1 wines of kentucky doug back, tony fernand, tyler hamilton and daryl love strategic marketing...
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Wines of Kentucky
Doug Back, Tony Fernand, Tyler Hamilton and Daryl Love
Strategic Marketing Management
Midway College BUSM600
Nov. 6, 2009
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History of Kentucky Wines
Jean Jacques du Four became discouraged by reports from French veterans on the scarcity of wine in America
Explored the possibilites of wine making in the temperate Ohio River Valley
Founded the Kentucky Vineyard Society in 1798
Established the first commercial vineyard in 1801 on the Kentucky River southwest of Lexington.
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History of Kentucky Wines
By 1870 Kentucky was a leading wine producer and was responsible for more than half the nation’s wine production
During the 1920’s, many vineyards were destroyed due to prohibition and Kentucky’s wine production stopped
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History of Kentucky Wines
During prohibition Kentucky farmers began growing other cash crops.
By the time prohibition was repealed many of Kentucky’s vineyards had been converted into tobacco farms and the wine industry was lost.
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Kentucky Wine Industry Today
Today, the Kentucky Wine Industry is experiencing a revitalization.
New vineyards are being planted and new wineries are being built across Kentucky
Many Kentucky wines have also been recognized for excellence. Eight Kentucky wineries won 30 medals at the 18th
annual Indy International Wine Competition in Indianapolis this year.
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Kentucky Wine Statistics
Kentucky has over 113 grape producers growing 583 acres of grapes, 280 of which are ready for production
There are currently 46 wineries operating across Kentucky with 36 selling wine
200,000 gallons of wines produced annually
436 acres of vineyards planted in 2008, represents a 60% increase since 2002
The average price for a bottle of Kentucky wine is $12.26
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Growth of Wine Industry in Kentucky
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Kentucky Wineries
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State Sponsored Grant Programs
Winery Marketing Cost Share Program
Wholesaler Reimbursement Program
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Grant Programs for Kentucky Wineries
Winery Marketing Cost Share Program
Purpose: Provides a 50% reimbursement of total expenditures for approved marketing projects in to assist Kentucky’s small farm wineries in the promotion of grape and wine products through advertising.
Eligible Expenditures: Internet, print radio and TV ads, promotional items and uniform apparel.
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Grant Programs for Kentucky Wineries
Wholesaler Reimbursement Program
Purpose: To assist licensed small farm wineries and licensed Kentucky wholesalers in the distribution of small products.
Eligible Expenditures:A licensed Kentucky wholesaler may be reimbursed up to $12 per case for distributing wine products of licensed small farm wineries which meet certain requirements.
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Question
If Kentucky is such a great place for growing grapes, why hasn’t the Kentucky Wine Industry achieved the same success as the Kentucky Bourbon Industry?
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Barriers to Wine Production in Kentucky
Though there is a rich history of wine production in Kentucky, many local wineries are relatively young
Kentucky is one of 16 states that prohibits wine from being sold in grocery stores
Survey’s indicate local grape growers regard viticulture as more expensive and labor intensive than tobacco cultivation
Over half Kentucky’s counties are dry which makes distributing wine difficult.
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Kentucky’s Promotion of the Local Wineries
Promoting wine tours and trails is one strategy the state is using to increase public awareness of local wineries.
For example …
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Kentucky Horseshoe Trail Broad Run Vineyards (5) Brooks Hill Winery (6) Springhill Winery (29) Horseshoe Bend Vineyards
(17) Wildside Vines Winery (34) Ashwood Cellars (2) Chrisman Mill Vineyards
(11) Elk Creek Vineyards (12) Stonebrook Winery (30) CCC Trail Vineyard (8) Jean Farris Winery (18) Wright-Meyer Vineyard (33) River Bend Winery (23
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Day 1 Day 2 Day 3
Four Roses Distillery
Buffalo Trace Distillery
Equus Run Vineyards &
Winery
Kentucky Gentleman Cigar
Co.
Liberty Hall Historic Site
Wildside Winery
Lovers Leap Vineyard &
Winery
Thomas D. Clark Center for
Kentucky History
Woodford Reserve Distillery
Wild Turkey Distillery
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Traditional Industry Marketing Channels
Television
Newspapers
Billboards
Websites
Events
Customers (word of mouth)
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Kentucky Vineyard Social Media Marketing Channels
Web 2.0 Facebook YouTube Twitter
Talon No Yes No No
Equus Run Yes No No No
Jean Farris No Yes Yes Yes
Elk Creek No Yes No No
Lovers Leap No Yes No No
Crisman Mills No Yes No No
Acres of Land Yes Yes No No
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Marketing strategies of three Central Kentucky wineries …
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Talon Winery
Website
Newsletter
Wine Clubs
Hosts a variety events and groups (i.e. Luna Fest, Bluegrass Literary Discussion Group)
Slogan: Think Wine Think Talon
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Chardonnay $14.95A dry white wine with light apple flavors, aged in Kentucky white oak barrels
Vintner’s Select Chardonnay 2004
$17.95 A perfectly balanced dry white with oak and almond flavors
Traminette $13.50A spicy, floral white in the style of dry, light Gewürztraminer. Great with asian foods!
Chambourcin 2005 $19.95A light to moderately tannic wine, oak aged with a nose of plum and licorice, finishing with hints of vanilla and chocolate.
Estate Cabernet Sauvignon 2005
$49.95Our premium dry red. Awarded medals over some of the top wineries in the world
Cabernet Sauvignon 2005 $21.95A rich, full bodied red featuring deep black currant flavors and black cherry aromas
Monarch 2005 $17.95A lively red featuring peppery flavors of estate-grown Cabernet Franc grapes
Coyote Red $12.95A semi-sweet soft red wine with refreshing light cherry and strawberry flavors
Sweet Evening Breeze $11.95An elegant Riesling style white wine, semi-sweet with tropical undertones
Moondance $12.50A soft white blend of Cayuga White and Vidal Blanc, with hints of pear and vanilla
Bluegrass Blush $10.95 A luscious semi-sweet blush with tropical fruit flavors
Afterglo $9.50 A semi-sweet blend of estate Catawba and Concord with a robust grape flavor
Buffalo Red $9.50 A sweet and spicy light red with hints of cherry.
Buffalo White $9.50A light version of our Buffalo Red, with a distinctive aroma of fresh grapes and peaches with hints of cedar.
Talon Wine Menu
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Equus Run Vinyard Website
Newsletter
Wine Clubs
Hosts a number of events including the Alltech Fortnight Festival and Concerts in the Vinyard Series
Slogan: Visit the Vineyard Taste the Experience
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Equus Run Vinyard
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Jean Farris Winery & Bistro Website
Newsletter
Wine Clubs
Commercials
Offers live music on Saturdays and a variety of holiday themed dinners and events
Slogan: Hand picked Kentucky proud
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Some wineries are also airing television ads to make consumers more aware of their products.
These ads typically focus on the history of wineries and
the unique experiences they offer to consumers.
http://www.jeanfarris.com/videos.html
Jean Farris Winery & Bistro
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Strategy Development
While examining the marketing channels of local wineries we discovered that many are not using social networking websites
Our group chose three Central Kentucky wineries and focused on creating a buzz about their products through social media websites
Our goal was to use social networking to expose consumers to wineries’ products through promo clips, pictures, discussions and weblinks
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Marketing Channels
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Target Market
Consumers over age 21 who appreciate drinking wines as well as Kentucky Bourbon drinkers who may not have tried wine before
Native Kentuckians and tourists who may not be aware
of Kentucky’s fine wines and related products
All ethnicities who appreciate drinking wine and other alcoholic beverages
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Goals
Increase awareness of Talon Winery, Equus Run Vinyard and Jean Farris Winery & Bistro by utilizing Facebook, YouTube and Twitter
Promote the Kentucky wine experience and make consumers aware of all the Kentucky wind industry has to offer
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Strategies and Tactics
Setup a Web 2.0 presence on Facebook and Twitter
Establish relationships with local Central Kentucky wineries
Create promotional videos featuring local wineries
Initiated conversations and invited others to join
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Budget
$25 dollars (gas)
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Work Product and Results …
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Video: Members can post videos, write captions, or comments.
Events: Events can be posted with all the need information to attend. E-vite option also available
Messaging: Administrators can send a message to group members
Links: All links that are posted on the wall are filed in the links page and can be retrieved at anytime
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Wall: The main avenue of communication. Member can posting thoughts, links, experiences, suggestions, etc…
Information: Provides group background information.
Discussion Board: A medium were anyone can hold group conservations
Photos: Areas where member scan post photos, write captions or comments.
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Members List: Updated list of all current members
Open Group: An open group where any of facebook member can join.
Promotion: If desire there is paid advertising that can be used to promote the group
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YouTube
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YouTube
Videos: It is the main uploading video source for the whole Kentucky Wines promotion. Any video can be uploaded as long as it is of a certain format and is less than 10 minutes long.
Cross promotion: After all videos are up loaded, a link will appear on Kentucky Wines Twitter and Facebook pages.
Viewership: Any member on Youtube can watch the videos
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What are you doing: Constant messaging can be sent out to whoever is following. These messages can be from event updates, special deals, to random announcements.
Following: Updates can be received from anyone you might be interested in. We are following: Kentucky Ale, The Wine Diary, KY Wine Lovers, and more.
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Questions?
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