A few years ago an interesting book, “The Tipping Point: How Little Things Can Make a Big Difference,” by Malcolm Gladwell was published. I’m sure many of you remember it, as it was a national best seller. As we all know, the wine industry has been pouring money into marketing like never before. The concepts behind the “Tipping Point” (and similar analyses) are certainly on the radar of those paid to sell and market wine. That got me wondering, aside from traditional marketing efforts (e.g., paid advertising in traditional media like the Wine Spectator, holding free tastings, etc.), which are often ineffective and certainly expensive, in what ways does the wine industry employ these new-wave marketing concepts and techniques? How has the advent of the internet, and Wine Bulletin Boards in particular, changed the game?
Gladwell argues that the attainment of a tipping point – a transformation of a phenomenon into an influential trend with widespread popularity, with the resulting generation of larger sales returns - usually requires the intervention of a number of influential types of people. “Just as in a disease epidemic model, many outbreaks are traced back to a small group of infectors.” Most trends are ushered into popularity by small groups of individuals, which Gladwell classifies as Connectors, Mavens, and Salesmen:
Connectors are individuals who have ties in many different realms and act as conduits between them, helping to engender connections, relationships, and “cross-fertilization” that otherwise might not have ever occurred. Connectors are the people who "link us up with the world ... people with a special gift for bringing the world together."
Mavens are people who have a strong compulsion to help other consumers by helping them make informed decisions. Mavens are "information specialists", or "people we rely upon to connect us with new information." They accumulate knowledge, especially about the marketplace, and know how to share it with others.
Salesmen are people whose charisma allows them to be extremely persuasive in inducing others’ buying decisions and behaviors. Salesmen are "persuaders", people with powerful negotiation skills, charisma, etc. They tend to have an indefinable trait that goes beyond what they say, that makes others want to agree with them (e.g. news anchor Peter Jennings).
Indeed, Gladwell identifies a number of examples of past trends and events that hinged on the influence and involvement of Connectors, Mavens, and Salesmen at key moments in their development. If individuals representing all three of these groups endorse and advocate a new idea or a product or a brand or even a store, it is much more likely that it will tip into exponential success.
Now, this is just one way of thinking about who or what could trigger success in a marketing effort (wine or otherwise), and I don’t mean to suggest that Gladwell is the font of all knowledge on the subject. And sales success is certainly a matter of degree, with the attainment of a “tipping point” not being the main measure of success. That said, the book does provide us with some interesting “food for thought” when we think about how Bordeaux or Napa, or Winery A or Chateau B, or importer 1 or distributer 2, or wine shop X or internet wine retailer Z, might try to increase their sales success.
Business is business, of course, and the industry can and should do whatever they can within the bounds of ethics and law to sell their product, create buzz, and reach their own tipping point with buyers. That said, that truth does not mean it is not worth analysis of those efforts by us, the target audience, and even by those Connectors Maven, and Salesmen among us, does it? In the least, its interesting to think about.
The book was not written with the wine industry (or any specific industry) in mind, but we can certainly see applications of the concepts discussed. The most obvious are examples of tipping points for certain wines – where Parker praises a wine repeatedly on the Bulletin Board (we all recall the 2003 Clos des Papes phenomenon, as just one clear example). In such cases where Parker speaks and the wine-buying masses follow, the tipping point was due to Parker’s influence. He is an independent critic who does not seek to market wines, but to do the job we actually pay him to do as a critic; indeed, his influence is contingent on his palate being confirmed to us in action, and on the credibility he maintains by not doing anything to generate even an appearance of impropriety (no freebies of wine, discounts, free use of the daughter’s of wine Chateau , etc.). So, though Parker is a Tipping Point waiting to happen, he can only be targeted by the industry in very limited ways.
Though some of the means may be nefarious and ethically suspect, and we should talk about those, some are just brilliant. I would be very curious to know how much Wine Library’s sales have increased since Gary V. began doing the Crazy Eddie of wine routine on the store’s videos and appearing on Leno/Letterman (by the way, I like WL quite a bit, so I am not picking on them, just admiring the phenomenon!). I bet you Gary read the “Tipping Point” and he certainly is no fool!
I’m curious how the wine industry has begun to employ non-traditional means of gathering influential people (Connectors, Mavens, and Salesmen, if we want to use Gladwell’s lingo) and employing them to their benefit. It must be different for each stage of the industry, no?; for example, a run on one expensive wine could be very meaningful to a retailer with a good stock, even if its only 5-10 cases, I would think. What are the ethics involved in a retailer offering a Salesman or Maven a discount, hoping that they will be mentioned on the board or the wine recommended to others?
How do some wines get their brand out, and get it to influential people? The internet and Wine Bulletin Boards like this one must certainly make it easier, no? Who are the Connectors, Mavens, and Salesmen amongst us? Is the internet now the greatest “Connector” of all?
Any thoughts? Any folks in the industry, or in marketing, care to comment?
Posts: 154 | Location: NYC | Registered: Feb 02, 2008
The above post was posted to another well-know Wine Bulletin Board, but the topic was apparently striking a nerve for some reason and the thread was closed without explanation. Before it was closed, of course, the following quote and response was deleted four times by the moderators:
Quote:Originally Posted by [WINE POSTER] "Maybe not, but winemakers are paying attention and react to the board/net as if their business depended on it. I have gotten thank you notes from winemakers after posting a positive TN and phone calls from winery owners after posting mild criticism.Although flattery and attention may be a sales function, I think there is more to it, and it isn't that I write killer notes that the wine board masses take as gospel. I think that people with a stake in specific brands realize how quickly consensus can build. You don't have to be a "saleman" on the internet, and it only takes a couple mavens to establish a narrative. Folks ITB are acting rationally when they reassurre testy board members or provide positive reinforcement for small-time thread killers. My dad used to say in regards to government accounting "a billion here and a billion there and eventually it adds up to real money." With wine, once fixed costs are covered, a case here and a 6-pack add up to thousands of dollars in profit, not to mention a better network to sell the next vintage to. It need not be a tipping point sort of feeding frenzy to be worth monitoring and managing the board.[END QUOTE]
"Interesting. What are the ethics involved in a Maven or Salesman benefiting from his or her status and ability to move product? Aside from the more obvious quid pro quo of a store or industry person actually saying "I'll give you X if you do Y," what about the grey areas? What if a store or someone else in the industry gives freebies or big discounts to a Maven or Salesman in the (realistic) hope of generating positive posts? If those positive posts sell the wine and create more traffic to the website or to the winery, can the poster just rationalize that the freebies or discounts have nothing to do with the posts? By not disclosing the relationship and benefits to the reader, does that deprive them of necessary information?
What are the ethics for the industry person … in other words, when does it go from just good business to bribery, or does it?" - NYCWINECONSUMER
So I ask, is this topic too dangerous to be discussed? Are ethics in the wine industry and in wine marketing off limits for discussion? Why is this post in particular a problem?
This message has been edited. Last edited by: NYCWINECONSUMER,
Posts: 154 | Location: NYC | Registered: Feb 02, 2008
I don't see much new in 'The Tipping Point' (it seems to be a cute way of marketing/publishing established ideas), and not much controversy in the topic. Beats me why somebody would feel sensitive about this?
That was just CDR's way of being CDR. Just like it took me sometime to get used to the posters over on Ebob it will take you some time to do the same here. I know you have 6000+ posts over there and I hope you did not just sign up to post this one thread but instead stick around. After all the only way to understand CDR is to stick around for about 5 years.
pissing people off since 1971!
Censorship reflects society's lack of confidence in itself. It is a hallmark of an authoritarian regime. ~Potter Stewart
Posts: 3409 | Location: oklahoma city, usa | Registered: Aug 15, 2004
You shouldn't say stuff like that, it'll give him cranial edema.
---------- I've got a few bottles of the Old Winyards left. 1296 - very good year. Almost as old as I am, it was laid down by my father. What say we open one, eh?
Originally posted by NYCWINECONSUMER: "Interesting. What are the ethics involved in a Maven or Salesman benefiting from his or her status and ability to move product? Aside from the more obvious quid pro quo of a store or industry person actually saying "I'll give you X if you do Y," what about the grey areas? What if a store or someone else in the industry gives freebies or big discounts to a Maven or Salesman in the (realistic) hope of generating positive posts? If those positive posts sell the wine and create more traffic to the website or to the winery, can the poster just rationalize that the freebies or discounts have nothing to do with the posts? By not disclosing the relationship and benefits to the reader, does that deprive them of necessary information?
What are the ethics for the industry person … in other words, when does it go from just good business to bribery, or does it?" - NYCWINECONSUMER
Well, I have now been put on "time-out" for posting the above offending question.
So I ask again, is this topic too dangerous to be discussed? Are ethics in the wine industry and in wine marketing off limits for discussion? Why is this post in particular a problem?
This message has been edited. Last edited by: NYCWINECONSUMER,
Posts: 154 | Location: NYC | Registered: Feb 02, 2008
NYC Guy, settle down. One thing we all must learn in life is that not everyone cares about the things that we do. You seem like a smart guy who asked a pretty good question, but maybe people got tired reading the whole thing or perhaps find the topic uninteresting.
I have come up with some questions I was sure would get the conversation going and no one has responded. It happens sometimes.
My $.02 on your general topic is that the world of wine has changed and the internet has a great deal to do with it. I don't think message boards play much of a role, although some mediocre wines get talked about, create a temporary sensation and then disappear. Most message boards are about the newest thing or how upset someone is about corkage fees.
As far as wholesalers go or using free goods or other inducements, in California, it is illegal. This doesn't stop Southern Wine & Spirits or the other big, but less mean guys from doing it. The reality is that for wineries, selling their wine has become really hard, no matter how good your wine, simply because wholesalers are lazy, restauranteurs are lazy and there are a hell of a lot of wines from around the world competing for the wine buyer's dollars.
I say, keep the contest about the quality of the wine and the quality of the service and lastly, the price. Internet and other deep discounting retailers have changed the restaurant scene in that the gig is up - restaurants cannot charge too high a price without consequences as easily as they once did, because almost everyone knows the retail price now because of Costco, the internet, etc. As a result, restaurants like to pour no name, average quality "restaurant only" labels or wine no one knows so they can charge the price they need to.
Keep posting, but don't expect people to always be interested in what you say.
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"Asking government to fix this crisis is like asking the arsonist to put out the fire." -Thomas Sowell
Posts: 4510 | Location: Dubai | Registered: Dec 20, 2002
Your original post was so ponderously long that many here probably just did what I did and skipped it altogether. Posts of that length by a first time poster are usually a waste of bandwidth.
Certainly the potential for abuse exists. Do you have an axe to grind here? If so, just say what's on your mind. Briefly.
PH
Posts: 9625 | Location: Maryland, USA (DC suburbs) | Registered: Nov 22, 2003
Your original post was so ponderously long that many here probably just did what I did and skipped it altogether.
You state that you skipped reading my post "alltogether", but you bothered to post to chastise me about not being brief enough? You are really adding to the substance of the discussion, PH. Well, done.
Posts: 154 | Location: NYC | Registered: Feb 02, 2008
Yes I've been contacted a number of times by people in the industry asking me to post, not to post, or correct a post. If something is not accurate, I've corrected it and note that I've been asked to correct it.
In general, my impression is that it has had more to do with ego than marketing.
In general I also think people grossly overestimate the effect wine boards and critics have on sales, particularly long term sales.
Paul Romero (tlily)- Owner, Winemaker, Tour Guide Stefania Wine http://www.stefaniawine.com
Posts: 5716 | Location: San Jose | Registered: May 24, 2002
Actually, I would imagine the effect can be more significant, especially in terms of a shop's bottom line. A run on one expensive wine could be very meaningful to a retailer with a good stock, even if its only 5-10 cases, no?
Someone on the other board put it this way: "My dad used to say in regards to government accounting "a billion here and a billion there and eventually it adds up to real money." With wine, once fixed costs are covered, a case here and a 6-pack add up to thousands of dollars in profit, not to mention a better network to sell the next vintage to. It need not be a tipping point sort of feeding frenzy to be worth monitoring and managing the board."
Posts: 154 | Location: NYC | Registered: Feb 02, 2008
Originally posted by cdr: As far as wholesalers go or using free goods or other inducements, in California, it is illegal. This doesn't stop Southern Wine & Spirits or the other big, but less mean guys from doing it.
CDR, how is it illegal? It seems unethical at a certain poiint, but it does not seem like it would be illegal to give discounts or free dinners or lodgings to get people to talk about your wine, your store, your Chateau, etc.
Posts: 154 | Location: NYC | Registered: Feb 02, 2008
Yes, it is illegal. It is also illegal in certain other fields, like insurance. I think there is a threshold for "promotional gifts." It used be under $10, but now I think it's $25. So you can give away a hat, T-shirt or pen, whatever, but not a free dinner and a stay at the Chateau. People do it anyway, by saying they are gifting it to a "friend." We give a 3L etched bottle to our top sales rep and top retailer each year, but technically, legally, we are not supposed to.
Posts: 72 | Location: Paso Robles, California | Registered: Mar 24, 2006
The internet seems to be an amazingly powerful sales device, and Wine Bulletin Boards a powerful means of delivering information into the key target audience. As an anecdotal bit of information, I had never heard of Alice Feiring, but the post about her new book and subsequent deletion of that post from the Wine Advocate board made me place a pre-arrival order with Amazon over the weekend. Now, I have nothing against Bob, whom I respect, and I think much of the criticsm of him is way overblown, but its certianly an interesting topic and I was curious enough to order based on the censorship alone. Anyway, how many books do you think were sold because someone posted on it here and on the WA board?
Alice, can you get that information from Amazon??
Posts: 154 | Location: NYC | Registered: Feb 02, 2008
The internet seems to be an amazingly powerful sales device, and Wine Bulletin Boards a powerful means of delivering information into the key target audience. As an anecdotal bit of information, I had never heard of Alice Feiring, but the post about her new book and subsequent deletion of that post from the Wine Advocate board made me place a pre-arrival order with Amazon over the weekend. Now, I have nothing against Bob, whom I respect, and I think much of the criticsm of him is way overblown, but its certianly an interesting topic and I was curious enough to order based on the censorship alone. Anyway, how many books do you think were sold because someone posted on it here and on the WA board?
I'm sure Alice's publisher will provide some sort of information regarding sources with her royalty statements. My publisher gives only one number for all internet wholesalers, so that includes Booksamillion, Barnes and Noble, Amazon, etc. These reports do not, however, show source stats (eg, who came from where).
Making discussion board appearances regarding an upcoming book is no longer a new phenomenon--chefs have been stumping on the culinary boards for over a decade. Natalie MacLean did a fine job of stumping her book last year, and she had a great promotion program--postcards, free samples to writers and bloggers, Christmas cards with her cute son, and a slew of print interviews.
I think it's important to hit the major discussion boards in your field, but only as part of the "tickle". Many people won't pop for a book (I think far fewer people these days actually read than consume wine) until they've heard about it from various sources and then actually get to pick up the book and peruse it. So visiting the boards is just part of an overall promotion--featured placement in retail stores, booksignings, print interviews, podcasts, bloggerviews, etc. And really, as at Chowhound and eGullet, the best way to utilize a discussion board is to be featured as a guest artist, or appear in a dedicated book review thread. (Having a thread deleted is not going to produce a significant number of Amazon hits.)
Wow, serendipity here. I just this minute received a small package from UPS. It's a review copy of The Billionaire's Vinegar: The Mystery of the World's Most Expensive Bottle of Wine, by Benjamin Wallace (Crown Publishing). This is the third book I've received in the last 60 days. I LOVE being on the wine journalism list!
Anyway, back to stumping. Amazon now provides an opportunity for authors to "blog" directly on their sales page, and I see a lot of very famous authors taking advantage of this opportunity to communicate with readers and share their background stories. Can anyone realistically think that the wine boards will compete with exposure on Amazon?
So, one woman's opinion only--I think it's important to engage on the boards because it creates tickle, buzz. But what creates sales is an energized environment, and that means hitting a variety of media sources and venues, and establishing word of mouth via personal appearances, hand shaking, and review copies.
This message has been edited. Last edited by: Mary Baker,
Posts: 72 | Location: Paso Robles, California | Registered: Mar 24, 2006
They just did an article on the tipping point and if it is still effective in Fast company magazine (really cool magazine) In regard to wine sales I have seen wineries try a lot of different methods. The most effective long term method to be succesfull is to make a quality wine at a fair price. Every wine store sales person and sommelier can get behind a wine that is a great find and deal for their customer. I have watched many wineries bank all there sales on a high scores. This works for very few wineries. There are only a handful of California wineries that get consistent 90+ point scores. If you pay $150 for a 96 point wine I doubt you will buy it if it is rated 82 points the next year. Do influential people get "bought"? I think the more respected critics do not but some lower end wine writers can be obtained pretty cheaply (a night stay,lunch etc) but ultimatley the customer tastes the wine and finds the truth.
Posts: 287 | Location: Healdsburg, Ca | Registered: Oct 17, 2006
Retailers and restaurateurs get bought all the time. In fact, many expect to be bought if you want them to "go big" with your line. Nothing like a trip to Napa in Mr. Winery Owner's jet along with great wine, food and lodging for someone to suddenly see what he/she had been missing when rejecting the wines on their own merit.
Floor space and internet features are very important parts of a merchant's business and they often expect illegal activity to seal the deal. I know a lot of wineries who sell out all of their wine already and get to tell these whores to piss off when presented the old line. Fortunately for them, they are small and do not need to play the game.
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"Asking government to fix this crisis is like asking the arsonist to put out the fire." -Thomas Sowell
Posts: 4510 | Location: Dubai | Registered: Dec 20, 2002
You are really adding to the substance of the discussion, PH. Well, done.