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Yellow-tail’s big mistake

July 8, 2009

Think about the products that you buy off a TV ad.

Fast-food burgers. Check. TV’s with big colorful displays. Maybe. Wine?

One of my favorite wine brands, Yellow-tail, just announced a major new push in TV advertising to help the brand combat a new entrant into it’s playing field. The makers of two-buck chuck will now launch a $2.99 aussie special love-marked as 3-dolla koala…

Really? If I was the maker of Yellow-tail, I would RAISE MY PRICES. Wine is a premium product. I don’t purchase Yellow-tail because of it’s price point. I purchase Yellow-tail because it’s pretty damn good. For a 6 dollar bottle, I can enjoy it just as much as a 12-15 dollar bottle.

And if you are going to try to fight a competitor, is TV really the place to do it? The company spent only 4.3 million dollars last year on advertising. The most it’s ever spent is a little north of 10 million (according to AdAge magazine). $10 million bones isn’t going to do much, even if you dedicated all that to a TV campaign. Wouldn’t you be better off buying up more end-caps in a retail environment, or pushing Yellow-tail sponsored face-book parties?

At what point will this happen? When will the first class of newly-minted MBAs to get marketing gigs go outside the box with social networking and the wonderously cheap advantages it offers? I’d argue that Yellowtails primary consumer is probably younger (watching less TV), probably has enough money to enjoy wine (badge-craver) and probably would appreciate a little more class than a two-buck chuck variety. I’m just saying…

If you’ll excuse me, I’m going to search for a new Australian wine in the meantime…

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