Tag Archives: packaging

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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Don’t Throw That Packaging Away!

What does your recycling bin look like? If it’s like ours, it is probably filled to the brim with boxes and packaging materials that are a result of online shopping. Too many times, a small product is encased in a large box and the result is a lot of unnecessary waste that goes into the trash. Is there a better way to reduce waste and have more sustainable packaging? Yes, and it’s called RePack.

RePack (based in Helsinki, Finland) currently operates in Amsterdam, Hamburg, and Helsinki and uses a simple concept that brands selling products online can offer shoppers a returnable and reusable packaging option. Not only can consumers do the right thing for the environment, but they also receive incentives and coupons for using the innovative packaging.

The way it works is simple. A customer places an order with select retailers and selects the RePack option for packaging. Once the item is received, the packaging is simply dropping into the nearest post box for return to RePack. It’s free to return the package, no matter where in the world the shipment is delivered. When RePack receives the returned packaging, the customer automatically receives a reward, usually a voucher for money off the next purchase.

The packaging is designed to last at least 20 shipping cycles and was designed specifically for clothing. The packaging is made from recycled polypropene and folds to letter-size when empty. Retailers also benefit as the average order value has been shown to increase by up to 30%, and it builds good will and sustainability practices among a brand’s best customers.

Go ahead, keep shopping online and you can still do the right thing for the environment.

Group Activities and Discussion Questions:

  1. Poll students: How much do they order online? What do they think about the average packaging they receive?
  2. Show RePack’s Web site and video: https://www.originalrepack.com/
  3. Discuss the consumer buying process. At which step does packaging become important?
  4. How could RePack be utilized by U.S. retailers?
  5. Divide students into teams. Have each team select a retailer and develop a promotional campaign around using the RePack packaging.

Source:  Hellgren, J. (2017, Oct. 30). Looking for circular packaging? Meet RePack. www.SustainableBrands.com.

 

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The Variation of Vending Machines

 

Consider the humble vending machines. They are virtually everywhere, and we do mean everywhere. We see them in stores, hallways, offices, subway stations, laundry mats, gas stations, and more. Not only are the vending machines everywhere, but they are easy to use, can take cash or cards, and consumers do not have to interact with a cashier or sales person. Easy. Fast. Convenient.

Now, how does something that is so ubiquitous become something unique? It starts with the application of the machine and the market it serves.  What is needed? Who needs it? Where and when do they need the products?

Even established brick-and-mortar stores contain vending machines. Recently, CVS Pharmacy began installing vending machines in various locations containing convenient necessities, healthy snacks, and personal care products. The vending machines are customized with offerings to fit each location, including products such as over-the-counter remedies, beauty and personal care products, vitamins, supplements, snacks, beverages, and more. The machines will be located in airports, public transit stations, office parks, and college campuses.

San Francisco-based company Bodega places small, automated machines in offices, apartments, college campuses, and more. Using an app makes it easy to reach inside the vending machine, take what is needed, and then be automatically billed.

But perhaps no location has as many vending machines as Japan, with an estimated total of 5 million machines nationwide (out of 17 million machines worldwide). They carry something for everyone – from bananas to flying fish soup!

Group Activities and Discussion Questions:

  1. Poll students: Where are vending machines? What do they buy form vending machines? Why buy from vending machines?
  2. Show Bodega’s Web site and video: https://www.bodega.ai/
  3. There are many videos of vending machines on YouTube: https://youtu.be/ZZmUuRG87sU
  4. Divide students into teams. Have each team select a market and design a vending machine to meet that market’s needs.
  5. Have each team present their concept and let the class vote on the most realistic idea.

Source: New York Times, Fast Company, Business Insider, Retail Customer Experience

 

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