Marketing Your Boxed Wine Product
Boxed wine can be launched as a product line extension, a brand extension, or a new brand!
Product line extension and boxed wine.
A product line extension is the concept of taking product identity, and putting new products under the same brand name. An example would be the “ XYZ Winery” making a Cabernet Sauvignon in glass bottles, and creating a 3 liter fine wine box of the same Cabernet Sauvignon.
A product extension needs to build upon an existing product identity and equity that is already established, from similar products inside bottles and boxes, maintaining package design, and consistent marketing messages.
New boxed wine extensions create opportunities for the winery and sales channel to market the boxed wine alongside the product line. A benefit to highlight to sales channel buyers (and subsequently consumers) is the ability to “try before you buy”, e.g., buy the bottled version and test the product before committing to the higher quantity in a boxed version. One of the more common points of resistance on boxed wines 3 liters in size or greater is the caution among some channel buyers and consumers of “getting stuck” with a wine that may not be to their taste.
The product line extension also provides flexibility to on-premise that builds upon the benefits of both packaging options. Restaurants can list the bottled version on wine menus, and yet offer the same wine by-the-glass from the boxed version – and realize greater profits from pricing differences and less waste.
Brand extension using boxed wine packaging.
A brand extension comes about from a company venturing into new products with a well-known brand established in another product category. This scenario leverages the brand equity already established in the other product category, while adding new benefits important to the target market for the new brand extension.
Brand extensions are often an introduction into a new market and new distribution channel. Companies outside of the wine industry need to become thoroughly familiar with the regulation and distribution challenges inherent in the wine industry. Partnering with an existing winery initially can be a great course to offset the regulation complexities and capital investments of a winery start-up.
Marketing the new brand extension will be dependent on the core brand products. Companies should target markets and demographics that already are loyal to the core brand products to maximize the equity established.
Creating a new brand with boxed wine.
Creating a new brand is straightforward as it sounds. The company creates a whole new identity, with no attachments or overt connections to other products or brands made. The winery creates a brand with desired attributes and benefits.
As many in marketing know, this is both the easiest and most difficult product to launch. It is the easiest because one does not jeopardize any existing and starts with a clean slate. It is the most difficult because one is starting anew and effort must be made to create brand awareness and equity. Every new brand is a new sales pitch for a space on the retailer’s shelf.
A new brand is a new start-up. Like a new start-up, all of the components of marketing must be created and in-place prior to launch. While the opportunity to leverage existing distribution partnerships may exist in sales, the distribution partners will need the same level of assistance in selling to the trade account tier as any new brand requires. The winery should draft a short-term or mid-term marketing plan in advance of the boxed wine project to anticipate the effort and resources that will be needed to insure its success.
