The Marketing strategy
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1 The Marketing strategy Defining it for the Povardardski/Vardar River Valley 1 Developing Geographical Indications in Macedonia s wine sector Skopje, 9 July 2013
2 Outline 1. Summary on How marketing a GI product? 1. individual and collective marketing 2. strategic and operational marketing 3. the role of the Association 2. Elaboration of the strategic marketing plan 2
3 Summary How marketing a GI product? See last PPT presentation and FAO guide chapters 3.2 and
4 Individual and Collective marketing GI and the related territorial reputation are collective assets. Two levels of marketing: the firm and its brand (individual) the territory and the GI (the collective reputed name): marketing plan to be combined with these two levels individual image has impact on the whole territory image Two steps in defining the marketing plan Strategic marketing, the road map Operational marketing or mix marketing : implementing the strategy 4
5 Strategic marketing 1. Market analysis: the study of consumers motivations, attitudes, perceptions and willingness and ability to pay, competition, market opportunities, possible commercial partnerships, etc. ex : SWOT analysis what is the best niche markets to target? 2. Tools to develop the marketing strategy: 5 Segmentation: dividing a market into categories Targeting : prioritizing Positioning: get the consumer understand the product strategic marketing plan for higher prices, higher margins or higher volumes sold
6 Practice What are the characteristics of the supply chain? What are the characteristics of the markets? Who are the competitors (product, firms)? What market segments can be identified (characteristics and needs of customers?) What segments do you want to target? (your product fit to them) (various ones to fit with the varieties of the appellation wines) 6
7 Practice / SWOT analysis p. 113 FAO guide 7
8 Practice / SWOT analysis Issues to be solved? 8 p. 113 FAO guide
9 Practice / segmentation, targeting and positioning p. 113 FAO guide 9
10 Marketing mix Establishing the means to achieve the objectives in each market selected by combining four operating factors: Product, Price, Place, and Promotion (4Ps, 5 with People) 10
11 Marketing mix / Product Characteristics of the product The brand of the firm and the GI Packaging and labeling Labeling: visual identity and information about 11 product characteristics (composition, nutritional facts, description of how to use the product), specificity related to the GI; e.g. information, on the specificity of the production process and on natural resources used in it, the know-how, the link with the culture of the production area, etc. possible utilization in culinary preparations by nonexpert consumers;
12 Marketing mix / Price decide price for each product, by taking into account the pricing objectives of members, price competition and consumer preferences in order to place the product price between its price floor and price ceiling price is often and indication of quality level for consumers... 12
13 Marketing mix / Place Three main channels : traditional distribution and local direct selling; specialized shops, cellar doors important in wine in relationship with wine tasting and tourism; large-scale distribution; large volume and constant quality innovative distribution; important to develop in wine to take into account new expectations: Internet sells, fair-trade purchasing groups, community-supported agriculture... 13
14 Marketing mix / Promotion To provide information about the specific quality and characteristics of the GI product in order to increase consumer willingness to purchase and pay. role essential of the Association Who is communicating? Towards whom is the communication directed? Who is the recipient? What is communicated? What is the message to be transmitted? How should the communication be achieved? 14
15 Elaborating the strategic marketing plan 15
16 To make a great product a great collective brand : to let people know about the wine in an appealing way... connoisseurs only 2-5 % (or even less) ; a brand is a set of images and experiences in a person's mind how to influence it - people are emotional beings... who are your customers? how make people distinguish your wine from other competitors how to appeal a particular customer in the way that is important to him? to look at the particular occasions people drink wine : drive consumer purchase To highlight a point of difference with competitors? how make the appellation a recognizable distinction sign tell a story : what is your story? 16
17 What you need to analyze before what is your chosen target market (segmentation, targeting, positioning) how you re different from competitors how you will achieve your goals What you need to distinguish The collective dimension (the GI marketing plan by the GI association and its members) The individual one (individual brand marketing plan) 17
18 Strategic marketing plan define long and short term strategies : according to market objectives and based on the potentials, limitations, market characteristics, competitors etc... for a period e.g. 3 year plan by segment segment = why a person buy, who, what, where, how much e.g. : inspiring businessman / knowledgeable professor / creative individualists / partying students / soccer fans / easy going friends / struggling families / responsible oldies (source: B. McGechan, my local winestore website) with a Marketing calendars and responsibilities for each task (activities on market place defined 6 months before launched) and a budget... 18
19 Possible headings Appellation strategy the customer the current perception of the wine objective: the desired positioning, volume, price and margin target Product Place Price Promotion People (= events = place and promotion) Customer niche, objectives and competitor review Appellation definition and positioning Major issue 1 etc... Product tasks Place tasks Price tasks Promotion tasks ex: lack of awareness or consideration, low prices versus high costs, poor international sales Source: B. McGechan
20 Examples for the segment inspiring businessman Product review label and logos review bottle type review opening (screw top or segment needs cork...) packaging (wood case, single case, display etc...) what awards, reviews, rating can be used in the marketing, famous international wine already won? action plan: what when how responsibility budget select agency for new design 20
21 Examples for the segment inspiring businessman Place wine being listed in at least one quarter on best fine restaurants / best premium (wine) bars / boutique wine stores in the following cities:.. (according to volume) stop promotional discounting to supermarkets and stores only volume discounts and reduce it over time direct sells: cellar door and Internet marketing hosts key restaurateurs and bar owners in a visit tour distributors information and training action plan: 21 what when how responsibility budget - visit the restaurants in each cities listed - Prepare key product info...
22 Examples for the segment inspiring businessman Price review top same country / same price-range varietal category leaders in the target cities aims is to be in top 10 in the next few year action plan: what Price review when how responsibility budget 22
23 Examples for the segment inspiring businessman Promotion internet marketing: website, blog, wine club advertising (google adwords, facebook, twitter, linkedln...) marketing youtube channel cellar door in relation with high quality media interviews the story (that would interest a journalist) action plan: 23 what when how responsibility budget Write a media kit with professional photos write a media strategy
24 Examples for the segment inspiring businessman People (place and promotion) events: food and wine festivals, music events... wine tourism charity and donations action plan what Write an event strategy Discuss with local authorities for a wine route when how responsibility budget 24
25 Thank you for your attention www. foodquality-origin.org Emilie Vandecandelaere, FAO
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