Buy wine online at www.nakedwines.com. Next day delivery is standard. Or attend our wine tastings, for free at www.nakedwines.com/tastings

Naked wines innovation in social media

• There is only one thing wrong with wine • Very little of the money we spend on wine, pays for the wine• Because 1/3 of the cost of wine in the UK is marketing• Naked Wines’ innovation was to use social media to create a

virtuous circle where– Less money is spent on marketing

– So more money can be spent on wine

– So the wine tastes better

– So people buy it anyway, without the marketing

• Wine drinkers are happy – they get better wine for less money• Wine makers are happy – they do what they love and get paid a fair

price• And our shareholders are happy, because the model makes money

The virtuous circle – how social media works naked

Customers can see whether a wine is any good before they buy it

Customers can get to know the winemaker – and whether they trust

them or not

If the customer likes the wine and trusts the winemaker they can

sponsor them

So the winemaker can spend their time making

good wine

Step 1 – wine drinkers can see whether a wine is any good before they buy it - Customers can see whether wines are above or below average in quality and price - They can see whether this wine will suit their personal taste or not (based on their ratings, prior purchases and preferences - and they can see who made the wine

Step 2 – wine drinkers can get to know the winemaker - customers can meet and speak to the winemaker online - keen customers can sponsor a winemaker - super-keen customers can hold tastings for their winemaker

And finally, now the customer knows the wines are good, that they will like them and having chatted to the winemaker directly... - they can choose to sponsor them by paying £5 a month - so the winemaker does not need to waste time money selling to them - so the winemaker can refund the 33% usually wasted on marketing

For the winemaker...we are their shop in the UK

They can see sales, stock and weeks left

They can see how many customers are sponsoring them...and therefore how many cases they need to make

How much money sponsors have paid in...and how much there is still to spend

And they can contact their customers directly by posting on their wall

And finally, social media can turn into real socialising! Customers who support a winemaker get free wine to taste with their friends and other customers – so we can get more of both!

And in case you’re wondering...it does work!

In the 11 months since we launched...• 40,070 new customers have joined us• 14,373 ratings have been posted• 13,110 customers are supporting a winemaker• 9.625 customers have completed their profiles so we can do

targeted recommendations• 496 people have joined 53 groups to chat about their wine special

interest• And 107 customers have come on our wine buying trips – to make

sure we get the right stuff!