Soda-alternative beverage categories, such as water enhancers and flavored waters, are experiencing fierce competition as new brands enter the fast-growing market segment. To compete against current category leaders in the crowded beverage aisle, new companies need to prioritize package design, according to a new report“Package Design Trend Watch: The Beverage Aisle" from global marketing technology company Affinnova.
Food Product Design had an exclusive sneak peek at the report’s findings that revealed why packaging design is so important to a product’s success, or in some cases, failure.
The Study
The study was conducted in April 2014 and involved input from 5,000 U.S. consumers who were asked to rank top designs in key beverage categories based on their ability to grab and hold consumer attention, strengthen consumer brand perceptions and help convert consumers to purchase.
Affinnova used its Design Audit technology to analyze brand package designs across five categories—Liquid Water Enhancers (MiO, Minute Maid, Kool-Aid and Skinnygirl); Energy Drinks (Red Bull, Monster, NOS, AMP, Venom, Starbucks); Flavored Sparkling Water (Sparkling ICE, Perrier, Acquafina and Walmart Clear American);Flavored Enhanced Water (Vitaminwater, Sobe Lifewater, Nestlé Pure Splash and Hint); and Sparkling Orange Fruit Juices (Izze, Honest Fizz, Q Orange, San Pellegrino and Orangina,)
Key Findings
In the energy drink category, relatively newer brands—NOS and AMP—have struggled to gain share against Red Bull and Monster, despite the distribution and advertising muscle of their parent companies, Coca-Cola and PepsiCo. Results of the study suggest that inferior package designs by NOS and AMP are primarily to blame because they fail to attract consumers’ attention or drive purchase at shelf. However, in the sparkling watercategory, recent entrant Sparkling ICE used effective package design to overcome limited distribution and advertising support, beating out long-established category leaders like Perrier.
“Package design is the least expensive and most essential part of the marketing mix, helping to drive trial, repeat purchase and brand equity—yet it only gets a fraction of the attention that advertising or promotion receive," said Affinnova President and CEO Waleed Al-Atraqchi. “Brands that put energy into creating strong package designs gain a tremendous competitive advantage."
The report singled out three brands using package design to their advantage—Minute Maid, Starbucks and Pepsi.
- Launched in 2011, Kraft’s MiO established an early lead in the water enhancer category. However, Coca-Cola’s new Minute Maid offering closed the gap by building brand awareness through exceptional package design. Its design scored highest with consumers for brand equity, outperforming MiO in every brand personality trait, including “wholesome," “fresh," “flavorful" and “natural."
- Red Bull and Monster lead the energy drink category in revenue, but Starbucks’ “Double Shot" and “Refreshers" brands have gained ground by using package design to attract consumers who seek softer, less macho brand qualities. Starbucks’ package designs are perceived as the most “healthy," “safe" and “down-to-earth" in the category, and are more appealing to women by a 2:1 ratio.
- In newer beverage categories, Pepsi’s designs are overall outperforming Coca-Cola’s. Coca-Cola’s enhanced water offering—Glaceau Vitaminwater—trailed Pepsi’s Sobe Lifewater for grabbing consumers’ attention and driving brand equity through package design. In the sparkling fruit juice category, the package design for Pepsi’s Izze brand converted twice as many purchases as that of Coca-Cola’s Honest Fizz.
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