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Is the Wine Industry Ready for New Label Technology?
Many in the wine industry are talking about innovations in brand design that are changing the industry. These are the people who pointed out that there are new label papers, foil applications, embossing techniques, small sleeves, colors and scannable (QR) tags. Well, there’s a cool new look to the wine label. But, a new approach that will attract attention, uses attractive technology, combines funny colors, and has proven research that indicates that consumers are forced to take and manage the products of the brand. When was the last wine label you saw that you might experience?
This new branding product promoting the wine industry is a hologram. Holograms have been commercially available since the mid-70s National Geographic magazine introduced a small holographic image of an eagle on the cover of each month’s issue. I saw it and I was surprised that I could see on the side of the eagle and then on the opposite side of the round just the cover of the magazine.
I am a marketing manager for a company in Manhattan and I was very interested in a holographic image that I wanted to use in our client brochure. A major drawback is the cost of holographic imaging; about $2.00 each. Currently, hologram labels are available, in volume, for $0.05 each, 1 x 1 inch. Pre-production/build costs are expected to be $2,500. Front labels for wine can cost about $0.74 per 4 x 3 inch size.
“The ultimate image relies on a sophisticated process to achieve the desired visual effect,” said Mr. Alec Jeong, General Sales Manager at Integraf, a supplier of holographic labels. “For high-quality holograms, pre-production can start at $1000 for something as simple as a logo or go up to $8000 for a spectacular display that combines the depth of 3- D, animation and dramatic reflection.”
What makes holograms interesting? Holography is an imaging technique that captures the light emitted from an object, and then displays it in a three-dimensional form. In the 70’s what will appear in 3-D the model must be in the real size of the image to be produced on special paper using lasers.
New techniques now allow 3-D images to be created using computer image manipulation that can be applied to laser-type images to create 3-D effects.
What makes 3D holographic label applications interesting for the wine industry?
· Holographic images produce a 3-D effect that captures consumers’ attention as they browse wine shelves. The application can be configured to display bottles vertically or horizontally.
· Today’s 3-D label production is expensive.
· Holograms can be used to combat counterfeiting of certain wines.
· Holographic images can be customized for multi-brand marketing demands, neck hangars, and attention grabbers for customers passing by in the aisles. For example, there are customizable holograms that will emit light when you pass a hologram label.
· The entire label does not need to be a hologram.
· These brands speak to the tech-savvy millennial generation. This demographic represents more than 60% of the wine market and is fueling the growth of wine sales.
Ms. Toni Hamilton, Marketing Director at ASL Print FX, has laid out some guidelines for successful wine branding. Does the hologram match its instructions? He asks, for example, on a store shelf, will the brand command attention in 3 seconds? Some research already done by Integra indicates that holographic imaging works well. Will the wine, winery and target market be reflected in the holographic image? Each demographic responds to messages and message delivery methods differently. Research and testing will be the judge; more about the next market application. Finally, for almost any demographic market, the label needs to be fun, can have a sense of humor, should use unique images and can be quirky.
A branding company in Napa says there is an exception to most of the rules of good branding – critter images on labels are passé.
We know that wine labels are: art, information (part of the law), entertainment, and used to stimulate consumer behavior. The following are some ideas on how wine brands interact with consumers.
As a consumer, do you think we are immune to marketing manipulation tactics; We’re too smart for that trick, aren’t we? But, we shouldn’t be defensive about wine marketing tactics because brands can give us a lot of information (not just legal) about our brand choices. Labels create long-term loyalty, encourage new wine trials, encourage enjoyment/expectation (psychological expectations) and allow us to connect with the creators of some of our favorite wines/vineyards and winemakers. . With the Internet, we can now learn more about buying wine and become educated brand evangelists for both inexpensive and expensive wines.
The life and value of a wine brand is based on research and testing. And research shows, “The more consumers like the brand, the more they like the wine.” At least that’s according to Mr. David Schuemann, owner of CF Napa Brand Design, wine country’s premier branding and marketing firm.
Advertising industry icon David Ogilvy had a lot to say about using images to sell products. One I appreciate, which can be applied to holographic wine labels, “If you attract attention with the first image (applied in TV commercials) with a visual surprise, you have a better chance to keep viewers. ads because they’re open to vague things.” “On average, five times as many people read the headline as read the copy.”
In addition to advertising (print, TV, direct response), the wine industry in general has great marketing tools in their bag of tricks to reach consumers and motivate consumers to This first test: the brand is a big tool in the bag. A brand cannot carry and maintain a negative brand, product or image for success. But, it will encourage testing and then repeat customers.
Monthly wine business reported, in the Hispanic market 70% of wine purchase decisions are related to price, value proposition 40% and brand design represents 14% of purchase decisions . Of course, there is a lot of overlap between categories, but the importance of a wine brand is enough to make it important to wine sales. If the recommendation of the family comes because of the test started and the following recommendation, it can have an impact on the sales of almost 30%-testing and repurchasing the brand.
mr. Kyle Swartz, reported in the Beverage Dynamics, January 2016: “Regarding labels, 46% of women said they were interested in “traditional/classic/sophisticated” looks. “Smart and sophisticated” attracted 36% of respondents, and 30% were interested in “benefiting a cause I’m interested in.” Do you think any of these responses fit into the discussion of holographic branding?
These comments are important because 83% of wine purchases are made by women, 36% of whom are millennials and are more focused on buying the experience than just the product. With the United States being the largest wine market in the world, branding is extremely important. Also of note, Swartz reports, 53% of women look at labels. As Ogilvy points out- The first image (replacing “click” for dialogue) will generate more searches.
Wine is back in the spotlight, especially in the millennial age. As a demographic, millennials represent 60% of the US market and focus on wine purchases in the $11 to $20 wine bottle range. However, the label scheme is not necessarily driven by the price of a bottle of wine. At ALL prices for all products, the products are returned using the price relationship. No one buys Two Buck Chuck thinking the quality/value is a bottle worth keeping for 10 years or putting up at a fine wine auction at Christy’s. But with any price tag, it will create a test for the bid and it will be passed on to the brand strategy.
In an attempt to show that I am not out of touch with reality. We all know that there are many factors that influence our decision to buy wine, in addition to personal preference for a particular wine. For this discussion, we focus on the tactile and visual questions that make us do the first tasting of the wine that we see in person – not listed in the order or introduction.
· Brand design
· Weight of bottle/product
· Type of closure (bump or top plastic screw will not be visible under the foil)
· Description of the wine on the front and back labels
· Knowledge of wine producers
· Recommendations (friends, retailers or wineries)
In addition: Recently, there has been a lot of attention on China’s wine market. Here, the label is very important because of the importance of traditional images and colors. Interestingly, colors like red, gold and yellow represent wealth, good luck and beauty.
I came across a 2010 study written by Vince Bonofede from California Polytechnic State University. The title of the research is- ANALYSIS OF WINE LABEL DESIGN AESTHETIC AND THE RELATIONSHIP WITH PRICE. Contrary to the title of the study, he touched on the problem of the design of the wine selection label. The study was based on mathematical and regression analysis and looked at 7 categories of principles related to design aesthetics.
After a complex analysis, Bonofede concluded: “Wine is meant to be enjoyed, not a tedious walk down the wine isle. If a wine brand catches your attention first, go and enjoy.” That is, if the wine brand was pleasing to the consumer (i.e., the color, shape, font size, etc.), it could affect the consumer’s perception of the wine (Burnhard, Martin, and Troncoso) the brand. (2008).
I think holographic labels will soon enter wine labels. It is certain that the use of such images will promote product testing, communication, label reading for information, brand promotion and product promotion and sustainable wine image. The frequency and sensitivity of such brands should be considered as a marketing element.
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