First published in BC Craft Beer News. This article focuses on craft beer, but the principles outlined here are applicable to almost any category.
We liken this to creating a blueprint prior to building a house. If you have an understanding of things like how many rooms you want, if you want the option of adding a second level one day, if you can predict what climate you’ll likely face, you can build your house with a considered, efficient approach.
Just like a blueprint for a house, we work with our client partners to develop a brand blueprint. As most craft producers don’t have the resources to build their brand through mass media channels, packaging becomes even more important, as it becomes the lead touch point for a consumer to engage with your brand prior to purchase. For us, the discipline of beginning with a brand / packaging architecture strategy always leads to better work and better results. Most motivational speakers will say that you need to visualize what success looks like prior to attempting to achieve it. The same can be said for packaging. Like any brand communications, packaging benefits from a strong strategic backbone. Jump ahead 5 years - if you are to enjoy the success you dream of (be realistic) – what will your brand’s presence in a retail environment look like? Will you have a couple of dusty singles hidden somewhere in the corner, or will you have a vital presence of a few sku’s enjoying a nice turnover that you can use as a platform for pulsing seasonals or special editions which help constantly bring some attention and regeneration to your brand? If you pick the latter, ask yourself what will your presence look like?
You need to visualize what success looks like prior to attempting to achieve it.
Most motivational speakers will say that you need to visualize what success looks like prior to attempting to achieve it. The same can be said for packaging. Like any brand communications, packaging benefits from a strong strategic backbone. Jump ahead 5 years - if you are to enjoy the success you dream of (be realistic) – what will your brand’s presence in a retail environment look like? Will you have a couple of dusty singles hidden somewhere in the corner, or will you have a vital presence of a few sku’s enjoying a nice turnover that you can use as a platform for pulsing seasonals or special editions which help constantly bring some attention and regeneration to your brand? If you pick the latter, ask yourself what will your presence look like?
Will you be a “branded house,” a “house of brands,” or a hybrid?
To answer that question, you first need to make a critical decision way back at Mile 0. Will you be a “branded house,” a “house of brands,” or a hybrid? This decision is important because not only will it make an infinite number of future decisions on packaging design and naming conventions easier, but it should also reflect the personality and objectives of your corporate brand.
To illustrate - a “branded house” is the system where the corporate name is central in the communication. 33 Acres of Life, 33 Acres of Ocean, and 33 Acres of Sunshine all come from, yep, you guessed it, 33 Acres Brewing. Four Winds Saison, Four Winds I.P.A, and Four Winds Pilsner … all from Four Winds Brewing Company. Bomber Brewing, Steamworks, Okanagan Spring, Granville Island (prior to their recent spin off subsets – Black Notebook Series and Under the Bridge Series), Persephone Brewing, Red Hook, Sierra Nevada, and countless others are all examples of breweries that follow this approach.
At the extreme other end is the “house of brands” approach … think Labatt’s Alexander Keith’s, Blue, Kokanee, and Wildcat. Or more locally, think Pacific Western’s Cariboo, Canterbury, TNT, and Pacific Pilsner products – each of them a brand on its own, its own distinct customer base, and its own look, feel, and tone.
And then there is the “hybrid model” in the middle somewhere along the tiered continuum, enjoying either an obvious linkage to the maker or a more discrete one, yet still observable. R&B Brewing’s new packaging (which we worked on) is a great example – all their brews come from the same source, each benefiting from the endorsement that it was crafted by R&B, but each has its own identity: Raven Cream Ale, East Side Bitter, Birra Fresca, etc. Another successful example of this approach is Phillips Brewing’s Blue Buck Ale, Hop Circle IPA, Elsinore, and Analogue 78 Kolsch. Or Driftwood with their Fat Tug IPA, Farmhand Saison, White Bark Witbier, and Crooked Coast Altbier. Each system leaves room for each beer to have its own identity and personality, but its lineage is understood – with the maker casting a halo of endorsement on each product.
In the “branded house” model the source and what it stands for is the hero – it’s what people will seek out and look for. This works well if the parent brand or source brand is strong and transfers positive equity to each product. So, if you visualize your brewery (or distillery, winery, meadery, cider house, etc) standing for something – a way of doing things, embracing a specific tradition, using a specific ingredient, offering something unique (gluten free), leading with a “branded house” approach may make the most sense. Having multiple flavours in this visually consistent model can create great shelf blocking and findability (*up to a point – more on this below).
In the “branded house” model the source and what it stands for is the hero
On the other hand, the “house of brands” approach may be best if you feel the products / styles you’re offering are so different or that they appeal to different groups and that having the common source obvious may actually do each product a disservice for their respective audiences. Or perhaps you’re wanting to specialize in a very specific sub-segment – having multiple brands in the same category can either help you gain market ownership of that category – or even bring some credibility and interest to that sub-segment by the nature of critical mass. This approach requires that each product get more resources and attention to make them successful.
A “Hybrid Model” could be best if you believe people will search out the specific flavour / style first – but having the maker’s endorsement provides a seal of quality, or a seal of craft, or a seal of experimentation (whatever you want your parent / source brand to represent). When the parent brand is strong, the source helps legitimize the product. When the parent brand is weak, the task of legitimizing belongs to the product. This model allows for plenty of opportunity for product extensions, however, the larger the portfolio, the more management is required to maintain the relationship between parent / source brand and the products.
A "Hybrid Model" could be best if you believe people will search out the specific flavour / style first – but having the maker’s endorsement provides a seal of quality....
For craft products, this “hybrid model” also provides additional benefit of offering room for growth. While a very tight and consistent branded house approach can give your product line up increased findability within a store, as you become too successful this can work against you, as some craft customers unfairly equate critical mass with mainstream popularity. The recent listing of the largest independent brewers in BC (BC Business Magazine June 2014) lists Phillips at #2 – and they deserve the success they’ve worked hard for – but what made this ranking so surprising is they don’t feel that ubiquitous. Largely in part because they’ve followed a loosely linked endorsement system – where each of their products has its own personality, at times overshadowing the source brand.
"hybrid model" also provides additional benefit of offering room for growth.
Every approach is valid – it just comes down to what is right for you and what best reflects your business and brand strategies. By identifying those early on, you’ll save yourself money and be more likely to achieve the success you’ve visualized.
Cheers!
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