Think back 25 years ago, when New Zealand wine was first making its mark in the UK; computers were the size of a small bar fridge. Telephones were stationary items, and there was no such thing as being able to Google up information at the drop of a hat.
When wine companies were promoting their wines, they had to do it in person and via traditional media methods.
Now in 2012, it has all changed. Computers the size of a small magazine are standard issue, cell phones mean we can be contacted any time anywhere. The Internet has made the world a very tiny place where information can be passed on to anyone in a matter of seconds.
Social media has changed the way we think and the way we act. If you think that is too bald a statement, think about what is happening currently in China, a market NZW believes could be one of our largest within a decade.
While government control means there is no Twitter in China, there is an equivalent - Weibo and 270 million people currently operate a Weibo account. 47 percent of the average Chinese person’s spare time is spent on Weibo (that by the way is the highest in the world). And what’s more, 97 percent of purchasing decisions are influenced by what a person has read on Weibo.
This is no fad, it is not something that only adolescence are into – this is very real marketing at work. At least one New Zealand company is currently operating a Weibo account in China and they are reaping the rewards.
Constant messages being sent out, are personalised to the potential consumer, with news, tasting notes, reviews and general educational blogs.
Given the economic downturn, developing new marketing tools can often be the first thing to go by the wayside. Yet history has proved that this is exactly the time that companies should be upping their marketing budget.
During the depression, (1930s, not 2008) American car manufacturer Chevrolet decided to increase their marketing budget rather than drop it. At the time they were number five in terms of sales rankings, with Ford having held the number one slot for years. However, as Ford chose not to advertise, Chevrolet began making inroads and within two years achieved number one status.
Proctor and Gamble (P&G) produced household products, and despite calls from shareholders to cut advertising during the depression, the company decided to increase spending. Again within a short period of time, P&G went from being a small producer, to a major one – and quickly became a household name. Kellogs breakfast cereals did a similar thing, now look at the size of the company.
Just because there is a downturn in the economy, it doesn’t necessarily mean people stop spending. Instead they become more selective, making purchasing decisions based on service, quality, pricing and of course profile of a product. Looking back to the great depression, the loyalty gained during the bad times, tended to stay with consumers far more than the loyalty that had been developed prior.
If New Zealand wine wants to retain its image as a quality, specialised producer, then we need to ensure the world doesn’t forget about us. We have to keep our name and our reputation at the forefront, because there are plenty of other countries who will be more than happy to leap into our position if we don’t. ν
