. Vite Vinifera De Vino's Blog: Marketing Power

Saturday, January 06, 2007

Marketing Power

A few nights ago, a customer told me about a client of hers that was raving about a "higher end" Pinot Grigio that he gets in a restaurant in New Jersey. Right away, I said "I'm afraid that might be the Santa Margherita." My customer checked the restaurant's wine list online and found out, sure enough, that the "higher end" pinot grigio was the Santa Margherita, selling for $45. I thought it ironic since they also had the Rosazzo Pinot Grigio, which is a far better product in my opinion, on the list for just $28. As I reflected on this story, I thought about the power of marketing.

Santa Margherita spends millions of dollars in advertising and public relations, as do other wineries like Castello Banfi. The budgets for giants like Gallo or Yellow Tail are in the range of tens million dollars. At some business wineries, marketing strategy is so important that they invest more in marketing than in their vineyards. This outcome of all this advertising investment is that their wines, which are below average for their category, gain an added brand value in the minds of consumers. Usually, I don't like to compare wines since each bottle contains it's own stories and meanings and opinions and tastes can differ, but there is a huge difference (objectively!) between, for example, the ordinary but well-advertised Santa Margherita and an excellent wine at the same price from Ronco del Gnemiz or Cantine Terlano.

It is amazing to me that people are more apt to submit to information from a television just a glorified plastic box, really than they are to their own judgement. I admit that I have a negative opinion of advertising. Maybe it is due in part to my upbringing my parents always reminded me how fake commercials can be when I saw something miraculous advertised that I thought I had to have. And I know a bit firsthand, having played a priest in a television commercial once myself, and I'm no priest! But, the lessons are there for everyone. Just think about how people used to think smoking was safe when in the 60's actors dressed as doctors campaigned for them on tv! Look at those big billboards promoting famous champagne usually consist of beautiful people and some line that has nothing to do with the product itself. Or, the Yellow Tail ad that says "tails you win." You win what? You win yourself a big headache is what you win. In the end, it's a good idea to rely on your brain and your taste, rather than the brain of someone else especially when that other brain has the goal of taking your money and not of improving your life!

I wish you all a 2007 filled with goodness, joy, and exciting experiences, all of your own choosing!

Buona Bevuta a Tutti


Anonymous said...

that priest commercial is awesome!

Anonymous said...

Do you really not understand "tails you win"??? Come on.