Press Release Summary:
- Quest Brand Power Flex Pricing shows the power of brand by maintaining low budgets of packaging
- Provides Ultra Premium, Premium and Classic retail price point segments for expressing the brand idea within budget perspective
- The guidance program targets on volumes about truck-load with a volume of about 25,000 - 30,000 bottles
Original Press Release:
Quest Provides Innovative Budget Planning Guidance on Packaging Costs That Optimizes the Power of Brands Across Multiple Budget Levels. An Industry First for Spirits and Wine Brands
NEW YORK, May 15, 2019 /PRNewswire/ -- Quest, the Premium Package Realization™ company, announced at LUXE PACK – NEW YORK today, an innovative starting point for discussing package costs and budgets early into the creative development process for new brands and restaging existing brands. The method is called "Quest Brand Power Flex Pricing"™. The method illustrates how a higher retail price affords more adornments in how the brand can be expressed in its packaging. This may seem intuitive, but Quest is able to show how the power of the Brand Idea can still be maintained even with lower budgets for packaging. The new method suggests guidance of 10% of the retail price be the starting point for budgeting package costs that include glass, decorating, closures, cartons.
"We are regularly asked by start-up brands how much they should invest in their packaging to launch a new brand. Even established brands are looking for guidance for repositioning projects and line extensions," said Quest CEO Ingrid Cornehl. "Over the course of the last 20-years of working with some of the biggest, most successful wine and spirits brands, there seemed to be an observed rule-of-thumb. That is, about 10% of the retail price was a good starting point," Ms. Cornehl stated, "and, spirit brands tend to have more room for spending on packaging than wine brands."
Quest demonstrates how this works with eight different brand that include red and white wines, sake, flavored gins, American whiskeys, aged rums, mescal, and even a schnapps. Three different retail price point segments show how the 10% guidance to express the Brand Idea needs to change from a budget perspective. These segments include: "Ultra Premium" (defined as $5 or more in Spirits; $3 or more in Wine packages); "Premium" (defined as $3 - $5 in Spirits; $2 - $3 in Wine packages); and, "Classic" (defined as $3 or less in Spirits; $2 or less in Wine packages). Quest is showing this at the Luxe Pack New York starting today and to customers by appointment. Despite these different price segments, Quest is able to demonstrate how the Brand Idea can remain strong and very compelling even with lower budgets if there's a strong creative concept.
There are some caveats to the "Quest Brand Power Flex Pricing"™ guidance which Quest VP Sales and Marketing Dennis Sones raised. "Larger volume brands will have built-in efficiencies that allow for great buying power so the 10% guidance may be too high. Our guidance is really targeting volumes that are about a 'truck-load' in volume, about 25,000 - 30,000 bottles. In some cases, the beauty of the spirit inside the bottle is so beautify that it should be featured; in that case, the brand may want to spend more on the quality and clarity of the glass to showcase that feature or, spend more on a heavier bottle. The overall guidance sill makes sense however, you might spend less on the decoration part of the package cost structure."
"The starting point of this new guidance is the retail price of the product, which requires careful consideration, especially among new brands," mentioned Ms. Cornehl. "Some new start-ups don't spend enough time to consider the market implications of the retail price. Higher retail prices surely affords more margin to do more creative things in your package, but higher prices have a direct proportion on the size of your Total Available Market. Conversely, lower retail price points allow your brand to be considered by more buyers but with that comes more competitors. As a brand partner to our customers, we always start with this discussion before we start looking at creative concepts. We hope our new guidance will help customers optimize their brand idea regardless of retail price point."
Quest is the Premium Package Realization™ company that provides total package solutions including glass, decorating, closures, and cartons. As brand partners, we have a point of view with one goal of helping our customer's brands stand out on retail shelves, in restaurants and bars, and at home with friends and family. We are the industry leader in environmentally safe and durable direct to glass screen printing and coatings and offer the broadest portfolio of solutions. www.byquest.com
For more information, contact:
Vice President Sales & Marketing
Stockton, CA 95206