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Sweet Cheeks Winery Marketing Plan 2014
Kenna Mooney
Megan McGowen
Alex Lukich
Adam Elias
Matt Miller
Table of Contents:
Executive
Summary………………………………………………………………………………………3
Situational Analysis
…………………………………………………………………………………......................4
 Industry Overview
 Current Market Description
 Competitive Analysis
SWOT
Analysis……………………………………………………………………………………….7
Marketing
Objectives……………………………………………………………………………………..9
Key
Issues…………………………………………………………………………………….......10
Marketing
Strategy………………………………………………………………………………………10
Implementation……………………………………………………………………………...12
Financials…………………………………………………………………………………….15
Control and Contingency
Plan…………………………………………………………………….................................16
Works
Cited………………………………………………………………………………………….18
I. Executive Summary
SituationAnalysis
Sweet Cheeks Winery, home to Oregonand locatedin the Southern Willamette
Valley, is known for its’award winning wines, friendlystaff, and beautiful views. Operating
out of Oregon, Sweet Cheeks currentlydistributes wine to 34 out of the 50 states inthe U.S.
and offers anarray of different wines, with a focus onPinot Gris, Pinot Noir and
Chardonnay.
Sweet Cheeks is open to the public everyday, year-roundand offers weeklytwilight
wine tastings, mimosasundays as well as signature events and fundraisers heldby local
companies throughout the year. Sweet Cheeks prides itself inbeingan active company in the
communityand having a presence not onlyat local festivals in Oregonbut around the
country.
Sweet Cheeks faces many competitors, with22 wineries locatedinSouthernOregon
alone; Sweet Cheeks has done well in creatingbeneficial relationships withother local
wineries however, there are still many factors that needto take place to increase sales, brand
recognitionandoverall market share in the wine industry.
Marketing Strategy
Sweet Cheeks is marketing to GenerationY within the 34 states theydistribute to.
They should stay at their present positionof lowto medium quality of wine in order to
appease to GenerationY. They offer bottlesof wines in retailersand restaurants, as well as a
locationto host events. Promotional materials is agreat way to attract customers into trying
their wine.
SWOT Analysis
The winery has many strengths thus far, such as locallyharvested grapes, consistent
customer and employee satisfaction, arelaxing and charming environment, customer loyalty
and so much more; however, there are many opportunities and weaknesses to improve upon
in order to increase Sweet Cheeks market share. To start, Sweet Cheeks has low social media
recognition;with an increase insocial mediaactivity, Sweet Cheeks has the ability to reacha
wider demographic. Sweet Cheeks also has limiteddistribution inthe United States, while
they are distributingto 34 states, there is room for expansionto further increase salesand
brand loyalty. While there are more weakness to improve upon, Sweet Cheeks is full of
opportunities suchas increase their social mediafootprint andexpand their distribution.
Competitionis the largest threat Sweet Cheeks faces in their desire to grow, but many things
can affect their growth including, weather, a shift in the market, and a shift in social norms.
MarketingObjectives
The marketing objective for Sweet Cheeks Wineryis to increase their revenue by
25% betweenJanuary and December, 2015. Inorder for this to be achieved, Sweet Cheeks
needs to: increase the number of restaurants in Oregonserving Sweet Cheeks wine by 15,
increase their social mediapresence, specificallyincrease their number of followers on
Instagram by 200%, and increase the stickiness ontheir website by10%.
Implementationof Marketing Strategy
In order to implement these increases andreachthe goals within the next year, Sweet
Cheeks will create a mobile app complete withevent informationas well as a restaurant
locator highlightingthose that serve Sweet Cheeks wine. Sweet Cheeks will also focus on
increasingtheir social mediausage, focusingonall platforms of social mediasuchas Twitter
and Facebook, but with an emphasis on increasingInstagram followers. Sweet Cheeks will
also increase the stickinessof their website inorder to trackonline sales with the number of
people visiting their site, and in addition increasingthe number of Oregonrestaurants
currentlyserving Sweet Cheeks wine by 15. By taking these steps Sweet Cheeks will be able
to expand its target market, expand promotion and increase sales and meet their goals by
December 2015.
II. Situation Analysis
Industry Overview
The competitive environment that Sweet Cheeks Winery is apart of, must be viewed
as a more focused market that is located in Oregon. The local wine industry in Oregon
is made up of many wineries with multiple locations in the Southern Willamette
Valley. The Southern Willamette Wineries Association is comprised of wineries,
vintners, vineyards, and businesses. Though there are 22 wineries apart of the
association, they are also competitive rivals.
Internal Environment
Sweet Cheeks Winery is a small winery located in the Briggs Hill Valley. The winery
is located on 140 acres, but has a total of 42 acres of vineyard. It provides 12 different
wines including Pinot Gris, Merlot, and Pinot Noir to name a few. The wines range in
date from 2009 to 2013. Dan Smith created Sweet Cheeks Winery in 2005 after
bringing his experiences from previous wineries. Leo Gabica is Sweet Cheeks
winemaker and has been with the company since 2005. With his experience of being
assistant winemaker, Gabica has been apart of the development of the wine from the
start. Kacy Minnis has been the manager of Sweet Cheeks since 2012 after moving to
Eugene. Jeff Parker is the Brand Ambassador and oversees all matters of sales and
distribution. Parker focuses on increasing local and national sales by building the
brand and the brand name. Sweet Cheeks has events coordinators who focus on
hosting receptions and events at the winery. A wedding planner is also apart of the
events coordinators, and solely focuses on hosting wedding ceremonies and
receptions. With a tangible location guests can visit and a distributor, Sweet Cheeks
Winery is a small business with a large goal.
External Environment
The wine market in the United States has grown 2 to 3% consecutively for 21 years.
The wine market is recovering well from the recession, and is increasing its size.
According to Wine Business Monthly there are 7,762 wineries in the United States,
which is a 3.5% increase from 2013.The demographic over all is changing in the fact
that men are buying more wine then they have ever before. 55% of the consumers of
wine are female and 45% of consumers of wine are male. As of 2010, the U.S is the
largest wine consuming country in the world. In 2013, the estimated retail revenue
was 36.3 billion dollars, which is more than double the amount it was in 1998 with
only 17 billion dollars. That included sales from domestic wines, as well as imported
wines. 66% of the wine market in the U.S is domestic and 34% are from imports. 57%
of the domestic wine market comes from California. The remaining 9% of the
domestic sales were from other states.
Porter’s Five Forces
Threat of new entrants: The threat of new entrants in the Oregon region is low to
medium due to the small size of Oregon. The local wine market is saturated with local
wineries so there may not be enough room for a new winery to open. The local
wineries have created a name in the Oregon community, with the South Willamette
Wineries Association.
Threat of substitute products: The threat of substitute products is high because there
are many different types of alcoholic beverages on the market. There are beverages
that range from low alcoholic concentrations to high concentrations. There is also a
variety of prices for beverages. The more variety there is, the higher the threat of
substitute products.
Bargaining power of buyers: The bargaining power of buyers is high because
powerful buyers play a large role in Sweet Cheeks revenue. Some of the buyers
include Safeway and Fred Meyer, which drive down price because customers can
easily compare products next to each other. These retailers hold a lot of power over
Sweet Cheeks because Sweet Cheeks gains a lot of their revenue by distributing their
wine to these retailers.
Bargaining power of suppliers: The suppliers for Sweet Cheeks includes companies
that provide equipment for the wineries and vineyards, packaging, and transportation.
These companies have some power due to the lack of variety of companies that supply
winery and vineyard equipment. Companies that provide transportation are less
powerful and are considered to be one kind of channel of distribution.
Rivalry within the industry: The competition of the local wine market is high because
there are numerous wineries located in Oregon. On top of the local competition, there
are California wines that are well distributed and more well known. With the
increasing number of wineries in the United States, the wine market is becoming more
competitive.
Current Market Description
Product/Services: Sweet Cheek has provided great wine since 2005, and sits on a
vineyard that has been used for 36 years. It focuses on Pinot Gris, Pinot Noir, Riesling
and Chardonnay, however there are a few wines such as a Merlot and Rosy Cheeks
that are apart of their expanded collection that shows their vineyards growing and
harvesting capabilities. There are a total of seven different wines made at Sweet
Cheeks, each made with select grapes and are preserved and cultivated with top of the
line equipment to create a great balance and exceptional tasting wine. Among the
seven wines, there are different years to chose from, each providing a unique taste to
the wine. The climate of Oregon allows Sweet Cheeks to grow grapes that will grow
and thrive in the environment, producing tastes that will only flourish in the unique
setting of Sweet Cheeks. The wine is handmade by the winemakers, allowing them to
focus on each harvest througally. Sweet Cheeks wine has a sweetness to it that is
different from a typical bottle of wine. The wine was crafted to ensure each bottle has
an authentic flavor that everyone can enjoy.
Price: Sweet Cheeks Winery prides itself on creating wines that are delectable yet
affordable. They offer a variety of prices to ensure everyone can buy a bottle of
quality wine. The prices range from 14 dollars to 30 dollars, allowing a variety of
consumers to purchase the wine. Prices are based on brand and quality. The most
expensive wine Sweet Cheeks offers is their 2012 Reserve Pinot Gris at 30 dollars a
bottle, and the prices go down from there. Out of all the Americans who drink wine
regularly, only 12% purchase wine that is 30 dollars or more, according to the article
The Price of Wine. Different occasions call for different wines as well. With the
availability of different prices, a customer can choose which wine will be appropriate
for the occasion they are partaking in. At the younger end of the target market, the 14
dollar bottle is preferable, but at the older end, a more sophisticated bottle might be
desired. It is difficult to find a quality bottle of wine under the price of 10 dollars, but
for someone who is not drinking it for the taste, Sweet Cheeks’ reasonably priced
wine is perfect for the occasion.
Distribution: Sweet Cheeks Winery is a small winery that has increased its
distribution over the span of the 9 years it has been in business. It started just
distributing in the Oregon region but has expanded that to 34 states. There are
restrictions on the distribution to states like Utah and Alaska, but Sweet Cheeks is
looking into branching out to states without restrictions. Retailers such as Safeway,
Fred Meyer and Made in Oregon provide a large opportunity for many potential
consumers to familiarize themselves with Sweet Cheeks wine. By getting their
product into well known retailers, Sweet Cheeks is allowing favorable circumstances
for extended recognition. They also distribute their wines to restaurants in the Oregon
region, primarily in Eugene, Portland, Salem, and parts of the coast. Restaurants
provide unique opportunities because consumers are more likely to try a glass of a
new wine instead of buying a new bottle of wine. Tourists are also more likely to try
wine at restaurants then retailers. If a tourists tries a wine made by Sweet Cheeks and
likes it, there is a possibility that when they go home, they can find Sweet Cheeks in a
store close to them.
Promotion: Sweet Cheeks Winery promotes their products by gaining loyal and new
customers by offering regular wine tasting events and Mimosa Sundays. These events
are fun, social ways for customers to meet new people, or just have a fun day with
friends and family. Word of mouth is a large way Sweet Cheeks Winery is promoted.
By obtaining loyal customers, word of mouth becomes even more of a way to
promote Sweet Cheeks. They also practice sales promotion, and give small rewards to
those who purchase a certain number of bottles at our winery. With promotional
opportunities, customers have an incentive to purchase more bottles of wine.
Service Attributes: Sweet Cheeks is known for its hospitality to all guests and
incredible tasting wine at a fair price. Because Sweet Cheeks is a small business, it’s
employees are local. They practice personal selling, more specifically face-to-face, at
the winery. This way their customers are able to experience their hospitality, and are
able to find the perfect wine they need. Sweet Cheeks staff is personable and
knowledgeable about each wine, giving them the opportunity to make suggestions
about wines, as well as food pairings. Considerations would include Sweet Cheeks
property; it’s beautiful building, the vineyard itself, as well as the equipment used to
ferment the wine. The building is over 50 years old, and was not originally part of the
winery. In 2003 it was scheduled to be destroyed, but the owner of Sweet Cheeks,
Dan Smith, saved the building and brought it to his new vineyard, creating the perfect
environment for his winery and customers.
Sweet Cheeks places a high value on customer relations and satisfaction, which
creates a very successful environment for both the consumers and employees of Sweet
Cheeks. They also have successfully implemented many efforts to maintain a level of
corporate social responsibility within the Oregon community. For example, they make
an effort to hold events that partner with nonprofits in the community, such as Lane
County’s A Family For Every Child.
Competitive Analysis
Local competitors include 22 wineries located in southern Oregon, including Chateau
Lorane, Noble Estate, and Silvan Ridge Winery. Some wineries have similar price
ranges, while others offer more expensive wines. Not only are local wineries seen as
competitors, but imported wines from other states and countries are. The majority of
wine consumed in the United States is from California. With the well known brands
and prestigious reputations, California wine is a monumental competitor within the
U.S wine market.
III. SWOT Analysis
Strengths:
· Local grapes
· Distribution throughout the U.S.
· Relationships with other vineyards
· Brand loyalty
· Enjoyable atmosphere
· Customer and employee satisfaction
· Award-winning product
Weaknesses:
· Low recognition on social media
 Limited use of technology
· Limited distribution in U.S.
· High cost to maintain
· Lack of brand awareness to Gen. Y
. Limited employment
I. Lack of website visits
Opportunities:
· Increase use of technology
· Expansion throughout the U.S.
· Expand to Generation Y demographic
· Promotions
· Social media presence
· Use of technology to boost sales
Threats:
· Other wineries
· Environmental hazards
· Competitor brand
· Market change
· Finances
· Microorganism infiltration
· Customer taste preferences
 Competitive substitutes
Strengths
Sweet Cheeks uses their own grapes from their local vineyard, creating Sweet Cheeks
distinguished flavor. For a small winery, Sweet Cheeks has done an excellent job
distributing to 34 states with the resources they have. With returning customers and a
wine membership club a customer can sign up for, Sweet Cheeks has brand loyalty as
well as customer satisfaction. The Sweet Cheeks Winery Resort allows a comfortable
environment. Whether that is by the fireplace on a cold day or on the deck looking out
on the vineyard on a sunny Oregon day. Many hours go into each bottle of Sweet
Cheeks wine, and each one is unique and one of a kind.
Weaknesses
By not having the greatest social media following, Sweet Cheeks could work on
raising awareness on social sites such as Facebook, Twitter, and Instagram. By
changing their focus on instagram from employees towards social settings and wine it
would give potential consumers a good impression of their product. By lacking the
resources to distribute wine to all states, Sweet Cheeks is limiting how much profit
they could make if they were able to distribute their products to all 50 states.
Vineyards have a high cost to maintain including the cost of equipment, raw goods,
and the property itself. Vineyards are high maintenance and must be carefully looked
after. Because Sweet Cheeks is a small business, they have limited employees to look
after their crop. Sweet Cheeks should employ another assistant to the winemaker in
order to ensure the grapes and vines are looked after. By not offering a Kosher bottle
of wine, Sweet Cheeks is limiting their number of potential customers.
Opportunities
Although Sweet Cheeks continues to experience a high level of success, there are
several opportunities for the brand to further expand. To promote their wine Sweet
Cheeks has large opportunity to expand their presence in the restaurant world. By
extending their presence in restaurants in Oregon, they will be able to become a
recognized brand. Through a more efficient distribution Sweet Cheeks would be able
to appeal to a larger demographic locally as well as throughout the country. By
improving their social media foot print, Sweet Cheeks would be able to reach their
target market of Generation Y. By improving their website, it would allow potential
consumers to access information easily. A way they could improve it would be to add
a blog. It would personalize the website, and allow customers to view updates of the
winery and feel apart of the environment. Promotions are a great way to entice
customers to purchase more of the product. By selling more wine, Sweet Cheeks
would give the customer an opportunity to try different wines, and choose for
themselves what wine they like best. If Sweet Cheeks were able to sway purchases by
this target market, their profits would increase.
Threats
Sweet Cheeks’ main threat is other brands of wine, whether the brands are local or
imported. The majority of wine consumption in the U.S is from California with the
second leading consumption comes from imported wines from foreign countries.
Shifts in the market trends also create threats if they went towards another style of
wine or an entirely new market. If Sweet Cheeks did not accommodate for the shifts,
their financials would be greatly impacted. Nature can also be a threat. Sweet Cheeks
is located in the Willamette Valley and the environmental hazards can be an
unexpected threat to the growth rate of the vineyard’s grapes. If Oregon has a
fluctuation in weather that is not typical to the region, the vineyard may experience
trouble. Too much snow or too much sun can have negative effects to the produce.
The soil has a huge effect on the quality and taste of the grapes, making them a
vulnerable essential. If there was a storm that changed the soil or washed it away, it
would have a detrimental effect on the wine. Microorganisms are a threat because
they can destroy or change the produce in a way that would devastate the final
product.
IV. Marketing Objectives
The overall marketing objective is to increase revenue by 25% between January and
December 2015. In order to accomplish this, it will be necessary for Sweet Cheeks to
do the following within this time frame:
 Increase the number of Oregon restaurants serving Sweet Cheeks wine by 15.
 Heighten Sweet Cheeks’ social media presence:
o Increase Instagram followers by 200% (from 425 to 1275 followers).
• Increase the stickiness of the company website by 10%.
 Create a mobile application that will launch by July 5, 2015.
By accomplishing these goals, Sweet Cheeks will be able to successfully gain market
penetration and increase sales.
V. Key Issues
Sweet Cheeks winery has many local and big name companies competing for
the market shares in Eugene and around the state. To meet our marketing objective of
increased revenue by 25% we must appeal to the local market in Eugene to get our
name out and make it more popular than other local wineries. Our include Territorial
Vineyards & Winery, Noble Estate Vineyard & Winery, and Silvan Ridge Winery.
Our big name competitors include Barefoot and Yellow Tail. Sweet Cheeks is limited
in the amount of wine they can produce because they aren’t a large winery yet, so
production capabilities have strong potential to grow. Another big chunk of their
market share in Eugene is students at the University of Oregon, their cheapest bottle
of wine is $14 which is a bit expensive for college students but a good price for
winery visitors. Sponsorship around the community will do great things for expansion
purposes and revenue will increase, sharing the experience of going to a winery with
people around Eugene will make people more willing to spend a little extra money on
their wine.
VI. Marketing Strategy
Target Market
Geographic: For this proposal, Sweet Cheeks will geographically segment their target
market, focusing the majority of their marketing efforts within the state of Oregon.
However, in order to sell directly to consumers (through their website and mobile
app), as well as to their distributors, Sweet Cheeks will need to have some marketing
directed towards the 33 states in which they are currently able to ship/sell their
products.
Demographic: As Sweet Cheeks continues to grow, it is crucial that they continue to
expand their targeted demographic. Although it is very important to still keep in mind
their customers from the baby boomer and generation X demographics, as these two
groups make up the majority of the customers in the wine industry, Sweet Cheeks
needs to expand their reach and focus their marketing efforts on a younger age
market, generation Y. Also known as Millennials, members of generation Y are
leading growth in the wine industry. Compared to only 37% five years ago, 51% of
Millennials drink wine on a weekly basis. That growth exceeds any other generation
by over 6% (Nichols).
Psychographic: Sweet Cheeks should focus their marketing efforts on targeting the
psychographic characteristics of Millennials. Consumers from generation Y are
heavily influenced by others, particularly through social media, and are very fond of
using technology. They live extremely social lifestyles and want to find situations to
drink wine with their friends. This generation has a more moderate income than older
consumers, however, the lower prices of Sweet Cheeks’ wine creates customer value
that Millennials seek (Kalikow). By increasing their social media presence, creating a
mobile app/updating their website, and increasing the number of restaurants that serve
their product, Sweet Cheeks will be directly targeting these specific characteristics of
this generation.
Positioning
Sweet Cheeks offers customers a range of award-winning, luxurious wines at
affordable prices. The winery has established itself as a memorable destination in the
scenic Willamette Valley, where visitors get the opportunity to create lasting
memories amongst a friendly and welcoming staff.
The Proposed Marketing Mix
Product/Services: Sweet Cheeks offers 7 distinct, uniquely flavored wine, ranging
from Pinot Gris to Pinot Noir. Rather than focusing on product developement, Sweet
Cheeks will implement a market development strategy. Sweet Cheeks’ products have
earned many awards and have already gained a loyal customer base within the
Oregon/Pacific Northwest wine market. Keeping the products the same will allow
Sweet Cheeks to keep their already happy customers, and to use their marketing
budget in order to gain a larger market share.
Price: The price of Sweet Cheeks wine, at the Winery itself and at other retail
locations, will not change. The current prices are set in accordance with the proposed
marketing plan and will allow Sweet Cheeks to sell to their target market while
continuing to increase revenue. The only change in prices will come from the coupons
and promotions mentioned below.
Place: Sweet Cheeks will expand their place by extending their distribution to 15 new
restaurants in the Oregon area. By expanding to locations in the state of Oregon,
Sweet Cheeks brand will be more advertised and well known than ever before. It will
give a chance for new consumers to try their wine which will provide a potential for
new customers.
Promotion: Sweet Cheeks plans to expand their social media, more specifically on
Instagram, Twitter, and Facebook. Word of mouth would be a big advantage to our
promotional goals. By rewarding loyal customers, their experiences would become
known to others by word of mouth, thus insuring more loyal customers. By keeping
this customer loyalty, friends of friends will purchase Sweet Cheeks wine and, in
return, tell more people about Sweet Cheeks wine.
Service Attributes and Considerations: Sweet Cheeks will continue to engage in
corporate social responsibility, as well as cause related marketing.
VII. Implementation of the Marketing Strategy
Increase Revenue by 25%
As exemplified in the financials section, as well as in the success of the winery in
general, Sweet Cheeks has been able to increase revenue on a year to year basis. In
order to for Sweet Cheeks to continue this trend and increase revenue by 25% in 2015,
they will need to achieve the following marketing objectives outlined below, as well
as continue to engage in the marketing strategies they have been successful with thus
far. The current Brand Ambassador at Sweet Cheeks, who is also in charge of all
marketing for Sweet Cheeks, will be in charge of the monitoring and implementation
of this strategy.
Milestone: In order to increase overall revenue from the previous year by 25%, that
means each year revenues should be increasing by about 2.1% by month on average.
Projected Cost: Not counting the cost of the other proposed projects, Sweet Cheeks
will budget approximately $45,000 to cover the costs of promotional materials, and
the continuation of other marketing initiatives.
Create a Sweet Cheeks Mobile App
The Sweet Cheeks mobile application will serve many functions that will heighten
customer relations, dramatically expand brand awareness, and increase sales. The app
will be compatible with all cell phone platforms and will be a huge force in helping to
meet the marketing objective of increasing revenue by 25% within 2015. This new
technology will serve as a competitive advantage for Sweet Cheeks and will help to
differentiate the brand among the other wineries in Oregon.The proposed mobile app
will have the following functions:
 A calendar that will highlight all of Sweet Cheeks’ upcoming events, including
times, location, dates, prices, etc.
 A location feature that will allow customers to search for restaurants nearby
that serve Sweet Cheeks wine. By including this capability, Sweet Cheeks will
make it easier and more accessible for their customers to find local restaurants
serving their wine. The additional advertising and traffic due to Sweet Cheeks
will encourage additional restaurants to start serving Sweet Cheeks wine, which
is congruent with the goal to increase the number of restaurants in Oregon that
serve their product.
 A component that will allow customers to search nearby stores for those selling
Sweet Cheeks wine, as well as recommended food pairings for that wine.
 Option for customers to purchase wine, as well as track their shipment. For
customers who don’t live near a Sweet Cheeks retailer, the ability to order wine
from the app will be an added convenience that will increase wine sales. In
addition, using a mobile application will be an effective way for Sweet Cheeks
to reach their target market, wine consumers of Generation Y.
 Promotions, coupons, and other specials. By giving occasional
coupons/promotions on the app, it will encourage Sweet Cheeks’ customers to
download and keep the app.
Milestone: The project will commence January 1, 2015 and is set to be completed by
July 5, 2015.
Proposed Cost: Sweet Cheeks will plan to use $15,000 of their 2015 marketing
budget to cover the costs of creating and implementing the app.
Heighten Social Media Presence
Creating a strong social media presence is extremely important given the highly
saturated wine industry in Oregon. Although it is necessary to strengthen their
presence on all social media platforms, focusing specifically on their Instagram
account is the most strategic move and the best way to reach their target market.
Compared to their competitors, Sweet Cheeks’ Instagram presence is extremely
mediocre in terms of number of posts, likes, and followers. As of November 2014,
competitors Noble Estate Vineyard & Winery and King Estate Winery have 82 and
1170 followers, respectively; in comparison, Sweet Cheeks falls in the middle at 425
followers. In order to increase followers, Sweet Cheeks will implement the following
strategies:
 Increasing the frequency of their posts
 Using the beautiful scenery of their winery to their advantage
 Creating an Instagram contest using #sweetcheekswinery
 Posting promotions, specials, and coupons to reward their loyal followers
 Using photography to give potential customers an idea of what it is like to
attend one of their many events
 Asking customers to share how they pair Sweet Cheeks wine with food, using
#sweetcheekswine
Milestone: Between January and December 2015, the goal is to have increased Sweet
Cheeks’ followers on Instagram by 200% (from 425-1275). Although the goal is to
have 1275 followers by the end of 2015, Sweet Cheeks will likely continue to
implement similar strategies in order to further differentiate themselves from their
competitors through social media.
Proposed Cost: 10% of total marketing budget for 2015, which amounts to $19,800.
Increase the stickiness of the company website by 10%
It is especially important for Sweet Cheeks to have a website that is frequently visited
and well liked by their customers. Adding a blog to the existing website is a simple
yet effective way for Sweet Cheeks to create a sparked interest from those who
already visit their website, as well as initiate interest from new customers who have
never visited the site. The blog will allow customers to get more of an insight into the
ins/outs of the wine industry, become more familiar with the employees of the winery,
in addition to many other things. In the first year, Sweet Cheeks can have an intern
manage the blog under the supervision of a current employee. In addition to a blog,
Sweet Cheeks will add additional promotional events and coupons that encourage
customers to purchase wine from the website. By doing these two things alone, Sweet
Cheeks should see the stickiness of the company website increase.
Milestones: The implementation of the blog will begin in January 2015 and should
take no longer than one month to implement, an end date of February 2015.. However,
the goal of a 10% increase is to be attained by December 2015.
Proposed Costs: The cost to Sweet Cheeks is relatively low. They will budget
approximately $10000 of the overall marketing budget for 2015 to cover the training
of staff and updating of the website.
Increase the number of Oregon restaurants serving Sweet Cheeks wine by 15
It is essential that Sweet Cheeks increase their presence in Oregon restaurants in order
to continue to increase their market share, as well as increase their overall revenue.
The more that customers see Sweet Cheeks’ wine on menus, not to mention order it,
the more brand recognition and customers the Winery will receive.
Sweet Cheeks wine speaks for itself in terms of flavor, and the price is appropriate to
be on the menu in the majority of restaurants in Oregon. Making it a priority is a good
first step in successfully getting their wines on the menu. In addition to that, creating
the mobile app (that advertises the restaurants that serve the wine) and drastically
increasing the marketing budget, will make the idea of having Sweet Cheeks on the
menu more attractive to prospective restaurants.
Milestone: The goal is to have an additional 15 restaurants serving the wine by the
end of 2015. On average, that means Sweet Cheeks needs to successfully enter 1.25
restaurants per month.
Proposed Costs: Sweet Cheeks will budget approximately $5,000 to cover the costs of
potential sales training and promotional materials.
VIII. Financials
Sales Forecast
The table below shows Sweet Cheeks’ sales forecast for 2012-2015, given by cases of
wine.
Jan Fe
b
Ma
r
Ap
r
Ma
y
Jun
e
Jul
y
Au
g
Se
p
No
v
De
c
Tot
al
Reve
nue
2012 54
1.6
7
54
1.6
7
54
1.6
7
54
1.6
7
54
1.6
7
54
1.6
7
54
1.6
7
54
1.6
7
54
1.6
7
54
1.6
7
54
1.6
7
6,5
00
$1,56
0,000
2013 70
8.3
3
70
8.3
3
70
8.3
3
70
8.3
3
70
8.3
3
70
8.3
3
70
8.3
3
70
8.3
3
70
8.3
3
70
8.3
3
70
8.3
3
8,5
00
$2,04
0,000
2014 87
5
87
5
87
5
87
5
87
5
87
5
87
5
87
5
87
5
87
5
87
5
10,
50
0
$2,52
0,000
2015pr
ojection
1,1
00
1,1
00
1,1
00
1,1
00
1,1
00
1,1
00
1,1
00
1,1
00
1,1
00
1,1
00
1,1
00
13,
20
0
$3,16
8,000
These numbers are an average monthly revenue based on annual revenue
forecast. Using this information we can determine that a 25% increase in revenue
from 2014 to their projected 2015 is a progressive, but attainable objective. Their
revenue has steadily increased since 2012 by around $480,000 per year based on their
sales of cases. This means that their yearly revenue increase percentage based on the
previous has dropped year to year and will continue to drop if changes are not made.
Our objective of 25% revenue increase from 2014 to 2015 beats the 23% increase of
the 2013 to 2014. If this same trend continued the 2014 to 2015 revenue increase
would be around 19%. However, with their objectives we feel it is possible to achieve
a 25% increase from 2014 to 2015.
Expense Forecast
The marketing budget for Sweet Cheeks has been lower in the past, but with their
projected increase in revenue they can afford to put more money into their marketing
budget. With some of our objectives increasing our marketing budget is a must. To
get noticed on Instagram, Twitter, and Facebook they will need to advertise our
accounts and use the influx of college students nine months a year to our advantage.
Social media and word of mouth are great and low cost advertising techniques in areas
with dense population, much like the U of O campus. The mobile app will also need
to be developed which they will need an increased budget for. If they can create buzz
about Sweet Cheeks winery locally and across the state the number of restaurants
serving Sweet Cheeks wine as a menu item should increase no problem.
Sweet Cheeks’ Marketing Budget 2012-2015:
Year Revenue # of cases Marketing Budget % of Rev
2012 $1,560,000 6,500 $52,000 3.33%
2013 $2,040,000 8,500 $85,000 4.17%
2014 $2,520,000 10,500 $126,000 5%
2015(projection) $3,168,000 13,200 $198,000 6.25%
Break Even Analysis
Based on the information above we can conclude that the Sweet Cheeks break even is
accomplished within the first month of each year based on their marketing budget.
IX. Controls & Contingency Plan
Marketing Objective: Increase the stickiness of the company website by 10% by
December 2015
In order to measure the stickiness Sweet Cheeks should use a software such as Google
Analytics that is able to “trace the customer path” (google.com) or see how the
customers interact with their website. There are also websites that are able to program
a visitor counter onto a companies website in order to count visitation. The amount of
comments and likes on the blog posts will be taken into account, as well as the
number of orders online. This will be compared to the number of visitors from 2014.
If the website does not reach their desired goal of web traffic, a contingency plan
could be to create a promotion that offers coupons that have to be printed out from
visiting their website. Sweet Cheeks could also consider increasing their marketing
objective to hire a web designer to update their current website. This would increase
traffic to, and time spent on, their website and the original goal of 10% will be
achieved.
Marketing Objective: Increase revenue by 25% between January and December 2015
In order to increase revenue, Sweet Cheeks Winery will have to sell more cases of
wine than they did in 2014. It is projected that by the end of 2014, Sweet Cheeks will
have sold 11,000-12,000 cases of wine. In order to continue to grow in revenue, they
will need to sell 13,200 cases by the end of 2015. If this goal isn’t attained, the
contingency plan would be to hire a Public Relations Officer and start advertising
Sweet Cheeks wine. The Public Relations Officer could host wine sampling events
around the community, and work different angles to reach their target market in order
to increase awareness of the Sweet Cheeks brand.
Marketing Objective: Increase Oregon restaurants serving Sweet Cheeks wine by 15
by December 2015
The amount of restaurants carrying Sweet Cheeks wine is easily measured by
comparing the number of restaurants serving Sweet Cheeks wine to date, 34, and add
fifteen to that number. This would mean that by December 2015, forty-nine Oregon
restaurants will be serving Sweet Cheeks wine. If this goal is not reached, Jeff Parker
(Sweet Cheeks Brand Ambassador) will have to spend more time trying to persuade
restaurants to purchase Sweet Cheeks wine.
Marketing Objective: Heighten Sweet Cheeks social media presence
By the end of December 2015, Sweet Cheeks wants to increase their Instagram
followers from 425 to 1,275. There are many computer applications, such as
Hootsuite for example, that can track activity on all social media accounts, including
Instagram. Currently, Sweet Cheeks has one employee (Jessica Ramp) that is in
charge of handling their social media accounts. If the desired amount of followers is
not reached, Sweet Cheeks could hire an additional employee or intern, as well as
dedicate a larger portion of the budget to their social media efforts.
Marketing Objective: Create mobile application that will launch on July 5th
, 2015
If the app is not finished, or on track to finish, by September 5th
, 2015 Sweet Cheeks
could consider hiring a new application developer, or putting forth more of the
marketing budget in order to complete the app. Once the app is released to the
marketplace effectiveness can be measured in a variety of ways: the number of
downloads, customer satisfaction ratings on the various app stores, the amount of
wine purchased through the app, or the number of coupons/specials redeemed. If the
app doesn’t seem as successful as anticipated, Sweet Cheeks could engage in primary
research to understand how the app could better suit the needs of their customers.
Works Cited
Dr. Thach, Liz. “Trends in the US Wine Industry for 2014- Sunny Cellars with Some
Cobwebs.”, 26 March 2014. Web. 15 Nov. 2014.
Fisher, Cathy. “Total U.S Wineries Hits 7,762.” Wine Business Monthly. February
2014. Web. 14 Nov. 2014.
Kalikow, Leora. "Gen Y Is Gen Wine." The Huffington Post. TheHuffingtonPost.com,
01 Oct. 2013. Web. 17 Nov. 2014.
Lamb, Charles W., Joseph F. Hair, and Carl McDaniel. MKTG 6. Mason: South-
Western Cengage Learning, 2013. Print.
Mayyasi, Alex. “The Price of Wine.” Priceonomics. Priceonomics. 29 March 2013.
Web. 13 Nov. 2014.
Nichols, Rachel. "U.S. Wine Consumer Trends: Boomers Tastes Evolve, Millennials
..." WineBusiness.Com. N.p., 24 Jan. 2011. Web. 17 Nov. 2014.
Revoalution. Sweet Cheeks Winery. Sweet Cheeks Winery. n.d. Web. 15 Nov. 2014.
White, Jerry. A Wine Marketing Plan That Supports Cash Flow. Department of
Applied Economics and Management, Cornell University, n.d. Web. 15 Nov. 2014.

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FINAL MARKETING PLAN

  • 1. Sweet Cheeks Winery Marketing Plan 2014 Kenna Mooney Megan McGowen Alex Lukich Adam Elias Matt Miller
  • 2. Table of Contents: Executive Summary………………………………………………………………………………………3 Situational Analysis …………………………………………………………………………………......................4  Industry Overview  Current Market Description  Competitive Analysis SWOT Analysis……………………………………………………………………………………….7 Marketing Objectives……………………………………………………………………………………..9 Key Issues…………………………………………………………………………………….......10 Marketing Strategy………………………………………………………………………………………10 Implementation……………………………………………………………………………...12 Financials…………………………………………………………………………………….15 Control and Contingency Plan…………………………………………………………………….................................16 Works Cited………………………………………………………………………………………….18
  • 3. I. Executive Summary SituationAnalysis Sweet Cheeks Winery, home to Oregonand locatedin the Southern Willamette Valley, is known for its’award winning wines, friendlystaff, and beautiful views. Operating out of Oregon, Sweet Cheeks currentlydistributes wine to 34 out of the 50 states inthe U.S. and offers anarray of different wines, with a focus onPinot Gris, Pinot Noir and Chardonnay. Sweet Cheeks is open to the public everyday, year-roundand offers weeklytwilight wine tastings, mimosasundays as well as signature events and fundraisers heldby local companies throughout the year. Sweet Cheeks prides itself inbeingan active company in the communityand having a presence not onlyat local festivals in Oregonbut around the country. Sweet Cheeks faces many competitors, with22 wineries locatedinSouthernOregon alone; Sweet Cheeks has done well in creatingbeneficial relationships withother local wineries however, there are still many factors that needto take place to increase sales, brand recognitionandoverall market share in the wine industry. Marketing Strategy Sweet Cheeks is marketing to GenerationY within the 34 states theydistribute to. They should stay at their present positionof lowto medium quality of wine in order to appease to GenerationY. They offer bottlesof wines in retailersand restaurants, as well as a locationto host events. Promotional materials is agreat way to attract customers into trying their wine. SWOT Analysis The winery has many strengths thus far, such as locallyharvested grapes, consistent customer and employee satisfaction, arelaxing and charming environment, customer loyalty and so much more; however, there are many opportunities and weaknesses to improve upon in order to increase Sweet Cheeks market share. To start, Sweet Cheeks has low social media recognition;with an increase insocial mediaactivity, Sweet Cheeks has the ability to reacha wider demographic. Sweet Cheeks also has limiteddistribution inthe United States, while they are distributingto 34 states, there is room for expansionto further increase salesand brand loyalty. While there are more weakness to improve upon, Sweet Cheeks is full of opportunities suchas increase their social mediafootprint andexpand their distribution. Competitionis the largest threat Sweet Cheeks faces in their desire to grow, but many things can affect their growth including, weather, a shift in the market, and a shift in social norms. MarketingObjectives The marketing objective for Sweet Cheeks Wineryis to increase their revenue by 25% betweenJanuary and December, 2015. Inorder for this to be achieved, Sweet Cheeks needs to: increase the number of restaurants in Oregonserving Sweet Cheeks wine by 15, increase their social mediapresence, specificallyincrease their number of followers on Instagram by 200%, and increase the stickiness ontheir website by10%. Implementationof Marketing Strategy In order to implement these increases andreachthe goals within the next year, Sweet Cheeks will create a mobile app complete withevent informationas well as a restaurant locator highlightingthose that serve Sweet Cheeks wine. Sweet Cheeks will also focus on increasingtheir social mediausage, focusingonall platforms of social mediasuchas Twitter
  • 4. and Facebook, but with an emphasis on increasingInstagram followers. Sweet Cheeks will also increase the stickinessof their website inorder to trackonline sales with the number of people visiting their site, and in addition increasingthe number of Oregonrestaurants currentlyserving Sweet Cheeks wine by 15. By taking these steps Sweet Cheeks will be able to expand its target market, expand promotion and increase sales and meet their goals by December 2015. II. Situation Analysis Industry Overview The competitive environment that Sweet Cheeks Winery is apart of, must be viewed as a more focused market that is located in Oregon. The local wine industry in Oregon is made up of many wineries with multiple locations in the Southern Willamette Valley. The Southern Willamette Wineries Association is comprised of wineries, vintners, vineyards, and businesses. Though there are 22 wineries apart of the association, they are also competitive rivals. Internal Environment Sweet Cheeks Winery is a small winery located in the Briggs Hill Valley. The winery is located on 140 acres, but has a total of 42 acres of vineyard. It provides 12 different wines including Pinot Gris, Merlot, and Pinot Noir to name a few. The wines range in date from 2009 to 2013. Dan Smith created Sweet Cheeks Winery in 2005 after bringing his experiences from previous wineries. Leo Gabica is Sweet Cheeks winemaker and has been with the company since 2005. With his experience of being assistant winemaker, Gabica has been apart of the development of the wine from the start. Kacy Minnis has been the manager of Sweet Cheeks since 2012 after moving to Eugene. Jeff Parker is the Brand Ambassador and oversees all matters of sales and distribution. Parker focuses on increasing local and national sales by building the brand and the brand name. Sweet Cheeks has events coordinators who focus on hosting receptions and events at the winery. A wedding planner is also apart of the events coordinators, and solely focuses on hosting wedding ceremonies and receptions. With a tangible location guests can visit and a distributor, Sweet Cheeks Winery is a small business with a large goal. External Environment The wine market in the United States has grown 2 to 3% consecutively for 21 years. The wine market is recovering well from the recession, and is increasing its size. According to Wine Business Monthly there are 7,762 wineries in the United States, which is a 3.5% increase from 2013.The demographic over all is changing in the fact that men are buying more wine then they have ever before. 55% of the consumers of wine are female and 45% of consumers of wine are male. As of 2010, the U.S is the largest wine consuming country in the world. In 2013, the estimated retail revenue was 36.3 billion dollars, which is more than double the amount it was in 1998 with
  • 5. only 17 billion dollars. That included sales from domestic wines, as well as imported wines. 66% of the wine market in the U.S is domestic and 34% are from imports. 57% of the domestic wine market comes from California. The remaining 9% of the domestic sales were from other states. Porter’s Five Forces Threat of new entrants: The threat of new entrants in the Oregon region is low to medium due to the small size of Oregon. The local wine market is saturated with local wineries so there may not be enough room for a new winery to open. The local wineries have created a name in the Oregon community, with the South Willamette Wineries Association. Threat of substitute products: The threat of substitute products is high because there are many different types of alcoholic beverages on the market. There are beverages that range from low alcoholic concentrations to high concentrations. There is also a variety of prices for beverages. The more variety there is, the higher the threat of substitute products. Bargaining power of buyers: The bargaining power of buyers is high because powerful buyers play a large role in Sweet Cheeks revenue. Some of the buyers include Safeway and Fred Meyer, which drive down price because customers can easily compare products next to each other. These retailers hold a lot of power over Sweet Cheeks because Sweet Cheeks gains a lot of their revenue by distributing their wine to these retailers. Bargaining power of suppliers: The suppliers for Sweet Cheeks includes companies that provide equipment for the wineries and vineyards, packaging, and transportation. These companies have some power due to the lack of variety of companies that supply winery and vineyard equipment. Companies that provide transportation are less powerful and are considered to be one kind of channel of distribution. Rivalry within the industry: The competition of the local wine market is high because there are numerous wineries located in Oregon. On top of the local competition, there are California wines that are well distributed and more well known. With the increasing number of wineries in the United States, the wine market is becoming more competitive. Current Market Description Product/Services: Sweet Cheek has provided great wine since 2005, and sits on a vineyard that has been used for 36 years. It focuses on Pinot Gris, Pinot Noir, Riesling and Chardonnay, however there are a few wines such as a Merlot and Rosy Cheeks that are apart of their expanded collection that shows their vineyards growing and harvesting capabilities. There are a total of seven different wines made at Sweet Cheeks, each made with select grapes and are preserved and cultivated with top of the line equipment to create a great balance and exceptional tasting wine. Among the seven wines, there are different years to chose from, each providing a unique taste to the wine. The climate of Oregon allows Sweet Cheeks to grow grapes that will grow
  • 6. and thrive in the environment, producing tastes that will only flourish in the unique setting of Sweet Cheeks. The wine is handmade by the winemakers, allowing them to focus on each harvest througally. Sweet Cheeks wine has a sweetness to it that is different from a typical bottle of wine. The wine was crafted to ensure each bottle has an authentic flavor that everyone can enjoy. Price: Sweet Cheeks Winery prides itself on creating wines that are delectable yet affordable. They offer a variety of prices to ensure everyone can buy a bottle of quality wine. The prices range from 14 dollars to 30 dollars, allowing a variety of consumers to purchase the wine. Prices are based on brand and quality. The most expensive wine Sweet Cheeks offers is their 2012 Reserve Pinot Gris at 30 dollars a bottle, and the prices go down from there. Out of all the Americans who drink wine regularly, only 12% purchase wine that is 30 dollars or more, according to the article The Price of Wine. Different occasions call for different wines as well. With the availability of different prices, a customer can choose which wine will be appropriate for the occasion they are partaking in. At the younger end of the target market, the 14 dollar bottle is preferable, but at the older end, a more sophisticated bottle might be desired. It is difficult to find a quality bottle of wine under the price of 10 dollars, but for someone who is not drinking it for the taste, Sweet Cheeks’ reasonably priced wine is perfect for the occasion. Distribution: Sweet Cheeks Winery is a small winery that has increased its distribution over the span of the 9 years it has been in business. It started just distributing in the Oregon region but has expanded that to 34 states. There are restrictions on the distribution to states like Utah and Alaska, but Sweet Cheeks is looking into branching out to states without restrictions. Retailers such as Safeway, Fred Meyer and Made in Oregon provide a large opportunity for many potential consumers to familiarize themselves with Sweet Cheeks wine. By getting their product into well known retailers, Sweet Cheeks is allowing favorable circumstances for extended recognition. They also distribute their wines to restaurants in the Oregon region, primarily in Eugene, Portland, Salem, and parts of the coast. Restaurants provide unique opportunities because consumers are more likely to try a glass of a new wine instead of buying a new bottle of wine. Tourists are also more likely to try wine at restaurants then retailers. If a tourists tries a wine made by Sweet Cheeks and likes it, there is a possibility that when they go home, they can find Sweet Cheeks in a store close to them. Promotion: Sweet Cheeks Winery promotes their products by gaining loyal and new customers by offering regular wine tasting events and Mimosa Sundays. These events are fun, social ways for customers to meet new people, or just have a fun day with friends and family. Word of mouth is a large way Sweet Cheeks Winery is promoted. By obtaining loyal customers, word of mouth becomes even more of a way to promote Sweet Cheeks. They also practice sales promotion, and give small rewards to
  • 7. those who purchase a certain number of bottles at our winery. With promotional opportunities, customers have an incentive to purchase more bottles of wine. Service Attributes: Sweet Cheeks is known for its hospitality to all guests and incredible tasting wine at a fair price. Because Sweet Cheeks is a small business, it’s employees are local. They practice personal selling, more specifically face-to-face, at the winery. This way their customers are able to experience their hospitality, and are able to find the perfect wine they need. Sweet Cheeks staff is personable and knowledgeable about each wine, giving them the opportunity to make suggestions about wines, as well as food pairings. Considerations would include Sweet Cheeks property; it’s beautiful building, the vineyard itself, as well as the equipment used to ferment the wine. The building is over 50 years old, and was not originally part of the winery. In 2003 it was scheduled to be destroyed, but the owner of Sweet Cheeks, Dan Smith, saved the building and brought it to his new vineyard, creating the perfect environment for his winery and customers. Sweet Cheeks places a high value on customer relations and satisfaction, which creates a very successful environment for both the consumers and employees of Sweet Cheeks. They also have successfully implemented many efforts to maintain a level of corporate social responsibility within the Oregon community. For example, they make an effort to hold events that partner with nonprofits in the community, such as Lane County’s A Family For Every Child. Competitive Analysis Local competitors include 22 wineries located in southern Oregon, including Chateau Lorane, Noble Estate, and Silvan Ridge Winery. Some wineries have similar price ranges, while others offer more expensive wines. Not only are local wineries seen as competitors, but imported wines from other states and countries are. The majority of wine consumed in the United States is from California. With the well known brands and prestigious reputations, California wine is a monumental competitor within the U.S wine market. III. SWOT Analysis Strengths: · Local grapes · Distribution throughout the U.S. · Relationships with other vineyards · Brand loyalty · Enjoyable atmosphere · Customer and employee satisfaction · Award-winning product Weaknesses: · Low recognition on social media  Limited use of technology · Limited distribution in U.S. · High cost to maintain · Lack of brand awareness to Gen. Y . Limited employment I. Lack of website visits
  • 8. Opportunities: · Increase use of technology · Expansion throughout the U.S. · Expand to Generation Y demographic · Promotions · Social media presence · Use of technology to boost sales Threats: · Other wineries · Environmental hazards · Competitor brand · Market change · Finances · Microorganism infiltration · Customer taste preferences  Competitive substitutes Strengths Sweet Cheeks uses their own grapes from their local vineyard, creating Sweet Cheeks distinguished flavor. For a small winery, Sweet Cheeks has done an excellent job distributing to 34 states with the resources they have. With returning customers and a wine membership club a customer can sign up for, Sweet Cheeks has brand loyalty as well as customer satisfaction. The Sweet Cheeks Winery Resort allows a comfortable environment. Whether that is by the fireplace on a cold day or on the deck looking out on the vineyard on a sunny Oregon day. Many hours go into each bottle of Sweet Cheeks wine, and each one is unique and one of a kind. Weaknesses By not having the greatest social media following, Sweet Cheeks could work on raising awareness on social sites such as Facebook, Twitter, and Instagram. By changing their focus on instagram from employees towards social settings and wine it would give potential consumers a good impression of their product. By lacking the resources to distribute wine to all states, Sweet Cheeks is limiting how much profit they could make if they were able to distribute their products to all 50 states. Vineyards have a high cost to maintain including the cost of equipment, raw goods, and the property itself. Vineyards are high maintenance and must be carefully looked after. Because Sweet Cheeks is a small business, they have limited employees to look after their crop. Sweet Cheeks should employ another assistant to the winemaker in order to ensure the grapes and vines are looked after. By not offering a Kosher bottle of wine, Sweet Cheeks is limiting their number of potential customers. Opportunities Although Sweet Cheeks continues to experience a high level of success, there are several opportunities for the brand to further expand. To promote their wine Sweet Cheeks has large opportunity to expand their presence in the restaurant world. By extending their presence in restaurants in Oregon, they will be able to become a recognized brand. Through a more efficient distribution Sweet Cheeks would be able to appeal to a larger demographic locally as well as throughout the country. By improving their social media foot print, Sweet Cheeks would be able to reach their target market of Generation Y. By improving their website, it would allow potential
  • 9. consumers to access information easily. A way they could improve it would be to add a blog. It would personalize the website, and allow customers to view updates of the winery and feel apart of the environment. Promotions are a great way to entice customers to purchase more of the product. By selling more wine, Sweet Cheeks would give the customer an opportunity to try different wines, and choose for themselves what wine they like best. If Sweet Cheeks were able to sway purchases by this target market, their profits would increase. Threats Sweet Cheeks’ main threat is other brands of wine, whether the brands are local or imported. The majority of wine consumption in the U.S is from California with the second leading consumption comes from imported wines from foreign countries. Shifts in the market trends also create threats if they went towards another style of wine or an entirely new market. If Sweet Cheeks did not accommodate for the shifts, their financials would be greatly impacted. Nature can also be a threat. Sweet Cheeks is located in the Willamette Valley and the environmental hazards can be an unexpected threat to the growth rate of the vineyard’s grapes. If Oregon has a fluctuation in weather that is not typical to the region, the vineyard may experience trouble. Too much snow or too much sun can have negative effects to the produce. The soil has a huge effect on the quality and taste of the grapes, making them a vulnerable essential. If there was a storm that changed the soil or washed it away, it would have a detrimental effect on the wine. Microorganisms are a threat because they can destroy or change the produce in a way that would devastate the final product. IV. Marketing Objectives The overall marketing objective is to increase revenue by 25% between January and December 2015. In order to accomplish this, it will be necessary for Sweet Cheeks to do the following within this time frame:  Increase the number of Oregon restaurants serving Sweet Cheeks wine by 15.  Heighten Sweet Cheeks’ social media presence: o Increase Instagram followers by 200% (from 425 to 1275 followers). • Increase the stickiness of the company website by 10%.  Create a mobile application that will launch by July 5, 2015. By accomplishing these goals, Sweet Cheeks will be able to successfully gain market penetration and increase sales.
  • 10. V. Key Issues Sweet Cheeks winery has many local and big name companies competing for the market shares in Eugene and around the state. To meet our marketing objective of increased revenue by 25% we must appeal to the local market in Eugene to get our name out and make it more popular than other local wineries. Our include Territorial Vineyards & Winery, Noble Estate Vineyard & Winery, and Silvan Ridge Winery. Our big name competitors include Barefoot and Yellow Tail. Sweet Cheeks is limited in the amount of wine they can produce because they aren’t a large winery yet, so production capabilities have strong potential to grow. Another big chunk of their market share in Eugene is students at the University of Oregon, their cheapest bottle of wine is $14 which is a bit expensive for college students but a good price for winery visitors. Sponsorship around the community will do great things for expansion purposes and revenue will increase, sharing the experience of going to a winery with people around Eugene will make people more willing to spend a little extra money on their wine. VI. Marketing Strategy Target Market Geographic: For this proposal, Sweet Cheeks will geographically segment their target market, focusing the majority of their marketing efforts within the state of Oregon. However, in order to sell directly to consumers (through their website and mobile
  • 11. app), as well as to their distributors, Sweet Cheeks will need to have some marketing directed towards the 33 states in which they are currently able to ship/sell their products. Demographic: As Sweet Cheeks continues to grow, it is crucial that they continue to expand their targeted demographic. Although it is very important to still keep in mind their customers from the baby boomer and generation X demographics, as these two groups make up the majority of the customers in the wine industry, Sweet Cheeks needs to expand their reach and focus their marketing efforts on a younger age market, generation Y. Also known as Millennials, members of generation Y are leading growth in the wine industry. Compared to only 37% five years ago, 51% of Millennials drink wine on a weekly basis. That growth exceeds any other generation by over 6% (Nichols). Psychographic: Sweet Cheeks should focus their marketing efforts on targeting the psychographic characteristics of Millennials. Consumers from generation Y are heavily influenced by others, particularly through social media, and are very fond of using technology. They live extremely social lifestyles and want to find situations to drink wine with their friends. This generation has a more moderate income than older consumers, however, the lower prices of Sweet Cheeks’ wine creates customer value that Millennials seek (Kalikow). By increasing their social media presence, creating a mobile app/updating their website, and increasing the number of restaurants that serve their product, Sweet Cheeks will be directly targeting these specific characteristics of this generation. Positioning Sweet Cheeks offers customers a range of award-winning, luxurious wines at affordable prices. The winery has established itself as a memorable destination in the scenic Willamette Valley, where visitors get the opportunity to create lasting memories amongst a friendly and welcoming staff. The Proposed Marketing Mix Product/Services: Sweet Cheeks offers 7 distinct, uniquely flavored wine, ranging from Pinot Gris to Pinot Noir. Rather than focusing on product developement, Sweet Cheeks will implement a market development strategy. Sweet Cheeks’ products have earned many awards and have already gained a loyal customer base within the Oregon/Pacific Northwest wine market. Keeping the products the same will allow Sweet Cheeks to keep their already happy customers, and to use their marketing budget in order to gain a larger market share. Price: The price of Sweet Cheeks wine, at the Winery itself and at other retail locations, will not change. The current prices are set in accordance with the proposed marketing plan and will allow Sweet Cheeks to sell to their target market while continuing to increase revenue. The only change in prices will come from the coupons and promotions mentioned below.
  • 12. Place: Sweet Cheeks will expand their place by extending their distribution to 15 new restaurants in the Oregon area. By expanding to locations in the state of Oregon, Sweet Cheeks brand will be more advertised and well known than ever before. It will give a chance for new consumers to try their wine which will provide a potential for new customers. Promotion: Sweet Cheeks plans to expand their social media, more specifically on Instagram, Twitter, and Facebook. Word of mouth would be a big advantage to our promotional goals. By rewarding loyal customers, their experiences would become known to others by word of mouth, thus insuring more loyal customers. By keeping this customer loyalty, friends of friends will purchase Sweet Cheeks wine and, in return, tell more people about Sweet Cheeks wine. Service Attributes and Considerations: Sweet Cheeks will continue to engage in corporate social responsibility, as well as cause related marketing. VII. Implementation of the Marketing Strategy Increase Revenue by 25% As exemplified in the financials section, as well as in the success of the winery in general, Sweet Cheeks has been able to increase revenue on a year to year basis. In order to for Sweet Cheeks to continue this trend and increase revenue by 25% in 2015, they will need to achieve the following marketing objectives outlined below, as well as continue to engage in the marketing strategies they have been successful with thus far. The current Brand Ambassador at Sweet Cheeks, who is also in charge of all marketing for Sweet Cheeks, will be in charge of the monitoring and implementation of this strategy. Milestone: In order to increase overall revenue from the previous year by 25%, that means each year revenues should be increasing by about 2.1% by month on average. Projected Cost: Not counting the cost of the other proposed projects, Sweet Cheeks will budget approximately $45,000 to cover the costs of promotional materials, and the continuation of other marketing initiatives. Create a Sweet Cheeks Mobile App The Sweet Cheeks mobile application will serve many functions that will heighten customer relations, dramatically expand brand awareness, and increase sales. The app will be compatible with all cell phone platforms and will be a huge force in helping to meet the marketing objective of increasing revenue by 25% within 2015. This new technology will serve as a competitive advantage for Sweet Cheeks and will help to differentiate the brand among the other wineries in Oregon.The proposed mobile app will have the following functions:  A calendar that will highlight all of Sweet Cheeks’ upcoming events, including times, location, dates, prices, etc.
  • 13.  A location feature that will allow customers to search for restaurants nearby that serve Sweet Cheeks wine. By including this capability, Sweet Cheeks will make it easier and more accessible for their customers to find local restaurants serving their wine. The additional advertising and traffic due to Sweet Cheeks will encourage additional restaurants to start serving Sweet Cheeks wine, which is congruent with the goal to increase the number of restaurants in Oregon that serve their product.  A component that will allow customers to search nearby stores for those selling Sweet Cheeks wine, as well as recommended food pairings for that wine.  Option for customers to purchase wine, as well as track their shipment. For customers who don’t live near a Sweet Cheeks retailer, the ability to order wine from the app will be an added convenience that will increase wine sales. In addition, using a mobile application will be an effective way for Sweet Cheeks to reach their target market, wine consumers of Generation Y.  Promotions, coupons, and other specials. By giving occasional coupons/promotions on the app, it will encourage Sweet Cheeks’ customers to download and keep the app. Milestone: The project will commence January 1, 2015 and is set to be completed by July 5, 2015. Proposed Cost: Sweet Cheeks will plan to use $15,000 of their 2015 marketing budget to cover the costs of creating and implementing the app. Heighten Social Media Presence Creating a strong social media presence is extremely important given the highly saturated wine industry in Oregon. Although it is necessary to strengthen their presence on all social media platforms, focusing specifically on their Instagram account is the most strategic move and the best way to reach their target market. Compared to their competitors, Sweet Cheeks’ Instagram presence is extremely mediocre in terms of number of posts, likes, and followers. As of November 2014, competitors Noble Estate Vineyard & Winery and King Estate Winery have 82 and 1170 followers, respectively; in comparison, Sweet Cheeks falls in the middle at 425 followers. In order to increase followers, Sweet Cheeks will implement the following strategies:  Increasing the frequency of their posts  Using the beautiful scenery of their winery to their advantage  Creating an Instagram contest using #sweetcheekswinery  Posting promotions, specials, and coupons to reward their loyal followers  Using photography to give potential customers an idea of what it is like to attend one of their many events  Asking customers to share how they pair Sweet Cheeks wine with food, using #sweetcheekswine
  • 14. Milestone: Between January and December 2015, the goal is to have increased Sweet Cheeks’ followers on Instagram by 200% (from 425-1275). Although the goal is to have 1275 followers by the end of 2015, Sweet Cheeks will likely continue to implement similar strategies in order to further differentiate themselves from their competitors through social media. Proposed Cost: 10% of total marketing budget for 2015, which amounts to $19,800. Increase the stickiness of the company website by 10% It is especially important for Sweet Cheeks to have a website that is frequently visited and well liked by their customers. Adding a blog to the existing website is a simple yet effective way for Sweet Cheeks to create a sparked interest from those who already visit their website, as well as initiate interest from new customers who have never visited the site. The blog will allow customers to get more of an insight into the ins/outs of the wine industry, become more familiar with the employees of the winery, in addition to many other things. In the first year, Sweet Cheeks can have an intern manage the blog under the supervision of a current employee. In addition to a blog, Sweet Cheeks will add additional promotional events and coupons that encourage customers to purchase wine from the website. By doing these two things alone, Sweet Cheeks should see the stickiness of the company website increase. Milestones: The implementation of the blog will begin in January 2015 and should take no longer than one month to implement, an end date of February 2015.. However, the goal of a 10% increase is to be attained by December 2015. Proposed Costs: The cost to Sweet Cheeks is relatively low. They will budget approximately $10000 of the overall marketing budget for 2015 to cover the training of staff and updating of the website. Increase the number of Oregon restaurants serving Sweet Cheeks wine by 15 It is essential that Sweet Cheeks increase their presence in Oregon restaurants in order to continue to increase their market share, as well as increase their overall revenue. The more that customers see Sweet Cheeks’ wine on menus, not to mention order it, the more brand recognition and customers the Winery will receive. Sweet Cheeks wine speaks for itself in terms of flavor, and the price is appropriate to be on the menu in the majority of restaurants in Oregon. Making it a priority is a good first step in successfully getting their wines on the menu. In addition to that, creating the mobile app (that advertises the restaurants that serve the wine) and drastically increasing the marketing budget, will make the idea of having Sweet Cheeks on the menu more attractive to prospective restaurants. Milestone: The goal is to have an additional 15 restaurants serving the wine by the end of 2015. On average, that means Sweet Cheeks needs to successfully enter 1.25 restaurants per month. Proposed Costs: Sweet Cheeks will budget approximately $5,000 to cover the costs of potential sales training and promotional materials.
  • 15. VIII. Financials Sales Forecast The table below shows Sweet Cheeks’ sales forecast for 2012-2015, given by cases of wine. Jan Fe b Ma r Ap r Ma y Jun e Jul y Au g Se p No v De c Tot al Reve nue 2012 54 1.6 7 54 1.6 7 54 1.6 7 54 1.6 7 54 1.6 7 54 1.6 7 54 1.6 7 54 1.6 7 54 1.6 7 54 1.6 7 54 1.6 7 6,5 00 $1,56 0,000 2013 70 8.3 3 70 8.3 3 70 8.3 3 70 8.3 3 70 8.3 3 70 8.3 3 70 8.3 3 70 8.3 3 70 8.3 3 70 8.3 3 70 8.3 3 8,5 00 $2,04 0,000 2014 87 5 87 5 87 5 87 5 87 5 87 5 87 5 87 5 87 5 87 5 87 5 10, 50 0 $2,52 0,000 2015pr ojection 1,1 00 1,1 00 1,1 00 1,1 00 1,1 00 1,1 00 1,1 00 1,1 00 1,1 00 1,1 00 1,1 00 13, 20 0 $3,16 8,000 These numbers are an average monthly revenue based on annual revenue forecast. Using this information we can determine that a 25% increase in revenue from 2014 to their projected 2015 is a progressive, but attainable objective. Their revenue has steadily increased since 2012 by around $480,000 per year based on their sales of cases. This means that their yearly revenue increase percentage based on the previous has dropped year to year and will continue to drop if changes are not made. Our objective of 25% revenue increase from 2014 to 2015 beats the 23% increase of the 2013 to 2014. If this same trend continued the 2014 to 2015 revenue increase would be around 19%. However, with their objectives we feel it is possible to achieve a 25% increase from 2014 to 2015. Expense Forecast The marketing budget for Sweet Cheeks has been lower in the past, but with their projected increase in revenue they can afford to put more money into their marketing budget. With some of our objectives increasing our marketing budget is a must. To get noticed on Instagram, Twitter, and Facebook they will need to advertise our
  • 16. accounts and use the influx of college students nine months a year to our advantage. Social media and word of mouth are great and low cost advertising techniques in areas with dense population, much like the U of O campus. The mobile app will also need to be developed which they will need an increased budget for. If they can create buzz about Sweet Cheeks winery locally and across the state the number of restaurants serving Sweet Cheeks wine as a menu item should increase no problem. Sweet Cheeks’ Marketing Budget 2012-2015: Year Revenue # of cases Marketing Budget % of Rev 2012 $1,560,000 6,500 $52,000 3.33% 2013 $2,040,000 8,500 $85,000 4.17% 2014 $2,520,000 10,500 $126,000 5% 2015(projection) $3,168,000 13,200 $198,000 6.25% Break Even Analysis Based on the information above we can conclude that the Sweet Cheeks break even is accomplished within the first month of each year based on their marketing budget. IX. Controls & Contingency Plan Marketing Objective: Increase the stickiness of the company website by 10% by December 2015 In order to measure the stickiness Sweet Cheeks should use a software such as Google Analytics that is able to “trace the customer path” (google.com) or see how the customers interact with their website. There are also websites that are able to program a visitor counter onto a companies website in order to count visitation. The amount of comments and likes on the blog posts will be taken into account, as well as the number of orders online. This will be compared to the number of visitors from 2014. If the website does not reach their desired goal of web traffic, a contingency plan could be to create a promotion that offers coupons that have to be printed out from visiting their website. Sweet Cheeks could also consider increasing their marketing objective to hire a web designer to update their current website. This would increase traffic to, and time spent on, their website and the original goal of 10% will be achieved. Marketing Objective: Increase revenue by 25% between January and December 2015 In order to increase revenue, Sweet Cheeks Winery will have to sell more cases of wine than they did in 2014. It is projected that by the end of 2014, Sweet Cheeks will have sold 11,000-12,000 cases of wine. In order to continue to grow in revenue, they
  • 17. will need to sell 13,200 cases by the end of 2015. If this goal isn’t attained, the contingency plan would be to hire a Public Relations Officer and start advertising Sweet Cheeks wine. The Public Relations Officer could host wine sampling events around the community, and work different angles to reach their target market in order to increase awareness of the Sweet Cheeks brand. Marketing Objective: Increase Oregon restaurants serving Sweet Cheeks wine by 15 by December 2015 The amount of restaurants carrying Sweet Cheeks wine is easily measured by comparing the number of restaurants serving Sweet Cheeks wine to date, 34, and add fifteen to that number. This would mean that by December 2015, forty-nine Oregon restaurants will be serving Sweet Cheeks wine. If this goal is not reached, Jeff Parker (Sweet Cheeks Brand Ambassador) will have to spend more time trying to persuade restaurants to purchase Sweet Cheeks wine. Marketing Objective: Heighten Sweet Cheeks social media presence By the end of December 2015, Sweet Cheeks wants to increase their Instagram followers from 425 to 1,275. There are many computer applications, such as Hootsuite for example, that can track activity on all social media accounts, including Instagram. Currently, Sweet Cheeks has one employee (Jessica Ramp) that is in charge of handling their social media accounts. If the desired amount of followers is not reached, Sweet Cheeks could hire an additional employee or intern, as well as dedicate a larger portion of the budget to their social media efforts. Marketing Objective: Create mobile application that will launch on July 5th , 2015 If the app is not finished, or on track to finish, by September 5th , 2015 Sweet Cheeks could consider hiring a new application developer, or putting forth more of the marketing budget in order to complete the app. Once the app is released to the marketplace effectiveness can be measured in a variety of ways: the number of downloads, customer satisfaction ratings on the various app stores, the amount of wine purchased through the app, or the number of coupons/specials redeemed. If the app doesn’t seem as successful as anticipated, Sweet Cheeks could engage in primary research to understand how the app could better suit the needs of their customers.
  • 18. Works Cited Dr. Thach, Liz. “Trends in the US Wine Industry for 2014- Sunny Cellars with Some Cobwebs.”, 26 March 2014. Web. 15 Nov. 2014. Fisher, Cathy. “Total U.S Wineries Hits 7,762.” Wine Business Monthly. February 2014. Web. 14 Nov. 2014. Kalikow, Leora. "Gen Y Is Gen Wine." The Huffington Post. TheHuffingtonPost.com, 01 Oct. 2013. Web. 17 Nov. 2014. Lamb, Charles W., Joseph F. Hair, and Carl McDaniel. MKTG 6. Mason: South- Western Cengage Learning, 2013. Print. Mayyasi, Alex. “The Price of Wine.” Priceonomics. Priceonomics. 29 March 2013. Web. 13 Nov. 2014. Nichols, Rachel. "U.S. Wine Consumer Trends: Boomers Tastes Evolve, Millennials ..." WineBusiness.Com. N.p., 24 Jan. 2011. Web. 17 Nov. 2014. Revoalution. Sweet Cheeks Winery. Sweet Cheeks Winery. n.d. Web. 15 Nov. 2014. White, Jerry. A Wine Marketing Plan That Supports Cash Flow. Department of Applied Economics and Management, Cornell University, n.d. Web. 15 Nov. 2014.