Spectra Vino Case Study | Arch Insights

Summary

Spectra Vino came to Arch Insights with the idea for VYBZ Wine, a unique concept for a DTC wine, looking to position their quality wine as a competitive choice in the social alcoholic beverage market. The brand concept associated each varietal of wine (e.g., Sauvignon Blanc) with a vibe, or emotion (e.g., CAREFREE). Arch conducted in-depth qualitative market research, collecting detailed reactions to four wine varietals in the VYBZ Wine line from potential consumers.

Some changes the brand made based on insights from Arch:

Based on some participant concerns about connecting negative emotions with drinking, VYBZ Wine swapped their ANGSTY and DARING varietal names for BLISSFUL and CHEEKY.
Many participants felt that the name "SMITTEN" was more suited to a red wine than a rosé; SMITTEN was changed to a red wine and the rosé became BLISSFUL.
VYBZ Wine updated their bottle art to more accurately reflect and embrace diversity.

The biggest takeaways for us came from respondents identifying blindspots that we had before their feedback. For instance, we hadn't considered how many people would feel concerned about negative emotions like Angsty or Daring being tied to an alcoholic beverage. This helped us totally pivot on two of our VYBZ Wine varietal names, which is a big shift. Another example was the respondent(s) that called out concerns about Smitten having a woman of color on it and being hypersexualized, which we certainly did not intend but quickly decided to shift based on the feedback.

TANNER SNIDER, VYBZ WINE

Setting the Stage

A Fresh Pour for Young Connoisseurs

Premium wine brand Spectra Vino was looking for a refresh, a new way to break into the Direct-to-Consumer (DTC) wine market. Previous research revealed an opportunity for Spectra to enter the DTC wine market targeting younger, less experienced wine consumers.

This demographic has a high openness to learning about new brands, particularly through social media [42% of Gen Z drinkers report learning about new beverages or new beverage brands through advertisements on social media (Numerator)]. They’re also more willing to pay a high price point for luxury alcohol [44% of Millennials opt for luxury wine, compared to 31% of the general population (Food & Beverage Insider)].

To differentiate themselves from the numerous brands marketed as social alcoholic beverages to Gen Z and Millennials, Spectra Vino developed the brand concept for VYBZ Wine with a value proposition of “bold, bright, and emotive” wines that fit every mood.

The Challenge

Determining How to Redefine Wine's Role in the Young Social Scene

Spectra Vino came to Arch Insights with two known challenges:

The growing preference young consumers have shown for spirits or seltzers as their social drink of choice in recent years - in a 2021 survey, consumers ages 21-34 were 13% less likely than consumers ages 35-44 to bring wine to share at a party (source)

The relatively high cost of customer acquisition

How could they position quality wine to be a competitor for spiked seltzers in the social lives of young consumers? Spectra Vino looked to Arch Insights to uncover the keys to brand resonance for VYBZ Wine that would accomplish their goal.

The Approach

Qualitative Exploration into Consumer Preferences

We conducted in-depth qualitative market research interviews to assess young consumers’ current drinking behaviors and to get their reaction to the VYBZ Wine brand concept.

To address growing consumer preference for seltzers, we focused on collecting insights from individuals that were social consumers of both wine and spiked seltzers. We used a client-approved screener survey to source participants that were social consumers of both wine and spiked seltzers with fair-to-no wine knowledge.

To address the high cost of customer acquisition, we explored imagery and messaging, drilling down to the words and image attributes that resonated best with potential consumers. These takeaways aim to inform the VYBZ Wine strategy to maximize impact and optimize paid ad performance.

Working with Arch was smooth and insightful from start to finish. The team quickly helped guide us to the right types of questions we should be asking to get the best insights out of the qualitative interviews. They were adaptable to the materials we had ready at the time, which is important for a fast-moving startup with a limited amount of resources. Two things were big differentiators for us: 1) the deep knowledge that the Arch team had to be able to guide us in the right direction on the questions to ask (and therefore the results we ended up with, and 2) the speed at which the team was able to get us valuable insights so that we could make product and design decisions quickly.

TANNER SNIDER, VYBZ WINE

The Results

How Arch's Research Shaped VYBZ Wine Strategy

The brand initially opted for varietal names "DARING" and "ANGSTY," aiming to evoke a certain lively emotional resonance with consumers. However, these selections carried undertones not in alignment with potential customers' views on healthy alcohol consumption. They chose new varietal names, BLISSFUL and CHEEKY, to promote a more positive association, better reflecting the convivial atmosphere that the brand aims to foster.

What We Heard From Participants

Although initially earmarked as a rosé, consumer feedback indicated that the term "Smitten" resonated more deeply as a red wine. This shift reflects the brand's commitment to creating high-quality wines with a meaningful emotional alignment between the product and its name.

What We Heard From Participants

Some potential consumers voiced concerns about the choice of a Black woman for the initial SMITTEN label. This modification highlights the importance of listening to consumer input to ensure that well-intentioned efforts to include diverse models are not perceived as playing into harmful stereotypes.

What We Heard From Participants