Strategic role of social media in marketing wine.

1. How Social Media has Changed
the Game for Wine and Winery
Promotion in the US.

2. 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

3. Agenda
• Who is this guy and why should I listen to
him?
• U.S. “Bev. Alc.” history lesson

4. U.S. Market: Laws Made in 1933

5. PRODUCER
(Wineries, Brewers, Distilleries, Importers)
Wholesaler (Distributor)
Retailer
Consumer
U.S. Three Tier System

6. U.S. “Control” States for Wine
Michigan
Virginia
No. Carolina
Alabama
Arkansas
Iowa
Colorado
Wyoming
Montana
New
Hampshire
and Vermont Maine
Ohio
Pennsylvania
W. Va.
Idaho
Oregon

7. 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

8. 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

9. Snapshots of the American
Market

10. Identifying the Target Consumer

11. Identifying the Target Consumer

12. Identifying the Target Consumer

13. Why They Buy

14. Why They Buy

15. Direct to Consumer Wine Sales, 2010 vs.
2011 Increases
Source: Wines & Vines
9.3%
12.5%
Volume Value

16. Information They Seek

17. The King is Dead, Who…or What’s Next?

18. Type of Wine Marketing That
Works with Millennials
Source: Sonoma State Univ. Study, 2009

19. 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

20. Social Media Marketing
What’s all the talk about “conversations”?

21. 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

22. It’s All About Engagement, Not Noise
Response from
brand.
Contributions, but
no conversation
Then another reader
contributes to the
conversation

23. 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.

24. The Game Has Changed

25. 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

26. Old Model: Same message to everyone

27. Web 1.0: your audience can talk back

28. Now they’re connected to each other

29. And, the size of the network is the
SQUARE of the # of participants

30. …so when it gets big it gets HUGE

31. SMM Myths and Realities
It’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 free
Many 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-house
You 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

32. Social Media Explained
I need to pee
I peed
This is where I pee
Look at this pee
I’m good at peeing
Let’s all pee together

33. Social Media Strategy Simplified
On your
Website
On the Web
Connect Consumers With Your Content
Blogs
Sites/Forums
Social Networks
E-Commerce

34. Fundamental Principles
Listening
Respect and Transparency
Engagement
Commitment

35. Listen First, Talk Second

36. “People can smell BS even across an oil-
slicked gulf”
Gary Vaynerchuk
Respect Your Audience

37. It’s Not the # of Contacts, it’s
the Depth of the Connections

38. Connections vs. Contacts
Engagement 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

39. (The Chicken is Involved, but the Pig is
Committed)
Commitment, not Involvement

40. 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
Passionate
Readers
Participate
(est. 1 Million)
Involved
Readers Review
(est. 10 Million)
How SMM Impact Expands

41. Neil Dorosin, www.brooklynguyloveswine.com
How Blog Outreach Impacts
Traditional Media

42. BEFORE
Populating Curated Content

43. AFTER
Populating Curated Content

44. Populating Content
44

45. The Most Influential Wine Writer
in America
45

47. Long Tail: Theory

48. 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

49. Let Them Know You Care

50. Hope is Not a Strategy

51. Metrics Matter
“I know half my
advertising doesn’t
work…I just don’t
know which half”
Pure E-
marketing/
Ecommerce
ROI

52. 1 + 1 =
The Equation Has Changed

53. 1 + 1 = 11
The Equation Has Changed

54. Print vs. Online?

55. Print vs. Online?
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Snooth reaches 5X more
than Wine Spectator

56. Print vs. Online?
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Vinography reaches 2X more
than The Wine Advocate

57. 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 57

58. Steve Raye
Contact:
Steve Raye, President
Bevology Inc.
401 Park Ave. So, 9th Floor
New York, NY 10016
212-613-2713
steve@bevologyinc.com