With the global economic recession not yet abating, South Africans are being affected by the impact that it has had on the retail industry- which has ultimately trickled through to the packaging sector. As a result of this unstable environment, brand managers are investigating innovative and cost-effective ways to package and market their products in order to remain relevant and stay one step ahead of the competition.
Over the last few years we have seen packaging evolve from a purely functional device intended to convey vital information and protect the product, to a key role-player in the purchasing decision-making process. Studies reveal that, on average, product selections are made within seven seconds, 70% of all purchasing decisions are made in-store and consumers spend an average of only 20 minutes in a store at any given time. This evidence has led to the realisation that a product’s packaging, as much as its contents, is what ultimately influences the buyer.
The basics have not changed. In order to successfully sell a product, brand owners should ensure their products have a prominent in-store presence, and that they are well-packaged and merchandised in a strategic location. The packaging needs to be eye-catching, cut through the clutter and provide visual clues to the quality, safety and value that the brand offers. These factors will always remain relevant and important.
The green revolution has played a huge role in shaping the way products are packaged- both figuratively and literally. A recent study conducted by Ipsos Marketing, Consumer Goods USA confirms this trend: It found that consumers have re-adjusted their priorities, particularly regarding food products, and that they are increasingly choosing products that offer improved health benefits, fresher ingredients and environmentally responsible packaging.
On the local front, we are beginning to catch on- albeit at a much slower pace than our European and American friends. The good news is that while our primary motivation may still be economical, our desire to decrease overheads often leads to positive eco side effects. For example, goods that are not over-packaged are more cost-efficient to ship and subsequently more sustainable too.
Source reduction also has its cost-savings and environmental benefits. There are a few pharmaceutical companies that have started doing away with outer cartons by including patient information directly on the bottles, using Pyrotec’s Fix-a-Form leaflet labels. Fewer raw materials are utilised and the carbon footprint is reduced as less suppliers are needed, which also results in the company saving money. Going green doesn’t only make environmental-sense; it makes business-sense too!
Another key development in the industry has been the integration of packaging and on-pack campaigns with media. With the advances in technology, mobile and social media have risen to the top of the marketing mix, and on-pack campaigns need to seamlessly integrate with all forms of media.
New media platforms are far-reaching and still growing at an alarming rate. Brand owners are able to engage their customers directly and at a relatively minimal cost. When integrated with a well-planned on-pack campaign, new media can be used successfully to boost brand awareness by communicating and connecting with the target audience directly through a medium they are already comfortable with.
On-pack campaigns remain as important as ever, as they provide an opportunity to communicate and drive engagement with the brand by enhancing the overall customer experience. Key on-pack drivers such as discounts, competitions, coupons and useful tips all act as incentives and effectively initiate a conversation.
By paying attention to these global developments, we are able to deduce what critical factors need to be incorporated into our marketing strategy in order to successfully position our brands as market leaders and boost sales. With a little thought and effort, we can turn around a flagging bottom line by addressing these issues head-on.
