Advertising | The Barefoot Spirit

The Novel Coronavirus Spotlights Opportunities for New Consumer Packaged Goods

Michael Houlihan & Bonnie Harvey — Wed, 22 Apr 2020 17:00:37 +0000

It’s clear that the direct-to-consumer business got a big shot in the arm from the shelter-in-place orders that many of us are now living under.

Even though these restrictions are temporary, they have trained many new consumers to use online services to order their CPGs (consumer package goods) and have them delivered. This includes food, beverages, cosmetics, cleaning supplies and other packaged goods.

Many new on-line shoppers will never go back to physical shopping. Once they discover the convenience of home delivery, they will rely on it permanently.

What does that mean for CPG brand builders? Online consumers will tend to stick with the brands they know. They will not be as likely to stumble upon a new brand or make a notion or an impulse buy.

This means, the older, more established brands will get stronger as more and more shoppers go to “same-as-last-time” repeat ordering. Sure, there will be more paid pop-ups and paid side-bar advertising.

To read the complete article, please visit The Business Journals

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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10 Questions Our Clients Ask

Michael Houlihan & Bonnie Harvey — Thu, 17 May 2018 17:49:57 +0000

Our clients come to us because of our credentials as the founders of the largest wine brand in the world. They want to know how we began (in our laundry room), how we were financed (we assumed a debt which we traded for wine and bottling services), and how we overcame the challenges of personnel management (we paid for performance).

All that and more is covered in our New York Times’ Best Seller, The Barefoot Spirit, How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. It contains the lessons we learned told in a humorous business adventure story. It answers the top 10 questions start-ups and business owners need to know on their way to success.

And we are really excited to announce that we are currently recording it in an audio book! Like the paperback, it will be fun. Instead of having someone read it to you, we have engaged a live troupe of actors who will dramatically act it out for you. You will enjoy the unique format and learn from their interactions. We will be releasing it in the fall!

So, here’s the short list of a few of our favorite answers to the question – “How do I…”:

1. Start a business without financing?

Trade for goods and services
Use your buyers as banker by offering quantity discounts for cash
Use your supplies as bankers by earning extended credit and terms
Pay for performance rather than for attendance
Use the assets you already have, such as a spare room, family members, or contracted services

2. Start a business with no experience in the industry?

Ask a lot of questions
Work for someone who is already doing what you want to do
Talk to everyone who will be working with your product or service
Use your suppliers and vendors as teachers

3. Find, hire, train, and keep good people?

Look for hustle and integrity
Overkill on orientation
Give them appreciation and time off
Pay for performance

4. Get my product to the market?

Start in a small area to learn your lessons
Offer samples, tastings, etc.
Ask the buyers what they need
Get the reputation, even in a small area, of being a “Hot Mover!”

5. Give my brand a soul?

Identify what your brand offers its users that they love
Identify what your brand and your company stand for beside the mercantile product you are selling
Work with your community on your shared goals
Be inclusive and earth-friendly
Treat your people right

6. Build a brand without advertising?

Donate your products or services to community fundraisers
Build brand advocates who will sing your praises to all they know
Attend farmers’ markets or other social events where your customers can be found
Do many in-store demos

7. Think outside the box?

Put yourself in the other guy’s shoes in every position of responsibility
Meet regularly with everyone on your staff, with your suppliers and your buyers and ask them what their challenges and goals are
Be open to new ideas, especially those that seem to be contrary to your own
Practice “Know-the-Need” instead of “Need-to-Know”

8. Get the most out of my people?

Use performance-based compensation and share the wealth
Share information freely; share your goals, challenges, and opportunities
Give employees your respect by asking for their feedback and advice
Acknowledge their successes in writing and copy the entire staff

9. Use outsourced services?

Communicate your needs clearly and in writing
Pay only if your project has been completed to your specs
Oversee their work on your project to assure quality control
Look for long term relationships

10. Sell my business?

Talk with a business broker who recently was involved in a sale or purchase of a business like yours
Put your peanut in front of the elephant
Work towards the metrics required to become an acquisition target and ultimately monetize the brand equity you are building
Organize your filing system according to your future acquirer’s due diligence

As advisors, we help our clients identify and move toward their goals. We learn about their business, their challenges, and their opportunities. Then we meet with them regularly to help them stay on track. They get the many benefits of our 20 years growing the Barefoot Wine brand. We learned a lot of lessons – most of them the hard way!

You too can benefit from the knowledge we gained without having to go through the time, mental anguish, and money that it took us. Think of it as saving $300,000 or more on mistakes and 3 years or more in wasted efforts. Here is to your success!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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2 Reasons Why Doing It Yourself Can Give You a Big Advantage

Michael Houlihan & Bonnie Harvey — Thu, 20 Oct 2016 17:00:33 +0000

The advantages of starting a business when you are undercapitalized are priceless. They can force you to be creative, resourceful, and frugal. They focus your attention on sales to achieve a positive cash flow quickly, before you go out of business. They can save you from squandering cash on expenses that don’t produce income.

But there’s another big advantage to being undercapitalized. It often requires that you do many of the jobs yourself because you simply can’t afford to hire someone to do it. Sure, there’s a big learning curve, and in many cases, the job could be done much better and faster by a pro, but sometimes you really have no choice. So what are the benefits here?

Evaluation. When you must do the job because your finances are spread too thin, you will certainly ask the question, “Is this absolutely necessary?” And, “Is there some other way that we can achieve the same results?” With big capital and a generous “burn rate,” you might just throw money at the problem thoughtlessly as if to say, “This is just the way it’s done, right?” But is the job really required, or are you just buying into what others say you must do?

At Barefoot, we were told to advertise; spend tons of money on ads to make Barefoot Wine a household word. We simply didn’t have the bucks. But still we knew we had to get the word out. It’s just that we had to do it ourselves, and inexpensively. It also had to be very targeted and effective because one way or the other it was still going to cost us. But we had only a fraction of what was necessary to get traction with conventional advertising, making that an unviable choice.

So when a local neighborhood group asked for a donation for a kids’ after-school park, we gave them product rather than cash. Sales in their immediate area took off! Because we were broke and had to do the advertising (and everything else) ourselves, we noticed everything that worked, even off the wall stuff like this. We tried it in another neighborhood. It worked there too! In fact, it worked so well, that even when we could afford to buy advertising, we stuck with what we called, “Worthy Cause Marketing.”

Experience. When you are forced to do the job yourself, later when you can afford to have someone else do it, you are less naïve. You recognize quickly when you are being taken advantage of, and are less likely to put up with excuses. You also gain the respect of the folks you hire because they understand that you know the job because you did it!

When we started Barefoot, we couldn’t afford a salesperson. So Michael did all the sales. Talk about hard knocks! It took him years to become proficient at it. But when we did hire salespeople, they quickly learned he had done it himself.

What if we had been well financed? We would have hired salespeople without really understanding their job firsthand, and without knowing if the excuses were real or not. We would have spent tons on conventional advertising and it would have been less effective than what we discovered out of necessity.

Sometimes desperation is just the advantage your start-up needs to disrupt the established patterns that can waste your precious time and money! Here’s to the glorious benefits of being underfinanced!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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4 Reasons Why Social Responsibility Is Profitable

Michael Houlihan & Bonnie Harvey — Thu, 17 Mar 2016 17:00:36 +0000

We feel compelled to weigh in on the sensationalized debate over whether or not your business needs a social mission. Entrepreneurial pundits like Kevin O’Leary are saying no, “Profit is the Mission.” Basically the argument says so much is required to keep your customers happy, you don’t have time to pursue a social mission. We think this is a very short-sighted view. Long-term profits require a social mission.

This debate is exacerbated by simplistic thinking on both sides. As much as we would like to think that companies would choose a social mission out of the goodness of their hearts simply to make the world a better place, the fact is it’s just good business! Here are 4 solid business reasons why social consciousness is profitable in the long term:

Saves on Advertising. We chose social missions for our brand because we simply couldn’t afford commercial advertising. And after some success with what we called Worthy Cause Marketing, we continued with it as our only form of advertising. It was more efficient and targeted, and created more customer loyalty than commercial advertising. It gave our customers a social reason to buy our products rather than a mercantile reason. Sure, we wanted to make the world a better place but we didn’t have the luxury of doing that unless we were selling! How much money was saved as a result of supporting worthy causes?
Creates Brand Advocates. We took an expanded view of our responsibility to our customer. We not only provided products at the price, quality, and convenience they wanted, but we supported the groups and causes important to them. We viewed our customer a not just a consumer, but as a living, thinking, reasoning, and feeling human being with real social interests. Once they witnessed our support for their social causes, an interesting effect took place. While they could choose any product in our category, they chose ours. They also became advocates for our brand because they saw us a partner for their cause. So they passed the word to friends, neighbors, and colleagues. What is the business advantage of that kind of advocacy?
Reduces the Cost of Turnover. Soon we discovered that we had reduced turnover, which is the number one hidden cost of doing business. Turnover not only costs the advertising for a replacement, but the vetting, interviews, orientation, training, false starts, and all the lost business resulting from disrupted relationships. When we began to embrace social causes, our people developed a sense of pride working with a company that stood for more than the products it produced. Now they could help make the world a better place – at work! This gave them a social reason to stay loyal to our company. How much is reducing turnover worth?
Consumers Increasingly “vote” for Socially Responsible Products. The company that mistreats its employees and the environment is being progressively exposed by the new transparency. Your competitors want to “dig the social dirt” on your practices to distinguish themselves in your customer’s mind. Today’s customers know they are “voting” with their brand choices. Don’t set yourself up to lose their vote in the future. Think of social responsibility as an insurance policy. What is the cost of losing customers?

So it’s not a simple argument of “evil” guy versus good guy as the Inc. Magazine headlines. It’s more like wasteful guy versus prudent guy. There are just plain good and profitable reasons for taking an interest in your customer’s causes. Looking at the bigger picture can go a long way to improving the bottom line.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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7 Ways to Reduce Your Need for Capital

Michael Houlihan & Bonnie Harvey — Wed, 11 Nov 2015 17:28:09 +0000

Happy Veterans Day, everybody! Today, November 11, 2015, it is our honor and our pleasure to speak at the first annual Vets Rock event at Mohegan Sun in Connecticut. What would we share at this keynote event with more than 100 veteran-owned businesses that would be of the greatest value to them? What lessons have we learned, often the hard way, in our own business experience that they could use to improve their own businesses – tomorrow?

Of all the challenges aspiring, launch and growth-phase entrepreneurs face, the top has to be capital, or should we say the lack of it. The key to success of any business is simply making more money than it costs you to stay in business. So we decided to share how to reduce the need for capital in the first place.

Here are 7 tips that worked for us:

Discover Your Hidden Assets. What do you already bring to the table, and what can you find if you look with expectant eyes? Discover how you can repurpose something you have for something you need. Be resourceful. Solve problems creatively. We used a door for a desk and a laundry room for an office.

Identify and Work With Your Strategic Allies. Those who succeed if you succeed are your strategic allies. Learn how your products or service benefit your customers, suppliers, and the community. Find a small company you can work with that is poised to grow, and grow with them. We provided a small company called Trader Joe’s with a fun California product and together we spread across the country.

Use Your Suppliers and Buyers as Bankers. Treat your suppliers like business partners. Enter into long-term contracts so they can see a future with you. Keep them up to date on your progress, challenges and opportunities. Notify them in advance when you will be late on a payment, and show them how you will get current. Then ask for extended credit to expand your business and increase your purchases from them. We offered our buyers quantity discounts for cash.

Pay for Performance. Discover the metrics that demonstrate sales, growth, and profitability, then reward your people for achieving those goals. Keep the bonus period short term, such as every month or every quarter to keep the goals active and achievable in their minds. We matched our people’s 401K either 50%, 100%, or 150% based on quarterly achievement.

Outsource (Locally) Everything but Sales, Quality Control, and Accounting. Don’t invest in a ton of bricks and mortar or other overhead that require monthly payments whether you have sales or not. Try for just-in-time production and avoid holding large inventories. We outsourced production but held our producers to a set of quality specifications in a contract.

Reduce Turnover. The #1 hidden cost in any business is turnover. It can result in the loss of your company knowledge, supplier relationships, and even customers. The key is to hire, orient, train, and compensate properly. If you are paying your people right, the producers can’t afford to leave and the non-producers can’t afford to stay.

Reduce Your Cost of Advertising. Think about your customers as belonging to a community which is interested in more than your product. That community has needs and cause-based groups that work to satisfy those needs, such education, conservation, human rights, and support of the arts. By supporting community fundraisers and non-profits , we gave their members a social reason to buy our products.

These 7 tips can help anyone who runs a business, and we are happy to give back to our vets by sharing these lessons with them today, Veterans Day, 2015.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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The Customer Experience is Trumped by the 800 Number Experience

Michael Houlihan & Bonnie Harvey — Thu, 05 Mar 2015 19:15:03 +0000

You’ve done everything right as a producer. You’ve given your customer compelling advertising, stellar reputation, and third-party endorsements to put them in a positive state of mind even before they purchase your product or service. They anticipate a rewarding customer experience.

Then you’ve delivered that experience. Your product was in stock, priced right, and provided exceptional value. But then, something went wrong. Maybe it was a quality control problem. Maybe it was the way the customer was treated by a clerk. Or maybe it was just a misunderstanding. So they called your 800 number to seek a solution.

All that great work you and your team have done to create exceptional customer experience is suddenly at risk. Your customers don’t judge you so much by how well you do when you are doing good as by how well you do when you’re doing badly.

But when you’re doing “badly” who do they call? They call your customer relations people, and how your customers are treated on that critical phone call can make or break their opinion, their loyalty, and their message to friends, relatives and colleagues. Because they have been advocates for your brand, now their personal reputation is on the line and they feel obligated to spread the word about how you handled their problem.

How your customers are treated begins with how you treat your Customer Relations people. Do you see them as “Customer Care” or “Complaint Resolution?” Are they relegated to a lowly status near the bottom of the organization, or are they elevated as the source of current feedback from the customer to keep your products and services relevant?

We think Customer Care is where the rubber meets the road. Complaining customers are gold mines of information and the perfect opportunity to turn disappointment into advocacy. They are already fans and believe that their favorite brand will make things right. Remember, for every one customer who takes their precious time to complain, there are thousands who don’t. They simply buy your competitors’ product. The Customer Care Department makes the most powerful lasting impression, and the customer information they collect should guide your production and marketing people.

So what is your complaining customers’ 800 number experience? Do they spend what seems like an eternity making selections, being shunted around, and repeatedly giving personal data to a recording that never gets to the live representative? Are they abused by long wait times, wrong transfers and drop offs? When we call an 800 number with a complaint, we hope they really are recording it and more importantly, top management listens to not just the dialogue, but the transfers, holds, and drop offs. Chances are you’ll never hear how many of your customers get so frustrated that they just give up because that is not measured.

But when a real person, who understands how important the call is to their company, takes it on the second ring, the results can be much more effective than any advertising. For one thing, you know the caller is outspoken. For another, you know they have already chosen your product. If they are treated like VIP’s, they will sing your praises like never before. And nothing speaks more loudly about a great customer experience than the way your company handled their problem.

Dollar for dollar we think your investment in quick response telephony, adequate call center staffing, generous credits, and solid lines of communication from customer service to production and marketing are your best investments in a positive customer experience.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Worthy Cause Marketing Makes Dollars and Sense

Michael Houlihan & Bonnie Harvey — Sat, 17 Jan 2015 19:30:31 +0000

What we dubbed Worthy Cause Marketing back in 1990 was really an outcome from a serious business problem: How could we get the word out about our products when we had no money for commercial advertising?

We discovered something very important when we got a call one day from a neighborhood non-profit looking for a donation for a kids-after-school park. We had no money for a cash donation but we did have product which we donated for their fundraiser. As a result, the membership of that non-profit was able to sample our products and saw that we supported their cause. Sales in the nearby retail account took off.

When we finally put it together that sales were up in that store because we supported the local neighborhood fundraiser, we decided to try it in another neighborhood. It worked! Then we realized that we didn’t have to give up our true passion which was conservation and civil rights just because we were in business. We realized that we could support worthy causes that were worthy of us, our brand, and our products as a way of getting the word out in lieu of costly advertising that we couldn’t afford anyway.

In fact it worked so well that even when we could afford commercial advertising we did not do it. And we discovered something else that was very important yet subtle. The members of the non-profits we supported not only selected our products when they had a choice, but they actively promoted them to friends, family, neighbors and co-workers. They also promoted our products through their networks by thanking us for our support.

We began to realize another important lesson. Part of the discovery process that makes people want to share their discovery is not only the knowledge that the product is great, but also and most importantly, that the person they are turning on to the product couldn’t have known about it any other way. They believe this precisely because they have seen no commercial advertising. They know they will be gratified when their friend says, “Thanks for the great recommendation! We tried it and you were right. It’s great!” So now we had a business reason not to advertise, because the folks who were spreading the news by word of mouth would simply stop if they saw the commercial ads!

So isn’t this just another type of cause marketing? Not quite. The biggest distinction we can make between Worthy Cause Marketing and Cause Marketing is that within Cause Marketing, the support for the cause is advertised to the general public in the hopes that the general public will chose your brand because you are doing good. In Worthy Cause Marketing however, the support for the cause is not advertised to the general public, but is only known to the non-profits’ members and their supporters.

In both cases the decision to support the cause is a sincere intent to help that cause achieve its goals, but the process differs substantially. We have found that Worthy Cause Marketing creates a loyal following when practiced year after year on a long-term basis.

We were honored to be the keynote speakers today at the prestigious Pepperdine University in Southern California at the Margaret J. Weber Distinguished Lecture Series. Given the school’s admirable commitment to social entrepreneurship, we thought no topic could be more appropriate than Worthy Cause Marketing, a driving influence behind the success of the world’s largest wine brand. We hope that our demonstrated success will encourage start-ups, growth-phase and established companies to use Worthy Cause Marketing in their own businesses. We believe they will see, just as we did, that doing good is just plain good business!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Franchise Vs. Mom-and-Pop Business: A Guide to Smart Investment

Michael Houlihan & Bonnie Harvey — Fri, 01 Nov 2013 17:26:04 +0000

You’ve got the funding, and you’re finally ready to launch your own business. The one lingering question that remains is whether you should open a franchise or an independent shop. There are pros and cons to both sides, but you’ll need the following points to help you decide which decision is right for your situation.

An Established Brand. Brand recognition is incredibly motivating for shoppers. By flying the franchise flag over your car wash or other business, you may be able to draw in more customers than you would with an independent concept. Investors should think of both the positives and negatives of working with an established brand. In most cases, increased brand awareness is a positive thing, but if the brand has been blemished in recent years, becoming affiliated with it may do you more harm than good.

Novel Ideas. When you create your own company, you have a large outlet for your creativity. You don’t have to worry about whether or not a certain product or service is allowed under your franchise model. If you decide to open a car wash, for instance, you can invent your own methods and techniques to make your clients’ cars as clean as they can be. On the flip side, however, you will also have to invent all of your own ideas from the company name to the company logo. Luckily, there are organizations in place that can help you with that. Logo Garden, for example, helps independent entrepreneurs create logos. Other companies can be used for website design, advertising and key development themes.

Franchises May Be Recession-Proof. Entrepreneurs often become interested in launching their own company in the midst of a recession. Due to lost jobs or pay cuts, prospective business owners want more control over their earnings. Starting a mom-and-pop business during an economic downturn can be scary, but opening a franchise during this same time period can be incredibly liberating. According to Forbes, a recession can be a bonanza for a franchise. The combination of relatively cheap real estate and better locations give franchise entrepreneurs the edge that they need.

Cost. The ultimate factor in your decision may be the cost of your project. If you opt to take the franchise route, you will have to pay a franchise fee, but overall, your costs may be cheaper than opening an independent shop. Franchises have greater purchasing power than their independent counterparts. Because franchises purchase in bulk, you will get on discount on all of your products and supplies.

Potential for Success. If you like to control your own potential for success, an independent operation may be better for you, but if you want to rely on a concept that has a proven track record for success, you may want to opt for a franchise. In addition to providing you with a model of success, a franchise may provide you with additional training and other support.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Why Worthy Cause Marketing Works

Michael Houlihan & Bonnie Harvey — Sun, 14 Jul 2013 02:35:37 +0000

We are often asked, “What’s the difference between ‘Cause’ Marketing and ‘Worthy Cause’ Marketing?” The most obvious difference is the intention of the marketing. With Cause Marketing, the emphasis seems to be on creating an image that your company is sponsoring a particular non-profit. The intention is to show the general public that you are helping a cause that everyone agrees is beneficial. Many non-profits rely on these sponsorships to continue to do their good works. The “selling” of sponsorships is necessary to support especially large non-profits, and the big companies that pay for these sponsorships deserve our admiration.

But what about the start-ups and struggling entrepreneurs who can barely make ends meet? How can they, with limited funds, support their chosen non-profits, and at the same time create sales of their products? For smaller companies, their support is, after all, a marketing effort.

The answer we found is Worthy Cause Marketing. It’s not aimed directly at the general public as if to say, “Look, we’re doing our part, you can feel good about buying our products because we are the official sponsors of this or that non-profit.” It’s more about addressing the individual members of the non-profit, with the hope that your efforts on the non-profits’ behalf will give them a social reason to buy your products and services. Wouldn’t you prefer to support the companies that support your causes?

But if you are a start-up or a small struggling business, you are probably under-capitalized and can’t afford cash donations, let alone big sponsorship fees, or even an advertising budget. With your limited funds, how can you get noticed by the right audience who wants your product or services?

Our own company was grossly under-capitalized, just like most start-ups, and incidentally, like most of our clients and the entrepreneurial students we talk to today. We faced the same dilemma that they do. “How can we get the word out to the folks who are most likely to buy our product or services in the most efficient way?” You realize that you can’t buy a sponsorship, but you want to help and you need customers.

Worthy Cause Marketing provided an answer. We could afford to donate products and services. We could afford to take the non-profits’ message to the street in the form of signage on our products in a venue they could not otherwise access: the stores. We could afford to send our employees in to help them set up and tear down for the fundraisers. We could afford to engage in their functions and events. We became more than just sponsors – we became partners in their causes.

We chose non-profits and community fundraisers that we, and our product, resonated with. They were worthy of us, our time, and our products. We gave their members a social reason to buy our products, and we were efficient because we helped the groups who were the most likely to purchase our products.

In the 20 years of growing Barefoot Wines, we never paid for commercial advertising. We relied solely on Worthy Cause Marketing, and became one of the fastest growing wine brands in the nation. It worked for us. It just might work for you!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Cause Marketing or Worthy Cause Marketing?

Michael Houlihan & Bonnie Harvey — Sun, 03 Mar 2013 02:30:29 +0000

The nation’s #1 wine brand was built without relying on commercial advertising. Instead, while building the Barefoot Wine brand, we used what we termed, “Worthy Cause Marketing.”

Every business faces the same problems. How do you get the word out about your product or services? How do you do this in an efficient, targeted manner? How do you gain a loyal following? Customer acquisition and retention can cost millions, with advertising generally the most costly. Many smaller businesses and start-ups, like us, simply don’t have a big advertising budget.

We discovered an alternative to conventional advertising that was, for us, more effective than conventional advertising.

Getting to know our customers was key to keeping our products relevant and providing excellent customer service. An examination of your customer’s needs beyond their need for your products or services can provide essential clues about what is important to them. Each of your customers has a cause that they hold dear, and many are members of non-profit organizations.

By supporting those non-profits, a company aligns itself and its products with that cause. But that’s where the similarity between Cause Marketing and Worthy Cause Marketing ends.

National non-profits have discovered the value of their logos to corporate sponsors. With their huge membership and social appeal, these non-profits know that the big boys will pay to identify with them, and today, many national non-profit organizations raise substantial funds by selling their sponsorships.

Large companies can show their customers that they care by providing those sponsorships. However, simply “buying” a sponsorship is out of reach for most start-ups. And, sponsorships are generally sold on an annual basis, so one company can be the sponsor this year and another the next, sometimes discouraging loyalty.

We discovered, however, that we could offer support beyond funding to causes that were worthy of our time and energy. These were causes that our company, our product, or we ourselves naturally resonated with. We made up for our lack of funds with passionate support in other areas that were just as, if not ultimately more, valuable to the non-profit.

We gave them our products, services, and labor. We used our access to the market to help them get their word out, and yes, even helped them raise funds. Instead of buying a sponsorship, which we couldn’t afford anyway, we set out to become active members, promoters, and participants in their cause. This approach also helped build positive company culture because our people knew they were making a difference when they helped at fundraisers.

We focused on small rather than large, local rather than national, and at the time, relatively unknown rather than well-known non-profits. We focused on marginalized groups that supported equal rights or conservation that were not yet mainstream and were considered radical. They were particularly grateful for our getting the word out about their cause to our market audience. As they grew, we grew, and became part of their community. By helping them when they most needed it and making a lasting commitment, we established enduring trust as true partners. Of course, it was risky at times, but the payoff was being on the right side of history when their causes became mainstream.

The return on involvement with Worthy Cause Marketing was slow but steady, and over time, it built a loyal customer base that had a social reason to buy our product. The difference is making a difference by supporting worthy causes that are important to you and your customers.

Who We Are

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