This is a great article about a business owner who has found online marketing to be the revenue generator his business needed. I added this article because some businesses think that online marketing isn’t going to benefit their business, and this is a great way of demonstrating that no business can’t benefit from online marketing.
Constellation was a collection of four operating units, each concentrating on different wine price segments. The groups had separate marketers, sales forces, and distribution networks. Then Chief Executive Officer Robert Sands consolidated these separate functions into a single entity and dozens of distributors into four. Sands also got out of cheap ($5 and less) wines to focus on varieties that sell for up to $20 a bottle. Meanwhile, North American President Jay Wright aggressively sought younger customers on the Web. Constellation says the changes helped boost sales of its 15 most profitable brands by 10 percent last year. “We’re supercharging our investments in brand building,” says Wright, a former brand manager at P&G for Duncan Hines cake mixes.
For decades, marketing at Constellation amounted to little more than in-store pitches (Wine Spectator ratings or staff picks) and ads in magazines. Sands last year doubled his digital marketing budget to $10 million and is raising it 50 percent this year. He’s convinced online marketing is ideally suited to selling wine because drinkers have long discovered new tastes through real-life social networks. “If anything lends itself to social media, it’s wine,” he says.
A key target of the online strategy is Millennials, the 21- to 34-year-olds who are now the fastest-growing segment of wine drinkers. In early 2010, Constellation staged a “tweet up” for its Robert Mondavi brand. Bloggers and others were brought in to tour the Napa Valley (Calif.) winery and encouraged to send Twitter posts as they strolled and sipped. Fehrnstrom says the brand’s sales surged 29 percent in 2010, though it’s unclear the event played a role.