9. Identifying the Product/Brand for Marketing

Question 1

What are the 2 main types of product to be marketed?

Answer 1

BRAND NEW: products launched to fill a perceived gap in the market, ID’d through market research/analysis.

EXISTING: a product which may/may not have been updated.

Question 2

What are the 4 stages of a typical product ‘Life Cycle’?

Answer 2

1. Introduction

2. Growth

3. Maturity / Stabalization

4. Decline

Question 3

What kind of marketing strategies should be implemented during a product’s Introduction and Growth stages?

Answer 3

Introduction, focus on :

• Getting product to market, gaining recognition/reputation
• Distributing to a few carefully selected channels.

Growth, focus on :

• Increasing the distribution to a wider scope, aimed at a broader target market to encourage growth.

Question 4

What kind of marketing strategies should be implemented during a product’s MATURITY/STABILIZATION and DECLINE stages?

Answer 4

Maturity/Stabilization :

• Highlight differences between product and competitors which may have newly entered market.

Decline :

• Extend life cycle, improve product, update packaging, reduce price, ID new markets.

Question 5

Using Cloudy Bay as an example, explain the aim of Branding and its effectiveness :

Answer 5

Branding

• The aim is to move the wine away from simply being a commodity, highlighting its quality/style to convince customers that its worth paying above the minimum price for

Cloudy Bay :

• 2016: updated its packaging to a more modern look, but still instantly recognizable.
• If placed next to a mid-priced, unknown producer of Marlborough, customer may choose Cloudy Bay, even at higher $, because of what it represents vs generic products.

Question 6

What is the CIM definition of the term BRAND?

Answer 6

The set of physical attributes of a product or service, together with the beliefs and expectation surrounding it - a unique combo which the name/logo of the product/service should evoke in the mind of the audience.

Question 7

7 ways a brand can create a positive image in the consumer’s mind:

Answer 7

1. Substance
2. Consumer Trust
3. Consumer Engagement
4. Brand Story
5. Price Premium
6. Longevity
7. Strong Brand Name

Question 8

Creating a strong brand image; SUBSTANCE.

Answer 8

Substance :

• Consistency of quality and style
• e.g. NV cuvées of Champagne houses, not marked by vintage variation.

Question 9

Creating a strong image; CONSUMER TRUST.

Answer 9

• As a result of this consistency, consumers come to trust a brand always to give them what they want.
• Many low-involvement consumers will therefore regularly buy their favourite brand of wine in preference to a cheaper, unbranded alternative which they do not know.

Question 10

Creating a strong brand image; CONSUMER ENGAGEMENT

Answer 10

Consumer Engagement :

• The consumer should have a relationship with the brand and will ask for it by name.
• They will feel that the brand’s marketing strategy is aimed directly at them
• Risk of alienating dedicated consumers if any changes are implemented.

Question 11

Creating a strong brand image; BRAND STORY.

Answer 11

Brand story :

• A successful brand story can create an emotional attachment between the consumer and the brand.

Question 12

Creating a strong brand image; PRICE PREMIUM :

Answer 12

PRICE PREMIUM

• Many successful brands command higher $
• Many consumers see this as a guarantee of quality.

Question 13

Creating a strong brand image; LONGEVITY.

Answer 13

LONGEVITY

• A number of wine brands overall are newcomers, some have been in existence for a long time, e.g. many Champagne houses, Hardys (1850s), Gallo (1930s), Mondavi (1960s).
• Longevity is seen as proof of knowledge and quality

Question 14

Creating a strong brand image; STRONG BRAND NAME.

Answer 14

• strong brand name is very important; must be easy to remember and easy to pronounce across many languages.

Question 15

e.g. of Brand Name that demonstrates importance of translation btw/languages (3):

Answer 15

• a brand name might sound prefectly innocent in one language, but may have negative/unwanted connotations in another.
• e.g. ‘Mist’ from St. Tropez (Made In Saint-Tropez).
• ‘Mist’ in German translates to ‘crap’.

Question 16

Examples of brands that have created different names for different markets (3):

Answer 16

e.g. very common for branding in China

Penfolds = Ben Fu
Lafite = La Fei
Casillero del Diablo = Hong Mo Gui

Question 17

eg.s of wine brands that contain references to geographical features (5)?

Why is this a useful strategy?

Answer 17

Cloudy Bay, Blossom Hill, Banrock Station, Felton Road, Terrazas de Los Andes.

Such names give the wine a sense of place, link to agriculture.

Question 18

e.g.s of wine brands that are names of their founder (2)?

Why is this a useful strategy?

Answer 18

Krug, Taylor’s Port.

Links the product to its heritage and endows it with a sense of longevity.

Question 19

Why is trademark registeration important for a brand name?

And e.g. of where this has proven difficult (2)?

Answer 19

• Trademarking the brand name is essentially protecting one’s assets.
  e. g. in China, trademarks are given to the first person/company to file an app vs based on usage.
• this has led to expensive legal battles, e.g. Treasury Wine Estate’s battle to cancel prior registration of the trademark ‘Ben Fu’ (Penfolds) by a person not using it.

Question 20

What demographic is attracted to products w/strong stories?

Answer 20

Many consumers, but especially Millenials (those btw/drinking age and mid-30’s).

Question 21

How can the story of the wine be told ?

Answer 21

What is the producer’s history?

• Producing wine for generations? If in newer regions, ancestors from older ones and brought vines w/them (e.g. Penfolds)?
• Interesting previous career? (e.g. Nicolas Joly)

Where are the grapes grown?

• Single vineyard, with unusual/evocative name (e.g. Sassicaia)?
• Topography; steep, rocky, misty?
• How are grapes grown? e.g. biodynamics?

How is the wine made?

• Philosophical; organic, biodynamic, ‘natural’.
• Any distinct/ancient processes, or unusual/old equipment?

How is the wine marketed?

• Packaging (label/bottle design)
• Story behind the name

Question 22

What is meant by ‘Brand Equity’?

How is it calculated?

Answer 22

Brand Equity

• The value of the brand to its owner which includes components such as brand awareness and brand image.
• Some companies employ consultants to calculate financial value of brand equity as asset on balance sheet.

Question 23

What is meant by the term ‘Brand Position’?

What 4 categories are commonly used?

Answer 23

Where a brand ‘sits’ in the market, in relation to its retail price.

• Inexpensive (Value)
• Mid-priced (Standard)
• Premium
• Super-Premium

Question 24

Explain what are Private Label wines :

2 e.g.s?

What are the benefits ?

Answer 24

Private Label wines :

• A wine label exclusively made for and sold by a retailer (even though wine inside may be identical to another product) under their own brand name.
• Typically found in USA/UK, in supermarkets, deep discounters and larger chains of bars/restaurants.
• Typically will not display winemaker’s name prominently, or at all
• e.g Sainsbury’s ‘Taste the Difference’ UK, Costco’s ‘Kirkland Signature’ USA.

Benefits :

• Increase customer loyalty to the store
• Exclusive offer : can’t be compared as the wine can’t be found elsewhere
• Easier to target your target segment by controling the marketing

Question 25

Define Ladder Branding :

Benefit to the brand?

Answer 25

Ladder Branding :

• A brand that sells wine at different ‘rungs’, usually reflecting lower-to-higher price points and quality levels.
• Ladder brands tend to have three rungs :
  
  • Accessible : the least expensive with the greatest distribution and the one that consumers will buy most often
  • Stretch : affordable but only for special occasions
  • Aspiration : the most prestigious expression of the brand. Most of the brand’s consumers will never buy it as it costs far more than they are willing or able to spend on wine
• The whole product range benefits from the most prestigious expression of the brand, even if it achieves the lowest actual sales. (ex Guigal)

Question 26

What are the 3 rungs of a LADDER BRAND?

e. g. of an actual ‘Hard Brand’
e. g. of a ‘Soft Brand’

Answer 26

1. Accessible; least expensive, greatest distr., best selling by vol.
2. Stretch; affordable but special occasions only.
3. Aspiration; most prestigious, most consumers will never purchase due to being above comfortable price limit, but super-premium status casts glow on entire brand.

Champagne Pol Roger:

• *Accessible:** Pol Roger NV
• *Stretch:** Pol Roger Vintage
• Aspirational*: Pol Roger Cuvée Winston Churchill

Burgundy:

• *Accessible:** Bourgogne Rouge
• *Stretch:** Gevrey-Chambertin
• *Aspirational:** Le Chambertin Grand Cru

Question 27

Why do LADDER BRANDS tend to work less effectively with low-involvement consumers (2)?

Answer 27

Low-involvement consumers :

• Will not be aware of the brand’s ‘aspirational’ product(s), meaning that the aspirational product effect benefit is null.
• Even if they are, the entire brand can be associated with the value product, and the aspirational/stretch products viewed as overpriced = unwillingness to “trade up”.

Question 28

Difference btw/a ‘Hard’ and ‘Soft’ brand?

4 eg’s of soft brands?

Answer 28

Hard Brand

• Trademark registrated brand : e.g. Veuve-Clicquot, Cloudy Bay.

Soft Brand

• Any cue used by a consumer to indicate their preference of one product over another.
• Can’t be registered
• Share many the characteristics identified as features of hard brands
• Examples :
  
  • Country/region (Brand Australia, Rioja)
  • GI (Pouilly-Fumé)
  • Grape variety (Merlot)
  • Wine style (oaky Chardonnay)

Question 29

Why are ‘Soft Brands’ important for Wine Marketing ?

Answer 29

Benefits of Soft Brands :

• Free marketing : Some producers are too small to afford much marketing, so the promotion of their region/GI/AVA can be very helpful.
• Creates regional identity : Many wine-producing countries/regions promote themselves this way to create regional identity.

e.g. only wine from a small, specially designated area in the Loire Valley can be labelled ‘Pouilly-Fumé’, vs SB from anywhere else.

Question 30

Define Luxury Brand:

Answer 30

Luxury Brand:

• A brand that sells at super-premium prices which only a few customers can afford
• e.g. prestige Champagne, Bordeaux PCC, Burgundy GC, cult Napa wines.

Question 31

What are the characteristics of Luxury Brands?

Answer 31

Characteristics of Luxury Brands :

• Will highlight :
  
  • The real/perceived scarcity (even if this is not truly the case, e.g. Champagne).
  • The quality of the fruit or of the vineyard
  • The winemaking process sparing no expenses
• Promotion/sponsorship of luxury events, e.g. Wimbledon / Lanson.
• Placement in upmarket retailers / fine dining restaurants.

Question 32

10 most powerful wine brands according to Wine Intelligence:

Answer 32

1. Yellow tail (AUS)
2. Casillero del Diablo (CI)
3. Gallo Family Vineyards (USA)
4. Jacob’s Creek (AUS)
5. Barefoot (USA)
6. Gato Negro (CI)
7. Carlo Rossi (USA)
8. Frontera (CI)
9. JP Chenet (FR)
10. Mouton Cadet (FR)

Question 33

What are the 3 factors that determine a brand’s ‘strength’, according to Wine Intelligence?

A few exceptions?

Answer 33

Brand Awareness
Reported Brand Purchase
Brand Connection (affinity) across global market

On individual-market levels, some domestic brands tend to be stronger, e.g. Changyu (China) and Rotkäppchen (Germany).