Brand Value in Packaging

Market competition in this day and age is quite stiff, and as a result, businesses and other organizations are frantically trying to find new ways to get customers to purchase their products. So how is it possible to stand out amidst such stiff competition? By utilizing excellent packaging, your company can bring more customers in. Nothing tends to get the attention of a customer the same way that outstanding packaging design can. At the point of purchasing a product, packaging is what serves as a direct link between the product within and the customer looking to make a purchase.

Packaging will appeal to the sense of style and the desires of your customers, which will help them make a decision. Marketing and advertising will both play important roles in the process, but neither of these roles are nearly as close to your product as packaging is, because the decision to make a purchase during the shopping experience is made specifically at the store level and not at the marketing or advertising level. Packaging is capable of drawing the consumer in, in addition to changing the view of a brand in order to help the customer make the purchase that they need.

What we need to think about then, is our packaging that we are using as well as the choices that we are making when it comes to packaging and selling our products. If the packaging is not doing anything when it comes to drawing attention to the product, then nobody is going to buy the product. Great packaging designs are going to support the brand, and in many cases, good packaging is also capable of building, creating and reflecting the brand. Whether your packaging is designed for business to business sales or consumer retail sales, packaging is everything when it comes to truly reflecting the brand.

It is important that you really get to know your market well so that you can make sure you are having a positive level of penetration. Also, having a good packaging design will continue to work for your company and your product for many years to come, which will allow you to build a large amount of loyalty all along the way. It is important, for this reason, that you make a point to know your customers well, and that you choose your packaging options accordingly in order to be able to penetrate the market with your packaging. When you come up with a solid concept for packaging, that is when you can generate real brand power, garnering the appreciation of your customers and building business as a result.

Edible Food Packaging Trends

“Talk about your childhood wishes, you can even eat the dishes.” — Willie Wonka and the Chocolate Factory

Can you imagine going to the store, purchasing a yogurt cup, and then eating not only the contents of the cup but also the cup itself? This is a new innovation that is happening in the trend toward creating healthier and environmentally friendly alternatives. There is an organic food company operating out of California that is working hard to research this type of product.

Another example of alternative food packaging is edible films. The Division of Agriculture of the University of Arkansas is working on inventing and patenting several different protein-based films that are capable of serving as a carrier for organic acids capable of inhibiting the growth of three major food borne bacteria, which are E. coli, Salmonella and Listeria moncytogense. Additionally, these films can be used as a vehicle to deliver antioxidants, flavors, nutraceuticals, colors and a number other functional types of ingredients. There are a number of anticipated applications which include meats, vegetables, fruits, seafood, frozen pizza and frozen snacks, cereals, nuts and seeds and much more. This category is proving itself to be at the very cutting edge for when it comes to innovative food packaging trends in this day and age.

However, there are a number of challenges that this type of packaging is liable to face. The prices associated with organic foods are tending to be higher when it comes to the supermarket channel. The problem is going to have more to do with supply and demand in this particular instance. According to a study by Arcus, organic food has grown by 20 percent over the period of the last decade. And yet, it is still being perceived as a small business, with only 3.5 percent of the food industry in Canada, or $1.8 billion dollars per year. Small changes in the way of supply and demand are capable of rocking the entire industry. For example, if a company has a 7 percent share and wants to grow to 10 percent, they will need to grow their entire supply chain by as much as 50 percent. The supply chain just does not exist the same way today.

The one thing that dissuades customers from buying organic today in most cases is the price of the food. The explosion that private label organic food is experiencing is definitely going to be a good thing. Private labels are finally entering into this market in a truly big way, allowing large scale retail chains such as Safeway as well as Whole Foods to focus on creating organic food products as a differentiator in terms of competition, allowing this category to finally reach out to people who shop based on price. Private label organic is also making organic more acceptable on a broad scale, allowing for a deeper level of society to be penetrated. Finally, organic private label will create additional supply to fuel supply and demand as farmers and suppliers begin to realize that organic food is here to stay and is not just another fad.

Innovative Packaging

Many of the products that have been innovative over the years have been successful as a result of packaging which has done its job. When the packaging is well made and well developed, you will fall in love with the product as a result. Sometimes the success of a product is completely dependent upon packaging that works. Everything needs packaging in some form of another, and when the packaging works, the product contained within is likely to work as well.

There have been a wide variety of different product packaging innovations that have come to make our lives a lot easier. There are also a number of different types of packaged products that we tend to simply take for granted, without necessarily realizing how the packaging made the product possible. For example, could we have potato chips or eggs without their packages? There are dozens of different egg drop contests all over the country that are held to create unique packaging options for eggs. Could we have toothpaste without the unique packing that makes it possible? Could we pop microwave popcorn without its unique bag?

There is a truly astounding list of packaging innovations that have been able to influence our everyday lives. There have been a myriad of different important packing innovations that have been developed in the last fifty years or so. There are a lot of key words that are regularly used when describing innovations in the world of product packaging, including terms like microwavable, shelf stable, juice box, meal replacement and home meal are all terms that have come as direct results from innovations in the world of product packaging. What many companies are now facing is how they can integrate innovative packaging concepts into their own project packaging in order to get the most out of their product packaging while utilizing the newest technologies as well as the most effective ways of packaging something.

How can you take your current type of packaging and somehow improve upon it? Looking at packaging innovations in the food industry is an excellent way to see how companies have been able to make packaging work for them. For examples, Sargento cheese was the first cheese company to put a reclosable zipper on the packaging for their shredded cheese. Wishbone Salad Dressing was the first company to develop salad dressing that could be sprayed rather than poured. Clorox developed a bleaching application capable of being applied directly to a stain, a Clorox bleach pen. By looking at these examples, it should not be impossible for you to see what it means to make packaging work for you. If your product can be improved upon in some way based on its packaging, or if you can somehow develop packaging that is innovative, then you are definitely making your packaging work for you.

Packaging Types

You can generally look at packaging as falling into several different types of groups. Transport packages or distribution packages, for example, are packages that are used to ship, handle and store inner packages or products. Some people identify consumer packages as packages that are directly aimed for a household or a consumer.

Packaging is also capable of being discussed in relation to what type of product is actually being packaged within, such as bulk chemical packaging for example, or medical device packaging, over the counter packaging for drugs, food packaging for retail sales, military materials packaging, pharmaceuticals packaging and so on and so forth.

Sometimes it is convenient for people to categorize the different types of packaging based on their layer of function, such as primary packaging, secondary packaging, tertiary packaging and so on and so forth. In this particular scenario when it comes to identifying packaging based on its function, primary packaging is described as the material that is designed to envelope and to d the specific product itself. Primary packaging is usually the absolute smallest possible unit of use or of distribution, and it is also commonly regarded as the packaging that actually comes in a direct level of contact with the actual contents. Secondary packaging on the other hand is the type of packaging that is outside of the primary level of packaging and this level of packaging functionality is often used specifically to group a number of primary packages together with one another. The third level of packaging is tertiary packaging, which is especially common for bulk handling, transport shipping as well as warehouse storage. The most common form of tertiary packaging is a palletized unit loan that is packed into tight containers.

When soda pop is poured into aluminum cans and sealed, the aluminum can is perceived to be the primary form of packaging because it is the closest form of packaging to the actual product. The aluminum cans are sold in cases made of cardboard, which are perceived to be the secondary form of packaging because they are the packages that contain the primary packages. Finally, the tertiary form of packaging is perceived as whatever specific form of packaging is used for the purpose of wide spread distribution, such as a pallet system for example, where a large number of cases of cans of soda are wrapped in shrink wrap and carried on large wooden pallets to their destination.

These broad categories are often viewed as being somewhat arbitrary in nature. For example, depending on the specific use, shrink wrap is capable of being considered as primary packaging when it is being applied directly to the specific product, but it is also considered secondary packaging when the shrink wrap is used to combine smaller packages, and in some distribution packs shrink wrap is used as tertiary packaging as it keeps large pallets of products together in one place.

Smaller Product But Same Packaging

The new trend in product packaging seems to be “downsizing”, or reducing the amount of product in the package but charging the same amount to consumers. This increases the price of the food, but not the package. In a recent tour of supermarkets, studies found that almost 10% of products examined had gotten smaller, while the prices have stayed the same.

Some examples:

• Bags of chips were cut from 12 ounce sizes to 10 ounces, while maintaining the same price.
• Mayonnaise jars that once contained 32 ounces now hold only 30 ounces.
• Some cereal companies are cutting 1.5 ounces from some boxes. Other companies are taking as much as 2.4 ounces while charging the same as before.
• Major ice cream manufacturers are packaging ice creams in 1.5 quart boxes as opposed to previous 1.75 quart sizes.

Although some companies are receiving many letters of complaint, they are standing by their choice to reduce product amounts, saying it is better than “to take the price of the package up” and make products unaffordable to consumers.

Sustainable Packaging Buying Decissions

A recent packaging survey in an industry publication suggests that almost half of American consumers consider one or more sustainability factors when shopping for products in stores.

The survey suggests that not only are the products important but the packaging and the store where products are purchased also playing a role. This information could be invaluable to you when designing or sourcing packaging materials.

Some of the surveys other findings include:

• Almost 25% of the respondents consider two or more sustainability issues when making a purchase. Over 29% said that environmentally friendly packaging influenced the brands they bought, and 21% choose stores that carry a wide selection of products in sustainable packaging.
• Sustainability factors are most important in the households of aging baby boomers and those with less than four people. Larger households with smaller budgets may choose products with lower prices instead of sustainability.
• Failing to reach the 55-and-over market could be a problem for companies and retailers because they are missing a large part of their main consumer base.
• Conscious consumers direct most of their buying to drug stores rather than supercenters.
• High sustainability concerned customers have a higher purchase rate in food and beverages.

In terms of packaging, the survey recommends that companies and retailers do the following:

• Utilize all opportunities to reduce packaging and leverage recycled materials, reusable, and biodegradable materials among their private label products.
• Increase the availability of products with eco-friendly packaging.
• Optimize shelf-space as the package size is reduced.
• Signal all significant environmentally friendly packaging improvements.

As you can see, many factors go into making buying decisions for sustainable packaging.

Packaging Inside The Box

Many companies look to contract packagers and packaging supply companies for interesting and unique packaging designs. Everyone wants their packages to look exciting and unique but this could come at a steep price in the marketplace.

Many years ago retailers were open to different colored items in different sizes. Back then they welcomed multi-packs and bonus packs. But with the advent of planograms which make planning product positioning ridged, controlled and consistent, creative and oddball sized packages are a thing of the past.

Package sizes are controlled at the corporate buying level now. Ever notice how every box of laundry detergent is the same size even if they are manufactured by different companies?

This packaging standardization occurs because the buyers have set sizes and locations for products and shelving and expect square pegs to fit into square holes. You may have a package and want to add a premium to it or make it into a bonus pack in order to attract more sales (“Get an extra 20% free!”)… but if that makes your package too tall or too wide then you will not have shelf space for your product.

Also, if you go with a container that looks great but can’t be stacked, then you may run into problems as well. Buyers and stockers appreciate carefully designed packages tha make their lives easier.

So, as you can see, while the marketers in your company are always looking for something unique to attract the eye of the customer, the reality of the situation is that they are forced to think inside the box and conform to industry standard sizes and shapes of packaging.

Packaging That Sells

For the last couple of weeks I have been covering the negative impression that consumers have about packaging. I have tried to dissect all of the ranting and raving from nay-sayers about packaging that doesn’t work.

Just last week Britain’s National Federation of Women’s Institutes (NFWI) launched a campaign highlighting supermarkets wasteful packaging policies. Granted this was in the UK, but similar initiatives could happen here. I checked it out briefly and I don’t get it. They are complaining about an packaging that keeps the food protected and sanitary. We need to be prepared and be aware that there are nonsensical reasons that your packaging may come under fire. Just be sure you are covering all your based and anticipate in advance when you might have a problem.

The main thing to visualize is that the role of packaging has changed. Detractors just don’t understand what the package really does. It’s no longer enough for the package just to get product to the retail environment in a satisfactory condition, now it has to “sell” the product too. Packaging plays an integral role in the decision to purchase a product or not. The problem is that what the consumer desires is constantly changing. Market trends come and go. I have mentioned growth niches occurring in the food industry before. Corresponding to the growth are niches that are declining too. Just like I stated “In What’s In Your Bottle.” Bottled water sales recently surpassed soda sales. I was beginning to think the bottled water market was tapped out too. But creativity never ceases to amaze me. We are still welcoming new bottled water product introductions and there is a market for even the most esoteric consumer.

It’s important to understand the evolution of the package because now products are using the packaging as the primary sales tool. Gone is the day of the sales clerk who answer your questions about the product. The role of the package is no longer passive. Its has to “speak” to the consumer both literally and figuratively. (Talking packages are the wave of the future.) Think of all the great packaging applications available if your package talked and could tell you how old the product was, what you should serve it with or that you need to buy this companion product. What a sales tool!

That’s only a fraction of what the new packaging can do. Most importantly, it is imperative that you think about your product package. Does it “connect” with the consumer? In a sea of sensory overload what is going to make your package different? It could be shape, color, size, uniqueness of design or even smell. Are you utilizing any of the new smart and intelligent applications packaging applications? Does you package fulfill a need and explain in clear concise statements the benefits of buying your product. Is it easy to read and understand?

So start your analysis by viewing your package from the eyes of the consumer. If you are buying it, what’s going to compel you to pick it up off the shelf? Is it just sitting there lost amongst rows of competitive products? Think in terms of your package calling out to you “buy me, buy me.” Does your product do this? If not, your package isn’t doing its job. It must persuade the consumer to purchase the product. Thinks about some of the latest packaging innovations and how to incorporate them into your product packaging. Consider the consumer mind set. Is your package perceived in a negative light negating the benefits of the product within?

All these questions need to be answered. Don’t simply to address them in the initial package design; it’s an ongoing process. As I mentioned at the beginning of this piece, the consumer is a moving target and your package has to move along with them in the right direction. Be sure the consumer you are trying to capture receives the right message.

Here are a few types of packaging coming under fire by consumers that could impact your success or failure:

• Products that are perceived to be over packaged
• Products that are in clamshells
• Products that are misleading as a result of the claims on the packaging
• Products that are in packaged materials deemed environmentally unfriendly
• Packaging that doesn’t work
• Packaging that doesn’t deliver as promised

So think about your product packaging right now and determine whether it is helping to sell your product, or not.

About the Author:

JoAnn Hines is the Chief Executive Officer at J.R. Hines International, a firm providing consulting services in the packaging industry. For over 30 years, Ms. Hines has been engaged in packaging trends, forecasting, ideation/brainstorming and implementing innovative new packaging technologies.

Need insights on packaging trends that can impact your business? Get the Packaging Diva on your team. Visit PackagingUniversity.com to find out about the latest packaging innovations.

How To Package A Cause To Sell More Products

What is “cause marketing” anyway? I think it is a misunderstood concept for the vast majority of people. The definition for this type of campaign came from the Cause Marketing Forum. (Note: It is not the endorsement of a product by a celebrity to sell more products.) We will touch more on celebrity marketing and product packaging in a future issue.

When I spoke at the M2W conference about cause marketing to women, I was surprised to find other speakers talking about the same issue. The problem was that all of us used the same example of supporting a cause (breast cancer) in marketing to women. I know breast cancer is an important issue and companies like Yoplait and Eveready have done an excellent job in using this as a marketing tool. Unfortunately, it’s really sad when experts use the same example to illustrate cause marketing. This begs that there are a lot of missed cause marketing opportunities out there.

There are many excellent causes that make great opportunities for enhancing your packaging’s “sale appeal” too. I found a very interesting example from Celestial Seasonings tea packaging. The graphics on packs of two new teas feature woman wearing a designer style red dress icon and provide educational information about women’s risk of heart disease. Additionally, Celestial Seasonings pledges a portion of the proceeds from the sale of new teas to WomenHeart. They also donate up to $100,000 generated from the Red Dress pin offer featured on 17 million tea boxes. In addition, they expanded on the theme with other media events.

What about the message on bottled water? “Buy Water, Help Children.” Does it work for you? Their founders hope so because that’s the idea behind Ethos bottled water. In a crowded marketplace (there are more than 800 different brands of bottled water) Ethos sets itself apart through its social mission. Can this product connect though its product packaging?

Two weeks ago I wrote “The Power of the Package” and discussed how mainstream marketers are losing out with conventional advertising. I offered information on the importance of how your packaging needs to engage, evoke, and engross the consumer with the right marketing message.

Just this week Ad Age reported that a new book reports that 37% of all advertising is wasted. The book by marketing industry veterans, Greg Stuart and Rex Briggs, details a five year research project that tracked $1 billion in ad spending by 36 major marketers and concluded that 37% of all advertising spending is wasted.

I agree that it is wasted. I have been studying this issue for a while and looking at advertising marketing messages (especially on the packaging). I wonder every time I see a new campaign at whom is it aimed. Most the time it’s totally unclear to whom the product is aimed. Despite all that is being written about marketing to various demographic groups, they still don’t get it in the advertising messages. Major demographic markets are overlooked. In fact, I will be speaking about some important demographics at two upcoming conferences.

So think about causes that your company can identify with. Consider causes where there is synergy between the message and the product. Don’t just pick a cause for a marketing gimmick. It needs to complement and expand your brand.

How can you integrate the cause into your product packaging? Can you successfully create a compelling message? Will the “cause” and the manner in which it is portrayed on your product packaging engage the consumer and get them to pick your product up off the shelf?

Cause marketing is a valuable and innovative marketing tool. Successfully utilized it can get expanded media coverage at different times during the year.

So, think about the causes that make sense for your product. Integrate them into your marketing plan. Look at the calendar and see where you can capitalize on your product packaging with branded cause campaigns and plan your marketing accordingly.

About the Author:

JoAnn Hines is the Chief Executive Officer at J.R. Hines International, a firm providing consulting services in the packaging industry. For over 30 years, Ms. Hines has been engaged in packaging trends, forecasting, ideation/brainstorming and implementing innovative new packaging technologies.

Need insights on packaging trends that can impact your business? Get the Packaging Diva on your team. Visit PackagingUniversity.com to find out about the latest packaging innovations.

5 Packaging Tips

When you are getting started it’s so hard to understand the integral role packaging has to play in marketing and selling your product. Put simply, it’s one of the most important product decisions you will have to make.

There is a universe of packaging suppliers, materials and even regulations. Not to be overwhelmed, it is easy to navigate if you take it one step at a time. It is a process just like any other component in product development. They key is to know which packaging factors will influence your product’s success or failure.

Here are five vital packaging tips you need to know as you start on your journey that packages your product to sell.

1. You can’t have a product without a package.

Just think about potato chips and eggs for example. How could you sell them unbroken and undamaged without a package? You have to be able to transport a product from point A to point B. The package is what makes it happen. Even if your product is not fragile, it can’t get into the buyers hands in a shop worn condition. Consumers will never buy it.

It’s interesting how packaging is evolving. In many cases, there would be no product without the package. Take something as simple as toothpaste. Whether it’s in a tube or in a pump the package plays an integral role in making this product work. It is so ordinary that many people never stop to consider this fact: Where would toothpaste be without a package?

So ask yourself these questions:

• Is your invention going to need a package that is part of the actual product?
• Will the packaging be more of a protective device to convey the product?

Whatever the answer might be, it’s time to start thinking about how the packaging is going to impact both shipping and merchandising.

2. The packaging could cost more than what is inside.

The rule of thumb is that the package should be 8-10% of the total cost on average. 10% of every dollar spent at retail is directly attributable to packaging. But that cost can vary dramatically with the product being packaged. The proportion of cost is lower with high ticket items and higher with commodity items as well as products in which the packaging is a bigger component than the product itself.

Let’s talk potato chips again. Packaging is a much higher cost in an item like this. You have a few chips and a bag but don’t forget that besides the bag there is a master shipping carton that contains the bags of chips. This is one of the hidden costs that many people overlook.

So think about not only the primary package (the one that is going to be seen at retail) but any other packaging materials that you will require to transport, ship or convey your product to its ultimate destination unbroken, not damaged, not tampered with and arriving in pristine condition.

3. Your package has to sell the product not just protect it.

The average consumer spends just 2.6 second making a decision whether to pick up your product or not. So your packaging better be on target to the right audience with the right message. Just stroll through any retail that merchandises similar products to yours. Overwhelmed by the competition? You bet!

And that’s just the beginning. Who is going to buy your product? Do you know? Are you aware of what language, colors, design and packaging materials that appeals to your target demographic? This can make or break whether your product sells or not. Ask yourself who do I want to buy my product and what packaging attributes will appeal to them?

4. Most packaging materials suppliers require large quantity orders.

It’s hard to find a supplier for small quantities. The double edged sword is that you don’t have large orders when getting started. The number one question I am asked is how to find a vendor for small quantities. In many cases, this can be a challenge but it is not impossible.

I know you have this exotic design concept on your head that’s just going to “wow!” them at retail. The reality is that in many cases you will have to start with stock packaging items that you can customize. As you get more orders or are able to order in larger quantities you can upgrade your packaging designs.

Don’t be discouraged. The stock design world has come a long way with innovative designs and materials. With a little innovation and creativity, you can have that prestige look on a start up pocketbook.

5. Packaging trends and innovations can influence whether your product will ever get onto the stores shelf.

In January of every year, I write a trends piece about where I believe the packaging industry is going for the year. This covers not only the hottest packaging trends and innovations but outside influences that can drive the retail industry. Many influences can be outside of your control. The secret is in knowing what is going to be the “issue” of the future or what might be mandated as a “must have” in your product packaging.

There are external factors that can dramatically change what the consumer wants or demands in their product packaging. What do you know about RFID, product integrity and product security, bio-resins and bio-plastics, environmental sustainability, smart or intelligent packaging? If you are like most inventors the answer is not much. But these packaging concerns are the wave of the future. Chances are one or more of these factors will be discussed when your try to get a buyer to commit to carrying your product.

Many requirements mandated but big box retailers such as Wal-Mart and Home Depot drive smaller retailers in the same direction.

I’m not trying to scare or overwhelm you with decisions that you are not prepared to make. I am trying to point out a few of the facts you will need to be aware of and consider in product packaging. The time to address these issues is at the point when you prepare your product for market not at the end when many times it’s too late.

About the Author:

JoAnn Hines is the Chief Executive Officer at J.R. Hines International, a firm providing consulting services in the packaging industry. For over 30 years, Ms. Hines has been engaged in packaging trends, forecasting, ideation/brainstorming and implementing innovative new packaging technologies.

Need insights on packaging trends that can impact your business? Get the Packaging Diva on your team. Visit PackagingUniversity.com to find out about the latest packaging innovations.

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