Marketing Small Wineries: An Exploratory Approach to Website Evaluation

Transcription

1 TOURISM RECREATION RESEARCH VOL. 29(3), 2004: Marketing Small Wineries: An Exploratory Approach to Website Evaluation JINGXUE (JESSICA) YUAN, ALASTAIR M. MORRISON, SALLY LINTON, RUOMEI FENG and SANG-MI JEON This study was conducted to evaluate the marketing strategies of small wineries and the role of the Web within these strategies. A Website evaluation instrument was developed to measure the effectiveness of small winery Websites from multiple perspectives. The instrument was tested on a sample of 18 small winery Websites in a Mid-western U.S. state. These Websites were found to be electronic brochures rather than dynamic relationship marketing tools. Implications for improved performance on Web marketing by small wineries were identified. Keywords: small winery, wine tourism, web marketing, balanced scorecard approach, critical success factors. Introduction The Internet has become an important sales tool for wineries throughout the world, and an increasing number of wineries have developed Websites that allow customers to order wines directly through a cyber shop (Mitchell and Hall 2000: 209). A survey of 176 wineries in California showed that more than half used the Internet for wine sales (Anderson 1999, cited in Mitchell and Hall 2000: 210). Wineries, particularly small-scale properties, can use the sales options available on their Websites to overcome limitations on distribution channels and to expand sales. Meanwhile, customers taking advantage of electronic shopping can reduce their search costs for wine products and product-related information (Lynch and Ariely 2000: 84) and make flexible purchases, provided that associated state laws allow wine shipment. However, it would be misleading to think that the online sales option is the most significant feature of a small winery s Website. In the virtually boundless territory of cyberspace, wineries can capitalize on the full range of interactivity granted by the World Wide Web (Web). These online capabilities should enable small wineries to market their products more effectively and the total wine tourism experience. In fact, a winery s online marketing efforts need to be multi-faceted. A winery website should generate potential visitor s involvement with the winery and its wine, convey the winery s brand and role as a tourist attraction, sell the entire wine tourism destination, and increase the winery s regional, national and even global presence. Winters (1997, cited in Mitchell and Hall 2000: 211) suggested that winery Websites provide some or all of these features: profiles of the wine and managers, stories about the winery, mail-order offerings, maps to bring tourists to tasting rooms, discussion groups, surveys, information about related tourist attractions, calendars of events, links to related firms and associations, recipes matching wine with food, tips on storing wine, and educational information about health. However, no criteria have been developed to date to analyse the contents and to evaluate the effectiveness of winery websites. This exploratory study was designed to address this research gap and its results should benefit both wine producers and those involved in wine tourism. The primary objectives of this research were to: (1) consider the marketing strategies of small wineries and the role of the Web within these strategies; (2) develop website evaluation criteria as an instrument to measure the effectiveness of small winery Websites from multiple perspectives; and (3) test the JINGXUE (JESSICA) YUAN Instructor, Department of Nutrition, Hospitality and Retailing, Texas Tech. University, Box 41162, Lubbock TX , USA. jessica.yuan@ttu.edu ALASTAIR M. MORRISON is Distinguished Professor in the same department, 1266 Stone Hall, Purdue University, 700 West Street, West Lafayette, IN 47907, USA. alastair@purdue.edu SALLY LINTON is Marketing Director, Food Science Department, Purdue University, USA. RUOMEI FENG is doctoral candidate, Department of Hospitality and Tourism Management, Purdue University, USA. SANG-MI JEON is doctoral student, Department of Park, Recreation and Tourism Resources, Michigan State University, USA Tourism Recreation Research

2 reliability of the instrument based upon the 25 small wineries located in a mid-western state in the U.S. Literature Review The Need of Marketing by Small Wineries Small wineries are wineries with limited production capacity. Edwards (1989: 14) suggested, based on industry sources, that the annual grape crush for small wineries was less than 200 tonnes, an equivalent of no more than 15,000 cases of bottle production per vintage. Even though they dramatically outnumber the large corporate wineries, small properties contribute a limited portion to the total production of a wine-growing region (Beverland and Baker 1999: 76). However, with their focus on tasting room sales, small wineries offer a unique appeal to winery visitors and continue to provide the greatest impetus to the growth of wine tourism (Hall and Macionis 1998: 202). Small wineries are often faced with severe budget restrictions on marketing and advertising. In many cases, the owner is the only full-time employee and assumes multiple roles such as the viticulturalist, mechanic, chemist, farm labourer, purchasing officer, and salesperson (Edwards 1989: 14). Small winemakers may under-estimate the need for better understanding customers and applying sound and contemporary marketing concepts to winemaking activities (Spawton 1986: 89). Most of them focus on making fine products and believe that reputation alone sells wines (Hall and Winchester 2000: 93; Beames 2003: 207). Therefore, many small wineries do not seem to have implemented effective tourism development strategies. Small wineries operate in a hostile commercial environment. The number of wineries is decreasing through mergers and acquisitions, bankruptcies, or conversion to grape growing (Spawton 1986: 90; Beverland and Baker 1999: 76). They also have to cope with shifting consumer tastes and diversification of the customer base in a dynamic marketplace (Hall and Winchester 2000: 93). Moreover, the changing trends in travel have created a new wine tourism era (Beames 2003: 206). All of these issues and trends call for a greater focus on the demand side and a much better appreciation of marketing among small wineries. Marketing Strategies for Small Wineries This study identified five marketing strategies for small wineries through an extensive review of the literature on wine and wine tourism marketing. Segmenting the market: The wine industry has been criticized for adopting a mass-market approach (Hall et al. 2000: 157). This situation has not improved much recently (Beames 2003: 207). Undifferentiated market is an unrealistic approach if an individual winery wants to maintain present and future profitability (Tzimitra-Kalogianni et al. 1999: 885). A number of market segmentation models have been developed, reworked and modified (Spawton 1991; Goldsmith and d Hauteville 1998; Hall et al. 2000; Hall and Winchester 2000; Lockshin and Spawton 2001; Mitchell and Hall 2001; Bruwer et al. 2001). Small wineries need to determine an appropriate approach to categorizing their visitors. Identifying the target market: Small wineries have limited managerial and financial resources to establish product lines for the needs of different segments. It is important, therefore, that small winemakers focus on customers that genuinely appreciate their efforts (Hall and Winchester 2000: 95). This particular segment of the wine drinking public is more likely to be winery visitors. They normally have more education and higher incomes, are more interested in quality wine, and are keen to enjoy new travel experiences (Bruwer 2003: 431). Winery yields can be improved when wineries find the right group of customers who will spend money on their winery trips (Getz 2000: 9). Nurturing guest relationships: Wineries that strive for better guest relationships will increase their market shares while retaining the visitors (Fuller 1996: 142; Hall and Winchester 2000: 93; O Neill et al. 2002: 342). An investment in customer retention strategies can result in higher returns and lower costs because repeat visitors taste fewer wines and spend more on wine and souvenirs than first-timers (Dodd 1999: 23; Beverland 1999: 98). Customer education also retains visitors and expands the customer base (Hall 1996: 112). Wineries providing educational opportunities, allow visitors to increase interest levels in wine, which may result in greater loyalty toward the winery and its wine (Beverland et al. 1998: 403). Promoting the total wine tourism experience: Today s more educated and sophisticated wine tourists need to have a favourable total experience (Bruwer 2002: 98; Williams 2001: 53) and demand more diversified activities at each winery (Beverland 1999: 95). The need to clearly and uniquely position a winery in the minds of potential visitors continues to grow and small wineries must develop images that portray their properties as places for truly extraordinary wine tourism experiences (Williams 2001: 52; Beames 2003: 209; Carlsen and Dowling 2001: 46). Building partnerships: The formation of alliances and networks is fundamental to a successful strategy for providing a total tourism experience (Beverland 1999: 99; 16 Tourism Recreation Research Vol. 29, No. 3, 2004

3 Hall et al. 2000: 157). Beverland (1999: 99) proposed a sixmarket model for wineries wanting to seriously enter wine tourism: consumers (wine tourists), intermediaries (restaurants), suppliers (equipment sellers), alliances (hotels), internal (employees), and influencers (wine writers and the media). Small wineries also need to develop collaborative marketing efforts with local tourism organizations and other wineries. These five strategies when taken together suggest that small wineries must pursue strong relationship marketing strategies. Relationship marketing means building, keeping, and enhancing long-term relationships with customers and industry partners (Morrison et al. 1999: 99). Effective use of the Internet, particularly through the Web s interactive features and capability of connecting people, should be a core element of a small winery s relationship marketing strategy. Benefits of Web Marketing for Small Wineries Today s discerning winery visitors expect a large amount of information about each winery (such as a tourist map, activities, attractions and facilities) to assist with their travel decisions (Beverland et al. 1998: 406; Beverland 1999: 95). As special-interest tourists, these people are more likely to use the Internet to gather travel information. A winery Website creates an ideal venue for the information search by these individuals. Additionally, the relatively low cost of establishing and maintaining a Website is a key advantage for wineries (Mitchell and Hall 2000: 215). Interviews in July 2003 with 19 of the 25 small wineries in Indiana found that the average cost of acquiring a domain name was less than $50; and website maintenance costs were less than a few hundred dollars per year, much lower than the expenditures required for traditional advertising. Limited marketing budgets curtail small wineries ability to go beyond local areas of operation (Edwards 1989: 15). This geographic restriction does not apply in Web marketing. With the predicted explosion in electronic commerce, the Internet may increase the level of globalization of even the smallest businesses (Oviatt and McDougall 1998). A small winery s Website automatically positions the business in the international marketplace of wine tourism through the global accessibility of the Internet. Another advantage of the Web for small firms is niche marketing (Morrison et al. 1999: 101). Niche marketing involves identifying the potential visitors who have an interest in the winery. The Internet allows small wineries to target these visitors and understand their needs via , online surveys, and discussion groups (Mitchell and Hall 2000: 210). Fuller (1996: 142) predicted that the greatest potential for growth of wine tourism may come from educating new wine consumers, which can readily be achieved through a winery Website (Mitchell and Hall 2000: 211). A critical role of winery Websites is to be promotional networking tools for wine tourism (Mitchell and Hall 2000: 211). Of particular importance here are the links directed towards other wine and tourism websites, and the amount of information associated with nearby tourism attractions and resources. These links form an informal business promotional network that draws on material from various wine and tourism businesses to provide the visitor with a comprehensive picture of the wine region and its attractions (Mitchell and Hall 2000: 211). Websites are now a necessity in the development of a wine tourism strategy (Beverland 1999: 95). Figure 1 summarizes the major benefits of Web marketing for small wineries. Figure 1. Benefits of Web Marketing for Small Wineries Cost savings Accessibility Niche marketing Partnership Cheaper to establish and maintain than other forms of advertising May save on brochure and postal costs Provides instant access to a wider market of potential visitors Allows visitors to have the most updated information Potential consumers can access the information at any time Attracts visitors from other regions Positions the business in the international marketplace through global accessibility People with special interests (i.e., wine and wine tourism) often search the Web Internet users are better educated and more affluent; this is compatible with winery goers Provides interactions with interested customers and visitors Educates winery visitors and wine lovers Winery is able to build alliances with other wine tourism stakeholders by establishing reciprocal links Establishes informal business promotion network Promotes 'total' wine tourism experience in a collaborative manner Website Evaluation and the Balanced Scorecard Approach A number of approaches have been suggested or used for measuring the effectiveness of tourism and hospitality Websites (Murphy et al. 1996; Kasavana et al. 1997; Ho 1997; Cano and Prentice 1998; Connolly et al. 1998). One of the Tourism Recreation Research Vol. 29, No. 3,

4 most frequently used tools has been the modified Balanced Scorecard (BSC) approach developed by Morrison et al. (1999) on the basis of Kaplan and Norton s (1992) work. The underlying assumption is that the performance of a business should be a multi-dimensional construct. A Website s effectiveness, therefore, should be measured from a number of balanced perspectives in order to reach a more accurate and comprehensive evaluation. Morrison et al. (1999: 104) identified four dimensions for their small Scottish hotel Website evaluation: technical, customer, internal, and marketing. Each dimension was operationalized through a set of Critical Success Factors (CSFs). The modified BSC approach was subsequently implemented in evaluating the Websites of other types of hospitality and tourism businesses. Examples were convention centres (Kim et al. 2002; Kim et al. 2004), national tourism organizations (Ismail et al. 2002; So and Morrison 2002), destination marketing organizations (Feng et al. 2003), and B&Bs (St John et al. 2003). These studies used content analysis by one or more experts to evaluate the CSFs pertinent to the four perspectives specific to the business type (Morrison et al. 2004). The modified BSC approach has been tested over the past five years and found to be a reliable instrument. Thus, it was adopted by the current study on evaluating small winery Websites. The underlying concepts of multi-dimensionality and balanced measurement were borrowed with each perspective tailored to reflect the unique characteristics of small wineries. The instrument consisted of four perspectives: technical, customer, winery internal, and marketing and partnership (Figure 2). A set of CSFs was developed for each perspective to reflect the five previously stated marketing strategies (Figure 3). These CFSs articulated the features of an effective small winery Website. Figure 2. Balanced Scorecard (BSC) Perspectives Technical Perspective Winery Internal Perspective Customer Perspective Marketing & Partnership Perspective Figure 3. Critical Success Factors (CSFs) for Effective Small Winery Websites Perspectives Technical (5 items tested; 25 raw Customer (20 items tested; 20 raw Winery Internal (22 items tested; 22 raw Marketing & Partnership (28 items tested; 28 raw Critical Success Factors Link check (Number of bad links present) HTML check (Accuracy of HTML design code; average number of errors on 5 pages) Browser comparability (How well page is displayed in Netscape, Internet Explorer, AOL and WebTV; average number of problems on 5 pages) Load time (Average per second loading of page) Spell-check (Web-savvy dictionary used to check average number of words spelt incorrectly on page) User friendliness (10 items) o Ease of navigation (6 items) o Ease of contact (4 items) Site attractiveness (10 items) History and/or stories about the winery (1 item) Profile of winemaker(s) (1 item) Information on key tourist facilities (8 items) Information on value-added tourist facilities (1 item) Information on wine production facilities (1 item) Web interactive functions (3 items) Educational opportunities (3 items) Information on merchandise (2 items) Maps and/or driving directions (1 item) Opening hours (1 item) Marketing (22 items) o Marketing research (online customer survey) (1 item) o Branding (logo and winery name) (1 item) o Packaging (2 items) o Programming (wine trail/road) (1 item) o Market segmentation (6 items) o Strategic marketing (2 items) o Product tangiblization (7 items) o E-commerce (2 items) Partnership (6 items) 18 Tourism Recreation Research Vol. 29, No. 3, 2004

5 Technical Perspective Objective measures such as Net Mechanic ( are available for assessing the technical qualities of a Website. Net Mechanic checks the links, Hypertext Markup Language (HTML), browser compatibility, load time, and spelling errors in Web pages. The program allots rating scores on a scale of 1 to 5, with 5 being the best. Customer Perspective This perspective, with a focus on user friendliness and site attractiveness, examines Websites from a potential visitor s point of view. Morrison et al. s (1999) measurement scales were changed from Likert formats to dichotomous yes/no questions to indicate the presence or absence of specific site features, as this reduced the level of potential evaluator subjectivity. Winery Internal Perspective The items within this perspective are also evaluated with a yes/no approach. These items reflect the factors that measure a winery s internal readiness to market its products, property, and tourism experiences (Winters 1997; Mitchell and Hall 2000: 211) besides testing the level of interactivity in a Website. Marketing and Partnership Perspective This evaluation used the yes/no approach. Marketing effectiveness was determined by the presence of content or features related to market research, branding, packaging, market segmentation, strategic marketing, and product tangiblization. The degree of involvement in partnerships was assessed by the presence of links to Websites of other wineries, local tourism-related businesses, tourism associations, wine/grape industry associations, and the availability of wider regional information. Statistical Analysis The modified Balanced Scorecard (BSC) instrument was applied to the Website evaluation of small wineries in Indiana. This represented a convenience sampling approach. Of the 25 small wineries, six did not have Websites. One winery terminated its business at the time of evaluation but reopened later (The Indiana Wine Grape Council 2003). The final sample consisted of 18 Websites and the sampling procedure is displayed in Table 1. Six evaluators were employed who were graduate students that had completed a course on Web marketing in tourism and hospitality. After completing the course, they Table 1. Sampling of Small Winery Websites in Indiana Wine Growing Region No. of Wineries (including off-premise tasting rooms) Actual No. of Wineries No. of Small Wineries No. of Available Websites Source: The Indiana Wine Grape Council (2003) No. of Winery Websites Evalua- Code in Evaluatetion Northern Central South Central Southern Total participated in several Web evaluation projects, gaining a broader base of training and experience. The winery Websites were coded from 1 to 18 and reviewed in a computer laboratory setting. Using a dichotomous scale, the six raters gave either a yes (1 point) or a no (0 to each CSF item within the customer, winery internal, and marketing and partnership perspectives. The technical evaluation was conducted separately. The scores were analysed in two ways, namely by winery and by CSF item. The raw score for each perspective of a Website was attained by summing the CSF points given by each rater and the raw mean of the six raters was computed. In order to reach a balanced score for each perspective out of a possible total of 100 points, the four raw means were weighted by their proportions against the 25 points given to each perspective. The rankings of the Websites were determined by the weighted mean scores. In order to evaluate the performance of the 18 Websites on each CSF, the mean CSF score over the six raters was computed. The mean score of each technical item was also obtained. To measure the performance level of all 18 wineries for each of the four perspectives, the total mean score for each perspective was compared to the absolute total points available from the six evaluators, and then expressed as a percentage. This evaluation instrument was developed through a review of previous Website analyses using the modified BSC approach. The CSFs were identified on the basis of marketing studies on wine, small winery and wine tourism. The pilot version was applied by one of the researchers in evaluating 10 small winery Websites in Michigan. The instrument was Tourism Recreation Research Vol. 29, No. 3,

6 also reviewed by a number of wine tourism and marketing experts. Revisions were made to winery internal and marketing and partnership perspectives. The instrument, therefore, demonstrated a satisfactory level of content validity. An inter-rater reliability test for the dichotomous data was performed to determine the level of consistency across the evaluations of the six raters. The technical part was not included in this analysis because it was done separately. The Kendall s Coefficient of Concordance was W = A higher W value indicates more agreement, with one representing complete agreement (Landis and Koch 1977). The W value in this study showed a moderate and acceptable level of agreement among the six evaluators. Results On average, the 18 Websites performed the best on the technical perspective (Table 2). Seven Websites scored 20 or above out of 25 points. The Websites also performed relatively well on the customer perspective, 17 of them achieving scores between 13 and 21. However, only one Table 2. Weighted Balanced Scorecard Results for Indiana Small Wineries Website Evaluation Winery Technical Customer Winery Internal Code (25 (25 (25 Marketing & Partnership (25 points ) Total ( Mean Website showed a satisfactory level of performance in the winery internal perspective (17.05 points; Winery 4). Five other Websites received scores between 10 and 12. The poorest performance occurred within the marketing and partnership perspective. None of the Websites had scores higher than 10. The composite scores, where the four perspectives were summed, indicated that only one winery received a passing grade (62.43 points; Winery 4). The mean value for each perspective reflected the same pattern of performance by the Websites. The total mean value was 48.76, below the 50 percent performance level (Table 2). Two wineries in Central Indiana topped the total BSC ranking (Table 3). Interestingly, these two Websites received relatively low technical scores but performed exceptionally well on the rankings for the other three perspectives. The Website that had the best technical performance occupied the last position for the customer and winery internal perspectives. Overall, the wineries in Southern Indiana were not high ranked on the basis of total BSC scores. Table 3. Ranking of Indiana Small Wineries Websites on Balanced Scorecard Results Winery Code Technical Customer Winery Rank Rank Internal Rank Marketing & Partnership Rank Rank Total Region in Total BSC Rank Indiana Central Central South Central Northern Northern South Central Southern South Central Southern Southern Central Central Southern South Central Central Southern Northern Southern The performance of these 18 Websites was also measured by each of the four perspectives and for individual CSFs. Technical Perspective The technical rating criteria used by the Netmechanic.com are shown in Figure 4. Table 4 indicates the average performance of the 18 Websites for the five 20 Tourism Recreation Research Vol. 29, No. 3, 2004

7 technical items. The scores showed there is considerable room for improvement in the technical aspects of these small winery Websites. For instance, the average loading time was between 35 and 46 seconds, which would frustrate many Web users since they have to wait extra time to have these Web pages downloaded. The Websites demonstrated an average of four to eight problems in browser compatibility and between five to 10 per cent misspellings. The error rate (more than 6 errors on average) in the HTML check also requires some action by the winery Webmasters. Tech. Aspects Link Check HTML Check Load Time Browser Compatibility Spell- Check 5-Point Rating 0 bad links Figure 4. Technical Rating Scale 4-Point Rating 1 bad link 3-Point Rating 2 bad links 0 errors 6 errors 12 errors 0 problems 13 seconds 0 misspellings 4 problems 24 seconds 5% misspellings 8 problems 35 seconds 10% misspellings 2-Point Rating 3 bad links 18 errors 12 problems 46 seconds 15% misspellings 1-Point Rating > 3 bad links > 18 errors > 12 problems > 46 seconds > 15% misspellings Table 4. Evaluation Scores by Perspective - Technical Mean SD Per cent Link check HTML check Browser compatibility Load time speed Spell-check Total Percentage of Total (18.44/25) 73.76% Customer perspective Overall the 18 Websites achieved a passing grade (63.28 per cent) on the customer perspective (Table 5). This may have been due at least partially to the fact that several of the Websites had a limited number of Web pages or simple Web structures. As such, content search engines and links to required plug-ins were not commonly needed in these Websites. Apart from this, the Websites were easy to navigate. The Websites provided good contact information and were user friendly. However, site attractiveness was comparatively low, particularly in the area of aesthetic appeal. Overall, these findings indicated that these Websites Ease of Navigation Ease of Contact Site Attractiveness Table 5. Evaluation Scores by Perspective Customer Mean Domain name easy to remember Clear and effective navigation tools Home button available from all pages Site map or index available Search engine for website content available Links to required plug-ins provided Direct contact clearly available Mailing address clearly available Telephone number clearly available Fax number clearly available Current and timely information Clear and readable text Clean and uncluttered pages Sufficient contrast between background and text Background aesthetically appealing Pictures and/or other images available Photos and/or images of a good quality Use of colour to improve the visual appeal of the site Effective use of web page space SD Per cent Length of (vertical & horizontal) scrolling appropriate Total Percentage of Total (75.94/120) 63.28% were primarily geared towards providing information and not focused on attracting wine tourists. Winery Internal Perspective The 18 Websites performed very poorly (35.23 per cent) on the winery internal perspective (Table 6). Therefore, the level of readiness to provide total tourism experience was adjudged to be low for these wineries. The highest-scoring factors included history/stories about the winery, list of available wines, maps/driving directions, and opening hours of the winery. These items delivered the basic information for individuals intending to taste or buy wine at the winery tasting rooms. Visitors can hardly be involved in these sites if they plan a trip for the total tourism experience. Again, the focus of these Websites was on being informative. The wineries did not capitalize on the interactive capabilities and educational opportunities provided by the Web. Marketing and Partnership Perspective Overall, the marketing and partnership perspective had the poorest performance (38.38 per cent) (Table 7). Branding was the only item that received a higher than three-point Tourism Recreation Research Vol. 29, No. 3,

8 Table 6. Evaluation Scores by Perspective - Winery Internal Mean SD Per cent History and/or stories about the winery Profile of the winemaker(s) provide Info.-Key Visitor Facility Tasting room Winery (or vineyard) tour Food items Picnic facilities Calendar of events Gift shop and/or souvenir items Facilities/service for children Facilities for the physically challenged Information on visitor facilities that add value to the winery Information on wine production facilities Interactive newsletters sign-up Discussion groups On-line wine club Knowledge on grape growing, variety, wine making, wine, Recipes on food pairing with the winery s wine Tips on wine drinking, tasting, healthrelated issues, List of available wines with descriptions and prices Access the winery s wine in local restaurants, retail stores Maps and/or driving directions towards the winery Opening hours of the winery Total Percentage of Total (46.5/132) 35.23% Education e-com rating. The Websites showed a distinct lack of application of key marketing principles and concepts such as market research, packaging, market segmentation, strategic marketing, product tangiblization and e-commerce. Moreover, little attention was given to marketing and promoting a diversified wine tourism experience. The Websites demonstrated a low level of commitment to partnership building on their Websites. It may be inferred that there was a lack of initiative in entering into alliances with other stakeholders for the strategic development of wine tourism. Implications for Improved Performance Five key marketing strategies were identified for small wineries, namely segmenting the market, identifying the target markets, nurturing guest relationships, promoting the Table 7. Evaluation Scores by Perspective Marketing & Partnership Mean On-line customer survey Logo and winery name reflected on every page Packages of wine sales Packages of wine tasting functions Information on wine trail/road Segmentation Tangiblizing Products Home vintners and brewers Individual visitors Wine-specific tour groups General tourist groups Families International visitors Mission statement Vision statement Virtual tour of the winery or vineyard Photo gallery Awards given to wines Newspaper articles View of critics Press releases Testimonials by customers of the winery Order wine on-line Shipment of gift items Partnership Wider regional information (e.g. attractions, activities) Links to other winery web sites Links to wine-related web sites Links to web sites of wine and/or grape industry associations Information and/or links to local tourismrelated businesses SD Per cent Links to web sites of tourism associations Total Percentage of Total (38.38/168) 22.85% total tourism experience, and building partnerships. They provide the underlying foundation for an effective relationship marketing strategy, focused on long-term relationships with customers and industry partners. The Web, with its interactive capabilities, could be instrumental in helping small wineries implement effective relationship marketing initiatives. However, the analysis of this sample of winery Websites found that the enormous potential of the Web has not been fully tapped. These Websites tended to be electronic brochures rather than dynamic and interactive relationship marketing tools (Morrison et al. 1999: 106). They focused on the information delivery function of the Web, neglecting its abilities to connect people, educate potential 22 Tourism Recreation Research Vol. 29, No. 3, 2004

9 customers, and promote the total wine tourism experience. There is substantial scope for improving the marketing performance of these Websites particularly with the five marketing strategies. Segmenting the market: Contrary to a common perception in the industry, small wineries can never be everything to everybody. The mass-market view needs to change by converting from an undifferentiated to a segmented marketing strategy (Tzimitra-Kalogianni et al. 1999: 885). Therefore, a small winery Website should clearly identify different wine and wine tourism segments. These segments may include home vintners and brewers, wine lovers, wine-specific tour groups, general tourist groups, families, and even international visitors. The Web has provided small wineries with an opening to the global marketplace for wine tourism and they should capitalize on this advantage to broaden geographic market coverage. Identifying target markets: Small wineries need to focus on the group of customers that truly appreciate the products and the total experience of a winery tour. These visitors usually spend money during their trips, which subsequently increases the winery earnings (Getz 2000: 9). The inclusion of interactive functions such as registration, discussion rooms, and virtual wine clubs on Websites will help small wineries identify these customers and understand their needs, wants, and planned activities. Additionally, online customer surveys should be incorporated to collect profile data on site visitors. These data will assist wineries in providing tailored information to targeted customers. Nurturing guest relationships: To develop and retain market share, small wineries need to establish personalized relationships with their visitors (Fuller 1996: 142). Keeping visitors and expanding the customer base can be done through client education. By using the Web, a small winery can provide detailed information on production facilities, knowledge on grape growing and wine making, recipes on food matching with the winery s wine, tips on wine tasting and storage, and discussions on health-related issues. In essence, Website visitors are able to meet the winemakers in a virtual space and subsequently develop a personal bond with the winery. Promoting the total wine tourism experience: It is important that winery visitors get a complete tourism experience encompassing a variety of activities (Beverland 1999; Bruwer 2002; Beames 2003). A Website can act as a planning tool for such trips provided that pertinent information on the key tourist facilities is made available online. The Website can also promote other facilities (such as historical buildings, art galleries, and farm markets) that add value to visitors trips. The Website should reflect the broader tourism resources of the region, e.g., attractions, local festivals, and tourism-related activities. All these features assist in encouraging visitors to plan and become involved in a total wine experience trip. Building partnerships: Success in providing a total wine tourism experience depends on alliances among various stakeholders. The major stakeholders are local tourism businesses (restaurants, hotels, B&Bs), wine writers and the media, tourism organizations, wine industry associations, and other wineries within the region (Beverland 1999: 96). Newspaper articles, view of critics, and press releases on the Web connect the winery with the media and the industry. The networking efforts should also include having reciprocal hyperlinks to various wine and tourism businesses. In certain cases, this may become a catalyst to the development of wine trails in non-traditional wine regions. Conclusions This study explored the marketing strategies and online marketing efforts of small wineries in the context of wine tourism development. The significance of this research is threefold. First, the study articulated five marketing strategies for small wineries and the role of the Web as a relationship marketing tool within these strategies. Second, the study developed Website evaluation criteria and an instrument to measure the effectiveness of small winery Websites from multiple perspectives. Third, the instrument was empirically tested upon a sample of small wineries in Indiana. These small wineries have developed Websites with adequate technical quality and user friendliness. However, these Websites have not been readied for visitors looking for the total wine tourism experience; nor have they fully implemented the five basic strategies for online marketing identified in this study. In particular, these sites have not capitalized upon the Web s unique interactive capabilities. The needs and concerns of Web users, winery visitors, and industry partners were insufficiently addressed. It is evident that a majority of these small wineries have yet to fully realize the Web s potential benefits as identified in this research. The use of the Web by these small wineries can be described as being at an early infancy stage. Their Websites are functioning as information transmission vehicles and could be characterized as electronic versions of print materials. Judging by their Websites, most of the small wineries in this study could thus be classified as beginners in Web applications. In the future, these small wineries should employ the Web as a dynamic marketing tool in support of wine tourism Tourism Recreation Research Vol. 29, No. 3,

10 development. This means that they should fully integrate and apply the five marketing strategies in the online environment. The suggested critical success factors for Website design can be of great assistance in effectively implementing these strategies. By capitalizing on the Web s interactive capabilities, small wineries will reap substantial benefits while efficiently building relationships with customers and industry partners. This exploratory study tentatively addressed the marketing issues faced by small wineries in wine tourism development. It is the first known attempt to identify evaluation criteria for Website effectiveness among small wineries. The measurement perspectives and critical success factors could be the foundation for a set of industry benchmarks. However, the findings of this research cannot be generalized to other wine-growing regions due to the sampling approach. The inter-rater reliability of the instrument was not very high, indicating that some items need further refinement. Future studies can test the instrument in two ways: measuring small winery Websites in other regions or evaluating the Websites of medium or large wineries. The instrument can then be modified and standardized so that it may become a universal tool for improving the online marketing and wine tourism development by wineries of different types and regions. Future studies may also identify other and more detailed marketing strategies for small wineries. References ANDERSON, N. (1999). California and the West: Battle Brews over Online Sales of Alcohol. Los Angeles Times. June 14: 3. BEAMES, G. (2003). The Rock, the Reef and the Grape: The Challenges of Developing Wine Tourism in Regional Australia. Journal of Vacation Marketing 9(3): BEVERLAND, M. (1999). Old World vs New in Wine Tourism and Marketing. 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