project norm - Setting a label standard

Wine Intelligence now provides an industry benchmark for wine label testing

It’s not new to say that label and packaging design have a great impact on how consumers perceive a wine. In fact wine is a rare industry where one wine can cost hundreds more than another but still look rather similar (typically a 0.75 cl bottle) so the label design has to convey a great deal of information to differentiate between products.

Attractiveness, price expectation or intent to purchase can greatly vary according to the visuals provided by the label. The crucial question is: What is “high” and what is “low”? How does a brand perform if 40% of wine drinkers state that they are likely to purchase it? Is this a good result? And if 50% say that they find the label design of a brand attractive, is this outstanding or rather average?

To solve this puzzle, at Wine Intelligence we have developed an industry benchmark, or norm, for wine label tests in major wine drinking markets using our Vinitrac® survey platform [more about Vinitrac, please read here].

The norm can be used by our clients testing their brands to answer the critical question: does my brand outperform the market average? As there are different wine categories we have calculated a norm for red and white wines, entry level and premium, in addition to, new to the market and popular.

The last distinction is quite important as popular brands tend to be seen as more attractive than new brands. This familiarity effect in wine means that a new entry to the market has to really outperform and stand out from the competition.

One data point to share: the likelihood to purchase a new red wine brand among American wine consumers tends to be around 42% while it is 50% among more popular existing red wine brands. Based on the evidence so far, our view is that a new brand needs to achieve a likelihood to buy level closer to 50% among its target consumers to stand a chance in the market.

You can now use our Vinitrac® survey platform to understand how your brand perform vs competitors and our industry benchmark. Please contact Tetyana Halutva for more information.

Author: Tetyana Halutva