The Recognition Factor
Branding used to have a fixed definition of fixed identity: the set of images or associations surrounding a particular product or service and comprising part of its ineffable essence.
Today, branding involves fluid identities, if not actually temporary ones. The core identity of the brand almost seems to mutate in response to the communication’s medium.
A brand’s core identity can be repositioned depending on the different levels of sophistication of its customer base segments-like the Robert Mondavi family of wines-or be expanded beyond its core product and service-like Marriott International. Or, it can focus its identity on a single service to pitch a product, like The Financial Times.
Oakville, CA-based Mondavi adjusted the presentation of its wines to its customers to suit the levels of their interest. By separating those who simply like to drink wine from those who are quite serious about their vintages, Mondavi was able to increase loyalty and sales.
The first thing Mondavi did was define and measure its audience. It then grew a database of people who bought or drank a lot of wine to build a profile. With a database that grew from 30,000 two-and-a-half years ago to 250,000 this summer, Mondavi found more than 75% of wine drinkers indulge a few times a week, with 40% drinking at least a glass daily. Jennifer Becker, who manages brands at Mondavi, says the average age is 46, split evenly between men and women.
The database was created mostly from the winery’s Web site (www.robertmondavi.com) using banner and other ads in such related brands as Epicurious and Wine Spectator. To entice people to complete the surveys, Mondavi offered premiums. A mail survey was also sent out. Some names came from subscriptions while others came from the 300,000 or so annual visitors to Mondavi vineyards.
The database is split into two segments: enthusiast (about 70%) and sophisticate (about 30%). Andrew Wait and Alle Gaeth, who manage the Mondavi account at Miller/Huber Relationship Marketing, San Francisco, note that the average income of sophisticates is $110,000, and the typical income of enthusiasts is $85,000.
Two newsletters-News From The Robert Mondavi Family (for sophisticates) and Discovery (for enthusiasts)-include articles, recipes and calendars of events for “friends” of the winery. At the moment, the newsletters have both print and online editions. The pieces go out three to four times a year and will go up to five in 1999. Mondavi is trying to convert all of them to e-mail editions.
After two years, Mondavi surveyed a sample of 11,000 to test changes in loyalty. While spending in all wine rose 22%, spending on Mondavi wines rose 77%.
In addition to placing a heavier emphasis on electronic communication, Mondavi plans to develop a comprehensive affinity program. “We found our database hates clubs, but does want access to wines not readily available in general distribution,” Becker says. The plan may be to expand the partners circle-a program in which Mondavi stockholders can get special wines that can’t be bought anywhere-into the winery’s customer base. “So many clubs are used to unload wines that are not so great,” she adds. “Mondavi has 10 labels. We have a more interesting portfolio to offer.”
The Mondavi family includes Robert Mondavi Winery, Woodbridge, Byron Vineyard & Winery, Robert Mondavi Coastal, La Famiglia di Robert Mondavi, Vichon Mediterranean wines, Luce, and Sena, as well as two joint ventures-Caliterra and Opus One. Becker anticipates the database doubling within three years, with the Internet and visitors being the biggest sources of new names.
Wait and Gaeth suggest that Mondavi may be thinking on national lines. (California represents the largest chunk of the database.) Prospecting might also be part of Mondavi’s future branding vision.
While Mondavi’s plans are to brand and to build over the Web, Marriott already had a strong brand. According to Marriott International vice president of i nteractive sales and marketing Mike Pusateri, “If you have strong brand-loyal customers, ‘brand.com’ must be there.” More specifically, he says, “Brands are concerned about protecting their spaces. As a new channel opens, we need to be there.” Marriott.com, he explains, matches the demographic with the Web, which is “nothing that unusual.”
Marriott found its Web visitors want more than an easy way to book a room. The new medium led Washington, DC-based Marriott to become an online destination guide book to the cities in which it had properties.
Seattle-based Fine.com developed the site for Marriott over 18 months ago. Activity, says account manager Doug Colbeck, has been doubling on the site every three to six months. “It’s a customer service tool to tell people what they want to know. They want information about the site they’re traveling to.”
In addition to availability of hotel rooms in all of Marriott’s seven brands, the site provides destination information. Pusateri estimates that four out of five such applications are for “mapping”-the visitor wants to know how to get from one place to another. The site also provides restaurant listings and area attractions. “It contributes to the interactivity of the site as well as its success,” he says.
Another aspect of the site’s interactivity was designing it so not only was Marriott itself branded, but also its individual brands, which include such chains as Courtyard, Fairfield Inn, Marriott Hotels and Resorts, Renaissance Hotels and Resorts, Residence Inn and Vacation Club.
Bookings over the Web site account for less than 1% of Marriott’s annual business of $9 billion. In July, the total came to $4.5 million. Business and leisure travel are about 50/50, Pusateri notes, adding that leisure is growing fast. Colbeck describes the security protocols for e-commerce as “standard.”
July was also when the number of hits in a month broke 1 million.
Marriott is considering developing newsletters and special packages. It recognized the value of such programs from the start, but until recently did not have as strong a database as it does now, Pusateri says.
Colbeck outlines a few long-term goals, but stresses each requires the “guest’s permission”: expanding point programs; keeping such requests as non-smoking rooms on file in the database; developing an online concierge; and launching a message board for visitors to share experiences and information.
In an odd sense, The Financial Times, London, is trying to extend its world-recognizable brand into the U.S. where it is largely unknown. For the past two years, it has been building a subscriber base by building its brand. The light-pink paper comes out six times a week and includes some 200 special reports focusing on a single industry or country a year. The Financial Times hopes to triple its current subscriber base by the year 2000, going from 35,000 to 100,000.
The campaign, created by Berenson Isham and Partners, Boston, targets the top executives in companies in key industries. “The Financial Times has important information and news to give to people,” chairman Paul Berenson says.
The Financial Times has what Berenson describes as a highly targetable audience: the top 10 titles in major companies, especially financial services. When a company is mentioned in The Financial Times, the key execs receive a copy of the paper. The pitch is sent overnight and includes an application for up to 12 subscriptions. The first year is offered at a group discount. If no one responds and the company is mentioned again, the package is sent out again. “Even if it takes two, three, or four times to get the subscription,” Berenson emphasizes, “we’re better off hitting the right target two or three times than going after a side target once.”
About 50 packages go out each day, which earn a 4% response rate for the publisher. Prospects can respond by phone or mail.
The in-house title for the campaign is “Names in the News,” which pretty much captures the essential gimmick. It focuses on one thing a newspaper does-mention names-to attract likely subscribers. If you’re important enough to be mentioned, you must be important enough to subscribe.
In addition to the targeted campaign, about half a million subscription pieces in The Financial Times go out each year. Response ranges from 2% to 3% with highly targeted lists to 0.5% for less-targeted lists. TV spots occur on financial shows on such cable networks as FNN and CNBC.
