Fox Run Vineyards Marketing Plan

Lauren Brockbank | Brendan Eckner | Nick Myers

Background Information

Background Information

Background Information

Located in the New York Finger

Lakes

Current offerings include:

Rieslings, Whites, Blushes,

Reds, and Sparklings

Participate in wine tours, tastings,

and local events

Organizational values include:

sustainability, consistency,

variety, freshness, and integrity.

External Analysis

External Analysis: Local Wine

Growing 21% in grape production by volume and 22% by value

In 1994, there were fourteen wineries on Seneca Lake and, presently, there

are forty-four

Annual visitors at Fox Run peaked in 2006 with 80,000 visits and now is

experiencing ~47,000 annually

Comprised of 240 active wineries, as of 2008

The most well-known and highly regarded grape varietal is Riesling

82% of wineries in New York are defined as farm wineries, but they represent

only 5% of wine production

External Analysis: National Wine

Wine leads consumption of alcoholic beverages: 59% drink wine, 57% drink

beer, and 54% drink spirits

Dollar sales of wine grew 10% between 2009 and 2014 when adjusted for

inflation

Slowing growth is forecasted to be 4% after inflation due to consumers

being less loyal to wine and more willing to try other alcohol

On-premise sales of wine have flat-lined

Increased competition in the wine industry makes it is difficult for wine

companies to have any leverage with distributors

External Analysis Overview of Wine

External Analysis: Trends

Increasing popularity in craft, local and artisan alcohol

Consumers want to be in the know and demonstrate they have a taste for

the finer things in life.

“Secret” tastings, advertised via social media or word-of-mouth

Consumers are less concerned with traditional formalities

40% of wine drinkers are interested in trying wine in boxes, pouches,

and plastic bottles

50% say wine in a screw top is as good as wine in a cork top

33% of wine drinkers try wine with added ingredients like cinnamon and

pepper, 55% ages 25-34

30% mix wine to make cocktails

External Analysis: Customers

Millennials are slightly more likely to drink beer as opposed to wine

Home drinking is preferred by young drinkers

Young consumers are more likely to try many kinds of alcohol, in fact it is

considered a source of pride to have tried the most amounts of alcohol

Older drinkers are less price and quantity sensitive, and are more likely to

make their own decisions with wine because

of their established tastes.

External Analysis: Poll

External Analysis: Segments

Three prominent segments in the

wine industry:

Frequent Drinkers

On-Occasion Drinkers

In-Moderation Drinkers

External Analysis: Prices

Frequent Drinkers

46% male, 54% female

Represents 30% of the sample and

is primarily non-Hispanic people

ages 45 and over

Pre-established tastes

Less concerned with packaging -

“A screw top is as good as a cork

top.”

Unlikely to spend more than $10 on

wine

Frequent Drinkers

On-Occasion Drinkers

Largest segment - comprising 41%

of the sample

Consumers ages 22-44

Evenly divided between men and

women

Primarily single

Willing to pay a high price for

quality

Particularly interested in sparkling

wine like champagne

Care about the image of the wine

they drink - imported

On-Occasion Drinkers

In-Moderation Drinkers

Represents the smallest segment,

29% of the sample

45% purchases wine at least once

per week

Not as likely to pay for the high

prices of imported wine

Focused on:

Local

Health

Quality

In-Moderation Drinkers

Internal Analysis

Internal Analysis: Management

Completely family-owned

Progressive owners Scott and Ruth are prominent in the Finger Lakes wine

scene

Winemaker Peter Bell has been an employee for 18 vintages

Inventory Manager, Pete Howe, has been with the company for twenty

years and has assisted in the vineyard and winery by operating the

bottling line

Sales Manager Dan Mitchell and Marketing & Events Manager Marisa

Indelicato serve in key roles

Overall, Fox Run benefits from a seasoned management team

Internal Analysis: Production

Produces 15,000 cases of wine annually from grapes grown both on the

organization’s 100-acre estate as well as grapes purchased from local

growers

Fox Run grapes are all of the vitis vinifera variety and the locally grown

purchased grapes are typically a less-expensive hybrid

Uses local suppliers as much as possible: the tanks in the winery were

manufactured by a Geneva, NY company, the bottles, corks, and closures

come from Waterloo, NY, and the labels are produced by a Syracuse, NY

company.

Harvest time is generally from September through the end of October,

depending on the growing season

Internal Analysis: Products

Typically thirty different wines offered by Fox Run Vineyards at any given

time

Offers wines that are differentiated based on price point and on

sweetness level; is able to serve a diverse group of existing and potential

consumers

Offers two different Chardonnays and roughly eight Rieslings that, combined,

represent just over 50% of sales by dollar value

Finger Lakes wines are considered to be cool climate wines

This climate is accepted as being more conducive for producing lower

alcohol, higher acidity, and food-friendly wines

Internal Analysis: Marketing Efforts

Overarching idea of Fox Run’s marketing strategy is to offer a wide variety

of wines that suit the needs of a diverse population of wine drinkers

Wine drinkers begin preferring less expensive sweeter wines, and as their

tastes mature, they can be up-sold to other, higher margin wines

Loyalty-driven Wine Club with benefits for members that include discounts

and exclusive access

A monthly newsletter is sent with the latest news including recent awards,

events, and new releases.

Promotes off-site by visiting liquor stores and restaurants and attending

special events

Manages labels and shelf-talkers for stores as well

as social media and internal events

Internal Analysis: Channels

Wines in the United States are sold through a three-tier system comprised

of producers, distributors, and retailers

Since the end of prohibition, liquor laws have been governed by individual

states - Fox Run has a different distributor in each state their products

are sold

35% of Fox Run wines are sold on-site in their tasting room with the other

65% coming from distribution

Nearly 75% of wines sold through distribution are sold in New York State

Of the wines sold in New York, over 80% are sold in upstate New York

Competitive Analysis

Competitive Analysis

Chateau Ste Michelle

Target Market: Females 25 - 45

Product and Pricing Strategy: Top-Selling Brand, Riesling, $8.00 - $10.99

Channel Strategy: West-Coast (Grocery Stores), Crowd-Sourced Wine

Positioning and Advertising: Sustainable, “A Company that Cares”

Competitive Analysis

Dr. Konstantin Frank

Target Market: Purists, Wine Connoisseurs

Product and Pricing Strategy: $12.99 - $22.99, Separate Labels for Different

Price Points

Channel Strategy: Liquor Stores, Online

Positioning and Advertising: Oldest, Award-Winning, European Founder

Competitive Analysis

Ravenswood

Target Market: Males 25 - 35

Product and Pricing Strategy: Zinfandels ($7.99 - $31.99), Different Series

for Different Price Points

Channel Strategy: Constellation Brands - All States

Positioning and Advertising: “No Wimpy Wines”, Rustic, Toughness

SWOT Analysis

SWOT Analysis

Target Market

Target Market

Target Market

Target Market

Target Market

Value Proposition

Value Proposition: Benefits Offered

● High Quality

● Cool-Climate Wine

● Community Involvement

● Variety

● Commitment to Sustainability

● Management Experience

● Events

Value Proposition: Not Offered

● Wide Distribution - Only 9 States

● Retail Location Outside of Vineyards

● Alternative Packaging

Value Proposition Statement

“Among young, cultured, locally-driven, green

adventurers, Fox Run Vineyards is the brand of cool-

climate New York Finger Lakes wine that delivers unique

coaxed, not wrestled high quality wine because Fox Run

Vineyards filters our wines as little as possible to allow for

the true character of each grape variety to shine through.”

Marketing Objectives

Marketing Objectives

Strategies and Tactics

Strategies and Tactics

Implementation Plan

Implementation Plan

Implementation Plan

Questions + Ideas

Citations

Bloom, Beth. "Wine - US - October 2014." Wine - US - October 2014. Web. 18 May 2015.

"Welcome to Passport." Euromonitor International. Web. 18 May 2015.

Gordon, Jim. Ste. Michelle Dominates $8-$10.99 Wine Sales. Wines & Vines. Aug. 15, 2012.

http://www.winesandvines.com/template.cfm?section=news&content=104230

Newman, Adam Andrew. Marketing Wine as a Respite From Women’s Many Roles. The New York Times. Aug. 29, 2012

http://www.nytimes.com/2012/08/30/business/media/marketing-wine-as-a-respite-for-harried-women.html?_r=0

Perdue, Andy. Ste. Michelle creates Anew Riesling label for women. Great Northwest Wine. Jun. 9, 2013.

http://www.greatnorthwestwine.com/2013/06/09/anew-riesling/

Fox Run Vineyards Website - http://foxrunvineyards.com/

Marketview Liquor Website - http://www.marketviewliquor.com

http://bi.galegroup.com.ezproxy.rit.edu/essentials/company/593902?u=nysl_ro_rinst

http://www.netadvantage.standardandpoors.com.ezproxy.rit.edu/NASApp/NetAdvantage/loadIndustrySurvey.do?task=loadInd

ustriesPage