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Harpers Debate: Part 1

Published:  23 July, 2008

For the second year in a row, Harpers teamed up with leading industry research group Wine Intelligence, which released original research prepared especially for the debate.

So what form of promotion is the most effective? Well, I suppose the not-very-helpful answer is "it depends on how you measure it". Use a different measure and you get a different answer,' said Halstead. She continued: The general pattern, however, is that price-led promotions are working most effectively in terms of both sales and recall, followed by advertising, followed by tasting and sampling.

However, if we look at purchase-to-recall, the pattern does change. If you can get people to remember it, tasting really comes into its own and works effectively. The issue is clearly the low recall of brand name.

The encouraging news for sales promotion is that multi-buy, which represents the biggest cost to consumers, clearly works, particularly among "high-involvement" consumers - although this doesn't answer the question of what is happening to long-term brand equity. You need to ask what the goals of the business are. If they are short-term volumes, then sales promotion is the way to go. If they are not, then different forms of marketing communication may be very useful to your business.'

Halstead concluded: Advertising is sitting there in the middle, and it's clear it can work for wine, and very effectively, if you choose the channels correctly for your type of audience and your type of consumers. The key to knowing how to spend your money effectively is knowing who your target audience is and what type of consumers they are. Then you can begin to make better choices about how to spend your money - different types of consumers react to advertising and communication in different ways.'