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recent announcement by the National Bureau of
Economic Research confirmed what has been a
foregone conclusion, The United States is now
“officially” ina recession. Amidst daly headlines
‘of bailouts, bankruptcies and job losses, there's
no question thatthe downturn is already affecting shoppers’
attitudes and behaviors. Infact, in our stules, weve repeatedly
heard that people are “feeling the pinch” and that its affecting
their habits, from “trip consolidation” stateges (to save on
‘gsoline) down to individual brand selections in the aisle.
‘Of course, these larger consumer and economic trends impact
the packaging of consumer goods. Here, I'l highlight four
primary issues to consider in shaping your packaging strategy
for success in these difficult economic times.
COMPETING AGAINST
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increased focus on pricing and a dramatic improvement in
the packaging and branding of retail brands.
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26 BRINDa xcs wou brandpackaging com JAx09the appearance ofthe leading national brand
Instead, they've moved towards a more
sophisticated approach that erophasizes a
brand name over generic product
escriptors and uses mote refined
primary visuals The results that
store brands are now well
positioned to benefit from the
recession, and they ae apy
gaining market shore. Walgreen’, for
«example, recently announced that its
private label sles ad increased 15 percent.
For leading national brands the direct implication is that.
packaging has to work harder than ever to justify price
premiums. While this is easier sad than done, we've seen
several strategies that can be effective:
Differentiate on a visceral level
More than evr, itis critical to have packaging tat simply
“looks beter than the competition and, thus, discourages
direct prce-based comparisons. Unigue shapes, structures and
Aelvery systems ae typically the most efetive strategy in his
regard, ait dificult to differentiate when all brands are in
the same box or bot. In addition, unigue structures can help
shoppers break away fom pre-conesived notions of what
product “should” cost For example, Simply Orange was
Introduced in a carafe that broke category packaging
conventions created differentiation and, ultimately, helped to
suppor a higher price point, Unique structures are also easier,
to protect legally an, given the greater investment required,
les likely tobe copied by store brands
Leverage brand personality
‘We've also found that itis very important for national brands to
leverage the built-in advantages created through advertising and
years of use by connecting with shoppers on an emotional level.
Often, this comes by prominently featuring familar character
or icon (such as Tony the Tiger), who can link to the underlying
goodwill tha shoppers associate with the brand through past
experience. Ifnational brands ignore tis emotional
component—and end up featuring beautiful Bowls of cereal
similar to those on store brand packaging—the notion thatthe
produits aren't all that diferent is reinforced. More importanty,
this encourages a rational decison that may very well favor the
lower-priced store brand
Highlight a tangible point-of-difference
Inadeltion to connecting emotionally national brands should
focus on highlighting tangible product differences relative to.
store brands such as unique ingredients or nutrients, Kraft
Singles execute ths strategy effectively by usnga brimming
ass of milk as its packaging visual, which draws attention toa
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characters like Tony the Tiger, for
instance, reinforce underlying
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primary differentia
claim (i.e,"Made with four
‘cups of real milk”). In these
difficult times, shoppers need these tangible reassurances to
convince them that national brands are “worth the extra money”,
In many cases, familiarity alone is no longer enough. And more
abstract brand-level claims, such as Budweiser’s recent emphasis
‘on “drinkabilty,”aze typically less compelling,
2 REINFORCING VALUE
As households tighten their belts it becomes more important to
convey value effectively on packaging, First and foremost, this is
a question of message content—and effective strategies
typically vary based on the brane'’s positioning,
For lower priced brands, direct comparisons (e.g, “40 percent
‘more product than brand A") are particularly effective, since
shoppers are more likely to compare options in a recession.
‘But marketers may need to be abit more creative with premium.
brands. There are still many ways to “spin” a value message. For
example, a brand can be positioned as a less-expensive
alternative o a restaurant meal ora trip toa spa, or perhaps as @
“small indulgence” that makes life special. In fact, premium
bands typically fare well in economic downturns.
For these brands, however it is important to resist the
temptation to make price/value the dominant messaging on
pack. Highlighting such claims only encourages shoppers to
prioritize them in their decision making, And it ultimately leads
toa more rational, considered purchase that often benefits the
lower-priced brand. Certainly, product quantity (servings per >
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helps fight off the private label threat.
pack, price per serving, ee.)
can aet as an important
value reassurance, but it
should not overwhelm the
brand positioning.
Wsalso important to consider
sage placement or positioning, Our research of packaging
viewing patterns indicates that packages are not read” in a logical
top-to-bottom manner and that “flags” positioned in top left or EXPLORING NEW
right corners are typically missed by two-thirds of shoppers, SIZES & PRICE POINTS
Recessionary cycles present an important time to consider
‘Thus, the corners ofa package are typically good locations for alternate sizes and price points, Generally speaking, we've seen
n quantity, te), but not for primary claims. If that, just as shoppers gravitate towards ends ofthe value
the objective isto highlight a price or value claim, the message spectrum (je. budget brands and premium indulgences), they
needs to be integrated within the shoppers’primary visual field also move tothe extremes in terms of packaging size.
by juxtaposing it near the brand image and/or main visual,
Many shoppers look for larger value packs, inorder to geab cost
savings (lower price! unit) and to consolidate shopping trips, while
others are forced towards smaller sizes to
limit absolute spending or, perhaps to
prevent waste (unused/spoiled food, et).
To capitalize on these trends, marketers
should explore new ways of bundling
product to offer value, to lock in multiple
purchases and to give shoppers reason to feel
‘good about buying their favorite brand. A good
example is Frito-Lay’s24-unit “Family Sack.
‘On the other enel of the spectrum, smaller packs
targeted to convenience and specific use, such as
Kraft salad dressings 102 “on-the-go” packaging,
‘ean be success in ths spending environment
despite the higher cost per unit.
Ere en eee
“Family Sack appeal to consumers
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30 BRAND» cass ‘wwerbrancpackaging com JAN09