BRAND BUZZ
THE IMPORTANCE OF
PROPER TIERING
IN SPIRITS BRANDING
WRITTEN BY
DAVID SCHUEMANN
Distinct pricing, clear hierarchy, product connection, and thoughtful planning are crucial for consumer engagement and vertical growth.
P
roper tiering plays a powerful role for
discounting and to build in an intrinsic
they are ready to splurge for a special
growing craft distilleries. Designing
value proposition by making it more
occasion, they are more likely to purchase
expensive looking than its price.
within your brand—a brand they already
the packaging appropriately for each price point, product type and quality
Top tier offerings need to set themselves
level is crucial in order to avoid confusion
apart as true luxury products, more
amongst the various tiers. When designed
limited and of superior quality. Here, the
properly, a tiered system will help attract
appearance of scarcity and something
consumers seeking products at particular
truly unique is paramount to supporting
price points and provide a strong family
a larger price tag. Often, consumers
look for your brand portfolio. If designed
seeking more premium or icon brands
improperly, products in a tiered system
are more experienced connoisseurs that
envision your brand growing? In the
may
one
will be looking for certain luxury cues
future do you foresee adding SKUs such
another’s sales by appearing too similar in
and information on the package that
as flavor extensions, an aged product that
quality or price, or worse, be so disjointed
communicates items such as specific
is in barrel now, or a more affordable or
that brand recognition is not achieved.
distilling methods, ingredient sources,
premium tier?
limited production, etc.
Make sure to discuss your long-term
inadvertently
cannibalize
PROPER TIERING PROVIDES CLARITY FOR THE CONSUMER. For example, entry-level products are often targeted to consumers who are uncertain about what product or brand they should choose. Entry-level packaging should be eye-catching and inviting to the consumer, and should reinforce the product’s quality without over promising. Mid-level
offerings
are
often
the
“workhorse” of a portfolio and should be designed with a strong value proposition in relation to the competition. Often, packaging at this level is designed to appear visually more expensive than the actual price point in order to avoid
know and trust.
THREE MISTAKES TO AVOID WITH TIERING
1
.FAILING TO PLAN AHEAD. Think long-term: how do you
While certainly not all consumers will
goals with your branding team so that the
be able to afford a crème-de-la-crème
design system created easily allows for
offering, proper tiering can allow your
growth and extension into future SKUs
most premium tier to provide a “halo
and tiers.
effect” of quality that extends to your
For instance, if you know that after the
other products. This establishes a value
launch of your primary product(s) that
proposition by leveraging the credibility
you may later add a more premium or
earned by your “top shelf” offering, and
limited offering, you should be careful to
applying it to your entire portfolio.
choose a design that is flexible enough
Properly tiering your brand’s offerings
to be extended without risking confusion
will allow consumers to access your brand
with your existing tier(s).
at the tier that fits into their comfort zone,
Even if you’re unsure of your future plans,
leading to greater repurchase rates and
be careful not to pigeonhole yourself with
brand loyalty. Then, as your consumers
a branding solution that is not flexible and
become more sophisticated or when
easily extendable. Although no packaging
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