Influence to educate

In reflection on DBR, one advantage of pursuing a new wine market like China that became clear to me was being the first brand to educate a new consumer. Especially considering that new consumers in wine are often “insecure” about purchasing wine and therefore choose a “recognized brand” off the shelf to cope (Appendix B of DBR case). This feeling of “not knowing enough about wine” is really quite pervasive, in reading it online and as evidenced in blog posts. Thornton in his book and Santiago in his wine blog post mention how wine defies the laws of economics. So perhaps it makes sense that wine is different from other goods for which companies can spend on understanding the needs of their customers and then respond. Rather, like Steve Jobs did, show people what they want rather than expect them to know what they want. 

This HBR review comes up with three steps the wine industry can use to shape consumer preferences: 1) pursue a vision, 2) mobilize those with influence, and 3) let the customers react and share. A key strategy is to let experts and scores guide consumers. Building influential relationships, too, is a strategy that enables producers to control the story and perception that reaches the public. In the case of DBR, this was achieved by partnering with the Chinese investment company. 

There seems to be something really special about the fear and insecurity new wine customers feel when buying wine. And whether it is from this insecurity or something else that wine consumers are rather inconsistent in their preferences and have limited knowledge, it is an opportunity that producers can capitalize on to influence the preferences of their consumers. This is why I see such an opportunity for first movers in a new wine market. It is because the uneducated, fearful customer exists that a producer can dazzle and simultaneously educate and win a new palette. 

Reference: https://hbr.org/2019/03/what-the-u-s-wine-industry-understands-about-connecting-with-customers