| In the News PW (May/June 1998) On Target with Cause-Related Marketing |
When any marketing company makes that first client call, there are many questions to be answered. For John Bonick and Vivien Gay, whose full service marketing agency, The Isosceles Group, specializes in promoting brands to gay and lesbian consumers, the sell is even harder. With their 30 years of combined experience in beverage marketing, sales, and promotions, the two partners feel well-qualified and are establishing an enviable record of successes. "When I was with Callaway Vineyard & Winery
(Temecula, CA), we were very supportive of local gay and lesbian events," recalls
Gay. "Then when I moved on to St. Supery Vineyards & Winery (Rutherford, CA),
which was a newer operation trying to gain more market presence, there was always strong,
generous support for non- profit causes for women, Asians, seniors, and the major gay and
lesbian communities in San Francisco, New York, and Santa Fe." John Bonick's resume includes an early relationship with niche marketing at Piper-Sonoma (Healdsburg, CA), where he prepared advertising for the gay press which brought a positive response. When people in the beverage industry suggested Bonick and Gay pool their knowledge and experience, the two developed a partnership with a unique and highly individualized approach to marketing to an under served population.
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TOP: VIVIEN GAY ABOVE: JOHN BONICK |
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| Why the gay and lesbian
market? First, the restaurant community, one of the prime winery targets, has a strong gay
and lesbian employee base. Through national surveys and their own demographic studies,
Isosceles has ascertained that this segment of the market has tremendous influence and
buying power. The gay and lesbian national population is estimated at between 15 and 25 million. The largest population center is New York; next is the San Francisco Bay Area. Then Los Angeles Metro, Chicago, and Washington DC are followed by Houston, Miami, and Boston. Simmons Market Research reports that 28% have an annual household income over $50,000, and 21% have household incomes of over $100,000. About half of the population is college educated and holds management positions. "In the beverage world, liquor companies have always understood this and marketed to this niche," remarks Gay. "Absolut Vodka led the way by buying the back cover in gay and lesbian magazines. Stolichnaya is another major player, Skyy Vodka participates by pouring its product at events. Tanqueray is the major support behind the AIDS Bike Rides held around the U.S. Other spirits producers are also advertising leaders: Johnny Walker, Hennessy, Bombay Sapphire, Bailey's, Miller Beer, Budweiser, and Mumm. "Wine producers have always been more conservative," she admits, "and also tend to have lower advertising budgets. Now some of the wineries are beginning to recognize the opportunities and benefits of targeted promotion." The survey results show that the gay and lesbian community is a remarkably loyal audience, with 88% reporting they would go out of their way to buy products from companies which reach out to them by advertising in the publications they read. With these statistics to support their recommendations, Gay and Bonick created what they call "cause-related marketing," a combination of product donations, print advertising, and point of sale, all devoted to a specific cause. |
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| "As a marketing
company, we believe in building a loyal consumer foundation for our clients. With our
beverage expertise, it was natural for us to work with beverage industry clients to create
integrated and on-going programs in this valuable niche market." To introduce clients and potential clients to this base of loyal, influential, and trend-setting consumers, Isosceles has assembled a portfolio containing stafistical. documentation of the size and importance of the gay market, including reproductions of supporting press notice of successful advertising. "We have built a reputation with the non-profits as a source for winery cooperation in their programs. On the winery side, we are seen as a conduit to reach a different market with integrity." Gay says.
The initial cause-related efforts of Clos du Bois began in October 1997, in conjunction with "A Decade of Remembrance," the tenth anniversary celebration of the NAMES Project AIDS Memorial Quilt. Programs and materials were designed for both on-premise and off-premise venues. The off premise program offered a $1 donation in the consumer's name to the AIDS Memorial Quilt, when the neck hanger or coupon on a tear-off pad was mailed to a fulfillment center. Restaurants selling Clos du Bois were provided with embossed table tents which could also be used as menu clipons, postcard take-ones, and "cheat sheets" to familiarize staff with the program. For each case of Alexander Valley Selection or Vineyard Designate Clos du Bois wines purchased by a restaurant, the winery made a $6 donation to the NAMES Project. For Clos du Bois restaurant accounts, the Isosceles Group designed "A Night of Celebration and Remembrance" in June 1998, for key restaurants to participate in key metropolitan markets. On the designated event night, Clos du Bois will continue to contribute $6 per case to the NAMES Project for each case purchased by its restaurant customer. In addition, each restaurant is asked to contribute a fixed percentage-of-check amount to the cause. Point-of-sale support includes easel cards, small table cards, menu clips, and lapel pins. Clos du Bois advertising appears regularly in Out, Advocate, Metro Source, and QSF. The ads and all support materials are printed in full color. In return, the NAMES Project includes mention of Clos du Bois' support in its national and regional publications, and notifies its chapters so announcements can appear in chapter newsletters. Clos du Bois can trace 25 new accounts in Denver, CO, to its cause related advertising. Graham's Six Grapes Port (Sausalito, CA) led by President David Campbell, participates in Project Open Hand in San Francisco and the East Bay, and in Broadway Cares/Equity Fights AIDS in New York. Graham's has been an Isosceles client for two years. The company makes product and cash donations to a number of charities and does two special programs of support every year on an on-going basis.
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In each program, a percentage value
of each product sale is set aside for the two prime targets. Isosceles works with Graham's
distributors to identify accounts that Gay feels will respond to the program. This year
Graham's ads have been carried in Metro Source and Out. The company reports
a high success rate in selling to targeted restaurant accounts, and notes that, where a
year ago orders were for half-cases and less, re-orders tend to be for multiple cases now.
Earl Myers is president and CEO, and Jan Wells is vice president of
marketing at Cannon Wines Limited (San Francisco), which is Domaine Saint George's marketing
company. They elected to establish the winery
as a major force at "Women's Night in Los Angeles."
A schedule of product donations was set for the various activities surrounding the
"Night," and an ad created by Jamison, Cawdrey Advertising (San Francisco) was
printed as a program insert for the event.
Susan Sokol Blosser, president of Sokol Blosser Winery (Dundee, OR), recognizes the growth potential of cause-related marketing. But as a small winery with virtually no marketing budget, she is limited in the extent of her commitment. She is starting with well-considered donations and tastings for carefully selected groups. In June, she will be appearing as a guest speaker before the San Francisco Women's Group to present her wines and discuss what it takes to run a successful winery.
Participation by the Firesteed brand, which has a line of Oregon wines, grew out of Isosceles' relationship with the parent company, Ramlösa Water, through American Wine & Spirits importer and Firesteed's President Howard Rossbach.
"A year ago Howard Rossbach came to us and asked for our help in enlarging distribution of the water," Gay reports. "We started with product donations, and offered volunteer assistance at major events such as the Gay Pride Parade and the AIDS Dance-A-Thon.
With its well-established links, Isosceles receives requests for support from a growing number of non-profit organizations. Bonick and Gay screen the requests and match the needs of the charitable groups to their clients, who decide their own level of involvement, then work with Isosceles to design and carry out the programs. Often, the link is a simple donation of product ranging from 40 to 250 cases of wine, depending on the scope of the event.
The clients receive prominent signage and advertising in the event program, free tickets to the event, and usually an easel-backed acknowledgment of their donation placed in a prominent spot on the bar or tables in a restaurant.
New projects for Isosceles clients include a joint sales program for Ramlösa and Firesteed Barbera tied to donations of $5 a case to Project Open Hand. In another cooperative venture Ramlösa and Graham's Six Grapes are working with Project Angel Food in Los Angeles.
"Phenomenal opportunities exist for pioneering companies who give serious consideration to targeting and focusing on the gay and lesbian market," Gay adds, summarizing the Isosceles rationale. "It is a viable, savvy group of consumers who have a desire for affirmation and inclusion. The companies that recognize this need and adapt their business and marketing plans to this group can make an indelible, long-lasting, rewarding impression."