Wine With Spirit
Winetech that produces & sells bottled emotions, creating a community of wine entrepreneurs.
|Food & Beverage Mixed Digital/Non-Digital Mixed B2B/B2C
|14 Apr 2011
Wine With Spirit (WWS) is a Winetech company with the mission of enotaining the world, pairing innovation in the way we produce, sell and drink wine with the experience of a centennial industry. WWS wines are already present in several countries.
Creators of Enotainment, a universe of fun, sharing and interaction, our oenological irreverence leads us to study people, vineyards and flavours to find the perfect wine for each moment.
It is supported by Lyfetaste, a proprietary distribution platform laying on an intelligent algorithm and aimed at entrepreneurs who want a profitable business a click away, combining the power of e-commerce and affiliate marketing and coming as a disruptive alternative to traditional distribution, closing the innovation cycle and giving us the power to control brand positioning and profit margins.
WWS brings a new way of consuming Wine, selling through its own innovative distribution network outside of present traditional distribution channels.
1) A NEW WAY OF PRODUCING WINE: our innovative proprietary production model identifies consumer needs (moments and emotions) and takes that information into the vineyard to make high quality wine that meets those needs. We shifted the production process away from the vineyard to the consumer, detached from land or property. Our oenologist continuously searches for the terroir with the adequate profile to produce a high-quality wine that suits the moments and emotions our ethnography team identified.
2) A NEW WAY OF SELLING WINE: Lyfetaste.com, our innovative proprietary digital distribution platform laying on an intelligent CRM responsive algorithm, allows anyone to easily become an Entrepreneur and have his own business with a small initial investment (from €30 to €3.500 with access to benefits from 15% to 50%). These entrepreneurs take advantage of technologies that are usually only available to large companies, including logistics, invoicing and training systems, thus avoiding the burden of dealing with these aspects. It has changed the lives of hundreds of people that became Lyfetaste affiliates in the last 9 months, gaining a new source of income.
3) A NEW WAY OF DRINKING WINE: our wines are linked to emotions and moments and we simplify consumers lives worldwide by helping them to choose the right wine for the right moment. Additionally, so that the experience is fully extraordinary, we have an easy to use purchasing platform where they can buy wine according to those emotions and moments and have it delivered across the world. Along with the great oenological experience of tasting a high-quality wine that fits the occasion, consumers experience Enotainment, enjoy the irreverent and attractive design of our bottles and interact and share all the emotions and pleasure of drinking a quality, fun wine.
Substantial accomplishments to date
Our innovation DNA has been present since day one. Focused on the development of our production to consumption innovation cycle, we shifted the traditional core of the production process from the vineyard to the consumer and created enotainment. In 2015, we started developing Lyfetaste.com, our proprietary digital distribution platform that lays on an intelligent CRM responsive algorithm, soft-launching it in 2016 and closing the innovation cycle.
ONLINE AFFILIATE SALES
WWS monetisation strategy lays on revenues coming from Lyfetaste.com, our proprietary digital distribution and affiliate marketing platform.
Lyfetaste’s business model is based on the idea that each Lyfetaste’s affiliate is an entrepreneur that wants to manage his own business and that by expanding the affiliates network we create a virtuous circle that increases buzz and traffic and potentiates B2C sales.
When subscribing for an affiliate pack, with prices ranging from 30 € to 3.500 €, the affiliate receives his pack at home and has access to several benefits such as:
- His own online store with integrated invoicing and logistics systems for the whole EU
- Commissions on his team’s sales and discounts on online purchases ranging from 15% to 50%
- A back office with sales and promotion tools
- Continuous training
- Support from our back office team
- Leads generated by the digital campaigns promoted by WWS, distributed according to the criteria defined in our proprietary algorithm.
Lyfetaste has had over 1.000 registrations since its beginning (only in this pre-launch beta phase). From these, the paid registrations had an average subscription value of around € 300. These subscriptions started in the Portuguese territory and are now spreading throughout Europe. We hope to reach the end of the year with a network of around 2500 affiliates, generating a significant part of our 2016 income from this platform and forecasting an exponential growth over 25000 affiliates for 2017.
The remaining part of our income will still come from our export business distribution model for key clients in strategic markets such as Japan, USA and Poland. Our goal for 2017/2018 is to broaden the scope of Lyfetaste.com as a distribution platform for countries outside of Europe and to bring these clients into the platform.
Use of proceeds
1) 60% of the proceeds will be used to strengthen and potentiate the digital platform by further developing Lyfetaste’s intelligent algorithm and technological infrastructure in reporting, backoffice, logistics, transportation and IT equipment. This will strengthen the platform to cope with the strong demand we already experience and the exponential growth forecasted for the end of 2016 and 2017.
2) 40% of the proceeds will be used to invest in world expansion of the network (firstly focused in the EU) with targeted marketing campaigns, training and mobilisation in specific EU countries aiming at the duplication and exponential growth of the network. This will also include the translation of the platform in additional languages and the logistics infrastructure optimisation by setting out warehousing spots in strategic sites. The launch of Spots With Spirit, a network of branded franchised flag stores in key locations, is also included, with two main goals: increase brand awareness and potentiate affiliates’ recruitment.
The company has €551,217 outstanding loans to banks, shareholders and other financial providers, however none of the proceeds of investment are intended to be used to repay this.
WWS is a global project. As such, it wants to bring to the world a different approach on living the wine. From Portugal to Europe and outside Europe, the progressive approach in terms of Target Market will be the same:
1) Approach fashionable and cosmopolitan social drinkers with a young spirit, no specific technical understanding of wine, innovative and more open to adopt an Enotainment approach, enjoying new experiences and valuing a good quality wine at a reasonable price.
2) Approach consumers with a vocation to evolve to more classical wine consumption, leveraging on reputation, quality of the product and originality of distribution.
This profile was the result of a thorough ethnography research which, along with the identification of wine consumption moments and emotions, was the starting point for our brand building and for the design of our wines profile.
As we closed the innovation cycle with the launch of Lyfetaste, our proprietary digital distribution platform, we have added another profile layer to our target market, i.e., our AFFILIATES’ NETWORK, and we have identified four main categories into which we can divide this layer:
1) Millennial Entrepreneurs: dynamic young people that want to earn an extra income for their spare time activities and are highly engaged with internet and social networks.
2) Housewife mothers: active women that have some spare time between leaving and picking up kids at school, want to have a more active role in society and earn some extra money of their own.
3) Unemployed active people: people that lost their jobs due to last years’ recession, are too young to stop working and considered too old to fit in an organization, are valid and active and need to earn money.
4) Retired active seniors: people that retired after a long career in an organization, are in their 60’s or early 70’s, are still healthy, active and valid, feel lonely and useless at home and want to be part of a community that keeps them active and occupied.
These were the foundations of our innovative production to consumption cycle.
According to OIV 2012 data, WW wine consumption = 32BN Bottles (USA-3,9BN; France-3,7BN; Portugal-667MN; Japan-400MN). USA will keep leadership during next years w/millennials increasing trend of drinking wine w/meals, France is 2nd and Asia is gaining space.
As to Affiliate Marketing:
- Increasingly more people search for an extra source of income, more autonomy & greater work-life balance, being their own boss.
- 150K people sign up as affiliates WW weekly.
- WW sales approach $90BN.
- WW leaders are U.S. & Japan ($20 to $30BN range) w/Europe steadily growing. -
- 66% of affiliates are between 25 and 44; 14% are in the 45-54 bracket; Seniors > 65 are 5%.
WWS lays its marketing strategy in a triangle with the following vectors:
- “B”-Brand: all our wines have global brands associated to a strong image and bold design so that they can be kept in consumers’ minds. We normally say that “no one should be indifferent to our brands. Either love them of hate them, but never stay indifferent”
- “F”-Followers: we want to create and feed a community of followers. People that know what we are doing, follow our evolution and are identified with our core values
- “S”-Sales: at the end of the day, we must sell our wines and that goal is present in every strategy we design.
At the centre of the triangle we have "C"-Credibility, a very important aspect of all our communication. We want to assure our consumers that when they open our bottles, the experience remains as good as it was until then, i.e., what is inside the bottle is an excellent wine that has won several prizes and awards and is reviewed by the best international wine experts.
Having this triangle as our cornerstone, all our communication is tattooed with these principles that we apply and adapt to the different audiences we need to address, whether they are final consumers, potential affiliates or others.
For that we use diverse platforms, with a significant focus on digital communication. From gaming with our “Story of a Bastardô!” app to social network campaigns, email marketing, Google Adwords and SEO with geo-referencing for specific targeted geographies, we invest most of our marketing budget in these digital tools whether we are targeting at final consumers or affiliate marketers. Also, and most importantly, our innovative proprietary digital distribution platform, laying on an intelligent CRM responsive algorithm, can segment targets and fine tune communication so that it is completely aligned with our goals.
Additionally, we also use specific guerrilla marketing actions and selected events sponsorship to communicate with our target audience.
WWS’s innovative production to consumption cycle is our competitive advantage towards other players in the wine industry.
We don’t produce wine just to go with meals … But we feed relationships with wine!
Being a Winetech, we have an offer and a business model which is unique and has proven initial success.
- Whereas traditional wine producers push their brands to the market based on the need to sell their stocks, WWS shifted the core of the production process from the vineyard to the consumer and studies the market to find out what are the consumers’ needs. Then, it briefs the oenology team to produce wines adjusted to those needs, without being attached to a specific vineyard or land.
- Whereas traditional wine producers market their wines based on the technical aspects of the product, using a language that consumers don’t understand and making wine choosing a daunting process, WWS markets bottled emotions, approaching the market with strong, global and easy to remember brands, with carefully studied visuals and using communication channels that are very close to the consumers (social networks, digital platforms, gaming apps, etc.).
- Whereas traditional wine producers operate on the traditional distribution circuit, having an overwhelming and undifferentiated competition that adds stress to the consumer choice and erodes margins and control on their brands positioning, WWS uses its proprietary digital distribution platform, laying on an intelligent CRM responsive algorithm, to build its own affiliate distribution network and having a consistent alternative to the traditional circuit, avoiding lack of differentiation on the shelf, controlling brand communication, changing the business profitability structure and increasing margins.
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