THE POWER OF PACKAGING
WHY DOES PACKAGING MATTER?
A product’s packaging plays a crucial role in ensuring commercial success. When it comes to convincing new customers to buy a product for the first time, the effectiveness of the packaging is generally more important than the effectiveness of the product itself.
While the overall experience a customer has once they have purchased a product will determine whether or not they buy it again, packaging is often what influences their decision try it in the first place.
A 2018 study found that 72% of consumers surveyed confirmed that their purchasing decisions were influenced by a product’s packaging design.
A product’s packaging serves three key roles. Each has the ability to increase revenue and drive commercial outcomes. These are: sales, marketing and functionality.
SALES:
Packaging sells products – that’s no surprise. It’s also no surprise that packaging designed to suit the needs of retailers is much more likely to be stocked in stores. Effectively designed packaging can lead directly to increased desirability and representation amongst potential stockists, and as a result – customers, leading to an increase in sales and revenue.
Successful packaging can act as a product’s own instore sales person, communicating key selling points to potential customers. Products with packaging that is strategically designed to outshine and outsell its main on-shelf competitors are able to reap the rewards. Utilising principles of consumer psychology, it’s entirely possible to position a product favourably using direct counter claims and comparisons, so that it becomes more compelling than its competitors.
In a rapidly evolving retail landscape, ensuring a product’s packaging looks great and performs exceptionally, online as well as in-store, is imperative to secure higher sales and encourage increased representation across multiple platforms.
MARKETING:
Packaging provides an opportunity to differentiate product offerings and target specific market segments or price points. It can be used to increase sales and employ diversified market strategies. Successful packaging can increase brand equity and in turn enhance customer loyalty and increase brand value.Product packaging forms a key consumer touchpoint and acts as an exclusive platform for communicating with the target market and expressing a product’s key selling points and unique brand personality. Ensuring that packaging is on-brand, unique and recognisable nurtures brand loyalty and encourages repeat business whilst also protecting established market-share from competitors with similar products.
Effective packaging can significantly add to the perceived value of a product. Scientific studies have consistently shown how a product’s packaging can alter a customer’s perception towards the product and has even demonstrated examples where packaging alone has enhanced consumer’s perceptions of the flavour of food contained within.
FUNCTIONALITY:
In its simplest form, packaging performs a series of important logistical functions that can dramatically influence the commercial success of a product. Packaging needs to be able to protect the product it houses, often during long periods of transport, warehousing, and retailing.
If product packaging is not designed with a sufficient level of consideration and expertise, it can result in lost revenue through a range of factors including: increased product returns; reduced sales as a result of damaged products; unnecessary shipping costs due to size and construction; as well as unnecessarily high production costs through poorly considered materials and processing.
Good packaging is the ultimate multi-tasker. It needs to be able to perform a range of tasks, in a range of conditions throughout a product’s lifecycle. It is critical that a product’s packaging is designed with this in mind in order to ensure a positive experience along its entire journey – right from the moment it is pitched to the retailer before leaving the factory, finding its way onto shelves and into the trolley right the way until its eventual disposal.
Considering factors like durability for products that are stored in certain environments such as refrigerators as well as those that are handled regularly is important. Successful packaging delivers products to customers in optimum condition. As an example, olive oil is packaged in dark glass bottles to protect it from ultraviolet rays that damage the product.
Considering the origin and the disposal method of materials used in packaging is becoming increasingly important, as customers, stores and even global marketplaces make purchasing choices with these factors in mind. Issues such as sustainability, environmental impact and ethical production are key considerations for many customers and it’s expected this trend will further accelerate.
GETTING IT RIGHT:
When it comes to making outstanding, high-performing packaging that helps products succeed in the marketplace and achieve commercial results, partnering with a specialist is vital.
Totemo Creative is an award-winning studio specialising in branding and packaging design. With a team of expert creatives possessing an invaluable collection of unique commercial insights garnered over decades of experience as well as a vast print and production network, Totemo is the perfect partner. Our focus is always to ensure packaging is performing at its best to achieve commercial objectives.
Contact us now for an obligation-free chat to learn more about how we can help you achieve greater results through strategic packaging design.
