Insights by AUSPACK

Packaging increase brand loyalty and grow business

Packaging can grow your business, says wine boss

Posted on August 30th, 2019 in Insights by AUSPACK

It’s no secret that good packaging plays an important part in a product’s success. Not just in keeping a food or drink item fresh, but also in the way it pops off a shelf and makes a shopper want to buy it.

Nowhere is this truer than the wine industry, where brand loyalty is low and new experiences are sought after.

Ben Culligan, the ANZ marketing director for the Treasury Wine Estate, talked at the 2019 AUSPACK Business and Industry Conference about the unique challenges facing the wine industry and how he and his team have tried to take advantage of those opportunities.

The importance of packaging in the wine industry

The saying that you should never judge a book by its cover goes well and truly out the window when people are shopping for wines. More than any other industry, wine suffers from a lack of brand loyalty with customers keen to try new varieties and new vineyards on a regular basis.

More often than not, outside of vineyard tours, this is done purely by picking a bottle, judged by its label, from those on the shelves of the local bottle shop.

Ben said, “Whilst 67% of wine shoppers claim they plan their shop before they hit the store, the reality is what’s usually written on that list is just ‘wine’. Because nearly half of them actually wait until they’re instore then they choose wine literally just based on the label. That’s a huge role for that one label on a very similar format product needs to play.”

“The other complexity within this category, on average, in the course of a year, the average consumer will buy at least 10 different brands of wine. Wine as a category is much more about discovery, people want to try something new, and they want to try something different. As a result, that poses a really interesting challenge for brands.”

How wine packaging differs from other FMCG industries

For some, there’s an idea that all packaging is created equal, however those in the wine industry know differently. As well as a lower than average commitment to brand loyalty and a desire to branch out as often as possible, there are other challenges – such as the majority of bottles, available to the vast number of wine producers, all being the same size and shape.

Ben said, “The first one where there’s a major difference to the other FMCG categories is the scale of complexity in wine. There are over 24,000 wine brands – that’s just across Australia, New Zealand, Europe and the US. There’s this concept of just having a couple of big brands and a few smaller independent players really doesn’t play out in this category. That also plays out in the store when you walk in and see that 99% of those are all in 750mL bottle.”

How to go over and above with your label

With your label holding so much importance to make your product picked before its competitors, it pays to make it stand out in some way. Ben suggests that wine producers look to technology for the answer, with the obvious choice being augmented reality.

Augmented reality still sounds futuristic to some people, but with games like Pokemon Go and brands like Ikea using it so widely and effectively, it’s been shown that it can be adopted here and now.

Ben said, “One of the areas that we worked on jointly with our creative agencies was the role of augmented reality could play on our portfolio of brands. The challenge for us is disrupting the aisle and the mind of consumer on what wine brands were doing.”

“If people are buying based on the label, what if this is more than a label? What if it’s actually an interactive brand experience? It was from that provocation that we developed this app, the first of its kind app, which was designed around how do we bring consumers, shopper and retailers much closer to our brand?”

“With the concept being by taking your mobile, you literally scan the label. That can be done instore or at home when sharing it with friends, to unlock brand experience and for that to be compelling enough to share it with their friends.”

Three key takeaways:

  • Wine consumers love the idea of exploring their options and trying new wines
  • The majority of wine shoppers will make their selection instore based on little more than labelling
  • Augmented reality is a technology that’s available today that can help your bottle stand out on the shelf

Want more content like this? Sign up to our free e-newsletter and receive more articles like this, savings and other subscriber-worthy incentives.

We use cookies to ensure that we give you the best experience on our website. You can view our privacy policy by clicking here