The Marketing strategy

Defining it for the Povardardski/Vardar River Valley

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Developing Geographical Indications in Macedonias wine sector

Skopje, 9 July 2013

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

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Summary How marketing

a GI product?

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See last PPT presentation and

FAO guide chapters 3.2 and 3.3

http://www.fao.org/docrep/017/i1760sr/i1760sr.pdf

http://www.fao.org/docrep/017/i1760sr/i1760sr.pdf

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

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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:

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

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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)

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Practice

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Practice / SWOT analysis

p. 113 FAO guide

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Practice / SWOT analysis

Issues to be solved?

p. 113 FAO guide

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Practice / segmentation, targeting and positioning

p. 113 FAO guide

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)

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Marketing mix / Product

Characteristics of the product

The brand of the firm and the GI

Packaging and labeling

Labeling: visual identity and information about

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 non-

expert consumers;

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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...

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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....

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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?

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Elaborating the strategic

marketing plan

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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?

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What you need to analyze before

what is your chosen target market (segmentation,

targeting, positioning)

how youre different from competitors

how you will achieve your goals

The collective dimension (the GI marketing plan by

the GI association and its members)

The individual one (individual brand marketing plan)

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What you need to distinguish

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...

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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)

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Customer niche, objectives and

competitor review

Appellation definition and

positioning

Major issue 1

Product tasks

Place tasks

Price tasks

Promotion tasks

etc ....

ex: lack of awareness or consideration,

low prices versus high costs, poor

international sales...

Source: B. McGechan

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:

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what select agency for new design

when

how

responsibility

budget

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:

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what - visit the restaurants in each cities listed

- Prepare key product info ...

when

how

responsibility

budget

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:

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what Price review

when

how

responsibility

budget

Examples for the segment inspiring businessman Promotion

internet marketing:

website, blog, wine club

advertising (google adwords, facebook, twitter, linkedln...)

email marketing

youtube channel

cellar door in relation with high quality

media interviews

the story (that would interest a journalist)

action plan:

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what Write a media kit with professional photos write a media strategy

when

how

responsibility

budget

Examples for th