Following last month's feature on shopper marketing Y&R's Rohit Arora picks up on the importance of packaging within the process.
Shopper marketing has been on the rise as marketers focus on winning over consumers at the "moment of truth".
The last mile is critical in the consumer buying cycle. While advertising plays a big role - educating, reminding, triggering, enticing, etc., emotionally or rationally - shopper marketing has a single-point driving goal, and that is "conversion".
This paper is focused on packaging, a crucial component in successful shopper marketing. Packaging is right at the centre of the brand's consumer and shopper proposition.
If we peel the onion further and think of our own shopping behaviour in the region, there are lots of brands with which we had - and continue to have - our first interaction by simply noticing them on the shelves. And what drives awareness is largely the packaging. P&G calls package design "the first moment of truth".
Regional brands
While many international brands have the right mix - for example, it is not easy to ignore Oreo among the clutter of biscuit brands - there are few regional brands that can say the same.
Almarai is an exception. In a commoditised category with little product differentiation, Almarai's packaging really stands out. Think of brand recognition. Remove the label and you can still identify Almarai milk by its packaging ergonomics. Internationally, Coke is probably the most common example.
Masafi is another regional example of effective packaging. It is a leading brand despite the presence of many international players with deep pockets.
Retailer reaction
Retailers have come to realise that points of sale and displays can sometimes clutter the environment and cause consumers to retract.
Spinney's and Waitrose (in the UAE), for instance, are pricier than some hypermarkets, but they attract many loyalists. To be less cluttered, retailers are limiting PoS, which means that packaging has to work harder and smarter.
Environment
Consumers are most concerned with package appearance and function. Once these must-haves are satisfied, eco-friendly messages are next. As sustainability awareness increases, brands are being proactive in justifying their packaging. Masafi's re-cycling initiative - oxo-biodegradable shrink wrap that degrades in two years - is a regional case in point.
Dissonance vs. Resonance
Marketers must decide whether to create dissonance, by disrupting the category status quo through conspicuous packaging, or generate resonance, via simple, straightforward design that communicates the brand proposition. These are not mutually exclusive - one can create dissonance by simplicity. Innocent drinks, with its quirky design in a category dominated by pictures of fruit, comes to mind.
Regionally, Illume energy efficient compact flourescent light (CFL) bulbs are a fine example. In a low involvement category the insight came from supermarket shelves where incandescent bulbs and CFLs are mixed together so there is little motivation to choose CFLs due to their being nearly 500 per cent more expensive. The campaign was packaging-led with a quirky-yet-educational tone clearly highlighting the difference with incandescent bulbs.
Degree of change
Another consideration is the degree of change. The design change has an impact on brand loyalty as consumers get used to the look and feel of a brand. Consider Tropicana, for example, which had to abandon its new design and revert to the old one following consumer complaints.
While it is important to contemporise the brand, the crucial visual hooks must be carried forward. If the packaging has tremendous visual equity marketers must explore evolutionary change route.
Consumer engagement
While it's common to see a pack shot in a TV campaign, print, etc there are only a few brands globally that have utilised packaging to engage consumers.
Jones Soda's "your photo, your soda, your brand" campaign (from the UK) is a case in point. Unlike Pepsi's strategy of putting its brand ambassadors on the pack, Jones used consumers' pictures.
My Jones website lets consumers customise their own labels with their own pictures and messages, and choose their flavour for their wedding, birthdays and any other occassion.
One consumer statement on their website says it all: "If I could marry Jones Soda I totally would, that's just how outrageously amazing it truly is."
There are 377,700 Jones Soda fans on Facebook and the campaign has received tonnes of press converage.
Orbit's "u can't touch this" is another campaign (from the Czech Republic) based on packaging where they strengthened their bonding with consumers by letting them select, create and submit their own repulsive pack design online that would scare people into taking gum from their pack. Within the first four weeks 1,400 unique covers were created. The project was so successful that it was extended indefinitely.
Kurkure, with its "Chai time achiever's awards" (from India), wanted to create awareness about product versatility.
This campaign made real people famous by inviting them to submit recipes using Kurkure. The winning family and recipe appeared on a million packs. The idea was integrated with TV cookery shows. Some 264 families participated across 88 episodes, creating unique recipes.
So, how does it all add up?
Consumers are rapidly questioning the traditional, linear and narrowing consumer-purchasing-funnel, where they develop awareness through traditional advertising.
The multi-dimensional communication scenario of today demands strategically crafted packaging integration within the communication mix.
Action points
Question the role of packaging in the communication mix and decide if you want dissonance or resonance
Investigate the appropriate degree of change and leverage the brand's existing visual equity.
Assess the environmental impact and minimise the carbon footprint.
Unleash the role of packaging in your communication mix.
Rohit Arora, planning director, Y&R, Dubai
© Executive 2010
