“Packing” A Punch – How Packaging Impacts Sales

“Packing” A Punch – How Packaging Impacts Sales

Recently, the Financial Express published piece on how packaging impacts sales. Our post will distill some of the key points about the importance of packaging.

Impulse Purchases Drive Some Categories

The Financial Express makes a great point early in the article about how products are purchased. Many products are purchased based on price or ingredients, but their are tons of categories, where attention grabbing packaging wins. Below is an excerpt from the article about the brand, Parle Argo’s Frooti.

“Take, for instance, Parle Agro’s Frooti. The mango juice brand, which has been been around for decades now, changed not only its logo but packaging as well earlier this year to give away its child-centric image and take on a bold and contemporary look.

The rebranding exercise done almost six months back by London-based design firm Pentagram saw the company unleashing a R100 crore marketing campaign. It focused towards building better brand recognition, apart from relatable and strong on-shelf visibility. Says Nadia Chauhan, joint managing director and chief marketing officer, Parle Agro, “At Parle Agro, we have always believed and invested in the power of packaging as we have seen the impact it has on driving impulse purchase. Especially in a category like ours where impulse is a key driver, building strong brand identities and unique package designs delivered in consumer friendly pack formats is absolutely key.”

 Photo: Financial Express Photo: Financial Express

Packaging Research

Below is an excerpt from the article on the different research options that many brands are using.

“Brands, from time to time, do conduct research to understand the market as well as consumers’ needs, in order to arrive at the right packaging mix.

Though different brand owners have different approaches to, and opinions about research—how much, what type, how extensive etc—it would be unusual (and possibly, even reckless) not to do research before committing to a pack redesign. United Spirits’ Royal Challenge refreshed its packaging and communication to cater to the newer breed of Indians who are bold, determined and spontaneous. Says the company’s CMO Amrit Thomas, “Brands that invest in understanding consumer needs, evolve with speed, innovate through consumer-aligned products and positioning, are more likely to win the hearts and wallets of consumers.”

We agree that brands of all sizes are starting to see the value in doing extensive research into package and product design. We have helped many brands learn important and subtle insights about their designs. We use eye tracking in context with consumers to best understand how consumers interact with packaging in the store. We pair that with qualitative survey after the eye tracking study, so that we can easily compare what they said they did with what they actually did in the store.

Packaging Innovation Drives Consumption

Packaging innovation is critical to revamping traditional categories and creating new categories. Packaging innovation should deliver value to the consumer whether it’s smaller sizes, more cost efficient, or just makes them feel “cool.” Below is an excerpt from the article that focuses on “on-the-go” packaging.

“Packaging can also help drive occasions of consumption—’on the go’ varieties such as squeezy packs for ketchups or ‘party’ packs (carbonated soft drinks brands); ‘hang out’ packs (chips brands); ‘family’ packs (Cadbury’s, or ice-creams), packs for ‘friends’ (Cadbury’s Shots or even Domino’s Pizza); ‘gift’ packs; and much more. Therefore, there are innovations in the size, shape, openings and closures, in designs, even in secondary packaging.”

Below you will see a few images of the Sonoco Institute of Packaging Design and Graphics at Clemson University. Package InSight is a partner of Clemson University. We license and utilize this incredible facility on campus to run our eye tracking studies and rapid prototyping/innovation projects. To find out more about the Sonoco Institute, visit: http://sonocoinstitute.com/

The Sonoco Institute of Packaging Design and Graphics at Clemson University

Our Thoughts

The title of the article says it all. Packaging has to “Pack” a punch! Consumers must be able to notice you at the shelf, but the user experience is just as important. We have to get ahead of the competition with innovative steps forward in packaging. We have a team and a proven methodology that can do just that for you. Reach out and let’s talk about how we can help you develop the next packaging innovation to transform your category.

Full Article: http://www.financialexpress.com/article/industry/companies/packing-a-punch

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