Last Thursday, I attended the latest instalment of the Debatsdevi conferences on the wine sector in Catalunya. This session looked at
promotional mechanisms for the sector.
Of interesting note from Trini Bofarull of the regional government promotional agency
ACC1Ó was the concentration of the wine sector producers in 3 large companies that have combined sales of over 1 billion euros and 634 small to medium sized producers, one-third of which invoice less than 500,000 € per year.
This means that promotional efforts for the Catalan wine sector will be either company / brand focused, or made by regional government. The fact that Catalunya has 11 D.O.s (plus the majority of Cava D.O. production) results in less focused promotion, as compared with regions that represent a single D.O., such as Ribera del Duero, or even La Rioja (one D.O.C. with three sub-regions).
But clearly regional government has a role to play, most likely in acting as an impartial arbiter in cooperative promotional agreements of smaller wineries that bind together. Just how likely could be to happen, or how effective it would be for the companies involved, is not clear. Because, when it comes down to it, the item on the shelf has a brand, a package and a price, which are more meaningful (generally) than the D.O. from which it comes.
So what can be done: Jaques Thebault of the French promotion company
SOPEXA suggested that innovative cross-category promotions can be used to capture attention. He referenced campaigns that promoted French cheeses and Spanish wines. This could be used by a specific wine brand with another recognized brand outside of the drinks area, or even outside of the food sector.
Promotion remains a difficult task. The companies with sufficient budgets prefer to promote their products. The effectiveness of general region or D.O. campaigns is debatable, with a major problem being the lack of connection of consumer perception linking the region with brands. Government subsidy of company brand promotion would inherently run the risk of inciting taxpayer rage (why not build new schools instead of promoting “luxury” goods).
Should there be public promotion of regions?
Or is this a waste of money, time and effort?
Labels: Events, Marketing