technology

Is the Wine Industry Ready for New Label Technology?

Many players in the wine industry are talking about the novelties in label design that are revolutionizing the industry. These are people who point out that there are new label papers, applications using films, embossing techniques, shrink sleeves, colors and scannable labels (QR). Yes, there is a nice new look to wine labels. But, a new approach that will capture the imagination, uses captivating technologies, combines enticing colors, and has been proven in research indicating that customers are forced to impulsively take and handle the product the label appears on. When was the last wine label you saw?

This new label product promoted to the wine industry is a hologram. Holograms have been on the market since the mid-1970s. National Geographic Magazine introduced a small holographic image of an eagle on the cover of a monthly issue. I saw it and was amazed that you can see from the eagle side and then the opposite side just by turning the cover of the magazine.

I was a marketing manager for a Manhattan company and was so intrigued by the holographic image that I wanted to use it in our consumer booklets. The major drawback was the price of the holographic image; about $ 2.00 each. Today, hologram labels can be created, in volume, for as little as $ 0.05 each, 1 x 1 inch. Pre-production / installation costs would be approximately $ 2,500. A front label for wine could cost around $ 0.74 each for a 4×3 inch size.

“The actual costs depend on the sophistication of the final image to achieve the desired visual effect,” said Mr. Alec Jeong, general manager of sales at Integraf, a supplier of holographic labels. “For a high-quality hologram, pre-production can start as low as $ 1,000 for something simple like a logo or go up to $ 8,000 for a gorgeous display that combines 3D depth, animation, and stunning reflections. “

What makes holograms so interesting? Holography is a photographic technique that records light diffused by an object, then presents it in a way that appears in three dimensions. In the 1970s, the object to appear in 3-D, the model had to be in the actual size of the image to be generated on special paper using lasers.

New techniques now make it possible to generate 3-D images using computer graphics modeling which can be applied to laser-like imaging to generate 3-D effects.

What makes the application of 3D holographic labels so interesting for the wine industry?

The holographic images produce a 3D effect that captures the attention of consumers as they chase wine shelves. Applications can be adapted for vertical or horizontal bottle displays.

· Producing a 3D label today is cost effective.

· Holograms can be used to fight against counterfeiting of certain wines.

· Holographic images can be tailored for many marketing requirements – brand, neck hangars, and attention catchers for passing shoppers walking down an aisle. For example, some holograms can be produced that will produce a burst of light when you walk past a hologram label.

· The entire label does not need to be made as a hologram.

· These labels speak to the tech-savvy millennial generation. This demographics represent more than 60% of the wine market and fuel the growth in wine sales.

Ms. Toni Hamilton, Marketing Director at ASL Print FX, established guidelines for effective wine labels. Do the holograms comply with its guidelines? She asks, for example, on a store shelf, will the label grab attention in 3 seconds? Some research already done by Integra indicates that holographic images work well. Will a holographic image reflect the wine, the cellar and the target market? Each demographic group reacts differently to messages and the delivery format of a message. Research and testing would be the judge; more information on market applications follows. Finally, in almost all market demographics, labels should be fun, can have humor, should use unique graphics, and can be a little quirky.

A Napa label design company said there were exceptions to most of the rules about good labels – creature images on labels, but they were outdated.

We know that wine labels are / can be: artistic, informative (partly by law), entertaining and used to influence consumer action. Here are some thoughts on how a wine label interacts with the consumer.

As a consumer, do you think we are immune to marketing manipulation tactics; We’re way too smart for this trick, aren’t we? But, we shouldn’t be defensive about wine marketing tactics, as the label can give us a lot of information (not just legal jargon) about the brand choices available to us. Labels create lasting loyalty, stimulate testing of new wines, promote pleasure / expectations (the mental expectations of psychology) and allow us to connect with the creators of some of our favorite wines / wineries and winemakers. Combined with the internet, we can now be better informed about our wine purchases and become an educated brand evangelist for cheap and expensive great wines.

The life and value of a wine label is based on research and testing. And research shows that “the more the consumer likes the label, the more he likes the wine”. At least, according to David Schuemann, owner of CF Napa Brand Design, a leading label design and marketing company in wine country.

David Ogilvy, an icon in the advertising industry, has made numerous quotes about using visuals to sell products. One that I like, which can be applied to holographic wine labels, “If you grab the attention in the first frame (applied to TV commercials) with a visual surprise, you have a better chance of holding the viewer back because of the commercials because that they open with something dull. “” On average, five times more people read the headline than the body of the text. “

In addition to advertising (print, TV, direct response), the wine industry generally has a major marketing tool in its bag of tips to reach consumers and motivate consumers to take this first attempt: the label is a tool. middle finger in the bag. The label cannot carry and perpetuate a bad brand, successful product or image. But, it will encourage a try and then a repeat customer.

Wine Business Monthly reported that in the Hispanic market, 70% of the wine buying decision is related to price, recommendations make up 40%, and label design makes up 14% of the buying decision. Obviously there is a lot of crossover between the categories, but the relative importance of wine labels is enough to make it important in the sale of wine. If the family recommendations stemmed from a label-initiated trial and a follow-up recommendation, the labels could impact sales by up to 30% of trials and repurchases.

Mr. Kyle Swartz, reported in Beverage dynamics, January 2016: “Regarding labels, 46% of women say they are intrigued by ‘traditional / classic / sophisticated’ designs. 39% were intrigued by the ‘fun and whimsical’ looks, while 37% noticed labels that indicated “organic / sustainable” wines “Witty and smart” attracted 36% of respondents, and “for the benefit of a cause that interests me” intrigued 30%. ”Do you think any of the above plays into the discussion of holographic labels?

These reviews are important considering that 83% of wine is bought by women, 36% of which are millennials and focus primarily on shopping experiences and not just on the product itself. With the United States being the world’s largest wine market, labels are extremely important. It should also be noted that according to Swartz, 53% of women browse the labels. As noted by Ogilvy-The first frame (replacing “visual impression” for our discussion) will lead to further exploration.

Wine is back in the spotlight of growth, mostly attributed to millennials. As a demographic, Millennials make up about 60% of the US market and focus on buying wine in the $ 11 bottle of wine. at $ 20. However, labeling strategies are not necessarily dictated by the price of a bottle of wine. At ALL prices for any product, the product is repurchased on the basis of a price / value ratio. No one buys Two Buck Chuck thinking that quality / value is a 10 year rack or fine wine auction at Christy’s. But at all costs, the labels will generate trials for the value proposition and this will be communicated with a branding strategy.

To try to show that I am not disconnected from reality. We all recognize that there are many things that influence our wine buying decision, other than personal preferences acquired / established for a specific wine. For this discussion, we are focusing on the tactile and visual questions that lead us to make a first try of a wine that we see on the self-these are not listed in any order or inclusiveness.

Price

Label design

Bottle / product weight

Type of closure (plastic caps with cork or screw cap would not be visible under the sheet)

Description of the wine on the front and back labels

Grape variety / style

Appellation / AVA

Knowledge of the wine producer

Recommendations (friends or retailer or cellar)

By the way: More recently, much attention has been paid to the wine market in China. Here, the label is very important because of the traditional importance of images and colors. Interestingly, colors such as red, gold, and yellow evoke wealth, luck, and elegance.

I came across a 2010 study written by Vince Bonofede from California Polytechnic State University. The title of the research is: ANALYSIS OF THE AESTHETICS OF THE DESIGN OF WINE LABELS AND CORRELATION TO THE PRICE. Unlike the title of the study, it addressed label design issues on wine selection. The study was based on mathematical and regression analysis and examined 7 categories of rules relating to design aesthetics.

After a complex analysis, Bonofede concludes: “Ultimately, wine is meant to be enjoyed, not a stressful walk on Wine Island. If a wine label is what catches your attention first, then go for it. y and enjoy it. ” In other words, if a wine label was aesthetically pleasing to the consumer (i.e. color, shapes, font sizes, etc.) then the label could have an overall effect on the consumer’s opinion on wine (Burnhard, Martin and Troncoso (2008).

I think holographic labels will soon make a breakthrough in wine labels. Certainly, the use of such images will promote product testing, conversation, reading labels for information, promote branding and promote a sustainable product and vineyard image. The frequency and impressions of such a label should be explored as a component of marketing.


Source by Steven Lay

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