| Date post: | 05-Apr-2018 |
| Category: |
Documents |
| Upload: | akshay-taneja |
| View: | 219 times |
| Download: | 0 times |
of 14
8/2/2019 Label Presentation - No Pictures
1/14
COMMODITY:LABELS
byTom BlackwoodJennifer SmithEmily Tisdale
8/2/2019 Label Presentation - No Pictures
2/14
Introductiono Labels are key to success
o New brandso Impressions on consumers
o Different methodso Different processeso Many suppliers
8/2/2019 Label Presentation - No Pictures
3/14
Identify the Commodityo Provide a great deal of informationo Detail & processes influence perceptiono Rules & regulations of the TTBo 90% of consumers purchase based on labelo Study by University of Bordeaux, Franceo Some unique labels
o Bonnie Doono Kenwood W inerys Artists Series
8/2/2019 Label Presentation - No Pictures
4/14
Alternatives to TraditionalLabels
o Silk screeningo Custom etchingo Apropos Wine Designs in Santa Barbara,California
o Custom laser etching w/ hand painted designso Personal designso Fully customizable Apropos stock design
8/2/2019 Label Presentation - No Pictures
5/14
Materials & Manufacturing
Processeso Pressure Sensitive
o Waterless offset lithographyo Flexographyo Gravure
o Foilo Embossing
8/2/2019 Label Presentation - No Pictures
6/14
Sourcing & Manufacturing
Cost Analysiso Quality from start to finisho Advantages to pressure sensitive labels
o Glue costs can be eliminatedo Easier to clean up, reducing labor costso Multiple labels (i.e. front and back labels) can
be on the same sheeto Can be applied to the bottle at the same time
o Reduces costs for bottling line equipment
8/2/2019 Label Presentation - No Pictures
7/14
Sourcing & ManufacturingCost Analysis Cont.
o Draw backs to pressure sensitive labelso Can curl and bubble once applied to the bottleo Difficult to remove from bottleo Difficult to check when received
o Rolled to tension for bottling lineo Glue has shelf life of 1 year
8/2/2019 Label Presentation - No Pictures
8/14
Pricingo Custom Wine Labels
o $2.79 per case per 1,000 case ordero Includes all layout, design, color separations andcoordination but not varnish
o Varnish can be included, if foil is usedo Price per 1,000 cases increases to $3.39
8/2/2019 Label Presentation - No Pictures
9/14
Pricing Cont.o Lightning Labels
o $0.23 per label, or $2.76 per caseo Included is the cost to purchase a special die for
our labelso Not included by Custom Wine Labels
o Price per case will be gradually reducedo If same design is used - die can be used from year toyear
8/2/2019 Label Presentation - No Pictures
10/14
Pricing Cont.o Jonergin Pacific
o Face label more importanto Spend more money on face label
o This is what the consumer sees firsto $0.80 to $1.00 per case
o Includes the front and back labelso Embossing additional cost of $0.05 per 1,000 case order
o Inexpensive way of adding dim ension and styleo Does not include the price of the dies
o Stamper - $350 to $400o Embosser - $650 to $800o Flat - $250 to $350
o Between 250,000 and 300,000 labels a dayo Jonergin Company became ISO 9002 Certified in 1994
8/2/2019 Label Presentation - No Pictures
11/14
Negotiation Strategyo Many suppliers unwilling to negotiate
o Refuse to talk unless guaranteed a saleo Considerations in choosing a supplier
o Locationo Long, well-established businesso Worked with many winerieso Ability to do many processes & many colors
o Versatility
8/2/2019 Label Presentation - No Pictures
12/14
Negotiation Strategyo Jonergin Pacific
o Negotiation of price granted for more stable businesso Includes planning all stages of wine label production
o Other varietalso Minimum three year contract
o Not in best interest to use more than one suppliero Jonergin Pacific wants a long-term contract
o Price discounto Ensure quality and consistency
o Form alliance w/ Jonergin Pacifico Focus on communication, continuous improvement andquality
8/2/2019 Label Presentation - No Pictures
13/14
Sourcing Strategyo Joseph Phelps Vineyards ("JPV")
o Multiple sourceso Label over 10 different wines
o Different price pointso Bottling during different months of the year
o More concerned with reputation of the supplier than costo Long-term, strategic alliance with JonerginPacific
o Single source for all wine label productiono Jonergin Pacifics parent headquarters located inMontreal, Quebec, Canada
o Global marketing perspective to benefit us in expansion
8/2/2019 Label Presentation - No Pictures
14/14
Conclusiono Choice for supplier of labels: Jonergin Pacific
o Our label is the key to successo Many suppliers that are more expensiveo Willing to negotiateo Proximity to wineryo Stable, trusting relationshipo Experience in global marketplace
