1. USD Consulting Group:
US Market Expansion Analysis

Brandon Britton|Ann Sophie Loehde|Erin Majorsky|Paula
Martinez-Barros-Rodriguez|Tony Maude

2. Agenda
A Where does Bodega Lagarde want to be in the US?
B Where is Bodega Lagarde currently positioned in the US?
C How do we get there?
1
Distribution Expansion
2
E-Commerce Exposure
3
Heighten Brand Awareness
D Implementation Guidelines

3. Where does Bodega Lagarde want to be
positioned in the US?

4. Where does Bodega Lagarde want to be in 5-10 years?
“Bodega Lagarde produces some of the finest
Malbec in the region. Exquisite quality and
value! 95+ point wines”
– Robert Parker
+130%
+50%

5. Where does Bodega Lagarde want to be in 5-10 years?
Sales

Increase our sales to US from
21,000 to 30,000 9lts Cases

Revert our product mix to
enhance sales of Lagarde
Reserva, and upper brands
according one of the main goals
of our Winery

Increase Mix of Rest of Upper
Brands (Lagarde, Guarda, PV &
Henry)
Brand

Be Argentina s top 5 wineries,
focusing on quality and terroir
wines renowned for our family
history and environmentally
friendly production

Press recognized for being a
family owned and managed
Winery with 100% owned
vineyards

Use upper brands for
positioning our quality and
general winemaking history

6. Agenda
A Where does Bodega Lagarde want to be in the US?
B Where is Bodega Lagarde currently positioned in the US?
C How do we get there?
1
Distribution Expansion
2
E-Commerce Exposure
3
Heighten Brand Awareness
D Implementation Guidelines

7. What is current Bodega Lagarde presence in US?

Bodega Lagarde Imports 21,473 cases (193,253 liters) of wine into the US
each year across multiple tiered line

Current revenue total is $1,052,525 FOB (~$49/case)

8. How is Lagarde positioned with other Argentine wine in the
US?

9. Agenda
A Where does Bodega Lagarde want to be in the US?
B Where is Bodega Lagarde currently positioned in the US?
C How do we get there?
1
Distribution Expansion
2
E-Commerce Exposure
3
Heighten Brand Awareness
D Implementation Guidelines

10. Lagarde US Growth Strategy
Distribution
Increased
Presence in
US
Brand
Awareness
E-Commerce

11. Agenda
A Where does Bodega Lagarde want to be in the US?
B Where is Bodega Lagarde currently positioned in the US?
C How do we get there?
1
Distribution Expansion
2
E-Commerce Exposure
3
Heighten Brand Awareness
D Implementation Guidelines

12. Why should Lagarde focus distribution improvements?
6,000 US Wineries (7,000 brands)
550 Major
Distributors
76 Million
Consumer
s
$30
Billion
Retail
Sales

“In 2012, [Argentine] wine exports
increased in volume by 17% to 365
million liters and in value by 10.15%,
reaching US$920.4 million, according to
the National Institute of Vitiviniculture
(INV). To continue exporting, many wineries
are focusing on medium- and high-price
brands, where they have more leeway to
adjust prices. Others simply are ceasing to
export.”
– InfoSur Hoy; Argentine Wine Industry
Strives to Expand Internationally

13. Distribution Expansion: Wine Industry Value Chain
PULL

14. Where should Lagarde focus distribution improvements?
US Wine Consumption Per Capita

West coast (CA, OR, WA, NV)
and Northeast (MA, NY, NJ,
NH) have high
concentration of per capita
wine consumption and
should be a focus of
distribution channels

15. Where should Lagarde focus distribution improvements?
US Consumer Friendliness

American Wine Consumers
Coalition (AWCC) creates an
annual „report card‟ for each state

Grading (A-F) based on consumer
access to wine, local state
governance and laws, and
restaurant availability
http://www.wineconsumers.org/wpcontent/uploads/2013/08/ConsumingConcerns4small.pdf

16. How can Lagarde secure a successful importer and
distributor?

We surveyed the market.


Academic & Sales Approach.
Personalize the initial introduction
email via „mail merge‟.



No more mass emails via BCC.
Need to SELL prospects on the
introduction.
Follow-up on every email with a
phone call.

Create a Process for the followup phone calls.

17. How do we qualify the importers/distributors?
Step 1:
Personalize mass emails via Mail Merge

Most people do not read obvious mass emails (ie, BCC)

Personalize mass emails using a mail merge between Microsoft
Excel and Microsoft Word

Our consulting team has created a mail merge using Lagarde‟s
current list of importers

18. How do we qualify the importers/distributors?
Step II
Notes to Lagarde
• The introduction email should SELL the importer/distributor on Lagarde‟s product
• The social media hyperlinks should be below the signature, not in the body of the
email
• The Bodega Lagarde brochure should be attached to this email

19. How do we qualify the importers/distributors?
Step III

CALL Importers!

Every prospect that received an email, should receive a follow-up phone
call.

Most decision makers will not reply to generic emails, the personal touch
of a phone call is a MUST.

Recommend creating a new process for follow-up phone calls:


Sole task to follow up and qualify prospects.


Hire an intern, employee, or commission based consultant.
Once prospects are qualified, Sebastian can take over.
Keep track of prospects in a database.

20. Distribution in Summary

Immediate focus on the West Coast (California, Oregon, Washington) and
North-Eastern States (New York, New Jersey, Connecticut)

The Three Step Method for Qualifying Importers.

Provide Incentives for Importers to move volume (Bonuses, Trips, etc).
Additional Resources:

Search reviews of importers from wine producers worldwide
(http://www.nopaywinedistributors.com/).

Implement a process for following up on qualified importers/distributors.

21. Agenda
A Where does Bodega Lagarde want to be in the US?
B Where is Bodega Lagarde currently positioned in the US?
C How do we get there?
1
Distribution Expansion
2
E-Commerce Exposure
3
Heighten Brand Awareness
D Implementation Guidelines

22. What is E-Commerce?
Definition: Commercial transactions conducted electronically on
the Internet.
Importer
• Application to the
E-Commerce
Website
• *typically completed
by the Winery
Lagarde
•Importers &
Distributors deal
directly with the site
•*Similar process as
selling to store fronts &
restaurants
Consumer
•Same licensing
regulations apply
Website
•Importer must be
licensed for state of
the end consumer

23. Why E-Commerce?
Advantages
Consumer
Producer
Disadvantages
•
•
•
•
•
Convenience
Discounts
Ease of search
Wide range
Future / Credit Card
payments
•
•
•
•
•
Increase customer reach
Increase brand awareness
Insulation against
economic downturns in
specific areas
Flexible hours of operation
Lower cost than a brick
and mortar storefront
•
•
•
•
•
•
•
•
Delivery times
Lack of personalized
customer service
Less pleasant purchase
Insecurity
Low knowledge
Competition is a few
“clicks” away
Customers often have less
trust for online
transactions
Social aspects and
customer service more
difficult

24. What is the typical online buyers profile?

Baby Boomers and Millennials / Generation Y
key online market

Purchase more imported wines

Purchase higher price wines as opposed to
offline purchases

Online sale of alcohol up 19% (beers, wines,
and spirits).

25. •
•
•
•
Ages 46 - 66
Married
2 children
Well established in
their careers
Own a home in La
Jolla
Have a Facebook
and Linked-In
Profiles
Use online
resources for news,
information, and
shopping
Enjoy high-end
restaurants for
monthly “date night,”
also appreciate a
evening at home
with a glass of
Lagarde
• Ages 36 - 46
• Single/Married
• Starting a new
career
• Own condos in San
Diego
• Have profiles on
Facebook, LinkedIn, Twitter,
Instagram, and
Match.com
• Enjoy going out with
friends and
attending social
events
• Use online
resources for
research, news and
information,
socializing, and
shopping
Jen & John
“Millennials” / Gen Y
“Baby Boomers”
•
•
•
•
Laurie & Michael
Generation X
Susan &
Tom
• Ages 21 - 35
• Engaged to be
married
• Early in their
careers
• Rent a condo
downtown San
Diego
• Have profiles for
Facebook, Twitter,
Instagram &
Linked-In
• Enjoy nice classy
higher-end social
events
• Great at multitasking
• Use online
resources for
research, work,
finances,

26. US consumers spend 23% of their disposable income
online, slightly higher than the 22% average across 15
countries

27. Who spends more online?

Boomers spend a good portion of
their large disposable income over
the internet.

“Older Boomers” spend the most
online of all generations

“Younger Boomers” were the next
biggest spenders, closely followed
by Gen Y.

28. What are the steps to E-Commerce?

Step-By-Step Guide to starting in E-commerce

29. E-Commerce in Summary

Increase consumer access

Increase brand awareness

Reach a greater and diverse audience

Increase sales

30. Agenda
A Where does Bodega Lagarde want to be in the US?
B Where is Bodega Lagarde currently positioned in the US?
C How do we get there?
1
Distribution Expansion
2
E-Commerce Exposure
3
Heighten Brand Awareness
D Implementation Guidelines

31. How can Lagarde increase brand awareness in South
America and the US?
Social Media Presence (SA)
Leverage social media
presence in South America
Social Media Presence (US)
Establish social media
presence in the US
Event Partnerships
Partner with events that attract
potential customers

32. How effective is social media as a marketing strategy?
Reaches potential
customers with a clear idea
of the product
Success of campaigns can
be monitored
Direct customer feedback
to improve product/ service
Customer relationships
become more intimate
Share of participating
businesses (out of 3025)
Effect of Social Media According to the Social Media
Marketing Industry Report 2013
100%
80%
60%
40%
20%
0%
89%
Increased
exposure
75%
Increased
traffic
69%
65%
61%
58%
54%
47%
43%
Provided
market place
insight
Develped
loyal fans
Geenrated
leads
Improved
search
rankings
Grown
business
partnerships
Reduced
marketing
expenses
Improved
sales

33. Is social media right for Lagarde in the US?
Social Media in the US

US has the highest social media usage with 52% of the population

22% of Americans use social networks several times per day

75% of the households with an income >$50,000 are social network users

Only 33% have ever followed a brand  room for improvement!
% of internet users in each
group
US Social Network User Penetration by Age in 2013
100%
80%
60%
85%
40%
93%
85%
77%
65%
20%
57%
36%
17%
0%
0-11
12-17
18-24
25-34
Age Group
35-44
45-54
Gen Y
Gen X
55-64
“Boomers”
65+

34. What to consider when using social media platforms in
the US?
Platforms
Measures
 Facebook and
Twitter as most
popular platforms
worldwide
 Instagram very
popular, uses
hashtags, pictures
and videos evoke
stronger responses
 Measuring
performance is key
Content
 Create clear image
of product and
company culture
 Personal and
emotional
 Engage customer to
get valuable
feedback
 Carefully monitor
campaigns’
 Develop KPI
scheme
 Social networks
provide data
 Create HootSuite
account

35. Leverage social media potential with limited resources
Sign up for HootSuite
1.
Manage social media platforms simultaneously
2.
Schedule posts in advance (hours, days, weeks)
3.
Track results in direct comparison
4.
Smartphone App available
5.
Email reports on performance

36. Timeline for Social Media Strategy Implementation
January
February
Launch social
media presence
in the US
simultaneously to
new website
Improve US
Facebook page and
set up Instagram/
Twitter
Leverage guidelines
provided for existing
platforms, link
Instagram and
Facebook
March
Set up HootSuite
account, develop
KPIs and set
specific goals

37. Agenda
A Where does Bodega Lagarde want to be in the US?
B Where is Bodega Lagarde currently positioned in the US?
C How do we get there?
1
Distribution Expansion
2
E-Commerce Exposure
3
Heighten Brand Awareness: Strategic Partnerships
D Implementation Guidelines

38. Three stages of enhancing brand awareness via
partnerships
Stage 1
Stage 2
Stage 3
Brand
Exposure
Attention
Acceptance
Understanding
Intention
Trial
&
Success

39. What kind of partnerships are suitable for Lagarde?
Benefits of Event Sponsorship
 Sponsorship is highly effective in the
early stages of market development
 Price efficient
 Synergies with the performance on
social media platforms
Suitability of Art Events
 Fits the target market regarding lifestyle
 Publicity in relevant/ specialised press
 Lagarde has the expertise in this area as
they sponsor art events in Argentina

40. Brand Awareness in Summary

Heighten brand awareness

Enhance social media presence in South America

Create social media presence in the US

Partnerships with art gallery exhibitions and events

41. Agenda
A Where does Bodega Lagarde want to be in the US?
B Where is Bodega Lagarde currently positioned in the US?
C How do we get there?
1
Distribution Expansion
2
E-Commerce Exposure
3
Heighten Brand Awareness
D Implementation Guidelines

42. Lagarde US Growth Strategy –
Implementation Strategy and Value
Phase III
Impact/Focu
s
• Combine social media platform with
partnerships in US
• Dedicated distribution/export manager located
in US
• Independent E-Commerce functionality on
Lagarde website
Phase II
• Establish US social media presence
• US based distribution consultant (part time)
• Apply to additional existing e-commerce specialty
distributors (eg
ChambersStreetWines.com, KLWines.com, etc.)
Phase I
• Increase SA social media presence
• Send revised prospecting email content (via mail
merge), follow up with regular cadence
• Apply to one existing e-commerce distributor (eg
Wine.com, WineExpress.com, etc.)
Resources/Commitment

43. Thank You

44. Backup

45. Implementation Strategy and Impact
Impact to
Import Quantity
5-10%
10-25%
25%+
Import/Distribution
E-Commerce
Brand Awareness
Send revised prospecting email
content (via mail merge), follow
up with regular cadence
Apply to one existing e-commerce Manage local Facebook account
distributor (eg Wine.com,
with weekly content, manage
WineExpress.com, etc.)
analytics
Hire US based distribution
consultant (part time)
Apply to additional existing ecommerce specialty distributors
(eg ChambersStreetWines.com,
KLWines.com, etc.)
Hire dedicated distribution/export Independent E-Commerce
manager located in US
functionality on Lagarde website
Manage US Facebook account with
weekly content, use HootSuite to
manage social media platform
Combine social media platform
with event sponsorship in US

46. Outline of Deliverables
I.
Import/Distribution in the US



II.
Research regional distribution channels in US that align to the Lagarde brand
and vision
Provide list of vetted import/distributors based on research (focus on Northern
CA, Northwest US, NY/NJ)
Analyze and provide recommendations for best practices in seeking out and
establishing distribution partnerships in US
E-Commerce in US



III.
Research and provide a short list of wine ecommerce websites that would fit
the Lagarde line and vision
Create Step-by-Step guide on how to get on to these sites
Provide recommendations and best practices for future steps and expansion
Marketing and increased brand awareness



Analyze current social media platforms including all the usage data on FB
Provide recommendations and best practices on how to leverage current
FB, Instagram and Twitter accounts better in Latin America AND expand into
US
Research additional marketing channels and outlets that align to Lagarde
brand to heighten consumer awareness in US and Latin America

47. Where should Lagarde focus
distribution improvements?
US Consumer Friendliness (Map)

48. References




http://www.svb.com/uploadedFiles/Content/Blogs/Wi
ne_Report/2014_Report/wine-report-2014-pdf.pdf
http://wineeconomist.com/2009/05/05/thedistribution-bottleneck/
http://www.nopaywinedistributors.com/California/Hen
ry-Wine-Group-129.php?
How to write an email that sells wine or spirits

49. 

Building Strategic Partnerships in Wine Marketing:
Implications for Wine Distribution
Argentine Wine Industry Strives to Expand Internationally



“In 2012, wine exports increased in volume by 17% to 365
million liters and in value by 10.15%, reaching US$920.4
million, according to the National Institute of Vitiviniculture
(INV).”
“In January and February, overall wine exports fell by 24%
to 44.6 million liters (export values fell 6% to US$120.9
million), according to a report by Caucasia Wine Thinking
consultancy released by cronista.com.”
“To continue exporting, many wineries are focusing on
medium- and high-price brands, where they have more
leeway to adjust prices. Others simply are ceasing to
export.”

50. Major Distributors in Southern California

Southern Wine & Spirits



Founded in 1969, Southern Wine & Spirits of California is today far and away the Golden
State's single largest wine and spirits distributor. In fact, according to a recent survey in Impact
Newsletter, a publication of M. Shanken Communications, Southern Wine & Spirits of California
will lead all the state's wine and spirits distributors in estimated total alcoholic-beverage sales in
2006; this No.-1 ranking also makes the California operation the single largest state entity in the
32-state network that comprises Southern Wine & Spirits of America, Inc.
http://www.southernwine.com/
Young’s Market

Young's Market Company is one of the nation's largest distributors and brokers of beverage
alcohol with operations in California

http://www.youngsmarket.com/index.php

51. Miscellaneous Notes


“I would send every sample I could to the wine reviewers....a nice score from
Robert Parker and he would have importers lining up to kiss his you know
what....but the wine would have to be an over-saturated oak-bomb to get an
over 90 score from Parker.” –Dennis (Former buyer for Costco)
(Kris Garrett)




The above partners would be what I'd consider the mid to high mid level tier of distribution for
both size and capability to operate as a distributor versus a broker.
The distinction between broker and distributor is possession of the wine. Broker work as
agents of the winery and never take possession of the product but rather just a % fee for
bringing the wines to buyers and taking orders that are passed along to the winery. This route
is best for boutique wineries with low to moderate case production that prefer the very personal
and attentive nature of the winery-broker relationship. This is the route I am taking with our
new winery. In my opinion this is by far the best way to establish a new brand with restaurants
and fine wine stores. Larger distributors often overlook wines in their books due to the large
number they represent.
The drawback is brokers do not take possession and thereby purchase the wines upfront from
the winery. This is mainly an issue of cashflow. In exchange for the up front cash, the winery is
conceding a lower margin and loss of control for the sales methods.
Distributors such as Young's Market, Southern Wine & Spririts, and Wine Warehouse dominate
the CA market, however I've seen many wineries chase the cash and then become pawns in
discount schemes these distributors frequently employ. Unless you are part of a larger import
group you loose the power to draw the salesperson's attention in these large distributors.

52. E-Commerce Backup Slides

53. Which Online Sites should Lagarde
pursue?

Wine.com


125 Argentine Wines

Average Price $15 - $20


“great selection, low prices, convenient delivery and information that helps you enjoy
wine with confidence”
http://www.wine.com/
Chambers Street Wines

“naturally made wines from artisanal small producers”
4 Argentine wines

Average price $20

http://chambersstwines.com/


K&L Wine Merchants

“offer outstanding wines from across the globe”
56 Argentine wines

Average price $10 - $25

http://www.klwines.com/


54. Which Online Sites should Lagarde
pursue?

JJ Buckley Fine Wines
 “premier fine wine retailers in the United States”
 18 Argentine wines
 Average price $45
 https://www.jjbuckley.com/

WineExpress.com
 "high standards and specifications"
 11 Argentine wines
 Average price $25
 http://www.wineexpress.com/

55. Steps to Begin in Ecommerce
Step 1:
Step 2:
Determine which site best fits your brand
Follow the online application process
The majority of the sites require an email application or contact via the
direct website
Specific information necessary in the email includes:
1. Company Specifics (History, Offerings, Brand, etc.)
2. Inventory and location of the inventory,
3. Price points
4. Digital copy of label image
5. Awards and press
*May be able to use same or similar email being sent to non-online
importers/distributors
Wait for response from the website, but if no response in 2 days
follow-up with a phone call.
Step 3:
*Fairly quick turn-around time: some emails returned within hours,
others the next day
Step 4:
Step 5:
Step 6:
Discuss with importer in the area
Launch your brand with the site
Periodically confirm that brand is being represented to standards

56. Brand Awareness Backup Slides

Detailed explanation in content discussed

57. How can Lagarde address the US customers via Social Media
Platforms?
Facebook and Instagram

Show your product in action by the people who love them

Let your photos speak the culture of your company, your product, and your customers

Find out who and what your customers love so you can share those people and things
with them

Get personal with your customers and show things that have nothing to do with
marketing, but everything to do with being human

Inspire and motivate people by making the text along with your image powerful
Posting on Instagram

Show your followers how to use hashtags by using them in your own updates

Promote your Instagram everywhere including your website and your other social
media accounts

58. Example: Beringer Vineyards (Napa Valley)
 Inspiration and motivation
 Powerful picture
 Talks directly to the
customer
 Logo included

59. Example: Beringer Vineyards (Napa Valley)
 Powerful picture
 Talks directly to the
customer
 Sells the Californian
lifestyle
 Powerful wording
 Logo included

60. Tweeting
Twitter

Prepare post on terms of content first – clearly think about what you want to say first!

Try taking a key point from your post and including it in the tweet: Never use more than
two hashtags in a tweet!

Ask a question: “Struggling to decide on a wine for dinner? You need to read this xxx
#article”


You offer a solution


Identifies an issue people might have when choosing a wine
Strong statement: “You need to read”
Invite audience to participate in the middel of the Tweet


“(…) Have you got any tips to share? We'd love to hear them!“
Tweet across the day

61. Metrics Facebook
Facebook
1
Reach of page and per post
2
No. of users engaging with your posts
3
Development of Net Likes
4
Negative post: Post Hides, Hides of All Posts, Reports of
Spam, Unlikes of Page

62. Metrics Facebook
Facebook
1
2
3
4
Reach of page and per post
No. of users engaging with your posts
Development of Net Likes
Negative post: Post Hides, Hides of All Posts, Reports of
Spam, Unlikes of Page

63. Metrics Facebook
Facebook
1
2
3
4
Reach of page and per post
No. of users engaging with your posts
Development of Net Likes
Negative post: Post Hides, Hides of All Posts, Reports of
Spam, Unlikes of Page

64. Metrics Instagram
Instagram  Statigram
1
Followers  must not
be only metric
2
Relationship between
frequency of posts and
follower development
3
Engagement most
important
4
User generated content
1
Monitor
keywords, hastags
2
Create hashtags for
certain events and
monitor event
specific usage

65. Metrics Instagram
Instagram  Statigram
1
Followers  must not be only metric
2
Relationship between frequency of posts and follower development
3
Engagement most important
4
User generated content
1
Monitor keywords, hastags
2
Create hashtags for certain events and monitor event specific
usage

66. Metrics Twitter
Twitter  Timeline Activity Dashboard
1.
Follower growth
2.
Follower quality and engagement
3.
Reach (Retweets)
4.
Traffic
5.
Conversion (singing up)

67. Leverage Social Media potential with limited resources
Sign up for HootSuite (Social Media Management System for Brand Manager)
1.
Manage several social media platforms simultaneously
2.
Schedule posts in advance (hours, days, weeks)
3.
Track results in direct comparison
4.
Smartphone App available
5.
Email reports on a monthly basis
Free Plan




$9.99$/ months
Up to 5 Social Profiles
Basic Social Analytics
2 RSS Feeds
Smartphone App
 50 Social Profiles
 Enhanced Social
Analytics
 Unlimited RSS Feeds
 Support Team for
Influencing Scores and
Recommendations on
Posting Behaviour
 Archiving
 Smartphone App

68. Leverage Social Media potential with limited resources
Sign up for HootSuite (Social Media Management System for Brand Manager)