Groundbreaking unPACKED™ Report Launches
By Matt Salem, SVP, Customer Success, Behaviorally
In the ever-evolving landscape of the alcoholic beverages market, packaging plays a critical role in capturing consumer attention and driving purchase transactions. Recently, we at Behaviorally conducted a groundbreaking analysis of the spirits category to deliver unique data intelligence that provides an in-depth analysis of how packaging design influences shopper behavior. This comprehensive case study explores the significance of packaging in the spirits industry to help products be seen, shoppable, seductive and ultimately – and most importantly – selected at shelf.
Packaging is often the first point of contact between a product and a consumer, serving as the "visual hello" that can attract a shopper before the product is ultimately placed into their shopping cart. Our study focuses on uncovering the components of effective packaging that drive purchase transactions. In a market characterized by diverse consumer preferences and a penchant for experimentation, packaging must effectively communicate across a wide array of considerations.
Be seen: The power of visibility
Visibility is the first hurdle in the journey from shelf to shopping cart. In the competitive spirits market, brands must capture consumer attention quickly. Our research found that, on average, any given spirits SKU was seen 0.42 times per person within the first five seconds of viewing. This "first mover" advantage allows brands to preempt competitive offerings, entering first into buying consideration sets.
Shelf placement also plays a crucial role in visibility. Over time, we have observed with near unanimity that the center of the shelf is best seen for almost all categories, and this study proves that out. Moreover, in spirits we see top shelves driving visibility better than lower ones (giving credence to the claim “top shelf”). Additionally, SKUs on the left side of the shelf were seen more frequently than those on the right. Notable examples include Tito’s and Tower SKUs located in the center of the shelf, which achieved high visibility due to their large size and contrasting label designs. However, brands sitting in less desirable portions of shelves can also create notable contrast. Maker’s Mark was a prime example which sat in the upper-left portion of shelf but due to the unique wax dipped seal, the package stood out with the distinct red coloring, making Maker’s Mark among the top visibility performers.
Be shoppable: Facilitating easy shopping
Being shoppable refers to how easily consumers can find and choose a product. Effective packaging serves to quickly confirm that a shopper has made the right choice, particularly if they come to the shelf seeking a specific offering. Brands that excel in shoppability create a balance between differentiation and brand cohesiveness, making the shopping experience easy and intuitive.
Spirits unPacked™ reveals that centralized shelf placement aids in finding a specific pack, with packs in less desirable placements still performing well if they leverage color and contrast effectively. For instance, the Popov bottles (red with black) and Veil Raspberry Vodka (bright red) were highly findable due to their distinctive colors.
Be seductive: Building emotional connections
Best-in-class packaging goes beyond capturing attention and facilitating shopping. It must also evoke emotional connections with consumers. Top spirits brands use their packaging to tell a story, resonating emotionally while providing the information needed to rationalize a decision. This storytelling aspect is crucial in building trust and conveying quality, tradition or individuality.
We focused on 10 important communication elements, and spirits packaging in the U.S. performed best at exuding trust and quality. However, it fell short in conveying brand superiority and relevance, suggesting that brands need to work harder to establish their value proposition.
Be selected: Driving purchase decisions
Ultimately, the goal of effective packaging is to drive purchase decisions. The study found that the most visible SKUs are sold at over 3.5 times the rate of less visible ones. However, visibility alone is not enough; packaging must also be personally relevant to shoppers and convey key attributes such as taste and mixability.
Top-selling SKUs, such as Grey Goose Vodka, Hennessy XO, Bacardi and Kahlua, excelled across all four S's (seen, shoppable, seductive, selected). These brands leverage unique shapes, bold imagery or distinctive design elements to stand out on the shelf and drive transactions.
The role of packaging in the spirits industry
Our Spirits unPACKED™ Report underscores the critical role of packaging in the spirits industry. As consumer preferences evolve, it is imperative for brands to continuously innovate their packaging strategies to maintain relevance and drive purchases. Effective packaging must balance visibility, shoppability, emotional appeal and clear communication to create a compelling brand experience.
In this competitive landscape, brands that master the art of packaging will not only capture consumer attention but also foster loyalty and drive long-term success. By leveraging design elements thoughtfully, spirits brands can create packaging that tells a story, connects with consumers and ultimately drives purchase decisions.
Contact information
To download a copy of the full report, please visit https://www.behaviorally.com/blog/spirits-unpacked-report and for more information on the methodology used in this study, please contact: Matthew.Salem@behaviorally.com
About the author:
Matt Salem, SVP Customer Success, loves researching anything and everything – professionally and personally! As the host of Behaviorally’s “Our Best Behavior” podcast, he speaks with guests across a variety of topics tied to driving the most important moment in marketing – the transaction. With over 20 years at Behaviorally, Salem’s wide range of research experience across packaging, shopper merchandising and path-to-purchase initiatives helps him ensure customer success.