Bridlewood Winery Advertising Campaign Proposal

Bridlewood Estate winery Advertising Campaign

P.L.H Brand Mechanics Shannon Costello Ryan Grossenbacher Robert Kazmi Ben Krein Kiley Martin Joy Sayeigh Patrick Schwartz

Table of contents Executive summary...................................................4 situation analysis............................................................6

trade publication advertisements...........................................................43 Banner Advertisement...............................................................................................................44 Facebook advertisement....................................................................................................44 The Market......................................................................................................................................................................6 radio advertisements..................................................................................................................45 Competitive position..................................................................................................................................9 television advertisements..............................................................................................46 The Consumer..........................................................................................................................................................13 website....................................................................................................................................................................................47 Dealers, Distributors, and brokers ........................................................19 Advertising history............................................................................................................................21 Sales promotion............................................................48 sales promotion..............................................................................................................................................24 events rationale........................................................................................................................................48 event booth design..........................................................................................................................52 s.w.o.t analysis....................................................................26 sweepstakes..............................................................................................................................................................53 promotions Flowchart.............................................................................................................55

campaign analysis......................................................27 budget...................................................................................................57 recommended target audience.......................................................................................28 appendices....................................................................................58 primary research methodology.................................................................58 recommended target cities.........31 focus group f indings...................................................................................................................59 survey questions............................................................................................61 media............................................................................................................32 qualtrics cost efficiency analysis..........................................................................................................63 media objectives............................................................................................................................................32 media rationale..............................................................................................................................................32 media press release............................................................................................................................35 trade publication objectives...................................................................................35 trade publication rationale.....................................................................................35 trade publication press release....................................................................37 media Flowchart........................................................................................................................................38

Creative concept....................................................40 our inspiration...................................................................................................................................................40 Consumer Magazine Advertisements....................................................41

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Executive summary What is it? Much of what Bridlewood Wines are has to do with where they are made. The Bridlewood Estate Winery is situated 30 miles south of Santa Barbara on the eastern edge of the Santa Ynez Valley. This location makes for a truly unique climate – with its warm days, cool nights, and distinguishable fog – which helps to create complex wines from incredibly grown grapes. The Bridlewood products we are featuring are the Pinot Noir and Chardonnay. Where is it? We are planning to launch the Bridlewood national branding campaign on January 1, 2011. The campaign is national in order to get case sales of 180,000. To gain significant distribution of 180,000 store/supermarket chains throughout the US. We will also be distributing the Bridlewood Estate wine to various upscale restaurants within our target cities (Washington DC, Chicago, Miami, Los Angeles, and Boston) as well as restaurant chains to spread the brand nationally. Who is buying the wine? After doing research on Mintel we found that both men and women drink the highest amount of wine per month. Although there is some variability in the type of wine they drink, we decided to use both genders for maximum exposure and case sales. Mintel also told us that the prime consumers of wine usually fall into the age group of 55 to 64 years old but we also found a large opportunity in a younger, affluent audience with the ages of 2534 years old. We found that younger audiences are almost never marketed with wines and are almost completely saturated with beer and distilled spirits advertising. Knowing this poses as a great opportunity to increase sales of Bridlewood now and in the future by educating this particular audience.

How will we reach our target audience? To get as much exposure as possible for Bridlewood and increase sales to 180,000 cases we recommend using a large part of our advertising dollars into trade( on-premise) media and events. Also we feel that an important part of this campaign is getting the audience involved with the company and being able to associate them selves with Bridlewood on a feeling basis. For trade we recommend seven trade events to help get Bridlewood exposure and in turn get it into on-premise locations but also allow consumers to try out the product. We propose going to the LA Wine Fest, LA Food and Wine Fest, Windy City Wine Fest, WA D.C. International Wine and Food Festival, Miami International Wine Fair, LA Travel and Adventure Show, and the National Restaurant Association Trade Show. We also propose using the trade magazines Cheers and Restaurant Hospitality. For the consumer we are trying to create excitement about what Bridlewood is all about and how they can bring their styles to life. By using promotions like a sweepstakes with a grand prize trip to the Central Coast and Foursquare check-ins that allow the consumer to win a free bottle of wine we can create a drive for our audience to get involved and learn more about what Bridlewood has to offer. As far as advertisements go we proposed to use traditional media like television, radio, magazine as well as the trade magazines mentioned earlier. We also propose to use our website and social networking accounts like Twitter and Facebook to raise the awareness of our product and our entire campaign idea of “bringing your style to life.”

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What’s the BIG IDEA!? Our campaign is based upon the concept that people can drink Bridlewood wines to “Bring Your Style To Life” in their particular situations and in turn create an image of what Bridlewood is about. Also, we are trying to inform our audience about the advantages of buying a wine from the Central Coast instead of somewhere else in California. We will do this by informing the audience of how to “Bring [Their] Style To Life With The Flavor of California’s Central Coast.”

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situation analysis The Market

marketing innovations are points of interest for consumers. They want to explore and discover. A huge trend of eco-friendly packaging as well as screw tops instead of corks (to keep wine fresh) are being used. Artisan wines, food pairings with wines, and organic wines are also being marketed strongly. (Mintel)

Definition This is an analysis of the wine market of the United States. Chardonnay and Pinot Noir will be the specific areas of focus. If there is importance of emphasis or information on other types of wine, they On the topic of being eco-friendly, companies have changed will be discussed if necessary. because of their concern of the changing climate as well as rising fuel/gasoline prices. There is less usage of heavy glass bottles Relevant Market (SIC) Code because it leads to carbon emissions. Lighter wine boxes are now Bridlewood Estate’s wine Standard Industrial Classification (SIC) being used in replacement of heavy glass bottles. Additionally, orcode is 2084. Wine is found under the classification of “beverage,” ganic and fair-trade certified wine sales are increasing due to the which makes the first two numbers of the code to be 20. The two concern for the environment, regardless of high prices. Consumnumbers that follow are 84 because it is defined more specifically ers would rather be Earth-friendly, over Wallet-friendly. as a “wine, brandy and brandy spirits” product. Market Size In 2009, there was a surplus amount of wines but not enough demand. This caused volume sales to perform better than overall dollar sales. (Mintel) This outcome can also be due to the fact that customers have become more “money savvy” and are prone to buying lower-cost wines. Americans are also becoming more interested in wine due to new innovative ideas and changes in the wine market. Wine marketers all over are promoting the health benefits of the beverage in order to promote more of an everyday type of drink. According to Mintel, 35% of Americans drink table wine as of 2008. Market Trends A wine revolution: Wine consumers of the present and future have different viewpoints than those of the “Baby Boomer” generation. People are more willing to try new and different types of wines. Packaging and

There is also a new competitive position of wines based on their packaging. With more wines coming out, it is harder to stand out and have unique features show on the shelves. Mintel states that 22% of wine drinkers decide which bottle to buy based on browsing and weighing the look and description of the label. Economic Influences According to Mintel, about a quarter of wine drinkers have changed their spending behaviors in order to save money due to the recession. People are watching what they spend and therefore are drawn toward less expensive wines. Additionally, price sensitivity has caused 57% of consumers to spend less at restaurants which leads to a big decline of wine purchases.... Market Segmentation The wine market is essentially divided into four segments consisting of table wine, sparkling wine, champagne, and fortified wine. Table wines are then divided into two segments, consisting of

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domestic and imported wines. According to Mintel, domestic table wines have continued to grow in the recession. The reason being is because they have a price advantage over imported wines and people who are moving down from more expensive wines take notice to domestic wines.

Source: (Mintel-Wine 2010)

Domestic table wine consumption, by type, by age, February 2009-March 2010 All 21-24 25-34 35-44 45-54 55-64 65+ % % % % % % % Merlot 43 41 48 46 42 42 39 Zin42 43 41 45 42 45 40 fandel Cab38 20 40 45 37 38 31 ernet Savignon Char37 33 44 38 35 35 36 donnay Pinot 30 29 40 35 29 28 21 Noir Sauvi16 11 20 19 13 15 13 gnon Blanc Cha12 9 6 9 10 15 17 blis Bur11 9 11 11 10 14 10 gundy Other 26 22 32 27 24 25 25 Red Other 21 20 24 24 18 19 19 White Other 14 20 13 16 12 16 14 Rose

According to Mintel, during 2004-2008, dollar sales of domestic wine grew 37.5% and volume sales grew 10.5%. The price of domestic wine channels have grown to 24.6% from $5.62 per liter in 2004 to $7.00 per liter in 2008.

Domestic Wine Consumers are looking more towards a “wallet-friendly” domestic wine now rather than more expensive ones due to the recession.

Price Segment Due to the economic problems the United States has faced, there has been a huge decrease in premium and super premium wines. Consumers are looking for cheaper wines and want to be smart of what they are spending. More people became unemployed through the past couple years so spending excessively may not be an option for many. Employment status of the civilian non-institutional population 16 years and over, 2000-10 Month/Year Unemployed % of Pop. 2000 4 2001 4.7 2002 5.8 2001 6 2004 5.5 2005 5.1 2006 4.6 2007 4.6 2008 5.8 2009 9.3 2010 January 9.7

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February 9.7 March 9.7 April 9.9 May 9.7 June 9.5 July 9.7 August 9.5 Source: Mintel Wine - US - October 2010 - Market Drivers/U.S. Bureau of Labor Statistics

$million % change Index 2005 Index 2010 2005 25887 100 85 2006 27827 7.5 107 91 2007 29684 6.7 115 97 2008 30525 2.8 118 100 2009 30217 -1 117 99 2010(est) 30621 1.3 118 100 2011(fore) 31976 4.4 124 104 2012(fore) 33807 5.7 131 110 2013(fore) 35605 5.3 138 116 2014(fore) 37373 5 144 122 2015(fore) 39223 5 152 128 Source: Wine - US - October 2010 - Market Size and Forecast

Varietal Segment The two top types of domestic wines both men and women prefer are Merlot and Zinfandel. According to Mintel, Chardonnay and Cabernet Sauvignon come close as well. Men enjoy drinking more full-flavor, heavy red wines, (Merlot and Cabernet Sauvignon.) Women prefer lighter wines such as Zinfandel and Chardonnay.

*Mintel estimates that table wine (domestic and imported) accounts for between 94-97% of the total dollar wine sales in the U.S. ** Includes sales of all types of wine including table wine, Champagne and sparkling wine, dessert and fortified wine, vermouth/ aperitif, and wine coolers

Market Share According to Mintel, the Wine Group’s Franzia (boxed wine) has the largest market share by volume of domestic wines at 11.2 %. Most other domestic wine brands have less than 2% in this market share.

Distribution Customers are no longer spending money on the premium cost of wine at restaurants; rather, they are purchasing wine for at-home consumption. According to Mintel, super-centers/warehouse clubs have seen the highest increase in wine sales. There is also a solid growth, increasing 7.7 % from 2007-2009.

Market Forecast Mintel suggests that as consumers begin to see the worst of the recession to be over, they will become more prone to spending money. Additionally, the online network will channel more sales of wine. Winemakers will shift their focus to e-commerce because it is what the consumer will begin to take interest in when purchasing wines. (Such as Amazon.com)

Figure 17: U.S. volume sales of domestic table wine, 2005-10 Year 000, 9-Liter % Change Index Index Cases 2005=100 2010=100 2005 185,600 3 100 90 2006 191,100 2.8 103 93 2007 196,500 2.2 106 95

Total U.S. dollar sales and forecast of wine, at current prices, 2005-15

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Constellation Constellation was founded in 1945 and is well known now for it’s premium wines and spirits. Currently, Constellation is the leading wine producer in the world and leading premium wine company in the U.S. Their slogan is, “to elevate life with every glass raised.” Some of Constellation’s most popular brands include, Robert Mondavi, Hardys, Clos du Bois, Blackstone, Arbor Mist, Estancia, Ravenswood, Jackson-Triggs, Kim Crawford, Corona Extra, Black Velvet Canadian Whisky and Svedka Vodka.

2008 200,750 1.9 108 97 2009 204,525 3 110 99 2010(est) 206,570 1 111 100 Source: Mintel Wine - US - October 2010 - Segment Performance—Domestic Table Wine/The Beverage Information Group

Competitive position Competitive Context Among alcoholic beverages, beer and spirits are the top selling beverages with wine coming in third. The top three brands in the wine market are E&J Gallo, Wine Group and the Constellation brands. Combined, all three of these brands make up for over half of wine sales nationally.

FIGURE 29: Table wine sales of leading companies, by volume, 2008 and 2009 Manu2008 2009 Change % point facturer 2008-09 change 000, % share 000, % share % 2008-09 9-liter 9-liter cases cases E. & J. 59,244 21.9 59,344 21.8 0.2 -0.1 Gallo The 43,891 16.3 44,568 16.4 1.5 0.1 Wine Group Con34,254 12.7 33,988 12.5 -0.8 -0.2 stellation Brands Foster’s 19,656 7.3 19,773 7.3 0.6 0.0 Wine Estates America* Trin10,784 4.0 12,169 4.5 12.8 0.5 chero Family Estates Bronco 10,059 3.7 11,308 4.2 12.4 0.4 Wine

E. & J. Gallo E & J Gallo Winery is the largest exporter of California wines. This wine company was founded in Modesto, California in 1933 and now operates seven wineries over 15,000 acres of vineyards within California alone and produces over 60 different brands of wine in 90 different countries. The company has been key in making Sonoma County one of the premier wine growing regions in the world. Gallo offers a wide array of products including table wines, sparkling wines, dessert wines, fortified wines, import wines, fine wines and distilled spirits. The Wine Group The Wine Group is most known for their inexpensive brands of wine that include brands such as Franzia. Their “wine in a box,” brand Franzia has been the highest selling product by the brand. This company not only offers bargain wines like it’s Franzia and Underdog Wine Merchants, they also sell premium wines, both bottled and boxed. Some of their other brands that they sell include Corbett Canyon, Mogen David Kosher, Glen Ellen and Italian Casarsa.

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W. J. 9,349 3.5 9,194 3.4 -1.7 -0.1 Deutsch & Sons Banfi 7,182 2.7 7,909 2.9 10.1 0.2 Vintners Sub194,417 72.0 198,253 72.9 2.0 0.8 total All other 75,583 28.0 73,872 27.1 -2.3 -0.8 Total 270,000 100.0 272,125 100.0 0.8 0.0 This table shows the percent of sales for the leading wine companies from 2008 to 2009. It is visible that E & J Gallo is currently the leading wine distributor in sales at 21%. In second is The Wine Group at 16.4 percent of total sales and Constellation is in a close third at 12.5%

Livingston Cellars Peter Vella

The Wine Group

Manufacturer and brand shares FIGURE 30: U.S. domestic table wine brand sales by volume, part 1, 2008 and 2009 Company

E.&J. Gallo Winery

Brand

Total

2008

Change % 2008point 09 change

2009

000, 9-liter cases

% share

000, 9-liter cases

% share

%

200809

54,604

27.2

55,017

26.9

0.8

-0.3

6.6

13,400

6.6

1.5

0.0

4.1

7,800

3.8

-6.0

-0.3

3.0

7,500

3.7

25.0

0.7

Carlo 13,200 Rossi Twin 8,300 Valley Barefoot 6,000 Cellars

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Turning Leaf Redwood Creek Other Total

6,800

3.4

6,500

3.2

-4.4

-0.2

6,100

3.0

6,200

3.0

1.6

0.0

3,500

1.7

3,150

1.5

-10.0

-0.2

3,000

1.5

2,500

1.2

-16.7

-0.3

1,500

0.7

1,400

0.7

-6.7

-0.1

6,204

3.1

6,567

3.2

5.9

0.1

42,961

21.4

43,768

21.4

1.9

0.0

11.3

23,000

11.2

1.1

-0.1

3.4

6,700

3.3

-1.5

-0.1

1.5

3,300

1.6

8.2

0.1

1.5

3,100

1.5

5.1

0.0

1.2

2,600

1.3

4.0

0.0

1.0

1,650

0.8

-19.5

-0.2

0.6

1,400

0.7

16.7

0.1

0.8

2,018

1.0

21.6

0.2

Franzia 22,750 Winetaps Al6,800 maden Ingle3,050 nook Corbett 2,950 Canyon Fox2,500 horn Glen 2,050 Allen Fish 1,200 Eye Other 1,661

Constellation

Total

30,514

Woodbridge by 7,300 Robert Mondavi Arbor 3,864 Mist Ven2,998 dange Robert Mondavi 1,826 Private Selection Clos du 1,749 Bois Black 1,130 Box Black1452 stone Other 10,195

15.2

30,270

14.8

-0.8

-0.4

3.6

7,326

3.6

0.4

-0.1

1.9

3,695

1.8

-4.4

-0.1

1.5

3,023

1.5

0.8

0.0

0.9

1,794

0.9

-1.8

0.0

0.9

1,622

0.8

-7.3

-0.1

0.6

1,530

0.7

35.4

0.2

0.7

1308

0.6

-9.9

-0.1

5.1

9,972

4.9

-2.2

-0.2

SOURCE: Mintel/The Beverage Information Group

The above chart and graph explain the market share for the three leading wine brands in the market. E&J Gallo leads the market with 26.9% of the market share. At a close second, The Wine Group currently holds 21.4% of the market while Constellation stands in third with 14.8% of the market. Below are the tables of the top five Chardonnay and Pinot Noir brands, who makes them, how much they cost and where they are made. These tables prove that Bridlewood is not the top in either category for Pinot Noir or Chardonnay. However, by examining the differentiating qualities of Bridlewood compared to these wines it proves that not only does Bridlewood have the great taste of a premium wine, but it also has a much lower price than any of these other top wine brands which gives Bridlewood lots of opportunity as well as a leg up on these tough competitors.

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Top Chardonnay Brands: Brand: Name: Cost: Made In: Von 2001 Diamond $40 St. Helena, Strasser Mountain California Napa Valley Rainin Vineyard Chardonnay Patz & Hall 2001 Russian $36 Rutherford, River Valley California Dutton Vyd. Chardonnay Talley 2001 Arroyo $35 Arroyo Grande Valley Grande, CaliRincon Vinefornia yard Chardonnay Bannister 2001 Russian $28 Sebastopol, River Valley California Rochioli & Allen Vineyards Chardonnay Cakebread 2002 Napa $35.50 Rutherford, Valley CharCalifornia donnay Source: Wine&Spirits Magazine/”Top Ten Best Chardonnays.” Top Pinot Noir Brands: Brand: Name: Belle Vallee Grand Cuvee Pinot Noir Bohan-Dillon Bohan Dillon Pinot Noir, Hirsch Vineyard 2003

Cost: $49 $28

Made In: Willamette Valle, Oregon Sonoma Coast, California

Chalone

Chalone Pinot $25 Salinas Valley, Noir 2003 California Cloudline Cloudline Pin$18 Willamette Valor Noir 2003 ley, Oregon Clos Du Val Carneros Vine$34 Carneros, yard Pinot Noir California 2001 Source: Forbes.com/”25 Great American Pinot Noirs.” Although there is much competition within the wine categories, some of the main competition of wines is beer due to it’s low prices and spirits because of it’s variety of flavors. According to Mintel, the consumption of distilled spirits is up to 47% among ages 21 and up while beer is a close second at 46%. Wine is at third place in the alcohol category at 34%.

Base: adults aged 21+ Distilled spirits (net) Beer (net of all alcoholic beer) Imported and domestic wines (net) Champagne and sparkling wines Coolers

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Jan 2005-Oct 2005

Jan 2007-Nov 2007

23,514

23,680

Feb 2009-March 2010 22,511

% 45

% 46

% 47

45

45

46

33

35

34

16

18

16

17

15

14

Prepared cocktail mixes with liquor Port, sherry and 6 dessert wine

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9 7

7 6

Although wine’s biggest competitors consist of beer and spirits, according to the Beverage Industry’s June 2010 list of the Top 100 Beverage Company’s article, E&J Gallo holds a position as number 24, in the top half of the beverage list. However, Constellation holds a position as number 15 and the Wine Group stands as the 34th top beverage company.

Within the wine industry, white wines are expected to become more popular in the next couple of years and sales are expected to go up. The leading white wines will include Pinot Grigio, Riesling and Moscato. According to Mintel. Within California, Chardonnay is still the most popular wine among consumers. Pinot Noir, however had the biggest increase in sales. However, Cabernet Sauvignon, Merlot and Syrah have faced the largest decrease in sales last year. To change the wine market and deal with the decrease in sales of certain varieties of wine, many California wineries have created original blended red wines. (Wine US Mintel)

The Consumer The size of the market There are approximately 76,630,000 (21,369,601 Households) potential wine consumers who are aged 21+ in the U.S. according to Mintel. With that known number, our refined Los Angeles, CA DMA has a known 1,172,293 households that consume wine on a regular basis (SRDS). Due to the recession, lower numbers of people have been drinking wine and choosing the less expensive alternative beer (trends 2004-2009).

Current Trends: Premium Wine sales are going down: In the past, consumers have slowly started to buy more and more premium wines and have been willing to pay the higher prices for them. However, at the turn of 2008 when the recession hit, consumers have began to search for better deals when buying wines. Consumers have begun to realize that they can find wines that they actually like at a price that suits their budget. This has not only lowered sales for premium wines, but it has also changed the way consumers view all wines, premium and budget. Change in sales of wine varieties:

Trends in consumption of table wine versus other alcoholic beverages, 2004-2009 Base: Adults 2004 2006 2009 aged 21+ 23,463 23,428 24,041 % % % Beer(net of all 46 45 47 alcoholic) Distilled 46 42 45 Spirits(net) Imported and 38 34 35 Domestic Wines(net)

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Champagne 19 and Sparkling Wines Coolers 18 Cordials and 18 Liqueurs Port, Sherry, 7 and Dessert Wine Prepared 8 Cocktail mixes with Liquor *Source: Mintel/Experian Simmons

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17

16 15

15 14

7

7

8

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Habits of the consumers There are many factors that compose the market in the wine industry. This can be tied into the region, age, gender, and economic setting of the consumer. According to Mintel, women are more likely to consumer wine on a more regular basis. This is supported by the fact that 38% of women consumed wine while only 31% of men consumed wine in 2009. Also, the male consumption of wine has significantly decreased since 2004. This information is based on the fact that men prefer more flavor rich products such as a darker red wine or beer. A survey completed by Mintel showed that respondents report drinking an average of 5.11 glasses of domestic wine in the past 30 days which is the equivalent of 1.3 glasses per week. Usage increased from 2004-06 but has remained fairly consistent from 2006-09. Frequency of drinking imported wine is slightly lower at 4.53 glasses in the past 30 days, or 1.1 glasses per week. However, frequency of consumption of imported wines has continued to escalate from 2004-09. During 2004-09, the frequency of drinking domestic wine increased 4.5% while that of drinking imported wine rose by 6.8%. Domestic table wine consumption by type, by gender, February 2008-March 2009

“Do you drink…?” Base: 8,849 adults aged 21+ who drinks domestic wine All % 44 43 37 36

Male % 50 38 35 42

Female % 40 47 39 32

Merlot Zinfandel Chardonnay Cabernet Sauvignon Pinot Noir 28 30 27 Sauvignon 15 13 16 Blanc Burgundy 12 16 10 Chablis 12 12 12 Other Red 26 30 24 Other White 25 22 27 Other Rose 13 13 14 Source: Mintel/Experian Simmons NCS/NHCS: Winter 2009 Adult Full Year—POP Who is consuming wine? Gender Although men may drink more wine in quantity per month, women as a whole population consumer more wine (38% compared to 31%). However, men and Hispanics are more likely to spend more on a bottle of wine than women are. Men are also more likely to experiment with new wines but also tend to stay brand loyal. Women on the other hand are much more price conscious when it comes to their wines (Mintel). Regardless of the occasion, men report paying more per bottle of wine than women. On average, men are willing to shell out an additional $7 more per bottle, suggesting that marketers of premium wines should target men.

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*Average number of glasses of wine drunk in past 30 days, imported vs domestic, by key demographics Gender Domestic Wine Imported Wine Male 5.32 4.94 Female 4.96 4.18 Both 5.11 4.53 Source: Mintel/Experian Simmons NCS/NHCS: Winter 2009 Adult Full Year—POP Age The prime age group for wine drinkers is composed of 55-64 year olds for both domestic and imported wines but the prime demographic to advertise to for an increase in wine sales is the age group of 21-32 years old. The maturing Baby Boomer set remains highly influential to wine sales as they exhibit the highest incidence of use. However, the recession has caused this group to retract somewhat in their spending and use of wine. The youngest segments of the population, known as the Millennials (aged 21-32 ), are a prime group for wine makers to target because they are the least likely age group to use wine. By 2014, this group will have grown 17.5% in aggregate and will represent a quarter of the population. Making wine accepted by this group is essential to future sales. Also, the age group of 21-34 is usually targeted more towards beer and distilled spirits. However, there is a potential for a large growth in this demographic if they can be properly reached with a particular message. *Average number of glasses of wine drunk in past 30 days, imported vs domestic, by key demographics Age Domestic Wine Imported Wine All Ages 5.11 4.53 21-24 4.30 3.93 25-34 4.53 3.90 35-44 4.80 4.70 45-54 5.16 4.59

55-64 5.60 5.07 65+ 5.45 4.37 *Source: Mintel/Experian Simmons NCS/NHCS: Winter 2009 Adult Full Year—POP Race/Income Whites compose the prime consumer for domestic wines but Hispanics form the prime consumer for imported wine sales/consumption. Hispanics pose as a largely untapped demographic in the domestic wine category. It is believed that introducing and educating Hispanics on domestic wines could greatly benefit sales. Household income also plays an important part in wine consumption and sales. Mintel showed that both domestic and imported wine consumption was marked the highest in $100K + income demographic. This may be due to their higher level of disposable income and the ability to purchase more non-essential products. *Average number of glasses of wine drunk in past 30 days, imported vs domestic, by key demographics Race/Origin: Domestic Wine Imported Wine All 5.11 4.53 Hispanic 4.74 4.66 White 5.18 4.59 Black 5.03 3.70 Asian 4.50 3.85 Household Income: Under $25K 4.69 3.91 $25-49.99K 48.7 4.11 $50-74.99K 5.08 4.49 $75-99.99K 4.63 3.96 $100K+ 5.58 5.00 *Source: Mintel/Experian Simmons NCS/NHCS: Winter 2009 Adult Full Year—POP

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Region The last bit of important information about wine consumption is the region. The West region showed to have the highest rate of domestic wines while the Northeast showed to have the highest imported wine rates. Regional variances are noted in frequency of domestic wine, with the West consuming the greatest average number of glasses. The fact that this area of the country is “Wine Country” would encourage residents of these areas to buy local and to have a vested interest in these domestic wines. On the flip side, respondents in the Northeast illustrate the highest frequency of consumption for imported wines. With the greatest European influences in this region, the higher acceptance and usage of imported wines is expected. *Average number of glasses of wine drunk in past 30 days, imported vs domestic, by key demographics Region Domestic Wine Imported Wine All Regions 5.11 4.53 Northeast 523 4.89 Midwest 4.62 4.12 South 5.17 4.72 West 5.37 4.16 *Source: Mintel/Experian Simmons NCS/NHCS: Winter 2009 Adult Full Year—POP

State Map of Wine Consumption:

Popular lifestyles of those who consume wine in the US The Top 10 Lifestyles Ranked by Index (for wine consumers): -Gourmet cooking/fine foods=252 -Foreign travel=232 -Snow skiing frequently=219 -Attend cultural/art events=214 -Real estate investments=208 -Tennis frequently=203 -Fine arts/antiques=194 -Cruise ships vacations=193 -Stock/ bonds investments=192 -Fashion clothing=188 *SRDS Lifestyle Analyst

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Consumer knowledge/attitudes and influential factors of wine: Overall, wine portrays a positive health perception among those who drink it, with 86% believing that red wine is good for the heart and 84% saying that drinking wine in moderation is good for overall health (note only in moderation). However, many consumers do not know how drinking wine actually helps their health and is mostly based upon assumptions and not factual information. Also, younger audiences do not support this belief as strongly because it doesn’t necessarily pertain to them. Consumers also tend to believe that the more wine they drink the more they perceive to know about wine and its flavors. This can be coined as “drinking confidence.” Audiences also believe that certain wine flavors can coordinate with certain food items. By using promotions for value-priced and highly rated wines, manufacturers have helped consumers accept the idea that good wine does not have to be expensive. According to Mintel, 86% of respondents agreed with this statement. Further, less than a third believe that more expensive wine tastes better. This is an attitude that is most prevalent among inexperienced wine drinkers (ages 21-24). This particular age group also tends to consume more beer and distilled spirits but also tends to like fruitier wine varieties. Factors consumers weigh when selecting wine are type and variety, which composed 67% of respondents while the brand of wine composes 45% respondents. Recommendations given by family and friends weigh in as part of the decision-making process for 37% of respondents. However, another factor that ties into the final purchase of wine is what they know about wine. If the consumer knows something about a particular wine then they are 2/3rds more likely to choose it. However, 45% of respondents also try to remain brand loyal through their entire wine buying experience. They said they spend the most (nearly $31 a bottle) for wine on special occasions such as a holiday or party. This is twice as much as respondents say they spend on wine bought for consumption at

home. Factors influencing and impacting the decision to buy wine, by gender, July 2009 “Which of the following do you do when buying wine?” Answer Stick to the type of wine I know or like Stick to brands I know Decide after hearing a good review about a wine from friends + family Decide mainly by price Decide after in-store sampling Decide after browsing and weighing the look and label Decide after reading a written recommendation Decide after consulting a retailer or staff

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All 67

Male 62

Female 72

45

49

41

37

35

38

31

27

34

25

25

27

25

22

27

18

18

17

16

15

17

Stick to a wine of a particular country or region None of the Above Source: Mintel

15

19

12

2

2

1

Trends The recession has caused changes in the behaviors of many wine consumers. It has caused many consumers to trade down for better value over things such as quality perception and status. Because of this current trend, the sales of premium wines have suffered. This has caused a change in the behavior of the consumer as well as a perception in “premium” wines. Beer also posed a threat to wine sales in the recession. Mintel showed that 14% of all wine drinkers are now drinking more beer and less wine in 2009 due to beer being a less expensive choice in the alcohol beverage category. Beer is also does a better job of using promotions to reach key demographics. Also, due to wine being tied into the non-alcoholic beverage category it has shown to be decreasing in consumption. People are now drinking these types of beverages over wine due to them being cheaper. It could be hard to once again convince consumers to revert back to their usual premium wine purchasing patterns. Impact of recession on alcoholic beverage choice, July 2009 Trading Down within the category: This year, I am drinking less expensive bottles of wine to save money I am drinking less wine at restaurants/than last year because of the recession

% 37

I buy wine “casks” (boxed wine) to save money Trading out Category: I am drinking more non-alcoholic beverages and less wine due to the economy This year, I tend to drink less expensive alcoholic beverages instead of wine to save money I am drinking more beer and less wine than last year to save money

15 22 18 14

Source: Mintel Among this recession there is some light. Domestic wines have continued on a path of modest growth from 2004-08. Because of a pricing advantage, domestic wines (collectively) have proven to be somewhat recession-proof. Of course, the story within the domestic wine segments—unpretentious, value-priced wines fuelling sales, which reveals that price-sensitive consumer behavior is evident. Total U.S. volume sales of table wine, domestic vs imported, All I am drinking more alcoholic beverages at home than last year to save money.

35

18

35

2124 41

2534 42

3544 43

45- 5554 64 33 32

65+ 18

Dealers, Distributors, and brokers According to Everette Adams – former salesman at Columbia Distributing – wine begins its journey at the manufacturer. It then is either sold directly to the consumer on-site or it makes its way to the retail establishment – supermarkets, restaurants, convenience stores, etc. – In a few different ways. If the retail establishment is large enough, they way choose to distribute the product themselves. Safeway, QFC, and Fred Meyer’s are prime examples of supermarkets that practice this operation. Another way would be to go through a distributor such as Columbia Distributing or K & L Distributors. In order to get their products carried by retailers, salesmen from these companies must know what their product tastes like, what beverages are similar to it, and what type of foods it goes with. They must also constantly be monitoring the placement of their wine in the retail establishment as well as what their competition is doing. In addition, they must be forecasting out three to six months ahead. These forecasts typically come from how the wine has previously performed. If the wine is being sold in a new market, previous sales in test markets or markets where the wine has been sold are used for the forecasting (Interview with Everette Adams). The Three-Tier System In the United States, wine must pass through the three-tier system before it reaches the consumer. This allows the state to regulate the sale of wine as long as they do not violate federal law in the process. In this system, the manufacture ships their product to a wholesaler, who then distributes it to retailers where the consumer can buy the product (Rackings). State Shipping Laws Each state has its own laws when it comes to direct-to-consumer shipments. In California, where Bridlewood is produced, all that is needed for interstate shipping is a permit and there is no limit to

the amount of wine shipped to onsite or offsite locations. Below is a map showing the states that are reciprocal (yellow), limited (blue), and prohibited (purple).

Source: wi.shipcompliant.com It is also important to realize that eight states do not allow alcohol sales on Sundays and eleven states – including California – prohibit tasting at off-premise locations (Wine Handbook 150). Consumer Attitudes One of the most important issues to consider when attempting to sell a product is the consumer’s attitude about that product and the reasons for the attitude. Consumers’ attitudes are typically affected by a number of things; money, the age of the consumer, the time of year, what they think about a product or brand, their location, their exposure to the product, or how they were raised. In the following paragraphs, we will look at each more specifically. As with most products, attitudes are typically affected quiet a bit by consumer’s incomes and the state of the economy. Since the recession has happened, on-premise sales have declined and more people are choosing to drink wine at home instead, as seen by the

19

chart below. Source: Mintel; Wine – US – October 2010 This has obviously changed the market significantly. The chart below illustrates this by showing the changes that have taken place in the market since 2008. A major reason for the decline of on-premise purchases is due to the fact that fine dining has been hit hard by the recession. US wine sales by retail channel. 2008 2010(est) Channel $ Million % $ Million On10,867 35.6 10,327 Premise Super5,388 17.7 5,830 markets Supercenters/ Ware3,038 10.0 3,661 house Clubs Other 11,232 36.8 10,804 OffPremise Total 30,525 100.0 30,621 Source: Mintel; Wine – US – October 2010

% 33.7

% -5.0

19.0

8.2

12.0

20.5

35.3

-3.8

100.0

0.3

Income also largely effects whether or not someone drinks any kind of wine. As a general rule, the higher one’s income, the more likely they are to consume wine. The chart below captures this trend. Table Wine Consumption, by household income, Feb.2009Mar.2010

Table Domestic Wine(net) Table Wine All 34 33 Under $25K 21 20 $25K-49.99K 28 27 $50K-74.9K 33 32 $75-99.99K 38 37 $100K+ 48 46 Source: Mintel; Wine – US – October 2010

Imported Table Wine 16 8 11 15 20 25

In the United States, the legal drinking age is 21. However, when people turn 21, they do not necessarily start drinking wine immediately. A few freshly legal consumers begin to, but in general, the older a consumer is, the more wine they will drink on average in a month. Consumption of wine by age Age

Average Glasses of Domestic Wine Per Month 21-24 4.42 25-34 4.41 35-44 4.55 45-54 5.17 55-64 5.29 65+ 5.37 Source: Mintel; Wine – US – October 2010 Although consumers drink wine all the time, there are certain months that see increased sales. These months tend to be November and December. The holidays can most likely be given credit for this increase. Below is the percent of wine sold per month in 2009.

20

Month January February March April May June July August September October November December Source: Wine Handbook p. 7

Share Percentage 7.3 7.3 6.9 8.1 8.5 7.9 8.0 8.5 7.6 8.3 10.1 11.6

A consumer’s thoughts towards a product can be affected by many things. How they feel about the taste is a major factor, but another important aspect is the culture they associate wine with. Promotions are one way for a brand to establish a culture that consumers desire to be a part of. Although it is unclear if E & J Gallo has had any promotions featuring their Bridlewood product, one thing that is clear is that they have done a great job promoting their Barefoot Cellars line. This line sells for about $6 and features footprints on its labels. With this line, E & J Gallo has set up a blog for their customers to discuss wine with and connect with other. Younger consumers view Barefoot Cellars as “palatable,” but the product is “still interesting” enough for the more experienced wine lovers (Mintel; Wine – US – October 2010). The region in which a consumer lives factors into their attitudes as well. In the Northeast and on the West Coast, often times the type of wine consumers choose to drink is socially driven by the current trends. Consumers on the West Coast are also more likely than consumers of any other region to drink domestic wine at an average of 5.22 glasses per month. This may be because many of the

nation’s domestic wines come from that part of the country. In the interview with Everette Adams, one of the things that was emphasized was the placement of the product on the shelf. Beverage distributors strongly insist that their product be on the end of isles so that consumers are more likely to notice the product while passing by it. According to Mintel, many adults aged 25-34 may drink wine because they learned about it from their parents. Therefore, these people’s attitude may be much more favorable to wine than consumers in other age groups (Mintel; Wine – US – October 2010). Health Appeal Another attribute that drives sales of wine and effects consumers’ attitudes is the health appeal. Although it has been documented that all alcohol - consumed moderately - can help raise good cholesterol, wine has many added benefits that other types of alcohol cannot claim. These include antioxidants, resveratrol that reduces the number of fat cells, and ingredients that lower the risk of cancer. The popularity of natural foods has also affected wine purchases as of late. According to Mintel, sales of wine in natural product supermarket retail stores increase by roughly $5 million in both 2008 and 2009. Of this increase, red wine did almost twice as well as white wine because it is affiliated with heart health. The age group most interested in these types of products tend to be members of Generation X (Mintel; Wine - US – October 2010).

Advertising history Advertising Expenditures Wine suppliers spent a total of $76 million on advertising during 2009, a 14.5% decline over 2008. Print advertising such as magazines, and newspaper continue to be the most important form of advertising in the wine industry. By using publications that target specific audiences, marketers can achieve maximum reach. Print

21

advertising, followed by television and then radio, was the largest medium for wine advertising. In 2009, print spending totaled $64 million; total TV was $10.6 million; and radio was $1.2 million.

E. & J. Gallo increased its overall ad spend by 9.1% in 2009. Total budget was almost $7.5 million, the third highest amount of advertising expenditures behind Constellation and Jackson Family Wines. Advertising expenditure on wine, by producer and brand, 2008-09 Manufacturer Volume Sales The total volume sales of wine grew from 270 million 9-liter cases in 2008 to 272 million in 2009, an increase of 0.8%. The high cost of wine kept many recession-strapped consumers from indulging in the category. E. & J. Gallo topped the market share with 21.8% of volume wine sales with volume sales of 59.3 million 9-liter cases in 2009, a 0.2% increase over 2008. The following is a table of Table wine sales of leading companies, by volume, 2008 and 2009:

Manufacturer

E. & J. Gallo The Wine Group Constellation Brands Foster’s Wine Estates America* Trinchero Family Estates Bronco Wine W. J. Deutsch & Sons Banfi Vintners Subtotal All other Total

22

2008

2009

Change % pt 2008- cha09 nge % 200809 0.2 -0.1

000, 9-liter cases 59,244

% share 21.9

000, 9-liter cases 59,344

% share 21.8

43,891

16.3

44,568

16.4

1.5

0.1

34,254

12.7

33,988

12.5

-0.8

-0.2

19,656

7.3

19,773

7.3

0.6

0.0

10,784

4.0

12,169

4.5

12.8

0.5

10,059

3.7

11,308

4.2

12.4

0.4

9,349

3.5

9,194

3.4

-1.7

-0.1

7,182

2.7

7,909

2.9

10.1

0.2

194,417

72.0

198,253

72.9

2.0

0.8

75,583 270,000

28.0 100.0

73,872 272,125

27.1 100.0

-2.3 0.8

-0.8 0.0

Advertising Appeals Used by Competition Kendall Jackson’s tagline: “Welcome to Kendall-Jackson Country” invites new consumer to the brand. Their ads dramatically demonstrate the Jackson family’s beautiful, rugged, mountainous, coastal vineyards from which Kendall-Jackson wines are made (the more harsh the terrain, the longer it takes for grapes to ripen, and the more flavorful they become). More than that, the ads subtly invite people to come to the California wine country—both literally and indirectly through the wine. Yellow Tail is positioning their wine to be something that can be consumed on a daily basis. Their tagline: “Open for Anything” suggests this. Yellowtail makes wines for “anyone to enjoy. Any time. Any place.” They strive to create a quality wine that’s fun, flavorful, and bursting with a personality all of its own. Fish Eye’s tagline for their new campaign is: “This Wine Jumps Out of Your Glass!” Fish Eye wine is going for a look similar to Yellow Tail. The laid-back, brightly colored labels attract a younger audience that is not interested in expensive wines. Their tagline also suggests that Fish Eye is marketing itself as a wine for daily consumption. The Wild Horse Winery & Vineyards is also located in the Central Coast region. Wild Horse is positioning itself as the unique winery with the free-spirited attitude, driving curiosity and passion for fine winemaking. The tagline: “Live Naturally, Enjoy Wildly. In The Unbridled Spirit of California’s Central Coast,” exemplifies the winery’s free and noble spirit that embodies their commitment to spirited winemaking.

23

Sales promotion Bridlewood Estate Wines Online Coupons (taste and save!) Print out and save 15% off your total wine purchase on your next visit. Having online coupons not only allows Bridlewood to generate product knowledge but it directs consumers to their website. Thus, established a greater market base. Bridlewood Estate Winery offers a wine club. What’s different about Bridlewood’s wine club is that every other month Bridlewood will send two bottles of Bridlewood wine to club holder’s home. Not only this, but they receive special discounts such as 30% off for online and tasting room orders, 25% off for telephone orders, access to their croquet court and private picnic grounds by the Bridlewood Lake and vineyard reports and information on new vintages in our bimonthly newsletter. Bridlewood’s newsletter gives consumers the latest news on Bridlewood. The newsletter includes new releases vineyard reports and upcoming events. This will generate knowledge to our consumers, encouraging them to take part in other promotional events and activities. In order to receive the newsletter consumers must sign up giving their full name and e-mail. This allows Bridlewood to receive consumer permission to contact them. Kendall Jackson Vintners Reserve Like many other wineries, Kendall Jackson offers a year round membership promotion. Nevertheless, at Kendall Jackson consumers are offered two different Clubs, the Estate Club and the Classic Wine Club. Both Clubs offer discounts on purchased and invitations to wine club events and festivals, but the Classic Wine Club is limited to particular wines where as the Estate Wine Club offers a more vast variety of wines. To generate sales during the Holidays, Kendall Jackson has created their Holiday Gift Sets as well as a Create your own gift set.

This allows consumers, not just membership holders, to benefit from purchasing multiple bottles of wine thus; by purchasing the bottles together, they are able to save money rather than purchasing them separately. Clos Du Bois Super Premium Clos Du Bois paired with Seattle-based kitchenware retailer Sur la Table for a joint promotion, including in-store food and wine pairings, cooking demonstrations, printed POS materials, and in-store displays. Poster displays will also generate awareness about the joint promotion. Released during two different times of the year, the one in the spring will feature Clos du Bois Chardonnay and the one in the winter will feature Clos Du Bois Zinfandel. In February of 2009, as a part of American Heart Month, Clos Du Bois sponsored the Toast to Women Campaign. On February 6, 2010 they joined millions of women to celebrate the National Wear Red Day, where this campaign was launched. This year long promotion encouraged consumers to send a free e-card to a special woman in their lives in hopes of raising awareness for women who suffer with heart disease. For every e-card sent, Clos Du Bois donated one dollar to the campaign benefiting WomenHeart, up to $100,000. Estancia Super Premium Estancia Winery offers a guestbook that keeps consumers informed about special sales promotions and winery news. Consumers are asked to give their full name, e-mail address and state. This allows Estancia to establish a relationship with their consumers. Instead of offering its own wine club, Estancia promotes its wine through establishing a wine club through Hartwick and Grove Wine Merchants. Instead of offering discounts on just Estancia, by creating a wine club through Hartwick and Grove, consumers can not just get discounts on Estancia. Though this may not encourage brand loyalty, it will still encourage consumers to purchase Estan-

24

cia and join the wine club. Rodney Strong Super Premium Presented in associated with Omega Events, The Rodney Strong Summer Concert Series allows guests to enjoy top performances while being surrounded by the beautiful vineyards. Along with the entertainment, delicate food spreads are offered throughout the property so that guests may relax and eat as they enjoy the music and essence of wine country. Every month, Rodney Strong will feature the Wine of the month. This encourages consumers to try different wines, while teaching them about the different wines offered at Rodney Strong. This month the featured wine is the 2007 Symmetry, Red Meritage, Alexander Valley normally $55, now $41.25. Francis Coppola Diamond Collection Currently, Francis Coppola has partnered with several Costco locations in Illinois, Indiana, Michigan, Minnesota and Missouri for a special promotion to benefit breast cancer research. Francis Coppola will donate a dollar of every bottled purchased to support breast cancer, up to $100,000¬. As a Member of Francis Coppola Winery and customers are able to enjoy automatic shipments of wine and fun Coppola related items delivered directly to their doorstep. In addition to First Member status, access to Coppola’s newest releases, members-only wines, and increased wine allocations, will be offered. Like other memberships, Coppola also offers a significant discount for members, along with access to events and complimentary wine tasting and public tours.

25

s.w.o.t Analysis Strengths • E. & J. Gallo is one of the leading wine competitors • Table wines generate most revenue • Made in Central Coast which is known to help create find and quality wines Weaknesses • Small menu presence in on-premise channels compared to beers & spirits • Consumers lack knowledge of quality of wine • Unknown brand Opportunities • Healthy living trends are on the rise • Recession is diminishing and economy is improving • Wine Innovations Threats: • Intimidating feelings of wine market • Competition between different wine labels & large market • Price-conscious consumers, switching to lower-priced wines Threats • Intimidating feelings of wine market • Competition between different wine labels & large market • Price-conscious consumers, switching to lower-priced wines

26

campaign objectives • Launch campaign on Saturday, January 1, 2011 • Overtake the position of Wild Horse Winery in the market • Grow the brand with an ultimate goal of 180,000 case sales by the end of 2011 • Own the market share for super premium wine sales by single adults between the ages of 25-34 • Execute a specific target campaign for five metropolitan areas with a specific focus of Los Angeles, CA. • Grasp attention of consumers and trade companies across the nation • Achieve a total of 800 GRPs in the 52-week ad campaign. • Stay within a budget of $2.5 million

27

recommended target audience Target Audience for wine: For our target audience we recommend males and females aged 25 to 34 years old who have an income of $60,000+. This market is composed of lower consumption of wine compared to older demographics but poses the most potential for education on the Bridlewood product and in turn will create increased future sales. Here is a breakdown of our proposed target audience: -Ages: 25-34 years old -Gender: Females & Males -Marital Status: Not Married -Income: $60,000+ -Education: Graduated College Age: We found the ages of 25 to 34 year olds who consume wines to hold much promise in increasing sales for Bridlewood wines (Index#105). This age group also tends to drink 4.53 glasses of Domestic wines every 30 days and 32% of this audience drinks imported and domestic wines (Mintel). *explain what index means, 5% more likely to drink wines Consumption of Wine, Chardonnay, and Pinot Noir Based Upon Ages 25-34 Index(#) Percent(%) Drinks Wine 105 32 Drinks Chardonnay 125 41 Drinks Pinot Noir 126 34 Source: Simmons According to Mintel, wine is usually only marketed towards people 35 and older. Knowing this, our proposed audience has the po-

tential to be educated about Bridlewood and in turn create future profits. Gender: According to Mintel, 38% of woman drink wine and 31% of males drink wine (Mintel) which helped us to decide to market towards both of these genders. In the past 30 days, males consumed an average of 5.32 glasses of domestic wine while women consumed an average of 4.96 glasses. Percent of Consumption of Chardonnay and Pinot Noir Based Upon Gender All (%) Male (%) Female (%) Chardonnay 37 35 39 Pinot Noir 28 30 27 Source: Mintel/Experian Simmons NCS/NHCS: Winter 2009 Adult Full Year—POP Marital Status: Due to the younger age of our proposed audience we found that they tend to not be married but still maintain the frequent consumption of wine. More specifically, this unmarried audience also tends to have higher index numbers when it comes to the consumption of Chardonnay and Pinot Noir. Consumption of Wine, Chardonnay, and Pinot Noir Based Upon Marital Status(Unmarried/Never married) Index(#) Drinks Wine 167 Drinks Chardonnay 176 Drinks Pinot Noir 224

28

Drinks Pinot Noir

Source: Simmons Income: According to Mintel, people with higher incomes (expendable wealth) tend to drink more wine than lower incomes. This is why we have proposed to use a higher income for our target audience. People with an income of $50,000 or more drank anywhere from 4.63 to 5.08 glasses of domestic wine in the past 30 days (Mintel). Consumption of Wine Based on Income ($60,000 -$99,999) $60,000-$74,999 $75,000-$99,999 Drinks Wine(Index#) 100 183 Drinks 110 291 Chardonnay(Index#) Drinks Pinot 106 391 Noir(Index#) Glasses of Domes5.08 4.63 tic Wine in the Past 30 Days Source: Simmons/Mintel Education: Education can play a large role in the consumption of wine but also can compose the amount of income that a particular consumer might have. Usually those with a higher education tend to have a higher income and in turn are more likely to consumer wine on a regular basis. The target audiences we are proposing have graduated from college (4 years) and also tend to drink wine products. Consumption of Wine, Chardonnay, and Pinot Noir Based Upon College Graduates ( 4 years) Index(#) Drinks Wine 201 Drinks Chardonnay 244

250

Source: Simmons Looking at the Lifestyle Market Analyst, we found that people who consumer wine tend to participate in certain lifestyles. These include: Top 10 Lifestyles of People Who Consume Wine Index(#) Gourmet cooking/fine foods 252 Foreign travel 232 Snow skiing frequently 219 Attend cultural/art events 214 Real estate investments 208 Tennis frequently 203 Fine arts/antiques 194 Cruise ship vacations 193 Stock/bond investments 192 Fashion clothing 188 Source: SRDS Knowing these particular lifestyle characteristics can help us with our creative aspects of our Bridlewood campaign. Using primary research, we found that 35% of consumers would try a new drink at a bar/lounge and 35% would try a new beverage at a restaurant. This helps support the fact that on-premise sales pose for a huge gain in sales for our particular brand of wine. Restaurant/dining habits of our consumers: Using Simmons, we were able to find some of the habits of our consumer by looking at what restaurants they dine at. Then by using specific restaurants we looked into how many times per month this particular consumer would visit that chosen restaurant. Sim-

29

mons showed us that the top four restaurants visited the most in the past month by our consumer are:

Internet at Work

-Applebee’s (Index#185) -California Pizza Kitchen (Index#125) -Olive Garden (Index#180) -Outback Steakhouse (Index#137) *Each index number applies the restaurant being visited three or more times per month by 24-35 year olds

Internet at Home/ Work

By using these restaurants we can potentially use media and sales promotions to create better brand awareness as well as spark sales for on-premise locations. Media Usage of the Target Audience: During our analysis we found that there was important data on the way our target audience used media. This was not only based on index numbers but also based on ranking quintiles, which allow us to see how much our audience actually uses each type of media. Media Habits Based Upon Highest Quintile/Index (25-34 year olds) Medium/Day Part Quintile Rank (HighIndex(#) est) Radio Drive Time 1 103 3 140 Radio All Day 1 110 2 104 TV Primetime 2 106 5 110 TV Early & Late 3 105 Fringe 5 124 Outdoor 3 113 Internet at Home 1 117 2 134

1 2 1

144 155 134

2

125

Source: Simmons Looking at the table above and factoring in their quintile rank, we can see that radio (drive time & all day), TV primetime, and Internet whether it be at home or at work, are frequently used among our target audience. However, Outdoor and TV (early & late fringe) are not as popular among this particular audience. We also found that our target audience did read and liked reading English newspapers (Index#127) and magazines (Index#100) in the past 30 days. This could help us potentially advertise in these types of mediums to help increase the awareness and purchases of Bridlewood wines. Some Magazines that this audience reads frequently are: Magazine US Weekly Men’s Journal Business Weekly Golf Magazine Cosmopolitan Source: Simmons

Index(#) 204 160 293 310 293

Using primary research we found that 70% our target audience does own and use a smart phone such as an iPhone and Blackberry. Knowing this could be beneficial when creating advertisements and promotional tactics to increase sales of Bridlewood products (Qualtrics.com). We also found that 97% of consumers use Facebook along with 30% who use Twitter, and 49% who use Linkedin (Qualtrics.com).

30

recommended target cities We recommend six key cities to focus our advertising and promotion efforts. This is recommended based upon such things as: -Demographic ranking(age, wine consumption, etc.) -Population -Total sales of alcoholic beverages at establishments Cities: -Boston, MA -Chicago, IL -Los Angeles, CA -Miami, FL -Washington DC Based on ages 25-34 years old Location/City Drinks Domestic Wine(Index#) Boston, MA Chicago, IL Los Angeles, CA Miami, FL Philadelphia, PA Washington DC

122 156 109

Drinks Domestic chardonnay (Index#) 299 200 133

Drinks Domestic Pinot Noir(Index#) 440 120 111

191 202

309 112

235 103

146

124

194

Source: Simmons City Rank, populations (household, gender, and age), Alcohol Sales (based on $(000) and rank)

Location/ DMA City Rank

25-34 (ages) Households

Male pop. : 25-34

Females pop. : 2534

Boston, MA Chicago, IL Los Angeles, CA Miami, FL Philadelphia, PA Washington DC

9

353,260

403,500

397,300

3

569,200

667,900

646,200

2

829,500

20

204,600

255,600

265,955

5

426,100

485,900

479,400

8

390,600

434,900

432,000

1,154,500 1,079,000

Alcoholic Drinks __(sold at establish ment)$(000) w/ rank $550,648 / #4 $718,206 / #3 $943,079 / #2 $354,099 / #11 $538,766 / #6 $405,266 / #8

Source: SRDS Looking at the table above, all of the cities we have chose rank in top 15 cities with the most alcoholic drinks sold at an establishment. Knowing this, we can feel confident in the fact that we have a high potential to increase Bridlewood sales.

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media media objectives 1. Generate a minimum of 800 gross ratings points (GRP’s) in all four quarter of the campaign. 2. Specifically target men and women between the ages of 25-34 years old. Strategies 1. Use traditional and non-traditional media to create a brand im- age and enforce that throughout the duration of the campaign. 2. Recommend the most cost efficient media which allows our target audience multiple exposures. Tactics 1. Utilize advertisements in a magazine that has a high readership among our target audience. 2. Utilize advertisements on television that has a high concentra tion of viewers in our target audience 3.Utilize advertisements on radio stations that have a high concen- tration of listeners in our target market 4. Utilize advertisements in trade publications to reach on-premise markets that make purchase decisions. 5. Make use of our sweepstakes and check-in points via our website, social networking sites, and emails to keep our audience continually interested and engaged with the campaign.

media rationale We recommend using trade and consumer magazines, radio, television and Internet advertising based on Simmons, Mintel and primary research on the recommended target audience of 25 to 34 year olds.

The chosen media will allow for Bridlewood Winery to reach the target audience with the message and encourage interaction that will lead to Bridlewood Wine sales. Media quintile research from Simmons Choices 3 show Radio Drive Time and Internet advertising as the two most effective ways to reach our recommend target audience. The highest rated media are shown below. The media were also selected on the basis of cost efficiency analysis. (For full details, see cost efficiency analysis in appendix). The proposal excludes outdoor billboards and newspapers, as they do not have high reach into the recommend audience’s daily lives, as seen in the table below: Media

Index

Sample

Radio Drive Time Radio All Day Television Prime Time Television All Day Internet Home Internet Work Internet Home/ Work Outdoor Newspapers

103

596

Estimated Total (000) 3,968

110 94

592 386

4,160 4,056

75

373

3,254

117 141 134

449 255 501

3,227 1,957 3,895

91 68

588 302

3,575 2,857

Source: Simmons

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Consumer Magazines We proposed magazines advertisements due to the high index number and specific interests that we can tailor to the interests of the proposed target audience. We recommend full-page four-color advertisements in the two Los Angeles DMA targeted magazines, 805 Living and Los Angeles Magazine. We also propose to place advertisements in the weekly publication, Brand X, focusing on the hip counter-culture among our target audience in the Greater Los Angeles area. We recommend full-page four-color advertisements in this targeted tabloid formatted publication. We will also run two page spread to advertise the start of our proposed sweepstakes sales promotion and throughout the holiday season from Thanksgiving through Christmas. 805 Living Magazine is a high-end regional lifestyle magazine that combines the style of a national magazine with the local focus editorials and perspective that highlights the Los Angeles area. The sections include home design, style, entertaining, health, recreation, shopping, dining, food and wine. The circulation is 25,826 and will reach the higher income brackets of our target audience that hobbies include entertaining, style and wine every month of the campaign. Los Angeles Magazine is regional magazine that combines investigative reporting with indispensable advice for Angelenos. The sections cover people, lifestyles, culture, entertainment, fashion, art and dining. The circulation is 139,438 every month and a pass along rate a little over 3 readers per issue (3.012) gives our recommended advertisements a total readership of 420,000 people. The final consumer magazine proposed is Brand X magazine. This tabloid-formatted weekly publication is focused for global citizens are trading ideas on entertainment, food, style, beer and wine. The weekly circulation is 100,000 every Wednesday and is passed along at the rate of over 2 readers per issue (2.25) gives the recommended advertisements a readership of 225,000 for a low cost per thousand at $8.88 for a full page and $22.50 for a two-page spread.

Radio We propose radio advertisements due to the highest effective reach to the target audience from the quintile analysis, as seen above. The best time for radio advertisements we found to the morning and afternoon drive times by Simmons Choices 3. The most popular radio music station type is adult contemporary, as seen in Simmons. Top 40 hit station and country radio stations in preference by the proposed target audience follow this type. The recommended media buys will be focused on the Los Angeles then the secondary target cities of Boston, Miami, Chicago and Washington D.C. In Los Angeles, the first radio station is recommended to be KIIS Adult Contemporary station. This is the highest rated radio station for the recommended target audience with a rating of 6 during the morning and afternoon drive times. The cost per thousand is low at $21.43 per thousand people of the recommended target audience. The second radio station is proposed to be KKGO Country station. This is the highest rated radio station among the proposed target audience with a rating of 1.6 during the morning and afternoon drive times. The cost per thousand is still low at $51.43 per thousand people of the recommended target audience. Television We recommend television advertisements due to the highly effective way of delivering the advertising creative message to the target audience. The target audience is reached very effectively by television advertisements, as seen in the quintile analysis. The best time for television advertisements are during prime time as seen in Simmons Choices 3. Because of the high cost, we recommended limited the media buys to the Los Angeles area with one large exception. We propose only one national television show to use in the campaign, Jimmy Kimmel Live on ABC late night. The cost per spot is $13,000, which is very large for the campaign, but will reach

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1.7 million viewers nationwide. This will provide amazing reach at the cost of $7.64 per thousand viewers reached. Our target audience makes up a considerable portion of this total viewership with 716,000 18 to 49 year old adults nationwide and reaching these adults with $18.16 per thousand, as reported by Nielson Company. With audience nationwide, our target audience makes up 14.2% of population or 32.2% of 18-49 year old adults, according to the 2000 census, therefore 230,000 is the target audience reached during one television advertisement on Jimmy Kimmel Live for the cost of $56.39 per thousand adults in our target audience. The most likely days for the target audience to watch Jimmy Kimmel Live is Wednesday and Friday nights, according to Simmons Choices 3. In the Los Angeles region, we recommend cable television spots in Los Angeles DMA and the Santa Barbara DMA, just north of Los Angeles. The two cable stations recommended are ESPN and the Food Network. The ESPN advertisements will run during sporting events: Australian Open for Tennis, French Open for Tennis and The Masters Tournament for the PGA. We have chosen these events because they fit the lifestyle characteristics, as seen in Simmons Choices 3. The Food Network spots will be shown during the prime time, during Chopped and Iron Chef America. We have chosen these shows because they are part of the most popular hobby among the target audience, cooking and dining.

the Australian Tennis Open will be $35 per spot, same price per spot as French Open. During the Master’s Golf Tournament will cost $75 per spot, but with a rating of 3.2, the price reflects in the reach to the target audience. Internet Finally, we recommend Internet advertisements on the websites, which our recommended target audience frequents, the most. Internet advertisements are one of the most effective ways to reach the 25 to 34 year old nationwide both at home and at work, as seen in the quintile analysis above. We recommend advertisements on facebook.com targeted to the preferences of the target audience nationwide. Also we propose banner ads on popular blogs for cooking and wines, such as smittenkitchen.com and bakerella.com. These banner ads will cost $0.017 per ad and reach 560,000 impressions per month.

The cost for each of these advertisements will vary among Los Angeles and Santa Barbara. During the daytime in Los Angeles, ESPN spots cost $300 and during prime time costs jump up to $2,200. On ESPN our ads reach will reach an average of 555,439 adults 25 to 34 years old. However, the rating the Australian Open (1.7), French Open (1.2) and Master’s Tournament (3.2) is much lower than that of the average rating of ESPN segment.. During the prime-time in Los Angeles, Food Network spots cost $1,600 per spot. On Food Network our ads reach 587,423, with a breakdown of 307,489 women and 279,934 men 25 to 34 years old in the Los Angeles DMA. In Santa Barbara, the ESPN spots during

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media press release FOR IMMEDIATE RELEASE Contact: Ryan Grossenbacher Phone: (425) 999-9999 E-mail: [email protected] The Central Coast: A Hidden Gem for Domestic Wines With the holidays in full swing, a typical staple at the dinner table is wine. When looking for a wine, many of us look no further than California to satisfy our thirst for a quality selection. While it is typical for our minds to immediately associate Napa and Sonoma Valleys with desired wines, the Central Coast is a lesser known region that is producing some quality wines of their own that are certainly worth considering. Home to over 350 wineries, the Central Coast stretches for 250 miles and 4-million acres from San Francisco to Santa Barbara. The area’s ocean influence and unusual configuration of bays, mountains, and valleys make it a hidden gem among domestic wine regions. The area features grape varieties from Albariño to Zinfandel – and nearly everything in between – which thrive in the Central Coast’s warm days and cool nights. These grapes help to create extraordinary Chardonnay and Pinot Noir. In the north end of this region coastal fog heavily influences the production of the area’s Chardonnay, Cabernet Sauvignon, and Merlot. In the southern end of the Central Coast, the fog is also beneficial – as well as lengthy growing season – which helps create some of California’s most sought after Chardonnays. These conditions are almost exclusive to Monterey County. The history of wineries in the Central Coast goes back some 200 years to when Franciscan monks planted vines in the counties of Monterey and Santa Barbara. By the mid 1800s, eleven Spanish

missions occupied the region and gold prospectors from around the globe were settling in the valleys around Santa Barbara. These days the area contains 100,000 acres of vineyards that produce 15% of California’s wines. So this holiday season, consider branching out a bit and maybe experiment the flavor of a Chardonnay or Pinot Noir from the Central Coast. You will be glad you did.

trade publication objectives 1. Achieve a year round awareness of Bridlewood wines in on-premises locations 2. Allow the reader to become familiar with Bridlewood products and continue purchases in the future Strategies: 1. Use the most cost efficient publications to reach our target purchase audience 2. Maintain monthly advertising within our chosen trade publica tions Tactics: 1. Use topic related publications that our relevant to our product and our audience 2. Advertise in the following Trade publications: -Cheers -Restaurant Hospitality

trade publication rationale According to Mintel, on-premise wine sales were composed of $12,910,00 in 2008 and estimated to reach $13,000,000 in sales in 2009. On the same note, supermarket sales of wine were only $5,375,000 in 2008 and estimated to reach $5,597,000 in 2009. Knowing this allowed us to make the easy decision to reach more

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on-premise markets because it provides a large potential to increase sales of Bridlewood wines. To reach on-premise audiences we propose the use of trade publications. This is because these publications reach a refined audience that is composed of people who make purchase decisions in places like bars, restaurants, and lounges that serve wine. These readers are looking for ways to increase sales in their own businesses and by reaching them we can potentially help them add Bridlewood to their business’s wine list. Cheers • Known as the on-premise leader, Cheers is specifically edited for key decision makers such as: Owners, operators, bar managers, food & beverage buyers at national and regional chains and high-volume independent restaurants and bars. • The only beverage business publication devoted specifically to full service restaurants and bars. • Reaches establishments doing a minimum of $500,000 in annual sales with average of $2.2 million.

Locations/audience Reached: • More than 34,000 are owners & GM’s of high volume independents and over 5,600 are owners & top managers of nightclubs & bars. • More than 12,000 are owners, officers or other top managers of chain restaurants, including all of the most powerful casual theme chains: Outback, Friday’s, Cheesecake Factory, Chili’s, Hard Rock Café, Red Lobster, HMS Host, etc. • More than 14,000 are owners, officers, F&B managers of chain and independent hotels: Marriott, Omni, Hyatt, Radisson, etc. Restaurant Hospitality A print and digital publication, is edited for chefs and other commercial foodservice professionals on a monthly basis, including those operating restaurants, hotels, clubs, catering operations, and other commercial foodservice operations. Winner of numerous industry awards for editorial and graphics excellence, Restaurant Hospitality keeps its readers informed of industry trends and happenings, and helps them run their operations more profitably. Topics regularly include new food and equipment products and trends, menu and recipe ideas, industry news, new technology, food safety, emerging new concepts, consumer attitudes and trends, labor and training, and profiles of successful operations.

Circulation/Publication Frequency: • 70,000/Monthly publications

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Circulation/Publication Frequency: • 103,525/Monthly Publication Location/Audience Reached: • Full-service restaurants • Hotels • Motels • Resorts • Fast casual restaurants • Clubs • Other commercial operations.

trade publication press release FOR IMMEDIATE RELEASE Contact: Shannon Costello Phone: (509) 999-9999 E-mail: [email protected] Bridlewood Estate Winery: Bring Your Style To Life With The Flavor of California’s Central Coast

grapes help to create extraordinary Chardonnay and Pinot Noir. In the north end of this region coastal fog heavily influences the production of the area’s Chardonnay, Cabernet Sauvignon, and Merlot. In the southern end of the Central Coast, the fog is also beneficial – as well as lengthy growing season – which helps create some of California’s most sought after Chardonnays. These conditions are almost exclusive to Monterey County. The history of wineries in the Central Coast goes back some 200 years to when Franciscan monks planted vines in the counties of Monterey. By the mid 1800s, eleven Spanish missions occupied the region and gold prospectors from around the globe were settling in the valleys around Santa Barbara Bridlewood Estate Winery only produces the best quality which is sought after by many. So bring your style to life, with the flavor of California’s Central Coast. Visit www.centralcoastflavor.com for more information. Bring your style to life with Bridlewood Estate Winery’s Chardonnay and Pinot Noir.

When looking for a wine, many of us look no further than California to satisfy our thirst for a quality selection. While it is typical for our minds to immediately associate Napa and Sonoma Valleys with desired wines, the Central Coast is a lesser known region that is producing some quality wines of their own that are certainly worth considering. The Central Coast stretches for 250 miles and 4-million acres from San Francisco to Santa Barbara. The area’s ocean influence and unusual configuration of bays, mountains, and valleys make it a unique area for wine. The area features grape varieties from Albariño to Zinfandel – and nearly everything in between – which thrive in the Central Coast’s warm days and cool nights. These

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Media Flowchart

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Creative concept Our Inspiration In order to figure out what consumers feel towards wine and Bridlewood specifically, our agency conducted primary research that included an online survey and a focus group. Our focus group was the main influence of our concept because we were able to obtain great insight directly from wine drinkers. One of the most influential statements that was said was “beer is a yelling drink, and wine is a talking and conversational drink.” This direct quote from one of our focus group participants was where the theme for our campaign came about. “Bring your style to life, with the flavor of California’s Central Coast.” Since Bridlewood is a “talking drink,” we thought about what makes it a talking drink. We found from our focus group participants that when drinking wine, you’re setting the feel of your event. The mood being set is usually always relaxing, romantic, social, celebratory and much more. Once we had come up with the idea to “Bring your style to life” with Bridlewood, we then had to come up with a way to differentiate our wine from others. In order to do this, we looked at what makes Bridlewood so unique and special, which is its unique location on the Central Coast and special micro climate and conditions. More specifically, we have decided to focus on the unique fog covering over the vineyards that comes from the geographical location of the Central Coast. For our trade advertisements, we have decided to use the fog as a great way to appeal to businesses. The fog exemplifies that Bridlewood’s wine is so unique because of the way the grapes are grown in the Central Coast’s climate. With our concept of “Bring your style to life, with the flavor of California’s Central Coast,” we are calling men and women make their events more memorable with Bridlewood Wines.

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Consumer Magazine Advertisements

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trade publication advertisements

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Banner Advertisement

Facebook advertisement

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radio advertisements Music in & under:

Music in & under:

Announcer: “(CONFIDENT) Have you ever walked into a social gathering and been able to tell what kind of tones people are putting out?

Announcer: “(CONFIDENT) People go to lounges and bars to socialize. Some people have to yell to be heard. Others might get a little too crazy on the dance floor, while others can sit back and have a style that draws people towards them. We all know these kinds of people.

Announcer: The ladies man. The jokester. The token tequila girl. Then there is the wine girl, the fine girl. (SFX:LADIES MAN-HEY, THE JOKESTER-SOMEONE LAUGHING, THE TEQUILA GIRL-SOMEONE SCREAMING IN JOY, THE FINE WINE GIRL-OHH LA LA) Announcer: On those same lines, looking at central coast wines, Bridlewood sets its own style amongst other California wines. With unique conditions specific to its origin like: airy soils and a fog that helps create a longer growing season, Bridlewood is truly a wine that sets itself apart and sets a style for all others to admire. Announcer: Bridlewood. Bring your style to life. Announcer: Learn more about Bridlewood wines and our sweepstakes to win a trip to the California Central Coast at centralcoastflavor.com or on Facebook, Twitter, or Foursquare.”

Announcer: Bridlewood wines set their own style amongst other Central Coast wines. With unique growing conditions like airy soils and a fog that allows it to have a longer growing season, Bridlewood is truly a wine that sets a style for others to notice and admire. (SFX: MUSIC UNDER ANNOUNCER) Announcer: Bridlewood. Bring your style to life. Announcer: Learn more about Bridlewood wines and our sweepstakes trip to the California Central Coast at centralcoastflavor. com or on Facebook, Twitter, or Foursquare.” Music up & out

Music up & out

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television advertisements VIDEO

1. OPEN MLS OF GUY LYING FACE DOWN ASLEEP ON A COUCH AND HIS FRIEND SITTING DOWN ON THE COUCH NEXT TO HIM WITH HIS ARM AROUND TWO GIRLS 2. CUT TO MLS OF GUY WHO WAS PASSED OUT ON THE COUCH TAKING SHOTS OF DISTILLED SPIRITS WHILE THE GUY WITH TWO GIRLS AROUND HIS ARM WAS DRINKING A GLASS OF BRIDLEWOOD 3. CUT TO MLS PICTURE OF A GLASS OF BRIDLEWOOD BEING POURED INTO A WINE GLASS 4. DISSOLVE TO BLURRED SCREEN WITH THE GUY PASSED OUT AND THE GUY WITH TWO GIRLS UNDER HIS ARM. THE SCREEN WILL HAVE BRIDLEWOOD: BRING YOUR STYLE TO LIFE WRITTEN ACROSS IT WITH LEARN MORE AT CENTRALCOASTFLAVOR. COM AT THE BOTTOM.

VIDEO

(SFX: SOUNDS OF DOOR OPENING THEN NOISE OF CROWDED BAR

AUDIO (SFX: SOUNDS OF LAWN MOWER AND FAINT SOUND OF TRAMPOLINE BEING JUMPED ON) 1.ANNOUNCER : “(RHETORICAL) I bet you’re wondering how this night started to have an ending like this. Lets take a look.”

2. (SFX: SOUNDS OF PARTYING AND PEOPLE TALKING) 3. (SFX: WINE BEING POURED INTO A WINE GLASS) ANNOUNCER: “Bridlewood wines use airy California soils and a fog that allows for a longer growing season which sets it apart from other central coast wines. Bring your own style to your night with a glass of Bridlewood and see what can happen.” 4. ANNOUNCER: “Bridlewood. Bring your style to life. Learn more about Bridlewood wines and our sweepstakes trip to the central Coast online at www.centralcoastflavor.com or on Facebook or twitter.”

AUDIO

1. OPEN MLS OF GUY WALKING INTO A CROWDED BAR/ LOUNGE THEN YELLING THROUGH THE MUSIC TO TALK TO SOME GIRLS 2. CUT TO MLS OF GUY GRABBING A GLASS OF BRIDLEWOOD WINE AND PUTTING OUT THE VIBE AT THE BAR OR LOUNGE AREA WHILE CASUALLY TALKING TO SOME GUYS AND GIRLS INCLUDING THE CUTE ONE. 3. CUT TO MLS PICTURE OF A GLASS OF BRIDLEWOOD WINE BOTTLE. 4. DISSOLVE TO BLURRED SCREEN WITH THE. THE SCREEN WILL HAVE BRIDLEWOOD: BRING YOUR STYLE TO LIFE WRITTEN ACROSS IT WITH LEARN MORE AT CENTRALCOASTFLAVOR.COM AT THE BOTTOM.

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1.ANNOUNCER: “(CONFIDENT) So a guy walks into a bar and yells to be heard amongst the loud background music. He can’t be heard by anyone including that cute girl that catches his eye.’ 2. (SFX: SOUNDS OF WINE BEING POURED AMONGST CROWD/MUSIC) ANNOUNCER: “So he tries another tactic, he will try to be heard through the tones he puts out by his actions. He grabs a bottle of Bridlewood wine. Suddenly, he is noticed. He has that unique aspect.” 3.) ANNOUNCER: “Bridlewood wines have that unique tone that sets it apart from the noise created from other central coast wine. Grown with unique conditions like airy soils and a fog that creates a longer growing season gives Bridlewood a style that is truly memorable.” 4. ANNOUNCER: “Bridlewood. Bring your style to life. Learn more about Bridlewood wines and our sweepstakes online at centralcoastflavor.com or on Facebook and twitter.”

Website: www.CentralCoastFlavor.com

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sales promotion Events Rationale Another promotion that we have planned is involvement within various wine tasting events. These events will help to produce product trial, which is our main goal. We have planned to enter into seven different food and wine events and trade shows. We feel that by doing these events we will not only produce trial but also raise awareness about the Bridlewood brand. The seven different events that we have decided to take part in are the LA Wine Fest, LA Food and Wine Festival, International Wine and Food Fest in Washington DC, Miami International Wine Fair, the Windy City Wine Fest in Chicago as well as the LA Travel and Adventure Show and the National Restaurant Association Trade Show. LA Wine Fest The first event we will be taking part in is the LA Wine Fest. This event is the Los Angeles area’s largest consumer wine event (LaWineFest.com). For this event we’re promoting Bridlewood through having a wine tasting table where they can sample the wine and also learn more about the uniqueness of Bridlewood. The event details are:

When: June 11-12 Where: Raleigh studios in Los Angeles

Cost: $450-per table, $180-electrical outlets, $600-full page color ad in book—total: $1,230 Includes: • 8 ft. covered table for wine tasting • Company listing in program book and on the festival website • Glasses for tasting • Ice bin on table • Water pitcher • Spit bucket Los Angeles Times: Celebration of Food and Wine The Next event we’re planning on being involved in is the LA Food and Wine Festival. We have chosen to take part in a third Los Angeles festival because LA is a major culinary market of influence setting, trends in food and beverage, and there was a total of $18.86 Billion sales in 2009 for Food & Beverage (LA Times Media Kit). The event details are:

When: September 2011 Where: TBD Cost: $25,000 Attendance: 7,000+ Includes: • Sponsor logo on all event full page print ads (approx. 40% of print space) • Sponsor ID on a minimum of two (2) pages of the LAT Celebra-

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• • • • • • • • •

tion of Food & Wine Program Guide (Sponsor ID includes logo or company name within the copy) Sponsor logo on LAT Celebration of Food & Wine website for nine (9) months with live link to sponsor URL Event Presence Custom activation area - i.e. booth, storefront area, lounge area etc. On-site activation rights Sponsor logo on event Thank You banners Advertising One (1) Full Page 4-color ad in the Celebration of Food & Wine Program Guide One (1) Half Page B/W ad in the Thursday FOOD section 100,000 ROS impressions on latimes.com

Windy City Wine Festival The next event we will be doing is the Windy City Wine Festival in Chicago. This festival provides an opportunity for consumers to sample from more than 270 wines from around the world. During this event attendees can also learn about new and exciting varieties from the experts in a relaxed festival setting (windycitywinefestival.com). The event details are:

When: September 10-11 Where: Buckingham Fountain, Chicago, IL.

Cost: $400 Attendance: 11,000-12,000 Includes: • 10x10 tented display • Skirted table • 10 entry passes to festival • 4 staff badges for booth • Booth sign with vendor name • Vendor listing in souvenir program on event website Washington D.C. Internation Wine and Food Festival The next event we are going to be an exhibitor in is the Washington D.C. International Wine and Food Festival. According to their website, The Washington D. C. International Wine & Food Festival (IWFF) is the most popular event of its kind in the MidAtlantic. The event has much more to offer than just tasting foods and wines, it celebrates all different varieties of wine, cuisine and culture that shines a light on D.C. as a prominent and world-class dining and travel destination. This event will be really beneficial to exhibit in because 47% of the attendees are in our age group, 2134 (wineandfooddc.com) The event details are:

When: February 10-13 Where: Downtown D.C. Cost: $890-Wine Table, $1,000-full page color ad in Show Guide— Total $1,890 Attendance: 4,000+ consumers, 1,500 trade reps. Includes:

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• • • •

Company listing in IWFF Website Copy of trade attendee database 10x10 exhibit space Identification signage

Miami International Wine Fair The next consumer trade event we’re going to partake in is the Miami International Wine Fair. This event is one of the largest wine trade shows in America, is features around 500 producers and more than 1,500 wines from around the world. It includes hundreds of famous importers, distributors and retailers in the Fair’s innovative Buyers Program that guarantees exhibitors meetings with relevant potential buyers from all over the U.S.A, Canada, Mexico and the Caribbean. (miamiwinefair.com). The details are:

When: October 14-17 Where: Miami Beach Convention Center Cost: $3,200-Basic Deluxe Booth Attendance: 6,700+ Includes: • 6 foot table • Identification signage • Ice tray • Water Pitcher • Spittoon

• • • • •

10x10 exhibit space 8 ft. hard walls Tower display Carpeting Premium location guaranteed in the middle of exhibit floor

Los Angeles Travel and Adventure Show The next event we’re taking part in is the La Travel and Adventure Show. This event is strictly for consumers and is a little more diverse because it isn’t just a wine tasting event. The Travel and Adventure Show is a global travel extravaganza catering to educated and affluent consumers who seek unique experiences in travel, dining and entertainment (LA Times Media Kit). The event details are:

When: March 19-20 Where: LA Convention Center Cost: $25,000 (Supporting Sponsor Package) Attendance: 20,000+ Includes: • Sponsor identification on a minimum of two (2) pages of the Travel & Adventure • Show Program Guide • Sponsor listing and logo on Travel & Adventure Show website for nine (9) months with live link to sponsor URL • Event Presence

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• • • • • • •

200 sq. ft. booth in Sponsor Village Sponsor logo on “Thank You” signs Destination workshop Entertainment on Global Beat Stage Inclusion of marketing materials in Trade envelope distributed to 1,200 travel agents Advertising -One (1) Quarter page B/W ad in the • Travel & Adventure Show Guide (tabloid) National Restaurant Association Trade Show And finally, the last even we will be doing is the National Restaurant Association Trade Show. This event is perfect for new companies which may be unknown. A perfect mix of people attend that include, consumers, restaurant owners, food buyers, and operators. The show allows for businesses to get their name into the competitive business world and let our people who know everything about the product explain it to others and let them see how special Bridlewood is. As well as different kinds of consumers attending, there are also people from all over the world who attend which opens up a lot of opportunity to export. In previous years there has been people visiting from Africa, Turkey, the Middle East and even Europe (show.restaurant.org). The details for this show are:

Cost: $2,895—booth space, $600-corner space—Total $3,495 Includes: A full exhibit package which consists of— • The opportunity to involve in direct customer prospect conversations with NRA social media • Supplement marketing efforts with selecting from/renting the 2011 and 2010 NRA Show attendee lists • Free promotional products like, stickers, postcards, and more • Opportunity to showcase our product in the NRA Show Guide that is used as a buyer directory all year. o Includes product pricing o Company Profile/ Contact Information o Picture of product

When: May 21-24 Where: McCormick Place, Chicago

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Event Booth Design

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sweepstakes: As a promotional tactic, Bridlewood proposed a sweepstakes along with the traditional media. The reason for doing this was to create brand awareness and brand loyalty constantly among the consumer. This also allows consumers to become involved with the company and in turn allow them to learn more about them. We proposed an all-inclusive sweepstakes where the lucky winner could visit the Central Coast and more importantly the Bridlewood Estate Winery for two nights and three days. Not only did we propose one grand prize but we thought it would be a good idea to allow other participants to win something as well. Some of the other prizes include an Ipad and gift certificates to participating Olive Garden Restaurants. Upon entering the sweepstakes, the participant will be notified via the following email: “Hi _____, Thank you for entering the E & J Gallo Bridlewood Sweepstakes. Drawings will be held on July 1, 2011 and winners will be notified shortly thereafter. Remember that you and your friends can continue to enter daily at www.facebook.com/centralcoastflavor or www.centralcoastflavor.com. Continue to follow us on our social networks( Facebook, Twitter, Gather, Blogger, CentralCoastFlavor. com) for future information about promotions. Also remember to look for us in the wine section of your grocery store. Thank you again for being a part of the Bridlewood community and best of luck. From all of us at E & J Gallo, Ben, Joy, Kiley, Patrick, Robert, Ryan, and Shannon.” The purpose of this email is to notify the contestant and also allow them to learn more about Bridlewood products and help create a relationship with the consumer. People may enter sweepstakes by either finding the form on Facebook or on the centralcoastflavor.

com website. However, using social media, people can potentially be entered into the sweepstakes by tweeting, Facebooking, or blogging about Bridlewood products or experiences. Doing this creates incentives to visit the social networking or Internet sites. The form and rules to be entered into the sweepstakes will look a lot like the following: FORM E & J Gallo Bridlewood Sweepstakes First name: Last name: Email: Address: City: State: Zip code: Date of birth: Gender: How often do you entertain? How often do you eat out? Where are you most likely to drink wine? Do you prefer chardonnay or pinot noir? By entering this contest, I agree to the official rules: (check if applicable) * Customizable Email Campaign- By using the responses to these questions, we can create customized emails that can be sent to respondents in effort to follow up with our potential customers. To help people stay aware of what Bridlewood is doing, we will be sending out these customized emails in the third quarter ( July 1st through September 30th). By doing this our audience will be constantly aware of how they can learn more about Bridlewood but also how they can help use Bridlewood with certain foods and at particular events like social outings and parties. .

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OFFICIAL RULES NO PURCHASE NECESSARY. PURCHASE WILL NOT INCREASE YOUR CHANCE OF WINNING. Open only to legal residents of the 50 United States and the District of Columbia, 21 years of age or older at the time of entry. Void where prohibited by applicable law. Sweepstakes begin at 12:00:01 a.m. ET on April 1, 2011 and end at 11:59:59 p.m. ET on June 30, 2011. All prizes won by Minors will be awarded to their parents or legal guardians on their behalf. Winners may be required to sign an Affidavit of Eligibility and Liability/Publicity Release as a condition to the delivery of the applicable prize. Employees and their immediate families or household members of E & J Gallo and any of their affiliates and subsidiaries are not eligible to enter the Sweepstakes. LIMIT ONE ENTRY PER ADDRESS PER DAY DURING ENTRY PERIOD. E & J Gallo and its agencies will not accept entries that are late, incomplete, misdirected, unintelligible or lost. Use of any robotic, automatic, programmed or similar entry method or more than one entry per Entry Period will void all entries and result in disqualification. TWO WAYS TO ENTER: 1) Visit www.facebook. com/centralcoastflavor and check out our info tab and click on the sweepstakes link. 2) Or visit us at our website, www.centralcoastflavor.com, and click on the sweepstakes link. Winners will be selected at random. Odds of winning are dependent on amount of entries. PRIZES: 1) Grand Prize includes an all expense paid, weekend long trip for two to Bridlewood Estate Winery on the Central Coast. Enjoy VIP treatment while you experience wine tasting on the scenic location that brings you Bridlewood chardonnay and pinot noir. 2) First prize gives you the best way to experience web, email, photos, and video with your free iPad. 3) Consolation prizes of $50 gift cards to Olive Garden will also be given to twenty lucky participants.

One the main ideas of this campaign is to spark on-premise sales not only for Bridlewood but for on-premise businesses. Doing this not only helps increase sales but it also helps create sales later on for both our company and for the other businesses. So to drive consumers to on-premise locations and to make potential purchases, we have proposed several promotional incentives. Foursquare check-ins To help tie in our social networking media with Bridlewood, we propose the idea of using Foursquare. Doing this we can help drive consumers to on-premise locations to make potential purchases and also create excitement about the Bridlewood company. To do this, we will have promotional dates and locations available on the website as well as Facebook, Blogger, Gather, and Twitter. The idea behind this is that on certain dates, the 1st 50 people to check-in using Foursquare at a participating restaurant will receive a free bottle of Bridlewood Chardonnay (if they are of legal drinking age) via the mail. The participating Olive Garden and Outback Steakhouse restaurants will be the check-in points. By using this tactic multiple times throughout our campaign, we will create excitement for our brand while also having consumers make more purchases at on-premise sites. This tactic will be used once a month in all of the in our five chosen demographics. People can either pick between participating Olive Gardens or Outback Steak house that our posted on our social accounts. Total budget( 50 bottles of wine x 5 locations x 12 months x $15/bottle of Chardonnay wine= $45,000.00).

Total Budget for Sweepstakes- $10,000 for trip to Central Coast( airfair, hotel, wine visit. Transportation) + $500 for Apple Ipad + $1,000 for gift certificates = $11,500 On-premise Promotions

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Sales promotion FLowchart

55

56

budget CAMPAIGN SPENDING TOTAL BUDGET PRODUCTION COST(15% of budget) SALES PROMOTIONS Trade Events Cost of materials for trade events Consumer Sweepstakes and website CONSUMER MAGAZINES 805 Living LA Magazine Brand X TELEVISION LA- Australian Open Santa Barbara-Australian Open LA-French Open Santa Barbara-French Open LA-Masters Santa Barbara-Masters LA-Food Network Santa Barbara-Food Network National-Jimmy Kimmel RADIO KIIS KKGO WLYF

COST $2,500,000 $375,000 $236,715 $60,215 $100,000 $76,500 $267,214 $27,168 $120,240 $119,808 $394,000 $9,000 $2,100 $9,000 $2,100 $9,600 $3,000 $153,600 $3,600 $202,000 $566,880 $300,000 $102,400 $10,880

WASH-DC WMJ-X WLIT INTERNET Facebook Banner Ads (4 sites) TRADE MAGAZINES Cheers Restaurant Hospitality

$51,200 $44,800 $57,600 $319,540 $62,500 $257,040 $290,640 $172,680 $117,960

TOTAL SPENDING $2,449,989.00

57

appendices primary research Methodology:

and communication departments of Washington State University. Due to a low RSVP rate of the faculty, we found people 21 years and older who consumed wine to fill their places.

The process For our primary research we conducted a consumer survey using Qualtrics.com and also used a focus group. The goal behind this research was to get a better understanding of the consumer’s attitudes towards wine and Bridlewood Estate Winery.

Qualtrics Survey Questions 3. Where are you most likely to try new beverages? The purpose of this question was to target where consumers pay most attention to trying new things. 43% of consumers were most likely to try new beverages in a bar or lounge. 35% of consumers preferred restaurants. At home was the lowest percentage of consumers at 22%.

Sample and Control Factors To conduct our research we selected a group of people aging 21 years or older. The Qualtrics.com survey was composed of approximately 225 respondents in the adult population of the United States. Of those 225 surveys, 223 of them were completely finished. Also, our focus group was composed of 5 people (women and men) who ranged in age from 21 to 65 years old. This focus group was refined even more by only including people who consumed alcoholic beverages and more importantly wine. The only factor that played a role in research collection was the amount of time we had to conduct our survey and also the amount of people that showed up to our focus group. Response Rates Our survey was composed of 21 questions and was sent out to 1,019 people via Facebook. Of those 1,019 people, 225 actually took the survey. This gave us a response rate of 22.08%.

4. What is your preferred source of information for new beverages? The purpose of this question was to see what information sources consumers pay attention to. A bartender was one of the strongest sources at 27% in comparison to the internet at a low 3%.

225/1,019 X 100= 22.08% We initially hoped to get 10 participants for our focus group. We sent out invitations to faculty members in the business, hospitality,

58

11. What is your main source of entertainment media? The purpose of this question was to see what media is most effective relaying information to consumers. Internet was the strongest media used at 62%. Newspapers were the least affective source of media at a low 0%.

Focus Group Findings 14. What are some of your interests or hobbies? This question was used to help us get an idea of what the top interests are of our target wine consuming demographic. We found the following activities to be reoccurring amongst our survey respondents: 1.Outdoors 2.Travel 3.Cooking 4.dining out 5.shopping 6.social events 21. What is your preferred beverage? The purpose of this question was to see what consumers prefer as a choice of drink. Microbrews were the most popular at 32.4% and Imported Wines were the leas selected at 8.1%.

Perceptions of wine When asked how people thought about wine, they generally responded, as it being more of a high- class drinks that is usually not consumed on a regular basis. It can be a status inducing alcoholic beverage. Also, we found that people perceive wine to be more of a calm and social type of beverage. This meaning that it is more of a talking type of drink and not a yelling type of drink (distilled spirits and beer). Domestic Wine is also perceived to be almost always from the West Coast or “wine country.” When someone drinks wine People thought wine to be consumed more for get together such as holidays, social events, or even when they are cooking. Many people within the focus group said they would consume wine on a night when they stay in(perhaps with friends or a significant other). Also, we found that wine is often used as a gift for certain social functions. Wine seemed to have an acquired taste among our focus group participants. This meaning that they felt wine tasted better the more it was consumed, especially when it came to flavor-rich wines. Health benefits Our focus group participants knew about the potential

59

cardiovascular health benefits of red wines. They also knew that lighter wines such as Chardonnay did not have as much of a significant amount of benefits as red wine did. As for the health benefits, they did not seem to relevant to any of the participants even though they did acknowledge the potential health benefits. Why buy one wine over another The focus group seemed to agree that trying new wine was based upon where the wine would be consumed, the style of the wine, and the pricing. People tend to buy different wines when it is for a particular event or person. Based upon the importance of this situation or person, the consumer will buy wine accordingly. We also found that consumers may try a new wine strictly based upon its appearance or label. They might buy a wine that looks new age over a wine who’s labeling appears boring. One of the biggest factors in purchasing wine was the price. Sometimes the consumer doesn’t care about the quality of wine and will make a purchase based upon the bottle size or brand of a wine company. Sales promotions/ image The focus group seemed to agree that they probably wouldn’t use a coupon or notice a stand when purchasing wine at a store or supermarket. Also, we found that a wine company’s background or history was irrelevant to the consumer. However, our focus group agreed that companies who tried to give back to the public or held events seemed to spark much more interest in purchase habits and brand loyalty with the customer.

60

Qualtrics Survey Questions

61

62

cost efficiency analysis Medium

Circulation

Unit Size

Cost

CPP

CPM

Other Considerations/ Comments

Magazine Cooking Club

573,806

Full Page Color

$45,000

$450.00

$78.42

1 time rate

573,806

Full Page Color

$43,650

$436.50

$76.07

3 times rate

573,806

Full Page Color

$42,300

$423.00

$73.72

6 times rate

Fine Cooking

253,873

Full Page Color

$23,400

$234.00

$92.17

1 time rate

Food & Wine

1,399,894

Full Page Color

$86,000

$860.00

$61.43

1 time rate

1,399,894

Full Page Color

$83,400

$834.00

$59.58

3 times rate

1,399,894

Full Page Color

$80,800

$808.00

$57.72

6 times rate

76,968

Full Page Color

$9,895.00

$98.95

$128.56

1 time rate

76,968

Full Page Color

$9,695.00

$96.95

$125.96

3 times rate

76,968

Full Page Color

$9,495.00

$94.95

$123.36

6 times rate

400,862

Full Page Color

$30,980.00

$309.80

$77.28

1 time rate

400,862

Full Page Color

$30,370.00

$303.70

$75.76

6 times rate

35,000

Full Page Color

$1,865.00

$18.65

$53.29

1 time rate

35,000

Full Page Color

$1,795.00

$17.95

$51.29

3 times rate

35,000

Full Page Color

$1,660.00

$16.60

$47.43

6 times rate

89,653

Full Page Color

$9,215.00

$92.15

$102.79

1 time rate

Wine Enthusiast

Wine Spectator

Wine Maker

Wine & Spirits

Travel + Leisure

805 Living

Bon Appetit

Los Angeles Magazine

Medium

Newspaper The Boston Globe

63

89,653

Full Page Color

$8,840.00

$88.40

$98.60

4 times rate

89,653

Full Page Color

$8,365.00

$83.65

$93.30

8 times rate

973,821

Full Page Color

$111,715.00

$1,117.15

$114.72

1 time rate

973,821

Full Page Color

$108,365.00

$1,083.65

$111.28

6 times rate

973,821

Full Page Color

$105,012.00

$1,050.12

$107.84

12 times rate

25,826

Full Page Color

$2,541.00

$25.41

$98.39

1 time rate

25,826

Full Page Color

$2,390.00

$23.90

$92.54

3 times rate

25,826

Full Page Color

$2,264.00

$22.64

$87.66

6 times rate

1,341,816

Full Page Color

$143,612.00

$1,436.12

$107.03

1 time rate

1,341,816

Full Page Color

$139,304.00

$1,393.04

$103.82

3 times rate

1,341,816

Full Page Color

$135,431.00

$1,354.31

$100.93

6 times rate

139,438

Full Page Color

$21,320.00

$213.20

$152.90

1 time rate

139,438

Full Page Color

$20,680.00

$206.80

$148.31

3 times rate

139,438

Full Page Color

$20,040.00

$200.40

$143.72

6 times rate

Circulation/ Rating/Reach

Size/ForCost mat/ Show

CPP

CPM

Other Considerations/ Comments

Mon.-Fri.

264,105

Full Page B/W

$74,718

$747.18

$282.91

1 time rate

Mon.-Fri.

465,892

$95,130

$951.30

$204.19

1 time rate

Sat.

264,516

Full Page B/W

$74,718

$747.18

$282.47

1 time rate

Full Page B/W

Sat.

378,025

$95,130

$951.30

$251.65

1 time rate

Sun.

418,529

Full Page B/W

$89,964

$899.64

$214.95

1 time rate

Full Page B/W

Sun.

803,220

$143,010

$1,430.10

$178.05

1 time rate

Mon.-Fri.

264,105

Full Page Color

$83,925

$839.25

$317.77

1 time rate

Full Page B/W

Mon.-Fri.

465,892

$103,440

$1,034.40

$222.03

1 time rate

Sat.

264,516

Full Page Color

$83,925

$839.25

$317.28

1 time rate

Full Page Color

Sat.

378,025

$103,440

$1,034.40

$273.63

1 time rate

Sun.

418,529

Full Page Color

$100,744

$1,007.44

$240.71

1 time rate

Full Page Color

Sun.

803,220

Full Page Color

$154,270

$1,542.70

$192.06

1 time rate

Mon.-Fri.

657,467

Full Page B/W

$227,370.24

$2,273.70

$345.83

1 time rate

The Boston Herald

Los Angeles Times

Morn. Comb.

138,260

Full Page B/W

$116,161.50

$1,161.62

$840.16

1 time rate

Sat.

117,669

Full Page B/W

$116,161.50

$1,161.62

$987.19

1 time rate

Sat.

783,664

$227,370.24

$2,273.70

$290.14

1 time rate

Sun.

95,635

Full Page B/W

$116,161.50

$1,161.62

$1,737.45

1 time rate

Full Page B/W

Sun.

983,702

$284,680.64

$2,846.81

$242.64

1 time rate

Morn. Comb.

138,260

Full Page Color

$116,161.50

$1,161.62

865.48

1 time rate

Full Page B/W

Mon.-Fri.

657,467

$238,946.24

$2,389.46

$363.43

1 time rate

Sat.

117,669

Full Page Color

$116,161.50

$1,161.62

$1,016.93

1 time rate

Full Page Color

Sat.

783,664

$238,946.24

$2,389.46

$304.91

1 time rate

Sun.

95,635

Full Page Color

$119,661.50

$1,196.62

$1,251.23

1 time rate

Full Page Color

Sun.

983,702

Full Page Color

$298,020.64

$2,980.21

$302.96

1 time rate

Mon.-Fri.

162,260

Full Page B/W

$35,658

$356.58

$219.76

1 time rate

Chicago SunTimes

The Miami Herald

Mon.-Fri.

275,641

Full Page B/W

$45,504

$455.04

$165.08

1 time rate

Sat.

210,027

Full Page B/W

$45,504

$455.04

$216.66

1 time rate

Sat.

139,476

$35,658

$356.58

$255.66

1 time rate

Sun.

251,260

Full Page B/W

$45,504

$455.04

$181.10

1 time rate

Full Page B/W

Sun.

238,613

$51,156

$511.56

$214.39

1 time rate

Mon.-Fri.

275,641

Full Page Color

$50,154

$501.54

$181.95

1 time rate

Full Page B/W

Mon.-Fri.

162,260

$39,138

$391.38

$241.20

1 time rate

Sat.

210,027

Full Page Color

$50,154

$501.54

$238.80

1 time rate

Full Page Color

Sat.

139,476

$39,138

$391.38

$280.61

1 time rate

Sun.

251,260

Full Page Color

$50,154

$501.54

$199.61

1 time rate

Full Page Color

Sun.

238,613

$54,971

$549.71

$230.38

1 time rate

1 time rate

Full Page Color

The Washington Post

Chicago Tribune

64

Mon.-Fri.

582,844

Full Page B/W

$109,998

$1,099.98

$188.73

1 time rate

Sat.

552,363

Full Page B/W

$109,998

$1,099.98

$199.14

1 time rate

Sun.

822,208

Full Page B/W

$153,972

$1,539.72

$187.27

1 time rate

Mon.-Fri.

582,844

Full Page Color

$120,362

$1,203.62

$206.51

1 time rate

Sat.

552,363

Full Page Color

$120,362

$1,203.62

$217.90

1 time rate

Sun.

822,208

Full Page Color

$166,776

$1,667.76

$202.83

1 time rate

Medium

(Persons) Circulation

18-34 F & M Reach Target

Rating

Cost

Rating 18-34

CPP

CPM

Other

178,000

24,000

3

$2,442.00

1

$2,442.00

$101.75

during winefest

Greys Anatomy

1,051,000

199,000

13

$57,304.00 5

$11,460.80

$287.96

Bachelorette

635,000

95,000

7

$30,856.00 2

$15,428.00

$324.80

Desperate Housewives

868,000

160,000

10

$44,080.00 4

$11,020.00

$275.50

Glee

625,000

125,000

7

$30,856.00 3

$10,285.33

$246.85

House

854,000

201,000

9

$39,672.00 5

$7,934.40

$197.37

90120

170,000

71,000

2

$8,816.00

2

$4,408.00

$124.17

Supernatural

278,000

74,000

3

$13,224.00 2

$6,612.00

$178.70

America's Next Top Model

128,000

32,000

3

$13,224.00 1

$13,224.00

$413.25

Big Bang

510,000

87,000

6

$26,448.00 4

$6,612.00

$304.00

Two and a Half Men

685,000

79,000

8

$35,264.00 2

$17,632.00

$446.38

Television (All in LA) Morning Good morning LA ABC

FOX

CW

CBS

65

Late Night Fox News Wed 10pm

598,000

122,000

6

$8,898.00

3

$2,966.00

$72.93

Tonight show

262,000

33,000

4

$5,068.00

1

$5,068.00

$153.58

Medium (National)

(Persons) Circulation

25-34 Est. Population

Rating

Cost

Rating 25-34

CPP

CPM

Jimmy Kimmel Live

1,700,000

230,000

2

$13,000.00 0.28

$46,428.57

$56.39

Other

Medium (National)

(Persons) Circulation

25-34 Est. Population

Cost

Rating 18-49

CPP

CPM

Desperate Housewives

14,058,000

2,586,672

$210,064.00

4.8

$43,763.33

$81.21

Two and a Half

14,625,000

1,681,875

$206,722.00

4.8

$43,067.08

$122.91

House

12,614,000

2,964,290

$226,180.00

4.9

$46,159.18

$76.30

90210

1,725,000

721,050

$38,426.00

0.9

$42,695.56

$53.29

Gossip Girl

2,143,000

895,774

$47,248.00

1.2

$39,373.33

$52.75

Glee

9,772,000

1,954,400

$272,694.00

4.3

$63,417.21

$139.53

One Tree Hill

2,250,000

940,500

$39,382.00

1.1

$35,801.82

$41.87

Life Unexpected

2,344,000

979,792

$33,725.00

1.1

$30,659.09

$34.42

Amer. Top Model

4,430,000

1,107,500

$63,285.00

1.5

$42,190.00

$57.14

Greys Anatomy

13,552,000

2,561,328

$222,113.00

5.1

$43,551.57

$86.72

Private Practice 9,415,000

1,779,435

$142,661.00

3.5

$40,760.29

$80.17

Big Bang Theory

2,432,304

$195,077.00

5.3

$36,806.98

$80.20

Vampire Diaries 3,458,000

1,445,444

$74,913.00

1.6

$46,820.63

$51.83

Smallville

2,747,000

730,702

$34,163.00

1.2

$28,469.17

$46.75

Supernatural

2,635,000

700,910

$29,100.00

1.2

$24,250.00

$41.52

Medium (Los Angeles Cable)

25-34 Est. Population

Rating

Cost

CPP

CPM

Chopped

587,423

0.87

$1,600.00

$1,839.08

$2.72

Iron Chef America

587,423

0.87

$1,600.00

$1,839.08

$2.72

Australian Open

555,439

1.7

$300.00

$176.47

$0.54

French Open

555,439

1.2

$300.00

$250.00

$0.54

14,224,000

66

The Masters

555,439

3.2

$300.00

$93.75

$0.54

Medium

Circulation/ Reach

GRPs

Faces/cost

CPP

CPM

Frequency

Outdoor Poster-LA

356,378400/93.3%

100

529/$396,750

$142.52

$1.11

29.8X

Rotary BulletinLA

355,616,800/87.4%

100

253/1,986,050

$714.97

$5.58

31.8X

Outdoor Poster- Washington DC

122,796,800/93.4%

100

276/$414,000

$146.56

$3.37

30.2X

Rotary BulletinWashington DC

124,345,200/87.6%

100

149/$983,400

$347.66

$7.91

32.3X

Junior PosterWashington DC

13,857,200/86.4%

45

49/$19,600

$15.49

$1.41

14.7X

Outdoor Poster-Chicago

176,265,600/93.4%

100

384/$264,960

$94.01

$1.50

30.2X

Rotary BulletinChicago

175,593,600/87.5%

100

134/$670,000

$238.64

$3.82

32.1X

Junior PosterChicago

175,148,400/93.3%

100

719/$82,685

$29.53

$0.47

30.0X

Outdoor Poster-Miami

51,777,600/93.5%

100

85/$68,000

$23.76

$1.31

30.6X

Rotary BulletinMiami

50,912,400/87.6%

100

29/$116,000

$41.21

$2.28

32.1X

Junior PosterMiami

8,254,400/93.5%

100

22/$4,620

$1.62

$0.56

30.6X

Outdoor Poster-Boston

120,960,000/93.3%

100

348/$261,000

$93.36

$2.16

30.0X

Rotary BulletinBoston

120,775,200/87.5%

100

79/$962,220

$344.73

$7.97

31.9X

Junior PosterBoston

11,944,800/85.9%

45

54/$16,200

$13.26

$1.36

29.4X

Outdoor [Cost Analysis (4 - week circulation)(18+ population)

67

Medium

Circulation/ Cume/Reach (%)

Unit of Space/ Cost

CPP

CPM

Medium

Circulation/ Rating/Reach

Size/ForCost mat/ Show

CPP

CPM

Other Considerations/ Comments

National Restaurant Association Trade Show—Chicago

58,000 attendees

$28.95/ sq. ft. $300/ea. Open corner

$28.95

$49.91

Radio WLYF Miami

7.4

AM/FM Drive

$85

$11.49

$5.38

Adult Contemporary

LA Wine Fest— Los Angeles

3,000 attendees

$450/booth $50—1 electrical outlet Other Options: $50—Logo in book $250—1/2 pg. b/w ad (color +$100) $500—Full pg. b+w (color +$100)

$50.00

WHYI Miami

5.2

AM/FM Drive

$55 x :60

$10.58

$4.95

Adult Contemporary

$40 x :30

$7.69

$3.60

WKLG Miami

0.1

AM/FM Drive

$30

$300

$140.49

Adult Contemporary

KIIS - LA

6

AM/FM Drive

$1,250

$208.33

$21.43

Adult Contemporary

KOST - LA

4.3

AM/FM Drive

$1,250

$290.70

$29.90

Adult Contemporary

KGMX - LA 0.1

AM/FM Drive

$800

$8,000

$822.92

Adult Contemporary

WASH DC

5.4

AM/FM Drive

$400

$74.70

$18.84

Adult Contemporary

WATD Boston

0.7

AM/FM Drive

$35

$500

$13.95

Adult Contemporary

WSRS Boston

0.5

AM/FM Drive

$30

$60

$16.74

Adult Contemporary

WMJX Boston

5

AM/FM Drive

$350

$70

$19.53

Adult Contemporary

WPLM Boston

1.4

AM/FM Drive

$70

$50

$13.95

Adult Contemporary

WLIT Chicago

3.3

AM/FM Drive

$450

$136.36

$23.07

Adult Contemporary

WSSR -Chicago

0.3

AM/FM Drive

$80

$266.67

$45.11

Adult Contemporary

WZVN Chicago

0.1

AM/FM Drive

$60

$600

$101.51

Adult Contemporary

WPOW Miami

4.3

AM/FM Drive

$50

$11.63

$5.45

Contemporary Hit Radio

WKIS -Miami

2.8

AM/FM Drive

$40

$14.29

$6.69

Country

KKGO - LA 1.6

AM/FM Drive

$800

$500

$51.43

Country

WKIK - DC

AM/FM Drive

$50

$250

$63.60

Country

Events

Boston Wine Expo-Boston

17,500 attendees

Windy City Wine 11,500 attendFestival—Chiees cago

Washington 5,500 attendees D.C. International Wine & Food Festival—Washington D.C.

Miami International Wine Fair—Miami, FL.

$166.67

6,700 attendees

$400/booth Other Options: Sponsorship: $6,500—Official $6,500—Hospitality 1 day $8,500 Hospitality 2 days

$40.00

$890/booth other options: $200-logo on website $500-1/4 pg. ad in Show guide $700-1/2 pg. ad. In Show guide $1,000—full page ad. In Show Guide

$89.00

$1,875/ Basic Booth Other Options: $3,200/Basic Deluxe Booth $28.00/sq. ft.—Custom Pavillion

$187.50

$34.78

$161.82

$279.85

68

0.2

WUSN Chicago

3.8

AM/FM Drive

$500

$131.58

$22.26

Country

WFLC Miami

4.9

AM Drive

$90

$18.37

$8.60

Hot Adult Contemporary

KYSR - LA

3.2

AM Drive

$1,250

$390.63

$40.18

Hot Adult Contemporary

WRQX DC

3.5

AM Drive

$700

$200

$50.88

Hot Adult Contemporary

WBMX Boston

3.5

AM Drive

$250

$71.43

$19.93

Hot Adult Contemporary

WSNE Boston

0.4

AM Drive

$25

$62.50

$17.43

Hot Adult Contemporary

WXLO Boston

1.7

AM Drive

$95

$55.88

$15.59

Hot Adult Contemporary

WTMX Chicago

4.1

AM Drive

$600

$146.34

$24.76

Hot Adult Contemporary

WXLC Chicago

0.8

AM Drive

$185

$231.25

$39.12

Hot Adult Contemporary

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sources “25 Great American Pinot Noirs - Forbes.com.” Forbes.com - Business News, Financial News, Stock Market Analysis, Technology & Global Headline News. Web. 07 Nov. 2010. . “Advertising Facebook.” Welcome to Facebook. Facebook, 2010. Web. 08 Nov. 2010. . Bridlewood Estate Winery. Web. 07 Nov. 2010. . Clear Channel Outdoor - Global Outdoor Advertising. Clear Channel Outdoor, 2010. Web. 08 Nov. 2010. . E.&J. Gallo Winery. Web. 08 Nov. 2010. . Fish Eye. Web. 08 Nov. 2010. Foursquare. Web. 08 Nov. 2010. . “LA Wine Festival.” LAWineFest 2010. Web. 14 Nov. 2010. . “Lamar Advertising.” Lamar Advertising Company. Web. 08 Nov. 2010. . “Los Angeles Times Food and Wine Festival.” Los Angeles Times Media Kit. LA Times. Web. 15 Nov. 2010. . “Los Angeles Times Travel and Adventure Show.” Los Angeles Times Media Kit. LA Times. Web. 15 Nov. 2010. . “Miami International Wine Fair.” Miami International Wine Fair. Web. 14 Nov.

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2010. .

“NRA Show 2011.” NRA Show 2011. Web. 14 Nov. 2010. . Simmon’s. Choices 3. 2010. Sonoma County Winery | Kendall Jackson. Web. 08 Nov. 2010. . SRDS.com. Web. 20 Nov. 2010. “Top Ten Best Chardonnays.” Wine & Spirits Magazine. Web. 07 Nov. 2010. . “Washington DC International Food and Wine Festival.” 12th Annual International Wine & Food Festival. Web. 14 Nov. 2010. . Wild Horse Winery & Vineyards. Web. 08 Nov. 2010. . “Windy City Wine Fest.” InPLAY - Windy City Wine Fest. Web. 14 Nov. 2010. . “Wine - US - October 2010.” Mintel. Web. 28 Oct. 2010. . Yellow Tail. 08 Nov. 2010. Web. 07 Dec. 2010. .

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