Archive - December, 2006

The Four P’s

Product, Place, Price, Promotion

They hammer that one home in Marketing 101. To market effectively you must manage all four (plus a few others they added later on) and create the right combination to match your customers’ needs.

So why is wine SO stuck on Price alone?

I know, I know. Many will say that it is all about the product, but in fact the real message about product is so often lost before it gets to the consumer, that it is ineffective. Those in the wine business will tell you stories about the apparently confident consumer asking for Red Chardonnay or what country your Rioja comes from, etc. To those with knowledge, these seems ridiculous. In practice they are often the real example of the level of Product knowledge.

So what about Place (the distribution channel). Well, 80% or so of wine is bought in supermarkets, just like all other products, and this is only going up. There are no strong competitive channels at this point. Independent merchants and online retailers are there, and getting better, but where is the concerted campaign to get consumers to switch?

Finally Promotion. “If only we had [product x]‘s budget” is the usual refrain, and I have used it regularly myself. But in truth we lack ideas for this rather than the money.

Look at Magners. They are probably London’s biggest marketers for ice. Cider didn’t sell, so they switched their four P’s around, rethought their product, invested heavily (and I mean heavily) in distribution (place) and promotion. Did anyone ask the price? I doubt it. It took guts, but it paid off.

So when Threshers (40% off), Sainsburys (25% off) and Tesco (a belated match of the 25% off deal), et al start talking about discounts AGAIN, I find it somewhat depressing. It only feeds the obsession and depletes whatever coffers there might have existed with producers, agencies and retailers for investing in talking about anything else.

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