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Integrated Marketing Communications – the Case of Coonawarra

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Integrated Marketing Communications – the Case of Coonawarra MARKETING Integrated Marketing Communications – the case of Coonawarra Rob van Zanten, Johan Bruwer and Karen Ronning UNDAMENTALLY,Integrated Marketing Commun- is exported while at the same time Coonawarra maintains ications (IMC) refers to the process of integrating and its reputation as a leading wine region through its strong coordinating the various communication elements presence in the Australian domestic market. Fcommonly known as the ‘promotional mix’. The promotional Tw o recent previous articles in the Wine Industry Journal mix is usually considered to consist of advertising, sales pro- (Van Zanten & Bruwer 2002a, 2002b) examined the con- motion, personal selling and public relations, although some cept and process of IMC and discussed its implementation marketers may add other elements such as publicity, direct in the context of the individual winery and the wine region marketing or sponsorship as major components. IMC is there- (see Figure 1 and Figure 2). To provide further focus on these fore not just a concept relating to consistency or synergy—it is aspects, this article further expands and illustrates the also a strategic process (Van Zanten & Bruwer 2002a). This is issues raised in the previous articles by now using the in particular the case of when and how IMC manifests itself at Coonawarra wine region as a framework or industry case the wine region level, in which case the integration of all the study example of a ‘real-life operating wine region’. To marketing communication efforts of the wine region in order achieve this, an intensive information-gathering process to achieve a strong brand identity is of the utmost importance. was adopted that first involved a preliminary secondary The Coonawarra wine region (Geographical Indication) information-gathering phase during which the various ele- is located in the South East corner of South Australia and is ments/aspects involved in the IMC process were identified famed for its unique terra rossa soil and bold-flavoured red and their relevance linked to the wine region’s ‘real-life’ sit- wines, in particular Cabernet Sauvignon. About 5,000 uation. Next followed a process of in-depth interviews with hectares of vineyards comprise the Coonawarra grapegrow- three leading Coonawarra wine producers, namely Ian ing area. The region currently boasts 16 operating (produc- Hollick (Hollick Wines), Doug Balnaves (Balnaves of tion-type) wineries and 22 cellar door sales facilities. Coonawarra) and Bruce Redman (Redman Wines) to secure Around 700 people (full-time equivalent) are employed in the actual facts pertaining to the IMC process. To provide the vineyards, wineries and cellar door facilities. The region further perspectives, the region’s wine industry officer, produces on average about three and a half million cases of Karen Ronning, was also interviewed. Finally, all inputs wine per annum. A significant portion of Coonawarra wine were integrated and synthesised to comprise what follows. Figure 1. The Integration Model (planning group level) Figure 2. The Integration Model (regional level) planned SAY messages INTRA-REGIONAL (planning group) Regional (and winery) websites, promotions strategic plan, & signage, travel REGIONA mission statement, guides & maps, education and training themes & slogans policies and materials SAY L INTERNAL EXTERNAL Intra- regional CONFIRM DO (internal) workshops and seminars, community support, liaison with all stakeholders, CONFIRM DO unsought local media recognition system, conflict support, industry and resolution, initiate and word-of-mouth government body support disseminate market research. interaction at cellar-door, retail communication, unsolicited outlets and information centre; product & service messages media coverage regional fairs, events unplanned messages (initiated by planning group) COMMUNICATIONS COMMUNICATIONS The Say, Do, Confirm Model (adapted). Source: Tom Duncan and Sandra Moriarty. Driving Brand Value (New York: McGraw-Hill 1997); Page 91 102 JULY– AUGUST 2003 > VOL 18 NO 4>WINE INDUSTRY JOURNAL MARKETING COMMUNICATING THE REGION’S BRAND IMAGE similarly rated in the UK and US markets, in terms of As a first premise, organisations such as the Coonawarra Australian wine regions. Doug Balnaves suggests that this Vignerons Association must communicate to survive. success has been achieved by concentrating on what Without effective (internal) communication, coordinated Coonawarra does best. He added: action by the organisation would be impossible (Timm & ‘It will take a region some time to find out what they can Stead 1996). Basically the communication process takes do best, and that won’t happen overnight—it’s a long-term place internally and/or externally. One of the most impor- process to promote a region. Coonawarra has been doing it tant marketing messages communicated outwards to the for 50 years, and we’re still working at it.’ external audiences is the regional brand image. Coonawarra is fortunate to possess a number of charac- Consumers use a cluster of brand elements such as grape teristics that have facilitated the development of its inte- variety, brand name, wine region, and so on, as cues in their grated marketing program, making it an ideal IMC case wine choice decision making. Lockshin et al. (2000) have study. Characteristics such as the unique soil, relative isola- termed this cluster a ‘brand constellation’ and suggest that tion, compactness of the area, and the spirit of cooperation consumers use brand elements in a fluid, non-hierarchical way. that exists among its people, have all helped to reduce the For the individual winery, how important then is the regional formidable barriers inherent with regional integration. As brand element compared to the others, particularly with Bruce Redman says: respect to the development of an IMC campaign? Ian Hollick ‘When you’re in a community that’s probably 300 or 400 believes that the answer depends upon the relative strength of kilometres from the nearest wine-growing region, you tend the regional brand versus the producer’s own brand: to have like-minded people living in the area. And while ‘A new producer with no recognition in the market would that’s been one of our weaknesses it’s also been one of our be mad not to put Coonawarra up in big letters on his label, great strengths. All the vineyards are next door to each because it’s another strength in his bag of tricks. But for an other so basically everyone knows what the other person is established brand, I don’t think it’s all that important doing. That gives us a great commonality of purpose I think, whether that brand is in Coonawarra or not, because because it unites the area and it’s difficult for people to go they’ve chosen to put more emphasis on their individual and find allies from neighbouring viticultural areas.’ brand than the regional brand.’ Integrated marketing means unity of effort—unity of pur- Doug Balnaves agrees: pose, unity of process, unity of goal, and unity of action. ‘Once you’ve established the reputation, it doesn’t really However, integrated marketing is much more than merely matter. For example, nobody really cares which appellation coordinating a wine region’s promotional efforts. Henschke’s wines are in, they’re known to be a high quality Integrated marketing (adapted from Duncan and Moriarty, producer. Whereas in our case, when we started twelve 1997: 16-23) requires: years ago, if we weren’t able to attach Coonawarra to our • The unswerving endorsement and commitment from the label it would have been much harder. So once your reputa- wine region’s peak planning authority; tion gets up to that level it’s not so important in retail; but • Planning that links expertise across a variety of regional for anyone starting from scratch, it’s critical. But, if I was interest groups; going to start anywhere, I’d start in Coonawarra!’ • A genuine customer/stakeholder focus with the purpose of Few will deny that the name Coonawarra has developed a developing long-lasting ‘interactive’ relationships; high level of brand equity in Australia, even worldwide. • The marketing of a regional mission so that it is integrated Bruce Redman believes that Coonawarra is one of the top into everything the region does; and three or four best-known wine districts in Australia, and is • Maintaining a strategic consistency of brand messages WINE INDUSTRY JOURNAL > VOL 18 NO 4 > JULY– AUGUST 2003 103 MARKETING across all regional contact points and sources. probably regarded as a bit of hocus-pocus by some of the Each of these five elements will now be examined in the producers in Coonawarra and some were a little nervous context of the Coonawarra wine region. about marketing per se. It was probably at a production level where everyone felt comfortable. Now people are THE PEAK PLANNING GROUP starting at a marketing level and working outwards, so it’s According to Kotler (1993:19) the Planning Group’s task is quite an interesting conundrum for a small producer who threefold: first it must diagnose the region’s strengths and knows a lot about making wine but not as much about sell- weaknesses. Second, it must develop a vision that is shared ing it; for example, how do you go about marketing an by all, and third, the Planning Group must develop a long- organisation or a district brand?’ term plan of integrated marketing action. Most of the 30 members of the Vignerons Association are There is little doubt that the Coonawarra Vignerons also members of the Coonawarra Grapegrowers Association Association (CVA) is the region’s peak planning authority. (CGA), the latter having a total membership of about 60. The CVA was formed in 1979 with its major aim being that With this degree of overlap, it’s not surprising that there has of promotion, focused in those early days primarily within been relatively little conflict between the two organisations. Australia. The Vignerons Association began with about 12 The CVAand the CGA both contribute towards the employ- members—this number has swelled to 30 members today ment of a full-time wine industry officer (whose duties with production having increased five or six-fold over that include promotion, event management, general marketing period.
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