SMS could save Australian wine industry

The recent news that Australia’s wine exports have suffered an 18% decline in value in 2008 is the first setback for this successful industry in 15 years. The current global economic crisis has severely impacted on the Australian wine export market and this can be expected to continue in the coming year. The current value of the wine export industry is AU$2.46 billion according to the Australian Wine & Brandy Corporation, down from 2007. And the export market is a vital part of overall wine industry figures as the per capita consumption by local Australians is low compared to countries such as France, Italy and Portugal.

Marketers are going to have to be far more innovative in maintaining and expanding their markets both on an international and local level to avoid a large scale crisis. Falling international sales will not only affect wine farmers but permanent staff, seasonal workers and all of the other subsidiary businesses that rely on the wine export trade.

One way to increase exposure around individual Australian wine brands and open up new local markets would be through SMS marketing. Used to great effect in other industries, mobile marketing is effective in both customer acquisition and retention campaigns. Besides that it can generate additional sales at a very low cost. There are more Australians with mobile phones than landline phones making text messaging and SMS marketing the simplest and cheapest way to connect with consumers.

SMS marketing campaigns offer wineries a cost-effective, measurable way of communicating with clients. They also offer a variety of ways to appeal and attract new markets through fun and interactive campaigns. Used successfully in competitions that increase brand exposure, SMS marketing is a valuable tool to entice recipients to visit the farm, tasting room or cellar door. Specials can be promoted, new vintage releases can be marketed instantly and wine orders can be placed via text message. Cross marketing between wineries and restaurants could also offer great benefits; offering SMS discount coupons off the cost of a bottle of wine in restaurants could see an increase in loyal customers and give impetus to that unbeatable ‘word-of-mouth’ advertising.

Why is SMS marketing so effective? The text message gets sent to a person’s most personal communication device – their mobile phone – and they have opted in or chosen to receive marketing messages from you. Because of this they are far more likely to respond to your marketing message and to continue to interact with your brand. Two-way SMS adds another dimension to a marketing campaign as consumers can react instantly to your marketing message or request for information allowing wineries to further define and specify their target markets. The fact that SMS campaigns are measurable allows marketers to justify the marketing budget and increase the return on investment, such a critical factor in these times.

A member of the Great Wine Capitals of the World and with one of the most comprehensive Wine Tourism strategies in the world, the Australian wine industry has always been ahead of the pack in terms of marketing and will now need to be even more innovative. SMS marketing needs to be embraced by wineries as a vital component of their marketing strategies if the wine industry wants to create a strong local market to counterbalance the downturn in wine exports.

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