Article

Three ways packaging can impact, improve the retail experience

Brands are increasing their focus on more distinctive packaging that attracts a loyal customer base.

May 4, 2011

When shoppers walk into a store to buy a product, the first point of physical interaction with that product is its packaging. Packaging is what the consumer sees, feels, reads and handles. Whether the consumer realizes it or whether the impact is simply subconscious, packaging makes a difference in determining what gets noticed on the shelf and ultimately purchased. The package becomes an extension of the product itself.

From high-end electronics to packaged foods, companies are increasing their focus on incorporating more distinctive packaging that attracts a loyal customer base and adds value for the brand and customer alike.

Although packaging styles, needs and strategies differ among companies, there are three common packaging considerations that are becoming essential to a positive retail experience for consumers.

It differentiates brands

Brand owners know that during any shopping experience a distinctive, well designed and functional package adds considerable value in influencing shopper perceptions and purchasing decisions in the retail environment. It enhances brand communication, supports product positioning and helps a product stand out on the shelf.

Consider the focus Apple places on developing packaging that is almost as fun and sleek as the devices it protects. Or Plum Organics' squeezeable baby food packs that eliminate the need for spoons, making feeding less messy. Think about how Gatorade is using packaging with its new G Series to clearly differentiate which drink is intended for before, during or after an athletic performance. Packaging is the communications vehicle that lets consumers know what is cool, convenient or functional. It tells consumers whether a product is low or high-quality, expensive or inexpensive, meant for you or meant for someone else.

In a retail environment, a brand's packaging is, in essence, its own point of sale display. The shape, materials, colors and design of the package are important to drawing shoppers in and communicating what the product is all about.

It's secure, but not impossible

Millions of dollars are lost by retailers and brand owners as a result of damage. Better packaging is their first line of defense. While its most basic purpose is to protect the product inside, a package should also be strong enough to withstand damage itself, as most shoppers will push a damaged package aside in search of a perfect one.

The downside of some secure packaging is the frustration consumers experience when trying to free their shiny new gadget from a hard-to-open clear plastic clamshell or multiple layers of packaging materials.

War stories of packaging have been shared and even parodied in popular media. In fact, Larry David committed an entire episode of "Curb Your Enthusiasm," to the escalating frustration or "wrap rage" typically associated with clamshell packaging; ultimately smashing his new GPS device on the floor. A story in the Pittsburgh Post-Gazetteabout wrap rage was featured on "The Colbert Report" when host Stephen Colbert tried to use a knife to remove a new calculator from its plastic packaging to no avail.

To bring an end to "packaging buzzkill" brands and retailers like Sony and Amazon are putting limits on the amount of packaging materials they use and creating no-clamshell policies. As a result, new materials and designs are being developed to create lighter weight, highly secure and damage-resistant packages.

It's more sustainable

In this day and age, the consumer truly is king, and a retailer's good status is essential in gaining consumer trust. The 2008 GfK Roper Green Gauge study revealed that nearly three-quarters of Americans say they know a lot or a fair amount about environmental issues and problems, and want products that are beneficial to their health and the health of the environment. These consumers don't base their choices on corporate information, such as companies' websites or newsletters. Instead, they evaluate a product's sustainability at the point of sale — by its package. In fact, nearly three-quarters of U.S. consumers say they check the packaging labels as a source for environmental information about a product.

Increasingly, packaging needs to effectively communicate the sustainable aspects of both the product and the package itself. Packaging is a key component of many retailers' sustainability strategies because it can greatly impact consumer's perception of waste. In addition, packaging also impacts the satisfaction or guilt a consumer feels about her own contribution to sustainability when she tosses it in the garbage or recycling bin.

All in all, the best packaging innovations should help you achieve your sustainability goals, whether by reducing packaging or plastic weight, providing reusability or recoverability, and/or making the most effective use of natural resources.

Jeff Kellogg is vice president of MWV's Consumer Electronics and Security Packaging business. (Photo by Nate Grigg)