Monday, January 16, 2017

The 60 Minutes Effect

I'm coming at this with a slight bias, but want to drive home the significance of a detail in the Mondavi case:
"The wine industry received an unexpected domestic boon after a 60 Minutes production about the 'French Paradox' aired... The news segment suggested that a few glasses of red wine each day might be beneficial to human health. 'In the four weeks after the television show was broadcast grocery store sales of cabernet sauvignon wines soared 45%... At Robert Mondavi Winery, cabernet sales jumped about 50%, and the rush started the morning after the program.'"
Many credit Mad Men with spurring a revived interest in classic cocktails and the recent bourbon boom after a long streak of weak sales and underinvestment in the American whiskey industry. As mentioned in class, the film Sideways sent pinot noir sales - and sales of complementary products like pinot noir glasses - through the roof. To provide examples across industries, environmentalists panicked as demand for clownfish as pets skyrocketed after the release of Finding Nemo (90% sold are taken from the wild), and Fuji's sponsorship of the 1984 Olympics was perhaps its most important strategic move in penetrating the US market and sealing Kodak's fate (demise).

This is a small point, but as the resident TV producer, I would be remiss if I didn't point out the role media can play whether in influencing a product launch (as in the Inniskillen case) or the overall dynamics of an entire established industry... And yes, these tend to be fads, but they provide opportunities for exposure that companies can convert into long-term success if they recognize them and respond quickly.

Blog Tax: How Bethenny Frankel Used Her Reality Show to Make $120 Million & Jim Bean Glows After Hooking Up With Bethenny Frankel 





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