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Packaging power: The effects of package design throughout the supply chain
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Packaging power
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eres an interesting fact for marketeers. A 2005 study conducted by the Paperboard
Packaging Alliance showed that in the minds of consumers, product and package
are one and the same. Whatever a package says to a shopper through words,
graphics, material, size is exactly what its contents become, be they a bottle of perfume or
a bottle of milk. An interesting fact for distributors: choosing the right size and material for
your packaging could cut your logistical costs considerably. Wherever you are in the supply
chain, your department needs to think hard about packaging: an under-discussed but
increasingly important factor in commercial success.
In her paper investigating product packaging, Bo Rundh lists the external influences on
package design that show it to be a continuously developing part of business. Over the past
decade, changes in consumer behaviour, environmental concerns, globalization,
distribution, marketing and technology have turned effective packaging design into a fine
art. Designers must now be aware, for instance, of current cultural opinions on healthy living
and lifestyle choices, of the latest policies on green business practice, and on local
preferences in the different regions they sell to. They must also consider unit costs, as well as
the durability of packaging materials for the purposes of shipping and handling. Balancing
these considerations carefully is central in establishing competitive advantage.
It is important that businesses do not just equate packaging with branding, although any
successful marketing department will be well aware of this valuable link. Packaging needs to
be thought through from every angle of the supply chain, and each department should share
their concerns throughout the business to find a design that meets all expectations. The
packaging supplier, for example, will be most concerned about how easy it is to produce
and how cheaply it can be done, whereas the marketeer, coming to the problem with ideas of
brand competitiveness, novelty and luxury, might have ideas that create a conflict of
interests. Packagers, fillers and distributors will need to think about the durability of the
package, whether it can cope with hot and cold products and whether it can be filled quickly
and easily. For retailers, the shelf space needed per item will be an important consideration,
as will a package design that resists tampering and wear and tear. The consumers, at the
end of the chain, will want to be convinced that a package will keep a product fresh, that it is
light and easy to carry, and that it communicates brand values that speak to them. Getting
packaging just right, then, can be a more complicated business than it may seem.
Rundh briefly discusses five corporate stories that illustrate effective packaging. Common
to them all is an active effort to understand and appeal to the consumer in a crowded
marketplace. Understanding that cost is less of an issue with their customers than it once
was, but that quality and brand experience have become more important, Chokladfabriken
in Stockholm developed packaging that equated their chocolates with the refined tastes of
PAGE 10
STRATEGIC DIRECTION
VOL. 26 NO. 5 2010, pp. 10-11, Q Emerald Group Publishing Limited, ISSN 0258-0543
DOI 10.1108/02580541011035393
Downloaded by BIBLIOTECA CENTRALA UNIVERSITARA MIHAI EMINESCU IASI At 06:30 19 February 2015 (PT)
the wine connoisseur. Simple brown board suggested a natural and authentic product, and
extra flaps with tasting notes tacitly complimented the purchaser on their discerning tastes.
At Ballantine Whiskey in Scotland, different packages have been created to appeal to the
distinct demographics of alcohol purchasers. A contemporary, graphic design appeals to
the younger market, whereas traditional packaging still wins the favor of the middle-aged
consumer. For the top of their range, materials, embossing and text are all reconsidered to
suggest luxury, and no consideration is overlooked. Recognizing the fact that a slightly
damaged package on a shelf damages the impression of luxury, for example, a more
durable board was chosen for the most expensive bottles. Ballantine is, then, an example of
a company that understands that one size rarely fits all.
Seasonal packaging is another possible area through which savvy designers can win
commercial advantage. At entrepreneur Lars Larsdens Jysk Nordic stores, for instance, the
observation that sales of bedding go up in December led to the design of novel and
eye-catching Christmas boxes. Consumers were attracted to buying the bedding that was
already wrapped and presented as an attractive gift. The success of the idea showed that
customers react well when packaging understands why they are buying and that they
appreciate the additional aesthetic experience.
Rundhs papers follows some preliminary studies of package design, offering observations
to inspire further research and discussion. Considering the importance of packaging, there
is relatively little literature on it, and Rundh suggests further opportunities for study that
include the role of graphics on sales and packagings relationship to marketing strategy.
From the point of view of the executive, there is enough evidence in this paper to suggest
packaging should be a key point of discussion across the business. It is, after all, the last
chance to influence the consumer before the decision is made.
Comment
Keywords:
Marketing strategy,
Packaging,
Food packaging,
Product design,
Competitive advantage
Reference
Rundh, B. (2009), Packaging design: creating competitive advantage with product packaging, British
Food Journal, Vol. 111 No. 9, pp. 988-1002.