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1 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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Presentation on theme: "1 Wines of Kentucky Doug Back, Tony Fernand, Tyler Hamilton and Daryl Love Strategic Marketing Management Midway College BUSM600 Nov. 6, 2009."— Presentation transcript:

1 1 Wines of Kentucky Doug Back, Tony Fernand, Tyler Hamilton and Daryl Love Strategic Marketing Management Midway College BUSM600 Nov. 6, 2009

2 2 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.

3 3 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

4 4 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  By the time prohibition was repealed many of Kentucky’s vineyards had been converted into tobacco farms and the wine industry was lost.

5 5 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 18 th annual Indy International Wine Competition in Indianapolis this year.

6 6 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

7 7 Growth of Wine Industry in Kentucky

8 8 Kentucky Wineries

9 9 State Sponsored Grant Programs Winery Marketing Cost Share Program Wholesaler Reimbursement Program

10 10 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.

11 11 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.

12 12 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?

13 13 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.

14 14 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 …

15 15 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

16 16

17 17 Day 1Day 2Day 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

18 18 Traditional Industry Marketing Channels  Television  Newspapers  Billboards  Websites  Events  Customers (word of mouth)

19 19 Kentucky Vineyard Social Media Marketing Channels Web 2.0FacebookYouTubeTwitter TalonNoYesNo Equus RunYesNo Jean FarrisNoYes Elk CreekNoYesNo Lovers LeapNoYesNo Crisman MillsNoYesNo Acres of LandYes No

20 20 Marketing strategies of three Central Kentucky wineries …

21 21 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

22 22 Chardonnay$14.95 A dry white wine with light apple flavors, aged in Kentucky white oak barrels Vintner’s Select Chardonnay 2004 $17.95A perfectly balanced dry white with oak and almond flavors Traminette$13.50 A spicy, floral white in the style of dry, light Gewürztraminer. Great with asian foods! Chambourcin 2005$19.95 A 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 $49.95 Our premium dry red. Awarded medals over some of the top wineries in the world Cabernet Sauvignon 2005$21.95 A rich, full bodied red featuring deep black currant flavors and black cherry aromas Monarch 2005$17.95 A lively red featuring peppery flavors of estate-grown Cabernet Franc grapes Coyote Red$12.95 A semi-sweet soft red wine with refreshing light cherry and strawberry flavors Sweet Evening Breeze$11.95 An elegant Riesling style white wine, semi-sweet with tropical undertones Moondance$12.50 A soft white blend of Cayuga White and Vidal Blanc, with hints of pear and vanilla Bluegrass Blush$10.95A 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 $9.50A sweet and spicy light red with hints of cherry. Buffalo White$9.50 A light version of our Buffalo Red, with a distinctive aroma of fresh grapes and peaches with hints of cedar. Talon Wine Menu

23 23 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

24 24 Equus Run Vinyard

25 25 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

26 26  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. Jean Farris Winery & Bistro

27 27 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

28 28 Marketing Channels

29 29 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

30 30 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

31 31 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

32 32 Budget $25 dollars (gas)

33 33 Work Product and Results …

34 34 Facebook

35 35 Facebook  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

36 36 Facebook  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.

37 37 Facebook  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

38 38 YouTube

39 39 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

40 40 Twitter

41 41 Twitter  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.

42 42 Questions?

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