The Merchant23 Blog

The Power of a Well Crafted Label

Jun 18, 2019 12:40:42 PM / by Cyrus Azari

In retail, you need to stand out to your customer. Why? Because when you walk into a store, it looks like this:

Smiling man holding bottles of wine in supermarket
"There are so many options, and I'm defiantly going to base my purchase decision on the label."

That's a lot of potential choices, and this is just a picture, imagine walking through it all!

Here's the truth, when making a purchase decision at the retail level the customer typically doesn't have a lot of information to go off of...and as such they will make their purchase decisions based upon your label - about 80% (or more) of that decision is based on your visual appeal. The remaining 20% is ancillary, like what they know about your specific brand or the type of product.

What does this mean? I asked my friend Jacob Moynihan, and this is what he told me.

You better have a sleek and sexy label design that is visually appealing! Here's the kicker, it has to be appealing towards who you want to buy that product. Also, a great label can create a connection with the customer so that they will choose your product first, whether on the retail shelf or when they see it as text on a wine list. 

In other words, who are you trying to appeal to with your label? A young drinking crowd like millennials? Or older baby boomers? Or is it maybe racing enthusiasts? It all depends on what you're trying to do with your brand.

Your label is on the frontlines! Make sure it doesn't let you down with your target audience.

How can you do that?

Simple. Make your product visually appealing towards the target consumer, and make sure your pricing reflects the positioning of your product. A "Hello Kitty" wine (this does exist…) wouldn't command the same price point as a Robert Parker 100 point Cabernet Sauvignon from Napa, would it?

Another thing to keep in mind is to make your products appear to be "more premium" for its price segment. Premium packages give the consumer a higher perceived "value" when they come across your product.

Now, double down on that. Do you know what premium packaging does? It makes your wine taste better. Not in actual practice, but there is a lovely psychological phenomenon called "confirmation bias."

You see, when purchasing a bottle of wine or spirit that is visually appealing and looks very premium, consumers believe it "tastes better." I don't want to feel like I made a wrong decision, so subconsciously I am going to believe I made the "right" choice, and as such I'm not going to think my purchase was "bad."

So when I pop that cork or unscrew that cap, I'm thinking "this is going to be great." And it will be because I want it to be. Crazy, but true. Premium packaging makes things taste and feel better.

You know how I was emphasizing "target customer?" Your target customer (race enthusiast, wine aficionado, etc.) all have different tastes making specific "stories" resonate better than others.

Your story should tie your brand, the benefits of your product, and marketing together to create an emotionally appealing presentation to your customer. Social media is a fantastic conduit to doing this. Aim to create a sort of "connection" with your customers.

Good storytelling puts your brand in the position to be a supporting role for the consumer's particular lifestyle - that is their personality, hobbies, aspirations, anything that makes them feel "unique." If the customer sees you as a partner to their lifestyle and choices, it makes your appeal very compelling.

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Topics: Branding

Written by Cyrus Azari

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