Branding a Foreign Location in an

International Market

Sam HeitnerDirector

Office of Champagne, USA

OverviewOverview

• Traditional branding vs. location branding

• Challenges of international markets• How Champagne communicates in the

United States -- case study• What others can gain from

Champagne’s experience in the US

• Traditional branding vs. location branding

• Challenges of international markets• How Champagne communicates in the

United States -- case study• What others can gain from

Champagne’s experience in the US

Branding vs. LocationBranding vs. Location• Historically branding has been focused on

specific products:• Coca-Cola• Budweiser• Disney• British Airways

• When specific locations have been involved, most branding has been travel related and been led by countries or major entities:• Jamaica• UK• Ireland• I Love NY

• Historically branding has been focused on specific products:• Coca-Cola• Budweiser• Disney• British Airways

• When specific locations have been involved, most branding has been travel related and been led by countries or major entities:• Jamaica• UK• Ireland• I Love NY

Trademarks support thisTrademarks support this

• Trademark system is designed to protect names and brands.

• Has no allowance for the idea that a location has any effect on the value of a trademark

• In fact, trademarks can be sold. Something that one cannot do with a specific location.

• Trademark system is designed to protect names and brands.

• Has no allowance for the idea that a location has any effect on the value of a trademark

• In fact, trademarks can be sold. Something that one cannot do with a specific location.

Yet locations are very brandableYet locations are very brandable• They are unique• Have specific conditions that distinguish them

from others• Branding often enables locations to increase

value or prices for products• Examples include:• A city and tourist destination (Villa Gessel)• An agriculture product (Vidalia onions)• Wines (Champagne)

• They are unique• Have specific conditions that distinguish them

from others• Branding often enables locations to increase

value or prices for products• Examples include:• A city and tourist destination (Villa Gessel)• An agriculture product (Vidalia onions)• Wines (Champagne)

Branding locations requires:Branding locations requires:• Bringing the unique attributes of the

place to life• Distinguishing it from others. • Note: not necessarily claiming superiority

over others

• Targeted communications to particular audiences that relate to their specific needs and interests

• Bringing the unique attributes of the place to life

• Distinguishing it from others. • Note: not necessarily claiming superiority

over others

• Targeted communications to particular audiences that relate to their specific needs and interests

International challengesInternational challenges

• Most people are wary of outsiders• Most regions have communicated to an

internal audience for many years• One must break through both barriers:• Speak to consumers in their own language • Go to where they are • Know -- and use -- their local influencers and

natural allies to help you communicate

• Most people are wary of outsiders• Most regions have communicated to an

internal audience for many years• One must break through both barriers:• Speak to consumers in their own language • Go to where they are • Know -- and use -- their local influencers and

natural allies to help you communicate

ChampagneChampagne• Champagne is a region 90

miles north west of Paris

• Famous for growing the grapes and perfecting the system required to make a specific sparkling wine called Champagne

• Champagne is a region 90 miles north west of Paris

• Famous for growing the grapes and perfecting the system required to make a specific sparkling wine called Champagne

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• It’s unique northern climate and chalky soil combine to produce a specific environment that makes Champagne

• In fact, the soil, air, water and other environmental conditions actually affect the taste of the grapes and, therefore, the wine.

• Only grapes from specific plots within the region can be used to make Champagne.

Champagne video shown hereChampagne video shown here

How Champagne Communicates in FranceHow Champagne Communicates in France• In the EU and many countries, the word

“Champagne” can only appear on wines from Champagne.

• Most French citizens have been to Champagne at least once in their lives. They understand the unique nature of the place.

• Therefore, within France the Champagne region focuses on wooing wine critics, educating consumers about the different types of Champagne, the distinct nature of particular vintages, etc.

• In short, they communicate to the French people in their native tongue.

• In the EU and many countries, the word “Champagne” can only appear on wines from Champagne.

• Most French citizens have been to Champagne at least once in their lives. They understand the unique nature of the place.

• Therefore, within France the Champagne region focuses on wooing wine critics, educating consumers about the different types of Champagne, the distinct nature of particular vintages, etc.

• In short, they communicate to the French people in their native tongue.

The importance of the US marketThe importance of the US market• Champagne has always been a region that

exports a large portion of its wine• In 2004:

• UK: 35 million bottles • US: 19 million bottles

• The US is one of Champagne’s key priorities as wine consumption is increasing. US consumers are willing to spend extra for quality.

• Yet, the name “Champagne” is not protected and is used by many lower quality sparkling wine producers

• Champagne has always been a region that exports a large portion of its wine

• In 2004:• UK: 35 million bottles • US: 19 million bottles

• The US is one of Champagne’s key priorities as wine consumption is increasing. US consumers are willing to spend extra for quality.

• Yet, the name “Champagne” is not protected and is used by many lower quality sparkling wine producers

In the US, we refocus tone & message…In the US, we refocus tone & message…• The Champagne community has two goals in the

United States:1. Promote Champagne consumption2. Protect the Champagne name

• The US consumer is very wary of France and French people

• Therefore we:• Highlight US examples (Napa, California, Oregon, etc.)• Speak with an American voice• Focus on Champagne’s unique environment and

growing conditions

• We always remind consumers that “Champagne Only Comes from Champagne”

• The Champagne community has two goals in the United States:

1. Promote Champagne consumption2. Protect the Champagne name

• The US consumer is very wary of France and French people

• Therefore we:• Highlight US examples (Napa, California, Oregon, etc.)• Speak with an American voice• Focus on Champagne’s unique environment and

growing conditions

• We always remind consumers that “Champagne Only Comes from Champagne”

In the US, we refocus targets…In the US, we refocus targets…• We target communications to reach:• Consumers -- High income, college

graduates• Wine business• Media -- particularly lifestyle, political,

business and travel reporters• As advertising and communicating in

the United States is VERY EXPENSIVE. • Only target consumers who are potential

Champagne purchasers or who will be in 5 years

• We target communications to reach:• Consumers -- High income, college

graduates• Wine business• Media -- particularly lifestyle, political,

business and travel reporters• As advertising and communicating in

the United States is VERY EXPENSIVE. • Only target consumers who are potential

Champagne purchasers or who will be in 5 years

All communication is targetedAll communication is targeted• Media• Trips to Champagne• Monthly updates on the state of the grapes• Monthly updates on shipment figures• Interviews with winemakers traveling to the

US• Targeted outreach to non-wine writers who

reach the target demographics• Travel writers• Business press• Political writers • Lifestyle reporters

• Media• Trips to Champagne• Monthly updates on the state of the grapes• Monthly updates on shipment figures• Interviews with winemakers traveling to the

US• Targeted outreach to non-wine writers who

reach the target demographics• Travel writers• Business press• Political writers • Lifestyle reporters

All communication is targetedAll communication is targeted• Wine trade

• Wine education seminars

• Support materials• Special events at

trade shows• Alliances with US

wine growing regions• Speaking to them in

US “environments”yet where they can enjoy the beauty of the French product

• Wine trade• Wine education

seminars• Support materials• Special events at

trade shows• Alliances with US

wine growing regions• Speaking to them in

US “environments”yet where they can enjoy the beauty of the French product

All communication is targetedAll communication is targeted• Consumers

• All media and wine trade communication influence US consumers.

• Yet reaching consumers directly is imperative.

• Retailer tastings• Materials available for

wine clubs• Education seminars• Radio• Television• Magazine advertising

• Consumers• All media and wine

trade communication influence US consumers.

• Yet reaching consumers directly is imperative.

• Retailer tastings• Materials available for

wine clubs• Education seminars• Radio• Television• Magazine advertising

US-specific advertisingUS-specific advertising

Measuring successMeasuring success• Since the campaign commenced:• Only French region to increase shipments

to US• More Americans than ever site

“importance of location” when making a wine purchasing decision

• Many fewer media clips misusing “Champagne” and many more mentions of the Champagne region

• A greater variety of Champagne brands are now on the US market

• Since the campaign commenced:• Only French region to increase shipments

to US• More Americans than ever site

“importance of location” when making a wine purchasing decision

• Many fewer media clips misusing “Champagne” and many more mentions of the Champagne region

• A greater variety of Champagne brands are now on the US market

Lessons learnedLessons learned

• Champagne effectively communicates about their unique location in multiple countries

• They are effective because Champagne:• Proudly proclaims its uniqueness• Has support of all in the region• Changing messages, tone and materials to

suit the target countries• Targeted media• Targeted advertising• Targeted events• Educating new wine consumers about

Champagne

• Champagne effectively communicates about their unique location in multiple countries

• They are effective because Champagne:• Proudly proclaims its uniqueness• Has support of all in the region• Changing messages, tone and materials to

suit the target countries• Targeted media• Targeted advertising• Targeted events• Educating new wine consumers about

Champagne

Lessons for other regionsLessons for other regions

• Highlight unique attributes differentiates one in the mind of the consumer

• Yet one must understand the target market and customize all materials, activities and events to match that audience

• While proudly proclaiming what is special about these places

• Include and represent all major sectors of community

• Highlight unique attributes differentiates one in the mind of the consumer

• Yet one must understand the target market and customize all materials, activities and events to match that audience

• While proudly proclaiming what is special about these places

• Include and represent all major sectors of community

What does one gain by launching a comprehensive branding campaign?

What does one gain by launching a comprehensive branding campaign?

These efforts can be time consuming and difficult, yet they can:• Increase international recognition of locations• Enable some to increase the value of products from the region• Help all players in the region (directly and indirectly)

These efforts can be time consuming and difficult, yet they can:• Increase international recognition of locations• Enable some to increase the value of products from the region• Help all players in the region (directly and indirectly)

Branding a Foreign Location in an

International Market

Sam HeitnerDirector

Office of Champagne, USA