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As
most of you know, I was in Italy earlier this month vacationing
with my family. While we were touring the wine country of Tuscany,
two very interesting marketing stories presented themselves.
Since their implications are so applicable to the issues we face,
I thought I would share them with you today - and share a bit of
the magic of this wonderful country.
Story
One
Once
upon a time, Italian farm workers in the Tuscan region drank simple
Chianti wine with their lunch in the fields and with their dinner
in their homes. Over time, this fruit-of-the-vine was sold
to non-farmers throughout Italy and the world. And it became very
popular.
To
meet the high demand for Chianti wine, Italian producers demanded
more and more grapes and grape juice from each vine. Sadly, but
not surprisingly, over time the quality of the wine, along with
the price point and the demand, began to decline.
Enter
two parties who felt conditions needed to change: smart (and smarting)
winemakers and Italian politicians who noticed a wine-induced blip
in the economy. They decided that "less wine with better taste"
was the only way to change the "cheap and awful Italian wine"
perception in the worldwide market and win back their market
share, sales, and profits. In 1963, this fairytale collaboration
of the public and private sectors established wine standards and
categories.
The
government-instituted standards were made real and visible to buyers
by the addition of a special label to bottles meeting the specific
quality criteria. For Chianti, this certification is a pink, thin
label near the mouth of the bottle.
In
short, by abandoning the "we'll make it up in volume"
approach and instead creating and selling a higher quality product,
Italian Chianti was reborn and the Tuscan wine producers (and politicians)
lived happily ever after.
The
moral of the story for today's U.S. marketers is - be careful which
pricing strategy you choose to go to market with and always
be mindful of product quality.
Story
Two
Not
all that long ago in a beautiful land called Tuscany, winegrowers
had created sales and profits by improving their Chianti wine and
life was good. But things were soon to get EVEN BETTER.....
Not
wanting to rest on their laurels - or grape vines as the case may
be - some Tuscan winemakers started experimenting with blending
together different grapes of the region together to create new and
different tasting wines. They had noticed the worldwide demand,
especially in the large and lucrative US market, for blended wines
and they wanted a piece of the action.
Soon
the market was identified, the product developed and tested, and
life was good, well, almost....
Two
things stood in the way of their success.
1. The very set of wine qualifications that had originally helped
the winemakers improve the quality, sales, and profits of their
Chianti wine was now working against them and their new
fantastic blended wines.
You
see, the Italian wine qualification system did not apply to these
wines because the wine contained a varying percentage of juices
from several different grapes.
2.
The market perception of non-qualified wines made in Italy was
very bad. This perception was based on the pre-1963 Chianti.
What's
a marketer to do? - See below.....
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Info
on Italy Trip:
Since
I arrived in Italy two days after the Pope died, here
are the answers to the top questions I'm asked about
my trip:
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Yes,
we did go to Rome and it was NOT too crowded
to sightsee
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No,
I did NOT wait in line to see the Pope
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Yes,
we did get into the Sistine Chapel (the last day
before they closed it for Conclave)
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No,
we were NOT part of the Pope's funeral
crowd (we were in Florence on that day)
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Yes,
we did get to see St Peter's Square and the Basilica
before we left for home - we even saw the Cardinals
walking around
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If
you'd like to see the vacation photos email me for a
link - Rose1Walter@MosaicMM.com.
Ciao!
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In
short, the Italian wine marketers re-positioned their non-certified
wine by creating a new category. The name they chose for this category
was not only proprietary in that it played off the name of the region,
but it also appealed to the US market (remember, this was the market
they were targeting) with a very American-sounding name. That name?
Super Tuscans! The price range? $20-$200 per bottle. Today millions
of dollars worth are sold annually.
The
winemakers (and drinkers) are indeed living happily ever after.
What
does this story teach us?
-
Be
aware of market trends
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Target
lucrative developing segments
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Appeal
to your segment on as many levels as possible (category name)
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Don't
be afraid to re-create the market for a product that will bring
the market superior quality and value, and finally
-
Italians
really are good marketers
Remember,
Mosaic creates customers for business-to-business companies
through specific project work, on-going retainer assignments,
and marketing coaching sessions.
Until
next time.....
Rosemary
Walter
847-483-5018
Rose1Walter@MosaicMM.com

Quote
of the Month
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"Wine should be taken in small
doses;
knowledge in large ones."
Chinese
Proverb
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