Gift packaging encourages higher price acceptance
In November 2013, in collaboration with Ipsos Observer, STI Group confirmed the impact of packaging on spirits sales. A representative online survey of German people aged 18 - 70 years was conducted.
Over 65% of respondents bought spirits at least occasionally; 56% of recent purchases were not for personal consumption but intended as a gift, or for guests.
2/3 of the purchase decisions for spirits are made at the POS
Only a third of spirit buyers planned their purchase; two thirds made their decision at the POS, with 28% of purchases being totally spontaneous. Fifty per cent of the shoppers who planned to buy spirits only made their final brand decision once standing in front of the shelf or display. These findings underline the relevance of attractive product presentation in retail.
But what is the impact on the purchase decision, and on the shopper’s willingness to purchase, if spirits are offered in a gift pack or as a gift set along with two glasses? These further questions were explored by the Ipsos market researchers using a fictitious whisky brand, ‘Hoba’, with a bottle price of €14.99.
Gift packaging increases price acceptance by an average of 27%
One third of the spirit buyers surveyed were willing to pay more for a packaged bottle; among whisky buyers, it was one in two. On average, the packaged bottle price was €16.90; 13% higher than its unpackaged price. For a gift pack with two glasses, consumers would have paid €19.10 – an increase of 27%.