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© Wine Intelligence 2012
Building brand loyalty in wine
May 23rd, 2012
Wine Intelligence at London International Wine Fair
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@wineintell
Branding: the theory
“A brand is a name, term, sign, symbol or
design, or a combination of these, intended
to identify the goods or services of one seller
or group of sellers and to differentiate them
from those of competitors” (Kotler 2001)
“Brand is a deceptively simple concept.
Everyone can immediately come up with an
example of a typical brand, but very few
people are able to propose a satisfying
definition” (Jean-Noel Kapferer, 2001)
2
To be effective, a brand must have. . . .
Authenticity
Authority
Friendliness
Status
Loyalty
Irreverence
Conscience
…all of which combine to make a brand identity, to provide
direction, purpose and meaning for a brand
“Customers must recognise that
you stand for something”
- Howard Schultz, Starbucks
3
The product attribute fixation trap
Brand “identities” that rely solely on product attributes, e.g.
It tastes better
It’s better quality
It goes faster
It lasts longer
Remember:
Any non-trademarked attribute can be copied anyway
Product attribute positioning assumes a rational customer (!)
It limits brand extension strategies
And reduces strategic flexibility
4
Brand positioning
A brand position is the part of the brand identity and value
proposition that is actively communicated to the target
audience and that demonstrates an advantage over
competitive brands
Good positioning communicates:
Emotional benefits (“you’re worth it”)
Rational benefits (“it does the job better than
anything else”)
How you can turn desire into action
5
If you’re still wondering what the difference is
between a product and a brand…
“In the factory we make cosmetics.
But in the store we sell hope.”
- Ron Perelman, Chairman of Revlon
6
Branding and the wine industry
In wine, we need to scale our brand ambitions to the
following tasks:
1. How to get the consumer to notice you
2. How to get the consumer to feel reassured by you
3. How to get the consumer to remember you
8
?
Understanding subconscious behaviours is useful to
support our complex category
9
Category
complexity Range of SKUs
Social
complexity Wine’s role in the social
environment
Situational
complexity Appropriateness of wine for
different occasions
Product
complexity Variability of style,
vintage and variety etc.
4
COMPLEXITIES
OF WINE
Brand loyalty and consumers
Origin (Country
/ region)
30%
What are consumers loyal to?
11
Brand
35%
Promotion
73%
Varietal
55%
Price
£5 - 8
61%
Own
label
22%
¾ of consumers
usually buy…
what is on
promotion
1/3 usually buy
wines from the
same brand
SOURCE: Wine Intelligence Vinitrac® UK, May 2012, n=1,003 UK regular wine drinkers
Who are your consumers?
12
Adventurous
Connoisseurs
3 ML Generation
Treaters
2.7 ML
Mainstream-
at-Homers
8.3 ML Risk-averse
Youngsters
5.1 ML
Senior Sippers
6.9 ML Kitchen
Casuals
2.9 ML
AGE
INV
OL
VE
ME
NT
SOURCE: Wine Intelligence Vinitrac® UK, March and July 2011, n=3,052 UK regular wine drinkers
Younger Older
Le
ss in
tere
ste
d in
win
e
Mo
re in
tere
ste
d in
win
e
Size of bubble is proportional to size of population
% in bubble = % of total value
Portraits at a glance: We group UK wine drinkers into 6
segments, each with a distinct relationship with wine
13
Adventurous Connoisseurs are middle-
aged confident wine drinkers who enjoy
experimenting within their wine lives
Generation Treaters are
younger wine drinkers who
are growing in confidence and
experimenting with caution in
their wine choice
Mainstream-at-Homers are middle-aged ‘core’ wine
drinkers who view their wine
drinking as a frequent treat
Risk-averse Youngsters are younger wine drinkers,
lacking in confidence and still
growing into the wine category
Senior Sippers are
older, less frequent
wine drinkers with a
limited interest in
wine
Kitchen Casuals are
middle-aged and infrequent
wine drinkers, who are
typically unengaged with the
category
SOURCE: Wine Intelligence Vinitrac® UK, March and July 2011, n=3,052 UK regular wine drinkers
11%
9%
29%
18%
24%
10%
Portrait groups overview
14
Adventurous
Connoisseurs
Generation
Treaters
Mainstream-
at-Homers
Risk-averse
Youngsters
Senior
Sippers
Kitchen
Casuals
Who are
they? Middle-aged and
higher income
confident and
experienced wine
drinkers
Younger,
conservative wine
drinkers who
experiment with
caution and use
price as a proxy for
quality
Middle-aged ‘core’
wine drinkers from
across the UK
Younger wine
drinkers, lacking
in confidence and
with low interest
in the wine
category
Older, less
frequent wine
drinkers with a
limited interest in
wine
Middle-aged or
older and
infrequent wine
drinkers, typically
unengaged with
the category
Why do they
drink wine? Wine is a hobby,
which they enjoy
exploring and
experimenting with
Wine is a social
drink that projects
an image of who
they are to others
A glass of wine at
the end of the day
is a frequent treat
Wine is an
affordable drink
choice when
spending time
with friends
A relatively
affordable and
healthy choice for
their occasional
alcoholic drink
Wine is one of a
set of alcoholic
drinks, which
they consume
infrequently
Where? Drink at home and
in the on-trade.
More often than
others found in
wine shops, but
mainly shop in
supermarkets
Highest likelihood
among all groups to
drink wine in bars
and pubs
Generally drink
wine at home, and
buy wine as a part
of the weekly
supermarket shop
Pick up a bottle
on their way out to
see friends, and
rarely stock up on
wine at home
Buy in
supermarkets,
and mostly drink
at home, although
occasionally also
in the on-trade
Almost
exclusively
consume wine in
the off-trade
What do
they drink? Large repertoire,
and enjoy trying
new styles and
regions – but also
buy big brands
Growing repertoire,
and enjoy trying
new wines
Looking for a
“good value for
money” everyday
wine – know their
brands, but will try
anything on
promotion
Tend to stick to
“easy choices” in
terms of brands,
varietals and
origins
Consume from a
narrow repertoire
that is driven by
low prices
Like Senior
Sippers,
consume from a
narrow repertoire
that is driven by
low prices
Which brands they buy the most? Brand mapping
15
Adventurous
Connoisseurs
3 ML Generation
Treaters
2.7 ML
Mainstream-
at-Homers
8.3 ML Risk-averse
Youngsters
5.1 ML
Senior Sippers
6.9 ML Kitchen
Casuals
2.9 ML
AGE
INV
OL
VE
ME
NT
Younger Older
Le
ss in
tere
ste
d in
win
e
Mo
re in
tere
ste
d in
win
e
Size of bubble is proportional to size of population
% in bubble = % of total value SOURCE: Wine Intelligence Vinitrac® UK, May 2012, n=1,003 UK regular wine drinkers
Building brand loyalty
Building brand loyalty is about relevance and knowing what
is important to consumers
So… what is important to consumers?
16
What is important for them when buying wine?
Value for money and consistency lead for all Portrait
groups
17
Adventurous
Connoisseur
3 ML Generation
Treaters
2.7 ML
Mainstream-
At-Homer
8.3 ML Risk-averse
Youngsters
5.1 ML
Senior Sippers
6.9 ML Kitchen
Casuals
2.9 ML
AGE
INV
OL
VE
ME
NT
Younger Older
Le
ss in
tere
ste
d in
win
e
Mo
re in
tere
ste
d in
win
e
Size of bubble is proportional to size of population
% in bubble = % of total value
Reassurance
in taste / origin
Story behind the wine
Unusual
Anti-marketing
Natural/organic
Wines that
bring back nice
memories
Producer’s passion
SOURCE: Wine Intelligence Vinitrac® UK, May 2012, n=1,003 UK regular wine drinkers
Communicating brand through labels
How do consumers view brands?
19
DISCOUNT
BRANDS
STANDARD
FAMILIARS /
TV BRANDS (depending on Portraits group)
HIGH
QUALITY
Consumers in focus groups place wines in groups based on perceived price and
frequency of discounting
Source: Wine Intelligence focus groups, London, April 2012. Groups conducted with Mainstream-at-Homers and Generation Treaters
UK consumers expect higher price out of traditional
labels
20
£6.95
£4.67
Stately Light-hearted
Source: Wine Intelligence, Vinitrac© UK, March 2011, n=1,016 UK regular wine drinkers
Mean expected price if found in shop where usually buy wine
Base=All UK regular wine drinkers (n=1,016)
Expected price
Exercise
21
1. What does the brand owner want to communicate?
2. How do they communicate it?
3. Who is the target consumer?
Thank you
© Wine Intelligence 2012 www.wineintelligence.com
