get there? 1 Distribution Expansion 2 E-Commerce Exposure 3 Heighten Brand Awareness D Implementation Guidelines
  3. 3. Where does Bodega Lagarde want to be positioned in the US?
  4. 4. Where does Bodega Lagarde want to be in 5-10 years? “Bodega Lagarde produces some of the finest Malbec in the region. Exquisite quality and value! 95+ point wines” – Robert Parker +130% +50%
  5. 5. Where does Bodega Lagarde want to be in 5-10 years? Sales  Increase our sales to US from 21,000 to 30,000 9lts Cases  Revert our product mix to enhance sales of Lagarde Reserva, and upper brands according one of the main goals of our Winery  Increase Mix of Rest of Upper Brands (Lagarde, Guarda, PV & Henry) Brand  Be Argentina s top 5 wineries, focusing on quality and terroir wines renowned for our family history and environmentally friendly production  Press recognized for being a family owned and managed Winery with 100% owned vineyards  Use upper brands for positioning our quality and general winemaking history
  6. 6. Agenda A Where does Bodega Lagarde want to be in the US? B Where is Bodega Lagarde currently positioned in the US? C How do we get there? 1 Distribution Expansion 2 E-Commerce Exposure 3 Heighten Brand Awareness D Implementation Guidelines
  7. 7. What is current Bodega Lagarde presence in US?  Bodega Lagarde Imports 21,473 cases (193,253 liters) of wine into the US each year across multiple tiered line  Current revenue total is $1,052,525 FOB (~$49/case)
  8. 8. How is Lagarde positioned with other Argentine wine in the US?
  9. 9. Agenda A Where does Bodega Lagarde want to be in the US? B Where is Bodega Lagarde currently positioned in the US? C How do we get there? 1 Distribution Expansion 2 E-Commerce Exposure 3 Heighten Brand Awareness D Implementation Guidelines
  10. 10. Lagarde US Growth Strategy Distribution Increased Presence in US Brand Awareness E-Commerce
  11. 11. Agenda A Where does Bodega Lagarde want to be in the US? B Where is Bodega Lagarde currently positioned in the US? C How do we get there? 1 Distribution Expansion 2 E-Commerce Exposure 3 Heighten Brand Awareness D Implementation Guidelines
  12. 12. Why should Lagarde focus distribution improvements? 6,000 US Wineries (7,000 brands) 550 Major Distributors 76 Million Consumer s $30 Billion Retail Sales  “In 2012, [Argentine] wine exports increased in volume by 17% to 365 million liters and in value by 10.15%, reaching US$920.4 million, according to the National Institute of Vitiviniculture (INV). To continue exporting, many wineries are focusing on medium- and high-price brands, where they have more leeway to adjust prices. Others simply are ceasing to export.” – InfoSur Hoy; Argentine Wine Industry Strives to Expand Internationally
  13. 13. Distribution Expansion: Wine Industry Value Chain PULL
  14. 14. Where should Lagarde focus distribution improvements? US Wine Consumption Per Capita  West coast (CA, OR, WA, NV) and Northeast (MA, NY, NJ, NH) have high concentration of per capita wine consumption and should be a focus of distribution channels
  15. 15. Where should Lagarde focus distribution improvements? US Consumer Friendliness  American Wine Consumers Coalition (AWCC) creates an annual „report card‟ for each state  Grading (A-F) based on consumer access to wine, local state governance and laws, and restaurant availability http://www.wineconsumers.org/wpcontent/uploads/2013/08/ConsumingConcerns4small.pdf
  16. 16. How can Lagarde secure a successful importer and distributor?  We surveyed the market.   Academic & Sales Approach. Personalize the initial introduction email via „mail merge‟.    No more mass emails via BCC. Need to SELL prospects on the introduction. Follow-up on every email with a phone call.  Create a Process for the followup phone calls.
  17. 17. How do we qualify the importers/distributors? Step 1: Personalize mass emails via Mail Merge  Most people do not read obvious mass emails (ie, BCC)  Personalize mass emails using a mail merge between Microsoft Excel and Microsoft Word  Our consulting team has created a mail merge using Lagarde‟s current list of importers
  18. 18. How do we qualify the importers/distributors? Step II Notes to Lagarde • The introduction email should SELL the importer/distributor on Lagarde‟s product • The social media hyperlinks should be below the signature, not in the body of the email • The Bodega Lagarde brochure should be attached to this email
  19. 19. How do we qualify the importers/distributors? Step III  CALL Importers!  Every prospect that received an email, should receive a follow-up phone call.  Most decision makers will not reply to generic emails, the personal touch of a phone call is a MUST.  Recommend creating a new process for follow-up phone calls:   Sole task to follow up and qualify prospects.   Hire an intern, employee, or commission based consultant. Once prospects are qualified, Sebastian can take over. Keep track of prospects in a database.
  20. 20. Distribution in Summary  Immediate focus on the West Coast (California, Oregon, Washington) and North-Eastern States (New York, New Jersey, Connecticut)  The Three Step Method for Qualifying Importers.  Provide Incentives for Importers to move volume (Bonuses, Trips, etc). Additional Resources:  Search reviews of importers from wine producers worldwide (http://www.nopaywinedistributors.com/).  Implement a process for following up on qualified importers/distributors.
  21. 21. Agenda A Where does Bodega Lagarde want to be in the US? B Where is Bodega Lagarde currently positioned in the US? C How do we get there? 1 Distribution Expansion 2 E-Commerce Exposure 3 Heighten Brand Awareness D Implementation Guidelines
  22. 22. What is E-Commerce? Definition: Commercial transactions conducted electronically on the Internet. Importer • Application to the E-Commerce Website • *typically completed by the Winery Lagarde •Importers & Distributors deal directly with the site •*Similar process as selling to store fronts & restaurants Consumer •Same licensing regulations apply Website •Importer must be licensed for state of the end consumer
  23. 23. Why E-Commerce? Advantages Consumer Producer Disadvantages • • • • • Convenience Discounts Ease of search Wide range Future / Credit Card payments • • • • • Increase customer reach Increase brand awareness Insulation against economic downturns in specific areas Flexible hours of operation Lower cost than a brick and mortar storefront • • • • • • • • Delivery times Lack of personalized customer service Less pleasant purchase Insecurity Low knowledge Competition is a few “clicks” away Customers often have less trust for online transactions Social aspects and customer service more difficult
  24. 24. What is the typical online buyers profile?  Baby Boomers and Millennials / Generation Y key online market  Purchase more imported wines  Purchase higher price wines as opposed to offline purchases  Online sale of alcohol up 19% (beers, wines, and spirits).
  25. 25. • • • • Ages 46 - 66 Married 2 children Well established in their careers Own a home in La Jolla Have a Facebook and Linked-In Profiles Use online resources for news, information, and shopping Enjoy high-end restaurants for monthly “date night,” also appreciate a evening at home with a glass of Lagarde • Ages 36 - 46 • Single/Married • Starting a new career • Own condos in San Diego • Have profiles on Facebook, LinkedIn, Twitter, Instagram, and Match.com • Enjoy going out with friends and attending social events • Use online resources for research, news and information, socializing, and shopping Jen & John “Millennials” / Gen Y “Baby Boomers” • • • • Laurie & Michael Generation X Susan & Tom • Ages 21 - 35 • Engaged to be married • Early in their careers • Rent a condo downtown San Diego • Have profiles for Facebook, Twitter, Instagram & Linked-In • Enjoy nice classy higher-end social events • Great at multitasking • Use online resources for research, work, finances,
  26. 26. US consumers spend 23% of their disposable income online, slightly higher than the 22% average across 15 countries
  27. 27. Who spends more online?  Boomers spend a good portion of their large disposable income over the internet.  “Older Boomers” spend the most online of all generations  “Younger Boomers” were the next biggest spenders, closely followed by Gen Y.
  28. 28. What are the steps to E-Commerce?  Step-By-Step Guide to starting in E-commerce
  29. 29. E-Commerce in Summary  Increase consumer access  Increase brand awareness  Reach a greater and diverse audience  Increase sales
  30. 30. Agenda A Where does Bodega Lagarde want to be in the US? B Where is Bodega Lagarde currently positioned in the US? C How do we get there? 1 Distribution Expansion 2 E-Commerce Exposure 3 Heighten Brand Awareness D Implementation Guidelines
  31. 31. How can Lagarde increase brand awareness in South America and the US? Social Media Presence (SA) Leverage social media presence in South America Social Media Presence (US) Establish social media presence in the US Event Partnerships Partner with events that attract potential customers
  32. 32. How effective is social media as a marketing strategy? Reaches potential customers with a clear idea of the product Success of campaigns can be monitored Direct customer feedback to improve product/ service Customer relationships become more intimate Share of participating businesses (out of 3025) Effect of Social Media According to the Social Media Marketing Industry Report 2013 100% 80% 60% 40% 20% 0% 89% Increased exposure 75% Increased traffic 69% 65% 61% 58% 54% 47% 43% Provided market place insight Develped loyal fans Geenrated leads Improved search rankings Grown business partnerships Reduced marketing expenses Improved sales
  33. 33. Is social media right for Lagarde in the US? Social Media in the US  US has the highest social media usage with 52% of the population  22% of Americans use social networks several times per day  75% of the households with an income >$50,000 are social network users  Only 33% have ever followed a brand  room for improvement! % of internet users in each group US Social Network User Penetration by Age in 2013 100% 80% 60% 85% 40% 93% 85% 77% 65% 20% 57% 36% 17% 0% 0-11 12-17 18-24 25-34 Age Group 35-44 45-54 Gen Y Gen X 55-64 “Boomers” 65+
  34. 34. What to consider when using social media platforms in the US? Platforms Measures  Facebook and Twitter as most popular platforms worldwide  Instagram very popular, uses hashtags, pictures and videos evoke stronger responses  Measuring performance is key Content  Create clear image of product and company culture  Personal and emotional  Engage customer to get valuable feedback  Carefully monitor campaigns’  Develop KPI scheme  Social networks provide data  Create HootSuite account
  35. 35. Leverage social media potential with limited resources Sign up for HootSuite 1. Manage social media platforms simultaneously 2. Schedule posts in advance (hours, days, weeks) 3. Track results in direct comparison 4. Smartphone App available 5. Email reports on performance
  36. 36. Timeline for Social Media Strategy Implementation January February Launch social media presence in the US simultaneously to new website Improve US Facebook page and set up Instagram/ Twitter Leverage guidelines provided for existing platforms, link Instagram and Facebook March Set up HootSuite account, develop KPIs and set specific goals
  37. 37. Agenda A Where does Bodega Lagarde want to be in the US? B Where is Bodega Lagarde currently positioned in the US? C How do we get there? 1 Distribution Expansion 2 E-Commerce Exposure 3 Heighten Brand Awareness: Strategic Partnerships D Implementation Guidelines
  38. 38. Three stages of enhancing brand awareness via partnerships Stage 1 Stage 2 Stage 3 Brand Exposure Attention Acceptance Understanding Intention Trial & Success
  39. 39. What kind of partnerships are suitable for Lagarde? Benefits of Event Sponsorship  Sponsorship is highly effective in the early stages of market development  Price efficient  Synergies with the performance on social media platforms Suitability of Art Events  Fits the target market regarding lifestyle  Publicity in relevant/ specialised press  Lagarde has the expertise in this area as they sponsor art events in Argentina
  40. 40. Brand Awareness in Summary  Heighten brand awareness  Enhance social media presence in South America  Create social media presence in the US  Partnerships with art gallery exhibitions and events
  41. 41. Agenda A Where does Bodega Lagarde want to be in the US? B Where is Bodega Lagarde currently positioned in the US? C How do we get there? 1 Distribution Expansion 2 E-Commerce Exposure 3 Heighten Brand Awareness D Implementation Guidelines
  42. 42. Lagarde US Growth Strategy – Implementation Strategy and Value Phase III Impact/Focu s • Combine social media platform with partnerships in US • Dedicated distribution/export manager located in US • Independent E-Commerce functionality on Lagarde website Phase II • Establish US social media presence • US based distribution consultant (part time) • Apply to additional existing e-commerce specialty distributors (eg ChambersStreetWines.com, KLWines.com, etc.) Phase I • Increase SA social media presence • Send revised prospecting email content (via mail merge), follow up with regular cadence • Apply to one existing e-commerce distributor (eg Wine.com, WineExpress.com, etc.) Resources/Commitment
  43. 43. Thank You
  44. 44. Backup
  45. 45. Implementation Strategy and Impact Impact to Import Quantity 5-10% 10-25% 25%+ Import/Distribution E-Commerce Brand Awareness Send revised prospecting email content (via mail merge), follow up with regular cadence Apply to one existing e-commerce Manage local Facebook account distributor (eg Wine.com, with weekly content, manage WineExpress.com, etc.) analytics Hire US based distribution consultant (part time) Apply to additional existing ecommerce specialty distributors (eg ChambersStreetWines.com, KLWines.com, etc.) Hire dedicated distribution/export Independent E-Commerce manager located in US functionality on Lagarde website Manage US Facebook account with weekly content, use HootSuite to manage social media platform Combine social media platform with event sponsorship in US
  46. 46. Outline of Deliverables I. Import/Distribution in the US    II. Research regional distribution channels in US that align to the Lagarde brand and vision Provide list of vetted import/distributors based on research (focus on Northern CA, Northwest US, NY/NJ) Analyze and provide recommendations for best practices in seeking out and establishing distribution partnerships in US E-Commerce in US    III. Research and provide a short list of wine ecommerce websites that would fit the Lagarde line and vision Create Step-by-Step guide on how to get on to these sites Provide recommendations and best practices for future steps and expansion Marketing and increased brand awareness    Analyze current social media platforms including all the usage data on FB Provide recommendations and best practices on how to leverage current FB, Instagram and Twitter accounts better in Latin America AND expand into US Research additional marketing channels and outlets that align to Lagarde brand to heighten consumer awareness in US and Latin America
  47. 47. Where should Lagarde focus distribution improvements? US Consumer Friendliness (Map)
  48. 48. References     http://www.svb.com/uploadedFiles/Content/Blogs/Wi ne_Report/2014_Report/wine-report-2014-pdf.pdf http://wineeconomist.com/2009/05/05/thedistribution-bottleneck/ http://www.nopaywinedistributors.com/California/Hen ry-Wine-Group-129.php? How to write an email that sells wine or spirits
  49. 49.   Building Strategic Partnerships in Wine Marketing: Implications for Wine Distribution Argentine Wine Industry Strives to Expand Internationally    “In 2012, wine exports increased in volume by 17% to 365 million liters and in value by 10.15%, reaching US$920.4 million, according to the National Institute of Vitiviniculture (INV).” “In January and February, overall wine exports fell by 24% to 44.6 million liters (export values fell 6% to US$120.9 million), according to a report by Caucasia Wine Thinking consultancy released by cronista.com.” “To continue exporting, many wineries are focusing on medium- and high-price brands, where they have more leeway to adjust prices. Others simply are ceasing to export.”
  50. 50. Major Distributors in Southern California  Southern Wine & Spirits    Founded in 1969, Southern Wine & Spirits of California is today far and away the Golden State's single largest wine and spirits distributor. In fact, according to a recent survey in Impact Newsletter, a publication of M. Shanken Communications, Southern Wine & Spirits of California will lead all the state's wine and spirits distributors in estimated total alcoholic-beverage sales in 2006; this No.-1 ranking also makes the California operation the single largest state entity in the 32-state network that comprises Southern Wine & Spirits of America, Inc. http://www.southernwine.com/ Young’s Market  Young's Market Company is one of the nation's largest distributors and brokers of beverage alcohol with operations in California  http://www.youngsmarket.com/index.php
  51. 51. Miscellaneous Notes   “I would send every sample I could to the wine reviewers....a nice score from Robert Parker and he would have importers lining up to kiss his you know what....but the wine would have to be an over-saturated oak-bomb to get an over 90 score from Parker.” –Dennis (Former buyer for Costco) (Kris Garrett)     The above partners would be what I'd consider the mid to high mid level tier of distribution for both size and capability to operate as a distributor versus a broker. The distinction between broker and distributor is possession of the wine. Broker work as agents of the winery and never take possession of the product but rather just a % fee for bringing the wines to buyers and taking orders that are passed along to the winery. This route is best for boutique wineries with low to moderate case production that prefer the very personal and attentive nature of the winery-broker relationship. This is the route I am taking with our new winery. In my opinion this is by far the best way to establish a new brand with restaurants and fine wine stores. Larger distributors often overlook wines in their books due to the large number they represent. The drawback is brokers do not take possession and thereby purchase the wines upfront from the winery. This is mainly an issue of cashflow. In exchange for the up front cash, the winery is conceding a lower margin and loss of control for the sales methods. Distributors such as Young's Market, Southern Wine & Spririts, and Wine Warehouse dominate the CA market, however I've seen many wineries chase the cash and then become pawns in discount schemes these distributors frequently employ. Unless you are part of a larger import group you loose the power to draw the salesperson's attention in these large distributors.
  52. 52. E-Commerce Backup Slides
  53. 53. Which Online Sites should Lagarde pursue?  Wine.com   125 Argentine Wines  Average Price $15 - $20   “great selection, low prices, convenient delivery and information that helps you enjoy wine with confidence” http://www.wine.com/ Chambers Street Wines  “naturally made wines from artisanal small producers” 4 Argentine wines  Average price $20  http://chambersstwines.com/   K&L Wine Merchants  “offer outstanding wines from across the globe” 56 Argentine wines  Average price $10 - $25  http://www.klwines.com/ 
  54. 54. Which Online Sites should Lagarde pursue?  JJ Buckley Fine Wines  “premier fine wine retailers in the United States”  18 Argentine wines  Average price $45  https://www.jjbuckley.com/  WineExpress.com  "high standards and specifications"  11 Argentine wines  Average price $25  http://www.wineexpress.com/
  55. 55. Steps to Begin in Ecommerce Step 1: Step 2: Determine which site best fits your brand Follow the online application process The majority of the sites require an email application or contact via the direct website Specific information necessary in the email includes: 1. Company Specifics (History, Offerings, Brand, etc.) 2. Inventory and location of the inventory, 3. Price points 4. Digital copy of label image 5. Awards and press *May be able to use same or similar email being sent to non-online importers/distributors Wait for response from the website, but if no response in 2 days follow-up with a phone call. Step 3: *Fairly quick turn-around time: some emails returned within hours, others the next day Step 4: Step 5: Step 6: Discuss with importer in the area Launch your brand with the site Periodically confirm that brand is being represented to standards
  56. 56. Brand Awareness Backup Slides  Detailed explanation in content discussed
  57. 57. How can Lagarde address the US customers via Social Media Platforms? Facebook and Instagram  Show your product in action by the people who love them  Let your photos speak the culture of your company, your product, and your customers  Find out who and what your customers love so you can share those people and things with them  Get personal with your customers and show things that have nothing to do with marketing, but everything to do with being human  Inspire and motivate people by making the text along with your image powerful Posting on Instagram  Show your followers how to use hashtags by using them in your own updates  Promote your Instagram everywhere including your website and your other social media accounts
  58. 58. Example: Beringer Vineyards (Napa Valley)  Inspiration and motivation  Powerful picture  Talks directly to the customer  Logo included
  59. 59. Example: Beringer Vineyards (Napa Valley)  Powerful picture  Talks directly to the customer  Sells the Californian lifestyle  Powerful wording  Logo included
  60. 60. Tweeting Twitter  Prepare post on terms of content first – clearly think about what you want to say first!  Try taking a key point from your post and including it in the tweet: Never use more than two hashtags in a tweet!  Ask a question: “Struggling to decide on a wine for dinner? You need to read this xxx #article”   You offer a solution   Identifies an issue people might have when choosing a wine Strong statement: “You need to read” Invite audience to participate in the middel of the Tweet   “(…) Have you got any tips to share? We'd love to hear them!“ Tweet across the day
  61. 61. Metrics Facebook Facebook 1 Reach of page and per post 2 No. of users engaging with your posts 3 Development of Net Likes 4 Negative post: Post Hides, Hides of All Posts, Reports of Spam, Unlikes of Page
  62. 62. Metrics Facebook Facebook 1 2 3 4 Reach of page and per post No. of users engaging with your posts Development of Net Likes Negative post: Post Hides, Hides of All Posts, Reports of Spam, Unlikes of Page
  63. 63. Metrics Facebook Facebook 1 2 3 4 Reach of page and per post No. of users engaging with your posts Development of Net Likes Negative post: Post Hides, Hides of All Posts, Reports of Spam, Unlikes of Page
  64. 64. Metrics Instagram Instagram  Statigram 1 Followers  must not be only metric 2 Relationship between frequency of posts and follower development 3 Engagement most important 4 User generated content 1 Monitor keywords, hastags 2 Create hashtags for certain events and monitor event specific usage
  65. 65. Metrics Instagram Instagram  Statigram 1 Followers  must not be only metric 2 Relationship between frequency of posts and follower development 3 Engagement most important 4 User generated content 1 Monitor keywords, hastags 2 Create hashtags for certain events and monitor event specific usage
  66. 66. Metrics Twitter Twitter  Timeline Activity Dashboard 1. Follower growth 2. Follower quality and engagement 3. Reach (Retweets) 4. Traffic 5. Conversion (singing up)
  67. 67. Leverage Social Media potential with limited resources Sign up for HootSuite (Social Media Management System for Brand Manager) 1. Manage several social media platforms simultaneously 2. Schedule posts in advance (hours, days, weeks) 3. Track results in direct comparison 4. Smartphone App available 5. Email reports on a monthly basis Free Plan     $9.99$/ months Up to 5 Social Profiles Basic Social Analytics 2 RSS Feeds Smartphone App  50 Social Profiles  Enhanced Social Analytics  Unlimited RSS Feeds  Support Team for Influencing Scores and Recommendations on Posting Behaviour  Archiving  Smartphone App
  68. 68. Leverage Social Media potential with limited resources Sign up for HootSuite (Social Media Management System for Brand Manager)

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