Many in the wine industry talk about the new things in label design that are revolutionizing the industry. They are people who point out that there are new papers for labels, foil applications, embossing techniques, shrink sleeves, colors and scannable (QR) labels. Yes, the wine labels have a nice new look. But a new approach that will capture the imagination, uses captivating technologies, combines enticing colors and has proven research indicating that customers are impulsively compelled to pick up and handle the product the label appears on. When was the last wine label you saw one that you got to experience?

That new label product being promoted in the wine industry is a hologram. Holograms have been around commercially since the mid-1970s. Tea national geographic magazine introduced a small holographic image of an eagle on the cover of a monthly edition. I watched it and was amazed that you could see the eagle side and then the opposite side just by turning the magazine cover.

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

“Actual costs depend on how sophisticated the final image needs to be to get the desired visual effect,” says Mr. Alec Jeong, general sales manager 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 as high as $8,000 for a beautiful display that combines amazing 3-D depth, animation and reflections.”

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

New techniques now allow 3-D images to be generated using computer graphics models that can be applied to laser-like images to generate 3-D effects.

What makes the application of three-dimensional holographic labels so interesting for the wine industry?

· Holographic images produce a three-dimensional effect that captures the consumer’s attention when searching for wine racks. Applications can be adapted for vertical or horizontal bottle displays.

· Producing a 3-D label today is profitable.

· Holograms can be used to combat counterfeiting of some wines.

· Holographic images can be adapted for many marketing requirements: branding, neck hangers and attention grabbers for consumers walking down an aisle. For example, some holograms can be produced that will produce a burst of light when passing through a hologram label.

It is not necessary to make the entire label as a hologram.

These labels speak to the tech-savvy millennial generation. This demographic represents more than 60% of the wine market and is driving the growth of wine sales.

Ms. Toni Hamilton, Director of Marketing for ASL Print FX, has laid out some guidelines for effective wine labels. Do holograms conform to your guidelines? She asks, for example, on a store shelf, will the label draw attention in 3 seconds? Some research already done by Integra indicates that holographic images work well. Will a holographic image reflect the wine, the winery and the target market? Each demographic group responds to messages and the delivery format of a message differently. The investigation and evidence would be the judge; More information on market applications below. Lastly, in almost all demographics, tags need to be fun, can be humorous, use unique graphics, and can be a little weird.

A label design firm in Napa has said there are exceptions to most of the rules about good labels; however, images of creatures on labels are approved.

We know that wine labels are/can be: art, information (partly by law), entertainment and are used to influence consumer action. The following are some reflections on the interaction of a wine label with the consumer.

As a consumer, do you think we are immune to manipulative marketing tactics? we’re too smart for that trick, right? But we shouldn’t be defensive about wine marketing tactics because the label can tell us a lot of information (not just legal jargon) about the brand options available to us. Labels create lasting loyalty, stimulate new wine tastings, foster enjoyment/expectations (the mental expectations of psychology), and allow us to engage with the creators of some of our favorite wines/wineries and winemakers. Combined with the Internet, we can now be more informed about our wine purchases and become educated brand evangelists for excellent wines, both inexpensive and expensive.

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 they like the wine.” At least that’s according to Mr. David Schuemann, owner of CF Napa Brand Design, a premier label design and marketing firm in the wine country.

David Ogilvy, an advertising industry icon, had many quotes about using images to sell products. One I appreciate, which can be applied to holographic wine labels: “If you grab attention in the first frame (which goes for TV commercials) with a visual surprise, you have a better chance of retaining the viewer. People dismiss many commercials because they start off with something boring. “On average, five times more people read the headline than the body copy.”

In addition to advertising (print, television, direct response), the wine industry often has an important marketing tool in its bag of tricks to reach the consumer and motivate them toward that first taste: the label is an important tool in the bag. The label cannot carry and perpetuate a bad brand, product or image towards success. But, it will encourage a trial and then a repeat customer.

monthly wine business has reported, in the Hispanic market, 70% of the wine purchase decision is related to price, recommendations represent 40%, and label design represents 14% of the purchase decision. Obviously, there is a lot of crossover between categories, but the relative importance of wine labels is enough to make them important in wine sales. If the family recommendations arose due to a label-initiated trial and a follow-up recommendation, the labels could affect sales by nearly 30%: trials and repurchases.

Mr. Kyle Swartz, reported in drink dynamics, January 2016: “When it came to labels, 46% of women said they were intrigued by “traditional/classic/sophisticated” designs. 39% were intrigued by “fun and quirky” looks, while 37% noticed labels indicating “organic/sustainable” wines “Ingenious and smart” appealed to 36% of respondents, and “benefiting a cause I care about” intrigued 30% Do you think any of these answers influence the discussion about the holographic label?

These comments are important given that 83% of wine is bought by women, of which 36% are millennials, and they mostly focus on the shopping experience and not just the product itself. Since the United States is the largest wine market in the world, labels are extremely important. It is also noted that, according to Swartz reports, 53% of women examine the labels. As Ogilvy pointed out, the first box (substituting “visual impression” for our discussion) will prompt further exploration.

Wine is once again in the spotlight for its growth, mainly attributed to millennials. As a demographic, millennials make up about 60% of the US market and focus on wine purchases in $11-$20 bottles. However, label strategies are not necessarily driven by the price of a bottle of wine. At ALL price points for any product, the product is repurchased based on a price-to-value ratio. No one buys Two Buck Chuck thinking the quality/value is a bottle that will be stored for 10 years or placed in a fine wine auction at Christy’s. But at any price, the labels will generate evidence for the value proposition and that communicates with a brand strategy.

In an attempt to show that I am not out of touch with reality. We all recognize that there are many components that influence our decision to purchase wine, in addition to personal preferences acquired / established for a specific wine. For this discussion, we focus on the tactile and visual questions that lead us to make a first attempt at a wine that we see in ourselves; these are not listed in any order or inclusion.

Price

label design

Bottle/product weight

Closure type (plastic caps with cork or screw top would not be visible under the foil)

Wine description on front and back labels

variety/style

Denomination/AVA

Familiarity with the wine producer.

Recommendations (friends or retailer or warehouse)

As an aside: more recently a lot of 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 like red, gold, and yellow connote wealth, good luck, and elegance.

I came across a 2010 study written by Vince Bonofede of California Polytechnic State University. The title of the research is- ANALYSIS OF THE AESTHETICS OF THE DESIGN OF WINE LABELS AND THE CORRELATION WITH THE PRICE. Contrary to the title of the study, it did touch on label design issues in wine selection. The study was based on mathematical and regression analysis and analyzed 7 categories of rules related to design aesthetics.

After a complex analysis, Bonofede concludes: “Ultimately, wine is meant to be enjoyed, not a stressful stroll through the wine island. If a wine’s label is the first thing that catches your eye, then go for it and enjoy it”. That is, if a wine label were aesthetically pleasing to the consumer (i.e. color, shapes, font sizes, etc.), then the label could have an overall effect on consumer opinion of the wine (Burnhard, Martin and Troncoso (2008).

I think holographic labels will soon be making inroads into wine labels. Certainly, the use of such images will promote product testing, conversation, label reading for information, promote branding, and promote a product and warehouse image that is long lasting. The frequency and impressions of such a tag should be explored as a component of marketing.

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