Wayne Mackay University of Florida VAC Industries and Opportunities Committee January 2014.

Wayne Mackay

University of Florida

VAC Industries and Opportunities Committee

January 2014

Rollins College Viticulture Marketing Studies – An Overview

Question: How do we increase awareness of Florida wines?Consultation with Jim Trezise, President of the

New York Wine and Grape FoundationVAC partner with a university business school to

develop a plan for promoting Florida wine industryRollins College Crummer Graduate School of

Business accepted proposal from VAC. Jan. 2010.Economic Impact of Florida’s Grape and Wine

Industries – Stonebridge Research LLC. Jan. 2011.“True challenge for the wineries is gaining access to

the markets”

Background

Project request:Definition: Development of a plan for the

marketing of the Florida viticulture and wine industry including whether to hire a full time person to promote the Florida viticulture and wine industry or to employ a marketing firm.

Rollins Project 1 – Spring 2010

Project request: (continued)Description:

Determine the feasibility of hiring an industry spokesperson or consulting firm to promote the Florida wine industry.

Determine the scope of duties and potential direction of a marketing person or firm.

Determine a timeline for the plan. Plan that would answer the question- Start with a

marketing firm and then progress to a dedicated person using VAC trust funds?

Desired Goal: Have a plan to effectively promote the Florida

viticulture and wine industry.

Rollins Project 1 – Spring 2010

Preliminary PresentationFlorida Wine Industry

Marc Aben-MohaLaura Fourdraine

Christian GeorgieffMonia Ladjimi

Ting Wang

March 12th, 2010

Marketing Tools: Proposal vs. NeedsTool Wines in Florida They are

different Location

Mailing List / Newsletter X X X

Brochures X X X

Local Media Advertisement X X X

Web Advertisement X X X

Billboards and Additional Signs X X

Improve Labeling X

Improve Website X X X

Wine Tasting Trails X X X

Florida Wine Shop X X X

Festivals and Entertainment X X

Wine Club X

Public Relation X X

Costume X

Relationship with Restaurant Chain X X

Marketing Tools: Proposals vs. ReachTool Local Tourists

Mailing List / Newsletter X

Brochures X

Local Media Advertisement X

Web Advertisement X X

Billboards and Additional Signs X X

Improve Labeling X X

Improve Website X X

Wine Tasting Trails X X

Florida Wine Shop X X

Festivals and Entertainment X X

Wine Club X

Public Relation X

Costume X X

Relationship with Restaurant Chain X X

Implementation - External

Dependant on size of company/industry Total annual comp.: 35% of salary in benefits, incentive plan, car Hourly rate based on 48 weeks, 40 hrs/week

Company size Annual sales Total annual compensation

Hourly rate

Small Up to $10 M $92,500 $48.17

Medium Under $50 M $138,750 $72.26

Large $50-$100 M $185,000 $96.35

Major $100 M + $277,500 $144.53

External – Pros

15+ year mktg/sales experience Sources and associates available Hourly pay – work can be suspended No hiring cost Outside thinking / objectivity

External – Cons

Limited understanding of customers Limited knowledge of company’s values/goals Risk of business shutting down

Implementation – Internal

Benefits Median amount % of total

Base salary $49,654 69.3%

Bonuses $926 1.3%

Social security $3,869 5.4%

401k/403b $1,922 2.7%

Disability $506 0.7%

Healthcare $6,103 8.5%

Pension $2,529 3.5%

Time off $6,225 8.7%

Total $71,735 100%

Internal – Pros

Lesser cost More control More task flexibility – not bound to contract In the long run, better knowledge of company and industry

Internal – Cons

Hiring cost Training Long-term commitment Less resources Less experience

Conclusion / Recommendation

Hire internal Marketing Coordinator

Use coordinator to implement desired marketing tools Example

Marketing Coordinator Brochures Improving Websites Trail Total

$71,735 $10,000 $7,000 $62,400 $151,135

Decision that internal marketing person not feasible with the structure of the VAC funding

External marketing firm costs exceeded VAC budget

Proposal submitted to VAC of a Marketing plan that would be subsidized by Seavin, Inc. through the use of Seavin, Inc. marketing personnel

Rollins Project 1 - Outcome

Rollins Project 1 - Outcome

Printing 200,000 brochuresInterstate billboard advertising Branding sponsorship on NPR (National Public

Radio),Print advertising consisting of an insert in the

Clipper publication Internet site www.TryFloridaWine.com

Project request:Definition: A project to develop a detailed,

conventional marketing plan to gain a better understanding of which marketing tools to use, how to use them and how to budget the cost of a promotional campaign.  Items to consider are: 1) regional demographics regarding wine preferences and price 2) label recommendations for uniform message regarding Florida wines and 3) potential wine trails.

Rollins Project 2 – Fall 2010

Project request:Description:

Development of a detailed marketing plan to promote Florida wines to both Florida residents and visitors that would include ideas for the marketing message to provide a uniform marketing message on both labels and marketing messages building on the previous Rollins College project.

Determine the feasibility of wine trails and whether wine trails would include different businesses at different times of the year. An analysis of wine trails in other states such as New York and Ohio may help determine feasibility of wine trails in Florida.

Rollins Project 2 – Fall 2010

Project request:Desired Goals:

Recommendations for a marketing plan that would include ideas for developing a uniform message for the marketing program.Labels, wine trail locations, other businesses that

could be integrated into the wine trails such as pairing food establishments with Florida wines.

Rollins Project 2 – Fall 2010

Joel HalleyJason Halley

Marie RedlingAnne WemhoenerLaurens Willard

FLORIDA WINE INDUSTRY

RECOMMENDATIONS

1) Florida Wine Club2) Promote Wine Club in Magazines 3) Promote Wineries as Wedding Venues in

Magazines 4) Tourist Destination

MAGAZINES

Determined that VAC needed a more focused study that would build on the wine trail and tourist destination ideas.

Developed a third project proposal for consideration by Rollin’s program.

Rollins Project 2 – Outcome

Project requestDefinition: Development of a third more

focused project that builds on the previous two marketing studies presented by the Rollin’s students. The third project would focus on the development of a localized wine/tourist trail(s) with marketing ideas and platforms.

Rollins Project 3 – Spring 2012

Project requestDescription:

Determine the most appropriate place to develop a wine/tourist trail(s) to promote the Florida wine industry.

Determine the best location and the businesses that would best fit with the proposed wine trail(s).

Goals: Create a wine/tourist trail with marketing materials

that could be implemented by the VAC.Build on previous projects that resulted in the

development of the Florida wine promotion campaign Billboards, internet (http://tryfloridawine.com/), and

advertisements .

Rollins Project 3 – Spring 2012

Rollins Project 3 – Recommendations

Rollins Project 3 – OutcomeMarketing Handbook

Guide to develop a marketing strategyIdentifying target

marketBranding strategyMarketing tipsPublic relationsNetworkingWeb StrategyMeasuring Success

Pre-Marketing Return on Investment Report

Post-Marketing Return on Investment Report

For electronic copies contact me at:

[email protected]

Questions?