9. Identifying the Product/Brand for Marketing

Question 1

What are the 2 main types of product to be marketed?

Answer 1

BRAND NEW: products launched to fill a perceived gap in the market, ID’d through market research/analysis.

EXISTING: a product which may/may not have been updated.

Question 2

What are the 4 stages of a typical product ‘Life Cycle’?

Answer 2

1. Introduction

2. Growth

3. Maturity / Stabalization

4. Decline

Question 3

What kind of marketing strategies should be implemented during a product’s Introduction and Growth stages?

Answer 3

INTRODUCTION: focus on getting product to market, gaining recognition/reputation and distributing to a few carefully selected channels.

GROWTH: distribution should be inreased to wider scope, aimed at broader target market to encourage growth.

Question 4

What kind of marketing strategies should be implemented during a product’s MATURITY/STABALIZATION and DECLINE stages?

Answer 4

MATURITY/STABALIZATION: highlight differences btw/product and competitors which may have newly entered market.

DECLINE: extend life cycle, improve product, update packaging, reduce price, ID new markets.

Question 5

Using Cloudy Bay as an example, explain the aim (1) of Branding and its effectiveness (3):

Answer 5

AIM: moves wine away from simply being a commodity, highlighting its quality/style to convince customers that its worth paying above the minimum price for.

• *CLOUDY BAY:**
  2016: updated its packaging to a more modern look, but still instantly recognizable.
• e.g. placed next to an mid-priced, unknown producer of Marlborough SB vs premium-priced Cloudy Bay.
• customer may choose CB, even at higher $, because of what it represents vs generic products.

Question 6

What is the CIM definition of the term BRAND?

Answer 6

The set of physical attributes of a product or service, together with the beliefs and expectation surrounding it - a unique combo which the name/logo of the product/service should evoke in the mind of the audience.

Question 7

7 ways a brand can create a positive image in the consumer’s mind:

Answer 7

1. SUBSTANCE

2. CONSUMER TRUST

3. CONSUMER ENGAGEMENT

4. BRAND STORY

5. PRICE PREMIUM

6. LONGEVITY

7. STRONG BRAND NAME

Question 8

Creating a strong brand image; SUBSTANCE.

Answer 8

consistency of quality/style, e.g. NV cuvées of Champagne houses, not marked by vintage variation.

Question 9

Creating a strong image; CONSUMER TRUST.

Answer 9

consumers trust brand’s consistency, will always opt for this brand over cheaper, unbranded alts (even if quality is higher) = brand loyalty, e.g. success of supermarket own-brand wines.

Question 10

Creating a strong brand image; CONSUMER ENGAGEMENT (2).

Answer 10

• brand-consumer relationship is strong, consumer feels like brand’s message is aimed directly at them, creating ‘closeness’.
• Risk of alienating dedicated consumers if any changes are implemented.

Question 11

Creating a strong brand image; BRAND STORY.

Answer 11

a successful brand story can create an emotional attachment btw/the consumer and the brand.

Question 12

Creating a strong brand image; PRICE PREMIUM (2):

Answer 12

• many successful brands command higher $
• many consumers see this as a guarantee of quality.

Question 13

Creating a strong brand image; LONGEVITY.

Answer 13

a number of wine brands overall are newcomers, some have been in existence for a long time, e.g. many Champagne houses, Hardys (1850s), Gallo (1930s), Mondavi (1960s).

Question 14

Creating a strong brand image; STRONG BRAND NAME.

Answer 14

• strong brand name is very important; must be easy to remember and easy to pronounce across many languages.

Question 15

e.g. of Brand Name that demonstrates importance of translation btw/languages (3):

Answer 15

• a brand name might sound prefectly innocent in one language, but may have negative/unwanted connotations in another.
• e.g. ‘Mist’ from St. Tropez (Made In Saint-Tropez).
• ‘Mist’ in German translates to ‘crap’.

Question 16

Examples of brands that have created different names for different markets (3):

Answer 16

e.g. very common for branding in China

Penfolds = Ben Fu
Lafite = La Fei
Casillero del Diablo = Hong Mo Gui

Question 17

eg.s of wine brands that contain references to geographical features (5)?

Why is this a useful strategy?

Answer 17

Cloudy Bay, Blossom Hill, Banrock Station, Felton Road, Terrazas de Los Andes.

Such names give the wine a sense of place, link to agriculture.

Question 18

e.g.s of wine brands that are names of their founder (2)?

Why is this a useful strategy?

Answer 18

Krug, Taylor’s Port.

Links the product to its heritage and endows it with a sense of longevity.

Question 19

Why is trademark registeration important for a brand name?

And e.g. of where this has proven difficult (2)?

Answer 19

• Trademarking the brand name is essentially protecting one’s assets.
  e. g. in China, trademarks are given to the first person/company to file an app vs based on usage.
• this has led to expensive legal battles, e.g. Treasury Wine Estate’s battle to cancel prior registration of the trademark ‘Ben Fu’ (Penfolds) by a person not using it.

Question 20

What demographic is attracted to products w/strong stories?

Answer 20

Many consumers, but especially Millenials (those btw/drinking age and mid-30’s).

Question 21

The Story of Wine: PRODUCER (3)

Answer 21

Producer’s History; producing wine for generations?

If in newer regions, ancestors from older ones and brought vines w/them (e.g. Penfolds)?

Producer = interesting previous career (e.g. Nicolas Joly)?

Question 22

The Story of Wine: Vineyard (4)?

Answer 22

Where are grapes grown?

Single vineyard, with unusual/evocative name (e.g. Sassicaia)?

Topography; steep, rocky, misty?

Other vegetation/animal life, e.g. biodynamics?

Question 23

The Story of Wine: Winemaking (3)?

Answer 23

How is the wine made?

Philosophical; organic, biodynamic, ‘natural’.

Any distinct/ancient processes, or unusual/old equipment?

Question 24

The Story of Wine: Packaging

Answer 24

Story behind name, label / bottle design?

Question 25

What is meant by 'Brand Equity'? How is it calculated?

Answer 25

- generally, the value of the brand to its owner, which includes components such as brand awareness and brand image. - some co's employ consultants to calculate financial value of brand equity as asset on balance sheet.

Question 26

What is meant by the term 'Brand Position'? What 4 categories are commonly used?

Answer 26

- Where a brand 'sits' in the market, in relation to its retail price. 1. VALUE 2. STANDARD 3. PREMIUM 4. SUPER-PREMIUM

Question 27

How does a brand 'land' in its market position (2)? 2 e.g.s of both ends of the spectrum:

Answer 27

- Position is usually set at the product's launch, intended to hit a particular price point. - May need to lower prices if competition is too strong. e. g. Cockburn's Port (Symington Family Estates) has put in work to RAISE its position via updating its brand image, modernizing equipment and introducing new, high-end products. e. g. Concha y Toro (Chile) / Hardys = cheaper end of the market = high-volume sales, but own a # of brands in different market positions.

Question 28

Outline **PRIVATE LABEL** wines (3): 2 e.g.s?

Answer 28

- A wine label exclusively made for and sold by a retailer (even though wine inside may be identical to another product) under their own brand name. - typically found in USA/UK, in supermarkets, deep discounters and larger chains of bars/restaurants. - typically will not display winemaker's name prominently, or at all. e. g Sainsbury's 'Taste the Difference' UK, Costco's 'Kirkland Signature' USA.

Question 29

# Define **LADDER BRAND**: Benefit to the brand?

Answer 29

A brand that sells wine at different 'rungs', usually reflecting lower-to-higher price points and quality levels. The whole product range benefits from the most prestigious expression of the brand, even if it achieves the lowest actual sales.

Question 30

What are the 3 rungs of a **LADDER BRAND**? e. g. of an actual 'Hard Brand' e. g. of a 'Soft Brand'

Answer 30

1. **Accessible**; least expensive, greatest distr., best selling by vol. 2. **Stretch**; affordable but special occasions only. 3. **Aspiration**; most prestigious, most consumers will never purchase due to being above comfortable price limit, but super-premium status casts glow on entire brand. Champagne Pol Roger: * *Accessible:** Pol Roger NV * *Stretch:** Pol Roger Vintage * *Aspirational****:** Pol Roger Cuvée Winston Churchill Burgundy: * *Accessible:** Bourgogne Rouge * *Stretch:** Gevrey-Chambertin * *Aspirational:** Le Chambertin Grand Cru

Question 31

Why do LADDER BRANDS tend to work less effectively with low-involvement consumers (2)?

Answer 31

Few of these consumers, if any, will be aware of the brand's 'aspirational' product(s). - this means the aspirational product's benefit is null, and the opposite effect may occur, whereby the entire brand is associated with the value product, and the aspirational/stretch products viewed as overpriced = unwillingness to "trade up".

Question 32

Difference btw/a 'Hard' and 'Soft' brand? 4 eg's of soft brands?

Answer 32

Hard Brand = actual entity, e.g. Veuve-Clicquot, Cloudy Bay. Soft Brand = any cue used by a consumer to indicate their preference of one product over another. e. g. country/region (Brand Australia, Rioja) e. g. GI (Pouilly-Fumé) e. g. grape variety (Merlot) e. g. wine style (oaky Chardonnay)

Question 33

Why are 'Soft Brands' important for Wine Marketing (3)?

Answer 33

- many wine-producing countries/regions promote themselves this way to create regional identity. - e.g. only wine from a small, specially desingated area in the Loire Valley can be labelled 'Pouilly-Fumé', vs SB from anywhere else. - some producers are too small to afford much marketing, so the promotion of their region/GI/AVA can be very helpful.

Question 34

Define **Luxury Brand:**

Answer 34

No true agreed def, but generally: A brand that sells at super-premium prices which only a few customers can afford, e.g. prestige Champagne, Bordeaux First Growths, cult Napa wines.

Question 35

What are some ways **Luxury Brands** attain their luxury status (6)?

Answer 35

- promotion of real/perceived scarcity (even if this is not truly the case, e.g. Champagne). - promotion of fruit quality / vineyard prestige. - no expenses spared during winemaking. - promotion of rich heritage. - promotion/sponsorship of luxury events, e.g. Wimbledon / Lanson. - placement in upmarket retailers / fine dining restaurants.

Question 36

10 most powerful wine brands according to Wine Intelligence:

Answer 36

1. Yellow tail (AUS) 2. Casillero del Diablo (CI) 3. Gallo Family Vineyards (USA) 4. Jacob's Creek (AUS) 5. Barefoot (USA) 6. Gato Negro (CI) 7. Carlo Rossi (USA) 8. Frontera (CI) 9. JP Chenet (FR) 10. Mouton Cadet (FR)

Question 37

What are the 3 factors that determine a brand's 'strength', according to Wine Intelligence? A few exceptions?

Answer 37

Brand Awareness Reported Brand Purchase Brand Connection (affinity) across global market On individual-market levels, some domestic brands tend to be stronger, e.g. Changyu (China) and Rotkäppchen (Germany).