Toasting to Profits
The success of the global alcoholic beverage market is nothing short of intoxicating. According to Research and Markets, the world’s largest market research store, the market is expected to experience moderate growth and reach an estimated $1,369.5 billion by 2018. Opportunities aren’t reserved for D-list celebrities hoping to book an appearance at a Vegas nightclub. Plenty of printers are profiting as well—just ask Lance Wilson, vice president of sales and marketing for Labels West Inc.
The Woodinville, Washington-based supplier recently pitched in to help a distributor and its ad agency partner develop a national campaign for a new product launch. Part of the project included an interactive label that featured a rather unique construction.
Here, Wilson shares the thought process behind the promotion and explains how distributors can tap into this explosive market.
Describe a beverage promotion of yours that you consider one of Labels West Inc.’s best.
Lance Wilson (LW): Labels West Inc. worked with a distributor who partnered with an ad agency to develop a national campaign for a large alcohol beverage producer. The campaign was for a nationwide new beverage product launch that involved TV spots, print ads as well as POP pieces placed in retail stores.
What items were featured in this promotion, and what influenced that decision?
LW: The featured item in this promotion was an interactive label. For the new product launch promotion, the consumer had the opportunity to receive a free personal service after purchasing the product. Each six-pack of beverages had a label applied that was designed to encourage further interaction with the consumer. The label featured multi-ply label construction with a unique variable code inside that the consumer could use to redeem online.
How was this a profitable promotion for your company? For your distributor client?
LW: Labels West Inc. was selected to provide the labels due to the complex multi-ply label construction with variable data. This is not a typical commodity item due to the specific manufacturing capabilities required. The unique aspects of this type of label construction provide a good opportunity for distributors to make a decent margin.
Did you encounter any challenges with this particular promotion? If so, how did you overcome them?
LW: This project had some challenges aside from the unique construction of the label. The promotion required that the 500,000 labels be kitted with other promotional items and shipped to approximately 350 locations nationwide. The promotional items included in the kit were all provided by the distributor. The timeline was very tight and arrival dates were critical to the product launch, which had already been promoted in the media. To ensure that the requirements of the project were met, a detailed production schedule was created, extra staff was brought in, and our information technology crew created some changes in our process to automate shipping and packaging requirements.
Is there anything you would like to add?
LW: We would advise distributors to develop an alliance with marketing and advertising firms because these companies typically have established relationships with major brands. Distributors are in the position to be a single source for a wide range of products. They bring print expertise among many different mediums, such as traditional printing, promotional items, apparel, signage and POP pieces.