VODKA PACKAGING How the top vodka brands stack up on shelf

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VODKA PACKAGING How the top vodka brands stack up on shelf
VODKA
  PACKAGING
  AUDIT
......................................................................
  How the top vodka brands stack up on shelf

                                        An E-Report by
VODKA PACKAGING How the top vodka brands stack up on shelf
INTRODUCTION                                                                                                         in

Affinnova Package Design Audits
On shelf competition has never been higher, with             the strength of a brand, a physical package must
consumers having more options and variations                 convey the appropriate messages, reasons to
of products to choose from than ever before.                 believe and entice a purchase. Brands must focus
What that has meant to marketers is that                     on the design of their package as much as their
the package design of physical products is                   target audience, pricing and production costs in
extraordinarily important. If a product isn’t                order to achieve significant retail results.
standing out on shelf it’s losing the battle for
relevance, mindshare and ultimately revenue.                 With that in mind, Affinnova has embarked on
                                                             an exercise in actively “auditing” package design
In fact, we know that more than 50% of purchase              effectiveness across a number of key consumer
decisions are made at shelf for the majority of              categories – everything from bubble gum to vodka
products, according to recent data. Regardless of            to see who is truly “winning the battle on shelf.”

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The goal of these reports are to:

1.   Show which brands consumers most associate with key product category personality attributes
     (Sexy, Approachable, Fun, Celebratory, etc.).

2.   Find which package designs are gaining the most share of attention on shelf.

3.   Reveal areas where package design is positive or negatively affecting overall brand perception
     among consumers.

4.   Yield qualitative consumer critiques that illustrate which creative elements are resonating positively,
     as well as negatively, within each “pack.”

                                                                          * Affinnova audited these 12 popular vodka bottle designs

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VODKA PACKAGING How the top vodka brands stack up on shelf
EXECUTIVE SUMMARY                                                                                                                                                                    in
Vodka, as a product category, is inherently interesting. As the                                                                                               State of the

                                                                      .....................................................................................
leading growth driver in the distilled spirits market (see sidebar)
                                                                                                                                                              Vodka Market
there have been consistent innovations in the vodka category
with different flavors and mixes. However, traditional unflavored                                                                                             According to a report by
vodka remains the pillar of the spirits industry, which means                                                                                                 the Distilled Spirits Council’s
brands must be incredibly effective in their marketing, advertising                                                                                           Economic & Strategic
and package design efforts. For this package design audit we                                                                                                  Analysis Dept. released last
chose vodka for a number of reasons, including:                                                                                                               year, vodka has become
                                                                                                                                                              the backbone of the spirits
Package Trumps Taste                                                                                                                                          industry, accounting for
Numerous studies have shown that consumers become attached                                                                                                    32% of all volumes. In 2012,
to a vodka brand due to marketing and advertising, rather                                                                                                     65.2 million 9-liter cases of
than the quality of the actual product. Standing out on shelf                                                                                                 vodka were sold in the United
and having a bottle that effectively communicates the brand’s                                                                                                 States, generating $5.5 billion
attributes more often than not drives purchase behavior. It’s also                                                                                            in revenue for distillers.
been established that consumers become more attached and                                                                                                      Reflecting American’s
loyal to a specific brand over time based on brand perception                                                                                                 desire to drink better,
and “status.” Blind taste tests have revealed that even self-                                                                                                 Super-Premium brands lead
proclaimed brand advocates routinely pick different vodkas as                                                                                                 category growth – increasing
their favorite.                                                                                                                                               by 10% in volume in 2012.

                                                                                                                                                              In a note released on June 28,
Competition Is Intense:                                                                                                                                       2013 by analysts at Bernstein
More than a dozen international vodka brands are in the                                                                                                       Research and reported on
market currently, vying for a piece of the $5.5 billion pie. Well                                                                                             CNBC.com, “Vodka continues
established brand such as Absolut, Smirnoff and Grey Goose lead                                                                                               to grow strongly in the U.S.,
the way, but brands like Skyy have overtaken previous industry                                                                                                ahead of the broader spirits
leaders including Stolichnaya. While Smirnoff is still the category                                                                                           market.”
leader, more than doubling the next closest competitor in terms
of volume, high growth brands like Ciroc (47% growth in 2013)                                                                                                 According to the same story,
continue to grab market share. Even single digit gains in terms of                                                                                            in the last four years the
growth can mean huge profits for ownership entities like Diageo                                                                                               value of take-home sales for
and Barcardi.                                                                                                                                                 vodka has surged by 22.5%.

                                                                                                                                                              Vodka makes up 31% of the
Diverse Package Designs:
                                                                                                                                                              total sales value of the U.S
In vodka, the design and appeal of the bottle is just as
                                                                                                                                                              spirits market, according to
important as the product that resides within. Brands have been
                                                                                                                                                              the latest data from IRI.
painstakingly careful in measuring what should and shouldn’t be
part of a bottle design. Some have chosen to try to stand out
and grab attention, while others have remained true to traditional
roots and existing brand perceptions. One thing is certain; vodka
bottles are incredibly interesting from a design perspective.

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VODKA PACKAGING How the top vodka brands stack up on shelf
INTRODUCTION                                                                                                             in

Design Audit Methodology
Affinnova’s Vodka Brand Audit was conducted                           that had consumed at least one vodka drink in
in February of 2013 and included 500 nationally                       the past month. Furthermore, 98% of respondents
representative vodka drinkers in the United States,                   indicated they typically drank vodka at least once
who were asked to evaluate the top 12 brands of                       a month or more.
vodka currently in market. These vodkas included
Smirnoff, Absolut, Ketel One, Skyy (limited run                       A mix of internal collaboration as well as
bottle), Tito’s, Belvedere, Stolichnaya, Svedka,                      collaboration with existing clients determined the
Grey Goose, Ciroc, Pinnacle and New Amsterdam.                        key personality traits within the vodka category,
Participants were self-identified vodka drinkers                      which included:

  Sophisticated   Traditional   Celebratory   Sexy     Intelligent   Friendly   Approachable   Fun    Trusted   Modern   Genuine

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  METHODOLOGY

For this study, half of consumers were only asked                     eye tracking test, followed by a word association
personality questions about brand names while the                     exercise, then asked to click and comment on the
other half were only asked personality questions                      specific areas of the package design they liked and
about the designs. Consumers were put through an                      disliked, in order to provide qualitative feedback.

   A screened panel of                               Respondents engage in                                They complete
category users is selected                           web-based eye-tracking                            evaluations for design
    for measurement                                        exercises                                      personality and
                                                                                                            diagnostics

  OUTPUTS

Using of various feedback mechanisms the                             Personality Profiles and Effective Package Design
Affinnova technology platform, various                               elements. And because consumers are shown the
measurements can be taken both qualitatively                         package designs in a virtual shelf environment, they
and quantitatively, including Shelf Impact, Brand                    are viewed in a competitive context.

Share of attention analysis                           Personality profiling for                       Click based likes, dislikes,
 for each package viewed                              each brand versus pack                         and verbatims for each pack
      in shelf-context
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VODKA PACKAGING How the top vodka brands stack up on shelf
KEY FINDINGS                                                                                      in

        High Performers/Underperformers:
•   Absolut, Smirnoff, Stolichnaya and Svedka have bottles that under-perform across several
    personality metrics vs. their brand equity alone.

•   Belvedere, Ciroc, New Amsterdam, Pinnacle and SKYY have bottles which convey stronger
    personality metrics than their brand alone.

•   Kettle One is showing potential packaging weakness, with average personality traits and
    open-ended comments indicating “old.”

•   Absolut, Pinnacle and Svedka do the best at attracting consumer’s attention on shelf.

•   Pinnacle and Svedka capitalize on that attention by disproportionately holding it, whereas
    Absolute does not.

•   Tito’s has the weakest personality of the tested bottles and brands.

        Up and Coming Brands:
•   Belvedere’s package significantly helped the brand personality by boosting all traits except
    Traditional. Significant positive effects occurred with Intelligent, Approachable and Modern.

•   Skyy’s limited run bottle design improved brand perceptions in a number of personality traits,
    including Celebratory, Sexy, and Fun. These are key personality traits for the 18-35 consumer
    demographic.

        Broader graphic design traits/commonalities:
•   “Imported” continues to be an important graphic treatment, with consumers responding positively
    to the country of origin.

•   Consumers are drawn consistently to the center of the bottle, with some brands taking full
    advantage with impactful graphics, logos and text. Others are falling short and not taking full
    advantage of that critical space.

        Package Design Personality Data:
•   Absolut scored higher in Genuine, Friendly and Approachable with their bottle design with men
    than it did with women.

•   Among women, Skyy and Ciroc were seen as far and away the Sexiest bottles.

•   Among 21-34 year olds, Stoli’s bottle is seen as much less Modern compared to perceptions with
    the 35 plus group.
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VODKA PACKAGING How the top vodka brands stack up on shelf
HOW THE BIG 3 STACKED UP                                                                                                                                 in

A look at how the Top 3 Vodka brands stacked up

  Grey Goose
Grey Goose’s bottle design performed above the average
for Visibility (Consumers looking at the package in the
first 4 seconds) slightly, with a 7% boost over the indexed
average, and outperformed at holding attention, with a
9% boost in Share of Attention score over the indexed
average.

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                                                                                                   Brand Personality        Pack Personality
                                                                                                                                                    Absolut
                                                                                                                                                 Absolut’s bottle
                                                                                                                                               design performed
                                                                                                                                                    well on shelf,
                                                                                                                                               scoring above the
                                                                                                                                                indexed average,
                                                                                                                                                    but is pulling
                                                                                                                                               down the brand in
                                                                                                                                                 a number of key
                                                                                                                                                personality traits,
                                                                                                                                                particularly Sexy.
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                * Brand personality score indicates consumer perception of brand name only. Pack personality is
                  consumer’s perception of the actual bottle design.

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  Smirnoff
While women associate the Smirnoff brand with Sexy, men do not. Smirnoff is
viewed as vastly different, as a brand, between younger and older vodka drinkers.
Younger drinkers see the brand as Modern, Celebratory and Fun. Smirnoff’s bottle
design evokes largely positive associations, with a strong orientation around
being Traditional and classic.

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VODKA PACKAGING How the top vodka brands stack up on shelf
DETAILED
  AUDIT
  RESULTS
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VODKA PACKAGING How the top vodka brands stack up on shelf
PACKAGE PERSONALITY PROFILES                                                                                           in

Branding is a crucial managerial task and                                 categories or more. Meanwhile, Ketel One lagged
consequently a major dimension of marketing                               behind in all but Traditional, while Tito’s couldn’t
theory and practice. Two important aspects of                             get higher than ninth for any brand attribute.
branding are: (1) brands have personalities or
human-like characteristics that distinguish them                          Some interesting package perceptions also
from each other, and these personalities are                              emerged on a demographic level, with men and
important to consumers; (2) consumers become                              women, as well as younger and older groups
“engaged” with brands, meaning that they feel                             having different views of each bottle design. For
special emotional and symbolic connections                                example, women viewed Stolichnaya and Tito’s
with certain brands.” (Goldsmith and Goldsmith,                           as nearly equal in terms of Sophisticated as a
American Journal of Management vol. 12)                                   personality descriptor.

Knowing that brand personality is crucial in                              Meanwhile, Absolut’s bottle performed better in
establishing credibility and equity with target                           Celebratory, Intelligent, Genuine, Trusted, Fun,
consumers, Affinnova chose eleven important                               Friendly and Approachable among the 35 plus
personality traits most commonly associated with                          group than it did with the 21-34 year old group.
the vodka category, then worked to establish the
brands that had a corresponding package design                             Finally, the 21-34 year old group found the
that lead the way within each trait. The below                            Smirnoff bottle to be Fun, Friendly and
chart shows where each vodka bottle ranked in                             Approachable. By comparison, the 35+ group
terms of design personality traits. Absolut, Grey                         found Absolut’s bottle design to be Fun, Friendly
Goose, Skyy and Smirnoff took the top spot in two                         and Approachable.

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VODKA PACKAGE PERSONALITY PROFILES

* Personality rankings are based on entire panel size for men and women                                       www.affinnova.com   08
VODKA PACKAGING How the top vodka brands stack up on shelf
DESIGN           VS.   BRAND PERSONALITY                                                                            in

After measuring overall personality of package               helping to lift the brand. Not surprisingly,
design, we then compared these results against               there is often a very wide gap between
consumers’ perception of the brand. This shows               existing brand perceptions on the whole and
potential areas of erosion, where the package                perceptions of the package on shelf. A wide
design is actually weighing down consumers                   gap often indicates the need for a package
perception of the brand in the market. It also               re-design, to better align with existing brand
reveals areas where the package design is                    personality traits.

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Design vs. Brand Personality Winner:

     Belvedere Vodka                                                                         WIN
                                                                                                     NER
Belvedere’s bottle design is elevating its brand in nearly every personality
category, but most notably Intelligent, Approachable and Modern.

•    It’s clear Belvedere has an opportunity to capitalize on these package
     perceptions via advertising and marketing campaigns that reinforce them.

•    Belvedere finished first in package personality for Intelligent.

•    Respondents had an overwhelmingly positive reaction to the image of the
     mansion, commenting that it was stately, regal and classy.

•    Belvedere does not stand out well but overcompensates by holding the attention
     of those who take notice

                                                                                            Brand Personality    Pack Personality
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VODKA PACKAGING How the top vodka brands stack up on shelf
SHELF IMPACT                                                                                                                     in

A critical indicator of a successful package design                Participants were taken through a benchmarking
is its ability to quickly grab consumers attention                 exercise using Affinnova’s patented survey
on shelf and hold that attention for a long period                 methodology with eye-tracking technology, which
of time. As a part of the audit, we measured this                  assesses the inherent ability of a package design
impact for each of the brands we tested.                           to be noticed within the context of competition,
                                                                   free of distorting biases Affinnova can measure:

         •       VISIBILITY: % of consumers looking at a package in the first 4 seconds

         •       SHARE OF ATTENTION: % of time the average consumer spends on each package in
                 the first 4 seconds

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In the below graphic, 100 is the average score                      decrease above the indexed average that each
for Visibility and Share of Attention for package                   package received. (i.e.: Pinnacle saw a 39%
design eye tracking. The corresponding number                       increase over the average design for Share
above or below 100 represents the increase or                       of Attention).

PACKAGE SHELF IMPACT

    VISIBILITY

                                           * Visibility and Share of Attention go hand in hand. Visibility measures if a pack was seen at all in
                                             the first four seconds, while Share of Attention measure how long it was focused on once seen.

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SHELF IMPACT                                                                                                          in

Shelf Impact Winners:                                                          VISIBILITY           SHARE    OF   ATTENTION

•   Absolut, Pinnacle, and Svedka do the best at attracting consumer’s attention, with all three performing
    well beyond the average in terms of Visibility as well as Share of Attention.

•   Pinnacle and Svedka capitalize on that attention by disproportionately holding it (both 30+% increase in
    the indexed average for Share of Attention), whereas Absolute does not

•   Belvedere does not stand out well (6% below the indexed average for Visibility) but overcompensates by
    holding the attention of those who do take notice, seeing a boost of 22% over the indexed average for
    Share of Attention.
                                                                                                          39%
                                                                                                                         34%

                                                                                              22%
                                                                         19%                                       19%
                                                                               13%                  10%

                                                                                                                  INDEXED AVG
                                                                                        -6%

Shelf Impact Losers:
•   Smirnoff was below the average for both Visibility and Share of Attention. It is currently the world’s No. 1
    selling vodka and last went through well-publicized bottle redesign in 2003.

•   Ciroc, despite scoring well in a number of key personality traits, fell well short of the competition on shelf.
    The bottle tied for last in Visibility and second to last for Share of Attention.

•   Despite having a relatively good Visibility score, Smirnoff was the least effective at holding attention at
    25% below the average.

•   Tito’s did not score well in either Visibility or Share of Attention, falling more than 10 points below the
    average in both.

                                                                                                                  INDEXED AVG

                                                                                                     -6%
                                                                                        -9% -8%
                                                                          -12%                                      -12%

                                                                                                                         -20%
                                                                                 -23%                      -25%

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CLICK AND COMMENT DIAGNOSTICS                                                                    in

As part of the audit, Affinnova engaged                that can be made to existing packaging, in
consumers to provide free form commentary              order to more closely reflect the current brand
about their likes and dislikes of the package          perceptions. Consumers click design elements
designs they reviewed. This exercise is useful         they like most and least, with each click
in revealing design elements that are viewed           prompting the consumer to elaborate with free
positively and negatively, to help shape a potential   form feedback. Affinnova’s technology then
new design.                                            detects zones of interest and analytic summaries,
                                                       where verbatim feedback is collected and
Click and Comment Diagnostics also analyze             available through an interactive viewer.
performance results to inform design refinements

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CLICK AND COMMENT DIAGNOSTICS                                                  in

How consumers view the Big 3 bottle designs

    Absolut
•   The Absolut logo is seen as
    overwhelmingly positive in terms of
    text, color and message. (zone A)

•   The handwritten history is the most
    polarizing aspect of the bottle.
    It’s viewed as equally positive and
    negative by consumers. (zone B)

•   Many liked the fact that the
    product is imported. (zone C)

...................................................................
                                                                  Smirnoff
                                                    •     Overall, the Smirnoff pack is
                                                           well liked with limited and
                                                           diverse negative response.

                                                   •     Consumers like the red color,
                                                       think it’s classy and stands out.

                                              •   Consumers frequently note liking
                                                  the triple distilled claim. (zone A)

                                              •   The logo near the cap is seen as a
                                                   positive (zone D) and stands out

...................................................................
    Grey Goose
•   Grey Goose’s bottle communicated
    its “French” origin and “good”
    reputation.

•   The landscape in the center (zone A)
    is viewed positively, with many liking
    the scene and imagery.

•   The “Imported from France”
    message (zone B) received some
    negative feedback, but was overall
    viewed positively
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ABOUT AFFINNOVA                                                                                                                                                              in

Affinnova’s Technology
Affinnova helps companies bring their best                                                                                     to fully explore their ideas and create a wide space
product, advertising and design ideas to market.                                                                               of product, advertising or design possibilities.
                                                                                                                               That creative space of ideas, often representing
Traditional creative research tools and techniques                                                                             millions of variations, is then processed by
typically force trade-offs between creative                                                                                    patented evolutionary algorithms using individual
exploration and accurate prediction. Marketers are                                                                             and collective consumer feedback to find the
forced to suppress creativity to reliably analyze                                                                              optimal concepts or executions that are then
one or two ideas, or work through complex                                                                                      measured against competitive benchmarks to
processes with long cycle times that still end in                                                                              predict performance and provide actionable
sub-optimal executions.                                                                                                        business insights.

By contrast, Affinnova’s technology platform                                                                                   Affinnova’s technology can be applied to a broad
fully unleashes the power of creativity through a                                                                              range of creative executions, including product
combination of collaboration software, evolutionary                                                                            concept development, product packaging,
optimization technology and predictive analytics.                                                                              communication strategy, traditional/digital
Affinnova’s collaboration software empowers teams                                                                              advertising, web/mobile site design and store design.

 1                                                                                                             2                                3

                                          Explore                                                                       Optimize                                 Act
               Collaboration Software                                                                              Evolutionary Algorithm           Predictive Analytics & Insights

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     . . . . . . .. .
                        . .. . . . . ..
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                                                            .                                       . .. . .
                                                    ....
                                                                .....
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                                                                                                      Watch our                    Request a Demo of
                                                                                               Intro to Affinnova video             Affinnova Studio
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CONTACT AFFINNOVA                                                                     in

* Interested in your own Package Design Audit?

   Click this link or email:

...................................................................

                                  * Learn more about Affinnova’s Package Design Solutions

                                                                 Click this link to see our video

                                      Contact Us!
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