BAM

Brand Awareness vs. Consumer Recommendation: Which is More Important?

If awareness is the #1 driver of brand “power,” and if awareness is driven by shelf placement, what happens to brand power if your brand isn’t on retail shelves?

This was just one of the questions inspired by Wine Intelligence’s presentation this month at Prowein 2018. CEO Lulie Halstead’s research identified and measured the effect of three criteria on brand “power”:

  1. Aided Awareness: % of wine consumers aware of a brand when shown its logo and name combination;
  2. Purchase frequency: number of times the consumer bought the brand in the last 3 months; and
  3. Recommendation rate: % consumers who would recommend it to a friend.

The rise or fall of these three criteria were measured for specific volumetric brands and, over a decade, the rise in aided awareness was dramatically higher than the rise in purchase rate and recommendation rate. Let me say that again: for successful, volumetric brands, awareness grew much faster over time than did purchase frequency and recommendation rate. In the U.S. between 2007 and 2017 Barefoot’s aided awareness rose from 27% to 71%, while its purchase frequency (31% to 37%) and recommendation rate (40% to 43%) rose more slowly.

The findings for power brands held true across thousands of consumers and 15 countries.

So what’s going on here? I’m afraid we have more questions than answers, but bear with us.

It’s not surprising that awareness drives sales. Duh. But conventional wisdom and a lot of research claims that peer-to-peer recommendations are the #1 driver of purchase, or at least intent to purchase (what people say in surveys and what they actually do can differ). Wine Intelligence’s research contradicts this notion: it claims that visibility has a larger positive effect than other factors for power brands like Yellowtail, Barefoot or Woodbridge. The other factors, purchase frequency and recommendation rate, are important but grow less than awareness does for these successful, volumetric brands.

So what drives brand awareness? At Benson, we grapple with this every day. We would posit that wine brand awareness is a function of press coverage, digital presence, advertising, shelf placement and ACV, and packaging, among other factors, and in no particular order.

Now, back to the original question: how are these drivers of awareness changing in a dynamic marketplace?

  • Imagine if 15%-20% of off-premise sales move to the home delivery model. That would decrease the potentially positive effects that shelf placement, ACV and packaging have on brand awareness, even if the delivery platforms offer brand advertising.
  • What about digital? If awareness trumps recommendations, digital spend should maximize reach and frequency at the expense of engagement (think Facebook ads versus clever boosted posts). That conclusion will be sacrilegious to many.
  • What about DTC brands? Of course, this study doesn’t directly address DTC, but it suggests what we all know: DTC brands rely very heavily on creating consumer connections, or “affinity,” as Wine Intelligence calls it.

And a final, humbling note: Even when prompted with a wine logo and name, the average number of wine brands a US consumer could identify was only 17, and for France the number was 8. Time to roll up our sleeves and get to work.

Taken from the presentation, “Global wine brand power and consumer trends,” Lulie Halstead, CEO, Wine Intelligence. www.wineintelligence.com

Benson Speaks at Les Vignerons Indépendants de la Drôme

Our French Director, Jeanne Peron, was invited to speak at Les Vignerons Indépendants de la Drôme at Vercheny on Thursday, March 8th. She discussed how wineries can improve their image with different types of communication tools. See some of her key points below!

 

Click here for more information on Les Vignerons Indépendants de la Drôme.

What is your objective?Objectives, benefits and solutions

 

Benson France Signs Champagne Vollereaux

Located in Pierry near Epernay La Maison Vollereaux has retained Benson’s Lyon office for a Brand Messaging Plan project to further refine its position in the French market. The project will be followed by a France-based PR campaign. The sixth generation at Champagne Vollereaux is lending its own perspective and creative to a long legacy of excellence. www.champagne-vollereaux.fr

Unpacking “Advocacy Marketing”

Advocacy Marketing At Work

Is Tesla a car company, or an energy company with a car division?

How companies describe their products and services is not only important to how they are perceived, but also how they function and innovate.

We help wine and spirits companies phrase their strengths every day, and the impact on their teams and customers is thrilling to watch.

Occasionally, we turn the focus on our own company.

Early this year Benson added “Advocacy Marketing’ to our list of services. This is a common phrase among marketers but perhaps less so outside the realm of marketing geeks. Once we tried on the idea, it fit like a comfortable jacket. Here’s why.

We help create brand advocates by working with the media: journalists, bloggers and online influencers.

We also work with advocates in the professional trade by, for example, coordinating regional trips, educational seminars and private events for sommeliers, buyers and importers.

And increasingly, we orchestrate media partnerships that can combine advertorial, editorial, events and social platforms. (Wine-searcher.com did a story on this topic last month that featured how Benson helps clients target customer segments.)

But rather than dividing services strictly by audience – “this is a trade promotion Idea” or “that is a press idea”—the term “advocacy” pulls together trade and media and consumer audiences into one. So what, you say?

Well, what happens next is where it gets interesting. A simple word change is driving our agency’s mission – integrated marketing –the core of Benson’s ethos. If each of us perceives our responsibilities more broadly than trade or consumer, earned or paid media, then we can better integrate services. And integrated campaigns create better ideas, better results, and higher ROI for clients.

Changing a few words is knocking down mental walls, and already sprouting new ideas and perspectives. Immediately, our team thought of promotional ideas that will help both our clients and influencer contacts. We discussed new processes and the systems that can empower those ideas. We will report on some of these results in the following months.

NB: To answer the first question, Tesla’s stated mission is “to accelerate the world’s transition to sustainable energy.” See their website.

Billecart-Salmon: 200 Years of Independence, Family Expertise

In 2018, Champagne Billecart-Salmon will celebrate its 200th anniversary by meeting champagne aficionados in five global capitals. Benson is proud to help this family-run company share its modern vision for the future. The year will be punctuated by a series of collaborative events and activities, including exclusive tasting events in New York and Los Angeles with rare cuvees and Michelin-starred chefs.