How to leverage the power of Digital Marketing and Chinese Social Media to market your wines in China konradmarkham.com Agenda • Market Background • Case Studies - Digital Marketing & Social Media • Suggestions – How Incorporate Digital Marketing & Social Media • Other Wine Marketing Opportunities konradmarkham.com Market Background • 80% of purchases are as gifts. • Local Chinese wines - 90% volume share • Red wines preferred • On premise channel dominates. Hypermarkets & online growing • Est 100k brands, from 80 countries on sale • Household income of 180k + RMB for Imported wine • Softy, fruity, sweet flavour profile most preferred konradmarkham.com Market Background • No strong earthy aromas or dominant tannins • Food & Wine pairing • Perceived health benefits vs. Baijiu • 1st Tier cities highly developed for Imported wines • 1st Tier cities more expensive to advertise, cluttered & competitive • High appetite for wine education • Packaging, design colours and Chinese name also critical konradmarkham.com Source & Type of Wine Information • For <45 yrs, Internet main channel for wine info • Sina Weibo - #1 social media platform for wine • Desktop #1, mobile/tablet also strong • Want short text in Mandarin + images/videos • Most interest in: • Less interest in: • Wine type/style & region • Producer Information • Food & Wine matching • How the wine is made Source: Wine Intelligence konradmarkham.com Case Studies •New Zealand Trade & Enterprises •New Zealand Wine Growers Objective: Awareness & Recognition of NZ & NZ Wines Strategy: In 2012, 4 Sina Weibo bloggers chosen to visit NZ wine regions during grape harvest. Bloggers chosen based on topic interest & follower numbers. Posted their experiences on blog. Result: New Zealand Wine Weibo account reached 10k followers post campaign. konradmarkham.com Case Studies Objective: Brand Recognition & Awareness Strategy: 5 Day Sina Weibo Campaign in lead up to Valentines Day 2013. Express their love to others via the Villa Maria account to win. Result: Campaign drove an additional +10,000 followers. konradmarkham.com •Villa Maria NZ Case Studies Objectives: Engage female drinkers with Provencal rose. Promote Provence as a romantic holiday destination. Strategy: Sina Weibo campaign since 2012. Provide link content to reflect this. Result: Increase in Provencal rose sales. Increased # followers to 42,000 konradmarkham.com •Wines of Provence •CIVP Case Studies Objective: Raise awareness of wine styles/regions & ASC brands. Strategy: Developed a series of educational style films. Host sommelier discusses regions with a panel & tastes ASC wines. Result: Rated Top Ten Original short series by CCTV online in 2012. 3rd series produced in 2013. konradmarkham.com •ASC Fine Wines Recommendations • The right Digital Marketing & Social Media strategy will be dependent on your: • Business & Sales Objectives. • Marketing Objectives: • Customer Acquisition • Awareness/ Branding • Retention/ Engagement • Market Research • Customer Service • Target Audience. • Technology – Mobile, Video • Budget, Key Measures of Success, ROI Timeframe. • Resources available here and on the ground in China. konradmarkham.com Recommendations • Design Marketing activities to have an inherently social motivation to spur broader engagement. • Types of Content • Rewards/Promotion. • Utility/ Education. • Gamification. • Celebrity Endorsement • TV shows/ movie • Yao Ming Family Wines konradmarkham.com Celebrity Endorsement •Yao Ming Family Wines • Brand Launch in 2011. • Napa Crest added to range in 2013. • Range priced from 500 – 5000 RMB. • Distributed via Pernod Ricard SA to VIP customers. • Results: • Brand sold 9,250 9LE cases in total since launch. • Family Reserve sells out each year – Approx 800 cases. konradmarkham.com Other Opportunities • Exclusivity & equity sharing arrangements. • Develop new specific brand/sub range. • Clear & differentiated channel strategies. • Online vs Offline Channels. • Utilise Wine Australia resources. • 11 focus cities. • Evaluate opportunities in 2nd/3rd Tier cities. • Australia category activity vs Brand activity. • Use of QR Codes. • Think outside the square. konradmarkham.com Other Opportunities •South African Wine - Franschhoek •Leopard’s Leap/La Motte • Equity Sharing Arrangements • In 2011, developed distribution agreement with Aussino. • Exclusive South African wine brand. • JV with Yangzhou Perfect, • Perfect Wines South Africa. • New brand – L’Huguenot. Sweeter flavour profile and tailored varieties. Result Sold 400k bottles 10 days after launch. 30% of annual target. konradmarkham.com Direct Sales Channel – Prestige Wines Links with Tsinghua University Beijing Alumni. Hosts 4 groups of alumni each year at winery. 150k sales post first visit. Other Opportunities • Packaging Innovation & Exclusivity • In 2012, released 12 bottles only of a 2004 Cab Sauv in a blown glass ampoule. $168,000 each. Results: The first ampoule was sold to a restaurateur in Hong Kong. konradmarkham.com •Treasury Wines Thank you! konradmarkham.com Some other Wine Labels Source: grapewallofchina.com konradmarkham.com Some other Wine Labels Source: grapewallofchina.com konradmarkham.com