Al Yang Emily Matzke Mariah Martin

Allie Breunig Emma Olstad Megan Lauber

Amber Dammen Fiona Lynch Micheala Slind
Brock Sullivan Jessica Wendt Molly Hendrickson
Ciera Ballmer Jordan Gaal Sara Griswold
Elizabeth Sarbacker Jordan Ripp Zackary Propst
Ellen Nelson Lindsey Sarbacker Zoey Rugel

Team Leader: Alison Wedig Advisor: Sarah Botham

University of Wisconsin-Madison
2018 Executive Summary
INTRODUCTION MARKET ANALYSIS
Imagine you’re at a party, everyone is laughing and socializing. At Market Trends
dinner, you accept the gracious offer of a glass of wine, but are nervous -- Fifty-seven percent of baby boomers drink wine at least weekly.2
about what that means. You drink slowly, one small sip at a time, doing -- Merlot and Chardonnay are the most popular domestic wines.3
your best to hide the fear. And then it happens. You choke. And not just -- The average household income of Americans aged 55-64 is $90,949,
a little; you choke because the wine has entered your airway; you’re the highest of any age group.4
aspirating. At the very least, it can be a miserable embarrassment; at its -- Baby boomers, more than any other generation, have the time and
worst, aspiration can lead to life-threatening complications.
money to spend on comfort, entertainment and recreation.5
There are two categories -- Eighty-four percent of baby boomers watch television regularly.5

G od
of swallowing disorders, -- Sixty-five percent of baby boomers use Facebook, the most of any
those caused by medical generation.6
conditions, called dysphagia, -- Baby boomers have the most disposable income and account for

l fe
and those caused by the almost 50 percent of retail sales.7
natural process of aging, -- Sixty-six percent of consumers cite a need for influencer content to
called presbyphagia. In be relevant to their unique interests.8
either case, weakened neck -- Interprofessional collaboration between medical and healthcare
muscles make it difficult professionals results in better patient outcomes.9
to swallow thin liquids without the potential for discomfort, choking -- Forty percent of baby boomers aged 55-59 are likely to try a new
and aspiration. Swallowing specialists work with those who face these wine by the glass at a restaurant, rather than a bottle at retail.3
challenges to strengthen and retrain the muscles, but thickened liquids
-- Sixty-five percent of consumers aged 50-80 trust healthcare
are key to long-term comfort. Thickened to a nectar-like consistency, these
professionals with food recommendations and 24 percent of these
liquids flow slowly, giving the muscles time to protect the airway. While
thickening agents can be can be added to most any drink, ready-to-drink consumers trust food- and nutrition bloggers.10
-- The United States Department of Agriculture reports that as many
beverages are preferred, but largely unavailable.
as 41 percent of women and 38 percent of men don’t consume
Thickened alcoholic beverages are among those most in demand. enough protein. 11
Primary research indicates that seven in 10 individuals with swallowing
disorders report interest in the availability of a thickened wine or other
Audience Profiles
alcoholic beverage.1
Charlotte Chardonnay
Founded in 1975, Hiram Hills Winery is an 800-acre vineyard and
winery in Sweetwater, Texas. Hiram Hills grows and produces more -- Age 65; diagnosed with dysphagia.
than 196,000 gallons of wine each year that is distributed within -- Retired orthodontist living in
Texas and throughout the southern U.S. After the recent purchase of Sweetwater, Texas.
a neighboring 200-acre vineyard, Hiram Hills sought a new market -- Dysphagia inhibits her ability to enjoy
opportunity that would generate value-added revenue for the output a glass of wine with friends.
of this acreage. -- Enjoys walks with her husband, plays
The result is Good Life, the first-to-the-market, ready-to-drink, protein- golf and tennis.
enhanced, thickened wine, providing consistent texture, exceptional wine -- Connects with friends and family on Facebook.
character and enhanced quality of life for those with a swallowing disorder.
The introduction of Good Life opens an entirely new market segment
for Hiram Hills that will generate strong producer return. The in-house
marketing team has developed a marketing plan designed to build brand Barry Merlot
awareness and strong returns through year three and beyond. -- Age 57; has age-related swallowing
Sources: 1. Hiram Hills Survey Results. 2. Baby Boomer Wine Consumer Study, Wine Mar- difficulties.
ket Council, 2011: http://bit.ly/2tF4XXi. 3. Wine U.S., Mintel Report, 2016. 4. Selected -- Lives in Dallas, Texas.
Characteristics of Households by Total Money Income, U.S. Census Bureau, 2016: http://
bit.ly/2k2Q0cL. 5. Baby Boomers' Leisure Trends, Mintel Report, 2016. 6. Media Usage -- Retired senior pilot; his wife is a
Survey, Target Marketing, 2017: http://bit.ly/2InVbfd. 7. Retail for the Generations: physician’s assistant. Their annual
How to Market to Baby Boomers, Gen X and the Millennials, V12 Data, 2018: http://bit.
ly/2HmWA4q. 8. Why Consumers Follow, Listen to and Trust Influencers, Olapic, 2017: household income is $165,000.
http://bit.ly/2BuQhwi. 9. 6 Benefits of Interprofessional Collaboration, Education Man- -- Competes in triathlons, golfs and spends time with family.
agement Solutions, 2017: http://bit.ly/2FFDW7A. 10. Food and Health Survey Report,
International Food Information Council Foundation, 2016: http://bit.ly/2DjnUTL. -- Watches the morning news and listens to the radio.
11. Swallow Solutions Clinical Evidence, Swallow Solutions Inc., 2017: http://bit.ly/2Dnu7sY

1
Influencers
Swallowing specialists include the following key influencers:
dietitians, nutritionists, speech pathologists, physicians and
life-enrichment coordinators.
Market Size
It is estimated that overall, six percent of the U.S. population has difficulties swallowing or has been diagnosed with dysphagia.12 A natural
consequence of aging, swallowing disorders are most prevalent after age 55.13 The primary target audience for Good Life consists of consumers
55 and older in Texas and select Florida cities.1 There are more than 400,000 individuals in this demographic.
Market Potential
Baby boomers continue to propel wine consumption, comprising 30 percent of the market category.3 Fifty-seven percent of baby boomers drink
wine at least once a week.3 Sales for functional beverages hit $18.6 billion in 2015 and continue to grow as consumers look for products to enhance
quality of life as they age.14 Primary research with swallowing specialists about patient quality-of-life issues indicates that 70 percent of people
with swallowing disorders have an interest in thickened wine or other alcoholic beverages.1 According to a recent survey conducted by Swallow
Solutions, Inc., a producer of thickened juice beverages, Texans consume the most thickened liquids per resident, demonstrating a strong potential
for Good Life.11
Need for Product
Good Life appeals to baby boomers who have difficulty swallowing and want to enjoy wine. Consumers in this demographic appreciate high-
quality wine, time spent with friends and family and a renewed sense of normalcy. Research indicates that Good Life’s primary audience
consistently asks swallowing specialists about options for consuming alcoholic beverages.

COMPETITIVE ANALYSIS
Good Life enters the U.S. wine market as the only ready-to-drink,
protein-enhanced, thickened wine. The patented thickening technology SWOT Analysis
eliminates the inconvenience of mixing thickening agents into a
beverage. Good Life provides a consistent texture, exceptional wine STRENGTHS WEAKNESSES
character and enhanced quality of life. -- First-to-the-market -- First-to-the-market
-- Protein-enhanced, thickened -- Low product awareness
Direct Competitors Price and ready-to-drink product -- Perception of thickened
Thickeners added to alcoholic beverages (per mixed fluid ounce)
-- Niche audience beverages
-- Company and business -- Lack of understanding
Direct competitors include powdered thickeners, in small canister about swallowing disorders
credibility
and sachet form, which can be added to alcoholic beverages. Good -- Consistent texture and life-enrichment
Life’s competitive advantage is the patented thickening technology -- Sufficient acreage to solutions
that creates a ready-to-drink, protein-enhanced, thickened wine. accommodate production -- Embarrassment in
-- Mitigates saturation in acknowledging a
Slõ drinks $0.06 wine market swallowing disorder

SimplyThick $0.09
THREATS
Thick & Easy Powder $0.07 OPPORTUNITIES -- Weather
-- Partner with other alcoholic -- Crop diseases and pests
Thick it - Thickeners $0.07 beverage manufacturers -- Emergence of shadow
-- Demand for functional products
Thik & Clear $0.09 beverages
Indirect Competitiors Price -- Franchising
Protein-enhanced, thickened non-alcoholic beverages (per fluid ounce)

The only indirect competitor is Swallow Solutions, a protein-enhanced,

ready-to-drink thickened non-alcoholic beverage. Sources: 12. Dysphagia in the Elderly, Gastroenterol Hepatol Journal, 2013: http://bit.
ly/2DpAs7g. 13. Population Distribution by Age, Henry J. Kaiser Family Foundation,
Swallow Solutions juices and teas (swallowing agent) <$0.01 2016: http://kaiserf.am/2Gt32I9. 14. Retail sales of functional beverages in the United
States, The Statistics Portal, 2016: http://bit.ly/2FzupTA.
Good Life (swallowing agent) <$0.01

2
BUSINESS PROPOSITION Price

Strategy Statement
Good Life is the first-to-the-market, ready-to-drink, protein-
enhanced, thickened wine that provides a consistent texture,
allowing those with swallowing disorders to enjoy it with ease. With
exceptional wine character in a standard bottle, Good Life provides
added value to Hiram Hills Winery through a new market segment.

Assumptions
1. Hiram Hills Winery has purchased a 200-acre vineyard, enough
grapes to supply Good Life production for at least three years.
2. Good Life has been taste-tested and approved by consumer Merlot Chardonnay Sip & Share
focus groups for sale and consumption, demonstrating a need
for a ready-to-drink, protein-enhanced, thickened wine. $21.99 $22.49 $37.99
3. Hiram Hills Winery carries appropriate licenses and is able to
legally produce, wholesale, retail and ship this product as a
functional beverage in the U.S. Product Launch
4. Hiram Hills Winery owns the patented thickening technology
SOFT LAUNCH

and wine processes that are Food and Drug Administration- -- Private tasting at winery with Hiram Hills Case Club
approved for use in the production of Good Life wine. members, media and select influencers.
5. Hiram Hills Winery has existing wholesaler relationships for -- Online availability, promotion.
distribution to restaurants and retail outlets throughout the
target regions. -- Sponsor live entertainment, host Happiest Hours with
Wine Wagon at 55+ communities.
YEAR 1

-- Good Life Merlot and Chardonnay standard 750 mL

Goals bottles available at select grocery stores in the Dallas-Fort
Worth-Arlington Metroplex and Hiram Hills tasting room.
Achieve 25 percent brand awareness within the target
market, 15 percent aided and 10 percent unaided.
-- Release Sip & Share Combo: Good Life sold with
YEAR 2

another Hiram Hills wine for 20 percent discount.

Capture 0.5 percent share of the thickening mix market and -- Good Life wines available in restaurants and select
15 percent share of the ready-to-drink, protein-enhanced, grocery stores across Texas.
thickened beverage market.
-- Good Life wines available in restaurants and select
YEAR 3

grocery stores in Naples, The Villages and Fort

Net profit meets or exceeds 2.9 million by the end of
Myers, Florida.
year three.

ACTION PLAN
Product & Positioning
As the only ready-to-drink, protein-enhanced, thickened wine, Good
Life will introduce two varieties, Merlot and Chardonnay, in standard
750 mL bottles. Good Life provides consistent texture and exceptional
wine character, while enhancing the quality of life for people with
swallowing disorders.

3
Tagline: Let’s Be Social
This tagline encourages the target audience to bring Good Life wine to any social gathering, begins discussion about swallowing disorders and
generates consumer interest while raising brand awareness. This serves as the theme that unites the integrated promotional tactics.

Campaign This emphasizes the wine-drinking experience by encouraging the target audience to sample Good Life at branded
Happiest Hour events like concerts, wine walks and other social gatherings. Brand ambassadors will travel with the
HAPPIEST Wine Wagon to Good Life-sponsored events to pour samples and educate the target audience about drinking protein-
enhanced, thickened wine with swallowing disorders. Additionally, Good Life will offer a do-it-yourself Happiest Hour
HOUR Kit that includes wine for sampling, party essentials and information about swallowing disorders. The kit encourages
broad-scale social events that are built around Good Life wine. It will be accessible via online request.

Sip & Share

To incentivize purchase and showcase the thickened wine experience, starting in year two a Sip & Share Combo will
be sold at Hiram Hills Winery and through Wine Wagon appearances. The Sip & Share Combo includes a 20 percent
discount on the purchase of at least one Good Life wine and an additional Good Life or Hiram Hills wine.

SIP & SHARE

ORDER
Red wine.....$4.99
White wine..$4.99
ORDER
Red wine.....$4.99
White wine..$4.99
WINE WAGON
the happiest hour
Personnel
One brand manager and two brand ambassadors, who have experience
with swallowing disorders, will be hired to drive the Wine Wagon, a
mobile advertisement for Good Life. They will manage Happiest Hour
events, collect consumer satisfaction surveys and attend dysphagia-
related conferences. The brand manager will work with the Hiram
Hills in-house marketing team to manage all launches, sales and
promotions.
Earned Media
Strategic earned media initiatives in key channels will tell the Good
Life story, generate an emotional connection and broaden exposure in
each launch region.
Social Media Marketing - Let’s Be Social
Key messaging and relevant content will be posted on Facebook to
raise awareness within the target audience.
Influencer Relationships
TapInfluence will identify valued influencers who will be paid to work
with Good Life to construct and deliver key messages that promote the
normalcy surrounding the purchase and enjoyment of Good Life.
Brand Ambassadors will connect with swallowing specialists who act as
unpaid influencers and network with other key influencers on Twitter
and Facebook using the branded hashtag, #GoodLife.
Trade Shows
Good Life will be featured at select trade shows and conferences to
broaden product awareness, attract retailers and promote sales.
Digital Marketing
The Good Life website will feature an e-commerce platform and educational
materials. It will also feature Good Life’s vine-to-wine story and testimonials
from customers who have tried and enjoy the wine. The Good Life Blog will
establish the Good Life brand as a thought leader in protein-enhanced,
thickened beverages and will feature recipes and food pairings.
Retail Promotions
To draw attention to Good Life and engage shoppers in crowded aisles,
creative point of purchase displays, shelf talkers and hang tags that tell
the Good Life story will be placed in all retail locations.
Paid Advertising and Direct Mail
Good Life will purchase advertisements in regional magazines and on
local television and radio stations in the rollout regions. Direct mail will
be used to raise awareness and incentivize purchase through coupons
and discount codes. Facebook advertisements will further drive brand
awareness and sales.
Awards
Good Life will compete for several awards at World Beverage
Innovation and the National Restaurant Association show. Accolades
will be leveraged to raise awareness, enhance sales and generate new
retailer relationships and consumer interest.
Sponsorship
Good Life will sponsor select golf outings in the target regions and be
featured as a mobile advertisement on golf carts.
Giving Back
Good Life will spend the month of June celebrating National Dysphagia
Awareness Month. Five percent of the month’s sales will be donated to
the Dysphagia Research Society each year.

4
FINANCIALS
Hiram Hills Winery uses the same high-quality grape varieties for Good In years one and two, marketing investments and rapid expansion
Life as are used to craft its signature wines. The only addition in the result in large net losses. These investments will prove both valuable
cost of goods sold is the patented thickening technology at $0.14 per and profitable by raising brand awareness and increasing sales.
bottle. This addition results in a cost of goods sold of $7.15 and $7.39 Accounting for 70 percent wholesale and 30 percent retail sales, by the
for Good Life Merlot and Chardonnay, respectively. The wholesale price end of year three, Good Life will see a gross margin of 23.16 percent
to the distributor is $10.72 for Merlot and $11.09 for Chardonnay. A 30 and a net profit exceeding $2.9 million.
percent distributor margin and a retail margin of 35 percent leads to a
suggested retail price of $21.99 and $22.49, respectively. The cost of Marketing Expenses Year 1 Year 2 Year 3
goods sold for the Sip & Share Combo is $16.04, retailing for $37.99. Print Advertising $292,592 $448,330 $599,204
A saturated wine market and the patented thickening technology
combine to create a use for the additional vineyard acreage and a new TV Advertising $864,000 $1,728,000 $2,592,000

market opportunity. The resulting producer return of $2.9 million adds Radio Ads $217,500 $2,161,500 $2,485,500
significant value without increasing competition in the market.
Digital Marketing $108,400 $110,040 $119,544

Income Statement Year 1 Year 2 Year 3 Trade Shows $10,200 $12,200 $15,200

Primary 750 mL bottles $810,418 $5,331,619 $11,374,539 POP Displays $16,500 $170,000 $162,900

Sip & Share $564,322 $578,221 Hang Tags & Shelf Talkers $12,560.45 $79,718.10 $147,444.20

Online Sales $4,464 $32,052 $64,551 Happiest Hour Campaign

Restaurant Sales $514,555 $957,366 Samples $8,973 $64,426 $129,747

Total Sales $814,883 $6,442,549 $12,974,676 Concerts $50,000 $250,000 $400,000

Thickening Agent $7,929 $42,979 $44,038 Brand Ambassadors (2) $92,000 $96,600 $101,430

Production Expenses $357,029 $1,935,224 $1,982,886 Brand Manager $95,000 $99,750 $104,738

Packaging Expenses $46,442 $251,734 $257,934 Wine Wagon $68,600 $20,000 $30,000

Total COGS $411,400 $2,229,937 $2,284,858 Golf Cart Stickers $2,160 $3,240 $5,400

Gross Profit $403,483 $4,212,612 $10,689,818 Golf Cart Sponsorship $25,200 $37,800 $63,000

Operating Expenses $400,000 $532,000 $593,000 Coupons $11,328 $70,746 $131,626

Marketing Expenses $1,905,606 $5,427,437 $7,188,663 Happiest Hour Kits $2,565 $17,787 $6,414

Total Expenses $2,305,606 $5,537,437 $7,781,663 Dysphagia Awareness $3,395 $26,834 $54,061

Net Profit/(Loss) ($1,902,123) ($1,324,825) $2,908,155 Monitoring & Measuring $25,456 $30,456 $40,456

Percent Profit (233.42 ) (20.56) 22.41 Total Marketing Expenses $1,905,606 $5,427,437 $7,188,663

MONITORING & MEASURING

25% BRAND AWARNESS MARKET SHARE YEAR 3 NET PROFIT
GOAL: 15 percent aided, 0.5% thickening mix $ 2.9 million
10 percent unaided 15% protein-enhanced, thickened

Survey target market at launch. Reassess Launch strategic marketing plan in Track monthly, quarterly and year-
HOW? marketing strategies. Track social- and the target audience. end sales reports.
earned media. Net Promoter Score.

Investigate expansion into new market Expand marketing budget and Launch new wine varieties, bottle
IF MORE segments such as assisted living extend geographic reach. sizes and marketing campaigns.
facilities.

Improve education tactics. Enhance Refine marketing strategies, focus Evaluate pricing structure, expenses
IF LESS earned- and paid media efforts, redefine on dysphagia awareness, points of and intensify education efforts.
need for product with influencers. differentiation and experiential sales.