SONOMA Pitch DeckJeremie SterlinJune 7, 2015Washington, DC

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Big Agency Experience- Strategic Planner, Lowe Worldwide (2000-2003)

“Obey Your Thirst”

“Have It Your Way”

“What Can Brown Do For You?”

“It’s All About The Beer”

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Independent Consultant- Branding, Planning, PR, Events (2003-2014)

Cloakroom (2013-2014)

Hybrid Technologies (2003-2007) Festival Mizik Jakmel (2007)

SMart cars (2008)Ralph & Kacoo’s (2009)

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Hybrid Technologies Marketing Director

(2003-2007)

Jay Leno endorsementCHP Memorial Chopper

Solar Car Challenge

B2B partnerships

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Festival Mizik Jakmel Events Director (2007) Awareness for FOSAJ (art foundation) Raised $800K in sponsorships 100K in attendance Major International media exposure +10M media impressions Stephen & Damien Marley headline

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SMart cars Marketing Director (2008) Developed marketing strategy Sold 250 units in 8 months Generated $5M in sales

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Ralph & Kacoo’s Marketing & PR Department (2009) Rebranded as a Louisiana fixture Redesigned website Leveraged convention center website Local market strategies

Cross-promoted art competitions with high schools

Organized a R&K brass band for the FQ Merchandising Initiated a “Gospel Brunch” on Sundays Annual revenue: $2.5M

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Cloakroom GM/ Marketing Director (2013-2014) Lowered costs by 20% Annual revenue - $3M

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Current Memberships & Affiliations

Education Bachelors of Arts, Columbia University Masters, Integrated & Digital Marketing, Georgetown Univ

Memberships American Marketing Association (AMA) Direct Marketing Association of Washington (DMAW) Destination DC Washington Area Concierge Association (WACA)

Affiliations DC AD Club Digital District DC Cool

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Next Phase for SONOMA

Reposition the SONOMA Brand

Leverage Social Media

Monetize Social Media

Demonstrate ROI

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SONOMA is an Institution SONOMA is not a new business. Shouldn’t be treated as one. After 9 years, SONOMA has earned and acquired Phase 1:

the right to be called a Capitol Hill Institution

Now it’s time to introduce Phase 2: People know we exist, we just need to remind them People visit due to the cuisine, wine selection & staff We have to remind them that Sonoma is a reflection of themselves Our goal is to acquire “DC’s newest landmarks” status

SONOMA is now going to bring the customer along for the ride!!

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Competitive Analysis – Wine Bars

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Competitive Analysis Since 2007, EIGHT successful wine bars have opened in DC

Sonoma is the oldest, but doesn’t benefit from location

Capitol Hill can’t compete with the trendy & bustling neighborhoods U St corridor, H St corridor, 14th St, Georgetown, M & Conn Ave, Chinatown

The Capitol is a physical barrier to the West

Seward Square is a barrier to the East Won’t get Eastern Market overflow

We can’t rely on pedestrian traffic or popularity of nearby businesses

Sonoma has to be the DESTINATION

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The SONOMA Brand What is the SONOMA brand? Who is the core customer? (describe in detail their daily routine)

What are SONOMA’s attributes? What makes SONOMA distinct, unique? What qualities does SONOMA “own?” Answers:

Take a step back and think very hard about what SONOMA represents What do you want SONOMA to be? (Brand essence) Think about the restaurant as a person? Is she a woman? A man? What is the message you want to send? The message has to be clear, uniform, and defined

a message that’s deliverable The message has to be relevant to the core target

has to speak clearly & directly to them

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Brand Positioning

Once you know your brand, you know your message!!

• Communication isn’t difficult • You know how & to whom to speak, what language to use• The message becomes clear, distinct, deliverable• You know where, when & how to place your message• Messages become engaging and interactive• Promotions and advertising become relevant

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Phase 2: Industry LeaderPosition the SONOMA brand as an authority in food and wine The intention is to spotlight & generate a buzz around the restaurant This approach highlights our passion, knowledge, commitment This new concept will invariably grow & diversify our customer base Increasing unique & repeat visits But most importantly, increasing overall revenue

By “intellectualizing” food & wine, our marketing strategy will: Reinforce brand position through intentional actions and online activity Coordinate all social media seamlessly towards generating public engagement Create new forms of revenue through multiple exposure channels Offer unique and exclusive functionality that only SONOMA can provide

We are going to transform SONOMA into the premiere social resource for food & wine!

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The Qualities of an ExpertWhat do you look for in a doctor, fashion designer, lawyer?

1. Extensive knowledge of particular field2. Leader in the industry3. Passionate, innovative, creative & thoughtful4. Confident, willingness to educate, enlighten & expound

SONOMA will NOW embody these characteristics Already reflected through our cuisine and through our wine selection This will attract a clientele who shares the same enthusiasm for food & wine By creating a culture that values information & knowledge Winophiles and foodies gravitate towards field experts Again, SONOMA is evolving into a wine & food resource

In the restaurant And online

Through “intellectualizing” food & wine we will be adding VALUE to our potential customers’ lives. This is the difference!!!

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Knowledge = AppreciationWhat is a person’s biggest fear when choosing wine for the table? Looking stupid, mispronouncing the label, limited knowledge of varietals, regions, vintage

Our goal will be to educate the consumer Through consistent messages relating to relevant content

Online – Website, Blogs, Facebook, Twitter, Instagram, YouTube, Google+ Offline – Wine/cooking classes, tastings, new product info sessions, recipes, farm/winery excursions, etc

Once content is deemed personally valuable, you will get a response of engagement and of interest

SONOMA is embracing its depth and breadth of knowledge Developing a culture and providing an environment of comfort and self-identity

The Sonoma culture is to impart information & positively reinforce new learned terminology SONOMA will provide opportunities for guests to stop by to put acquired information into practice As opposed to feeling patronized & intimidated, guests now have an arena to exercise their new-found information

Eventually, we will be able to introduce higher priced wines to raise check averages Turley was a great example: those who knew of the vineyard had no problem paying a premium price Knowledge invariably recognizes technique which in turn justifies paying a premium

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Advertising landscape has changed

An even landscape Because of Social Media the advertising landscape is now a level playing field Small and big businesses are all vying for the customers’ attention on the same social platforms Not only is it economical but more effective as we are connecting with relevant groups

A creative landscape How do you compete and engage a customer through the vast amounts of daily posts? Companies have social media on their websites trying to have the conversation happen through them To maintain an online presence, brands have to stay relevant and engaging with fresh content

Nike sells shoes but simultaneously sells a lifestyle by keeping their customers informed Brands need to know who they are in order to craft their message & deliver on their promise

An effective landscape Social Media makes it very easy to locate your core target We locate them through their words and online behaviors Social Media has become the most accessible and interactive advertising option

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Social Media StrategyTo stand out in the social media landscape, we need to show VALUE

Consumers have enough posts, tweets & emails to filter through Consumers look for & read posts that add a spark to their lives

Something funny to break the daily monotony Something industry or work-related Something they self-identify with (hobbies, sports, fashion, cuisine, music, pop culture)

Maintaining an online presence and online credibility is dictated by activity By offering original & fresh content pertaining to consumer interests Factoids, info-graphs, wine & food history, op-ed’s, industry news, wine/cooking techniques, nutrition

We become a lifestyle resource but strictly within our domain

The “intellectualization” of food & wine is that added-value brand

With every post, tweet, blog, we will add value to consumer daily lives No one has yet taken this approach, not strategically This strategy must be genuine in order to create trust – can’t fake it!! Trust is not garnered overnight, we first have to create & build a relationship Once trust is built, the consumer attitude begins to rely on the brand From there, we are in a position to make “calls-to-action” - sales conversions

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5 Social Media Touchpoints

You need

To get

Which brings

Which changes

Which leads to

Activity

Attention

Awareness

Attitudes

Actions

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Value of social for small businessActivity:

85% expect a business to be active online (Vocus) 70% more likely to use business if active on social media (comScore)

Behavior: 80% of behavior is dictated by social & digital interactions (Gartner) 40% find out about new brands from social networks (Adweek, 3/2/2015)

Actions: 80% rely on family & friends to make decisions (Adweek, 3-2-2015) 72% trust online reviews (Search Engine Land)

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Social Media Overview

Video marketing

Mobile Marketing

Google Places

Local Search Directories

PR

Social Media Marketing

Article Marketing

Blogging

SonomaWebsite

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Digital & Social Media Goals Website

Is no longer a doormat of static information (location, store hours, menu, specials) It is a dynamic tool where information is gathered, cataloged and displayed for easy access All social media posts MUST link back to the website Social media posts should never tell the full story; post only headlines

We want the reader to visit the website and read the full blog/article/photo/video there Make visitors want to know more, want to be involved RESULT: increase web traffic, unique & returning visitors, webpage duration, SONOMA subscribers Is a resource web, collecting as much data in order to develop future marketing strategies Integrate digital applications that locate, monitor, track, and evaluate website visitors

This will help us generate leads, score visitors, convert visitors to consumers to customers

Social Media Increase brand awareness (#sonomadc) Increase followers (audience) Create engagement

Increase likes & retweets Increase shares and reposts

Create “calls-to-action”

“If you can’t measure it, you don’t understand it. If you don’t understand it, you can’t improve it”

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Monetizing Social Media

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Monetizing Social Media Social Media locates our target market in an instant

If we’ve identified our demographic, we know how to communicate

We post relevant content and slowly build online credibility & trust

Marketing Automation Software(MAS) track online behavior Generates lead scores based on visitor activity

Engagement turns a “visitor” into a “consumer” (of website info)

Implement “calls-to-action” and start promotion cycle

Beginning the process of converting a “consumer” into a “customer” Purchase of a promotion, event function, merchandise, membership, gift card

Yelp, FB check-in

Conversion rates can be up to 50% of consumers depending on: Strength of lead scoring & tracking ability

Type of promotion cycle & value proposition

Level of trust

Timing

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Concierge Association (WACA) Sponsor events: Yelp, Law ass’c, Accounting ass’c, Brokers ass’c Be part of DC Cool circuit Destination DC

Manage the Convention Center Publish annual tourism trends & tourist brochures

Belong to Congressional blogs, Lobbyist blogs, staffer blogs Figure out who makes packets for incoming Congressmen and

staffers arriving to DC Position the restaurant to be a place for networking

“The who’s who come here” “Power Happy Hour”

Belong to Organizations and Ass’c

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SONOMA

Charity & Cross-

Promotions

Social Media & Website Engageme

nt

Tourism Program

In-restaurantExperience

Loyalty/Local

ProgramsSocial

Events

Satellite Events & Catering

Merchandising

Multi-channel Revenue Streams

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Multi-channel Revenue StreamsA tandem of these revenue streams will be working at all times

Exposure = Revenue Stream – anything done for visibility must have financial return

Website & Social Media Continuous info stream for followers, leading to website visits and eventual conversions

Tourism Program – Develop a strategy that makes SONOMA a destination restaurant

Loyalty Program – Maintenance and retention program for revisits, “SONOMA EXPERIENCE”

Satellite Events & Catering – Showcase our brand OUTSIDE of the restaurant

Charity and Cross-promotions – Cultivate partnerships increasing reach of influence

Residential Events – Be creative!!!

Folgers Theater, Library of Congress, Church groups, cross-promotions, outdoor events, etc.

Social Events – Offer a variety of activities that bring awareness & traffic to the restaurant

Tastings, classes, painting, book club, chess, tango classes, speed dating, power H-Hour, etc.

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“ I know that half the money I spend on advertising is wasted, and the trouble is I don’t know which half”

-John Wanamaker

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Marketing Automation Solutions(MAS) Businesses now know precisely which marketing/promotional efforts have success

what should we repeat; what should we discard; what got the best response?

MAS track which posts/emails triggered a reaction in real-time Once a post, a tweet, an email is sent we know the effect & can track the response

MAS can also create & schedule content-rich posts & email drips

An annual budget is allocated in the hopes that sales improve over the previous year’s efforts With the current marketing automation solutions, the guesswork is taken out

Diagnose – Real-time results of what works.

Prioritize – Won’t repeat failures. Focus on successes while creating new strategies

Begin the process of converting an average web browser into a loyal customer.

Evaluate – Track every dollar spent on marketing, advertising, PR and promotions

However, the challenge is not yet complete. Once we have made the conversion, we need to retain that customer, keep him happy.

These same customer acquisition techniques in MAS also serve as customer retention tools

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The SONOMA Experience What I’m trying to do is to be able to track a customer

From reservation to return visit – retention and maintain engagement Reserves through Open table or by phone or through website

If he has a loyalty number, he includes it Reservation should ask if patron is a first-timer

Patron comes in. We know his name. We know if 1st visit or revisit We sit him down, mark his table number & mark his seat number Host tells Server who made the reservation and the guest’s name Did he come in with family or friends (maybe too intrusive)

He finishes his food and pays the tab We have a record of what he ate/ordered

We start to catalog his food & wine preferences We send a “Thank you” email a day or two later

We offer him a promo-code that only he can send out to the friends or family he dined with that night

We politely ask for his feedback and if he would like to join our Loyalty program Incentivize to write a review (on YELP) ??? Or have a YELP button visible We note what type of wine he drank and send him a text or special event invite when we

will be showcasing similar wines

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Merchandising & Special offers Exclusive only for Loyalty members during

special occasions Xmas Valentines Mother’s Day SONOMA Anniversary Halloween Recipe book

Pickling jars

Jams & Pork Rillet jars

Aromatics – clove balls

Complementary wine app

Infused oilsSeasonal spice rack

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Loyalty Programs & Social EventsWith emails & texts, we can invite and update Sonoma functions quickly and get faster responses and feedback.

1st Large Customer Acquisition Initiative A contest that encourages those interested to sign up online Grand Prize – Free glass of wine, every day, for one year!! 2nd prize – Chef cooks a dinner for 6 at your home 3rd prize – A cooking class at the restaurant with friends & wine Intention

to grab everyone’s attention with a MEGA broadcast Speaking to those familiar with Sonoma as well as to those

who’ve never heard of it Those familiar will be incentivized to enter their friends If their friend win, they also win Everyone needs to enter through the website. We get:

Name, email, phone, DOB Creating a massive databade

Result Those who enter know and like SONOMA Those who enter have contemplated coming to SONOMA

everyday for a year if they win the contest No one wants to drink alone: If a friend entered you, they

win as well (this will bring a daily following) No one stays for one glass of wine – absorbs some cost Bottom line, we have created and identified our biggest fans

and largest advocate group for the restaurant Re-energizing our current customer base

Show our appreciation by offering: Loyalty Program – an empowerment program

10-15% off Specialty Days (slower week days) Wine Club

“be the first to try our new wines” Offer a wine log to check off varietals Create an online discussion forum to exchange ideas

Offer Birthday Dinners – Chef-inspired in the PDR Invite-only social gatherings

New wine tastings New menu item tastings

Themed events Classes on Wine

Invite the public as well Classes on recipes and

cooking select public invites

Exclusive High-End evening ($200/person) Sonoma’s B-day New Years Eve Include Valet Parking.

Mystery dinner theater staff dressed as characters

Jazz night - Belly dancing/ Arabian Nights Mardi Gras Art Show/Expo Silent Auctions for charity “Paint & Sip”

Sat night event- reservation only) Singer/songwriter nights (find artists)

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Budget vs ROI $10K per month for all project goals

Social Media activity & applications Website redesign and maintenance Salary

3-month project Goal: Website functionality Increase Social Media followers to 3,000 Increase covers & sales per month

6-month project Goal: Reach 500 new covers per month Reach $20K in new revenue per month

at $40/cover Reach 20-25% increase in gross sales

12-month project Goal: Maintain $20K in new revenue Reach 750 new covers per month

24-month project Goal: Increase check avg to $50/cover 1000 new covers = $50K/month increase Reach 50% increase in gross sales

3-month

6-month

12-month

2-years

10 10 10 10

$10K

$20K

$30K

$50K

Budget New Covers Sales per month

I calculated that SONOMA’s monthly revenue is between $80K-$100K per month A restaurant should be spending minimum 10-15% gross sales on marketing to reach full capacity

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What You’re Getting From Me Branding

Positioning – who is SONOMA and where does it stand in the marketplace Increasing brand awareness – being memorable & unique Solidifying Brand Credibility – ability to deliver on the promise

Strategic Services Identifying target demographics Strategic Planning – understanding habits and trends of the consumer Market Analysis & Social Forecasting

Looking beyond trends Identifying behavior and social forces that affect and drive change

Digital Marketing Navigating and exploiting web-based resources

Social Media Marketing PR support

Direct PR toward relevant media outlets Advertising and promotions

Execute creative concepts based on strategy developed Ability to track & measure it ALL!!!

Business Development Creating new revenue streams

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Stanton & Greene Ideation Who is Stanton? – US Sec of War during Civil War Who is Greene? – Maj Gen in the American Revolutionary War Concept: to highlight the 1930’s & 40’s cocktails and the era

Speak-easy vibe Post-Prohibition Use and incorporate spirits of that time into cocktails

Bourbon, gin, rye, absinthe, champagne, whisky The use of the name implies an acknowledgement of history, a nod to the neighborhood

There is a Stanton Park with a statue of Greene – military connotations Resurrect a bit of history -> history should be the foundation of all the drinks/cocktails

History should have something to do with every aspect of the establishment Convert S&G into a house full of old secrets and gov’t subplots “John Wilkes Boothe got drunk here before he assassinated Lincoln” Every cocktail and food item should have a story behind it

Paying homage to the great boozers of the 30’s and 40’s Politicians, gangsters, Hollywood, poets and writers American, English, French, Irish, Black

Create a mystique behind each cocktail “betty davis” used to like Gin and lemon juice with cherries, Sen. “Soforth” drank whisky and a raw egg every morning FDR drank plantation rum with his cinnamon tea On submarines you couldn’t bring aboard liquor so they replaced rubbing alcohol with vodka

A nod to the fashion – moustaches, hats, pocket squares, pin ties, neck ties, wingtips A nod to the movies – The Public Enemy, Wizard of Oz, Mr. Smith Goes to Washington, King Kong, Hell’s Angels, Scarface A nod to the music – jazz and big bands, Cab Calloway, Count Basie, Duke Ellington, “jungle music” Boast that we have a “library” that the Library of Congress envies. Response: “A library of what??” Stamps, motorcycles, cars, coins, See the world through a bourbon drinker’s eye, or POV

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What I can do to help S&G Identify, locate & attract a core demographic

expand our reach and visibility Increase awareness in the neighborhood and within demographic Help to find activities for the Lounge

Trivia night, Red Ribbon, reverse Happy Hour (12pm-2am) Create, organize and execute ideas and events Enter the Nightclub & Bar Security (bouncers) Network

All you need to do is hire one popular bouncer, have him promote the space - people actually come Enter a network of Associations and organizations that are looking for event space Magazine and media company meetings for promotional parties Get more involved in the private event industry and circuit Foster/Nurture and retain new customers

Turn customers into advocates Increase frequency to S&G through fun activities Develop growing & continuing interest – by staying relevant!!How: Kick-ass social media strategy that expresses personality of S&G Drive all traffic to the website. Create a media page for “selfies”, “photobombs”

– not sure that’s the vibe/energy we want here (need to do a S&G Brand Analysis) Create a page – “About Last Night…”

Create a blog and later….. a video diary Creating a loyalty Program – with the focus on rotating specialty spirits of limited supply Offering Incentives for reserving on groups of 10 for Lounge Always stay in touch with the customer – texts, vines, live stream (mobile marketing)