Ch. 16 -Integrated Marketing Communications

     
     When it comes to sales promotion, long-standing companies like Dom Perignon rely heavily on their already established reputation rather than on traditional advertising techniques like television, radio, or billboards. Luxury brand companies rarely give things away for free for fear that offering discounts or free items with a luxury purchase could place the company in a position where they look as if they need to give something away in order to make a sale. Dom Perignon is a company with a projected image of elegance and prestige. Giving away promotional products could potentially compromise the integrity of a company that has worked very hard to maintain a prestigious image. Centuries of marketing Dom Perignon has put them in a unique position where word of mouth precedes non-verbal promotion or advertising. The average consumer can only name a handful of luxury champagnes and Dom Perignon very often tops the list. This kind of favorable publicity is something that can only be achieved through many years of promotion and advertising, that of which has changed greatly throughout the time that Dom Perignon has been in operation. No amount of advertising money can buy this kind of long-lasting promotion.
      While many people do purchase individual bottles of Dom Perignon for personal, non-business use, the company makes most of their money selling cases of Dom Perignon to restaurants, bars, wine shops and nightclubs. This kind of personal selling by wine and spirits representatives turns an otherwise personal product into a business product purchased by the buyer. These representatives are able to offer the buyer a sales promotion, namely discounts on over-seas tax, to encourage the buyer to purchase a certain amount of cases to sell in store.

      As mentioned earlier, interpersonal communication is the driving force in the marketing of Dom Perignon. With the exception of very few print ads, mass communication is almost never used when attempting to sell or promote the product. Representatives can often influence current and potential buyers based solely on the companies reputation and thereby putting the seller in the position on the sender. The buyer, or receiver, can then give the appropriate feedback to the sender based on his or her positive or negative experience with the champagne. Because Dom Perignon is a very expensive champagne, buyers and consumers often have to go through an extensive thought process when deciding whether or not to buy a single bottle or an entire case. Typically, because Dom Perignon is such a mature company, consumers need little more than to be reminded that the champagne still exists. In terms of the AIDA concept, Dom Perignon is mostly concerned with the action that they take in terms of promotion. Little attention needs to be drawn to Dom Perignon, many consumers have an interest in it, and avid champagne drinkers certainly have a desire for it. It is up to the marketer or promoter to make sure that the consumer takes the final step and purchases a bottle or case.  

Ch. 10 - Product Concepts

        Dom Perignon is a specialty product with a prestigious and high-end name associated with it. Those who purchase Dom Perignon rarely do so on a whim and may have to do some research and planning in order to find somewhere to purchase a bottle. Dom Perignon itself is part of the group LVMH, a group specializing in high-end goods including wines, spirits, leather goods, fashion, perfume, watches and jewelry. LVMH boasts a unique product mix width among their wines and spirits which include Moet & Chandon, Krug and Hennessey to name a few. Having a diverse product mix allows LVMH to sell a wide variety of wines and spirits to potential buyers, Dom Perignon included. Because Dom Perignon is a vintage cuvee, each product in their product line is essentially unique for that year and cannot be recreated, regardless of what demand calls for. According to Dom Perignons website, their current product line includes a rose 2000, a vintage 2003 and two oenotheque 1996 and 1990 vintage and rose respectively. Additionally, Dom Perignon has added a specialty bottle designed by director David Lynch to their product line for the rose 2000 and vintage 2003 champagnes.  
       Dom Perignons brand name speaks to excellence and luxury. Many people recognize the name as being the gold standard for luxury champagnes, regardless of whether or not they have tried it. This kind of brand recognition is due in part to cooperative branding by Moet & Chandon. When Moet & Chandon first acquired Dom Perignon in the 1950s, the two champagnes appeared side by side in their print ads. This was done in order to create a positive association with Moet & Chandon and the lesser known Dom Perignon. Once Dom Perignon gained a reputation for excellence, it was able to carry its own brand name thanks to Moet & Chandon. While the average consumer can't necessarily afford to stay brand loyal to Dom Perignon, buyers from restaurants and nightclubs tend to stay brand loyal to high end champagnes like Dom Perignon and will keep their establishments stocked with the fine champagne as long as it is selling.
        Another reason that Dom Perignon comes out ahead above the rest in regards to brand recognition is their unmistakeable and iconic packaging. Since its inception in the early 1600's, Dom Perignons gold shield has remained virtually unchanged on every bottle. Each bottle boasts the prominent shield, making it the most recognized logo of any champagne manufacturer. Many recognize the shield as a symbol of high quality champagne and excellence. The gold shield has become synonymous with wealth and prestige, which is exactly the kind of image that Dom Perignon has strived for for centuries. Noted artists like David Lynch have undertaken the privilege and task of redesigning the logo and bottle, while it still remains recognizable. When Dom Perignon created tribute bottles to artist Andy Warhol, the iconic shield appeared in bright blue, pink and green in order to honor the late artist. In both cases however, the bottle and logo designs keep the original integrity of a time honored and classic packaging.

 

Ch. 18 - Sales Promotion and Personal Selling

      

      Fine wines and champagnes are generally not the kind of items that average consumers purchase with coupons, rebates or special offers. Dom Perignon is no exception, and consumers often find themselves paying full price when purchasing this coveted champagne. Because Dom Perignon is a luxury brand item, marketers for the company are weary about lessening the brands name by offering significant discounts on their product. Although Dom Perignon does not subscribe to sales promotion directed at the consumer, it does offer sales promotions when dealing with their wholesalers and retailers. Because Dom Perignon exports most of the bottles that they produce, they are able to offer retailers outside of France cases of champagne less the tax they would normally pay. A tax free discount on multiple cases of Dom Perignon can mean hundreds of dollars saved for retailers and large wholesalers. Nightclubs and restaurants are also privy to this tax exempt discount provided they meet the minimum requirement of bottles purchased.

      Representatives for the wines and spirits of Dom Perignons parent group, LVMH, rely heavily on personal selling and relationship selling in order to ensure that retailers and restaurants keep their products in stock. LVMH also represents notable champagnes and spirits such as Moet & Chandon, Hennessey,  Veuve Clicquot, Belvedere vodka and Krug. Typically, representatives for LVMH will have standing accounts with different wine shops, restaurants, nightclubs or wholesalers that have agreed to stock and sell the alcohols that LVMH offers. These representatives tend to have long standing personal relationships with those who buy alcohol for these different companies. When dealing with a potentially perishable luxury brand item, it is imperative that those doing the buying feel comfortable and secure when purchasing large amounts of expensive alcohol should something go wrong. Through these long standing buyers, representatives are able to network appropriately and gain qualified leads in order to secure more accounts within the given industry. LVMH representatives are then able to do the necessary research and preapproach for companies that appear promising for future accounts.