Packaging Impacts Performance

Consumers buy with their eyes. When shopping, the appearance of a product’s packaging has a large influence on sales. A strong package helps cut through the noise and clutter generated by hundreds of thousands SKUs carried on the average grocery store shelves. Packaging needs to speak to consumers; it has to convey value and a lot more.

According to research from The Nielsen Company, 64% of consumers try a new product because of packaging! And it doesn’t stop there; 41% of repeat purchases are attributed to consumers liking the packaging as well. And although consumers use their eyes, they also use touch as a factor when buying. Touch leads to purchase roughly 61% of the time. If marketers can get a consumer to pick up the box, the odds are high that a purchase will be made.

There are number of elements to good package design:

  • Be visible
  • Stand out on the shelf
  • Elicit an emotional response
  • Be memorable
  • Be distinctive

Nielsen also undertook a study to evaluate and understand packaging design in an effort to calculate the return on investment for good design. The results were powerful:

  • Visibility lift: +34%
  • Increase in preference: +28%
  • Forecasted sales impact: +5.5%

Go ahead and look at the shelves next time you are shopping. What catches your eye – and what makes you pick up a new product?

Group Activities and Discussion Questions:

  1. Discuss the importance of packaging with students. Ask them what factors lead them to pick a product off a shelf.
  2. What products have packages that are effective? Ineffective?
  3. Bring in a random sample of packaged goods that are in your pantry shelves, or make a trip to the store to find some good and bad examples.
  4. Divide students into teams.
  5. Have each team come up with a redesigned package for the product.
  6. Have the class vote on the best re-design.

Source: The Nielsen Company (2016). Perfecting packaging design.

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Draw that Logo!

Logos are a critical part of a branding portfolio. Logos are graphic marks or symbols that help to market specific products and companies. They can convey tone, feeling, energy, strength, and utility. Logos are also global in scope and help with cross-language marketing around the world. No matter where one is at in the world, certain logos are instantly recognizable.

We can all identify our favorite logos even if they are not on a package or are unnamed. For example, consider the swoosh, apple, golden arches, and more. (You can probably guess these companies from just the word description – even without seeing an image.)

However, being able to recognize a logo is quite different being able to draw it from memory. In a recent study, 156 people were asked to draw some of the most iconic logos from memory. The results were not good. But, being able to draw a logo is not as important as the consumers’ ability to recognise the logos.

In another study conducted for Ad Age, 1,296 brand experts and 2,201 consumers were asked their opinion of some of today’s best-known logo. Top choices from marketers and consumers (in order) were fairly similar:

Rank Marketers Consumers
1. Nike Coca-Cola
2. Apple Apple
3. Target Target
4. McDonald’s McDonald’s
5. Coca-Cola Gerber
6. FedEx Quaker
7. Walt Disney Google
8. Volkswagen Nike
9. Twitter Dunkin’ Donuts
10. BMW Planters

 

What’s your favorite logo?

Group Activities and Discussion Questions:

  1. Discuss the important role of branding and logos in marketing.
  2. Ask each student to write down the company name of their favorite logo (don’t tell them why yet).
  3. Then, have students go to the white board and try to draw that logo. What are the results compared to the actual logos?
  4. Next, show the Ad Age logo list to students. What are their opinions about the logos?
  5. Finally, for a product of their choice, have teams of students design a new logo for a product.

Source:  Advertising Age. (2017, Nov. 1). You like your logo, but do your consumers?; Schonbrun, Z. (2017, Nov. 13). Logo recall is not what you think. New York Times.

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Pizza Baby Registry

After the wedding, come the babies, right? Perhaps not always that way, but this is certainly the case for Domino’s Pizza. Nine months ago (!) the company started a wedding registry for guests who want to give the happy couple pizza parties and party food. Now that the wedding festivities are over, Domino’s still wants to remain involved in the new couple’s life by offering an online baby registry through Gugu Guru.

The new parents-in-waiting can create their own baby gift registry for Domino’s pizza, foods, and gifts, including:

  • Hormonal and Hangry pizza
  • The Gender Reveal pizza
  • Pregnancy food pack
  • ‘Dadchelor’ Party food
  • Baby goods such as onesies, mugs, tumblers, shirts (Pizza for Two), and more…

And for a limited time, Domino’s also has a big contest give-away for new parents to win pizza for a year, plus a line of baby and parent gifts.

What were you expecting?

Group Activities and Discussion Questions:

  1. Discuss pizza delivery in general.
  2. In which stage of the product life cycle is pizza delivery?
  3. Show the Domino’s baby registry: http://www.dominosbabyregistry.com/
  4. A brief video can be viewed at: https://youtu.be/N6eeNUQvPqc
  5. Next, divide students into teams.
  6. Have each team select a product or service that is in the mature stage of the product life cycle. What can be done to extend the life cycle and increase sales?

Source:  Domino’s Pizza (2017, Nov. 29)

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