Archive | Wine Marketing RSS for this section

An American (Wine Marketer) in Paris

By Dr. Kathy Kelley

I have been fortunate over the past few years to co-lead groups of Penn State undergraduates on a two-week experience in Paris, France, with the goal of comparing U.S. and French agriculture and food systems.  The students learn about U.S. systems from Penn State experts during the spring semester and then they learn about the French systems when abroad in mid-May.   Grape and wine production happens to be one of the topics they study, and they get an opportunity to not only visit a vineyard and winery in Pennsylvania but a couple of operations in the Champagne region.  On my time off I visit wine shops and look for wine-related “things” that may be of interest to you, our blog readers.  What follows is a bit of what I have seen so far on my trip.

Learning about Wine in High School

One of the stops we took the Penn State students to in the Champagne region was an agricultural high school (Lycée Agroviticole – Crézancy; http://bit.ly/2qyL40l).  The school was founded in 1870 and is just one of several schools that teach students about farm management.   Some of the students who have an interest in becoming winemakers, along with high school graduates who seek viticulture and enology training, are responsible for the vineyards and grow the three main wine grapes used to make Champagne (Chardonnay, Pinot Noir, and Pinot Meunier). Screenshot 2017-05-19 16.23.55

In addition to learning about grape production, the students also learn the multi-step process of making Champagne and are involved in all steps of the process.

Screenshot 2017-05-25 19.16.35

Screenshot 2017-05-25 08.40.05Under the direction of a cellar master, the students’ final product is labeled and available for purchase.  Selections, with the price in U.S. dollars, include Brut Tradition ($15.00), Brut Blanc de Blanc ($16.30), Brut Rose ($16.75), Demi-Sec Tradition ($15.73), and Euphrasie Millesime 2008 ($21.35) (http://bit.ly/2rljEMQ). A product that is now available, but was not in 2015 when I last visited with a group, is Brut Terroir – their organic option ($19.11).

Champagne can be purchased online as well as from the cellar at the school.  A building is currently being converted into a retail space that the students will operate.  Students interested in Champagne production also attend conferences, participate in judging events, and co-host events for the industry.

Screenshot 2017-05-25 08.39.40

A 20,000 Euro ($22,474.74) Bottle of Wine

I am drawn to retail establishments and really enjoy observing how products are displayed, how the space is used, and the overall “feel” of the store.  While Paris has many wine shops and places to buy wine (even a wine shop where no French wine is sold/served (http://soifdailleurs.com), I enjoy visiting La Cava at the Lafayette Gourmet near the Opera Garnier in the 9th Arrondissement (http://bit.ly/2rkwriQ) because it is in the midst of a supermarket in the basement of a department store and it is staged as if it were a museum.  It is roomy, security guards are staged at the entrances, and the lighting highlights certain pieces (wines).

Screenshot 2017-05-25 13.52.35

There are approximately 2,500 labels, of which almost half are from Bordeaux.  Each time I visit I look for the most expensive wine available for purchase.  Though I found a few bottles that were priced over 2,000 euro (approx. $2,250 U.S.), I also found a few 750 mL bottles that were just a bit more: a 1945 Chateau Latour (Bordeaux), which Parker awarded a 90/100 and Wine Spectator a 100/100 (http://bit.ly/2rTOKs6), that sells for 12,900 euros (approx. $14,500 U.S.) and an 1899 Chateau d’Yquem (Bordeaux) for 20,000 euros (approx. $22,500), which Wine Spectator awarded a 91/100 (http://bit.ly/2qjseYs).   However, if those prices seem a little steep, do not forget that you can request a VAT tax refund when you leave the country, which for the Chateau d’Yquem is 2,400 euros (approx. $26,900 U.S.).

Screenshot 2017-05-25 14.30.35

Lavinia

Another shop that I visit when in Paris is Lavinia (located in the 1st Arrondissement, http://bit.ly/2qnVah7).  The business was established in 1999, has over 6,500 labels (including selections from the U.S.), and is often referred to as the Europe’s largest wine store.

Screenshot 2017-05-25 17.27.37

“La Cave” is in the basement level and houses rare and expensive wines.  In order to access the wines in this section, you will need to ask a staff member to open the door with a code, after which they will accompany you while you make your selection, and then they will bring the bottle to the cashier.  This is the one section of the store where it is forbidden to take photos of the bottles in an effort to minimize any exposure to excessive light from a camera’s flash.

After walking around both floors you may be interested in having a meal in the restaurant.  If you are interested in learning what wines pair with items on the menu you need only look at the display outside the dining room, find the particular food item (e.g., salad, cheese, a specific entrée), and refer to what wines are positioned in the column under the photo.  If you would like to taste a particular wine, ask for a card (deposit of 3 euros), load 10 euros or more onto the card, and insert it into one of four machines that will dispense a select number of reds, rose, or white wines, all for 1.10 euro to 9.60 euro per 3 cl (1 fluid ounce).

Screenshot 2017-05-25 17.25.58

As you can imagine with a city the size of Paris – the number of options for getting a glass or bottle of wine is immense.  If Paris is on your list of places to see, or if it is time for you to visit again, be sure to investigate what bars, restaurants, shops, and tastings you would like to experience.  While many establishments are well known and marked there are also a number of speakeasies in the city that deserve a visit, one of which is Lavomatic (https://www.lavomatic.paris).

Lavomatic is a working laundry mat with a secret door hidden behind one of the dryers.  After you push the “start” button on the dryer and pull the door to open it- you will find a dark staircase that leads up to a small bar with a few small seating areas including a few swings that hang from the ceiling.

Screenshot 2017-05-25 19.05.08Screenshot 2017-05-25 19.01.42

Until next time…

Using Social Media to Engage with Customers: Filters and Stories

By Jennifer Zelinskie and Dr. Kathy Kelley

We have written a few blogs on social media, how to use the tools, and our survey participants’ use of these tools to connect with wineries and tasting rooms.  You can learn what Snapchat is and the number of U.S. adults who use Facebook and Instagram in one of our more recent posts: http://bit.ly/2o44NFy.  We are finishing our social media series by describing a couple of features that wineries, tasting rooms, wine festival organizers, and similar can use to engage with consumers and enhance their experience.

Snapchat Filters

 If someone has shared a Snapchat photo with you and it looked as if it was embossed with words/phrases, cartoon images, or a business’s logo, the person who took the photo likely applied a filter to decorate the image.

If the filter also included the name of the location then it is likely a “geofilter,” which would only be available to Snapchat users who are in a certain geographic area.  For example, a Penn State University filter was available April 19, 2017 (see below) but only to those who were on the University Park campus, based on the GPS signal that their smartphone was emitting.  Once I left this “area” the filter was no longer an option in the Snapchat app.

Screenshot 2017-04-19 13.26.33According to Spredfast.com, “Geofilters are most popularly used to represent a location or event, but they can also help spread the news of an upcoming release, or trigger participation in a campaign” (http://bit.ly/2m874tv).

Imagine the power that a filter could have:

  • A wedding takes place at your winery, you host an event, or are present at a wine festival, and you promote that a filter is available on Snapchat (which includes either your winery’s name, the festival, etc.).
  • Visitors take photos with Snapchat, apply the filter, and then share the photo with others who follow them on Snapchat. The photos can also be saved to a smartphone or tablet and shared via Facebook, Instagram, email, etc.
  • Those who receive the photo see what a great time attendings are having at your event or tasting room – hopefully prompting them to visit.

 

While the following provides guidelines for designing Snapchat geofilters, some of these tips are applicable when creating filters using other social media tools.

  • Your design:
    • Be sure to keep the middle of the screen open and free from any design (http://bit.ly/2m874tv).
    • One source suggests that the design “shouldn’t take up more than one-third of the screen space (http://bit.ly/2m8fX69). Your design should include your logo, but it should be “secondary to a good design” (http://bit.ly/2m8mptY).
    • Snapchat may reject geofilters with designs that cover the “entire frame or take up too much space in the four corners of the frame” (http://bit.ly/2m8mptY).
    • Consider developing a few different geofilters so that your customers have some choices. This also gives you the opportunity to highlight more than just one key activity during your event.  According to Ashley Ranich, one could have a “strong typography” and the other could include a “fun illustration.”  She also suggests that offering two or more filters can help you determine which filter is more appealing based on use (http://bit.ly/2m8mptY).
  • Font color considerations:
    • If your geofilter will be used at night, or in dark spaces, use light font colors so that your text is visible (http://bit.ly/2m874tv).
    • The reverse is true if the filter will be used in the sunlight or well-lit area. You’ll want to consider darker text font colors (http://bit.ly/2m8fX69).
  • Some minimums and maximums specific to Snapchat:
    • The minimum cost for a geofilter is $5.00, which will cover a 20,000-square foot area (slightly less than ½ an acre) for one hour. It is suggested that you make the geographic area a little larger as “geo-targeting isn’t quite as precise” as it could be (http://bit.ly/2m8fX69).
    • The maximum coverage area is 5 million square feet (approximately 115 acres) and a campaign cannot last for more than 30 days (http://bit.ly/2m8fX69).

You can upload your own design, use one of Snapchat’s templates, or create one using their online design tool, which provides business designs (with generic themes) and special occasions (e.g., weddings, birthdays, current holidays, events).

Personal geofilters cannot include “branding, business marks/names, or logos, and doesn’t promote a business or brand” while a business geofilter can be used to promote your tasting room and include marks, logos, etc. that you own (http://bit.ly/2mKCkmG).

Screenshot 2017-04-20 10.26.03Screenshot 2017-04-20 10.28.28

The one-hour campaign yielded the following:Screenshot 2017-04-20 10.26.10

 

‘Uses’ and ‘views’ “include any repeated views or uses from the same Snapchatter” (email exchange with Team Snapchat, March 9, 2017).

What was the return on investment?  If all 28 views were unique, meaning that 28 individuals viewed snaps with the geofilter, then our cost per impression was 18 cents.  If 14 individuals viewed the snaps twice, then our cost per impression was 36 cents.

Facebook Filters

Facebook recently introduced “frames,” which can be used to decorate profile pictures or photos that were taken using the Facebook camera feature on a smartphone or tablet.  You can take a tour by clicking on the following: http://bit.ly/2o3NmoK.  A few stock frames are available (see below), and Facebook users can create custom frames.

Designing your own frame

A desktop tool like Photoshop is needed to design and build the frame (no design tools are available in the Create a Frame app), which then needs to be uploaded to Facebook.

Screenshot 2017-04-19 12.41.40

 

Screenshot 2017-04-19 11.38.45The frame can be available to “everyone” (regardless of where they are located) or just Facebook users in a particular area (instead of drawing a “fence,” like when designing a Snapchat geofilter, a “pin” is used to identify a location on a map).  Facebook users can search for your frame based on the name you provide (e.g., Happy National Wine Day!) and/or keywords (e.g., wine, festival, party).  By indicating that “Penn State Extension Enology” owned the frame – followers may see Denise’s photo/PSU Enology next to the frame, which can also help users find it.

Facebook Frames, like Snapchat Geofilters, need to be approved before they are “live.” As of today’s posting, we have not been able to learn how much a frame costs.

 

 

Instagram Stories

 Instagram is primarily a mobile-oriented social network, but it does offer some capabilities when viewed in a desktop web browser. Similar to other social platforms, Instagram allows users to engage with one another through following each other, liking posts, saving photos, commenting, tagging, and sending private messages between users. Filter and editing options, as well as geographical location tagging, can also be applied to pictures and videos users upload (http://bit.ly/2oRyCZh).

Additionally, Instagram allows users to change their account to a business profile, which provides business-related insights, including: “top posts,” “promotions,” demographics of “followers,” and days/times they are most active on the network (photo below).

Screenshot 2017-04-20 10.18.08

Another way to communicate with social media followers, keep them informed about your winery tasting room, and generate a response is by creating “stories” – a series of images and video that “lets you share all the moments of your day… in a slideshow format” (http://bit.ly/2o4VWUa).   While Facebook and Snapchat also allow users to create stories, we will focus on Instagram Stories and what you can do with this “feature.”

Instagram Stories

If you follow Instagram users who are creating stories, you will easily find them at the top of your main feed (they look like “little photo bubbles of the users you follow”), and you can access them for 24 hours after they have been posted (http://bit.ly/2oRyCZh).

Screenshot 2017-04-20 10.17.02

To view a story, tap the user’s photo. Tap on the right side of the screen to skip to the next post or tap the left side to go back. Swipe left to skip to the next user’s story.

To post your own story, select the “Your Story” icon at the top left of your main feed page and take a photo or video. You can apply filters, text, drawings, and stickers to enhance your post. You can read more about all the features Instagram Stories offers here: http://bit.ly/2auWwCJ.

Screenshot 2017-04-20 10.18.33

Screenshot 2017-04-20 10.19.01

Instagram Stories can be a great way for wineries and tasting rooms to engage with followers. Businesses can post photos of new products, videos of events held at the tasting room, harvest, stages of vine growth, and even post videos of the winemaker explaining processing techniques. The fact that they only remain visible for 24 hours adds an element of urgency and could encourage followers to view stories before they disappear.  Another way that wineries and tasting rooms could use the story feature is to post a picture of a coupon that can be redeemed during the 24-hour period.  You can also target specific Instagram followers and send the story directly to their Instagram account.  But instead of being visible for 24 hours – after they view it, they are only able to replay it once and then the photo will disappear.

Social media is always evolving, and one of our goals is to identify tools that might be of value to your tasting room and give you a bit of insight as to how you can use them. These are just a couple of ways that you can use social media platforms to engage with customers, and they do require a bit more time than just posting a quick photo; however, depending on your customer base you may get much more interaction and a greater reaction than a quick photo.

Connecting with wine consumers and tasting room visitors via mobile devices

By Dr. Kathy Kelley and Jen Zelinskie

You could be reading this blog post on a desktop, on your iPad, or your Samsung Galaxy smartphone.  As the number of devices available to read what we and others post increase so do the best practices associated with creating and posting relevant content.

This post provides information to supplement what we have shared in the past about using technology to connect with customers and tasting room visitors.  Content describes our participants’ cell phone (basic and smartphone) and tablet ownership, the percentage who installed a mobile wine app, and interest in mobile wine app features and receiving text messages from winery tasting rooms.

We will continue to ask participants about their smartphone, mobile app, and other relevant technology use in future surveys.

Smartphone use in the U.S.: Current ownership and forecast

 The very first phone that “meld together the functions of a cell phone and a PDA (personal digital assistant)” was introduced in 1992, although it was not until 1995 that the device was referred to as a smartphone (http://read.bi/2kNBfXa).   As you can imagine, with a retail price of $899 in 1992, consumer adoption was a bit slow at first.

In 2015, 68% of U.S. adults owned a smartphone, and, as might be expected, younger consumers were more likely to own one than more mature consumers.  Smartphone ownership at that time was:

  • 86% of survey participants age 18 to 29,
  • 84% of 30 to 49-year-olds,
  • 58% of 50 to 64-year-olds, and
  • 30% of participants age 65 and older (http://pewrsr.ch/2lo7PCV).

There’s no denying it, many of us consider our smartphones to be essential to our everyday life.  We use these devices to communicate with others, keep our calendar, be used to deliver presentations, and manage our finances.  The capabilities seem almost limitless.

Then it should come as no surprise that these devices are never far from our reach.  In a separate 2015 survey, 81% of U.S. adult smartphone owners responded “yes,” to the statement, “I keep my smartphone near me almost all the time during my waking hours…” and 63% reported that they kept their smartphone “near them at night even while sleeping” (http://bit.ly/2lo0Ae).

Furthermore, we are more likely to turn to our mobile devices than our desktops to “get online.”  In June 2014, the number of “unique visitors” who accessed digital content on mobile devices “passed” the number of unique visitors who accessed digital content on desktops.  In June 2016, the number of unique mobile visitors was “double” that of desktop visitors (http://bit.ly/2lwrldh).

It is estimated between 2014 and 2020 the number of U.S. smartphone users (all ages) will increase by 50.1% (171 to 256.7 million users; http://bit.ly/2kNL5Io).  During this same time period, the U.S. population is expected to increase by 5.0% (318.7 to 334.5 million consumers; http://bit.ly/2kNI5f2).

Mid-Atlantic wine consumer mobile phone and tablet ownership

In a March 2016 Internet survey, we included questions about mobile phone and tablet ownership and asked our participants, who resided in New Jersey, New York, and/or Pennsylvania and who drank and purchased wine at least once the previous year, how they used these devices.

Of the 714 survey participants, all but seven reported owning a basic phone, smartphone, and/or tablet.  Of those who owned at least one of these devices, 93.6% owned a smartphone and/or tablet and the remaining 6.4% owned a basic phone (Figure 1), with 41.6% of these participants responding that they owned a tablet.

screenshot-2017-02-15-15-16-16

Though we did not ask about participants’ mobile tablet or smartphone plans, it can be assumed that some of these participants had a mobile data plan for their tablets.  In 2015, 31% of tablet owners had such a plan (http://bit.ly/2kyLbCS), and some cell phone carriers now offer unlimited or free data plans.  It is projected that by 2020, 66.2% of Internet users will use a table “at least once a month,” a 10.4% increase from 2012 (http://bit.ly/2kyLRYS).

What do smartphone users do on their devices?

Responses to an August 2016 survey involving adult smartphone users, age 18 and older, indicated that on a weekly basis they used their phone to:

  • “access the internet” (93% of participants),
  • “take photos/videos” (71%),
  • “receive SMS/text alerts” (68%),
  • “look up directions” (58%), and
  • “research products” (47%) (http://bit.ly/2lo3lft).

Pertaining to shopping and using a smartphone to make a purchase, there was a nearly equal split between the percentage of respondents who made a “majority” of their smartphone purchases using a mobile app (51%) and who used a mobile website (49%) (http://bit.ly/2lvo65J).

Segmenting data based on demographics reveals:

  • 3% of participants in one survey responded that they made a purchase using a smartphone in 2016, with slightly more female participants making a purchase than males (45.3 vs. 39.9%, respectively) (http://bit.ly/2lvo65J).
  • In 2016, Over half (63%) of Millennials shop on their smartphones every day but fewer, 39%, actually make the purchase on their phone (http://bit.ly/2loGXmh).
  • In 2015, 55% of Gen X shoppers used their smartphones to “locate store/hours,” 54% to “browse products,” and 44% to “get text offers” (http://bit.ly/2lnPS7h).

When asked what prompted them to make a purchase on their smartphone, 21% responded that they made a purchase after receiving a “marketing email about” the product, 18% a “marketing text,” and 17% a “marketing push notification” (http://bit.ly/2lvo65J).

Mobile Apps

Mobile app usage “accounted for 80% of all growth in digital media engagement” between June 2013 and June 2016.

Adults, age 18 to 44, spent more time accessing the web using a smartphone app than they did all of the following options, combined: desktop web browser, smartphone web browser, tablet app, tablet web browser.   How long did these survey participants spend using apps?  During an average month:

  • Smartphone users age 18 to 24 years spent an average of 93.5 hours using smartphone apps,
  • users age 25 to 34 years spent an average of 85.6 hours, and
  • users age 35 to 44 years spent an average of 78.8 hours (http://bit.ly/2lwrldh).

If we take the number of hours in a year and divide that number by 12, there are approximately 730 hours in a month.  So, these consumers were spending between 10.8% and 12.8% of each month accessing content via smartphone apps.

Our participants’ mobile wine app usage and what winery and tasting room app features appeal

One component of our second March 2016 Internet survey focused on whether our participants installed wine apps (e.g., Delectable, Hello Vino, Drync, Wine Enthusiast’s Tasting Guide) on their smartphones and/or tablets and used the app(s) to learn about wine and/or winery tasting rooms.  As is shown in Figure 2, below, 26.7% of smartphone and/or tablet owners responded that they did have an app installed on their mobile device.

screenshot-2017-02-15-15-16-27

 

All participants who owned a smartphone and/or tablet, regardless of whether they had a mobile wine app installed on their device, were also asked to look through a list of features commonly found in wine apps and select up to five they felt would be useful to incorporate into a winery tasting room app.

Responses are ranked based on the number of participants who selected each, with “location, service, direction, and/or map to the winery tasting room” selected by the greatest number of participants (Table 1).  “Detailed list of events held at the winery tasting room” along with details specific to the occasion (date/time, performer, entrance fee, etc.) and “tasting room sales announcement/digital coupons for tastings and/or purchases” were ranked second and third, respectively.

screenshot-2017-02-18-08-46-20

Even through 73.3% participants indicated that they did not have an app installed, we included responses from all of our smartphone and/or tablet owners in Table 1.  It is possible that one of the reasons why participants had not installed a mobile wine app was because they didn’t like the features.  Hence, we feel it is of value to provide all the data as their responses pertained to features that could be incorporated into a winery tasting room app, rather than an app offered by a corporation, magazine, etc.

While the data is specific to mobile app features, knowing what features appeal to mobile device owners could be useful when developing or revamping a mobile website.  Responses may help tasting rooms identify content that they had not considered for their website or help with prioritizing content.

So, should you develop an app for your winery tasting room?

With data showing that smartphone and tablet ownership and app usage is increasing, is it time that you invest in your own winery and tasting room app?  While it may seem that an app would simply duplicate what your mobile website does, according to one expert “mobile apps…are best suited for user retention and engaging with clients.  They’re not aimed at random people finding a company’s website, but are more about rewarding loyal customers” (http://bit.ly/2kXrxUp).

Benefits a small business may experience if they develop their own app include:

  • an additional way to communicate with customers, another channel for them to make purchases, and gather user data (depending on the app’s capability and features) such as “visits, checkouts, purchases, searches, and more” (http://bit.ly/2kXsxI9);
  • being able to reward users, be the method for recording purchases, and display loyalty program status and level (http://bit.ly/2kXmW4G); and
  • serve as a point of differentiation from other winery tasting rooms that do not have their own app (http://bit.ly/2kXnHdS).

One of the biggest cons, if not the biggest, is the cost of building an app.  The costs to build an app depend on what options are selected.  Some of which include:

  • if your app be available to Android or Apple iOS users of both,
  • if and how users login to the app (no login, using their email, or using a social media account),
  • if users will have to create a personal profile,
  • if the app will be free, for a fee, and/or allow in-app purchases (http://bit.ly/2kXrecm).

Also, you will need to determine if you should develop a:

  • native mobile app (written specifically for Android and/or Apple iOS and is downloaded from the App Store or Google Play and are opened by “tapping their icon”),
  • a hybrid mobile app (which is downloaded like a native app but runs off a web browser and can be cheaper to build than native apps), or
  • a web app (a “mobile version” of a website and “loads within a mobile browser” (http://bit.ly/2kXv5X1, http://bit.ly/2kXsZWY).

Perhaps you are not ready to build an app, but is your website mobile-friendly?

While you may be considering the benefits of developing an app for your tasting room, you really need to learn directly from your customers about their interest in downloading your app and what features appeal to them.  Until you have collected data from your customers, developed the app, tested it, made improvements, etc., your tasting room visitors will likely turn to your website to learn about your winery and wine.

In September 2013, we asked Mid-Atlantic wine consumers to indicate what social media networks, email, and online resources they felt were mandatory for winery tasting rooms to implement.  Over half of our participants felt that a “website for promoting the winery and wines produced” was a “mandatory” component (http://bit.ly/2kNy7dI).  Hence, you not only want a website (according to one survey, 46% of small businesses do not have a website; http://bit.ly/2kNPwTE) but you want one that functions properly and is mobile friendly.

A website that is not mobile-friendly not only frustrates visitors – it may also negatively impact your Google mobile ranking (http://tcrn.ch/2kWN4ws).  Since 2014, Google has been focusing on the importance of having a mobile-friendly website, and that having one provides the consumer with a better experience (http://bit.ly/2kX1YmB).   So, if your website is already mobile-ready then it may “appear higher on search results” (http://bit.ly/2kWUEaI).  Keep in mind that a mobile-friendly website is just one factor than can impact Google mobile rankings (http://bit.ly/2kOhhLK) and that the algorithm pertaining only to Google searches on mobile devices (http://bit.ly/2kX3PrB).  Based on analyzing their customers’ websites, Hubspot.com estimated that the 2015 update resulted in “a 5% drop in traffic,” (http://bit.ly/2kWX0pK).

Fortunately, there are several websites and online tools that identify issues that make a site less mobile friendly.

We tested these tools/sites to see what type of assistance they provided.  We used an URL from a winery that had just updated their website design and that was well designed for desktop viewing.  While we only mention a couple of tools, you will find more online by searching for “mobile ready website tests.”

The first tool we used to check if the website was mobile friendly was developed by Google: (http://bit.ly/2loAxmX).   To test a web page, simply copy and paste the URL into the textbox on the site, click “run text,” and wait.  You will then be directed to a page with your results.

Although we got a message that “this page is easy to use on a mobile device,” and it looked great when we compared the mobile version to how it looked on my desktop, there was an alert.  Two of the resources on the site were “blocked,” which are “external resources­–such as image, CSS, or script files” (http://bit.ly/2loHFzP).  A blocked resource could have minimal impact or if it is a “blocked CSS file [this could] result in incorrect font styles being applied…[which] affects…Google’s ability to your page” (scan your web page and create an index of all the words on the page, which then determines the order in which web users see them; http://bit.ly/2lXtaQq).

If your web page is not mobile-friendly, you will be alerted to whether the errors pertain to Flash usage (“content, animations, or navigation” not being displayed) the content not sized to viewport (the viewer would need to scroll horizontally to see all the content on their mobile device), and/or others (http://bit.ly/2lXN3qG).

We also tested the website with another mobile-friendly tool, mobiReady (http://ready.mobi/), and learned that though 23 of the web page components (e.g., cookie size, applets, and image resizing) “passed” the test, nine had “minor fails” (e.g., popups, JavaScript Minimize), and six were “major fails” (e.g., caching control, JavaScript placement).   After clicking each minor and major fail I learned why the component was considered a failure and I learned “how to fix it.”

Click on the following link to learn how “not being mobile friendly” can cost you: http://bit.ly/2kWOIOS.

A little bit more about texting customers

While basic cell phone owners have limited access to some applications and mobile websites, they still can be used to communicate with wineries and tasting rooms and receive promotional messages, shipping notifications, and other communications that tasting rooms send via text.

In a January post, Kathy provided information about why you might want to consider using text messaging to connect with your customers (http://bit.ly/2lktAma).  While the data discussed in that post were based on consumers in general, we asked in our March 2016 survey if Mid-Atlantic wine consumer were interested in receiving texts from wineries and tasting rooms.

With nearly all (95.3%) of participants owning a smartphone and/or basic phone, and proposing that these phones can accept text messages, over half (53.2%) of participants would be interested in receiving text messages from a winery tasting room that contains information about events, wine tastings, new wine releases, etc. (Figure 3).

screenshot-2017-02-15-15-16-41

Take a look at the post to learn why consumers were interested in communicating with businesses via text and how to use texting to engage with tasting room visitors.  If you need some ideas as to what to include in the message, a simple Internet search for “sample text messages to customers” can lead to several sites with examples and templates (e.g., announcing that your website is mobile-friendly http://bit.ly/2kXnKqj  and asking visitors to comment about their recent tasting room experience http://bit.ly/2kX5uxi).

screenshot-2017-01-26-08-59-39

 

What Drives Mid-Atlantic Wine Consumers’ to Visit Local Winery Tasting Rooms

By Jennifer Zelinskie and Dr. Kathy Kelley

Whether you work in the wine industry or are just a wine consumer who reads the Wine & Grape U. Blog, you have probably visited many different winery tasting rooms. Reflecting on these visits, you probably remember instances when you had an exceptionally good experience and times when your visit might not have been all that delightful. We are pretty sure that you made the decision to return to the facility while tasting the wines or just after the door shut upon your exit.

If you are a winery tasting room owner or operator, you want all of your customers to have a memorable positive experience and have no doubt that they will visit again. This blog post presents data collected from our Mid-Atlantic wine consumer participants as to what had a positive influence on their willingness to visit again.

The Impact of Customer satisfaction

Customer satisfaction is critical to the success of any business. Miguel Gomez, a faculty member at Cornell University, shared five factors that drive customer satisfaction, builds loyalty, and encourages repeat winery tasting room visits. These include:

  • ambience – cleanliness, ambiance, lighting, sounds, view, etc.;
  • service – staff friendliness, knowledge, appropriate appearance, and helpfulness;
  • tasting protocol – variety, amount served, cost, and number of wines tasted;
  • tasting experience – flexibility in choice of wines, space (crowdedness), waiting time to start and between samples; and
  • retail execution – presentation of wine for purchase, quality, prices, discounts, and ease of locating the winery (http://bit.ly/2jy3v2C).

According to data collected as part of the Northern Grapes Project, funded by the USDA, the average number of bottles study participants purchased increased as customer satisfaction increased. Participants were asked to rate their “level of customer satisfaction” in tasting rooms on a scale of 1 (lowest level of customer satisfaction) to 5 (highest level). Participants that rated their tasting room satisfaction level a ‘4’ out of ‘5’ purchased an average of 2.8 bottles of wine, but those who rated their tasting room satisfaction level a ‘5’ out of ‘5’ purchased an average of 4 bottles (http://bit.ly/2k5gG7L). Average amount of money spent at the tasting room also increased as level of customer satisfaction increased. Those who awarded ratings of ‘4’ out of ‘5’ spent an average of $40 and those who awarded ratings of ‘5’ out of ‘5’ spent an average of $60.

How far did our participants travel to winery tasting rooms during an average year?

In our March 2016 survey, participants were asked if they visited and/or purchased wines from winery tasting rooms that were located within 100 miles from their home during an average year. Of the 1,038 participants, 505 (50.1%) responded “yes.” These 505 participants were then asked a series of questions regarding their winery tasting room visits.

Why might purchasing wine from a tasting room be more appealing than purchasing wine from a retail liquor store?

As a winery tasting room owner you want your customers to come and visit your location, taste your wine, and make purchases on a regular basis. Yet one of your major competitors is the local liquor store, which can be more convenient (e.g., hours of operation) for consumers and provide them with a greater selection of wines (e.g., type, origin, price) than you offer.

Hence we asked our participants who visited winery tasting rooms within 100 miles of their home to react to factors that may have influenced them (positively and negatively) to travel to a tasting room, rather than a liquor store, for a visit and/or to purchase wine. Data presented below (Figures 1 through 3) are for the 95.6% of participants who indicated that at least one factor influenced them in a positive way to travel to a winery tasting room to visit and/or make a purchase. We will discuss factors that had a negative influence in another blog post.

Factors that Had a Positive Influence on Participants’ Visits and/or Purchases

As you can see in Figure 1, below, nearly half of the 505 participants selected “prefer to purchase directly from the winemaker” (48.6%) and that “purchasing wine directly from the winery tasting room provides more support to the local economy” (47.9%) as having a positive influence on why they traveled to a tasting room within 100 miles of their home to make a visit and/or purchase wine, as opposed to a retail liquor store. We chose the 100-mile distance as 64% of participants in one study responded that for a food to be “local” it had to be produced within a 100-mile radius “of the store” (http://bit.ly/2jxi1VO), and there are reasons why you might promote your tasting room as being a local wine source.

screenshot-2017-01-26-10-42-27

Individuals who buy wine from local wineries may do so because they feel a sense of community when they make the purchase. Others may purchase local because of economic benefits. For example, when $100 is spent at a local business “roughly” $68 stays in the community while only $43 “stays in the local economy” when $100 is spent at a non-locally owned business (http://bit.ly/12cRrXn). Or, they may feel that local foods and local wines are a natural pairing. According to David Page of Shinn Estate Vineyards, though it may take decades or longer, “the wine of a region and the food of a region creates the cuisine of the region” (http://nyti.ms/2kcdVBt).

How can you, as a winery tasting room owner or operator, use the “buy local” trend to engage your customers?

  • Promote your business as being local, that you make your wine locally, and/or that the grapes and other ingredients used in the wine are from local sources. The Hive Winery, located in Layton, Utah, states on their website that their “wines are crafted using fruit and home from local farms as much as possible” (http://bit.ly/2kwO47H). If you look through their website you will learn that the local theme is not just mentioned once, but they discuss why consumers may want to buy local, indicate the ingredients in each wine that were sourced locally (e.g. “11 pounds of fresh Utah black cherries [are used] per bottle” of their Black Cherry Brandy, http://bit.ly/2kx2K6F), and link to other local businesses. Discussing why local, as well as other environmental practices, is important to them helps convey to readers that they are not merely using “local” just to drive sales.
  • Find a “buy local” association, build a relationship with other local businesses, and work together to promote your businesses and the community. In 2013, 14% of independent businesses located in Michigan “Local First” communities indicated that the effort had a “significant positive impact” on their business, 28% reported a “moderate positive impact,” and 33% “a little positive impact” (http://bit.ly/1gcOesa). These businesses reported a greater percent change in revenue in 2013 over 2012, a 7.0% increase compared to 2.3% for independent businesses in communities without a Local First initiative, and a greater positive change in 2013 holiday sales compared to 2012 (http://bit.ly/1gcOesa).
  • Register your business as a “Small Business Saturday” participant (http://amex.co/1JdleC6). This campaign, hosted by American Express, is held on a Saturday after Thanksgiving and encourage shoppers to buy from local businesses. Now approaching its eighth year, 112 million consumers shopped and dined at small businesses on Small Business Saturday 2016, a 13% increase over 2015 (http://bit.ly/2koxVRI). Not only do consumers focus on purchasing from small businesses on this shopping holiday, but 77% of consumers who participated in 2014 survey responded that “the day makes them want to shop local year-round” (http://bit.ly/2jxFO7q). One winery that utilizes Small Business Saturday is North Folk Winery, Harris, MN. Thewineyhosted a wine pairing with local cheese and chocolate and offered attendees a 20% discount on bottles when they purchased cheese and chocolate gift boxes (http://bit.ly/2jxdAKH).

Offering discounts in your winery tasting room can help attract new customers, encourage undecided customers to make a purchase, and prompt those who have not visited your tasting room in a while to stop in and see what is new.

Pertaining to discounts and programs that would provide incentives for purchasing multiple bottles, 40.1% of our participants indicated that such a discount had a positive influence on their decision to travel to tasting rooms, as opposed to a retail liquor store (Figure 2).

screenshot-2017-01-26-10-42-38

Ron Lykins, a wine tasting room associate, suggests in a blog post that offering a discount on purchasing multiple bottles of wine is a reasonable strategy and encourages up-selling. He provides an example where a customer is purchasing four bottles of wine and is then presented with a modest discount if the customer purchases an additional two bottles.  He stresses that the policy needs to be clearly defined and that all tasting room staff must know when it should be offered (http://bit.ly/2j9BLhe).

But why do discounts work in attracting customers to your tasting room?

 The psychology behind discounts is to create urgency. Which can be achieved by:

  • Using phrases such as “get $10 off your case purchase” or “get 5% off a case purchase,” which specify what is actually being discounted, are more likely to motivate people to buy compared to using less direct statements like “save $10” or “save 10%.”
  • Limit the amount of time you offer the discount, preferably no more than a couple of weeks to encourage customers to buy before it is too late.
  • Inform customers about the discounts when they are if your tasting room and through all modes of communication (http://bit.ly/2jA0Cho).

Of the 505 participants who visited and/or purchased wines from winery tasting rooms that were located within 100 miles from their home during an average year, few participants (14.7%) indicated that being a member of the winery’s wine club and earning rewards by making purchases was a positive influence. This low response may be due to the fact that only 20.8% of these 505 participants reported being a club member or subscriber.

Although this is the case for our survey, as a winery owner or operator, you have the ability to customize your reward system and offer benefits that motivate your customers to become members and renew annually. Keep in mind that it is not just the discount that encourages customers to join a wine club, but there are also “intangible” benefits. You have the opportunity to make your club members feel special, whether that means hosting private events or getting to know them by name (http://bit.ly/2j9BLhe), both of which help members feel truly connected with the winery and tasting room staff. You can read more about our participants’ interest in wine club membership benefits by clicking here: http://bit.ly/2iCoulc.

Whether you are offering discounts to all customers or just members of your wine club, consider the following to make sure that your discount does not have a negative impact on your business:

  • Calculate the best discount price that will still generate a profit by understanding your gross margin, markup, and breakeven figures.
  • Know that you will need to increase your sales volume, which differs based on the discount offered, in order to maintain the desired gross margin. According to the example on the Business Victoria website (http://bit.ly/2jIa96k), if your gross margin is 40% and you offer a 5% discount then you will need to “increase your sales volume by 14.3 percent in order to make a profit.” If you change that 5% discount to a 10% discount you will need to increase your sales volume by 33.3%.
  • Become familiar with what discounts other winery tasting rooms in your area are offering. Though your operations may not be identical, this can at least give you some guidance as to what type of discount you might offer, amount of discount to provide, and frequency which to offer the discount.
  • Review last year’s sales and identify times (days of the week, seasons, etc.) when your sales were low and that, perhaps, running discounts during these times could increase foot traffic and boost sales (http://bit.ly/2jIa96k).

Figure 3 shows survey participant responses to the remaining three factors that could have a positive influence on their likelihood to travel to a winery tasting room, as opposed to a retail liquor store, within 100 miles of their home. Over half, 56.6%, of participants indicated that they like to be able to taste all or most of the wine before making any purchases. Half (51.0%) indicated that they like the taste and/or quality of the wine they purchase directly from the winemaker and approximately a third (31.2%) reported that being able to buy wines made with grapes native to their area (e.g., Niagara, Catawba) were reasons why they traveled to the tasting room.

screenshot-2017-01-26-10-42-48You know how wine tastings influence your visitors’ purchasing decisions, and that if you can get a reluctant visitor to try a wine that they are unfamiliar with – you might just get a sale. Whether you currently make wines that are less known or are contemplating doing so, you should consider encouraging as many visitors as possible to sample them.

In 2012, Michigan State University researchers investigated consumer awareness and perceptions of cold hardy grape wines (e.g., Brianna, Edelweiss, La Crescent, Marquette). According to their results, slightly more than half (55.5%) of Michigan tasting room visitors responded that they were not familiar with cold hardy wines, while 65.3% indicated that they had tasted them. An additional mail/email survey was implemented in six Mid-Western states. Awareness was even lower among these wine consumers, with 70% responding that they were not familiar with the wines and only 26.8% responding that they had tasted the wines (http://bit.ly/2jKwLC).

Although awareness of cold hardy wines was low, consumers who had tasted cold hardy grape wine reported to like them “a lot” (41.9% of the MI tasting room visitors and 39.3% of mail/email survey participants) or “a little” (29.9% of the MI tasting room visitors and 31.1% of mail/email survey participants; http://bit.ly/2jKwLC).

Educating your staff about these wines and guiding them as to how they can encourage customers to taste “unknown” or “less familiar” wine is crucial.

Of note….

We recognize that percentages of respondents who indicated that these factors had a positive influence on their winery tasting room visits were not as high as might have been expected. None of the percentages were greater than 56.6%. In the future, we plan to investigate other factors that may have a positive influence on winey tasting room visits.

screenshot-2017-01-26-08-59-39

 

2017 Retail Trends For Winery Tasting Rooms To Consider

By Dr. Kathy Kelley

With the New Year just over a week away, the number of reports, articles, etc. that predict what will happen in retail and food trends are filling my inbox and dominating the Internet.  Though overwhelming, I do enjoy sifting through these data and identifying trends that appear in more than one source and that could be useful to tasting rooms in our region.

The one trend that appeared quite frequently was the importance of creating a customer experience.  We have published a couple of blogs about creating an experience, which you can find by clicking on the following: http://bit.ly/2h1dM21 and http://bit.ly/2h1dzLZ.   Since you can refer to these past blogs about how to create an experience for your tasting room visitor, I selected three other trends for today’s post: being transparent, important flavors, and communicating with customers via text.

Transparency

For a few years, consumers have expected businesses to be “transparent” with how they manage funds collected via their cause marketing programs.  Donors want to know how each dollar collected is distributed (http://bit.ly/2i6EdIB).  Some companies want to be transparent in every business aspect and they even make key employee salaries public (http://bit.ly/2i6K7ZY).  Without going to that extreme – what can a business do to meet the desires of their customers who have an interest in learning “where their money’s going rather than simply what it’s buying?”

An example presented in Vend’s 2017 Retail Trends and Predictions report (http://bit.ly/2gUbT74) is Everlane, a clothing business that promotes “radical transparency” (http://bit.ly/2h11bvA).  One of their principles is to be transparent in their costs.

By clicking on a wool-cashmere scarf that they sell, I learned that the true cost ($31.00) was derived from the following: materials ($16.40), hardware ($1.60), labor ($9.65), duties ($2.21), and transport ($1.30) (http://bit.ly/2i22LSR).  The retail price was $65; however, they are primarily an e-retailer, with some product available in boutiques in major metropolitan areas, so they have been able to “eliminate brick-and-mortar expenses and pass these savings on to” their customers.  Consumers and some magazines (e.g., Lucky Magazine, GQ, and Glamour), newspapers (e.g., Los Angeles times, The New York Times), and fashion websites (e.g., Style.com) appreciate this strategy and insight (http://bit.ly/2h3EwPv).

You may not feel comfortable providing a breakdown of why your bottle of Chardonnay costs what it does, but I’m sure that you get asked often why your wine is more expensive than a Chardonnay produced by a “massive conglomerate brand.” Reininger Winery, located in the Walla Walled Valley in Washington State, answered this question in a July 2012 blog post (http://bit.ly/2gV1urD).

Courtney Morgan, Reininger Winery Marketing Assistant, provided information to educate consumers about how factors (e.g. marketing costs, land prices, volume purchases) impact the final price of a wine.  Like Courtney, you probably would make note that “there is no question that a large conglomerate winery can make a good $8 wine,” but that there is something unique and special about the wine you produce and the wine in the bottle reflects the care and attention you take during harvest and the wine making process.

Do consumers get a sense of who you are as a brand?

Most likely your website has an “About Us” page that describes a little bit about your winery/vineyard and the owners.  Perhaps you even have some information about your wine maker or other key employees.  If the descriptions are brief, or merely mention an employee, their name, and their job title, consider adding information that them and who they are as a person.

screenshot-2016-12-21-19-43-02Brancott Estate in New Zealand, which I was fortunate enough to visit a couple of times during my 2011 sabbatical, has taken such an approach.  While a few of the key personnel listed hobbies and what they do on their time off, others described what specific tasks they oversee.

When I clicked on their “About Us” page, I learned that Patrick Materman, Chief winemaker, “decided he would study horticulture at Massey University” at age six, that he was awarded the title of “New Zealand Winemaker of the Year” in 2001, and his job entails “monitoring vineyard blocks, tasting fruit and determining the optimum harvest date.”  Eric Hughes, Winery Manager, is responsible for “turning harvested grapes into wines of the highest quality” and he is the head instructor at the Blenheim Dojo for Seido Karate.

If someone writes your blogs or posts your social media updates and readers merely see their first name in the byline – this could be a missed opportunity.  Wouldn’t you, as a consumer of products and services, what to “know” who is provided the information that you use to make a purchase?

John Morgan, who wrote “Branding Against the Machine: How to Build Your Brand, Cut Through the Marketing Noise, and Stand Out from the Competition” (John Wiley & Sons, Inc. 2012) stated that “What you do may not be unique, but you are.  This is why putting your personality into your brand is so important…Personal brands can coexist with a company brand.”  The author provided examples of businesses, one of which was Ford Motor Company, that does this well.  Scott Monty, head of the company’s social media, does “a good job of letting us know the people behind the logo.  Scott is building relationships with people and is a brand within a brand.”  Lastly, “People do business with people…Today people connect with your personality, content, and values.  Not your product or service.”

Flavors

Throughout the year several magazines, food businesses, chef organizations, etc. develop lists of food trends.  The number of these resources can be overwhelming and some focus on the impact of a specific ingredient (e.g. turmeric, http://bit.ly/2i6KMe8).  I try to find trends that relate to particular types of cuisines and that are mentioned in several reports.  So, what cuisines might we be savoring in 2017?  Mintel, a provider of market research (http://bit.ly/2i6kdWA), predicts the following:

Cuban influenced cuisine

This food flavor trend is expected to gain greater appeal due to the U.S. travel ban to the island being lifted.   Consumers who travel to Cuba for leisure and business and eat Cuban food during their visit may then want to consume these foods when they return home.  Look for foods with rich sofrito sauce (Cuban sofrito is made with tomatoes, red bell peppers, and diced ham and differs from Dominican, Puerto Rican, and other sofritos, http://abt.cm/2i6g7Od) and pork-based dishes.

Korean, Filipino, and African flavors will become more prominent

Korean flavors such as kimchi (fermented cabbage dish made with garlic, salt, vinegar, spices, and chile peppers, http://bit.ly/2i6cJ5V) and gochujang (sauce made from chile peppers, salt, sticky rice, and fermented soybeans, http://bit.ly/2i6o71B) “are becoming mainstream as they are incorporated into everything from Polish sausages to ketchup,” and more Millennials (23%) “want to see more pickled ingredients on the menu, compared to 14% of all US consumers” (http://bit.ly/2i6kdWA).

screenshot-2016-12-21-17-26-00

Are you familiar with harissa (a chile paste made with smoked peppers, garlic, tomatoes, and a variety of spices and used in North African and Middle Eastern cooking, http://bit.ly/2i6fB2z), teff (a fine grain used to make breads and baked goods and can be steamed, boiled, or baked, http://bit.ly/2i6exM6), or piri piri (peppers used to make a sauce, http://bit.ly/2i6rvtb)?  If not, you may very well see them served in both full-service restaurants and dished out of food trucks.

Fire-grilled or smoked foods

Cooking food in a stove or oven is being overshadowed by consumer interest in foods cooked over a wood-fired grill.  The smoke flavor and aroma “can be incorporated into spreads, desserts, beverages…meats, marinades and sauces” with restaurants using specific types of wood to impart a particular flavor (http://bit.ly/2i6kdWA).

Regardless of whether you have already seen these foods incorporated into menus at local restaurants or if tasting room visitors have asked about possible pairings, now is the time to start developing a list of your wines to serve with these flavors.

Texting

There are several ways that customers can contact you to ask a question about your wine, tasting room, etc., or that you could use to inform them about an event or just say “hi.” Your customers; however, may really appreciate the ability to text message you rather than send an email or call you on their phone to ask you a question.

In 2015, 92% of U.S. adults owned a cell phone of which 68% of them owned a smartphone (http://pewrsr.ch/2iaveGn).  Another survey, administered in late 2014, revealed that text messaging was the primary activity smartphone users conducted on their phone.  Of the survey participants, 100% of those who were age 18 to 29 used their phones to text message (http://pewrsr.ch/2iawoS8).  Nearly all survey participants age 30 to 49 (98%) used their smartphone to text with just slightly fewer participants age 50 and older (92%) responding that they used their smartphone for this purpose.

screenshot-2016-12-21-18-12-21

If text messaging is the primary activity smartphone users conduct on their phones, might they be interested in using text to communicate with business?  According to a report published by The Center for Generational Kinetics, “some 36% of Millennials say they would contact a company more frequently if they could text them” (http://nws.mx/2h1uNZD).

Why do consumers prefer to send a text to a customer service department rather than call the company?  The top five reasons why U.S. and German consumers preferred text, according to a May 2016 survey conducted by Ovum, were:

  • “less time consuming,” 44% of respondents selected this reason,
  • “more convenient,” 42%,
  • “less frustrating,” 30%,
  • “enabled [them] to ask the company to text/call back,” 26%, and
  • “enabled [them] to have a record of the conversation,” 19% (http://bit.ly/2h1vt1p).

To facility a smooth texting experience, several companies provide 2 Way SMS services that allow businesses to send and receive text messages in real time, send automated replies based on keywords, send appointment reminders, and other communications (http://bit.ly/2h1r3rr).

One such company, SMS Global, a messaging solutions provider (http://bit.ly/2h1m8GT), described some of the things a business can do using 2 Way SMS:

  • Send coupons, offers, and inform customers about sales. SMS Global indicated on their website that “in many cases [their] customers yield a more than 300% increase” in offers and coupon redemptions “compared to email or hard copy offers” (http://bit.ly/2h1r6TW).

An example of a winery that uses text messaging to connect with customers is Chankaska Creek Ranch & Winery, located in Kasota, MN.  The winery uses text messaging to alert customers about the promotions as well as when they release their wines (http://bit.ly/2iaxaOS).

  • Increase email open rates. SMS Global clients experienced a 30 to 40% increase when consumers received a text “prompting [them] to check their email.”
  • Get customer feedback. Every so often, send your customers a text with a question or two and instantaneously learn about their thoughts and interests.

Why might a business want to incorporate texting into their marketing and communication strategy?  Kenneth Burke recently published a list of reasons on the Text Requests website (http://bit.ly/2iakkjA).  Some include:

  • Responding to consumers via text is a quicker way to answer their questions, allowing you to solve a problem before your competitor can, which may result in more sales.
  • According to Burke, “for the average person, texting is one of the more personal things we do every day.” His rationale is that we receive a lot of emails, many of which “are simply marketing and sales messages,” and phone calls, I’m sure that when you see an unrecognized telephone number on your screen that you automatically think that it is a telemarketer.  But, when you receive texts – you know who sent it and these texts are most likely “from people you have close relationships with.”
  • “Texting makes your business fully mobile.” Texting completes the cell phone usage experience.  If a consumer uses their phone to access social media apps, read emails, play games, and a multitude of other activities – then why not reach them on the device that is most likely to be by their side?

Of course, as with any other marketing and communication practice you implement, you will want to make sure that you follow the rules, which include an opt-in consent, directions on how consumers can opt out of text messages, and that message rates may apply (http://bit.ly/2iaFYEC).

We will continue to share trends that could be useful to wineries and winery tasting rooms in the New Year.

Who is the Mid-Atlantic Wine Consumer? Demographics, Behaviors, and Psychographics

By: Jennifer Zelinskie and Dr. Kathy Kelley

Currently, over 100 million people in the U.S. drink wine (vino-california.com). Although knowing and understanding the characteristics that describe the U.S. wine consumer are extremely important, keying in on wine consumers who live in the Mid-Atlantic, and who have better access to wines produced in the region, can provide even more valuable information. Demographics (age/generation, income, race/ethnicity, gender, education and income level, and similar) can help winery and tasting room owners understand “who” their customers are, while behaviors relate to likelihood of using a product (e.g. consumers who drink wine, consumers who purchase wine produced in certain regions) and level of usage (super core, core, and marginal wine consumers), and psychographics (attitudes) describe how consumers “feel” about wine.  Hence, it is important to understand how wine fits within the context of the Mid-Atlantic culture and detect if any subcultures exist that would warrant even more specific marketing messages, promotions (http://bit.ly/2fdAq6B), pricing strategies, and packaging (http://bit.ly/N8jBfo).

According to The Upfront Analytics Team, there are five key ways consumer demographic information can be used in a marketing strategy.  Specifically, to:

  1. understand who the ideal customer is based on their tastes and preferences (e.g. knowing what appeals to super core wine consumers, what Millennials prefer to drink),
  2. lower marketing costs by using the information to target customers more efficiently (e.g. using Facebook as opposed to traditional media to reach younger generations),
  3. identify new opportunities based on gaps in the current marketing strategy (e.g. marketing wine as being sustainable to reach consumers who are environmentally-conscious, marketing low-calorie wines to health conscious consumers),
  4. create unique selling points through marketing stories that appeal to your target customer (e.g. conveying what your brand represents, what makes your wine/tasting room unique), and
  5. better engagement, through the use of steps 1-4, which can lead to increased sales (http://bit.ly/2fdKEE7).

There is no question that knowing specifics about your customer is crucial. Certain segments are more likely to pay more for wine than others, or they may prefer dry/tannic style wines as opposed to sweeter wines (http://bit.ly/2fvApi8). Engaging different age groups can mean utilizing different means of communication or presenting your brand’s message in a unique way. Millennials, for example, love to experiment with wine, are drawn to hip, modern packaging and show very little brand loyalty (http://bit.ly/2fhl8yy).

Description of “Who” Purchases Wine Produced with Grapes Grown in New Jersey, New York, and/or Pennsylvania

Of the 1,038 consumers who participated in our March 2016 survey, 648 of them (62.4%) responded that they had purchased wines produced in at least one of the three states: New Jersey, New York, and Pennsylvania.  This blog post focuses these participants, and we will use an abbreviation to remind our readers when the data presented is for those who were Mid-Atlantic Wine Purchasers (MAWP).

In Table 1 you will notice that slightly over half of the MAWP were female (57.4%) and approximately half lived in New York (49.5%), which is quite similar to the descriptive statistics of all 1,038 who participated in the survey.  We have included these data for consumers age 21 and older based on 2015 U.S. population estimates.

table-1

Other demographic variables that describe survey participants who purchased wine produced from grapes grown in New Jersey, New York, and Pennsylvania:

  • less than a third (30.9%) were members of Generation X, between age 36 and 51, or were Older Millennials, age 27 to 35 years (24.7%, Figure 1),
  • had a Bachelor’s degree (34.9%) or had an Associate’s degree, technical degree, or similar (31.2%, Figure 2), and
  • had an average household income of $76,000 to $99,999 (22.1%), $100,000 to $149,999 (21.0%), or $50,000 to $75,999 (20.5%, Figure 3).

Figures 1 to 3.  Select Demographics (e.g. Generation, Education Levels) of Survey Participants Who Purchased Wine Produced from Grapes Grown in New Jersey, New York, and/or Pennsylvania and All Survey Participants.

screenshot-2016-11-17-10-52-56figure-2figure-3

Other demographic characteristics that described the Mid-Atlantic Wine Purchasers were:

  • 47.5% resided in a suburban area,
  • 70.1% were married or in a domestic relationship,
  • 55.2% had no children living in the household, and
  • 59.8% participant and one other individual in household drinks wine.

Mid-Atlantic Wine Purchasers Consumption and Buying Behaviors

Of our MAWP, 55.9% were “super core,” which is slightly higher than the percentage of all survey participants who were categorized as being “super core” wine consumers (49.3%, Table 2). Participants were also asked to select the frequency that best described how often they purchased bottles or containers of wine. Approximately a quarter (26.2%) of our MAWP purchased wine “two to three times a month” during an average year, which is similar to the percent of all survey participants who purchased wine at this frequency (25.9%) (Table 2).

table-2

What Wine do Mid-Atlantic Wine Purchasers Consume and Buy?

Participants were asked to respond to several survey questions to help identify what wines they consumed most often in regards to level of sweetness/dryness and the type of wine (e.g. white, red).

Based on responses, 35.2% of Mid-Atlantic Wine Purchasers indicated that they preferred to consumed dry wines and an additional 32.9% responded that they preferred to consume semi-sweet wines (Figure 4).  Pertaining to type of wine, 51.5% preferred to consume red wines and an additional 31.8% preferred to consume white wine (Figure 5).

figure-4figure-5

Mid-Atlantic wine purchasers were asked to indicate from which of the three states (New Jersey, New York, and/or Pennsylvania) and other states/regions they would purchase wine for four different occasions (Table 3).  Participants were also asked to indicate which price ranges they were willing to pay for wine produced in the three states for both “everyday” occasions and for special occasions or celebrations (Table 4).

table-3

screenshot-2016-11-17-10-51-36

Based on this information, Mid-Atlantic wineries and/or tasting rooms could develop specific marketing messages to inform and remind consumers that their wines can be served during special occasions as well as enjoyed “everyday.” For example, they could promote that their wine pairs well with holiday meals, snacks typically served during sporting events (e.g. Pinot Noir with pretzels, Chardonnay with chips & nacho cheese, http://bit.ly/2eHJB3y), and/or desserts/fondue that are often served when entertaining (e.g. Late Harvest Riesling with Plain Cheesecake, http://bit.ly/2fisUYO).

Wineries and/or tasting rooms can also communicate with consumers that their Mid-Atlantic wines could be perfect to give as a gift.  For example, those located near universities, historic areas, etc. and have wine named after the region/activities/refers to the school should remind consumers that the wine could be an appropriate graduation gift or to celebrate occasions associated with the historical sites.  Wineries and/or tasting rooms can also promote the restaurants where their wines are served or tasting room staff can suggest a local BYO restaurant and then recommend one of their wines to pair with the meal.

Data presented in Table 4 provides insight as to what prices MAWP reported paying for all wine they bought, not just wine produced from grapes grown in the Mid-Atlantic, for both occasions.  Perhaps consumers have asked you why wine you (or others in the area) produce is more expensive than similar wines from outside the region.  This is an opportunity for you to inform them about why your price is higher (you produce small quantities of wine, production methods differ from mass-produced wine, etc.).  It may seem redundant or you may feel that your customers are familiar with the reasoning – but consumers need to be reminded (again and again) about your brand/what makes your business different from competitors in order for them to truly remember.

How do Mid-Atlantic Wine Purchasers Learn About Wine?

Participants were asked to select, from a list of 11 sources, all the sources they used to learn about wine.  Or those presented, the top five sources were:

  • friends and/or family (75.8%),
  • wine and liquor stores, including the employees, promotions/advertisements in the store, and/or sent via email or postal mail (65.6%),
  • winery tasting room staff and/or promotional/advertisement in the tasting room, and/or sent via email or postal mail (47.4%),
  • food and cooking magazines (e.g. Food & Wine, Bon Appetite, Food Network Magazine, Cooking Light) (43.2%), and
  • general online search using a search engine (e.g. Google, Bing, Yahoo) (38.6%).

The least selected sources were:

  • television/radio programs (cooking channel, local or national news segment) (21%),
  • local and/or regional magazines (online or print) (18.4%),
  • national and/or local newspaper articles (online or print) (16.4%), and
  • educational classes (e.g. short duration of 1 to 2 hours, long duration of 2 to 8 hours and/or multiple day workshops of 2 to 5 days) (8%).

It is important for wineries and/or tasting rooms to understand which sources consumers use to learn about wine. Not only are these sources helpful in determining where to place advertising and promotional messages, but to provide information that the source can then use to inform consumers about wine, pairing suggestions, how to store wines, etc.

How Can a Winery and/or Tasting Room in the Mid-Atlantic Region Apply This Information?

Knowing who purchases wine made from grapes grown in the three targeted states (New Jersey, New York, and/or Pennsylvania), prices participants paid for wine in general and what wines (sweetness/dryness level and type of wine) they prefer, among other data presented, can help wineries and/or winery tasting rooms develop more appealing products and better targeted promotional messages. In upcoming blog post we will continue to present data that describes the behaviors and psychographics of the Mid-Atlantic Wine Purchaser, as well as other segmentations that we feel will be valuable to wineries and/or tasting rooms in the region.

Additional Researchers & Jen Zelinskie’s Thesis Advisory Team:

  • Denise Gardner, Extension Enologist, Department of Food Science, The Pennsylvania State University
  • Ramu Govindasamy, Professor, Department of Agricultural, Food and Resource Economics, Rutgers University
  • Jeffrey Hyde, Professor, Agricultural Economics, The Pennsylvania State University
  • Brad Rickard, Assistant Professor, Charles H. Dyson School of Applied Economics and Management, Cornell University
  • Karl Storchmann, Clinical Professor, Economics Department, New York University; Managing Editor, Journal of Wine Economics
  • Michela Centinari, Assistant Professor of Viticulture, Department of Plant Science, The Pennsylvania State University

The project “Developing Wine Marketing Strategies for the Mid-Atlantic Region” (GRANT 11091317) is being funded by a USDA Federal-State Marketing Improvement Program grant, whose goal is “to assist in exploring new market opportunities for U.S. food and agricultural products and to encourage research and innovation aimed at improving the efficiency and performance of the marketing system.”  For more information about the program, visit http://www.ams.usda.gov.

Mid-Atlantic Wine Consumer Attitudes and Behaviors Pertaining to Sustainable Wine

Dr. Kathy Kelley and Jennifer Zelinskie

A quick search for “sustainable” on Winespectator.com and other consumer-oriented wine magazines and websites generates quite an extensive list of articles and news:  assessments about organic wine tastes compared to nonorganic wine; what biodynamic and sustainable means; and consumer awareness of sustainable grape and wine production issues.  At Penn State we have been focusing on whether wine consumers in the Mid-Atlantic region are aware of the “sustainable” wines concept and their thoughts and interests in these wines, packaging, and related.  This blog focuses on some of these issues and shares some of our survey participants’ “sustainable” attitudes and behaviors.

While organic viticulture may not be commercially viable for Mid-Atlantic producers, there are opportunities to market a vineyard/production’s devotion to sustainability or practices that are incorporated into the production for sustainable purposes.   Though you may not be considering organic grape or wine production, we still believe it is important that we present these data and trends so that you are as informed as possible.  

Mid-Atlantic Wine Consumers and Sustainable Wine

In a March 2016, we were able to conduct a second Internet survey with Mid-Atlantic wine consumers, all of whom drank and purchased wine at least once the previous year. Through this survey, we investigated issues related to sustainable grape and wine production and their purchasing behaviors regarding these wines.

According to 2015 Cone Communication Millennial Corporate Social Responsibility Study (http://bit.ly/2fjmVX0), 83% of U.S. survey participants responded that they would buy a “product with a social and/or environmental benefit.”  When segmented based on U.S. generation, 87% of millennials (age 18 to 34 years at the time of the survey) would buy the product.

Other data focused on reported behavior.  For example, “in the past 12 months” 56% of participants had bought a “product with a social and/or environmental benefit” and 37% “researched a company’s business practices or support of social and environmental issues.”  Again, when segmented by generation, 59% of millennials indicated that they had bought such a product and 40% researched a company.

For our research, we were interested in learning about our participants’ “sustainable” wine purchases, which could be considered a product that has a social and/or environmental benefit. When asked if they “specifically look for and buy wine that is marketed as being sustainable,” 27.1% of our participants responded “yes” to the question.  With continued interest in what appeals to wine drinkers based on demographic characteristics, we segmented data based on the generation our participants identified with (access the following URL to learn more about U.S. generations: http://bit.ly/2e7HFwX).

We found that other than “Baby Boomer” and “Greatest/Silent” generations, a quarter or more of participants in each generation responded that they did look for/buy sustainable wines (Figure 1).  While nearly a third of “Younger Millennials” and “Generation X” participants looked for/bought this wine (28.6 and 31.3%, respectively), a higher percentage, 39.7%, of Older Millennials responded that they sought out/purchased the wines.

screenshot-2016-10-27-13-29-49

“Sustainable” encompasses many different grape and wine production philosophies, methods, and strategies. A 2011 Internet survey conducted by Penn State researchers sought to determine whether specific types of “sustainable wines” would encourage more survey participants to purchase them compared to a “standard wine that [was] not produced with sustainable, organic, biodynamic, or similar grapes or processed using these methods.” Data from 910 Philadelphia and New York metropolitan area wine consumers was segmented based on wine purchasing frequency (e.g. purchased wine at least once a week) (Table 2).

Of the seven sustainable wine options included in the study, more participants who purchased wine “at least once a week” responded that compared to the “standard” wine they would purchase wine:

  1. made with “sustainably farmed” or “naturally farmed grapes” (47.9%);
  2. marketed as being sustainable (38.3%);
  3. Certified Carbon Free (27.8%);
  4. made with “biodynamic grapes” (19.2%); and
  5. “biodynamic wine” or “Demeter Certified wine” (19%) than participants who purchased wine less frequently (http://bit.ly/2fgIUOD).

screenshot-2016-10-28-07-40-42

In our March survey, we investigated consumer interest in select grape growing and wine production practices.

Over half of all participants were either “very interested” or “extremely interested” in all six practices presented. Pertaining to the individual practices, 35.5% of participants were “extremely interested” in “wildlife protection and/or native plant conservation practices,” which was a higher than the percentages for “very interested” to “not at all interested” (Table 2).

In the case of the other five practices, the percentages for “very interested,” and “moderately interested” in the case of “cover crops used in the vineyard to control weed,” were greater than the percentages for “extremely interested.” The percent of participants who were “not at all interested” was less than 6% for all grape growing and wine production practices.

screenshot-2016-10-27-13-47-46

Sustainable Packaging Components

A survey conducted in 2015 by Tetra Pak and the Global Footprint Network found that 86% of survey respondents “said that if they knew that use of renewable packaging contributed to reduced carbon emissions and helped slow climate change, it would impact their choice of packaging” (http://bit.ly/2dPBuMZ).  In addition, 69% of the participants indicated that they look for food and/or beverages sold in renewable packaging.

If the wine you are producing is “sustainable,” then it would make sense that the packaging is as well.  In past blog posts we have focused on different container sizes, which could factor into a consumer’s definition of sustainability (e.g. http://bit.ly/2eJO4ik; http://bit.ly/1FzZ8dA).  With great attention focused on wine containers, closures, and packaging components that may be more environmentally friendly or appeal to younger wine consumers, we investigated our participants’ level of interest in some of these alternative wine packaging types and components.

Percentage of participants who were “very interested” in the wine packaging types/components ranged between 28.2% for “closure is made from renewable polymers derived from sugarcane” to 38.6% for “glass bottles used are up to 27% lighter than ‘regular’ wine bottles.” While percentage of participants who were “extremely interested” in these types/components ranged between 17.5% for the “renewable polymer” closure to 28.3% for “wine container is recyclable, biodegradable, or compostable.”

screenshot-2016-10-27-13-49-29

A future blog post will focus on container and closure recycling and what might motivate a wine consumer to return bottles to a tasting room to both encourage them to “be green” and repeat sales.

Sustainable Winery Tour Opportunities for the Mid-Atlantic

You may be well aware of Sonoma County Winegrape Commission/Sonoma County Winegrowers commitment “to becoming the nation’s first 100% sustainable wine region…to be completed” by 2019 (http://bit.ly/1I0YlSy).  But, perhaps you are less informed about the existence of wine tour operators in the region that offer winery tour packages that cater to consumers specifically interested in visiting organic, biodynamic, and sustainable wineries. North of Los Angeles, Sustainable Vine Wine Tours in Santa Barbara also provides these wine consumers with an experience and incorporating details that fit the overall theme and purpose:

  • customers visit the wineries in “an all-electric, luxury Telsa Model X SUV powered by home solar system” (http://bit.ly/2ePODbl) and
  • lunch includes local and organically grown produce, grains, and poultry that “is naturally raised without growth hormones or antibiotics” (http://bit.ly/2fj10PT).

With the existence of sustainable and organic wineries located in the Mid-Atlantic region and efforts such as the Long Island Sustainable Winegrowing organization, which lists over 15 certified vineyards and wineries, and couple in transition (http://bit.ly/2dLQ5O8), perhaps the time is right for industry members to focus more heavily on “sustainable” wine tours, and consider the type of transportation used and food that is served during theses experiences.  Perhaps more exclusive packages could be offered with green/sustainable/etc.:

  • lodging,
  • suggestions for local/sustainable/organic food markets, farmers’ markets, restaurants,
  • car rental facilities that rent hybrid vehicles,
  • other environmentally-friendly activities and events, and
  • options for ground transportation to bring them to the region as well as local transportation.

In addition to these components, the materials used to build the tasting room facility and/or other buildings may interest this segment of wine consumers.  As part of our initial investigation of this concept, we asked our survey participants’ awareness and interest in LEED certified buildings (a global green building certification program, http://www.gbci.org/certification) on the winery property or used in the wine making process.

Less than a third of our participants had heard of or were familiar with the concept of LEED buildings (Figure 3).  Of these participants, the presence of a LEED certified tasting room and/or other winery buildings 27.1% would be “somewhat influenced” and “very influential.”  Less than 17% of participants responded that these buildings would be “extremely influential” (16.4%), “slightly influential” (15.4%), or “not at all influential” (14%).

screenshot-2016-10-27-13-50-52

In Conclusion 

With the number of options available for a business to become/increase their sustainable efforts, the question is not whether to become sustainable but what “environmentally-friendly” aspects make the most sense for the business.  As many of our readers know, we encourage businesses to survey customers before making changes, no matter how insignificant they may seem, to learn how current and potential buyers will react.  Whether it is a change to the packaging/closure/labels, grape production and wine making practices, new building construction, etc. consider how your customers will (and if they will) value these changes and enhancements.  If you currently incorporate sustainable practices, no matter how small, remember to inform consumers about what you are doing to improve their (wine drinking) world.

Additional Research & Jen Zelinskie’s Thesis Advisory Team:

  • Jeffrey Hyde, Professor, Agricultural Economics, The Pennsylvania State University
  • Denise Gardner, Extension Enologist, Department of Food Science, The Pennsylvania State University
  • Brad Rickard, Assistant Professor, Charles H. Dyson School of Applied Economics and Management, Cornell University
  • Ramu Govindasamy, Professor, Department of Agricultural, Food and Resource Economics, Rutgers University
  • Karl Storchmann, Clinical Professor, Economics Department, New York University; Managing Editor, Journal of Wine Economics
  • Michela Centinari, Assistant Professor of Viticulture, Department of Plant Science, The Pennsylvania State University

The project “Developing Wine Marketing Strategies for the Mid-Atlantic Region” (GRANT 11091317) is being funded by a USDA Federal-State Marketing Improvement Program grant, whose goal is “to assist in exploring new market opportunities for U.S. food and agricultural products and to encourage research and innovation aimed at improving the efficiency and performance of the marketing system.”  For more information about the program, visit http://www.ams.usda.gov.