Packaging as a key attribute to product sales
Successful business’s and brands understand the importance of seeing packaging as a key attribute to their products, but why is it so important? Richard Reed the co-founder of the Innocent believes it is the most important aspect of marketing a Fast Moving Consumer goods range (FMCG) Speaking at the business funding show he went on to say, I think realistically for most FMCG products the packaging is more important than the product® Stated reed. It is how you get noticed and create desire, and input what it is that you stand for®.
Reed highlights the importance of brands getting the packaging 100% right before investing in any marketing. As a company we much prefer to be included the whole way through the design process, clients can tap into our constructional and design knowledge.
Reed see’s Innocent’s first attempt in entering the orange juice market is the most compelling example of this.
Innocent’s first attempt resulted in failure with the supermarkets, due to them only achieving sales of £4m. As a result of this the supermarkets delisted them. However, when they tried for the second time they had achieved a turnover of £80m in the second year.
Over the two attempts the product itself did not change, nor the price or the brand. What changed was the packaging, putting the product into a plastic bottle and calling it a AÎÌøcarafe’.
The changes in Revenue are staggering. Reed believed that the consumer did not know the products existed at their first attempt as it looked the same as all there competition.
This case study example really shows the importance of getting the packaging right and creating the right looks in your market for your products.
Where do you stop with packaging? Is seasonal packaging necessary?
Keeping the trend on the importance of packaging for the FMCG, should this be developed further, changing seasonally to align with the important yearly holidays?
65% feel holiday candy should have seasonal packaging (NCA 2015), this stat alone shows there is customer expectation involved in this decision.
The problems that arise with providing this service when you get it wrong it can be very costly. Having to offer price reductions to get rid of left over seasonal candy can affect profit margins. A
lot of consumers look out for price-reduced candy for the obvious price advantages.
Hershey’s in America came up with a simple solution to extend the shelf life of their seasonal products over Halloween. They used autumn themes and colours instead of using ghosts and witches.
Could this cause confusion?
It seems to us, seasonal packaging does work, but you have to handle it with care, it speak volumes if the largest brands in the market place are very selective with how they go about their
seasonal branding and packaging.
We have been acquiring expertise in packaging solutions for 35 years, feel free to tap into our hard earned knowledge! Contact us now