Ch 9 - Product/Brand

Question 1

Branding

What are 2 core concepts for this chapter?

summary

Answer 1

• Marketing starts w/ understanding the product/brand - whether new prod to fill a gap or refresh strat of existing prod
• Prod characteristics, life cycle stage and target market inform marketing strategy

Question 2

Branding

What are 3 key elements of “product understanding?”

Answer 2

• New vs existing
  
  • Char/features - QSP
  • Alignment w/ target market needs

Question 3

Branding

What are the 4 phases of product lifecycle?
What is happening to prod sales in each phase?

Answer 3

• Intro - sales start slowly as prod intro to market
  
  • Growth - sales accelerate as awareness and demand builds
  • Maturity - sales growth slows w/ target market sat and inc compet
  • Decline - sales decline

Question 4

Branding

What is focus of each lifecycle stage?
What is focus of marketing strategy for each stage?

Answer 4

• Intro phase:
  
  • Focus: get prod to market, build awareness and reputation
  • Limited distribution via selected sales channels
• Growth phase:
  
  • Focus: Expand prod reach to broader market
  • Strat: Inc distrib and awareness to drive strong growth
• Maturity:
  
  • Focus: differentiate prod from compet
  • Strat: Highlight unique attributes to position vs compet
• Decline:
  
  • Focus: extend prod lifecycle
  • Strat: Innovate - new packaging, formulation, brand extension, ↓P, ID new markets

Question 5

Branding

What is a brand?
What is the goal?

Answer 5

• Combination of tangible features/benefits combined with perceptions/expectations
  
  • Creating positive perception in mind of target market of your products ability (features/benefits/exp/perceptions) to meet their needs relative to competition - avoid commoditization

Question 6

Branding

What are 6 elements of building a brand?
What are considerations for building a wine brand identity?

Answer 6

• Substance - dependable quality builds trust on tangible and intangible benefits most important to its target market (consistent NV champ)
• Cons trust/engagement- feeling of personal connection for consumers via consistency and favorable perception -> repeat purchase and brand preference
• Brand story/Authenticity - storytelling to highlight brand’s unique attributes to build cons connection
• Premium/prestige positioning - brand differentiation enables higher P/reduced reliance on P compet (Penfolds Grange)
• Longevity - heritage of long-loved brand - champ, Gallo, Mondavi
• Strong brand identity - unique and appropriate name - easy to remember, relevant for target market (approachable vs aspiration), ok in other lang, etc
  ○ Can have diff brands for diff markets - China (Penfolds, Lafite)
  ○ Name related to geo features create impt link to viti - Cloudy Bay, Felton Road
  ○ Name related to person - creates sense of history - Champ
  ○ Trademark reg is critical

Question 7

Branding

How are brands measured?

Answer 7

Difficult since brands are intangible

• assess brand equity = awareness, consideration, preference, brand image

Question 8

Branding

What is brand position and how does it relate to wine (4 categories)?

Answer 8

• Where a brand sits in market relative to competition
  ○ Value
  ○ Standard
  ○ Prem
  ○ Super-prem

Question 9

Branding

Why is storytelling important for wine?
What does it consist of?

Answer 9

• Creates authentic emotional connection created by communicating the heritage/purpose of a product
• components
  ○ Producers history, personality, innovation
  ○ Where grapes are grown - single vineyard, soil, unique attributes of region/site/topog
  ○ Story of wm - philosophy (OV/BV), unique approaches
  ○ Story behind name/label design

Question 10

Branding

What are private labels and who creates and why?

Answer 10

• Many retail outlets create own brands - inc cust loyalty
  ○ Supermarkets, deep discounters, large rest
  ○ Well known producers can make it - but not on label

Question 11

Branding

What is a wine brand ladder?
When work best?
Examples?

Answer 11

• A brand that has a hierarchy of offerings - clearly defined/branded tiers of price/value/quality

Tiers:
* Accessible - least expensive/greatest distribution, high purch freq
○ Champ - Pol Roger NV; Burg - Bourgogne Rouge
* Stretch - higher P but affordable, but more for special occasions
○ Champ - Pol Roger vintage; Burg - Gevrey Chambertin
* Aspirational - most prestigious expression - attracts collectors/connoisseurs - creates brand halo over whole range, though most people rarely buy
○ Champ - Pol Roger Cuvee Winston Churchill; Burg - Le Chambertin GC

• Don’t work as well in low-involvement segments as upper tier isnt relevant and lower tier that people buy can define the whole brand

Question 12

Branding

What is a soft brand?
What are examples?

Answer 12

• Product attribute not related to commercial brand that create differentiation
  ○ Country, region, GI, var, style
  
  • Important part of wine marketing - GIs/regions promote themselves to create differentiation for their producers to -> SB grown everywhere, but Sancerre AOC seen as different/better
    ○ Rioja, Napa AVAs
    ○ Malbec from Mendoza, Prosecco from Veneto

Question 13

Branding

What is a luxury brand?
What are examples of attributes marketers focus on to create price premium?

Answer 13

• No agreed definition
  
  • Tend to be super-prem
  • All aspects of marketing mix aligned to promote premium positioning
  • Price premium
    ○ Scarcity - promote idea of scarcity (even if not) = charge a premium
    ○ Quality - fruit qual, vineyard uniqueness, hand harvest, prem winemaking
    ○ Heritage

Question 14

Branding

What were top wine brands in 2020?

Answer 14

• Yellowtail (Australia)
  
  • Casillero del Diablo (Chile)
  • Gallo (USA)
  • Jacobs Creek (Australia)
  • Barefoot (USA)