Case study Innovation & Product Design

Augmented Reality: Empower wineries and consumers with smart labeling solution

friends tasting wine near vineyards with augmented reality
Introduction

This case study showcases the innovative solution designed and developed for LabelX startup, to revolutionize the wine and packaging industry using augmented reality technology. As a Product Designer and Business Analyst, my role involved researching, developing product strategy, and designing the AR solution that enables wineries to share their unique story and attributes with their customers, while also reducing packaging costs.

Problem Statement
Wineries and liquor stores:
  • Limited differentiation and difficulty standing out in a crowded market
  • High marketing and packaging costs
  • Environmental concerns and pressure to adopt sustainable practices
  • Difficulty in providing accurate and accessible information to everyone
Consumers:
  • Overwhelming choice and lack of confidence in selecting a wine
  • Dietary restrictions and health concerns
  • Difficulty accessing accurate and trustworthy information about wine

Research & Understanding Target Audience

Gathered data from market research, surveys and interviews with wineries.

  • The Winery Owner

    I want to share my unique story and characteristics with my customers. I'm looking for innovative ways to stand out in a crowded market and connect with new generations of customers. It's important to me that the solution is cost-effective and doesn't require additional printing or packaging costs.
  • The Wine Explorer

    I love trying new wines and experiencing different flavors and aromas. When I'm shopping for wine, I want to be able to quickly access information about the wine's flavor profile, region of origin, and winemaking process to make informed decisions.
  • The Health-Conscious Wine Enthusiast

    I'm always looking for wines that align with my dietary preferences and health goals. I have concerns regarding sulfite levels, sugar content, and calorie count, so I want to be able to access nutritional information about the wine, such as calorie and sugar content, quickly.
  • The Person with Disability or LEP

    As someone with a disability or limited-English proficiency, I find it difficult to access information about the wine provided on traditional wine labels. I'm looking for an accessible solution that allows me to access information about the wine in an audible format that I can understand. Additionally, I want to be able to use this solution independently.

Conducted market research and analyzed existing benchmarks, surveys, and competitive analysis to identify key features and challenges faced by the wine industry and consumers.
Interviewed 5 wineries to understand their needs and pain points related to wine labeling, packaging, and marketing.
Surveyed over 100 wine customers to gather insights on their buying habits, pain points, and preferences when selecting a wine.

Photo of market research and analysis

Key insights

I'm overwhelmed by the crowded wine market. It's hard to find the right wine that suits my tastes. Also, I'm afraid to try new wines and end up sticking to the same old ones.
  • 66%

    of consumers in the US read food and beverage labels for nutritional information, but this information is often not provided on wine labels.

    Source: Food Insight
  • 60%

    of adults report that they have dietary restrictions, such as gluten-free or low-sugar diets, that may affect their wine consumption choices.

    Source: Food Insight
  • 52%

    of wine consumers in the US are interested in learning more about the stories and people behind the wines they drink.

    Source: Wine Intelligence
  • 11x

    Customers who engage with products using augmented reality are 11 times more likely to make a purchase.

    Source: Harvard Business Review

For businesses

Stand out in a crowded market and engage new generations.

For consumers

Discover new products confidently with the personalized tips.

For everyone

Multi-language, audible with interactive and informative labels.

For environment

Save resources, improve logistics and reduce paper-based labels.

Organized bottles on shelf - Photo by Scott Warman on Unsplash
wines and bread on brown wooden chopping board - Photo by Chelsea Pridham on Unsplash

Design Process

The big idea with the Design Sprint is to build and test a prototype in just five days. I worked with a small team and rapidly progressed from problem to tested solution.

sprint design process

Key Features for MVP

These features chosen based on customer feedback, winery needs, and market analysis.

Onboarding questionnarie
AR Scan
Personalized score
Immersive Experience
Audible labels
Multi-Language
Cross-Sell & Rewards
Wineries Dashboard
Bottle of wines with augmented reality objects

Initial Launch Location: North Carolina

To increase the chances of success, we've decided to focus on launching in a single state initially. North Carolina is home to a diverse range of wineries, producing a variety of wine styles including reds, whites, and sparkling wines.

North Carolina's map
  • More than 200 wineries
  • Generates more than $1.7 billion annualy
  • More than 1,800 acres of vineyards
  • NC wines have won over 5,000 awards

Rapid Prototyping

Created low to hi-fidelity prototypes to test and refine the user experience.

user flow diagram lo-fi wireframes for case study
First Prototype: Observing Wine Buyers at Harris Theater 🎉

Initial Prototype: First Two Weeks

I presented the initial prototype to potential users, which included a simplified version of our key features. I conducted a guerrilla test by observing wine buyers and gathered data.


  • 5/10 users interested in seeing recommendations for specific occasions, such as dinner parties or holiday gatherings.
  • 7/10 users indicated that they would like to see food pairing suggestions and nutrition facts for each wine.
  • 8/10 users stated that they would prefer to use the app for future wine purchases.
a bottle of wine with 3d elements

How it works

The app empowers wineries to effortlessly share their unique product characteristics and captivating winery stories with customers. Through the user-friendly dashboard and extensive database, wineries can access a curated list of food pairings, flavors, and aromas, which they can easily customize for their own products.
By simply scanning labels with their mobile phones, users gain access to over 50 complementary data points, akin to having a personalized sommelier at their fingertips. This innovative solution not only enhances user retention but also boosts overall satisfaction.

  • Mobile Apps for Android and iOS
  • No label changes, QR codes, or barcodes required
  • Easy-to-Use management dashboard
AR app - Sign up

Seamless Onboarding

  • Effortless sign-up with Google, Facebook, Apple, or as a guest.
  • Five simple questions to understand wine preferences. These insights enable the system to provides personalized recommendations.

Label scanning & AR

  • The solution eliminates the need for label changes, QR codes, or barcodes.
  • The labels are automatically detected and recognized through the cloud service.
AR Scan
AR app - scoring system

Percentage match

  • Developed an algorithm to analyzes user surveys, scan history, and employs machine learning to provide percentage match.
Hi-fi design

Multi-Language & Audible

  • Enhancing accessibility and international experience.
  • Elevate wine labels with English, Spanish, and Chinese languages, catering to diverse preferences and aiding users with limited English proficiency.
  • Auddible information for users with vision impairment or blindness.
Audible labels - AR
Image Description

50+ unique details and engaging content

  • Added 50 unique details, including the winery's story, style, flavor, aroma, nutrition facts, food pairings, reviews, and valuable health/diet information.
Hi-fi design Hi-fi design Hi-fi design

Low-Poly 3D Design

3d low-poly design

Outcome

As a result, I validated the MVP with a small group of consumers and wineries, and launched a pilot version of the app.
I delivered a short-term and long-term product strategy with key feature solutions that align with their North Star metrics, which guide the product management decisions and help us measure the success of the app.

I loved the app! It had all the information I needed, and the AR experience was really cool. I'll definitely use it again!
  • 75%

    of pilot users explored all the options in the app, indicating high engagement.

  • 60%

    of pilot users indicated that they would reuse the app for their next purchase, indicating a high level of trust.

  • 80%

    of pilot users appreciated the detailed wine information, nutrition facts, and food pairing.

  • 50%

    reduced costs in packaging and labeling for small wineries by using this solution.

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