The Wine Direct Blog

For the latest in Direct-to-Consumer sales.  Featuring posts on compliance, direct sales tips and trends in the wine industry.

  Subscribe to our Blog

WineDirect Admin
 
December 19, 2006 | WineDirect Admin

The wonderful world of sales!

This year I decided to step outside my comfort zone to see what the online world had to offer. In all honesty, I was very impressed by what I found. Every site I went to said SALE, SALE, SALE! and this was two weeks before Christmas! Everywhere I turned there was FREE SHIPPING, 60% OFF, BUY 1 Get 1 Free! I thought I was dreaming, but you really can save money when you purchase your gifts online. I know that I will never stop going out and kicking off the Christmas season with shopping downtown, but I do believe I will think twice about those larger purchases. I know now that I can make the same purchase, at a discount, online - and have it shipped anywhere, in time for the holidays.

This really started to make me think, if I’m getting these great deals on merchandise, I’m sure that I will be able to get some great deals on wine for the holidays. So I grabbed my hot chocolate, turned on the computer, lit the fire and went to some of my favorite wineries’ sites. As I was waiting for the site to appear I was imaging the great holiday sales and gifts that I could purchase as gifts and for my family. But to my dismay, this was not the case. Most of these sites had not changed at all. There was nothing that made me think about Christmas, nor purchasing anything for those that I loved. I wanted to be told what to buy and why, and instead I had to search for the wine I already knew. Eventually I just left - and with a true feeling of Bah Humbug!

This little life lesson left me realizing how much we are driven, as buyers, by incentives. During the holidays, people want to spend money. For any product, it is the producer’s job to capitalize on this time of year. To make the consumer feel that they are being gifted when they spend money. Send them a little something extra, it’s really not free, but it’s that added value that earns you repeat business. I urge every business to take note of who is selling this holiday season and why. Use their good ideas and make them your own, Valentine’s Day is just around the corner!

Time Posted: Dec 19, 2006 at 2:15 PM
Permalink Permalink
Comments Be the first to comment on this post
Pin It
Email
WineDirect Admin
 
December 19, 2006 | WineDirect Admin

Lessons Learned from the Holiday Season

  1. Plan ahead - Sure, we all know we need to do this, but it bears repeating. What kinds of incentives will you offer - discounts, free shipping, etc.? Will you be opening the library to offer some special gems for the holidays? Are you going to do anything special for wine club members? Will you be offering gift packages? What are the shipping deadlines for the holidays? Jot ideas down throughout the year as you think of them so it’s not so overwhelming when November rolls around.
  2. Consider adding non-wine items to your online store - Wine openers, glassware, decanters, chocolates and gift boxes are a few simple items you can stock in your tasting room and sell through your website year round! Create a few pre-built packages, and make sure to let your clients know they can also “build their own”. Be sure to place orders with your vendors well in advance of the holidays to ensure you’ll have enough stock on hand.
  3. Test market - Ask your friends and family what kinds of wine gifts they’d be most likely to buy - wine only, wine and chocolates, wine and stemware, etc. Create an email blast about your gift packages and send it in advance of the holidays to those same friends and family and ask for feedback.
  4. Don’t be afraid to advertise - We all receive many emails each day, especially during the holidays, with incentives and reminders to buy - and they work! Let your customers know you can help them with their holiday shopping and remind them how easy it is to let you do the packing and shipping for them. Remind them how well your wines go with holiday fare and what great gifts they make for the holiday parties your customers are attending.
  5. Spruce up your site for the holidays - We all know that the appropriate use imagery can make a world of difference in consumer buying behavior. Invoke the spirit of the holidays by adding winter-themed images to your site and email blasts - wreaths, vineyards in snow, festive images with wine (Santa climbing into a wine bottle) - these can add a nice touch and keep your site looking fresh and interesting. Adding holiday recipes and wine pairings can also invoke the spirit and stimulate purchases!

One of my clients hadn’t given too much thought to holiday gifting by mid-November and needed help, so we brainstormed a few ideas for gift packages. She put a few items together and had them photographed, we built the packages with fun and interesting descriptions, posted them to her wine shop and sent an email to her customers. Since sending the email, she’s had 26 online orders totaling $2700 for her gift packages! It doesn’t take much - just a few simple items and the results can be fantastic!

As the holiday season comes to a close, and you’re enjoying a glass of wine by the fire, jot some ideas down for Valentine’s Day, Easter, Mother’s Day and Father’s Day. Be creative with your gift ideas, get the word out, and watch your sales grow!

Happy Holidays to all, and a very Prosperous New Year!
 

Time Posted: Dec 19, 2006 at 2:09 PM
Permalink Permalink
Comments Be the first to comment on this post
Pin It
Email
WineDirect Admin
 
December 17, 2006 | WineDirect Admin

On Truck Commercials, Football and Our Direct-to-Trade Initiative

We’d like to think that we’ve worked on our Direct-to-Trade program until we can’t get it wrong.

Certainly, the plaudits from the Internet community seem to corroborate that notion. In addition to some excellent mainstream press, check out some of the wine forums online and the feedback has been a mixture of, “It’s about time” to “Darn, what a good idea” to “Anything that allows small wineries access to my city is great.”

Spirited debate has also taken place in these forums around the three-tier system, as well. In many states, we choose to partner with small, boutique distrbutors that share our sensibility.

Inertia isn’t looking to undo the system in place with large distributors, it’s actually doing just fine undoing itself. Google “Costco + Washington + Wine” for additional information on what the #1 retailer of wine in the country is trying to accomplish.

On the other hand, Inertia is interested in ensuring that small wineries, many of our customers, have access to markets that were previously unavailable to them and that they have the opportunity to do so in a manner that allows them to retain margin to grow their business. If enough wineries grow their business the industry grows and if the industry grows, well, a rising tide raises all ships.

Really, it doesn’t take a doctor to figure out our program, but we’re pleased nonetheless that Dr. Stephen Reiss from the fine blog Wine Whines sees the value in what we are doing. Check out his post if you get a moment.

A little closer to home, I personally wrote on the direct-to-trade initiative on my blog, Good Grape, and our public relations counsel, Tom Wark, wrote about it on his blog, Fermentation.

As neatly summed up as the GMC maxim might be as it kicks off every football Sunday, we realize that our own work is something akin to a football game.

We’re developing state plans, state by state, and building on initial positive momentum–metaphorical first down after first down as we march down the field.

We’ll use this forum to periodically note progress as we roll out the Direct-to-Trade pilot program. We appreciate the support of our customers and the avalanche of interest that has been generated. We’re professionals here, helping other seasoned pros at our winery partners. If there’s anything we can do to help you, please let us know. Otherwise, we’ll continue to work till we can’t get it wrong.
 

Time Posted: Dec 17, 2006 at 2:34 PM
Permalink Permalink
Comments Be the first to comment on this post
Pin It
Email
WineDirect Admin
 
December 14, 2006 | WineDirect Admin

Vertical Integration of Consumer Marketing

With the exception of the bubbly producers who will be going strong until the day after new year’s when their wines can be found in the supermarket at drastically reduced prices, most of us will be relaxing for the remainder of the holiday season. The memories of frantically racing around assembling holiday gift baskets and fulfilling online wine orders will be a distant memory very soon. So what did we learn from this holiday season?

I would hazard to guess that every one of us is thinking the same thing…start holiday planning earlier next year! Well, I have news for you…or at least some of you as this may not be news to many of you who wear many hats in your organization. In the wholesale channel, many marketing teams throughout the wine industry begin holiday planning before the end of Q1. In some other industries, holiday planning is often times complete by January! If this is shocking then this week’s BLOG topic on “Vertical Integration of Consumer Marketing” will be a valuable springboard for discussions in your organization’s DIRECT sales planning next year.

Sadly, in the world of DIRECT, often times we are left in the dark when it comes to brand planning on the “other side of the fence”. This lack of communication results in an oversight of the most valuable consumer group for your winery…your very own database of customers & wine club members. One of the most obvious reasons for this is that the resources of most wine companies are focused on managing their distributors. The fact is that this scenario is common across wineries of all shapes and sizes and goes well beyond the holiday season.

Real world example: Your brand marketing team has coordinated a beautiful, full-page ad in one of the top wine publications to coincide with a favorable review of your new vintage (not that there is a direct relationship between advertising and favorable wine scores). They have also worked with a creative services agency to create tasting notes, shelf-talkers, and neckers to distribute to your wholesaler for On and Off premise accounts. In the minds of most brand managers, they achieved their goal…they positioned their brand in a way to maximize exposure to their target consumer. Yep, if their lucky, many of the same people who see that ad will walk right down to the nearest wine shop or restaurant and pick out a bottle of your winery’s finest. But they forgot one small consumer group…your loyal brand ambassadors.

This year, arm yourself with the necessary information (sales growth over previous month/year, growth trends in the DIRECT channel, the lifetime value of each customer/club member in your database) to show your organization the opportunities that they are not capitalizing on. By converting those same people to online customers, and capturing their information in your database, they become a captive audience for future releases, special offerings, winery events, etc… Most importantly, by converting them to wine club members & winery ambassadors they will receive shipments of your wine for years to come (hopefully).

Before I get off my “soap box”, I charge you all with one goal in 2007: take back a piece of the Consumer Marketing pie. Better still…contribute to the Consumer Marketing strategic and tactical meetings BEFORE they reach the final planning stages. This will ensure that the goals of the brand team coincide with the goals you have for growing the DIIRECT channel. And if all goes well, perhaps you will have the resources to bring on some additional help next holiday season to pack those gift boxes.

Merry Christmas (and happy holidays)
& Happy New Year!

Time Posted: Dec 14, 2006 at 2:35 PM
Permalink Permalink
Comments Be the first to comment on this post
Pin It
Email
WineDirect Admin
 
December 13, 2006 | WineDirect Admin

eComm

The ability to shop, review services, communicate, research, and compare prices has opened up the retail markets to more people in more places on earth then ever before in human history, all without leaving your home, auto or office.

Although wineries have more restrictions when it comes to online sales, this is changing and requires the wineries to change as well. In order to survive this not really that “new method” of selling, we must compete and still be able to make a profit.

Competition is not just having your tasting room open longer, marketing via the normal mainstream media, or reducing you prices and increasing your quality, it means making your product available to more people in more cities and states at any time of day! You are no longer competing with the winery down the road, you are now competing with the winery that sells efficiently to anyone of age in any state, any time of day.

Depending on the amount of grey in your hair and your understanding of how to leverage technology, you may not understand this. I may not remember the milkman dropping off fresh milk every morning at my doorstep like my parents may recall, but I do understand the value of eCommerce and the ability to purchase goods online at a reduced cost and having it delivered to my office.

The current generation and ones that follow rely on technology and have no fear of it. They have embraced it and now expect constant information at their fingertips and the ability to shop and compare from a laptop, cell phone or PDA while traveling or waiting for the nest business meeting.

Businesses that understand this and flex their ability to be part of the “digital Silverado Trail” will prosper and those that don’t will compete on a far smaller scale, or not at all.

Here at Inertia Beverage Group, we know how. Do you know why?

Time Posted: Dec 13, 2006 at 2:36 PM
Permalink Permalink
Comments Be the first to comment on this post
Pin It
Email

Search the Blog

Subscribe

by RSS
Recent Posts
Blog Categories
Our Writers