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As the famous Shakespearean line goes: What's in a name? that which we call a rose by any other name would smell as sweet. Unfortunately, that isn't the case when it comes to choosing among the endless array of computers, cell phones, televisions, clothing, or automobiles. And it certainly doesn't hold true when selecting wine, be it white, rose or red.
Branding of products has become the way in which a company distinguishes its products from competitors. In fact, brand marketing tends to be a deciding factor for a purchase even more so than the source of the product. This is surely the case in today's global wine market. Robert Nicholson of International Wine Associates stated, "distribution, branding and marketing have become more important than the vineyard and winery assets in determining the value of a brand. Evidence of this can be seen in the recent sales transactions of luxury estates such as Duckhorn and Stag's Leap Wine Cellars, as wineries would rather buy an existing brand than create a new one for reasons of simplicity. While this tactic may work very well, wouldn't it be more gratifying to know that the new brand you created became successful because of your hard work and determination? Apparently the easy way out is more satisfying.
Nevertheless, what goes into a brand to make it valuable? The keys to a successful brand include, but are not limited to, packaging, wine style, a simple, yet distinguishing brand message and the ability to be unassuming. In determining brand value of a wine, Nicholson considers "its suppliers, distributors, inventory levels, profit margins and overhead. Other important considerations include employment and consulting contracts, third party grape contracts, the retention of library wines, and trademarks/intellectual properties." While this may be true, I think Nicholson is viewing this from the producer's or marketers standpoint, rather than the consumer standpoint, which is what I think matters most in the end.
Where the customer is concerned, I think a wine's brand value is determined on an experiential level, hence making it more than just a commodity. Nicholas Quille defines brand value best as " an emotional relationship between a consumer and a product." If there is a unique, emotional relationship between a consumer and his/her wine, then the tangible assets of the brand become a reinforcement. As such, if the consumer has a negative experience, as in the wine is not of good quality, the brand will quickly lose its value. If the brand emulates a famous figurehead, has strong connections and financial assets, and receives an abundance of press, it may survive. However, lack thereof will surely cause degradation.
For those who are considering the formulation of a new brand may want to consider this: according to Pat DeLong of Leucadia Cellars, a perfect target features a unique marketing position, top-line growth, profitability, high cash flow and efficient asset base and strategic benefits. Winery owners shouldn't think that there are dozens of potential buyers for their brands." As such, it's necessary to stress the importance of a niche target market, not just "people who buy wine."
Another concept with which I agree wholeheartedly is "organic marketing," which Michael Havens focused on when developing his brand. Organic branding targets the human element of a purchase. " It creates an emotional connection to consumers by telling them the 'human story of the producer" says Havens. It may not be easy to develop a successful brand, but those who do reap the rewards.
If you'd like to read more on this subject, check out the Wines & Vines article by Tina Caputo How to Determine a Wine Brand's Value.
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