Posts Tagged ‘Direct Sales’

Building a Direct Sales Vehicle pt. 1

Wednesday, June 13th, 2007

pendulum-2.jpgWith the pendulum starting to swing toward online sales within the wine industry, it’s important that we recognize one of the major differences between the virtual retailer/distributor and the traditional retailer/distributor.

As an online wine outlet, winery or retailer, your website and online engine is your Sales Vehicle. It should be responsible for everything, from how your customers perceive you, how they order your wine, how they are charged, where the order goes, inventory tracking, to even the actual printing of the label in the case of Windsor Vineyards. If your site doesn’t do this, wouldn’t it make your life a lot easier if it did?

If you use traditional methods, you have to communicate these same things to your distributor, who then has to communicate this to a retailer, who then has to communicate that with their stores, who finally puts it on a shelf for the consumer to purchase… and then the information has to funnel back to you. In the words of Tom Friedman, “the world is flat.” With the power of the Internet, there is no longer a need for such an inefficient hierarchal bureaucracy.

Wine 2.0 is already happening, showing the importance of online blogging, marketing, and social interaction, while Tom Wark has comically notified us of the WITS (Wine Industry Technology Symposium), which is the industry’s “this-is-a-very-serious-business” event (www.wineindustrytechnologysymposium.com)… lol. They will cover interesting topics such as sales automation, supply chain technologies, vineyard management systems, etc.

The point is that it’s time to get on board with technology and direct sales, which both allow you to manage your business easier, faster, cheaper, and with more control. With your sales engine having so much responsibility, it stands to reason that you would want to have something that is well-oiled, fast, smooth, and reliable. Unfortunately there isn’t a Sales Vehicle you can take for a test drive, as most require some custom work before they are ready to roll. This leaves you with quite a bit of research/legwork to be done when all you want to do is drive.

We are starting a series that will help you make the right decisions along your journey to “Building a Direct Sales Vehicle”. It will include choosing the right sales engine and designing your website, handling delivery and logistics, and gaining exposure in the online marketplace. We welcome discussion from all the service providers in these categories, (though we already have done the research and have our preferences), as we hope this series will make it a lot easier for those trying to get set-up in direct sales, and facilitate a faster change within the industry.

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Cutting Costs on Delivery

Thursday, April 19th, 2007

Cutting CostsThe two most common shipping methods used by fullfillment companies are, obviously, UPS and FedEx. An important thing to note, and we’re not sure if UPS offers anything like this, but FedEx offers great discounts (up to 65% off) on shipping if the winery is a member of the Wine Institute. This can amount to incredible savings to the consumer, or make the winery look great if they complement their price point with “shipping included”. If you are a winery, you have to enroll in the program.

Some of these shippers work to make it easy to deliver wines. For example, UPS offers a free service where they call the intended recipient before they deliver to make sure that someone over 21 is available to pick up the wine. Unfortunately, I don’t think all the wineries are aware of this, as we recently received some wine, and it was somewhat of a hassle… apparently the only way that UPS will do this is if the winery gives them the phone number and requests the service when they place the order into shipping.

So… if you are purchasing wines, don’t forget to mention it. This will help eliminate the need for the driver to make multiple trips, and make it easier to get the wine into your hands.

If you are a winery, and are interested in the Wine Institute, you better be from California, because they apparently only represent California wineries. Maybe they have plans for expansion, or maybe Wine America’s helping hands are working on, something similar.

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Florida Wine Running into Brick Walls?

Monday, April 16th, 2007

Florida Brick WallIn recent news, there is a legal battle (as usual) with big distributors and others, fighting to eliminate direct sales in Florida. The newest proposal is saying that direct sales will be limited only to those wineries who produce less than 250,000 gallons of wine per year. Now how exactly does that figure work for a State that records about 25,000 gallons of wines shipped direct (all direct statistics) for all of last year, though this doesn’t include those shipped by in-state wineries. The reports also show that wholesalers/distributors handled about 25,000 gallons of domestic and about 5,000 gallons of imported wine per month. So direct sales have taken less than 10% of the business…so far. Distributors are losing all of that profit, and where is it going…back into the pockets of the wineries who worked so hard to produce the fabulous wines being purchased? (more…)

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Rubber-Stamped Web-Page or Community Profile?

Wednesday, March 14th, 2007

If you’re a winery, there’s about a 50% chance that you have a website. If you have one, the odds are probably much greater that the majority of your site visitors come because they have either 1) had the wine or 2) it was recommended. Point being… if someone has never heard of you, they probably aren’t going to be stumbling onto your site. And if they do, is the webpage enough to make them feel like they are missing out on something if they don’t try the wines?

Your wine is your brand, and the worst thing for a brand is to not have a point of difference. So next time your strolling through the online world, and looking at all of the wineries’ webpages, pay attention, and one thing will become very apparent. Most winery websites follow the same template. It really does look like the winery sent in a few pictures and a paragraph description to the web-design company, and they just stamped the site right out. Granted this doesn’t apply to all wineries… many take the time to find a designer and pay them $1000′s to develop a site that is unique to their image. Unfortunately, the majority of wineries don’t have this budget, and resort to the ever looming “default” home page. This could be because godaddy.com gives you the template for free, or you put out a website simply because you felt you had to.

Every winery is different, every wine and its vintage is different, every wine maker unique and lovable in their own ways… How do you share that with an audience? How do you attract the audience? The solution isn’t for a winery to work intensely at marketing themselves, but to do what they do best… be unique. One of the most recent internet phenomenons is myspace.com. As the name portrays, its MY space… unique to that individual, created however they would like. Granted there are almost always similarities in basic design, but every page has a personality to interact with… not to mention the page is plugged into a community of millions of people. How easy is it to stumble on a myspace profile… too easy almost… browsing through the site, clicking on friends’ friends, and their most popular friend, looking at the comments that have been made, going to a bands page, reading what the artists are experiencing, and even talking with them on their wall. Some wineries are even taking advantage of this already…Bellview Winery, (a small winery in New Jersey, they are only sold locally in the state, and they have over 500 Myspace friends) The one drawback is that Myspace pages give samples of the musicians work, whereas wineries will obviously not be able to give tastes of their wines.

The two “profiles” on this page, one for Estancia, and one for Dromos (picked simply because they’re a couple of the favorites here – click to enlarge) were quickly designed to give an idea of how a winery could have a community profile page that not only complements their website, but also allows interaction with the fans. It gives some basic information, and gives the ability to have an open discussion right on the page. They would need to be somewhat similar for ease of navigation, but the main point of difference being a combination of the functionality and the ability to interact with the viewers. Furthermore, it could serve a really cool function of providing a virtual tour of the winery. This is the type of feature that could actually had value to the consumer’s buying experience and even entice them to travel to that location, which could even be arranged through the profile page. Estancia’s website is rather advanced for winery websites and should not be discarded. Instead, there should just be an RSS feed on the profile page that brings in content from the website. Dromos, on the other hand, has practically no website presence and could greatly benefit from a profile.

The problem of rubber-stamped websites can be solved, but two very important things have to take place for the benefit of these personality profiles to realize itself. First, wineries have to be willing to update their profile with new content on somewhat of a regular basis… this applies to their websites as well. Second, and more importantly, in order for these profile pages to really serve their purpose, they have to exist within an established online community of wine consumers or within an online community of wineries, in which consumers go to check out their options. WineWeb and RadCru are doing some very interesting things, creating online marketplaces for wineries. However, they have a minimalist presence for the winery, especially their personality. This is probably because, as previously mentioned, it will be very difficult to get wineries to consistently add content and update their profiles. Ultimately, it’s going to take the attention of the consumer before the wineries start putting in the effort.

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Posted in Business, Design, Marketing, Technology, Wine | View Comments

How much e-communication do wineries want to do?

Wednesday, March 7th, 2007

One of the best ways for wineries to connect with their customers is through an email marketing program. However, if wineries were given the capability to e-mail customers personalized newsletters, promotions, RSS feeds, etc., would they actually want or take the time to do it? Winemakers are rustic people and have a very strong passion for what they do. They enjoy the human element of winemaking and having close relationships with people that they do business with. Technology, especially e-communication, takes the face away from the customer, which in the eyes of the average winemaker or winery marketing director is not a real way of connecting. The marketing potential, however, is too great for this perception to not change in the near future.

In reality, wineries have indirect relationships with their customers through salesman, retailers, and distributors and that barrier is something that has existed for awhile. Thus, this new direct-to-the source e-comm. approach probably makes wineries a little timid, especially since they’ll have to become tech-savvy to utilize its potential. Even though they may be turned away at first, this does not deny the fact that if wineries directly connected with their customers more often, they would have increased success … they just need a medium that understands the consumer and understands how to deliver the winery’s information when and where the consumer wants it.

icontact.bmpThere’s a great product called iContact that simplifies this whole process. Through its web-based system wineries can send newsletters with personal messages, new products or promotions as well as surveys that get customer opinions about various issues, such as the quality of the latest vintage. They do RSS feeds, autoresponders and all that good stuff, as well as detailed metrics and tracking systems that inform who is opening newsletters and surveys, and therefore who is more likely to become a quality customer. This type of info can be so valuable to wineries because, with it, they can feel confident that they know who their customers are and what they want. Furthermore, they know that if they deliver on their customer demand, they can develop quality long-term relationships them.

The most important thing, however, is for all of this information to consistently get to the people that want it, while absolutely never becoming spam! This cannot be emphasized enough. It is a must that customers personally sign up for these newsletters, surveys, etc, which they can do on winery websites or other community sites. If people keep getting messages that they don’t want, they are just going to be annoyed and probably won’t buy your product again. iContact has strong relationships with ISPs to guarantee that messages get to the customers, while strongly advocating ethical approaches to email marketing that are about building relationships rather than overloading inboxes.

This is some cool stuff, and there is no doubt that smart, tech-savvy marketing directors out there will start doing it for their wineries. For those that are more technologically challenged, I guess you’ll need a little guidance.

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