Wednesday, February 28, 2007 · Number 3

FEATURE: Twin Fin Shows the Wine Industry the Benefits of Innovative Packaging

There's a revolution going on in the U.S. wine industry. A growing number of wineries and suppliers are recognizing that innovative packaging - along with high quality wine - will have a profound effect on brand sales and longevity. New brands are utilizing creative packaging formats like cans and cartons and unique serving sizes to create excitement and increase differentiation. Another trend is the proliferation of screwcap closures in lieu of a traditional cork. Offering many benefits that appeal to consumers seeking more convenient packaging, an increasing number of wines from around the world are coming on board.

The savvy marketers at Pacific Wine Partners in Gonzales, CA, take this mantra to heart. With the help of United Closures and Plastics Limited (UCP), a division of Global Closure Systems (GCS), they were the first company to introduce a new brand to the market whose bottles were all screwcap. This bold step clearly communicates the important role closures - and packaging in general - play in determining how consumers view a brand.

Pacific Wine Partners (PWP) has built a reputation as one of California's leading wine producers by strategically targeting wine segments and styles that are in sync with market growth and trends. The Twin Fin brand, which retials for about $10, offers a model example. From the beginning, Twin Fin was not intended to be a typical wine. While still aiming for a classic taste, winemakers Hugh Reimers and Sam Burton wanted to capture the laid-back, free-spirited California attitude - in other words, a wine that was just plain fun.

Market research indicated consumers were ready for just such a brand. PWP knew that the packaging and positioning for Twin Fin would have to be fresh and innovative for the brand to be successful. "The 20- and 30-something consumers - who are unlikely to be wine connoisseurs - tend to choose brands that resonate with them on an emotional level," points out Damon Musha, marketing director for PWP. While the hip, younger consumer was a key target, PWP also wanted Twin Fin to appeal to the baby boomer generation. The company finally settled on a cool, retro label portraying a vintage convertible with a twin fin surfboard hanging off the back - intended to remind consumers of summer, fun, and good friends.

PWP also zeroed in on the bottle closure as an area where they could offer this kind of added-value to consumers. For brand owners, the screwcap closure style protects the freshness and vibrancy of flavors, eliminates the risk of taint and leakage and ensures consistent quality and performance. On the consumer side, screwcaps are quick and easy-to-open and conveniently reseal after use. After much internal debate, PWP opted to seal the entire portfolio of Twin Fin wines with screwcap closures, making it the first brand to commit 100% to screwcap.

"In the case of Twin Fin, we wanted a closure that would make beach bonfires and barbecues that much easier and would fit the 'take anywhere' and 'let's not complicate wine' attitude that the brand embraces," explains Musha. "The screwcap was the ideal choice." UCP offered a 30x60 closure that was compatible with existing glass standards and conventional ROPP application technology. The closure was fully EU/UK/FDA approved for food contact and is offered with a number of different liner options.

UCP produced a closure and liner combination that offered the most protection against oxygen ingress. They also advised PWP on the closure design, which is side-decorated to match the surfing imagery on the label, enhancing brand recognition. The final piece of the puzzle was ensuring PWP was able to effectively make the transition to aluminum closures, which are much less tolerant of misalignment and which require a tight range of allowable twisting tension to ensure a proper seal.

In its first year, Twin Fin generated higher retail dollar sales than any other label launched in the U.S. that year. Riding the wave of Twin Fin's success, PWP introduced The Beach Cruiser, a brightly colored 4-pack of 187-ml bottles with screwcap closures.

FORUM: The Case for Cause Marketing

The successful energizer battery Breast Cancer Awareness campaign and fundraising effort was one good example of cause marketing. Energizer produced 1.5 million pink packages of pink batteries that were on Target shelves to coincide with National Breast Cancer Awareness Month. We asked a panel of package design experts—Aniko Hullner, Wendy Jedlicka, Amy Graver, and JoAnn Hines—these questions:

• What are the pitfalls that occur when using packaging for cause marketing?
• Do cause marketing campaigns ultimately drive brand loyalty?
• What product categories should avoid cause marketing campaigns?
• What would you advise clients who are considering a cause marketing package?

Aniko Hullner, CEO of the Kitchen Collaborative, Los Angeles

Cause marketing is tricky, even when approached with the best possible intentions. Consumers are getting more and more marketing-savvy, and may react negatively if the campaign is not approached in exactly the right way. The campaign can have the opposite effect of its intention if the campaign is perceived as a gimmick or novelty by the consumer.

Whether it promotes brand loyalty or not depends on the brand and its core values. If a female-owned company with female consumers were to promote breast cancer research, I believe the consumers would be more willing to support the campaign because there is a relevance there. For example, Yoplait has been running their Breast Cancer Initiative for years and it has become a staple in their brand and their packaging. It also creates an interactive experience for consumers by sending their lids in to get the donation—it gives the consumer a sense of interaction and accomplishment. As long as the cause has a relevance to the brand and the intention is genuine, consumers will see the connection and support the campaign.

I would advise subtlety to clients considering a cause marketing campaign. There is a fine line between promoting association with a cause to achieve the most possible sales (and therefore donations) and creating a novelty product that really has no relationship to the cause. An example of a brand that does this well is Newman's Own products—their cause marketing is clearly noted on the packaging but doesn't overpower the fact that you're actually just trying to sell some salsa.

Wendy Jedlicka, president of Jedlicka Design, Roseville, Minnesota

Of course the biggest pitfall in any cooperative venture is the association of two brands. Like a sports hero off to rehab, a non-profit that's been found to be less-than-above-board can have an adverse affect on your brand. Select your promotional partners with the same care as you would selecting a business partner.

These packaging cause marketing campaigns don't necessarily drive brand loyalty so much at they help keep the relationship warm and fuzzy. Devoted users will buy whether you participate in corporate "do-gooding" or not. One thing it does do is turn a brand on to new customers who have personal interest in supporting a given cause. The Red Products is a great example of that. ("Hey people who want to support AIDS relief, buy THIS stuff.")

For clients considering cause marketing, I'd ask these questions: Is the co-brand a natural and easy to understand extension of your own brand image? ("The power to keep going"; though batteries and women's health aren't a first thought, the message is an easy tie-together.) Is the proposed partner ethically aligned with your own corporate morals? (Annie's Pasta and the PBS Arthur cartoon connect with natural foods and wholesome educational TV.) What kind of bang will you get for your cooperative buck? (Consider the case of Estée Lauder and the Friends of the Spotted Owl?!) What kind of residual impression will the customer retain after the campaign? (I still think about the Yoplait yogurt top campaign every time I peel one back.) Find more on cause marketing here.

Amy Graver, president of Elements, LLC, New Haven, CT

If the products have "wheels" (meaning the manufacturer is obligated to buy back unsold items, a common arrangement), repackaging of products not purchased during the promotional period can be a very costly proposition. There are, of course, other pitfalls, but few with greater potential to completely erase already narrowed margins.

There is significant evidence that cause marketing (sometimes referred to as affinity marketing) has a positive effect on brand loyalty. The caveat is that if consumers do not see a good fit between the cause and the company, they may become suspicious of the motives. For example, a maker of hiking boots supporting a program to preserve and protect the wilderness will be well-received. Support for that same program by a manufacturer of women's fashion shoes probably wouldn't work as well.

All successful corporations have an intrinsic obligation to provide support to social causes. The question of using that obligation as a marketing tool is much less "If?" than it is "When and Why?" With few exceptions, companies should use affinity marketing when their motives will be perceived as pure and completely in the public interest, not merely a strategy to increase sales or an effort to rehabilitate a damaged image.

The Elements design firm believes strongly in the value of cause marketing. Because packaging is the last and best place for a product to capture people's attention—it may very well be the most effective place to publicize a cause-related campaign.

JoAnn Hines, Packaging Diva and founder of Women in Packaging

Many companies jumped on the cause marketing bandwagon in conjunction with National Breast Cancer Awareness Month (October). Right now, breast cancer is the most popular cause used by marketers because it is a well-established, successful, and well-recognized cause—and it can be closely identified with marketing to women.

It's important to recognize that cause marketing is misunderstood by the general populace and cause marketing is not a means unto itself. By that I mean just because you show that you are support a cause on your product packaging does not mean someone will be induced to purchase that product.

The most common cause marketing campaign on product packaging is breast cancer. You can capitalize through product packaging on the literally thousands of other causes, as well. In fact, you can create ongoing cause marketing campaigns throughout the year with a little creative license.

But be sure and consider this: There are two sides to this issue. There are companies that really believe in supporting the cause for which they are endorsing and developing cause marketed products. But there are also companies that are just using a cause as a marketing gimmick to sell more product. In addition, many people question the amount of money that is actually donated.

But whatever your opinion—whether you are induced to make a purchase or to support a cause—packaging for cause marketing is here to stay. The question is: Can you make it profitable for your company to support this endeavor? Will your customer, the ultimate decision maker, look at your company in a favorable light or be turned off because they think you are out there to make a quick buck?

Read more on "Packaging: A Cause for Profit" here.

NEW DESIGN: NYC Condom Debuts on Valentine's Day

The New York City Health Department unveiled the NYC Condom, the first in the nation with an official brand. The Department distributed 150,000 around the city on Feb 14th as a continuation of a campaign that now distributes 1.5 million free condoms every month. The Health Department believes in the power of a strong brand - even for freebies.

The NYC Condom is the same high-quality LifeStyles product the Health Department has been distributing through health centers and community organizations, but the package has a bold new look. The shiny black condom package features lettering modeled after the subway line markings of New York's Metropolitan Transportation Authority.

The Health Department believes the new branding effort will make the condom distribution campaign grow even more. "The NYC Condom is a great opportunity to promote health," said Kenneth Cole, who hosted the launch event at his store in Rockefeller Center. "Any successful product has a strong brand, and condoms are no different."

As co-chair of the condom campaign, Cole is leading a coalition of businesses in an effort to keep free NYC Condoms in wide circulation. Any New York City establishment - be it a health club, coffee house, bar, barbershop or clothing store - can become a partner in the campaign. The Health Department's publicity campaign will blanket subways, phone booths, and other public spaces with display ads in English and Spanish, with iconic city imagery and a message: NYC Condoms - Get Some. In addition, radio advertisements are running in English and Spanish.

NEW PRODUCT: Peel 'n Taste Offers New Marketing Tool

First Flavor Inc. announces the introduction of Peel 'n Taste™, an easy-to-use, versatile, cost-effective marketing system that uses strips of edible film to allow consumers to taste-sample products. Peel 'n Taste employs the most advanced flavor matching science, ensuring a faithful match to a product's flavor profile. When consumers place the edible film strip in their mouth, they get a burst of the flavor of the product.

"Peel 'n Taste is easy for marketers to deliver and fun for consumers to use," says Jay Minkoff, president and CEO. "It turns a one-dimensional advertising message into an interactive and entertaining taste experience." For more details, visit www.firstflavor.com.

ANNOUNCEMENT: Esko Offers New Website Experience

Esko, the world leader in packaging pre-production solutions, announced that its website, www.esko.com, has been completely redesigned and will offer new content and an intuitive, stylish format. The new site reflects a graphical style that is consistent with Esko's distinctive corporate branding and puts a clear focus on the company's system integration, its software and solutions. It stands for straight-forward digital communication in an efficient environment.

The website supports a number of innovative new features. The new navigational path clearly displays Esko's products, solutions and the markets that are actively addressed. Visitors can easily go from the home page to the information they need, thanks to a new user-friendly page format. The homepage also highlights the latest news, events, and contact information to provide a clear and quick visual reference for visitors. Esko's new site also offers expanded multimedia options, such as the Scope Demo Movies.

White Paper: Measuring Package Design ROI

Ever wonder how much an effective new package design campaign means to the bottom line? A few years ago, Rob Wallace, managing partner at Wallace-Church, tried to quantify that package design ROI. For the "Proving Our Value" white paper, and other articles by Rob, click here.