Pinot noir anyone?
After Lisa the travel agent, let me introduce you to Phil, the winemaker. Phil lives in Switzerland in Vinzel, a wine region. He is the owner and manager of a small business, called Domaine de la Tuilière, whose main activity is producing wine. It’s a small wine estate and most of the time, Phil is working alone. He gets some help from two employees when necessary and has a fantastic team during the harvest season.
| Cheers! Phil, the owner of the company Domaine de la Tuilière |
Phil is not very confident with a computer. His thing is to
take care of the vine, and he likes to see the transformation from the grape to
juice and then, after several fermentations, to wine. Phil needs to have a
physical location, and not only to produce wine! People like to come to his
cellar, taste the various kind of wine before leaving with a pack of bottles. The
relationship is key for Phil. He needs to be close to his customers.
However, his business is entirely based on him. Phil wears too
many hats! You can be sure that while he
is cleaning a vat, customers will be calling. It is very tough for him to take
care of all the parts of the business. But! (there is always a but), Phil found
some useful and interesting tools thanks to his computer and the digital world.
For a few years, he has a website which, even if there is not a lot of
information, helps him for the company’s visibility.
| Screenshot of the home page of Domaine de la Tuilière |
The website gives some information to the customers on the company,
but also on its products. There is even the possibility to order online via the
page Purchasing Order. Phil is aware that in order to have a successful company, he
must keep focusing on the human touch. And this is the challenge with a
physical location. Without the estate and the “carnotzet” (a place where people
can have a glass of wine), people would not be able to taste wine and to meet
the passionate man behind the bottles produced under the name Domaine de la
Tuilière. If we keep it simple, without Phil, without the place, there is no brand
Domaine de la Tuilière.
“Wine is not like perfume. With perfume, you can smell it
once, and you can be sure that if you buy a new bottle in two years the fragrance
will be the same. It is not the case with wine! Moreover, with wine, like any other “produits
de bouche” (edible product), people want to taste before purchase” Phil said.
Nevertheless, the digitalization of our society offers tons
of opportunities for the organisation. With
the internet, the company can have access to new markets. According to the Federal Statistical Office, in 2017, two-thirds of the population in Switzerland
has made at least one purchase in the last three months (compared to 56% in 2014)!
With the possibility to purchase online, Phil can receive
new orders even when he is on holiday (which doesn’t happen often). It’s a good
start, but unfortunately not enough. Customers are expecting to find a website and
a social media presence. But Phil isn’t born with the internet, and
one problem is that most of his competitors are digitally-active, while he is
not. Moreover, wine is the most frequently searched beverage on the web
according to an article published in the International Journal of Wine Business Research. The same
article mentions a study which found that “75 percent of social media users
admitted that wine-associated SM interactions can influence their purchases and
increase spending on an individual wine purchase.”
Phil can create a Facebook page for Domaine de la Tuilière,
but there is a big challenge here. Phil has no idea what SEO, engagement rate or
geo-targeting mean. He is a winemaker, he likes to be outside, not in front of
a screen! He has the feeling of being left behind, especially when he watched
the following video and saw that internet users could even find wine on Amazon!
My infographic below summarises the situation of the company.
In conclusion, the brand Domaine de la Tuilière doesn’t exist without the physical location. However, an online presence is essential for Phil to stay competitive BUT this takes time, and time is a precious resource for a company with only one employee.
If only Phil knew someone doing a Master in Marketing who
could help him..
Note of the author: After the father, the daughter: If you
want to know more about me, go to my first post where there is a small
game, just click here!
Hi Joanne,
ReplyDeleteGreat post!
I have a personal message for Phil:
“Phil, I hate to break it to you but please get a grip. If you don’t hire a digital marketing specialist (a certain student, perhaps) you might lose your business soon. Personal interaction is important, but younger generations prefer lower prices and convenience.
A lot of them want to order wine online on a user-friendly website and have it delivered for free to their door step:
https://www.totalwine.com
http://www.latreilledor.ch/catalog/
https://www.gazzar-wines.ch/ , etc.
Wine is certainly a social phenomenon, but millennials socialise in their digital world – they take selfies, tweet and Instagram. If you don’t have an active social media account, you are off their radar.
Please take a look at this article. It highlights the importance of digital footprint in the wine business. An interesting read, plenty of statistics: https://www.dee-wine.com/digital-marketing-boosts-direct-wine-sales/
Unlike older generations that value country of origin and producer aspects, millennials opt for wine brands that showcase patterns important to them. They expect individual guidance but in much different form than their seniors: online and via social media. Having 80% using a smartphone at least 2 hours a day they interact on social platforms where word of mouth has a strong influence of purchase decisions.
Have you heard of really successful wine stores that do business online only? You might ask “how can anyone buy wine without tasting?” They can. These days purchasing decisions are made based on reviews. I am not a wine expert at all, so I buy wine based on its price and reviews by someone who knows what’s going on.
If you are still not convinced, I want you to meet Gary who has a fast-growing wine business too, although it is mostly online. By “mostly” I mean people can actually taste the wine he sells.
https://www.tastewineco.com
At Taste Wine Co. users are able to utilize the free app to learn about the wines on offer, and then taste from up to 50 wines available in their tasting machines at the store. This way, much like wine industry professionals or winery visitors, consumers can taste before they buy — ensuring that they will truly love the wine they purchase (and not just drink it because it has a cool label but isn’t really that good).
He has a clever points system. Here is how it works:
“Download our app and we’ll start you off with 100 points. Redeem your points to taste the wine from the machines (15 points for a taste from a bottle that costs $15; 20 points for a taste from a bottle that costs $20, etc). As soon as you taste, the app will prompt you to first rate the wine you tasted – for which you will earn back 10 points — and then review or as we like to tell our customers, ‘comment’ on the wine they just tasted to earn another 20 points. These ratings/reviews are helpful for us and the other customers. And really, it’s become a game. Imagine that… FUN at the wine store!”
Phil, I didn’t mean to scare you but you do need to start sharing your hats with digital marketing professionals. In our day and age, it is simply inevitable”.
Julia Wilson @juliagoesdigital.wordpress.com
References:
Eldor K. (2017), How This Retailer is Disrupting the Wine Industry One Taste at a Time, Shopify, Available at: https://www.shopify.com/retail/how-this-retailer-is-disrupting-the-wine-industry-one-taste-at-a-time
Dee-Wine website, Why Digital Wine Marketing, Available at: https://www.dee-wine.com/digital-marketing-boosts-direct-wine-sales/
Hi Julia,
DeleteThank you so much for your tips! I am sorry for my late answer, but I am starting to create a digital strategy for my father, thank you for your help!
I don't think that he will go to the extreme where his business will be online only, however I think there are already small but effective steps that he can take based on your recommendations and the articles you shared. First ones, create a Facebook page and improve the e-shop!
Best regards,
Joanne
Hi Joanne,
ReplyDeleteLove the post! I think Phil deserves a holiday if you ask me! Somewhere on the beach, enjoying some wine instead of selling it!
Just a small point before I comment! I am in no way a wine expert and rarely drink haha.
Could Phil possibly keep his online presence as mostly referrals? I currently work in a company that thrives off referrals.
For example, if his current customers (those who use social media) tag him on Instagram, Facebook etc, he can offer them a small discount on future purchases. This way he won't have to be super tech savvy as customers would be doing the work for him.
What do you think?
Also, linking to Julia's comment, could Phil potentially share and offer advice via his website regarding which wine to purchases with what meal, season, event etc. For someone (like myself) who has absolutely no idea about wine but may have a fancy meal to go to, this may definitely help. Especially if he recommends his own wine brand. Could help with future purchases.
Let me know what you think.
Jack Willoughby :)
Hi Jack,
DeleteThank you for your comment.
Yes, he deserves a holiday. As a child, it was really hard to see my father working so much. Today it's still the case, but I want to help him more.
I talk to my father about your idea of referrals, and he told me that the problem is that his wines are already not very expensive. Therefore it will be hard for him to cut prices. However, there is each year the "open cellar."
https://www.lacote-tourisme.ch/en/P21619/discover-the-bourru-in-the-vineyard-la-cote
and maybe we can give some vouchers for food on that occasion rather than discounts.
And for the advice on which wine to choose, for sure it's something he needs to develop. On his website, he is already giving some recommendations:
http://www.domainedelatuiliere.ch/index.php?page=our-wines (not translated into English yet)
Thank you for your help!
Best regards,
Joanne