Stanford GSB

Stanford GSB

Monday, February 22, 2016

Let's Talk about Luxery Branding

From the last class, what we learned is that when it comes to wine, most producers have to build credibility surrounding authenticity, a beautiful story, and only a reasonable business plan. However, I think this only lasts in the short term; I think to build a wine brand that is ultimately successful-- from what we've seen over brands that last greater than a single generation- you must think in the long; the very long term.

Look no further than Giulio Ferrari who brought Chardonnay from France and never did the Ferrarri family name, but grew Chardonnay and positioned in the market as a grape of flavor that was far unique from any of its introduced predecessors.

And it's really not about the story, nor about the wine either-- what it is about is what consumers want to engage with. Richard Quandt, said, "I think the wine trade is intrinsically bullshit." This is true perhaps only in the trial phase, when we do not know what we are buying, but buy solely based on brand recognition, label appeal, and word of mouth.

So while brand development and package design are important in execution, they are not truly effective, unless the consumer loves exceptional design and packaging and will continue to purchase solely on this merit. Visually appealing packaging invites peak interest and trial; but once trial period is over; clients must repeat the entire process and at this point- taste would reign supreme. So even if brand essence and the story and packaging and the design deliverables are emphasize- they are only emphasized for the trial period; but moreso, the taste carries ultimate weight for a repurchase and a recurrence in experience. Especially, if they want to sell more than one bottle per customer.

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