The Key to Retail Success – Package Design
Marketers competing in today’s economy can best impact sales by understanding how to manipulate package design. The appearance and functionality of a product’s package make all the difference in retail success. While many consumers are opting for private labels rather than brand, their decision to buy isn’t based on price alone. In fact, the more a product sells, the greater the advantage it has over other products in the store. Understanding consumers and how they choose where to shop will greatly affect the success of any product shelved there.
Consumer loyalty is often thought to side more with the brand purchased than store shopped. This false perception creates a missed opportunity in marketing strategy. According to a study by Retail Minded, 100 female consumers between the ages of 19 and 30 voted 71% in favor of store loyalty versus brand. Designing product packages to account for this trend will impact sales significantly.
The question then isn’t just how a consumer shops, but where. Wal-Mart is a prime example of a store with strong consumer loyalty. Private label products have seen such enormous success at Wal-Mart that they have not just changed consumer trends; they have forced brand labels to reconfigure their marketing strategies. Shoppers have the perception that brand labels are more expensive than their competitors. Therefore, the success of the private label continues to climb as shoppers choose cost efficiency over familiarity. This is why private labels are snagging the most desirable shelf space at Wal-Mart. The more a product sells, the closer to eye-level the product is shelved.
With this in mind, one of the most important variables to consider when designing a package is the demographics of the individual merchants who carry it. Understand the geographic location of each store, who shops there, and why people shop there. Private label companies have the unique opportunity to tailor their packaging to appeal to specific consumers. For example, in a high-end store, products that appear elegant and specialized may be more appealing. At Wal-Mart, shoppers may choose products that claim to give them more for their money. Know who your competition is and who your consumers are, and design your package to relate to your consumers better than everyone else.
Other important factors that play a role in package success are:
- Attractiveness: the product needs to be eye-catching enough to make the consumer look twice. It also needs to stand out from all the competing products at eye-level.
- Clarity: people need to clearly see and understand the most important information immediately upon seeing the product. Consumers spend mere seconds looking at each product; delivering an emotional impact is important.
- Integrity: the functionality of your product package will determine whether the person who has purchased your product will buy it again. Design a package that is easy to open, easy to store, and eliminates damage to the contents.
- Trends: pay attention to the current hot topics in politics, economy, and environment. They have a significant impact on how people buy and exploiting these trends can improve sales significantly.
Design and functionality of a product’s package play a critical role in its success. By understanding how crucial packaging is, savvy marketers gain the competitive edge. Take advantage of the unique opportunity you have to “speak” to your specific consumers. Your innovative efforts will create more demand for your product and more success for your business.