Cal Poly Wine


Published on

marketing benefits for cal poly slo wine club

1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Cal Poly Wine

    1. 1. Cal Poly Wines Protégé Marketing Chrystine Lee Kirsten Sorensen Kathryn Stucker Kavita Chhotu
    2. 2. Objectives <ul><li>To launch the Cal Poly Wine Club </li></ul><ul><ul><li>Survey results </li></ul></ul><ul><ul><li>Co-marketing opportunities </li></ul></ul><ul><ul><li>Member benefits </li></ul></ul><ul><ul><ul><li>Events </li></ul></ul></ul><ul><ul><ul><li>Discounts </li></ul></ul></ul><ul><ul><li>Shipments </li></ul></ul>
    3. 3. Background <ul><li>By utilizing their rich viticulture program and agricultural school motto, “Learn By Doing,” Cal Poly is pleased to present their premiere wine release. With guidance from Baileyana Winery, students of Cal Poly have poured their heart and soul into creating the 2006 vintage. </li></ul>
    4. 4. Mission Statement <ul><li>To create a successful wine club for Cal Poly Wines that is geared to keeping alumni in touch and satisfied. The limited production of wine allows members to feel unique and special. </li></ul>
    5. 5. Cal Poly Wine Story <ul><li>Cal Poly houses an on-campus vineyard that is 12 planted acres in total. The vines are nurtured by professors and students alike. </li></ul><ul><li>The wine and viticulture program has recently become a major for the campus and these students will help launch and wines and increase wine quality. </li></ul>
    6. 6. The Rundown <ul><li>Product: Pinot Noir, Chardonnay, & Zinfandel Wines </li></ul><ul><li>Size: 750ml </li></ul><ul><li>Pricing: $18-35 </li></ul><ul><li>Launch Date: Homecoming 2007 </li></ul>
    7. 7. Current Trends <ul><li>Barbara Insel, Managing Director of Research at MKF Research in St. Helena stated, “Wine consumption is gaining among all generational segments, led by Baby Boomers, with more interest not only by women, but men and nearly all ethnic groups and regions.” </li></ul>Wine Institute: The Voice for California Wine
    8. 8. Baby Boomers <ul><li>Born 1946 – 1964 </li></ul><ul><li>78.2 million of U.S. population </li></ul><ul><li>Entering retirement </li></ul><ul><ul><li>While the boomers represent the largest segment of the market, they are growing older, must also be able to market to the emerging younger market </li></ul></ul>
    9. 9. Echo Boomers <ul><li>Aged 21-30 years </li></ul><ul><li>Approximately 28 million people of U.S. population </li></ul><ul><li>Wine sales grew in this demographic </li></ul><ul><li>Wine manufacturers have major upside potential with products and packaging that appeal to this market </li></ul>IRI Times & Trends
    10. 10. Current Trends <ul><li>California wines have begun to dominate the “premium” wines market (wines price $15 and above) </li></ul><ul><ul><li>Considered an “affordable luxury”, and California accounts for 85% of the total US market of premium wines. (David Colker, LA Times) </li></ul></ul>
    11. 11. Current Sales <ul><li>California wine sales in the U.S. reached another record high of 441 million gallons (185.4 million nine-liter cases) in 2005 with a retail value of $16.5 billion </li></ul><ul><ul><li>According to wine industry consultant Jon Fredrikson of Woodside and publisher of the Gomberg-Fredrikson Report. </li></ul></ul>
    12. 12. Current Sales <ul><li>Overall positive growth trend of wine in the US (especially California) </li></ul><ul><ul><li>Due to positive image from consumers, media, government in recent years, wine consumption on the upswing. </li></ul></ul>
    13. 13. Seasonality, Dynamics <ul><li>Benefits of wine market: wine is always in season, with peaks in sales around the holidays, and in May/June for graduations </li></ul><ul><li>Wine sales have more than doubled in the last 10 years </li></ul><ul><ul><li>$11.5 billion in 1994 compared with $23.2 billion in 2004 (Wine Institute, Department of Commerce: April 5, 2005) </li></ul></ul>
    14. 14. Seasonality
    15. 15. Demographics <ul><li>&quot;Wine consumption in United States on the rise in the last year: increased 5.2% to 2.98 gallons per adult&quot; (United Press International, Sept 8, 2005) </li></ul><ul><li>Women pass men as leading purchasers of wine: 55% of wine purchases (Gallup Poll, September 12, 2005) </li></ul>
    16. 16. Wine Club Survey <ul><li>This survey was conducted throughout the Central Coast and distributed to all the wineries in Paso Robles and San Luis Obispo. </li></ul><ul><li>The results are from forty-two various wineries. </li></ul><ul><li>The size of the responding wineries vary from less than 1000 cases annually to over 100,000 cases annually. </li></ul>
    17. 17. Survey Results-Production <ul><li>When asked how many cases of wine does the winery produce annually, the majority of respondents answered 1001-5000 cases. </li></ul>
    18. 18. Survey Results-Varietals <ul><li>When asked how many varietals does your winery produce, the majority of respondents answered that their winery produces 6-10 varietals. </li></ul>
    19. 19. Survey Results-Shipments <ul><li>When asked how many shipments go out per year through your wine club, the majority of respondents answered 1-3 shipments per year. </li></ul>
    20. 20. Survey Results-Shipment Additions <ul><li>When asked if the wine club shipments included anything but wine in them, the majority of respondents answered that they also included newsletters. </li></ul><ul><li>Included Ranking </li></ul><ul><li>Newsletter 1 </li></ul><ul><li>Recipes 2 </li></ul><ul><li>Food Pairing Guides 3 </li></ul><ul><li>Special Gift 4 </li></ul>
    21. 21. Survey Results-Promotional Sales <ul><li>When asked what percentage of your promotional budget is allocated for wine club membership sales, the majority of respondents answered 0-5 percent. </li></ul>
    22. 22. Survey Results-Number of Wine Clubs <ul><li>When asked how many different wine clubs do you offer, the majority of respondents have one wine club. </li></ul>
    23. 23. Survey Results-Advertising <ul><li>When asked how do you advertise your wine club, the majority of respondents answered by giving brochures to customers. </li></ul><ul><li>Advertising Methods Percentage Response </li></ul><ul><li>Brochures given to customers 90% </li></ul><ul><li>Booths at wine festivals 70% </li></ul><ul><li>Email 62.5% </li></ul><ul><li>Print Ads 22.5% </li></ul><ul><li>Other: Website, Tasting Room Staff 17.5% </li></ul><ul><li>Radio Ads 2.5% </li></ul>
    24. 24. Brochures Given To Customers <ul><li>Brochures are a great way to introduce potential club members to the wine. </li></ul><ul><li>An effective way to communicate wine club benefits </li></ul>
    25. 25. Booth At Wine Festivals <ul><li>This is ample opportunity for Cal Poly wines to market their wine and allow for tasting. </li></ul>
    26. 26. Email <ul><li>Cost efficient way of keeping club members in touch in regards to: </li></ul><ul><ul><li>Events </li></ul></ul><ul><ul><li>Releases </li></ul></ul><ul><ul><li>Recipes </li></ul></ul>
    27. 27. Website <ul><li>Another effective way to give background information on: </li></ul><ul><ul><li>History of the wine </li></ul></ul><ul><ul><li>Member benefits </li></ul></ul><ul><ul><li>Pricing </li></ul></ul>
    28. 28. Survey Results-Events <ul><li>When asked do you hold special events for wine club members, the majority of respondents said yes. </li></ul><ul><li>Hold Special Events Percentage Response </li></ul><ul><li>Yes 87.8% </li></ul><ul><li>No 12.2% </li></ul>Yes No
    29. 29. Survey Results-Events <ul><li>When asked what types of special events are held for club members, the majority of respondents answered that they hold BBQs, wine maker’s dinner, and food and wine pairing events. </li></ul>*Other: Special discount weekends and shipment pick up parties,
    30. 30. Survey Results-Shipment Price <ul><li>When asked how much the average wine club shipment is, the majority of respondents answered between $50-$99. </li></ul>
    31. 31. Survey Results-Communication <ul><li>When asked what is the best way to communicate with members, the majority of respondents answered through email. </li></ul>Email 77.5% Newsletter 12.5% Phone 10%
    32. 32. Survey Results-Wine Club Goals <ul><li>When asked what is the main goal for your wine club, respondents answered: </li></ul><ul><ul><li>“To reward supporters with limited-production wines, as well as better discounts than 'regular' customers.” </li></ul></ul><ul><ul><li>“To have a limited number of members. We want to be able to make our club special and intimate.” </li></ul></ul>
    33. 33. Survey Results-Wine Club Goals <ul><ul><li>“ To promote our wines through loyal customers. If a member likes being in Club Edna and enjoys our wines and experiences that we offer, they are more likely to buy our wine and get their friends to join. Bottom line... sell more wine!” </li></ul></ul>
    34. 34. Survey Results-Wine Club Improvements <ul><li>When asked what aspects of your wine club do you feel need improvement, respondents answered: </li></ul><ul><ul><li>“ More personal attention....we are so busy...I would like to have personal time to get to know more members on a one-and-one basis.” </li></ul></ul><ul><ul><li>“ To organize more and better events.” </li></ul></ul><ul><ul><li>“ More marketing attention. We are a little too soft sell.” </li></ul></ul>
    35. 35. Survey Results-Areas of Excellence <ul><li>When asked what aspects of your wine club do you excel in, respondents answered: </li></ul><ul><ul><li>“ Creating one on one relationship between members and winemaker/winery. They feel that they are part of the team and hold a place in the winery.” </li></ul></ul><ul><ul><li>“ SERVICE! - we try to accommodate the needs of our members. Shipping is included for wine club members.” </li></ul></ul><ul><ul><li>“ I feel we make friends with our club members and make them feel special.....part of the family feeling.” </li></ul></ul>
    36. 36. Survey Results-Areas of Excellence <ul><ul><li>“ Creating value for our customers and being very serious about customer service.” </li></ul></ul><ul><ul><li>“ Communication and exceeding expectations of wine quality.” </li></ul></ul><ul><ul><li>“ Customer service is key... we provide a top quality wine for an affordable price, top quality service (service with a smile) the customer is always right, knowledge of the product, and direct access of questions to the winemaker.” </li></ul></ul>
    37. 37. CP Wine Club Intention <ul><li>To promote the wines, and to allow our customers to experience new wines. </li></ul>
    38. 38. Suppliers <ul><li>We will be depending on Orcutt Cellars for packing and shipping needs </li></ul><ul><ul><li>As well as the Cal Poly University as vendors of the product </li></ul></ul>
    39. 39. Shipments <ul><ul><li>4 shipments per year </li></ul></ul><ul><ul><li>3 bottles in each shipment (one of each) </li></ul></ul><ul><ul><li>Themed shipments with Cal Poly Products </li></ul></ul><ul><ul><ul><li>Chocolate for February </li></ul></ul></ul><ul><ul><ul><li>Organic fruit for May </li></ul></ul></ul><ul><ul><ul><li>Cheese for August </li></ul></ul></ul><ul><ul><ul><li>Jam for November </li></ul></ul></ul>
    40. 40. Recommendation <ul><li>We recommend that you offer potential club members the opportunity to taste the wine. </li></ul><ul><li>10% of total wine reserved for promotional wine purposes (120 bottles) </li></ul><ul><li>Potential members can sample wine prior to signing up. </li></ul>
    41. 41. Events for Reserve Tasting <ul><li>Homecoming </li></ul><ul><li>Open House </li></ul><ul><li>Cal Poly Wine Festival </li></ul><ul><ul><li>April 28, 2007 </li></ul></ul><ul><li>Annual Roll Out the Barrels Weekend </li></ul><ul><ul><li>May 5, 2007 </li></ul></ul><ul><li>2007 Paso Robles Wine Festival </li></ul><ul><ul><li>May 19, 2007 </li></ul></ul>
    42. 42. Target Market <ul><li>Cal Poly Alumni </li></ul><ul><li>Current Staff </li></ul><ul><li>Parents of Students </li></ul>
    43. 43. Characteristics of Target Market <ul><li>Middle to Upper-Middle Class ($60,000+) </li></ul><ul><li>Extra income to spend on premium to upscale wines </li></ul><ul><li>Cal Poly College Graduates </li></ul><ul><li>Age: 30+ years old </li></ul><ul><li>Total spending: $10-20 per bottle </li></ul><ul><li>Staying apart of the Cal Poly family </li></ul>
    44. 44. <ul><li>Advertise until the first vintage is released </li></ul><ul><li>Communicate the perks of the club </li></ul><ul><li>Offer wine club sign up incentives allowing potential member to feel like it is worth the investment </li></ul>Market Strategies
    45. 45. Market Strategies: Advertising <ul><li>Cal Poly Events </li></ul><ul><li>Farmers Market-Special Events </li></ul><ul><li>Newsletters </li></ul><ul><li>Email </li></ul>
    46. 46. How to promote CP Wine Club Cal Poly Magazine SLO Tribune Homecoming Mustang Daily Farmers
    47. 47. Homecoming <ul><li>Homecoming booth: 1,000 </li></ul><ul><li>Pouring rights: 500 </li></ul><ul><li> Total: $1,500 </li></ul>Shaun Russell Director of Marketing & Corporate Relations Cal Poly Athletics
    48. 48. Cal Poly Magazine <ul><li>Reaches alumni, as well as parents of current students </li></ul>
    49. 49. Mustang Daily <ul><li>Would reach current students (who are of age!) as well as faculty who might be interested in joining a wine club and supporting Cal Poly </li></ul>
    50. 50. SLO Tribune <ul><li>Reaches locals who might be interested in joining a wine club, and by doing so, supporting the efforts of students and faculty who supplement San Luis Obispo’s economy </li></ul>
    51. 51. Farmer’s Market <ul><li>Promotion at Farmer’s Market would include wine tasting and distribution of wine club brochures, and would reach locals and current students </li></ul>
    52. 52. <ul><li>Communicating brand strategy is key to a great brand name. </li></ul>Market Strategies: Branding
    53. 53. Market Strategies: Branding <ul><li>Cal Poly is synonymous with excellence </li></ul><ul><li>Create brand recognition </li></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>“ Learn By Doing” </li></ul></ul><ul><ul><li>Nostalgic </li></ul></ul>
    54. 54. Market Strategies: Promotion <ul><li>Wine Club Members will receive </li></ul><ul><ul><li>Discounts on other Cal Poly agriculture products </li></ul></ul><ul><ul><li>Cal Poly Wine Club Special Events </li></ul></ul><ul><ul><li>Alumni networking </li></ul></ul>
    55. 55. Pricing <ul><li>Zinfandel - $18 </li></ul><ul><li>Chardonnay - $25 </li></ul><ul><li>Pinot Noir - $35 </li></ul>*Prices were previously set by Wine Club coordinator
    56. 56. Our pricing per shipment <ul><li>Total for varietals: $78.00 </li></ul><ul><li>Cal Poly Cheese </li></ul><ul><ul><li>Blue & Gold Special $ 22.00 </li></ul></ul><ul><li>Shipping charges within </li></ul><ul><li>California: $ 8.50 </li></ul><ul><ul><li>Outside of California depends </li></ul></ul><ul><ul><li>on state </li></ul></ul><ul><ul><li>Total: $ 108.50 </li></ul></ul>
    57. 57. Pre-Launch Budget <ul><li>Homecoming booth 1,500 </li></ul><ul><li>Brochures: 5000 350 </li></ul><ul><li>4 x 6 handouts: 2000 150 </li></ul><ul><li>Magazine & Newspaper </li></ul><ul><li>Total: $ 2,020+ </li></ul>
    58. 58. Potential Club Names <ul><li>CP Wine Club </li></ul><ul><li>Mustang Corral </li></ul><ul><li>Mustang Wine Club </li></ul><ul><li>Poly Wines </li></ul><ul><li>Stang Gang </li></ul>
    59. 59. What Now? <ul><li>Create an appealing name </li></ul><ul><li>Promote! Promote! Promote! </li></ul>