May 21, 2019 / News

Wine and Viticulture

Marketing Considerations for Wineries

The most consistent obstacle that the wine industry has faced in the last few decades has been change. 

One of the most significant changes to effect the industry has been consumer habits and expectations. Selling to a continually evolving customer base, in a hugely competitive industry, over ever expanding marketing platforms, has left more than few wine makers baffled. With marketing being such a diverse and dynamic component of business in the digital age we have highlighted some key trends to consider for the next 12 months.

Customer-centric is Key

The single most important part of marketing in modern times is to focus solely on your customer. This means targeting a select niche, or segment of the market that really resonates with your brand and product, and most importantly it means talking their language. Talking with your customers on a personal level and providing them with products and information that meet these personal needs is essential to your marketing strategy. As consumers become increasingly driven to emotional purchases, the wine industry finds itself in a favourable position where they can capitalise on the experiential nature of their products and expand on this to deliver inspirational brand stories and customer journey’s that resonate with their consumer’s personal interactions with their products; and nurture the relationship customers have with their brand.

It is now widely accepted that mass-marketing does not work as effectively with younger markets (Millennials and Gen Z), and as existing customers also become increasingly brand and product savvy, it is important that your customer target is focused and aligned with your brand values. This includes how you are communicating with your customers. If your customers are consuming more video than they are reading (which most now are) there is little point in you expending resources on written PR pieces. This same principle applies to the mediums and platforms you reach customers on. Work out where your customers are or want to be; are they finding your website, joining online wine communities, or are they interested in tasting nights? Listen to your market and take what they are saying on board. 

Data is the New Gold

In today’s digital era listening to your clients no longer relates to simply physically talking to them; listening to your data is just as important to your sales. Your company’s CRM and digital analytics will be your most useful asset in relation to any marketing campaigns you run. You will no doubt have heard the saying “data is the most valuable commodity”, this is not an exaggeration. With Direct To Consumers (DTC)  accounting for 7% of all industry wine sales during the last financial year¹, and with 60 percent of wineries having a wine club, it is important for wineries to have a good understanding of their direct customer base. Analysis of your customers data and your digital platforms can provide you with information ranging from what wines people want to buy in Summer down to which city in Australia prefers Shiraz over Merlot.

According to IBISWorld’s latest report, there were $489million worth of sales made during the 2017-18 financial year within the Online Beer Wine and Liquor Industry, up 15.8% from the previous financial year²; with wine accounting for 51.55% of online liquor sales. Based on the growth levels of online liquor sales, and with current online sales only accounting for 8% of wineries’ DTC sales³, it stands to reason that there is potential for wineries to significantly increase their online sales performance. Effective analysis of your data can help you gain insights in to customer behaviour on your website, which will assist you in optimising your customer’s experience online and build more effective sales funnels.

Brand Loyalty is a Two-way Street

Being customer-centric also helps you to build your brand loyalty, which is essential for the longevity of your brand. Increasingly brand loyalty is becoming predicated on how a customer feels or engages with your brand versus the physical benefits of your product. Therefore, no matter how many wine awards you win or how beautiful your bottle labelling is, if a customer leaves your cellar door and does not feel good about the experience they are unlikely to return. As 90% of wineries in Australia have a cellar door⁴ and due to the rise in DTC sales, wineries should be looking to invest in cellar door experiences.

60% of Australian’s now use the internet more than five times a day⁵. As customers increasingly spend time online, customer experience has extended to interactions via digital platforms such as your website, email and social media. It is important that your customers have positive interactions with you across all platforms such that you are almost creating a digital community for your brand. Whilst you no doubt already have a customer loyalty program in place for your cellar door, consider expanding your offering to encompass an online presence. Think of ways you can differentiate online memberships from industry juggernauts like Dan Murphy’s and refer to your customer data when developing your brand loyalty strategy.

Be Digital

Digital marketing is no longer a medium that can be ignored by any business. No matter your size or market share, customers expect you to have a digital presence. A strong digital strategy should also include interacting with your customers rather than simply talking at them. Social media is a great way to interact with people, this includes responding to comments and engaging with customers and suppliers.

Digital marketing has also become somewhat more complicated in the past decade, and if you aren’t fluent it is probably worthwhile investing in someone that is, rather than investing your time and resources into trying to understand it.  But here are some quick tips from us for 2019:

• start by optimising your website – ensure it is simple and easy to use, 
• choose social platforms that work for your brand, 
• make sure your content is interesting and authentic, 
• create a content plan and make sure it is varied, 
• use video – people love it,
• keep your database up-to-date and analyse the information to get results,
• if you have a big database and your analytics are set-up contemplate automation,
• consider using influencers who reach your targets to breach new markets,
• and above all don’t over-extend yourself. You are better off doing a couple of digital platforms well then many platforms poorly.

The International Market

Aside from the general complexities associated with marketing these days, there has also been a significant change to who Australian wineries are selling to, namely the growing International market. According to the Wine Australia Export Report for 2018, 63% of all wine produced in Australia is exported. This essentially means that wineries are having to focus a significant amount of their marketing energies on overseas markets, which involves more research and resources than is necessary for domestic marketing. However, exporting is not something that can be ignored as the Australian market is too competitive for wineries to rely on our small domestic market. Make sure that your marketing strategy includes an offshore component, research it heavily before making a commitment, and make sure you are choosing the right market for your products.

If you’re interested in discussing your brand’s options for this year, please get in contact with Marie Skrodzki or your Nexia Edwards Marshall Advisor.

1 - Australian Government, Cellar door and DTC survey report 2018 (published 29 Oct 2018)

2 - IBISWorld, Online Beer Wine and Liquor Sales in Australia Industry Report 2019

3 - Australian Government, Cellar door and DTC survey report 2018 (published 29 Oct 2018)

4 - Australian Government, Cellar door and DTC survey report 2018 (published 29 Oct 2018)

5 -Yellow Social Media Report 2018