Evolution of Packaging

AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY

SYNOPSIS

Packaging has been one of the most important tools at the disposal of the product

manufacturer to make its product stand out in the shelf. Beyond shelf appeal, packaging

has also provided protection and containment for the contents. However, until recently

there have been few revolutionary uses of technology to enhance these capabilities or to

add to them.

But this is changing. Advancements in technologies across various domains including the

biosciences, nanotechnology and printable electronics are enabling a new generation of

packaging. This packaging provides a new level of functionality for the whole packaging

system, taking packaging beyond a simple covering, into a form that can truly be called

“smart.” The opportunities presented by this new kind of packaging are extremely

diverse, ranging from new tracking and ID capabilities, through the ability to reduce

health risks from food and pharmaceuticals, to the possibility of creating entirely new

brands. This report is concerned with analyzing and quantifying these opportunities at

every level of the value chain.

When is packaging smart? Packaging can be broadly categorized into the following

types – passive, active, intelligent, and smart.

Passive packaging refers to the traditional packaging that involves the use of a covering

material, characterized by some inherent insulating, protective or ease-of-handling

qualities. The most common example of this type of packaging is a simple plastic bag and

it is the type of packaging that everyone is most familiar with. Active packaging entails

the concept of the package reacting to various stimuli – to keep the internal environment

favorable for the products. A typical example would be a packaging with oxygen

scavenger (an oxygen scavenger can absorb oxygen inside a package to increase the

shelf-life of the item). Both food and electronics use this type of packaging and, again, it

is widely used. Well over 90 percent of all packaging is either active or passive in the

sense that we use the terms here.

Intelligent packaging refers to the concept of making innovations in the design of

packaging that renders it more useful for the consumer. By way of example, intelligent

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packaging would include the packaging of automobile oil, where the very packaging

structure makes it convenient for the user to pour oil into his automobile without getting

his hands dirty. Thus, intelligent packaging refers to increasing the functionality of the

package by simply changing the structure of the package, without the addition of any

technology.

Smart packaging on the other hand refers to packaging that is made much more

functional and useful; it involves the use of technology that adds features such that

packaging becomes an irreplaceable part of the whole product. Smart packaging performs

additional functions, responds to stimuli generated by the environment or from the

product being packaged, and reflects the change in a manner that makes the product more

convenient and useful for the consumer or firms in the supply chain. Smart packaging

relies on the use of chemical, electrical, electronic, or mechanical technology, or any

combination of them.

Types of smart packaging: Based on a survey of the literature, NanoMarkets believes

that there are two broad (and overlapping) categories of smart packaging.

The first type of smart packaging is specifically focused on integrating the packaging into

some kind of IT system for inventory or sales management, etc. This kind of smart

packaging typically employs RFID or Electronic Article Surveillance (EAS) technology

and turns an otherwise conventional packaging into smart packaging, allowing it to be

traced through the value chain or through the exit-doors of a retail store.

The second type makes use of a variety of technologies to make the packaging

inherently smart. This may also involve RFIDs or EAS, but goes further than this

to include a plethora of technologies ranging from those that provide self-heating

capabilities, through those that indicate the freshness of a product, to those that

provide instructions and pricing on a small integrated screen. This kind of smart

packaging can further be categorized in terms of technological complexity. This

division of smart packaging can be made in terms of whether it utilizes a single

technology or whether it uses a combination of two or more of them. Though the

current smart packaging relies on the use of both types of solutions, there is

increasing focus on innovations that utilize multiple technologies. Exhibit 1-1

illustrates single technology usage along with examples. Exhibit 1-2 illustrates

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some multiple technology usage, also along with examples. Some of the

examples provided have not yet been commercialized, but are expected to be in

the next couple of years.

Exhibit- 1-1

Single Technology Usage Packaging

Technology Example of Packaging Company

Mechanical

Electrical

Electronic

Chemical

Liquid shoe polish

Battery indicators

Talking pizza boxes

Moisture-free packaging

Kiwi

Duracell

Mangia Media, Inc.

Appleton

Source: NanoMarkets

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INTRODUCTION

What is Packaging?

In general terms, packaging is the container that is in direct contact with

product itself, which holds, protects, preserves and identifies the product as

well as facilitating handling and commercialization. More specifically, and

following, there are three types of packaging:

Primary packaging is in direct contact with the product, such as perfume

bottles.

Secondary packaging contains one or more primary packages and serves

to protect and identify them and to communicate the qualities of the

product. It is normally discarded when the product is used or consumed.

Following the previous example, this would be the cardboard box that

contains the perfume bottle.

Finally, tertiary packaging, which contains the two previous ones and its

function, is to distribute, unify and protect products throughout the

commercial chain. This would be the cardboard box that contains several

bottles.

In marketing literature, packaging is considered to form part of the product and

the brand. So, for example, for packaging is a product property or characteristic,

whereas for Olson and Jacoby (1972) packaging is an extrinsic element of the

product, that is to say, it is attribute that is related to the product but that does not

form part of the physical product itself. Price and brand are also extrinsic

elements of the brand and; these are the most important extrinsic values when it

comes to deciding what products to buy. Keller (1998) also considers packaging

to be an attribute that is not related to the product. For him it is one of the five

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elements of the brand together with the name, the logo and/or graphic symbol, the

personality and the slogans. Packaging is presented as part of the buying and

consuming process, but often it is not directly related to the ingredients that are

essential for the product to function.

The view that Zeithaml (1972) sustains lies halfway between these two positions.

He considers packaging to be both an extrinsic and intrinsic attribute (an intrinsic

attribute is one that cannot be changed without altering the physical composition

of the product). For example, if we refer to the non-drip top, packaging is an

intrinsic attribute; but if we refer to the information that appears on the label,

packaging is an extrinsic attribute.

From the managerial point of view, in order for packaging to suitably develop

its functions, the structural and graphic design of the packaging and even the

optimum size of the pack will be subject to market research undertaken by the

company and the positioning that the company wants the product to occupy in the

market. So, packaging is, without doubt, specifically related to the strategic

decisions of the marketing mix and, therefore, to positioning decisions.

From the consumer perspective, packaging also plays a major role when

products are purchased: packaging is crucial, given that it is the first thing that the

public sees before making the final decision to buy. This function has increased

with the arrival and popularization of self-service sales systems, which have

caused packaging to move to the foreground in attracting attention and causing a

purchase. Prior to this, it had remained behind the counter and only the sales

attendant came between the consumer and the product. Self-service has

transferred the role of informing the customer from the sales assistant to

advertising and to packaging. This is why packaging has been called the "silent

salesman", as it informs us of the qualities and benefits that we are going to obtain

if we consume a certain product. In the current self-service economy, packaging

provides manufacturers with the last opportunity to persuade possible buyers

before brand selection.

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Therefore, all the packaging elements, including texts, colors, structure, images

and people/personalities have to be combined to provide the consumer with visual

sales negotiation when purchasing and using the product. This becomes even

more crucial when the data contributed by Clive Nancarrow et al. (1998) is taken

into consideration: nine out of ten purchasers, at least occasionally, buy on

impulse (Welles, 1986) and unplanned food shopping articles can account for up

to 51 per cent of purchases (Phillips and Bradshaw, 1993).

Why is packaging an important tool of communication?

Packaging could be the most important communication medium for the following

reasons:

- It reaches almost all buyers in the category;

- It is present at the crucial moment when the decision to buy is made; and

- Buyers are actively involved with packaging as they examine it to obtain the

information they need.

In this situation, it is essential to communicate the right brand and product values

on packaging and to achieve a suitable aesthetic and visual level.

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EVOLUTION OF PACKAGING

A study of the evolution of packaging is inextricably linked to the evolution of

consumption habits.

In the rural society, which prevailed until the industrial revolution of the 19th

century, packaging was as rudimentary as the living conditions of the time.

Packaging was often standardized and could be used for a number of different

purposes: transporting food, wood or tools. It was more about receptacles than

about packaging, a role they did not fulfill with much success. The role of

packaging was just to ensure the conservation and transportation of products but

there were considerable losses of resources. The individual was not a consumer

but a user of resources that were essential for survival.

The industrial revolution gave a considerable impetus to the need for packaging.

Mass production and developments in modes of transport created new needs. We

moved from a society where trade was limited and each community produced

goods it needed to a society where activities became more and more specialized.

Products were no longer used by their producer or his or her immediate neighbors,

but were now transported, sold and consumed. New manufacturing procedures

and transport conditions determined the forms that packaging should take. That is

how barrels evolved especially adapted for sea transportation, as well as boxes

that were easy to move and store.

The packaging of products had the principal aims of protecting them and

facilitating their transport, making them available to more people. Retailers would

then simply unpack products before selling them. Individual packaging was not

yet used and no real thought had been given to packaging as a means of

communication or as a sales tool. Products were packaged and then sold in bulk.

Shopkeepers handled the products, weighing them and wrapping them

individually, with little concern for hygiene, while their customers watched

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carefully to make sure they were getting what they asked for. Modern society as

we know it was still in an embryonic stage.

The second packaging revolution came after the Second World War, parallel to

the development of the post-war economy. After having been used to serve the

needs principally of the product (protection) and then the producer

(transportation), packaging began to focus on the needs of the consumer.

Distribution systems were in the process of changing radically, from open markets

and small local grocery stores to supermarkets. From then on, packaging was used

for each individual product, so that it was ready to be picked up from the shelf

and taken away by the consumer. The era of self-service had begun thanks to

packaging of pre-packed products. Products were pre-packed. Another

consequence of this new method of consumption was that information about the

product could be printed on the packaging. After all, the shopkeeper was no

longer able to convey the necessary information in a large supermarket.

Consumption rose considerably, as did the population. This was the age of the

baby boom, which was twinned by a consumption boom, packaging being the pre-

condition for the modern retail trade.

Packaged products soon became a much-desired commodity and packaging had to

adapt to the latest trends. It is no coincidence that the mass introduction of plastic

packaging dates from this era. Packaging was to emerge as an industry, and was

automated to keep up with the accelerating pace of developments. Demands for

quality began to rise, thus making ever-greater demands on state-of-the-art

technologies.

The increasing importance placed on the individual and the increase of working

women made it once again necessary for packaging to find a means of surpassing

itself. Consumption became mobile, people were on the move and time was

precious. Packaging faced up to this new challenge by means of vacuum-packed

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food, using materials that could withstand the impact of being taken out of the

deep-freezer to be popped into a microwave.

As if this growing complexity was not enough, consumption also became more

global. Products made on the other side of the world had to be able to arrive in our

shops in perfect condition. Packaging had to be made even more resistant,

protective, and easily transportable.

The (provisional) end of this story is evident in our shops and daily lives. Our

supermarkets are able to offer ever more exotic products, our household

appliances have sometimes traveled many kilometers before reaching our homes,

and our fridges are filled with convenience foods.

Packaging has played a key role in this.

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PACKAGING AS A TOOL OF BRANDING

Have you ever heard someone sneeze and say, “I need a Kleenex”? Then, the

individual frantically searches for the nearest box of tissue, but does not realize

that he or she has become a victim of product branding. The term “Kleenex” is a

brand name of tissue manufactured by the Kimberly-Clark Corporation, yet most

people associate “Kleenex” with any brand of tissue. Similarly, when a

shopkeeper writes “Canon Xerox available here”, he does not realize that Xerox is

not a product but a brand name. The idea that one product, such as Kleenex or

Xerox, can dominate the perception of so many consumers, this idea is referred to

as branding; the idea that a product or manufacturer has a distinctive name. Fully

leveraging the power of company brands is contingent on the establishment of

meaningful dialogue that develops into true relationships with the customer.

Solidifying customer relationships takes time and true marketing strategy. The

development of a strong corporate and brand identity, delivered and messaged

with consistency, has to be rooted in a marketing plan that is truly reflective of

corporate differentiating values. This research discusses the power of branding by

introducing the concept of using packaging as a vital tool in creating a memorable

product brand. Packaging presents an integral part of every company's brand

communications to the customer. Since virtually every product and service in the

marketplace is packaged, it is absolutely crucial that companies "get it right."

Nothing communicates the brand and its values like packaging. At a time when

products enjoy widespread distribution in multiple channels, among an increasing

number of competitors on a global scale, packaging goes a long way to selling the

product.

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This circle shows different communication tools used to convert brand identity

into brand meaning

Package Designers Must Think “Brand”

A case study, which brings this out the best, is the Heinz packaging which had

labels on the bottle with funny messages. A mass brand with a brilliant concept.

Packaging designs for Heinz Tomato Ketchup by Leo Burnett highlights a

growing integration of packaging design and advertising. Burnett, Chicago, led

Heinz towards the brave decision to replace the product name with witty copy

lines in praise of Ketchup such as "14 Billion French Fries can’t be wrong" "Not

Green" and "Your Hot Dogs will Thank U".

The font was not much bigger than Heinz and the different SKUs range of tomato

ketchup packs, brought advertising and packaging design together. With engaging

copywriting, this client understood its audience, with humorous and direct brand

benefit oriented messages.

Bill Schroeder, director of design services for Tipping Sprung states, “A quiet

revolution has changed package design. Designers are now creating packages that

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are not merely memorable, but are also part of a brand” (Schroeder & Sprung).

Today’s packaging designers must design packages that exemplify the “brand’s

promise and values” (Schroeder & Sprung). This includes packaging graphics,

structure, pictures, typography, and materials that help communicate the branding

efforts. This is clearly visible the way Heinz creatively used its packaging.

Heinz Award winning Packaging

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PACKAGING AND POSITIONING

If we examine exactly what the term "positioning" is understood to mean, there

are studies that sustain that its origins lie in an article by Al Ries and Jack Trout

published in the magazine Industrial Marketing in 1969. Other articles published

in the magazine Advertising Age in 1972 under the title “The age of positioning”,

which served to extend and disseminate the term, followed this. According to

these authors, positioning has its origins in product packaging (the concept was

called product positioning). This literally meant the shape of the product, the size

of the package and its price in comparison to the competition. At that time, these

authors announced the start of a new age: "The age of positioning", which

recognized the importance of the product and the image of the company, but,

above all, it underlined the need to achieve a position in the mind of the

consumer. Positioning starts with a product, but it does not refer to the product;

rather it refers to what can be done to the mind of the probable clients or persons

that are to be influenced, that is to say, how to position the product in their minds.

Once the positioning plan has been completed (and the company knows how it

wants to present itself to the market with respect to its competition), the company

implements a plan of action through the construction of a suitable marketing mix.

In this way, it can be said that the positioning of a product induces its marketing

mix (pricing policy, place, products and promotion) (Aaker, 1996). Later on,

marketing mix elements (product, price, distribution and advertising) reach

consumers and contribute to determining the desired product positioning in the

minds of consumers ([17] Maggard, 1976).

If we focus on "communication" activities, the sequence should be the following:

A positioning decision identifies the product characteristics that should be

stressed in the marketing mix, particularly in its communication campaign. In

other words, positioning guides communication action plans ([1] Aaker, 1996).

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That is to say, the origin is a positioning strategy, which provides a base for

several decisions to be consequently followed.

If instead of centering on communication activities, we pay attention to "product"

decisions, we can see that it is composed of several elements. One of these

elements is packaging, which is becoming an increasingly important factor for

several reasons. These are summarized by Underwood et al. (2001) and

Underwood (2003). The first reason that these authors propose is that, when faced

with reduced advertising budgets, brand building expenses are reduced in the

traditional mass media and communication efforts are concentrated on sales

promotions and on point of sale communications. Second, for perishable goods

there is an increase in the purchasing decisions made directly in the shop

(according to the Henley Centre, 73 per cent of purchasing decisions are made at

the point of sale). Similarly, managers are increasingly recognizing that packaging

can create differentiation and identity, above all in relatively homogenous

perishable consumer goods. And finally, the proliferation of the number of brands

in the market and the varied offer that purchasers find at the point of sale force

there to be an increase in efforts to achieve effective differentiation.

The peculiarity of packaging as a marketing element lies in the fact that it often

accompanies the use or consumption of products and, therefore, the possibility of

transmitting brand values and product characteristics increase. With regard to this

aspect the characteristics of a product - its positioning - are permanently

transmitted over seven stages:

Point of sale;

Transporting the product home;

Home storage;

Opening;

Serving the product for consumption;

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Re closing or putting away; and

Disposal.

Packaging plays a major role in communicating brand personality by means of

several structural and graphic elements:

Graphic components: color packaging, typography, the graphical shapes

used and the images introduced; and

Structural components: shape, size of the containers and the materials used

to manufacture them.

In the following discussion there are different positioning strategies with different

packages in terms of different assortment of various graphic components (results

of Importance of visuals to the consumers: a focus group interview results).

PACKAGING AND BRAND PERSONALITY

Packaging the brand’s personality & Integrating Marketing Communication

The package communicates both emotional & functional benefits to the customer

and should be in line with the brand personality. E.g. a pink color of the package

reflects the personality of the brand as feminine, soft, young girl.

In The Visionary Package, branding and packaging consultants Herbert Meyers

and Richard Gerstman argue that package design is the same as the branding of

products and product lines (Palgrave, New York, 2005). This picks up from an

idea first proposed by the late package designer Walter Landor in the middle of

the last century.

Walter's overriding view was that everything you project

into the world goes toward creating your brand. Each

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little piece is of equal importance, equal weight, and has to be appropriate to the

audience it is reaching or the message it is trying to promote. As per Richard

Gerstman “packaging is branding” The brand identity in itself is much more than

just a logo. The brand identity is a lot of things, which eventually lead to what can

be called as brand promise and the reason people buy a brand—value, acceptance

and loyalty. The package reflects that. It identifies the product and the brand, and

promotes the confidence in the brand.

But there are others who seem to disagree. This school of thought believes

Packaging and branding are different things, Packaging is only one expression of

the brand. In many product categories, it is a very important element and may

even be the primary way people interact with the brand but one should start with a

brand definition, one that really connects with people on a deep level. Packaging

should then be used to reinforce that definition. Those who use a package design

to define the positioning of a brand usually get into trouble as they apply the

brand in other media.

But if analyzing both the viewpoints shows that they are dovetailing than

diverging. Their differences, as well as their reconciliation, can be traced to the

fact that for many years packaging designers treated the package as having a

persona—a face projected by the package that facilitated consumer interaction but

which was distinct from the true brand personality.

Modern packaging had the effect of allowing consumers to minimize their human

interactions in the marketplace, just as the human persona had the effect of

reducing social intimacy:

Consumers could get information from package labels that they had

previously relied upon shopkeepers for.

Shopping became less time-consuming and less of an emotional drain

when shoppers no longer felt compelled to share personal information

with the grocer each time they visited his store.

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Packages were especially attractive to people newly arrived in cities

because labeled packages could often be trusted more than could unknown

shopkeepers.

Over time, the ability to trust packages gave way to consumer confidence in them,

and trust became less of a selling point. Manufacturers instead began targeting the

emotions of consumers in an attempt to promote new sales. Breakfast foods, for

example, were now marketed to make parents feel good when serving them to

their children. But the bedrock of these emotional marketing appeals remained the

confidence the consumers retained in the packages.

As a need for building long-term branding strategies was recognized, packaging

designers like Walter Landor argued that the brand personality expressed by the

package should be the same personality that reached the consumer through other

media. In order to achieve this goal, the ephemeral packaging persona had to give

way to an expression of brand personality. A consistent projection of the brand's

personality in the package, and wherever else the brand was encountered, was far

more reassuring to the consumer than a persona that was constantly changing.

There are now more ways than ever for brands to make contact with consumers.

Modern marketing strategies, for example, may rely heavily on public relations,

direct mail, email, the and wherever else the brand was encountered, was far more

reassuring to the consumer than a persona that was constantly changing.

The branded package no longer holds the upper hand but is now a part & medium

of the integrated mass communication. The ever changing persona of the brand is

a sum total of all the communications & most importantly packaging as this is

most tangible proof of the brand’s personality.

Not all corporate packaging strategies reflect the level of integration.

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In terms of communication, however, modern packages are inherently bundles of

contradictions. They engage us consciously and unconsciously. They are physical

structures but at the same time they are very much about illusion. They appeal to

our emotions as well as to our reason. But such contradictions must be reconciled

at the point of purchase.

The well-designed package does just this. When we need to make shopping

decisions quickly, we yield to our emotions. If a familiar then reinforces our

initial favorable emotional response to a package, confidence-inspiring brand

logo, we will have all the more reason to make the purchase. For this sort of

synergy to occur, however, the package design and brand personality must

converge. Anything less and the package are persona non grata.

EXAMPLES

Amazon.com

One can recognize the Amazon brand on the Internet because they have their own

color scheme. The layout that they use is very recognizable. One could say that's

the Amazon package. Of course, the other package is the package you receive

when you order a book.

That other package happens to be a nondescript cardboard box with only the logo

in black to distinguish it from other brown boxes.

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FedEx does a better job of packaging integration. When one goes to his or her

office, the first thing one sees on their desk is the FedEx package. It's so

recognizable. It is in coordination with all the other marketing communication.

The packet of Marlboro carries the cowboy image which reinforces the image of

it being macho & masculine

The use of black & neon colors by AXE deodorant for its packaging makes it

mysterious, playful & wild.

The personality of the perfume Echo by Davidoff is classic & sensuous, the look

of the ad makes one feel surrendered to the Greek god in the picture & the

packaging of the bottle reinforces that image it is of dusk color by the sea in color

with different shades & a picture of a man with vulnerable sensual expression in

his eyes looking through the bottle. The bottle inside is made completely of glass

through which one can see sea blue color.

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The bottle of cool water deep fixes in space the movement of wave, suggesting

both the elemental power of the ocean and the still intensity of its depth. The cool

water is deeply masculine, fresh, elegant & a new transparent facet for modern

masculinity. Powerful, elegant strong yet serene is the brand personality of cool

water

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CASE STUDY

Asian paints

Existing brand personality

Current brand personality was warm but fuzzy

Didn’t have the kind of sharpness that one expects in a leader

It also lacks certain desirable values in terms of contemporariness and

global outlook

In this environment, risk of Asian paints losing the high ground

Desired brand personality

Male, 28 years; Contemporary education and skills

Pioneering and path breaking

Experiment and adventurous

Individualistic, succesful, has quality

Global outlook but is an Indian

Sociable and has integrity

Kind of person who takes complete responsibility for what he does

Always on time; he is a friend, pholosopher and guide to people who are

known to him

Change in Visual identity

A revamp undertaken in the entire packaging and the overall visual

identity of the brand

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A new packaging to give it image of being contemporary and international

Described as innovative, friendly, trendy and fresh, the logo features red

and yellow colors denoting warmth, and the letter `p' in the form of a

brush stroke.

The "drip" effect is also used in the packaging, to give it a "family feel."

Gattu, the lovable mascot, continues to appear on the packaging.

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PACKAGING AS A DIFFERENTIATING FACTOR

Distinctive packaging designs create strong associations with the particular brand.

The leading industry pays much attention to the packaging as the success of a

product and therefore of business depends a lot on it.

The packaging is the final touch in the long process of product creation. It is a

means of communication with the customer both on intellectual and emotional

levels. It can attract attention, arouse interest and desire to buy something and it

often bonds customer to a product for long years.

In a country traditionally driven by advertising, such as the United States, the way

is wide open for packaging to become more sophisticated and prominent, as it has

done in the UK. Although U.S. design managers and brand owners have a vast

territorial area within which to promote their brand message, regardless of

advertising, the ultimate purchasing decision is often made at point of purchase.

This point is where design can really hold its own to create the point of

differentiation. Indeed, this has been emphasized over the last 5-10 years with a

huge shift in where brand owners are choosing to spend their money. It's not that

the above-the-line mass marketing and advertising is "dead," clearly not, but that

the below-the-line stalwarts, such as design, are increasingly making their

presence felt in the marketing mix.

“Packaging is one of the most important variables of [consumer] marketing,” says

Gerardo Saporosi, president of Franchising Group and vice-president of the

Argentine Association of Marketing. “It’s usually more important than advertising

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campaigns. Some products have no advertising budget but they sell very well

because of the way they look.”

According to John Hudson, coordinator of the graduate business school at the

University of Palermo, packaging “is an excellent way to achieve differentiation

(as in the perfume industry, for example.)

Example

In the case of Red Bull, there is no doubt that the product is clearly

differentiated from the typical soda because of its aluminum cans that

have unique, smaller dimensions. He also developed an exterior design

with two colors – blue and silver – that is very easy to distinguish from

other cans.

Marico’s Parachute is a good example of that with its new convenient packaging

for winters, it used packaging as a Point of Differentiation.

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LOCALIZED PACKAGING OR GLOBALIZED

PACKAGES

Global marketing for packaged goods involves greater product and brand

differentiation. When a brand owner seeks to please at a local level it risks losing

its global consistency. From high-touch to high tech, international brands are

struggling to achieve economies of scale with packages and products that would

successfully appeal to an increasingly global clientele.

In 2003, McDonald's announced that all of its restaurants—30,000 in over 100

countries—would soon be adopting the same brand packaging for menu items.

According to a company press release, the new packaging would feature

photographs of real people doing things they enjoy, such as listening to music,

playing soccer, and reading to their children. McDonald's global chief marketing

officer was quoted as saying, "It is the first time in our history that a single set of

brand packaging, with a single brand message, will be used concurrently around

the world." Two years later, the company appeared to backpedal when it

announced plans to localize nutritional value charts on its packages.

To the extent that international brands appeal to global tastes, worldwide

packaging strategies might be expected to show signs of convergence, especially

as consumer tastes around the world become more homogeneous. But there is

little evidence that this is happening.

Computer manufacturer HP strives to convey brand personality on packages that

may need to accommodate text in as many as eight local languages. Fast-moving

consumer goods companies, for their part, have hardly been more successful in

finding global solutions to their packaging needs. Unilever standardizes some

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branded products while localizing others. Procter & Gamble adjusts branding

strategies across borders. P&G markets its brands in Asia under the company

brand name, but in Europe and the US, the product brands are not blatantly

branded as P&G brands.

Herbert Meyers, co-author of The Visionary Package, says he was astonished on a

recent trip to China to see the range of toothpaste offerings there. "The Colgate

packages carried such a variety of promotional copy, all right next to each other

on the same shelves, that they, in my view, made no sense at all," he says.

"Different packages promoted ‘MaxFresh Breath Strips,' ‘Sensitive Breath Strips,

' ‘Advanced Whitening,' ‘Total plus Whitening,' ‘White Teeth in 14 Days,' and

‘Maximum Cavity Protection.'" Adds Meyers, "If I was looking for Colgate

toothpaste there, I wouldn't know which to choose."

The current high level of product differentiation in China may be reminiscent to

some in the United States of the 1980s, when American corporations were busy

extending their product lines to address every perceptible customer preference. In

a 20-month period during 1989 and 1990, for example, Procter & Gamble

introduced 90 new products. By 1994, Colgate and Crest each offered more than

35 types and packages but this situation didn't last. As the manufacturers realized

the power of packaging. Each package had to be different in order to sell

otherwise it leads to self-cannibalization. The brand strategy is absolutely

identical everywhere in the world of Nivea & L’Oreal. It is a rule. And the

products are created to be global, (which means) one name, one concept, one

formula, one packaging, and hence one communication worldwide.

26



PACKAGING AND PURCHASE DECISIONS

The package's overall features can underline the uniqueness and originality of the

product. In addition, quality judgments are largely influenced by product

characteristics reflected by packaging. If it communicates high quality, consumers

assume that the product is of high quality. If the package symbolizes low quality,

consumers transfer this low quality perception to the product itself. The package

communicates favorable or unfavorable implied meaning about the product.

Underwood et al. (2001) suggest that consumers are more likely to spontaneously

imagine aspects of how a product looks tastes, feels, smells, or sounds while they

are viewing a product picture on the package.

Consumer decision-making can be denned as a mental orientation characterizing a

consumer's approach to making choice (Lysonski et al, 1996). This approach

deals with cognitive and affective orientations in the process of decision-making.

Four main packaging elements potentially affect consumer purchase decisions,

which can be separated into two categories: visual and informational elements.

The visual elements consist of graphics and size/shape of packaging, and relate

more to the affective side of decision-making. Informational elements relate to

information provided and technologies used in the package, and are more likely to

address the cognitive side of decisions.

Most FMCG are low involvement products. In low involvement, "consumers do

not search extensively for information about the brands, evaluate their

characteristics, and make a weighty decision on which brand to buy" (Kotler et al,

1996, p. 225). One reason for this is low risk (Chaudhuri, 2000; Mitchell, 1999),

i.e. these products are simply not very important. The lack of substantial

27


evaluation often results in the inability to distinguish much difference among

leading brands (McWilliam, 1997). A common result is relatively weak "habit"

brand loyalty. Thus, when consumers find a brand, which meets their standards,

they tend to stay "satisfied" with it, especially, if they are constantly reminded of

the brand. But they are not very committed, and substitute easily when it is not

available.

Such habit loyalty is fairly common in the West, e.g. IGD (2002a) notes that

about one-third of women shoppers, and slightly fewer men, buy food products

through habit. It is also quite common in Asia. Survey data indicate that

packaging plays a strong role in reminding consumers about the, i.e. it helps to

reinforce habit loyalty.

Some observers, though, note that not all consumers view grocery shopping as a

low involvement activity. Beharrell and Denison (1995) show a range of

involvement among European consumers. Those with higher involvement tend to

be more strongly branded loyal, including willingness to postpone purchase or go

to another store if the brand is not available. In Asia, about 20-40 percent of

consumers for most FMCG shows this level of loyalty, and will postpone or

search rather than simply switch to a substitute (Speece, 1998, 2003).

Clearly, consumer use of packaging elements is quite an important issue for low

involvement products - generally, informational elements require more mental

effort to process than do visual elements, which evoke more of an emotional

response. Some consumers are not willing to put forth this small effort, and

products, which is of truly low involvement for them. Others may consider the

product more carefully, so that involvement level might shift the package

elements, which are most critical.

The results of a focus group study supported the propositions that in general,

Visual elements of the package influence choice of the product to a great

extent, and graphics and color are frequently the major influence.

28


Attractive packaging generates consumer attention by breaking through

the competitive clutter.

Picture vividness has the most positive impact for products with lower

levels of involvement.

However, informational elements are becoming increasingly important

and influence choice.

The participants tended to judge food product performance by reading the

label if they were considering products more carefully. Appropriately

delivered information on packaging generates strong impact on the

consumers' purchase decision. This information reduces the uncertainty

and creates product credibility.

Clearly, packaging is an important marketing tool for products, but the four

elements of packaging stimulate purchase decisions differently. Consumer

evaluation of packaging elements changes as the perceived risk of the

consumption situation increases, and marketers need to know the importance of

the various attributes to best communicate through the package. Visual elements,

graphics and size/shape, positively influence choice more in the low involvement

situation, while informational elements tend to play a key role in higher

involvement decision-making. Time pressure similarly changes how consumers

evaluate products at the point of sale, partly by reducing ability to give attention

to informational elements. Again, marketers must communicate effectively

through the packaging.

29


30


COMMUNICATION HIERARCHIES IN PACKAGING

Clear, concise brand communications are an important part of this strategy, and

should be carefully designed into every product and every product's packaging.

Communication hierarchies are first rooted in brand identity. To be effective, they

should then be carried into packaging to provide visual and emotional triggers in

the customer. Packaging can be used as a means of building and cementing

consumer relationships. Emotionally connecting consumers to a brand is essential.

Connecting consumers to a product through Enjoyment is powerful, bringing

favorable associations to mind at the point of sale, motivating purchase. Then,

when the brand promise is fulfilled in the consumer's mind, brand loyalty begins

to take root.

Extensive research must be done before packaging is developed, to uncover the

brand's chief assets. While some assets are overt, others might be dormant, or

remain uncovered. Consumer-based research into the brand experiences that

impact their perception and decision-making should then be assessed. The

ensuing package design solution can then honestly and directly communicate

brand values, and hopefully, create an emotional connection with the consumer.

One of the most challenging aspects of establishing a communication hierarchy

for products or services that are complex is the organization of the information

hierarchy in the packaging. So much packaging the consumer is faced with at the

retail shelf presents an overwhelming amount of technical information, that the

customer simply hasn't the time or inclination to read it, thus losing the sale and

the opportunity to build a relationship with that customer. It also makes packaging

look cluttered and unappealing, no matter how well designed it is. Only pertinent,

significant information should be utilized in packaging, and it should be presented

in a specific way. Simple, clean, customer friendly messages go a long way with

today's busy consumer. Clear differentiating product features and benefits also

make the brand and its products the clear choice among myriad competitors.

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. Communication Hierarchy: Steps

Present the brand identity and its attributes prominently to the customer,

and present them in a consistent manner on every package.

Identify the brand and product by leveraging its unique logo and color

system.

Create new packaging structures, if appropriate, to make the product more

visible and appealing to the customer. Make certain the new packaging

structures are viable for all applicable retailer plan-o-grams.

Bring out the significant emotional assets of the brand, assist in cuing

purchase motivation, and begin the process of customer relationship

building.

Make the shopping and sales experience enjoyable, informative and easy

for the busy customer.

Sell the product on its own merits—without the assistance of retail sales

personnel—by delivering key product information points in a clear,

concise manner.

Differentiate the product and brand from all of its competitors in multiple

retail channels.

Are consistent from product to product under the brand umbrella.

Are easily identifiable in a global marketplace.

Are cost-effective vs. cheap to produce.

32


PACKAGING DESIGN

Elements & equities

The elements of a package are the specific components or pieces that

constitute the total package - such as colors, packaging structures, shapes,

typefaces, icons, framing devices and appetite-appeal vignettes.

“She’s got great legs."

"His eyes are steely."

"She looks just like my aunt."

We hear comments like this all the time and do not generally think of them as

examples of element isolation. But that is exactly what they are - a focus on

specific pieces of an overall identity that contribute uniqueness,

distinctiveness, familiarity or appeal.

When the topic is packages rather than people, the elements change but their

importance remains the same. In order for the package to communicate

effectively,

It must have key elements working together to convey the brand's

positioning.

They must be distinctive & identifiable in seconds among a crowded

gathering of other packages trying to do the same thing.

33


Singularly or in combination, these elements must generate the equivalent

of the `great eyes' comment: They must elicit recognition, interest and

appeal.

If they succeed, they contribute to the package's overall equity.

Package equity is a distinctive element that is recognized and correctly

linked to the brand because it effectively communicates the brand's

positioning. A good example of package equity is the Coca-Cola bottle we

are all familiar with. Most consumers correctly identify and link that

image to the cola brand, even when the bottle is the only thing they are

shown.

Element may or may not represent equities of a package. Interestingly,

elements are not linked to just the package. They can appear in other

forms or media used by the brand. For example, Microsoft's Windows

icon is an element that appears on its packaging, and also in the brand's

advertising and promotional material, as well as on some competitor's

products as an indication of compatibility.

Visual elements

Graphics and color

Graphics includes layout, color combinations, typography, and product

photography, all of which create an image. For low involvement, there is a

strong impact from marketing communications, including image building,

on consumer decision-making. Evaluation of attributes is of less

importance in low involvement decisions, so graphics and color become

critical. For many consumers in low involvement, the package is the

34


product, particularly because impressions formed during initial contact can

have lasting impact. As the product attribute which most directly

communicates to the target consumer, the design characteristics of the

package need to stand out in a display of many other offerings.

Many consumers today shop under higher levels of perceived time

pressure, and tend to purchase fewer products than intended. Products

often appear to be chosen without prior planning, representing a form of

impulse buying. A package that attracts consumers at the point of sale will

help them make decisions quickly in-store. As the customer's eye tracks

across a display of packages, different new packages can be noticed

against the competitors. However, eye movement does not necessarily

mean attention. When scanning packages in the supermarket, the

differential perception and the positioning of the graphics elements on a

package may make the difference between identifying and missing an

item.

In psychology research, brain laterality results in an asymmetry in the

perception of elements in package designs .The recall of package elements

is likely to be influenced by their lateral position on the package, as well

as by factors such as font style, size, and color. Recall is better for verbal

stimuli when the copy is on the right hand side of the package, and better

for non-verbal stimuli when it is on the left hand side. This may imply

that, in order to maximize consumer recall, pictorial elements, such as

product photography, should be positioned on the left hand side of the

package.

Consumers also teach color associations, which lead them to prefer certain

colors for various product categories. Using color as a cue on packaging

can be a potentially strong association, especially when it is unique to a

particular brand. However, people in different cultures are exposed to

different color associations and develop color preferences based on their

35


own culture's associations. Simply taking the colors of a particular logo,

package, or product design from one market to another should only be

done under a thorough understanding of how colors and color

combinations are perceived in each location).

The focus group interview was conducted to determine the most

important graphic variables in the use of:

Color;

Typography;

Shapes; and

Images.

In order to have a complete vision of the alternatives that can be used with

these four components, interviewee heterogeneity was sought. The profile

of the eight designers is:

- Gender: Women - 62 per cent; Men - 38 per cent.

- Age: 20-30 - 37 per cent; 30-40 - 38 per cent; 40-50 - 25 per cent.

- Education: Primary education - 13 per cent; higher studies - 87 per cent.

As a result of this several alternatives were selected for each of the four

key variables.

A dossier showing a range of simulated packaging was prepared for the 46

consumers that agreed to participate in the experiment. The profile of the

46 consumers is:

- Gender: Women - 57 per cent; Men - 43 per cent.

- Age: 20-30 - 85 per cent; 30-40 - 15 per cent.

36


- Education: Primary education - 7 per cent; higher studies - 93 per cent.

This packaging represented each one of the four selected graphic variables

(color, typography, shape and image) in the different alternatives obtained

in the previous qualitative phase. So, for example, for the "color" graphic

element six prototypes were prepared. In the first, related to the

"brightness" variable, two packaging alternatives were presented: one in a

dark color (less brightness) and the other in a light color (more

brightness). In the second, related to the "saturation" variable, two

packaging alternatives were presented: one with a saturated or bright color

and the other with a non-saturated or dull color. In the third prototype,

relating to the "temperature" variable packaging in warm colors (red,

orange and yellow) and packaging with cold colors (green and blue) were

shown. Finally, for the variable "shade", packaging in three types of colors

was presented:

Black/white;

Blue/green; and

Yellow/orange/red.

These simulations were repeated for the other three graphic variables

(typography, shape and image) . The complete prototype dossier was

shown to the interviewees and they were asked to relate the positioning

strategies proposed to the graphic variables that best represented them.

This procedure was done with a sample of 46 consumers. The experiment

was done according to the following three-stage sequence:

One of the positioning strategies presented was explained. For example:

"Product 'A' is positioned as reasonably and affordably priced. People say

the price is OK".

37


The following is used to present the case to be solved: "From this

selection, choose the packaging that seems most suitable for product 'A',

taking its characteristics into account". The simulated packaging

alternatives were shown and the subject chose the one that seemed most

suitable. The sequence was repeated for the reaming six positioning

typologies.

Finally, the number of times that each graphic variable was associated to

each positioning strategy was calculated.

The defining graphic variables for each strategy were obtained by

frequency counting.

Statistical techniques

The seven product positioning strategies have been represented from the

consumers' standpoint. For this purpose, multidimensional scaling has

been applied. The idea is that the packaging attributes that are situated

close to a particular positioning strategy on a perceptual map correctly

represent this positioning strategy. Four maps have been obtained with

multidimensional scaling based on the data obtained related to:

Alternative packaging colors;

Alternative packaging typography;

Alternative packaging graphical forms; and

Alternative packaging images

Results

Each positioning strategy is associated with particular packaging

dimensions as follows:

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Top category positioning, prestige status, directed to the upper classes:

Color: Cold, Dark, Black.

Typography: Any.

Graphic form: None.

Image: Picture, Product.

Accessible product, reasonable price positioning:

Color: Light, White.

Typography: Serif, Sans serif.

Graphic form: Any.

Image: Illustration, Person.

Positioning based on durability, guarantee and safety:

Color: Red.

Typography: None.

Graphic form: Straight line, Vertical, Straight outline,

Symmetrical, One element.

Image: Picture, Product.

Positioning based on refined, sober and elegant aesthetics:


Typography: Bold, Expanded, Upper case, Large, and Roman.

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Graphic form: None.

Image: None.

Positioning based on country of origin, patriotism:

Color: Red.

Typography: None.



Image: None.

Positioning based on excellence, high price, variety:


Typography: Any.



Image: None.

Non-selective positioning, for the middle classes, based on noble

principles:

Color: Any.

Typography: None.

Graphic form: Horizontal, Oblique, Circle, Curve, Wavy outline,

Asymmetrical, Several elements.

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Image: Any.

HOW MEANINGFUL ARE COLORS

How meaningful is color in extending a company's brand identity in the

packaging of its products and services? Just take a look around. Imagine,

if you would, that the words "Coca Cola" did not appear anywhere on the

product's can. No logotype. Just the signature red package with white

swirl. Would you still recognize the product? We're betting that just about

everybody-everywhere on earth-would. Color is an essential part of our

lives. Color has context for specific demographics, based on genders, age

groups and ethnic groups. Corporations hire design consultancies that

employ their own expertise, and collaborate with color organizations to

assist them in the successful communication of their brand messages.

Jill Morton, the principal consultant at Colorcom, a color consultancy with

offices in New York and Honolulu, writes: "Marketing research indicates

that over 80% of visual information is related to color. In other words,

color conveys information. It identifies a product or a company, as well as

the quality of the merchandise and much more. The right color is indeed

worth a thousand words."

And, when a brand needs revitalization, the issue of packaging and color

are again reviewed, and necessary changes are made to contemporize, or

better extend the brand message. Every aspect of brand management

strategy is geared toward building a relationship with the consumer; one in

which there is positive and on-going interaction with that brand and its

assets.

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Color, when applied to packaged products, must relate to the brand,

category and demographic being targeted. In fact, the brand's packaging

must be a synergistic part of he overall brand expression continuum.

Color in package design, when effectively conceived and executed, should

leverage the assets of brands, and extend brand communications. Color

communicates. The goal for competent brand identity and package design

consultants is to build brand equity. This cannot be achieved without

building brand recognition and trust with a targeted demographic. Color is

a tool that must be used to assist global corporations in packaging their

products or services to achieve these ends.

Examples

a) A firm that specializes in brand identity and package design in the toy

or entertainment industry, for example, should have a thorough

understanding of consumer and category trends as well as consumer

response at retail. When a corporate client requires package design for a

toy product, the following steps should be taken

The product's brand identity has to be given first consideration. An

understanding of toy product categories and the current category players is

essential. Audits must be conducted to confirm that information, and

analysis of the competition is a crucial component of the process.

Honing in on how kids in a particular age group interact with packaging

and color, especially with gender-specific toys, is revealing.

The goal here is two-fold:

To extend the client's product's brand identity meaningfully

through the packaging of its products, and to position those

42


products as category leaders. If they already are category leaders,

periodic brand revitalization work makes certain they remain well

ahead of their competitors.

To create trusted, enduring relationships between the corporate

client's products and their target audience.

b) Packaging project in the high volume beverage category for the

Campbell Soup Company on its V8 Splash Smoothies beverage product.

The targeted demographic consisted of women, aged 35+ years of age,

who are interested in purchasing beverages for their refreshment, as well

as their nutritional value. The target also included a multi-cultural

audience, including Hispanics and African Americans. Research

determined that strong, vibrant color would have great appeal for this

demographic, and that a bottle cap in periwinkle would signify health

benefits to mature women. End result? A powerful brand presence and

strong sales in a saturated beverage marketplace.

c) Dove the bathing bar by Unilever, when it was introduced during the

great depression, the color white, which soothed peoples’ minds in the

War and economic depression.

PACKAGING SIZE AND SHAPE

Package size, shape, and elongation also affect consumer judgment and

decisions, but not always in easily uncovered ways. Consumers appear to

use these things as simplifying visual heuristics to make volume

43


judgments. Generally they perceive more elongated packages to be larger,

even when they frequently purchase these packages and can experience

true volume. This implies that disconfirmation of package size after

consumption may not lead consumers to revise their volume judgments in

the long term, especially if the discrepancy is not very large.

Different sizes also appeal to consumers with somewhat different

involvement. For example, low price for some low involvement products,

such as generics, is made possible through cost savings created by reduced

packaging and promotional expenses. Generics are usually packaged in

larger sizes, which communicate to consumers who are specifically

looking for good deals. Such consumers find the low price of the generics,

in the right size of packaging, offers excellent value for money. In

addition, this could imply that when product quality is hard to determine,

as with generics, the packaging size effect is stronger.

Informational elements

Product information

Image issues and visual response less influence the behavior of consumers

toward products characterized by high involvement; in such cases

consumers need more information. Written information on the package

can assist consumers in making their decisions carefully as they consider

product characteristics. However, packaging information can create

confusion by conveying either too much information or misleading and

inaccurate information. Manufacturers often use very small fonts and very

dense writing styles to pack extensive information onto the label, which

lead to poor readability and sometimes confusion.

Mitchell and Papavassiliou (1999) suggest that one way consumers reduce

confusion from information overload is to narrow down their choice sets.

Reducing choice alternatives and evaluative attributes decreases the

44


probability that they will be confused by excessive choice and information

overload. This strategy could apply to more experienced consumers,

because heavy users potentially look at fewer brand alternatives. In other

words, experience makes consumers selectively perceptive and restricts

the scope of their search. This is effectively a form of brand loyalty,

brought about because consumers do not necessarily want to continue

reading labels every time they buy a particular product.

Many consumers appreciate food labeling, but are not satisfied with

standard formats. For example, UK survey data indicates that nearly two-

thirds of consumers now read food labels, but one-third want to see clearer

labeling. Other research in the UK also shows that many consumers find

the format prescribed in law for both voluntary and compulsory labeling

difficult to use. In another recent survey, 90 percent of people agreed that

nutritional information panels should be laid out in the same way for all

food products so that they are easy to understand quickly.

While not all consumers use it, the trend seems to be toward increasing

attention to such label information. Partly concerns about food safety and

nutritional health drive this trend, but it is also driven by the gradually

increasing consumer sophistication. During Thailand's recent recession,

for example, consumers were loathed to sacrifice living standards, but they

did have to watch budgets more carefully. They began evaluating products

more carefully to make sure they were worth the prices charged. Whatever

be the reasons, more highly involved consumers evaluate message

information, relying on message argument quality to form their attitudes

and purchase intentions.

On the other hand, packaged food products remain low in involvement for

many consumers. In general, consumer acquisition of low involvement

products is often done without carefully examining brand and product

information. The lack of commitment and attention implies that

45


information on the package carries relatively less value with consumers

who view packaged food as low involvement products.

5.4.2. Packaging technology

Technology developed for packaging comes directly from the current

trends in products and consumer behaviors. Powerful retailers also seek

greater responsiveness and flexibility from manufacturers, including

packaging, to satisfy consumers who are more demanding and

sophisticated. Customers are often prepared to pay slightly more for

enhanced product value, indicating desire for more quality. However,

product and packaging development also constrained in creating products

that fully meet the consumer and channel criteria. Such constraints might

be categorized as ingredient, processing, and cost restraints.

Innovation must respond and develop new products that are more

efficiently produced, packaged for a longer shelf life, environmentally

friendly, nutritionally responsive to each of the emerging segments of

society, and meet maximum food safety requirements. Technology

embodied in the package plays a big role in this, making it somewhat of a

special form of informational element. In addition to its technical role,

packaging technology also conveys information which is often linked to

the consumer's lifestyle. Therefore, in order to survive in high growth,

competitive markets, technology becomes very important for developing

packaging, materials, and processes.

It is clear from the review of literature that the importance of packaging

development is high, as packaging plays a major role in consumer

decisions of fast moving packaged food products. Earlier research,

however, is not very extensive, and has not looked very carefully at

differences in how packaging elements are used for decisions based on

levels of involvement and time pressure.

46


PACKAGE DESIGN TESTING

Why?

It is well documented that packaging has a direct impact on sales, most

notably in influencing many purchase decisions that take place at the

47


point-of-sale. Research studies also repeatedly find that innovative

packaging systems are very powerful in their ability to differentiate

brands, justify price premiums, and increase brand loyalty. A new shape,

material, or dispensing system can give a product in any category new life.

Just as often, however, potentially valuable packaging innovations are not

implemented. These missed opportunities are often rooted in the fact that

marketers and engineers "speak different languages" and approach

packaging from nearly opposite perspectives. Packaging engineers tend to

consider packaging primarily in terms of its functionality and to focus on

rational benefits (easier to open, etc.). Brand managers tend to think

primarily in terms of return on investment (ROI) and focus on incremental

costs and sales revenue.

Since many packaging innovations require significant up-front

investments or incremental costs-per-unit, they often into a "roadblock" of

sorts. Engineers can demonstrate that the new system provides a

functional benefit, but they can't provide marketers with the "evidence" of

increased sales revenue that they need to justify an investment. Consumer

research can "bridge this gap" and help companies make informed

packaging development and investment decisions, and help gauge the

business value of new packaging innovations

Packaging systems should be developed to reinforce core brand attributes,

as per the long-term brand strategy of the company, and the heritage the

brand enjoys with its customer. In fact, the core customer's perception of

the brand, as time goes by, should be researched and monitored. This kind

of research is not meaningfully engaged by most companies, and yet,

customer perception has the single most powerful impact on the brand.

With core brand perception strong and intact, packaging can be

contemporized to update the overall brand image to keep it potent with the

48


existing customer, while attracting a new generation of consumers. It can

also be extended to all new products under the brand umbrella.

When packaging systems are properly researched and developed, three

key achievements occur:

Brand identity and brand image are strengthened.

Clear, concise and consistent communication hierarchies—that

effectively communicate with the customer--are established. These

can be applied to all future line extensions as well as all product

revitalization plans.

Significant emotional assets that are brought to the fore assist in

developing customer relationships that will cue further purchases of

the brand, cementing brand loyalty.

How?

49


When new packaging concepts are first developed, they benefit

greatly from qualitative research, often in-depth discussions with a

small number of target customers, which provides the insight

needed to identify and address concerns.

Conversely, quantitative research--surveys with hundreds of

people--is inherently less diagnostic, and it typically leads

companies to declare winners and losers, and to simply discard the

latter. In a recent example, a new packaging structure for liquid

soap was strong on a functional level, but had a shape that

suggested a lower-end product. If survey research would have been

conducted, this idea would have simply been rejected. However,

the qualitative research setting allowed us to pinpoint the source of

the problem and guide refinements that "saved" the idea.

In fact, the way companies test new ideas can also stifle innovation by

killing ideas before they are fully developed and refined. Here, the

problem is often rooted in what we call "the rush to judgment." Given the

costs of creating functional prototypes, companies are eager to gather

numerical "evidence" before investing further in a concept. This leads

If you ask a person

directly if he or she

would pay more for a

new and better package,

the answer will usually

be "No." However, if

you introduce the better

packaging at a slightly

higher price, people will

often be willing to pay

more

50


them to present new concepts to customers through drawings and written

explanations, which rarely produce the same depth of feeling from

customers as a functional package.

When performed well, focus groups can be valuable in providing initial

direction and narrowing down a wide range of options, but focus groups is

not an appropriate tool for documenting the added-value or the business

impact of a packaging innovation. For this reason, survey research is

needed to justify investments in new packaging systems and guide final

"go/no-go" decisions.

The full impact of new packaging

Of course, the value of quantitative research is tied directly to its

comprehensiveness. Specifically, it is important that survey research

document all the potential benefits of a new/proprietary structure. A new

packaging system can influence shoppers on three levels:

An innovative and own able

shape can generate value,

even if it does not provide a

functional benefit. The

L'Oreal shampoo packaging

provided immediate

differentiation on shelf--and

allowed the brand to embody

fun in a category driven by

child appeal.

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Increased Shelf Impact/ Visibility: The difficulty of breaking

through shelf clutter should not be underestimated: Our PRS Eye-

Tracking studies have shown that even when shoppers are directly

considering a category, over one-third of the brands displayed are

ignored completely. However, a unique, engaging structure can

help ensure that a product consistently draws shoppers'

consideration and drives impulse purchases.

Enhanced Product Perceptions & Brand Imagery (Before Use):

Two recent examples illustrate how shape influences product

perceptions. In one we found that Dove's taller thinner package for

women's antiperspirant suggested a more "feminine" and "clean"

product than those of competitors packaged in thicker and more

uniform packages., even though it did not provide a

rational/functional advantage. An own able structure or delivery

system can also provide a powerful link to brand heritage or

relevant imagery. In a recent study, we found that a certain shape

conjured up customers' memories of old milk bottles, and linked to

their nostalgia for "simpler times" in a consistently positive way.

Functionality and Satisfaction (After Use): A new structure that

provides functional benefits can lead to an improved usage

experience, increased customer satisfaction, and ultimately to

stronger brand preference and loyalty. However, it is important to

remember that only people who use the product will experience the

functional benefits. In other words, unless a packaging innovation

is clearly visible and/or well communicated, it may not contribute

significantly to business value.

In order to document all of these potential sources of value, a

comprehensive packaging study should simulate both the shopping and the

usage experience. Moreover, it should measure a packaging system's shelf

visibility and impact on product perceptions before usage.

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Linking to business value

Ultimately, to provide "evidence" that a new packaging system will

provide business value, it is necessary to simulate the introduction of the

new system and document its impact on shoppers' decisions.

For this reason, the single most important principle is to evaluate each new

packaging innovation on a monadic basis, in the context of competitive

packaging. In other words, one large group, or cell, of target shoppers

should encounter the current packaging in the context of primary

competitors, and be asked to evaluate each package and make a purchase

decision. Another matched group of target shoppers should encounter the

new/ proposed packaging in the identical competitive context, and go

through an identical interview process.

By comparing data across these two groups, a study can document the

impact of a packaging innovation on consumers' attitudes (implied product

perceptions, brand imagery, perceived functionality, anticipated pricing,

etc.) and, more importantly, on their preferences/purchase decisions. In

other words, a study can isolate and measure the impact of a packaging

innovation along two measures directly related to business value:

The impact on preference vs. competition (market share);

The ability to justify a higher price without losing share (pricing).

These measures allow marketers to translate functional benefits into an

informed estimate regarding the economic impact of a packaging change.

Specifically, they allow marketers to address the primary questions on their

mind:

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"If we introduce the new package without changing the price,

will we pick up enough market share to justify the investment?"

"Will we will be able to pass along the additional cost per unit

without losing any market share?"

Conversely, the most misleading findings come from studies in which

companies attempt to project the added-value of a new packaging system by

asking people directly about how much more they would pay for a particular

benefit. Unfortunately, pricing is perhaps the single area in which customers

are least likely to be honest with interviewers. In other words, if you ask a

person directly if he or she would pay more for a new and better package, the

answer will usually be "No." However, if you introduce that better packaging

system at a slightly higher price, you may very well find that people do not

notice the difference, or are actually willing to pay more.

Ultimately, innovation in packaging is a combination of commitment and

process. The exceptional companies recognize the potential value of

proprietary packaging, and they invest the time and resources needed to

properly develop and fully assess new concepts.

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PACKAGE REDESIGNING

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Redesigning a package to increase sales can be a huge risk for most

companies. In most circumstances a packaging engineer is hired to create,

design and implement the most cost effective package for a product. This

consistent concern of package costs can hinder the marketability of a

product and ultimately hold back potential sales. Although cost

considerations are an important part of any business, there are other

factors that need to be addressed before making a final decision on a

package.

In today’s markets, consumers enjoy having options and, with

supermarkets carrying an abundance of products, options are what

consumers will get. With all these options available, marketers must

discover new ways to embed a memorable product brand into the minds of

the consumer. At times, package redesign can provide a memorable brand.

There are three reasons companies should consider package redesign as an

option: contemporary appeal, greater visual impact, and brand

reinforcement or upgrade.

Contemporary appeal will be discussed first. As times change, so do

consumer trends. To keep up with this constant change product brands and

packaging must also change to continually meet the needs of the “next

generation” consumer. Innovative packaging structures and graphics can

play an enormous responsibility in keeping a product up-to-date. Even

products with old-fashioned appeals must sustain a modern-day affiliation

with consumers.

The second reason is greater visual impact. When a customer enters a

store, he or she is immediately exposed to a variety of products and

package styles. Without realizing it, the consumer constantly judges the

quality of the products based on the appearance of the package itself.

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“Packaging is the manufacture’s primary line of defense against

competitors and the final appeal.” A smart package design can give a

product a better visual shelf presence and separate itself from the

competition.

Finally, the third reason for companies to consider packaging redesign is

brand reinforcement or upgrade. With thousands of new products entering

the market each year, it is important to remind consumers new is not

always better. It is necessary to reinforce a product’s brand principles by

designing a package that reinsures consumers of values such as quality,

reliability, and innovation. This leads to brand revitalization in many

cases.

CASE STUDY

Landor Creates New Packaging and Identity for PJ Smoothies

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About PJ Smoothies

Each PJ Smoothie packs in two portions of pure fruit so they are

supercharged with fine ingredients, supplying you vital vitamins making

you well on the way to the government recommendation of five fruit and

vegetable portions a day. The Pete and Johnny (PJ) brand was born on

14th October 1994 through the entrepreneurial efforts of Harry Cragoe and

Patrick Folkes.

The Redesigning

Landor Associates' London office has created the new packaging and

brand identity for PJ Smoothies, the UK's original smoothie brand, which

was acquired by PepsiCo UK in 2005. Landor was appointed non-

competitively in July 2005 as a result of the consultancy's existing

relationship with PepsiCo UK, producing award-winning work on brands

such as Walkers and Tropicana.

Currently being shipped to UK retailers, the new design is part of a major

investment programme that will also include TV advertising, Direct

Marketing, Sampling, On-line and In-store activity. The aim is to position

PJ Smoothies as the accessible brand in a bid to transform the elitist, niche

smoothie market into a mainstream choice for consumers.

Most consumers are unsure about what a smoothie is and perceive little

product differentiation between brands, so educating consumers about the

product via an appealing brand personality is essential. Landor strategists

worked with the PJ Smoothies brand team and other agency partners to

define a relevant and differentiated brand personality with unique tone of

voice that could come to life at all consumer touch-points.

In a market characterised by pack designs that focus on either fruit

photography or 'stark' illustrations, Landor developed a truly differentiated

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typographic design route for PJ Smoothies which 'heroes' the delectable

flavours in a way that brings to life its lively, outgoing and straightforward

personality.

The handcrafted 'fruity' type, natural colours and overall design simplicity

underline the purity of the product held within. The subtle fruit

illustrations add a level of friendliness unparalleled in this market. The

logo has been modernised and simplified to give it more authority and

make it easier to use off pack. The back of pack (BoP) is used as a

reinforcement of the brand's personality and focuses on explaining what a

smoothie is in a visually playful way, linking back into the overall

communication idea 'Want fruit, drink fruit? '. The pack therefore becomes

integrated with other marketing channels through consistent messaging.

The result? A pack design that infects people with enthusiasm has a good

sense of humour that is open and universal. It is open and approachable,

rather than elitist or cynical. And it tells it how it is, simplifies rather than

complicates. In short: lively, outgoing and straightforward.

Landor continues to work with PepsiCo UK on a variety of design

programmes for Walkers, Quaker, Tropicana and Pepsi.

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BRAND REVITALIZATION AND PACKAGING

Three Kinds of Revitalization

Revitalization can require the rebranding of a company from the inside

out.

Revitalization can involve updating the brand's products and product

attributes with better, demanded features.

Revitalization can require repackaging for a more contemporary brand

image to appeal to new generations of consumers.

Myriad CPG (consumer packaged goods) brands are constantly being

revitalized, and repackaged, to contemporize them for new generations of

consumers and to ensure companies' continuing growth in equity. Food

and FMCG brands are masters at revitalization.

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Examples

When sales slowed on the venerable 40-year-old Head & Shoulders

shampoo brand, P&G decided to revitalize. Consumers can still purchase

the classic formula, or meet more cosmetic-oriented needs with

reformulated SKUs that guarantee extra fullness, dry scalp care, or

intensive treatment. With its revitalization, P&G now says that Head &

Shoulders has broader appeal among more consumers. The CPG giant also

designed contemporary packaging, reduced package size, and set a higher

price point for additional anti-dandruff ingredients to give the repositioned

heritage brand the same presence as a salon formula line rather than that of

a basic, utilitarian product.

Snack food giant Frito lay revitalized its product line recently by

eliminating Trans fats (in the form of hydrogenated oils). The company

then revitalized the packaging of its extensive line to make the "0 grams

Trans Fats" very prominent on the upper right hand corner of every

product package. Touting the use of whole grains in a number of its

products helps the company fulfill its commitment to deliver tasty snacks

that are more healthy and nutritious.

Hanes entered the supermarket scene as revenues from its sales in department

stores were declining. Rather than use its pre-existing brand, the company

unveiled an old product in clever new packaging, using an unorthodox name

which stuck in the customers’ minds. L’eggs achieved spectacular sales and

domination of its category. Had Hanes relied on a more conventional

approach, it is unlikely the company would have achieved the same degree of

success.

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CASE STUDY

Tobaby: Brand Revitalization

Background

Tobaby is a well-known skin care/cosmetics brand in Guangzhou, China,

recognized as reliable and a good value. Facing increased competition from

local and international brands, Tobaby needed to broaden their customer base

and expand beyond Guangzhou and China. Research results revealed that

consumers found the packaging unattractive, dated and not reflective of the

quality of the products. Landor was brought in to rejuvenate the brand and

enhance the stylish and contemporary attributes of Tobaby.

Challenge

The butterfly symbol of the old identity was proprietary to Tobaby, but the

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visual expression was cluttered and unfriendly. Landor needed to strengthen

the basic identity, while retaining the butterfly imagery. Tobaby has various

product lines, from basic skin care to UV protection and hair care. Each has its

own look but is designed to resemble leading international brands. The

packaging program required a simple, clear communication standard that

projected Tobaby's own personality—youthful, lively and stylish.

Landor's Solution

Landor created a new identity that leverages existing equities by using an

agile, delightful butterfly icon, and by introducing a more refined, elegant

logotype. A system of basic applications such as business card, newsletter and

in-store signage was launched to support the new look of Tobaby products.

The initial packaging focus was on the flagship skin care lines H2O, UV

Whitening and Eye Cream. Using color to differentiate the product lines and

maximize shelf impact, the new packaging reinforces the quality of the brand

and displays a modern, youthful appearance.

CONTEMPORIZING THE PACKAGING THE

RIGHT WAY

CPG companies feel the pressure to repackage with more frequency now than

in years past. It's important to keep product packaging contemporary to appeal

to core customers, while attracting new ones:

It is vital to retain brand heritage and equity. The strengths of the

mature brand should be leveraged when repackaging.

Consumer research uncovers the brand drivers, some of which are

latent when products have been in the marketplace for decades.

Research enables the brand identity/package design expert to make

certain the brand and product core assets and differentiators are firmly

in place.

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Since a brand's packaging is its most enduring and accessible brand

communication vehicle, it must convey the brand experience through the

package design system. The brand's packaging must be a synergistic part of

the overall brand expression continuum. Recognizable, trusted brands in

visually appealing, stimulating packaging have a distinct advantage in a sea of

product sameness, in category after category.

Bottom line: Periodic corporate brand revitalization is an essential component

of brand management. Product revitalization gives new relevance to what

could have been perceived as tired, aging consumer goods. Finally, revitalized

packaging allows a CPG company to communicate its realigned core brand,

prioritize its communication hierarchies and share its core assets fully with

customers, creating an emotional bond.

PACKAGING OR ADVERTISING : WHAT COMES

FIRST

Is packaging primarily a direct sales vehicle…

or is it a form of advertising, image management,

and long-term brand-building?

Traditionally, advertising has led the creative communication for the brand

marketing campaign, with packaging design being a smaller and more isolated

component of the brand development. We all know the distinctive red and

white "uniform" associated with the Coca-Cola brand packaging, but it was

undoubtedly the "It's the real thing" advertising campaign in the 1980s that

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cemented Coke's place in the hearts and minds of the consumer, making the

brand a global success.

The creative power shift

Today, brands across every sector are facing an increasingly competitive

brand landscape and an increasingly cynical consumer. Today's consumers do

not want the "hard sell" and tend to disregard mass brand communications—

such as advertising—in favor of more personalized messaging mediums such

as word-of-mouth recommendations and community marketing initiatives.

Like these initiatives, package design has the power to connect with the

consumer to communicate a brand's message on a more physical and

individual level. It's time for the full potential of package design as a brand

and business asset to be fully recognized and realized.

Consumer connection

To understand this creative shift and the evolving brand-marketing picture, we

need to start by studying consumers and their motivation for buying. From

recent media and industry sources, we know that today's consumers do not

want to be explicitly marketed to and the blatant "hard sell" of advertising is

turning them off. But, they are, of course, still buying brands.

What is attracting them to brands today? Research has shown that they are

looking for that something extra-not to just buy, but to buy into brands. We

have found that they are more inner-directed—not motivated by mass

advertising or peer pressure—but they are looking for a more intimate

offering and a way to co-create the brand (to imbue a sense of personal

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authorship and individual expression). They are buying to express rather than

impress. They want a more intimate and physical relationship with brands just

as they would expect from people.

Intimacy and individuality are undoubtedly at odds with the one-size-fits-all

ethos that defines advertising. In addition, some recent advertising has become

so clever and aspirational that (although we can appreciate the creativity) it

forges a divide and sense of disassociation rather than pulling us closer to the

product being promoted. The size of the United States and the breadth of

media channels pushing advertising only add to this fragmentation of

advertising. The design industry now has the opportunity to educate, inspire

and excite brand owners and shift the creative mindset in line with the

changing consumer landscape.

In the current climate, packaging design is effective simply because, more

than any other medium, it stays true (both physically and metaphorically) to

the product. It is the key interface between brand and consumer as it can

connect on a physical, spiritual and sensory level to create that all- important

ingredient to guarantee brand success: desire.

Design and desire

To be successful, every brand needs to retain and build desire, but with desire

being a continually evolving force, this is not easily attainable. With today's

discerning consumer desiring the personal, the intimate and the individual,

brands need to look at ways to build these elements into their brands and to

create this desire. Above all, brands need to help the buyer buy rather than the

seller sell.

Design is having the vision to make something substantially better for the

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consumer, and packaging design is the key medium for tapping into today's

desire and communicating it in a way that the consumer believes. It can

convey a host of messages that appeal to the sensibilities of different

consumers through written or visual language, and by considering all the

elements of packaging design such as naming, graphics, structure and texture.

A successful package design will balance these key components to allow the

individual respect, knowledge, connection, freedom and contradiction in all

their choices; creating desire by allowing them to be both part of the overall

brand experience and to create an individual interpretation.

With brands and businesses ever more accountable, we need to be able to

prove that design creates desire and, ergo, sales success. While industry

awards and methods of measuring audience reach with an ad campaign are all

viable indicators of creative business success, moving a product off shelf

relies first and foremost on the power of packaging design. It is tangible.

CASE STUDY

Green and Black’s

The following case study demonstrates how brand can leverage design as an

integral, and accountable, part of the brand marketing campaign.

Green & Black's was launched by a husband and wife team in 1991. The

bittersweet cocoa taste and organic credentials had instant niche appeal but the

brand never progressed beyond a 1% market share. Pearlfisher started work

with the brand, in its earliest days, at the end of the '90s. In 2002, Green &

Black's asked Pearlfisher to reposition it from a worthy brand to a luxury and

mainstream brand. The five-step creative brief said the following:

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To allow Green & Black's to operate in the premium sector, an

emerging market with intensifying competition

To reposition the Green & Black's brand from worthy organic to

luxury premium chocolate (leading on taste with organic a supporting,

rather than a primary, reason to purchase)

To create desire for dark chocolate in a milk-chocolate-dominated

world

To enhance shelf standout and make Green & Black's a must-stock

brand for mainstream retailers and supermarkets

To meet an ambitious sales target of £17m by the end of 2004

Pearlfisher created a strategically led visual identity. The dark brown color

clearly communicated intense flavor first, while the gold typography of the

logo acted as a cue to the brand's premium status. Although still part of the

logo, organic was now seen as a supporting differentiation rather than a lead

message. The shift of emphasis gave the brand a clear product-led positioning

that acted as a solid foundation for all other activity.

The packaging design set the new strategy in motion and was the inspiration

for the advertising and PR campaigns with the images used in those

disciplines building on the style of the new packaging, rather than the other

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way around. The advertising theme, "Ah, that's what chocolates supposed to

taste like," followed the packaging stance that presented the essence of the

brand as intensity of taste.

Results

Sales rose from £4.5m to £23m in 2004, and total sales of the chocolate bars

(70 percent of total brand sales last year) rose 400 percent since the relaunch

period. The total Green & Black brand now has a retail value of £50 million

and, on a rolling MAT basis, is growing at 50 percent year on year.

Beyond bars, the new packaging look was extended across the rest of the

product portfolio including ice cream, drinking chocolate, biscuits and gift

confectionery. Green & Black is now viewed as a premium high-quality

chocolate brand rather than just an organic chocolate. Green & Black's

marketing director, Mark Palmer, has commented, "There is no doubt in my

mind that the packaging design has led the change and been the single biggest

factor in the growth, and the success in the UK has paved the way for a

similarly impressive entry into the U.S. market." Sales in the United States

now represent 10 percent of the companies turnover. Indeed, G&B's is

actually the fastest-selling chocolate in leading natural food stores such as

Whole Foods Market.

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PACKAGING DOMINATES COMPETITION

Competitive Strategy (Porter)

Strategy is concerned with identifying how you intend to meet

your corporate objectives

Competitive Strategy involves positioning a business to maximize

the value of the capabilities that distinguish it from its competitors.

Packaging can be a major component of the marketing strategy--giving a

product a competitive advantage. a small company in the south, with the

debut of Chik shampoo in the service package format (1 Re. sachets)

paved ways to capture the rural market with innovative & smaller packets

whereas the big giants HLL & P&G had not even thought of rural India as

an important market.

By communicating a product’s most believable and desirable attributes

through packaging, customers are likely to purchase the product as least

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once. Then, if the product itself is worthy of repurchasing by the customer,

brand loyalty will soon be established and sales will increase.

Packaging is a unique brand communicator. While tangible, it can deliver

the intangibles of the brand like nothing else since the customer can see it,

touch it and be engaged by it in a physical manner. It can also speak to the

heart, not just the mind, of the customer. Dry packaging that dutifully lists

features and benefits alone seeks out an intellectual response. That

prompts the customer to think and employ reason: “Should I purchase this

brand vs. the other brands here?” It does not, however, elicit a prompt

decision. Decision-making is a process.

On the other hand, packaging that unabashedly appeals to the emotions of

the customer, leads to action. The structure, typography, use of color and

symbolism that evoke an emotional response stop the customers in their

tracks. We humans are emotional beings and if brands do not align

themselves within our human experience, or touch us in an emotive way,

why would they have any appeal to us?

A good packaging in the shelf amongst all the competing brands will

associate & engage the customer & hence will help the company dominate

the competition.

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PACKAGING DRIVES SALES

There is no question that marketing and branding are important parts of

any business. The way products are marketed can and will vary between

industries depending on the target market. Nonetheless, the goal of

marketers remains the same for all businesses. That goal is to increase

sales by creating a memorable advertising campaign, product/service, or

creative package to gain market share in their respected industries.

Research shows that 85% of the shopping in a modern retail outlet is on

impulse where packaging, labeling & shelf positioning are the driving

factors and within shorter and shorter time frames.

E.g. HLL`s skin care business posted a 22 per cent growth in 2002,

propelled by Power Brands , Fair & Lovely and Pond’s skin applications,

each posted double digit growth, with innovative products, appropriate

packaging and effective advertising, despite a declining market.

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EXCLUSIVE CONSUMER SURVEY

Here’s proof that the package is a strong influence and your department

should get more development dollars.

To view the influence of packaging on purchase decisions from a new

angle, The Consumer Network asked a national cross section of its

shopper panel how much influence packaging had on their buying

decisions relative to the influence of price, brand, freshness and specific

item preferences. The question was repeated for 25 product categories,

from candy to whole fruits and vegetables.

The survey format was triggered by a shopper who called the Network’s

attention to a phenomenon she called “brand overload.” To her, brands

had become like politicians at election season, promising a lot but not

really delivering. Other consumers have had similar comments:

• Many shoppers said that brands have let them down in the last few years.

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• Buying trusted brands is no longer the shortcut to health and satisfaction.

• Today’s shoppers are being asked to consider more options and deal with

more products and more information than ever before.

• Today’s shoppers might have more insight about their buying decisions

than they are being given credit for.

The survey prompted some respondents to think about how they shopped

at different times and places; some to talk about how they shopped

differently with family members; and some to learn more about

themselves as shoppers. One respondent said, “This survey was a learning

experience about me.” Another said, “I had fun trying to watch myself

shopping in these categories in order to fill this out.”

The survey asked respondents to consider packaging in every category and

to consider brands in two ways: one, the influence of specific items they

liked or were in the habit of buying, such as Diet Coke; and two, the

influence of the brand itself, such as Coca Cola. Some respondents had

trouble making that distinction, but most respondents enjoyed it.

The high level of respondent involvement gives the influence ratings an

extra level of meaning. On the other hand, since it includes only five

influencers, it has some major limitations. Some would-be respondents

returned blank surveys because their primary influencers weren’t included:

“I am mostly looking to buy organic and natural in almost all of these

categories so this survey doesn’t apply to me.”

How the survey was conducted

The questionnaire took the form of a "purchase influence matrix.

Responses were tabulated based on the first 600 completed responses.

Among these tabulated responses, approximately 150 were in the 20-34

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age group, 200 each were in the 35-49 and 50-74 age groups, and 50 were

in the 75+ group.

Respondents were asked to rate each influencer using a 5-point scale

ranging from “1” as No influence on purchase decision to “5” as Great

influence. Ratings were done independently, so each category could have

multiple 5s, multiple 4s, and so on.

The percentages reflect the average rating given to each influence. (This

was based on ratings of 2, 3, 4 and 5. We did not include 1s because they

did not represent an influence.) Each specific influence (packaging, price,

brand, freshness and specific item preferences) was counted as one fifth of

the overall purchasing decision, with the influences adding up to roughly

100%. For example, if all respondents in the candy category had given a

“5” rating to packaging and a “4” rating to the remaining influencers,

packaging would have scored 24% for the candy category.

How packaging ranks in 25 product categories

CATEGORY PACKAGING PRICE BRAND PRODUCT FRESHNESS

Cleaning 22.3% 25.2% 22.4% 19.8% 10.4%

First aid 20.9% 24.3% 21.0% 19.1% 14.7%

Cut fruit 20.5% 20.9% 14.8% 17.9% 25.9%

Ketchup 19.4% 21.8% 20.1% 20.6% 18.2%

Pills/Tablets 19.4% 23.0% 19.0% 18.8% 19.8%

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Cut veggies 19.3% 23.8% 14.7% 17.1% 25.1%

Cheese 19.2% 21.8% 19.4% 17.7% 22.1%

Frozen

entrees18.6% 23.1% 20.8% 18.1% 19.4%

Soup 18.1% 19.0% 22.6% 19.4% 18.1%

Cat food 18.0% 23.2% 19.3% 21.1% 18.3%

Crackers 17.7% 21.5% 21.0% 19.0% 20.9%

Ice cream 17.7% 23.3% 21.0% 18.2% 19.8%

Sauce 17.7% 23.0% 20.8% 19.4% 19.1%

Dog food 17.6% 23.4% 23.4% 19.3% 17.7%

Soft drinks 17.5% 22.6% 22.4% 19.7% 17.8%

Cereal 17.5% 22.7% 21.6% 20.7% 19.9%

Cookies 17.5% 21.5% 19.6% 17.9% 23.6%

Juice 17.4% 23.2% 19.7% 18.1% 21.6%

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Mayonnaise 17.1% 21.7% 23.0% 18.9% 19.3%

Chips 16.9% 22.2% 20.0% 18.7% 22.1%

Milk 16.7% 22.9% 18.9% 18.0% 23.6%

Meat 16.1% 24.1% 16.8% 18.5% 24.6%

Candy 16.0% 21.7% 20.6% 20.5% 21.2%

Whole

veggies15.7% 25.5% 14.0% 18.5% 26.4%

Whole fruit 11.7% 25.2% 11.5% 19.1% 25.1%

Source: The Consumer Network

More than 90% of the respondents rated the influence of packaging—as

well as price, brand, freshness and specific item preference—in each

category they tackled. More than 80% rated the influence of the specific

item as well as the brand in most categories. And 10% of the respondents

left the specific item column out of their ratings.

All of the respondents were able to differentiate packaging from brand or

price, and most respondents’ influence rating relationships between

packaging, brand and price changed in each category. Some gave

packaging high influence ratings in some categories and brand high

influence in others, while some said price ruled their purchases in most

categories “packaging matters.”

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The findings show that consumers are acknowledging the influence of

packaging on their purchases. Package’s influence trumped brand’s

influence in three categories, including pills/tablets.

Packaging was rated as more influential than specific product preference

in seven categories, including cheese and frozen entrees. Also, in seven

categories, specific product preference was rated as having more influence

than brand.

Brands held the top-rated influence position in only three of the 25

categories included in this study. One respondent commented, “When

buying Kraft or Bayer meant buying the good stuff, buying was easier.

Now it may mean paying more than you should.” In most categories, price

was rated as the most influential.

In most categories included in this study, brands were rated less influential

by younger than by older consumers. Packaging was rated more influential

by younger respondents than by older respondents even though older

respondents, especially those 75+, are more likely to have trouble opening,

reclosing and pouring.

The closeness of the packaging to the brand influence ratings suggests that

packaging has gained influence as brands have been extended, stretched

and weakened. The findings also suggest that brand marketers should look

for more opportunities to use packaging for brand building. Considering

the ratio of money spent on advertising to the money spent on packaging,

the findings of this survey suggest that spending on packaging may have a

higher, long-term return.

For the last century, changes in the way consumers perceived convenience

are what drove whole categories to change. Convenience is a moving

target that was once defined by condensed soup and Ivory Soap.

Campbell’s Soup has been able to partially update the convenience of its

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condensed soups with pop-top lids, but Procter & Gamble hasn’t found a

way to make a place for its once-flagship Ivory Soap in 21st Century

lifestyles. The ease of finding floating soap in cloudy bathwater is a weak

selling point in a time of quick power-showers.

Today’s consumers are on information (and product) overload. With miles

of choices lining the shelves, more consumer demands are working their

way into product packaging and purchase decisions, and each product

category works differently. Brands are often still considered to reflect

product quality, but now, consumers depend just as much on packaging to

fulfill their entire product needs in a single hit.

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CONCLUSION

Packaging is not just about a providing a neat & tidy setup to certain products. it’s

about creating an image a television channel also is packaged d better and more

glamorous it looks the more it sells(TRP), a newspaper has it’s packaging in terms

it’s positioning like The Hindu the Chennai based national English daily which is

positioned as the serious hard core journalism with no frills attached, the color of

paper supports the same positioning it is all black & white with less of

commercials, same holds true for almost everything the banks ICICI revamped

the entire look of it’s branches to come across as a friendly & approachable bank,

the retail stores, etc.

What looks good sells may not be totally true but what is good and looks ugly

sells is also not true so a good quality product has to come in attractive packages

to sell.

Today packaging not only has practical functions, but also greatly influences the

choice of a customer to buy this or that. The leading industry pays much attention

to the packaging as the success of a product and therefore of business depends a

lot on it. The packaging is the final touch in the long process of product creation.

It is a means of communication with the customer both on intellectual and

emotional levels. It can attract attention, arouse interest and desire to buy

something and it often bonds customer to a product for long years. Hence a brand

manager who does not include packaging in the brand’s marketing

communication mix is making a big mistake.

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Brand Influenced communications can provide significant differentiation. Other factors can be as important or more important

Brand IrrelevantBrand communications cannot influence the Purchase decision

Brand DrivenBranding and brand communications is the primary driver of value differentiation

Brand IncidentalThere may be a minor role for brand communications.E.g., packaging may influence a purchasing decision (perception of better quality, more-for-the-money, etc.)

Real Results Marketing Brand Communications Matrix

Purchase DriverEmotional Rational

Size of transaction

Small

Large


REFERENCES :

1. Phillip Kotler : Marketing Management

2. Kevin Keller : Strategic Brand management

3. David Aaker : Building Strong Brands

4. Al Ries & Jack Trout : 22 Immutable Laws of Branding & excerpts from

their interview in the magazine 4Ps

5. Marketing Communication : ICFAI university publication

6. Herbert Meyers & Richard Gertsmen: The Visionary Package

7. Michael Porter : Competitive Strategy

8. Patrick De Pelsmacker & Bergh Joeri Van den Geunes Maggie :

Marketing Communication

9. Article by Bagman of Cantley

10. Articles in www.brandmarketprofs.com

11. Articles in www.brandchannel.com

12. Cases in www.landorportoliocase.com

13. Articles in [email protected]

14. Articles in www.hindubusinessline.com

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http://www.hindubusinessline.com/

http://www.landorportoliocase.com/

http://www.brandchannel.com/

http://www.brandmarketprofs.com/



15. Scholarly articles ,cases & surveys given in http.Proquest.umi.com(digital

library)

16. Articles in www.agencyfaqs.com

17. Articles in www.exchange4media.com

18. Articles in www.aaa.org

19. Articles in www.brandweek.com

20. All about ads show episode “ Impact of colors”, NDTV

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http://www.brandweek.com/

http://www.aaa.org/

http://www.exchange4media.com/

http://www.agencyfaqs.com/

Documents

Evolution of Packaging