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The Challenge

In recent years the Israeli alcoholic beverage market has become more sophisticated, with a wider and more interesting range of alcoholic drinks. There are more and more stores and chains that specialize in alcoholic beverages, and even breweries and distilleries producing local Israeli alcoholic beverages. This trend, which appears to be the start of an ‘Israeli drinking culture’, can be seen far more in the beer and wine categories than in spirits, which are priced higher than beer and wine. Following tax reforms, which came into effect at the end of 2014, spirits have become even more expensive than beers and wine.

Before the brand entered the market, the online alcohol market was consisted of individual players operating in more or less the same way: a ‘virtual branch’ of an existing retail chain (such as Hinnawi, Beit Hamashkaot Shel Naftali, etc.). These digital platforms are neither user-friendly nor convenient, their service does not meet the high expectations of the target audience (out of stock items, long delivery times) and they all define themselves as “the cheapest on the market”, and they look cheap. In other words, the online alcohol market is one of net cost.

PANECO recognized this opportunity and decided to launch an online store specializing in popular leading alcoholic spirit brands. They will be giving their target audience a real value, combining great prices (among the cheapest in the market) with excellent service (free and fast delivery, stock, etc.). 

Our task was to develop the concept and brand experience, and to launch the brand in Israel. 

The Solution

Although PANECO’s central benefit is prices that are significantly lower, even by comparison with existing online stores, the positioning we defined for the brand does not relate to price alone. The chosen brand positioning is: “Premium experience at an excellent price”, which points to the fact that PANECO focuses only on leading alcoholic spirit brands (as opposed to direct competitors) as well as their aspiration to take ownership of the online market with a convenient and user-friendly platform and excellent service.

The branded concept developed for PANECO has a very clear character; PANECO is not just an online store, but rather a type of ‘members club’ which offers its customers excellent products at excellent prices. Accordingly, the chosen slogan for the brand is “High quality alcohol, delivered to your door.” The brand identity we have designed is clean, simple and minimalistic and includes a uniquely developed set of icons, along with an elegant color scheme (black, white, cream and brown/gold), to indicate an “affordable premium” offering, and convey a confidence of a market leader. 

The brand’s advertising concept takes into account the strict limits on advertising alcohol on the one hand (consumption or purchase of alcohol cannot be encouraged, only the bottles and prices can be shown, etc.), and on the other it takes ownership of the online alcohol market. The concept makes use of the bottles themselves, but in order to demonstrate the fact that leading brands can be delivered straight to your door; the bottles have been turned into wheeled vehicles.

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