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Strategic role of social media in marketing wine.
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How Social Media has Changed the Game for Wine and Winery
Promotion in the US.
Agenda
• Who is this guy and why should I listen to him?
• U.S. Bev. Alc history lesson• U.S. Wine market snapshot and why
Millennials matter.• Social Media Marketing: Theory and
Practice
BAT Social Media Team
Theory Practice
Marketing consulting company with specialization in beverage alcohol marketing
–Three “Sweet Spots”:• US Brand Development and Launch• Social Media Marketing• Trade Communications
What is Brand Action Team?
The Companies We Keep
Agenda
• Who is this guy and why should I listen to him?
• U.S. “Bev. Alc.” history lesson
U.S. Market: Laws Made in 1933
PRODUCER(Wineries, Brewers, Distilleries, Importers)
Wholesaler (Distributor)
Retailer
Consumer
U.S. Three Tier System
U.S. “Control” States for Wine
Michigan
Virginia
No. Carolina
Alabama
Arkansas
Iowa
Colorado
Wyoming
Montana New Hampshire
and Vermont Maine
OhioPennsylvania
W. Va.
IdahoOregon
50 States, 50 Different Markets
Retail Outlet Differences• Supermarket/grocery/drug,
Liquor Stores selling beer, wine , and/or spirits, Convenience stores
Off Premise Sale• Sunday sales (8 states still
prohibit)• In store tastings (10 states
prohibit)
Promotion & Merchandising• Discounts, consumer refunds,
sweepstakes, gift sets / combo packs highly regulated and restricted
Agenda
• Who is this guy and why should I listen to him?
• U.S. “Bev. Alc.” history lesson• U.S. Wine market snapshot and why
Millennials matter
Snapshots of the American Market
Identifying the Target Consumer
Identifying the Target Consumer
Identifying the Target Consumer
Why They Buy
Why They Buy
Direct to Consumer Wine Sales, 2010 vs. 2011 Increases
Source: Wines & Vines
Volume Value
9.3%
12.5%
Information They Seek
The King is Dead, Who…or What’s Next?
Type of Wine Marketing That Works with Millennials
Source: Sonoma State Univ. Study, 2009
Agenda
• Who is this guy and why should I listen to him?
• U.S. Bev. Alc history lesson• U.S. Wine market snapshot and why
Millennials matter.• Social Media Marketing: Theory and
Practice
Social Media MarketingWhat’s all the talk about “conversations”?
What is Social Media?
A fancy way to describe the zillions of conversations people are having online
24/7/365
It evolves SHOUTING into
conversations and communities
Turns a monologue into a dialog
It’s All About Engagement, Not Noise
Response from brand.
Contributions, but no conversation
Then another reader contributes to the conversation
The Web Won’t Do The Old Thing Better
The web is the worst medium ever devised
for interrupting people who don’t want to be interrupted
But it is the best medium for engaging
interested consumers in conversation.
The Game Has Changed
Traditional and SMM are Different
Traditional• One way
communication• With a disinterested
party• Whose attention you
have to get
• Creative = intrusion
SMM • Two-way
communication• With an interested
party• Who initiates the
conversation
• Creative = relevance
Old Model: Same message to everyone
Web 1.0: your audience can talk back
Now they’re connected to each other
And, the size of the network is the SQUARE of the # of participants
…so when it gets big it gets HUGE
SMM Myths and RealitiesIt’s optional, not necessary
Your customers and prospects expect you to engage them online…if you don’t they will consider you irrelevant.
It’s cheap if not freeMany of the tools are free to use, however knowing how to use them the right way
and strategically costs money.Anyone can do it
Doing it the wrong way can hurt, not help. Hire experienced, professional help.You can make a big splash in a short time
Maybe, if you’re really lucky. But generally it takes time to build credibility, and you need to commit for the long term.
You can do it all in-houseYou need strategy, contacts, tools and experience, plus the dedicated time of people
focused on it.If you do something great, people will find it
You have to actively build traffic, a voice, visibility and a maintain a presence. You can’t measure it
Everything is measurable online, and measurement should go beyond how well you’re doing and provide behavior-based insights on consumer needs and wants.
Adapted from: B.L. Ochman, Businessweek 2/19/09
Social Media ExplainedI need to pee
I peed
This is where I pee
Look at this pee
I’m good at peeing
Let’s all pee together
Social Media Strategy Simplified
On your Website
On the Web
Connect Consumers With Your Content
BlogsSites/Forums
Social Networks
E-Commerce
Fundamental Principles
Listening
Respect and Transparency
Engagement
Commitment
Listen First, Talk Second
“People can smell BS even across an oil-slicked gulf”
Gary Vaynerchuk
Respect Your Audience
It’s Not the # of Contacts, it’s the Depth of the Connections
Connections vs. ContactsEngagement Noise
• Facebook comments• Convos among commenters•Response time to comments
vs.Facebook fan
count
It’s Not the # of Contacts, it’s the Depth of the Connections
(The Chicken is Involved, but the Pig is Committed)
Commitment, not Involvement
1) Blogger and Site moderators post.
2) Passionate consumer reads the blog regularly and participates via comments.
3) Involved consumers read the posts
Interested Consumers
are influenced (Tens of Millions)
4) Passionates and Involved are the peer “experts” whom Interested consumers turn to for recommendations and advice.
Bloggers&
Sites/Forums
PassionateReaders
Participate(est. 1 Million)
Involved Readers Review(est. 10 Million)
How SMM Impact Expands
Neil Dorosin, www.brooklynguyloveswine.com
How Blog Outreach Impacts Traditional Media
BEFORE
Populating Curated Content
AFTER
Populating Curated Content
Populating Content
47
The Most Influential Wine Writer in America
48
Long Tail: Theory
Steve’s 5 SMM Rules of Engagement
1. Do your homework
2. Understand and follow the rules (written and unwritten)…be transparent
3. Identify what’s important to each outlet (ratings, reviews, food/wine pairings)
4. Join the conversation by contributing value not commercials.
5. Make it a lasting relationship
Let Them Know You Care
Hope is Not a Strategy
Metrics Matter
“I know half my advertising doesn’t work…I just don’t know which half”
Pure E-marketing/
Ecommerce
ROI
1 + 1 =
The Equation Has Changed
1 + 1 = 11
The Equation Has Changed
Print vs. Online?
Print vs. Online?
Wine Spectator
Wine Enthusiast
Wine Advocate
Snooth
WineSpectator.c
om
Vinography0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000Snooth reaches 5X more than Wine Spectator
Print vs. Online?
Wine Spectator
Wine Enthusiast
Wine Advocate
Snooth
WineSpectator.c
om
Vinography0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000Vinography reaches 2X more than The Wine Advocate
References• The Cluetrain Manifesto, Locke,
Wineberger et al.• The Long Tail, Free, Anderson• Join the Conversation, Jaffe• Now is Gone, Battelle• The Tipping Point, Gladwell• The Big Switch, Carr• Here Comes Everybody, Shirkey• New Rules of Marketing andPR, Scott
60
Steve Raye
Contact:
Steve Raye, Managing PartnerBrand Action Team
1 Darling Dr.Avon, CT 06001 USA