Packaging's Delicate Balance

A soft-drink company recently decided to make its ginger ale stand out from the pack and prove that it isn't like every other ginger ale. So it was packaged in blue containers rather than the traditional green. The result was that retailers stocked it in the wrong place, and consumers thought it was seltzer."Package designers have to balance visual cues to help their product both fit in and stand out," says Jonathan Asher, executive vice president and chief marketing officer of the Coleman Group, a package-design company in New York. "The issues designers have to deal with today aren't new. What's different is that the challenge is tougher: Competitive clutter has gotten worse, stores are bigger, consumers have less time to shop, and new categories are competing for the same amount of money. Marketers are learning that they have to use packages as quick identifiers while also making them work harder."Another soda maker has learned that lesson. In 1994, Coca-Cola began using a contoured, 20-ounce plastic bottle, replicating the shape of its famous glass bottle. Within a year, it incorporated an image of the contoured bottle onto its cans. Now, it's testing a contoured can in the Midwest and South that uses that famous shape."Marketers in the last year or two have begun focusing much more on structural design as a point of differentiation," explains David Wisnom, director of the Chicago office of Landor Inc., a package consulting company. "It makes a product more readily and easily recognized as something new to a line than a new graphic does."Cost vs. ValuePackaging is moving to the forefront of marketers' minds for several reasons, say those in the industry. "Marketers realize that packaging talks to consumers both at the point-of-purchase and also at the point of consumption," notes Raymond R. Burke, a professor in the School of Business at Indiana University, who researches consumer patterns of shopping. "They look at the cost of changing a package versus changing an advertising campaign, and they realize that packaging really is quite inexpensive in comparison."Although most consultants believe packaging should be considered early in the marketing strategy, most agree it seldom happens that way. "Ideally, marketers set the positioning strategy and everything flows from that hub out to spokes of packaging, advertising, pricing and promotion," says Coleman's Asher. "And since packaging plays such a large role in so many parts of the program, it should be an early consideration. But it doesn't always happen that way. It usually gets filtered down to the lowest-level product manager. Packaging truly is the best marketing value available, but at best it gets paid lip service."Retailer CloutIt's beginning to move beyond lip service, however, because more often it's the retailers' lips that are saying it. "Some retailers have the clout to dictate what package they receive," says Landor's Wisnom. For instance, Wal-Mart insisted that for Hunt Manufacturing to keep its pencil sharpeners on the shelves, the company had to repackage the products in clamshells that could stand on the shelf or be pegged, explains John Fleming, engineering manager for the Statesville, N.C.-based company. "The changes we made probably saved our product line, as far as Wal-Mart was concerned." Braun shaving products also created packages specifically to fit strict requirements for Wal-Mart and Target, including exact shelving-height restrictions, plus a combination pegged and standing configuration.Changes also occur to help retailers who can't keep shelves stocked with product. At USG Corp., for instance, marketers have shifted away from traditional corrugated shipping cartons for packaged wallboard supplies to a shipper using shrink-wrapped product trays. "Customers are reluctant to rip open a shipper sitting in the aisle," explains Charles Morris, packaging and P-O-P design manager for the Chicago-based building-products company. "But if they can see the product, they'll tear the shrink wrap to get what they need. It makes the primary package more accessible."Shippers UpgradeShipping cartons are becoming more customer-friendly in other ways, too. "We see a growth in four-color graphics on cut-cases now," says James Gleason, vice president of marketing at Mag Hardware in Huntington Beach, Calif. "Home Depot stores are getting awfully ugly due to cartons being on the shelves, and better shipping graphics help sell the customer. They get thrown out when the box is empty, but when they're on the shelf side by side, you get a nice billboard of color graphics."At Weber-Stephen Products, Inc., Palatine, Ill., maker of barbecue grills, four-color identification labels that wrap around the carton sides are being added to ensure visuals aren't lost no matter how the package is stacked. "We prefer that retailers stack the boxes so the main face is forward so consumers get that impact," notes Gary Granzin, director of packaging development. "But we can't rely on that; the products sometimes get stocked on their sides. We want to ensure we get our point across no matter what the store does."Weber-Stephens has embarked on a three-year program to simplify its packaging and graphics with an eye toward using the same identification program in the global market. That theme has been picked up by others, too, such as Andy Siditsky, executive director for creative services at Buena Vista Home Video in Burbank, Calif. "There are a lot of gimmicks out there today, but I see a move back to basics with a good, clean package read as the major trend," he says. "We're always looking for new ways to project the personality of the product, and you can't beat good, clean architecture on a package."Clean doesn't mean bland, he stresses. A prime example is the company's recent "Toy Story" limited-edition collector's package. The desired design was turned down by several packagers as impossible to create. But the ultimate look is sleek, shiny and high-tech -- just like the movie. "Gimmicks can draw attention, but they also can clutter your message," Siditsky explains. "The goal should be to enhance the basic simplicity and differentiate the product in a relevant way."Printing Options ExpandPrinting technologies are helping convey simpler messages by producing brighter graphics. "Flexographic printing is improving tremendously," notes Landor's Wisnom. "The quality of the plates and images that they're able to execute is significantly better. Marketers are learning how to leverage that printing technology to create better, stronger imagery."Mag Hardware recently went to brighter graphics, Gleason notes, in part for a pragmatic reason. "Lighting in warehouse stores often is very low by the time the light from high fixtures reaches the shelf level," he explains. "We wanted a brighter package so it would be easier to see in dimmer light."Working against package clarity, especially on shipping cartons, is a move by many manufacturers away from bleached-white corrugated and toward a natural Kraft paper. Apple Computers made this shift five years ago, Wisnom points out, opting for photo images in one- or two-color combinations that stand out. Gleason also sees more manufacturers steering away from bleached papers. "More companies are becoming environmentally aware and sensitive to these issues."Reductions Aid AllAnother way environmental awareness shows through is in the overall reduction in packaging, notes USG's Morris. "We've been creating some initiatives in this area, and retailers are responding well and requesting more," he says. "It's not always easy to do, but where there are opportunities, we like to use them." Packaging reduction is appreciated more than recycled packages, he notes, because recycling still requires handling. "Reductions offer the direct benefit of fewer man-hours to deal with it." But as some move to reduce the amount of packaging involved, other consumer-goods manufacturers are finding a market for single-serve items, which increase packaging overall.Marketers are also reducing the sheer size of each package to the minimum needed to contain the product. The direct benefit they receive comes when slotting fees start to add up, notes Greg Erickson of Shelf Presence newsletter. "The fewer facings you get into a set amount of space, the less effective they are," he says. But it can be a balancing act, USG's Morris points out. "You have to have the space to communicate your message," he says. "If you shrink the package too much, you lose impact and don't stand out on the shelf."Even worse, the package may send the wrong message, says Erickson. The makers of concentrated dish and laundry detergents discovered that when their small, expensive bottles were passed over by consumers who didn't understand that the products could wash more dishes or clothes than the larger products. "Everyone wanted the bigger size for less money, even if it didn't achieve as much."Adds Mag Hardware's Gleason. "We see a direct correlation between package size and sales. There's a lot of noise at the point-of-sale, and you have to break through." To overcome that without adding wasted space, Mag Hardware is compensating with vertical display headers that project from the shelf to draw attention and strip merchandisers to emphasize "profit per peghole" to retailers.Splitting BilingualsBilingual and trilingual packaging works against reductions in package size, too, manufacturers note. A number have begun to produce different packages for those markets where several languages are needed rather than reduce all packaging instructions small enough to fit everything. "If it doesn't communicate in at least one language, we've served no one," says USG's Morris. Few of the company's small-sized packages enter the Canadian market, for instance, where bilingual wording is required by law. So on those sizes, only English is presented.Mag Hardware, too, has decided to split its products into packaging with either English/Spanish or English/French instructions. "You can't put three languages on a drill bit," Gleason says. "If we try to sell a product with 8-point type to older consumers, they won't be able to read it. We may lose a customer over a little thing like that."Stability Gains GroundShipping-carton stability is also becoming more vital, notes Weber-Stephens' Granzin. "Consumers are very particular about what they buy, and they pick up cues from the carton," he says. "From a structural standpoint, the carton has to not only protect the product, but protect the carton so the product looks to be in good shape. Consumers won't buy a product if the package corners are dented or scuffed or there's a hole in the box. They're afraid the product might be damaged."This is leading to stronger cartons designed with more structural stability, he says. "How it's displayed in the store is a big concern, but what happens to it on the way to the store is an even bigger one," he says. "Our products often are handled eight or 10 times before they get to the shelf, and we have to make sure that doesn't hurt the image."Controlling The ShelfThe need for packaging to sell the product is gaining ground, consultants note, as retailers become more restrictive about which displays they allow into aisles. More companies are trying to gain category-manager status, so they can organize the entire aisle with their typefaces or colors. Some retailers are allowing manufacturers to add appliques to vertical racks or place snap-on covers over the columns to frame the space and create more selling area."They are willing to give more control to the manufacturer in an effort to 'soften' the department's look," Mag Hardware's Gleason notes. "Each manufacturer's packaging becomes the differentiating point, but the entire aisle reflects the managing manufacturer's product in typefaces, coloring or other subtleties."On a smaller scale, color codings and families of products are being stressed, to provide visual cues and familiar bases for consumer decisions. At Miller Brewing Co. in Milwaukee, for example, the company introduced a family look to the core brands in 1995 to relate the products to each other better, says spokesman Jeff Waalkes. USG also has grouped more of its products, taking advantage of its major brand names, like Sheetrock wallboard, to sell related accessories.Miller also made a functional change to the packaging recently by introducing a large-opening tab and a 16-ounce wide bottleneck to allow for easier pouring. Those packaging innovations have been adopted by several brewers, showing the rapidity with which long-standing packages suddenly can find improvements.New techniques are always being discovered to help packages stand out. Ideas now being examined include holograms, microchips and even aroma cards. "There's a lot of stuff that'll be fascinating," says Coleman's Asher. "Some of it, like microchips, will go beyond being a gimmick. You'll be able to include a lot of information that now gets lost. But to be realistic and pragmatic, it's not going to happen overnight." Shelf Presence's Erickson, too, sees new techniques on the horizon, including thermochromic inks that will pop up messages or images as temperatures change. But most will happen only on a limited basis for promotional periods due to costs.Dual Marketing To GrowOne area where Erickson anticipates more marketing focus, however, comes in dual targeting through package redesigns. "With the aging of the Baby Boomers, I see great potential for selling the same product in two different ways by changing the package and message," he says. For instance, a Kit-Kat candy bar now marketed to kids as candy could be sold to senior citizens as a bedtime snack with a different package. The same can happen with some soft drinks, which could have the same formulation but different portion sizes or packages aimed at children, teenagers and adults -- none of whom would go near a product created for the other groups."There's tremendous pressure on marketers, due to slotting fees and the volume of competitors, to make a product an overnight success and keep it a success for years and years," Erickson says. That pressure rises as ad rates and production costs rise. "They begin to realize they've done as much as they can with advertising and have to look somewhere else to gain an impact."Packaging can be the place. "Package design can directly affect impulse sales and long-term loyalty," Erickson says. "Little by little, marketers are beginning to say, 'We thought we'd done a lot with our packaging, but we haven't done enough.' "

Packaging's Delicate Balance

P2PI MEMBERS

JOIN P2PI

Related Images

Business Topic

Company