Wine as a social bond
Building brand attachment and
enhancing WOM through virtual communities
Using Live Streaming to
Turn your Brand Website into a
Virtual Cellar Door
Life Impact | The University of Adelaide
What we’re talking about today
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What is brand engagement and brand attachment?
Why do we care?
Consumer empowerment – what does that mean to me?
Assessing your web presence
What can an online wine brand community achieve?
How do we build one, what do we know?
– Making sure we have a pro-active attitude to co-creation
• Hosting a meaningful event:
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Topic and wine selection
Camera set up
Who’s on camera
Active engagement with customers
Q&A
Life Impact | The University of Adelaide
What is it that consumers buy?
• Nobody buys ‘products’ or ‘services’ – and they never have.
– Consumers buy ‘benefits’ – real or imagined
• Products are a ‘bundle’ of attributes that consumers assess in
a holistic way.
– Wading through the attributes to determine where (if anywhere) the
‘value’ is for THEM.
– People ‘trade off’ to get what they deem important.
– Don’t think there are many knowledgeable consumers – there aren’t.
Life Impact | The University of Adelaide
Extrinsic cues that matter
• How the wine tastes should be the most important thing...
• Cues that consistently cue wine ‘quality’ for example:
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Price
Packaging
Retailer
Country-of-origin
Brand
Referral
Associated products
Life Impact | The University of Adelaide
Let’s talk about price…
People choose the cheapest product for these reasons:
1. They are demographically constrained (no money…).
2. They have an ‘attitude’ towards spending money (have the
first dollar they ever made) – think of shopping as ‘combat’.
3. They see all products in a range as the same… hence go to
the lowest price because it really doesn’t matter.
This is where brand values driving attachment come into play –
loyal and ‘attached’ consumers are much less price sensitive.
We’ll come back to this….
Life Impact | The University of Adelaide
The ‘empowered’ consumer
C2C interaction is facilitated by the Internet.
• Consumers are culturally and technically ‘savvy’ and ever more
resistant to brand lead, traditional message channels.
• Empowered consumers build strong stakeholder groups,
with a louder ‘voice’.
• Very active in co-creating brand meanings; marketing
managers exert far less direct control than in the past.
• Looking also for co-created experiences, on and off line.
• Some risks, but greater opportunities too….
Life Impact | The University of Adelaide
What is brand attachment
• Consumers have ‘moved on’ from feeling loyalty alone…
– Used to be measured by behavioral and attitudinal behaviour
– E.g. repeat purchases and brand preferences
• Consumers now identify strongly with many brands, to the
point where they use products and brands as a form of
communication of their‘ideal-self’.
• Consumers become ‘attached’ both emotionally (they love
and trust and defend their brands) and cognitively (get
functional satisfaction).
• Attachment is a welcome ‘heuristic’ or ‘cognitive shortcut’
now – when ‘time’ is the ultimate currency and choices are
endless….
Life Impact | The University of Adelaide
Attached consumer lead groups
When the product brand, category or activity becomes highly
meaningful for consumers, forms of “communities” emerge
around it (this is nothing new):
• High level of ‘attachment’ - involvement, interest
and personal significance.
• Substantial amount of time thinking, communicating
and gathering information about the product category or
activity.
• High degree of interaction, face to face or online.
Life Impact | The University of Adelaide
Outcomes
What are the benefits and risks to brands?
• Consumers attached to a brand are ‘loyal’attitudinally
and behaviorally.
• Advocates and ‘defenders’.
• Less price sensitive.
• Generate strong and positive WOM – but demand a ‘say’.
• Low cost per sale (obviously).
• Source of ideas and other forms of valuable feedback.
• Not all communications are positive…
• Not all C2C communications will reflect reality ….
Life Impact | The University of Adelaide
Wine – an interesting context….
Brand attachment can be established in a number of ways…
• Wine is a highly socially oriented product anyways.
• Some people become ‘involved’ - but are unlikely to become
truly ‘knowledgeable’.
– The more involved the more a referral means.
– The more involved the more likely to be influenced by extrinsic cues.
• Country of origin
• Brand
• Price
• A tourism experience can be a catalyst and/or reinforce
beliefs and ‘set-up’ the propensity to seek community
membership.
Life Impact | The University of Adelaide
A recent international study
Place
Attachment
Pleasure
Arousal
Brand
Attributions
Wine Tourism
Experience
Brand
Attachment
Satisfaction
Place
Brand
Assoc
Data from wine regions in Australia,
the USA, France and Italy
Resulting in positive
influences in loyalty and
willingness to pay a
premium price.
Life Impact | The University of Adelaide
Building brands
• Building brand values is easy if you have unlimited funds and
world-wide reach.
– A little tougher for smaller players
– Have to use funds wisely and with imagination
– Have to seek to find a unique ‘place’ in the minds of customers
• Brands are like people…
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None are perfect – you can’t please everyone!
Think about the group that you want for your own
What are your strengths and weaknesses?
What is your over-riding competitive advantage?
How can you make sure your values are communicated consistently?
Life Impact | The University of Adelaide
Let’s look at some examples…
Life Impact | The University of Adelaide
The Adelaide Hills Wine Region…
Life Impact | The University of Adelaide
What is special about your brand?
1. Is your brand ready for, or already engaged in cocreation activities?
2. Are you clear on the pillars of your brand’s
distinctiveness?
If yes …. then this strategy of community building will work
incredibly well for you and also the region.
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Actively listen and engage with consumers.
Seek their opinions and feedback.
Give them opportunities to also engage with fellow ‘fans’.
Have fun with them – stimulate their interest
Take their ideas on board – let them ‘co-create’ with you (e.g’s later..)
Life Impact | The University of Adelaide
Life Impact | The University of Adelaide
Fostering attachment online
• Wine makers perceived to be ‘real’ people.
– Strong attachment between wine makers and their product.
– Consumers looking for the chance to interact with them as ask
their own questions .
– Consumers crave sincerity – it’s a perfect fit.
• Wine buyers want to feel special.
– Premium wine buyers in particular want to have a ‘edge’.
– Works well at a dinner party…
– This is an in-group experience.
• Wine is a strongly socially oriented product.
– A perfect fit for the medium.
– Brands build their own group of devotees – it can be done.
Life Impact | The University of Adelaide
How does it work?
- Product Info
- Product expertise
- Product advice
- Ease of navigation
- Currency
- Responsiveness
- Social interaction
- Peer support
- Owner support
- Interest and fun
- Shared values
Functional
Benefits
eWOM
Engagement
Social
Benefits
Brand
Attachment
A cellar door experience can be a catalyst and/or reinforce beliefs
and set-up the propensity for further engagement.
Life Impact | The University of Adelaide
‘Live streaming’
• Equipment and accounts.
– Webcam set on a tripod with USB computer connection.
– Desk microphone set close to presenters with USB computer connection.
– High speed BB – although we have streamed successfully without it.
• Problems with ‘drop outs’, time lags and so forth – not ideal.
– Adobe Flash Media Live Encoder 3.2 (free download).
– An account with a streaming provider (e.g. Netromedia) at $148 p/mth.
– A place to store the videos (e.g. Vimeo) at $99 p/yr.
Life Impact | The University of Adelaide
The set-Up…
Life Impact | The University of Adelaide
How it looks to consumers
Life Impact | The University of Adelaide
Sharing the Sparkle
Life Impact | The University of Adelaide
Life Impact | The University of Adelaide
Life Impact | The University of Adelaide
A few days later..…
Email from a participant:
“The tasting panel was a delight! In fact I took a trip with a friend to the Barossa
Valley solely for the purpose of visiting the St Hallett winery and hopefully
meeting Stuart in person. Unfortunately, he was not available that day but we
left absolutely charmed by the quality of the cellar and personalised customer
service. Simply excellent! My friend and I had a wonderful time there! I
probably would not have found this gem if it was not for you. So thank you
again for this opportunity! I will spread a good word among my friends and
anyone who is interested in wines.”
Life Impact | The University of Adelaide
Consumer response
“I liked the website with the links to the tasting notes. The streaming went very smoothly. “
“Great concept. Been to similar events with craft beer makers and distillers at a specific site,
but the cyberspace aspect added something more.”
“First experience with online forum – I'm not even on Facebook. So took a bit of time to
adjust to what was happening, but found it quite interesting and lively. Enjoyed the
presenters' relaxed and friendly down-to-earth style – felt like a personal encounter with
nice people.”
“Really great way to learn about local products and be able to ask questions and interact
with other people with similar interests.”
“A great idea and a great way to showcase some excellent wines. I had fun and I'd be more
than happy to do it again.”
“From the email I got, I didn't understand it's going to be online meeting I was really
surprised when I had to sit in front of computer and speak online. It was excellent
experience, one I’ve never had before.”
Life Impact | The University of Adelaide
Reseller support
Life Impact | The University of Adelaide
The effect of only 1 event
Ambassador
Community Event
Brand
R2=11,5%
R2=65,8%
Cognitive Satisfaction
Beta=0,351
Brand
Ambassador
Beta=0,328
Beta=0,466
R2=10,0%
Social Satisfaction
R2=70,8%
R2=14,5%
Community Engagement/
Uniqueness
Attachment_diff
Beta=0,304
Beta=0,491
R2=20,9%
Beta=0,390
Beta=0,139
Beta=0,813
WOM_diff
R2=5,7%
Beta=0,256
WPPP_diff
Emotional Satisfaction
WPP increase of $2.74 (ave)
From $28.68 to $31.42
‘Decent’ bottle costs $27.61
With absolutely no promotion
AHWR = 400
HQ = 350
MS = 90
Life Impact | The University of Adelaide
The all powerful
‘Brand Ambassador’
Life Impact | The University of Adelaide
Getting people to join in
• Building a community takes planning.
– Rome wasn’t built in a day – this is one strategy (albeit a powerful one)
that forms one part of a strategic branding and marketing plan.
• Activate your inactive club/emailing list.
– Many of our participating brands were shocked at the lack of
reaction to invitations.
– Many ‘lists’ are just that – harvested names and email addresses, that’s all.
• Plan a calendar of meaningful events that support your brand
values and competitive advantage.
– These don’t have to be complex or difficult.
– It’s the interaction that consumers are looking for.
– 2 to 3 wines works well – wines and food is a winner.
Life Impact | The University of Adelaide
Your Website
• For one-way streaming (not chat) insert the Netro-Media
embed code.
– For live-chat (What we’re on about) you need to get this facility added to
your website.
• At the same time – you may consider an ‘up-date’
of your current site…
– Remembering the benefits sought by consumers:
• Clarity! Ease of Navigation! No Clutter! Less is usually more…
• Online wine ordering system – or at least where they can buy it.
• All info current and up to date.
– What are your brand ‘pillars’?
• These will inform the content of your events.
Life Impact | The University of Adelaide
Steps
• Plan your calendar.
– 1 event per month perhaps – or per fortnight – whatever works.
– Include lead in or ‘teaser’ videos to support events.
• Create your email documents and other media.
• Review your email listing.
– Schedule a ‘launch’ email to introduce your community,
include the calendar.
– Provide some manner of ‘special’ – this is an in-group privilege.
– Promote this off line and on line (advertise/distributor support).
• Reminder emails and other prompters
– Link to Facebook, Twitter etc, cellar door promotion.
Life Impact | The University of Adelaide
Questions?
Life Impact | The University of Adelaide