What is the Role of Marketing in a Wine Shortage?
The world is headed for the worst wine shortfall of the last fifty years. A report from Morgan Stanley Research has many turning to alcohol to alleviate the stress of what was reported. According to the report, glasses of wine are soon to be half-filled.
A combination of factors is contributing to what will be dryer days. First off is production. It peaked in 2004 and has been declining ever since. In that year there was an oversupply of 600,000 cases. The Morgan Stanley report claims there was a shortage of 300,000 cases in 2012.
Next is rising demand and it is coming from all quarters. Nations long known for wine imbibing are imbibing more per capita. Then you have China. Analysts say the Chinese consume close to a billion bottles a year. In fact, Asian tourists will buy in bulk to bring vino back home and sell on the black market. To put this in context, Americans and France each drink 12% of the global supply while China has quadrupled its consumption in the past five years and that shows no signs of abating.
Bad weather in 2012 and overall poor yields are also to blame. Most surprising in the reports is the shrinkage in the number of vineyards. If one were to believe Hollywood movies, bad novels and retirement advertisements, vineyards are as ubiquitous as Starbucks.
Experts believe the insufficient supply will be felt primarily in the finer wines. This is where consumers are currently migrating so prices are naturally expected to rise.
What will be interesting is how wine producers choose to market themselves in the coming years. Will they sit back and let supply and demand take its course? Or will they use price as a differentiator and brand builder? The short-term will no doubt deliver handsome profits but wine is a long-term game and consumers have decent memories.
Dig into the October issue. Over 40 stories and more covering branding, marketing & advertising.
What Digital Agency Clients, Staff and Leaders Say in Private
Digital agencies enjoy a reputation of being cool, cutting-edge and creative. They even have a bit of a bad-boy persona because they talk about challenging the status quo. Their offices are hip and their employees are hipsters. They are positioned as the future of marketing and advertising.
Read the article in Advertising Age.
It is too easy to pick on a new logo. Everyone has a subjective opinion that is largely reactionary and often knee-jerk in condemnation. Objective opinions are dry and boring…outside of graphic designers not many people care about precise kerning, bevels and pantones. Having contributed to new logos, or more dangerously updates of existing ones, I have been at the epicentre of criticism.
The socialization and acceptance of logos take time. They are not an overnight affair. One is highly successful if 51% of the people who see a new logo actually like it at the outset. Time must be given so the logo is imbued with meaning and can be associated with tangible results in the business. Branding is long-term strategic game not a press release announcing a new look.
So instead of simply attacking the logo design let me share my opinion regarding the whole Yahoo! program behind it. This is what worked and didn’t work…
30 Days of Change
This worked because the company put out a new logo every day to build excitement and stay in the news. It didn’t work because we all grew bored three days in.
This worked because Marissa Mayer was hands on. It didn’t work because the change doesn’t go far enough to represent the strategic changes she is attempting to make in the business.
This worked because it opened up the debate on whether branding and marketing can be done within a company. It didn’t work because the objectivity a third party can provide is often invaluable.
What the !
The updated logo should reflect a change in strategy. At best, it is cleaner graphic update. The company would have got more attention if they dropped the juvenile “!” as part of this effort. This was the biggest missed opportunity graphically.
You know, now that I think of it maybe Marissa should have changed the company name. Yahoo! is so 2001, so Pets.com. This is how the company describes itself…”Yahoo! is focused on making the world’s daily habits inspiring and entertaining. By creating highly personalized experiences for our users, we keep people connected to what matters most to them, across devices and around the world. In turn, we create value for advertisers by connecting them with the audiences that build their businesses.”
That is an awesome brief for coining a new name. A name that signals a change in business as usual followed by a logo that communicates the new direction. Such a move would have ensured a different result from the one Yahoo! has now … namely a logo that’s embarassed of its name.
“It is one of the tasks of a leader to ensure the continuous renewal of systems over which they provide.” John W. Gardner
Brands are not static. They are constantly evaluated and re-interpreted by customers. It is a challenge to remain relevant and different, yet that is the point of branding. Unfortunately, many brands either become stagnant or confuse real substantive and competitive change with cosmetic modification.
There is a reason that the same brands are mentioned at every marketing conference and why those brands top lists of being the ‘best’. They have made branding a priority because they understand and manage the brand as a tangible economic asset. Often achieving freshness, difference and relevance requires objective expertise. Companies and their people can get caught up in the day-to-day and need help to evaluate and change the course of their branding.
Many marketing businesses and consultants offer audits, workshops, and plans. Brand audits are useful tools to help articulate where you are today. Workshops help generate ideas and gain buy-in. Communication plans provide a roadmap to capture opportunities. Precious few consultants offer the activities and benefits of all three in a thorough and pragmatic service.
The Brand Acceleration Program from Swystun Communications is focused and intensive. It challenges competing offers that promise reinvigoration of your brand in two days, which is so highly unrealistic as to be laughable. As well, it acknowledges that you do not have the time, inclination or funds to spend months addressing your brand. This program is offered over fifteen days either consecutive or spread out depending on your needs.
Read more and get the brochure.