Archive for the ‘Consumer marketing’ Category

Spot the wine blog – updated

Friday, September 25th, 2009

How would you like to share a glass of wine with 700 potential new readers of your wine blog?

The Wine Gang have offered me the opportunity to showcase a small number of UK bloggers at their upcoming The Wine Gang Christmas Fair on November 7th, 2009 at Vinopolis. In exchange for spreading the word about their event (which I would have done gladly) and a little blog building expertise, I am being given the opportunity to bring 3-5 bloggers along to the show with me to taste the wines and showcase wine blogging to a community of wine lovers.

The Blog Spot

I have a small area in the show where we can set up our laptops with free wifi (for us, not the general public I’m afraid), power and the space to speak to wine lovers about our blogs, our views on wine and what they can learn about wine from bloggers. This is called the ‘Blog Spot

I believe that this is a great opportunity for bloggers and readers;

  • Bloggers can meet their potential target audience and find out about what interests them, what sites they read (if any), what motivates their wine buying and what wine lovers really think of wine blogging. These blogs will be exhibiting alongside some of the biggest names in UK wine retail as well as distributors, brands and generic bodies. It is an amazing opportunity to create a brand new audience for your blog content
  • Wine consumers can learn what motivates bloggers to go to the efforts of maintaining a blog, usually for no reward (except appearing at wine tastings) and what their particular passion is. It is an easy way to find some great new sources of wine information to complement their own wine buying research and maybe even new friends to share experiences with.

Want to come along and feature your blog?

1. Who is eligible?

If you are based in the UK and write a blog on any topic, but include wine regularly (but not necessarily exclusively) then you qualify. This offer is open to wine bloggers, food bloggers, travel bloggers and anyone else who likes to talk about and share their thoughts on wine.

2. What do you need to do?

Create a post on your own blog in the next 10 days (published before midnight, Tuesday 6th October, 2009) on the subject of “Buy Smarter and Drink Better Wines” (The Wine Gang strapline). Interpret this as you like! You can write in your own style, in the context of your own blog and for your audience, even produce a video or any other format content, but we want to hear what YOU think about how consumers can learn more about wine and improve their appreciation of better wines.

Most importantly, you need to link back to this post and to the new The Wine Gang Live blog so I know that you have written it (it wouldn’t hurt to leave me a comment or notify me on twitter as well, just in case).

All participating posts will be read, and The Wine Gang and I will select from these the ‘best’ entries. Unfortunately I can’t give strict criteria as I want to leave you free to interpret the brief as widely as possible, but we are looking for creativity, a good sense of how wine appreciation can be improved and of course for those ideas that can encourage more people to enjoy wine, responsibly!

I will also try to feature as many as possible of these posts on The Wine Gang Live blog at: http://thewineganglive.com

Those selected will be notified before October the 12th so you can make plans to be at the show, but please put Saturday November 7th, 2009 in your diaries now!

I hope you agree that this is a fun and exciting opportunity for wine bloggers and wine blogging, and I look forward to reading your posts.

UPDATE 06/10/2009: Today was the deadline for submissions, but I have been too busy to remind people about it. I already have a number of candidates, but I would like to spread the word a little further, so I am extending the deadline to the end of this week (ending on Sunday 11th October). Due consideration will be given to those who did get their posts up for the original deadline, of course!

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The case of Majestic’s big small announcement

Tuesday, September 1st, 2009

I just heard via two sources on Twitter (isn’t it great?) that Majestic are about to radically change their business model and potentially make them an even greater player in the world of wine retailing.

Now Majestic’s minimum purchase it to be halved to only 6 bottles

Until now, Majestic required consumers to buy a minimum of 12 bottles at a time. Their “warehouse” model of large stores, plenty parking and knowledgable staff had  made them a favourite of keen wine drinkers.

However, the vast majority of UK wine drinkers do not buy 12 bottles at a time. Most buy 1 bottle for a specific evening, or maybe 2-3 if on a promotion. This made them a ’specialist’ as opposed to a regular ‘wine shop’ in the minds of most consumers.

The theory has been that by buying in larger quantities, you could take advantage of more volume deals and get a better price overall for your wine. In practice I wonder quite how much better that price was unless you were really picking the promoted lines, but …

Despite targeting a relatively small number of wine drinkers, Majestic has been enormously successful in the last few years, especially if you compare them to their peers; Oddbins, Wine Rack/Threshers and pretty much any other high street wine retail name. It makes a BIG difference to have 1 customer walk into your shop and buy 12 bottles with an average price around £6-£8 and therefore spending £70-£100 instead of them walking out with a single bottle, no matter how expensive.

… spare a thought for the independent wine merchant struggling to survive

Now Majestic’s minimum purchase it to be halved to only 6 bottles. Clever, or crazy?

  • On one side, getting consumers to move up to buying 6 bottles is easier than jumping from 3 to 12.
  • It means that the wine consumer on a budget who already buys at Majestic might feel less guilty about going back to the store to “only” buy 6
  • Many modern flats do not have space for storing 12 bottles at a time (sad to say)
  • Majestic is obviously hoping that their “£2 off per bottle if you buy 2 or more” type discounts will encourage shoppers to buy more than 6 anyway (I always seemed to buy more than 12 I admit)

However, it risks upsetting the delicate balance they have achieved that has made them successful.

12 bottles was not a ‘legal’ requirement, at least not once you could mix & match your own. It was simply the business saying “you will buy 12 bottles or we won’t sell to you”.

People accepted that, in part because 12 bottles was a psychologically significant number (as the number of bottles in a standard case measure). How will consumers react to this being changed? Happy that it is now “only” 6? Or will they wonder why they have to buy 6 at all, and why they can’t just buy 3, or 1?

Also, I’m certain there were those who bought extra bottles to fill their 12 bottle quota. What happens to those purchases?

It is a bold move that will hopefully attract some of those customers who like wine and knew of Majestic but for whom 12 bottles and the thought of £75-a-visit were a substantial barrier.

Let’s also hope it encourages more consumers to make wine drinking a more planned activity.  A little research can make the appreciation of the wine so much greater.

Finally, spare a thought for the independent wine merchant struggling to survive in your town, village or high street. This potentially makes their life even harder, but maybe you could learn about new wines with Majestic’s offers and education, then go exploring the wines of smaller wineries and regions with the help of your local merchant?

Good luck in your wine adventures!

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Coffee and wine

Monday, July 27th, 2009
A Starbucks coffee shop in Leeds, United Kingdom
Image via Wikipedia

It seems that Starbucks is about to start selling wine and beer alongside its coffee in New York Seattle.

Is this a victory for common sense and the treatment of the public as responsible adults, or something else? Sadly, it is probably 99% something else: financial self-interest.

Starbucks are in a whole heap of financial trouble and looking for ways to turn around the business. Their coffee brand has lost much of its lustre and now they have too many outlets selling too little coffee to keep shareholders happy (never mind all the jobs they provide). So, a new model is to be found.

Is the idea of alcohol served in a coffee led retail space revolutionary? Not at all if you have ever visited France, Italy, Spain and pretty much all of Continental Europe. Unfortunately it says a lot that this is not the norm in the US, or in the UK.

It worries me though, not because of what they are doing, but because of why they are doing it.

This will be one of the first experiments on liberalising the straightjacket of alcohol licensing in the UK and US, and as such it will be watched carefully and treated as a case study. If it were to be done properly, the staff in the local area would select suitable drinks for their clientelle, one they had a relationship with, to ensure they were selecting the mix that would be right. In practice it will be treated as an auction with the biggest brands bidding to be listed and ‘marketed’, and there is every chance the customers will not be interested.

Will that do anything for Starbucks?

Maybe in the short term, but if it is a failure in the medium to long term, it will not only be bad for Starbucks, it will make it that much harder for any well intentioned cafe owner doing it properly.

I must say I am very pessimistic about it working in the UK if all else stays the same.

If you like good coffee, like me, you will realise that the very robotic uniformity and ‘global solution’ approach to serving coffee that is killing Starbucks’ coffee brand is total anathema to the real world of wine and beer.

Dear Starbucks, don’t you realise we are laughing and crying when you say:

“We’ll be equally as proud of our beer and wine as we are of our coffee,”

PLEASE do this properly, or not at all!

Oh, and by the way, I’m available at reasonable rates to advise on implementing this in the UK, and while you are at it, I have an idea that will REALLY change the business – feel free to ask :)

Update: if you are interested in these two subjects you might also want to check out: http://coffeelikewine.blogspot.com/

Further Update (23:34): In case you didn’t decide to follow the link in the first paragraph, and have not read this story elsewhere, Starbucks is trialling this coffee + wine + beer concept in only 1 store in Seattle to be called “15th Ave. Coffee and Tea inspired by Starbucks” (except missing the inspiration bit in the name). This is not (yet) an announcement that they will do the same in the main Starbucks branded outlets.

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Malo what?

Friday, July 10th, 2009

Do you know what Malolactic Fermentation is?

If you do, you are probably amongst the tiny, miniscule, one-bubble-out-of-a-bottle-of-champagne’s-worth fraction of people in this country, including most wine lovers, that do. Congratulations!

In that case, I wonder whether this advert by Champagne brand Lanson that I saw this week on the London Underground is for you? It is certainly not for the average Champagne drinker and wine consumer.

Lanson Advert

Lanson Advert

The full text of the advert is:

“Since 1760, we’ve crafted Champagne the traditional way, choosing to avoid malolactic fermentation and insisting on 3 years’ cellar ageing. What emerges is an uplifting, crisp and fresh tasting Champagne with an exceptional purity of fruit.”

Does anyone in the wine business believe that consumers on the underground care all that much about the conversion of Malic Acid into Lactic Acid? I’m afraid that at best this advert was a bit of a waste of money for a good Champagne house, but at worst it confirmed that Champagne (and wine in general) is for snobs that know words like “malolactic fermentation”, “cellar ageing” and “purity of fruit”.

C’mon Lanson! Please use your undoubtedly strong brand, and your marketing budget, to do something a bit better and encourage the wine conversation. Oh, and while you are at it, you might like to improve your website – THAT is where you can reach out to wine experts and provide details of your winemaking.

Now, I wonder if there’s a name for the process of converting harsh, unapproachable advertising into well-rounded, consumer friendly material instead?

UPDATE 13:39 10/07/09: It occurs to me that really this is a classic error of selling Features not Benefits (loads of articles if you search, but this is a good one on selling the zaz.

COMMENTS: Thanks to all those who have commented on Facebook and on Twitter – it would be nice to pull some of that discussion together here too. Anyone?

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Chablis: Chic or Not

Friday, June 12th, 2009

On Wednesday I was invited to taste through a small range of examples of 2008 vintage Chablis with Arnaud Valour of the Burgundy Wine Board. Naturally I accepted – and it had nothing to do with the branded gifts I took away (although I’m particularly grateful for a copy of Rosemary George’s wonderful book; The Wines of Chablis)

I’d say that the wines were great, but they were only a selection of 6 bottles (blind – i.e. without saying which they were) and chosen to be the best of the region in this vintage, so you’d expect them to be. I was particularly impressed by the quality and easier drinking style of the Petit Chablis wines – they had more character than I really expected. For those unfamiliar with the Chablis hierarchy, this is:

  • Petit Chablis – the least expensive, simple, crisp wines
  • Chablis – a range of wines, but fresh, delicate and with hints of “minerality” (like the aroma of shells on the beach – see video)
  • Chablis Premier Cru (or 1er Cru) – more complex wines that must come from only 40 or so vineyards
  • Chablis Grand Cru – the most intense, age-worthy and usually stunning examples; only 7 vineyards on one slope go to making these

I asked Arnaud what he though were the unique style characteristics of Chablis, and why people should chose Chablis, and I recorded the answer (I apologise for the poor quality sound):


Of course, the wines got better as we went up the scale, getting more rounded, more complex and showing those classic Chablis characters. It does seem that 2008 will be a good vintage for the region. It also seems that sales of this premium region are as affected by the credit crunch as everyone else, so you may be able to pick them up for a decent price when they hit the shops and merchants.

For the premier cru wines (I tried an interesting organic 1er cru) and above, it would be a crime to drink a 2008 now as they’ll develop over the next decade, but the trouble will be finding someone who will keep them for you, so it might be worth getting a few and keeping them in a cool corner for a future special occasion.

Chablis Online

But this blog isn’t about tasting wines or about specific regions. I also spent a while asking Arnaud about the online marketing and social media plans of the Chablis region. After all, Chablis already has brand recognition around the world, you would think it could leverage this to its advantage online too.

It seems that there are plans to launch a new site at http://www.chablis.fr – I see there is a site there now, but it has numerous flaws, so I’m hoping it is a work in progress. Considering how controversial internet marketing of alcohol is in France these days, it is good to see that not everyone is abandoning these efforts. Apparently Chablis is out to broaden its appeal to “women and younger consumers”, mainly, it appears, through tasting events in Chablis itself. For the rest of us, the plan is to focus on the wine trade. Unfortunately the wine trade is already familiar with the wines, and with hundreds of regions competing for their attention, I wonder how effective this will be (it got me writing about it I suppose). I was specifically told they had no plans for Facebook fan pages, blogs or twitter accounts, which unfortunately fits the stereotype of French wine marketing.

Arnaud himself was very articulate, friendly and spoke excellent English, but there are only so many people he can meet in person. Surely they could find a way to “amplify” his message through social media channels easily enough?

In short, Chablis continues to be a great wine, it continues to be a reasonably expensive wine, and it doesn’t have much new to say about itself from a marketing perspective, so continues to speak to the same consumers. If you buy it, you’ll probably keep doing so. If you don’t, what reason have you to start?

Question: What does Chablis mean to you?

I wonder if I could urge you to go and taste a bottle of Chablis, any style, any vintage, and let me know what you think of it? How did you find the wine? Did you like it? Was it good value for money? How was it being sold compared to the competition? If you would consider undertaking this mission, please do let me know what you thought here in the comments.

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No charge

Thursday, June 4th, 2009

Here’s an idea for wine brands – it’s free, or should I say “there is no charge attached”

As the BBC pointed out yesterday, people in Britain consider Broadband at home “essential”, like water or electricity. I agree. I’d also add, that the next move will be to demand it outside the home too, so they can continue their daily business – work, shopping and conversations, on their mobile devices.

There are more and more hotels, bars and restaurants are offering Wi-Fi (although hotels try to charge for it which is just wrong!) which is a great idea – although few are using this properly to their advantage (I’ll post on that as well soon). But as this becomes more common, it will lose its power to impress. Once it is expected, it will only be an issue if it is NOT available.

What no-one has yet done in the restaurant trade (to my knowledge) is address a major shortcoming of all this mobile interaction – access to POWER. CHARGE. ELECTRICITY.

A customer could easily walk into a bar with any combination of laptop, iPod, mobile phone, camera or games console. Want to be their friend for ever? Offer them access to power points (or should I say sockets). The clever bar manager will also have a set of chargers for the most common tools & brands (iPhone, Blackberry, Nokia, PSP, etc.) available which customers can borrow FREE.

There have been many times I could have been sharing my experiences of the food, wine, and the location but I couldn’t for fear of running out of battery (in my vocabulary for obvious reasons this is now called “twitter juice“). You should have seen the look I got when I asked recently if they happened to have a charger.

If you are a wine brand with ANY form of online presence, why not brand these tools and make them available instead of just sending out more ice-buckets or menu covers?

I’ve even got a name for the branding campaign – “No Charge”

Just a thought. If you do something like this, let me know!

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On wine and computer games

Wednesday, January 28th, 2009
A Nintendo DS. My second attempt, this time wi...
Image via Wikipedia

I thought I’d share a quick thought which occurred to me as I was preparing a presentation concerning wine tourism:

Question: How do you sell games consoles to older adults? How do you reach a new audience?

Answer (or one of them): You don’t focus on features like graphic speeds, but on benefits.

Case in point; Nintendo. The Wii Fit isn’t a “games console and controller”, it is a home fitness tool. The Nintendo DS Brain Training isn’t a game, it is mental exercise. Clever!

What are the lessons for wine tourism, and wine for that matter?

Firstly, we need to move beyond the “my wine is a product of the best grapes and wine making processes”. This is almost a given. It has some attraction for the enthusiasts, just like graphic card speeds do for others, but it doesn’t attract a new audience.

I wonder if you can think of any innovative wine communications/marketing examples out there? I’m a little hard-pressed myself, to be honest.

There are a few “Wine as Luxury Lifestyle Product” experiences, such as the Marques de Riscal Hotel & Spa, or “Wine as Environmentally Responsible Product” such as Banrock Station, but these are very few.

If you have any thoughts, or know of anything out there, do drop me a line.

Now, back to my Wii (the Fitness can wait, I’ve got Quantum of Solace to finish)

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Would you give your details to a “Naked” stranger?

Tuesday, November 25th, 2008

Unfortunately this isn’t as exciting as it might first appear, but it has potential, so let’s call it titillating.

I was sent a link to a soon to be launched wine company, excitingly called Naked wines. Unlike some other recent developments in nudity and wine (see http://www.slurpswish.com/ also known as the Naked Wine Show), the site does warn you up-front (so to speak) in their only Terms & Conditions that “Nudity is optional”.

The main thing that caught my attention was the fact that this site is recruiting 100 “tasters” to receive 3 bottles of FREE wine in order than they can taste and review them. This is, at least I believe it is, a means for the new company to select a range of wines that really appeal to their target customers. That is a great idea.

There is a rather questionable mission statement of sorts on the site that says:

… to cut to the chase, we believe that UK wine drinkers are being ripped off.
How? There are far too many over-priced, over-rated wines wrapped up in ‘The Emperors Clothes’ i.e. mediocre wines tarted up in fancy packaging.

Of course I would agree that there are many wines that do fall into this category, but “fancy packaging”  is not the main fault, in my view over-reliance on price promotions is, and there are no guarantees about pricing here. They seem to be creating an online retailer, and therefore a form of mail-order business, and fancy packaging doesn’t play nearly as big a role here as it does on supermarket shelves. At least the wines are being selected at least in part by consumers, so hopefully the wines themselves will be worthwhile drinking.

So, these 100 people have a great deal of responsibility to carry. Who are they looking for, and what are they going to do … and for whom?

No idea!

I thought I would try to find out a little more about this company and what they will actually be doing. Unfortunately, there is no information on this available anywhere on the site.

Being a curious type, I decided to sign up to their site. I was asked a few very basic, and slightly leading, questions about my age, wine buying habits and interests, and told that my application would be reviewed and then told if I am selected (I did get a £40 voucher for my trouble). I’m not sure how what they asked for would really differentiate one applicant from another. In fact, I eventually found out that they had already filled all their places because of an “overwhelming response” which to me implies that since they have not taken the form offline, what they are doing now is simply building their database!

What concerned me is that they are asking for quite a lot of information about the consumers, whilst providing absolutely nothing at all about themselves. Would you be happy to hand over your details to this stranger? There certainly isn’t a privacy policy statement that I could find.

Naked wines might have an exciting new model to offer, it shouldn’t be too much to ask that a company setting out to use the internet to build this might just provide some details about themselves, should it?

Anyway, watch this space, and we can hope that recent economic problems do not stop this business from doing something new.

===

Since I first started writing about this, I have read on Alastair Bathgate’s excellent wine blog “Confessions of a Wino” that one of the people behind Naked wines is Rowan Gormley who used to run Virgin Wines (who seem to be doing quite well right now) and you do get a certain echo of their style on this site. It also refers, interestingly, to this being the Last.fm of wine. Hmmm.

Does anyone else know anything about this project? What do you think?

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“It’s grim out there”

Thursday, November 13th, 2008
Mr Lawrence Wine Bar, Crofton Park

Image by RobWinton via Flickr

Whilst entirely subscribing to the idea that recessions and “bubbles” (and now “crunches”) are to a great extent about a state of mind and driven by an irresponsible media (including blogs!), and therefore not wishing to add to the misery, I think it is important that bloggers are seen to recognise the real difficulties being faced by businesses in our various spheres of interest.

Even if our own jobs may not be directly involved, if we write about wine (or beer, or whetever) then we rely on producers, shippers, importers, distributors, retailers, restaurants, bars, pubs and a whole host of other suppliers. I get to speak to a lot of business people in my job, and there is a general mantra out there which goes something like this:

My business is theoretically fine, I’m doing the best I can, but I can’t be sure that other businesses I rely on will not suddenly fail, nor that some unforseen event will have a catastrophic effect on me. My customers are also not in trouble, but they are being very cautious and spending less, particularly after all the recent bad news. I’m holding on, but this needs to pass quickly!

Each reticent customer has a knock on effect on others up and down the chain; raising costs, slowing payments, spreading nervousness, eventually driving people out of business.

We are regularly reminded that the “engine” of the economy for the last decade or so, particularly in Europe and the US, has been consumer spending, financed by cheap credit and rising house prices. Oops!

So, as this is not (for good reason) an economics blog, does this have to do with wine culture and the wine conversation?

The long period of growth has encouraged the belief that things would always be good (anyone else remember the “end of history” comments after the fall of the Berlin Wall?), so the idea was to capitalise on this and “move upmarket”. “Premium products”, “Trading up”, “Luxury brands”, “Icon wines”, are all familiar terms, and it spread to all sectors. The UK, starting in London and the South East, turned its pubs into “Gastro Pubs”, more and more “Style Bars” opened up, and lots of “Clubs” emerged too. Unfortunately, everyone around the world has heard of British Pubs, but I doubt anyone really talks about British Bars.

Wine consumption in the UK is tied to this drive up market. Wine has been seen as a luxury product that those with the time, money and interest could get to enjoy, and therefore, as more of us felt we did have that time and money, we began to drink more and more wine. This was also good for business, because being a luxury product, these outlets could charge more for wine, including a healthier profit margin. In turn, everyday products, like beer, began to compete on price to drive volume, and the margins were lowered. It made more sense for pub owners to create spaces where rich, relaxed and unworried customers would want to gather to buy more luxury products. Spending on these “evening leisure activities” grew massively.

The result is that the local “community pub” fell out of favour to such an extent that they closed, were converted to upmarket outlets, or were sold off to developers to create more trendy living spaces.

Then, the new “Age of Austerity” dawned. It happened 3 months ago. With the credit crunch, possible recession and all its implications, those “rich, relaxed and unworried” customers have evaporated. One friend who runs a great local bar told that around 12 weeks ago the numbers of customers coming to the bars dropped like a stone. So how will they all survive? They won’t.

How do you convince a worried customer to go out and spend money that they are afraid of losing in your restaurant or bar? Well, you have to be part of the community, the place these individuals go to talk to friends about their shared predicaments. Unfortunately, many of these places are no longer community pubs where one meets friends, only ‘leisure providers’, and therefore something to be avoided.

There is no easy prescription. Bars and restaurants will struggle to attract a reasonable volume of customers willing to by the range of premium wines, spirits and foods in stock, so they are probably going to change their ranges. I’m afraid to say that the Wine Conversation will struggle. However, not all is lost.

A possible glimmer of hope, and it is faint, is that the drive to reduce costs and prices will be accompanied with a desire for value for money – after all why waste your money at all if it isn’t good value? It might encourage more places to price their better wines more keenly to at least differentiate their offering from others, and the search for these places will encourage more people to talk about “that place with the great value wines” that they found. Wine does not need to be a luxury product (as Tesco’s healthy wine volumes shows), but we do need pricing to reflect that it is now a firm part of the mix available in the on trade.

But, this is also a plea. Not for wine, but for local businesses. Times may be tight for you, but they are equally so for your local suppliers – restaurants, pubs, bars and shops. If you want them to survive, you HAVE to continue shopping with them, maybe diverting your money away from cheaper, but more anonymous, offerings from bigger brands. Support your local businesses as much as you can, and in turn you will see benefits, and hopefully we can come out the other side reasonably intact.

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Airship Photos

Sunday, August 17th, 2008

I’m working on a post with some thoughts about beer marketing (you won’t be surprised it stems from my recent brush with Stella Artois marketing efforts) but in the interim, I thought I’d post a link to my photos so I can share them with those of you who have been following my attempts to get airborne, and those I met on the way that I promised this to.

Click here for the full set (click on the slideshow button for the full effect)