Elite? Or just stodgy? - wine industry's negligence of potential markets

Recently, my partner and I gave a presentation to a typical board of directors on a new advertising approach.

The board had chosen a medium and we had designed our approach based on the user demographics of that medium. In preparation, we researched the current users of the client's product, the users of the chosen medium, and the overlap of the two. We settled on the fact that, although there was not a large current overlap, there were many potential users who needed to receive the client's message in a way they would appreciate and to which they could respond. based on our information, we created content and designed a "look and feel" for the project, In all, we designed four options - one, which, based on our research, we felt would be most successful, and three alternatives. We then went about gathering feedback from potential users. It was unanimous: the option we had identified as the most potentially successful of the four was indeed the favorite for our demographic.

We went to our presentation secure in the knowledge that we had developed an option that was exactly what the client needed. We confidently presented the background data and the options. Imagine our shock when the board completely dismissed the demographics, the comments from potential users, and the favorite option and went instead with the least favorite option of the potential users - one with which they, themselves, felt more comfortable. Why would they abandon demographics, the holy grail of marketing? It is unheard of.

What if I told you that we were marketing to Generation Xers? And that the board of directors ranged in age from 45 to 68? And that they never used the medium in which their new advertising approach would appear?

Does it still sound amazing that they completely disregarded demographics? It shouldn't. Open any Gen X magazine and look at the ads. Pretty hip? Now look at the ads for wines. Compare the ads in Wine X with those in Wine Spectator. Same ads, same wine, same labels.

While other industries have responded to the specific tastes and needs of Generation X, the wine industry has remained surprisingly silent. We've all seen the statistics. Only 4-6% of Generation Xers drink wine. Overall wine consumption has declined since the '80s. Generation Xers account for 70% of the start-up businesses, eat out more often than previous generations, and spend billions of dollars a year on their hobbies, entertainment, cars and clothes. Anyone who is in marketing and sales can barely escape hearing the information over and over. We may be listening, but what are we doing about it?

Tomorrow is here. Generation Xers are now getting married, having kids, and buying houses. Advertisers are talking about Generation Y.

It is almost impossible to be alive today and not to see the influence that Generation X has had on packaging, advertising and new products. Walk down an aisle in the grocery store and you'll see "grunge" packaging and new products such as "Red Rum" aimed at Gen Xers. Turn on the Superbowl and you'll see commercials that are designed to appeal to Generation X. Go on the internet and you'll see website after website completely dedicated to delivering content to the sound-bite generation.

High-end Fortune 500 companies are going after Generation X's dollars with a vengeance. And you don't have to give up your cachet to appeal to Gen Xers. Look at companies like Cadillac, BMW and Mercedes retooling their images. Look at the cigar revival.

Read Wallpaper and Wine X. Elegant living is hip and cool. It is what drives huge numbers of Gen Xers towards exotic foods, travel, micro brews and premium liquors.

These are people who enjoy the finer things. And what could be finer than exquisite wines? But so far, they are staying away in droves.

It is time for the wine industry to do something about a huge untapped income potential. You don't need to understand or even like Generation X to take advantage of the demographic data available and successfully market products to them. Take another look at your packaging, your placement, your advertising and your overall assumptions. Study other industries' success stories. Introduce Generation X to the rich heritage and diversity of fine wines.

The opportunity to succeed or fail is here today. The wine industry is not presenting an elite image, it is presenting an old and unapproachable image to younger buyers. Do not expect tastes to change by themselves. What you do now will have a profound effect on the future market for wine in the United States.

(Rosemary Hill is a principal at ToyRat[SM] Imagery, San Francisco, [415] 564-9632.)

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