Monthly Archives: November 2013

Never underestimate the power of packaging.

During the holiday season a couple of years ago, Coca-Cola found out just how iconic its packaging really is when consumers complained about being confused by regular variety Coke holiday packaging. In an effort to support the World Wildlife Fund to celebrate polar bears, the company introduced new white cans for its regular Coke variety for the holidays. The problem? To consumers this holiday promotional packaging design looked very much like Diet Coke’s silver packaging and many consumers bought the wrong product. Other consumers were perplexed because they couldn’t find the Regular Coke red cans.

Consumers really do use packaging design as an in-store reference in grabbing the products they want to buy. Comments from Coke loyalists flew fast and furious after the launch of that special holiday packaging design, which should give food and beverage marketers pause. Packaging really is one of the most potent tools for branding and marketing food and beverage products.

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Where’s one of the best places food marketers can advertise?

For years, food marketers have struggled with this question, particularly for those brands and products that are not owned by Fortune 500 companies with deep pocket ad budgets. The answer can be found on something all food products have in common: packaging.

It has been estimated that 40%, and maybe even as high as 70%, of consumers make purchase decisions at the shelf level. They may use a shopping list, but the list is more often category specific, but not brand specific. There are many reasons for this shopping behavior, price point perhaps one of the most obvious. However, the packaging design that jumps off the shelf most often wins, among products within a category.

Packaging as advertising levels the playing field among food category competitors because so many consumers make spontaneous, at-the-shelf purchase decisions, irrespective of how much brand advertising they may have been exposed to. The first order of business for food marketers is investing in creative, effective packaging design, but what are the fundamentals of creative, effective packaging design?

Differentiation: The appeal of food and beverage packaging in the highly competitive retail environment is visual, and packaging design must visually convey product attributes in a way that differentiates one brand or product over its competitors.

Visibility: In the visually cluttered retail grocery environment, packaging must be designed for maximum visibility. Placing branding on all display panels, drawing consumer attention through the effective use of color and images, and other graphic tools that create visual contrast are all strategies used for effective packaging design.

Functionality: Consumers want packaging that is easy to handle, resealable for easy use/reuse, and convenient to store at home. Packaging design must not only fit the requirements of the product, it must fit the functionality requirements and expectations of consumers.

Shop-ability: Consumers compare brands in a matter of seconds in retail environments and effective packaging design enables consumers to quickly find product claims and attributes. Shop-ability in packaging design means that consumers are able to find key product claims where they expect them to be, and make the product comparisons that are inherent in consumer choice.

Messaging: Studies have shown that consumers typically spend five seconds looking at a package…barely enough time to register the branding, product serving suggestion photo, and the most important product attributes. Copy and messaging on effectively designed packaging is more akin to billboard advertising than other forms of advertising…a quick read with a single, clear message.

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Packaging can redefine food products, invent new categories.

Innovations in packaging materials and configurations, along with creative graphics and messaging, have opened opportunities for food marketers to redefine products and actually invent new product categories. An early example of this trend was the redefinition of baby carrots as a snack food by carrot farmers who began offering them in convenient grab-and-go single serve packaging. Since then, there has been a proliferation of product redefinition through creative packaging and marketing.

Paying attention to consumer behavior and interaction with a product can also lead to product redefinition and expanded sales opportunities. Recently, in response to the younger generation that grew up putting ranch dressing on everything from veggies to fries and pizza, Hidden Valley Ranch created Hidden Valley for Everything. The classic ranch dressing was renamed and re-packaged to fit the category definition of condiment. The upside for Hidden Valley Ranch is that their product is now available in an additional in-store category, condiments, where millennials would expect to find it.

Rethinking and redesigning packaging can infuse new life into an entire category, influence brand choices, and shape purchasing decisions. Phil Lempert, supermarketguru.com, recently noted that ” 71% of consumers avoid purchase of certain products because of packaging”. He further stated, “69% (of consumers) report a change in shopping habits from a year earlier to favor packaging they believe to be safer”.

With a growing array of new packaging materials and technology, many food and beverage marketers are taking advantage of the opportunity to grow sales through packaging redesign. From a marketing perspective, packaging is the one media that brands completely own and control.

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Developing a food brand name. Way beyond a brainstorming session.

Creating a great new food or beverage brand name and visual identity is so much more than a brainstorming frenzy. It’s a process, that when faithfully adhered to, results in memorable, successful food and beverage brands.

Considering the significant resources invested to support a food brand, from developing its visual presence and packaging, to marketing support, advertising, public relations, and a myriad of promotional and image building activities over time, it doesn’t make sense to short-circuit the brand name creative process. Taking these steps will keep the process on track and help ensure a successful outcome:

Timeline. Developing a brand name requires adequate time for creative efforts, legal input, and decision maker buy-ins. The process is much easier to manage when everyone has a realistic expectation of the time and effort required before the process begins. A well planned timeline also keeps the process on track by defining milestones and an anticipated completion date.

Solid Creative Brief. The best creative efforts are built on a thorough understanding of strategic objectives for the food or beverage brand, the type of name most suitable for the brand, and the criteria for evaluating creative concepts. While there is always a temptation to rush directly into brainstorming, a solid creative brief provides the yardstick by which ideas can be measured in meeting the objectives for the brand.

Decision-maker Buy-in. To achieve a successful food or beverage brand development process, it is imperative to identify all of the decision-makers and engage them in the process from the very beginning. Their early input will drive creative efforts in the right direction and will alleviate surprises at the end of the process.

Continuous Legal Input. Brand name and visual identity development is as much a legal process as a creative one. Proposed names and decisions on which food product categories are applicable to the brand need to be legally searched for availability. An initial list of proposed names should be submitted to the legal team as early in the process as possible so that unavailable names can be eliminated and alternatives developed. This is a back-and-forth effort between the creative team, the decision-makers, and the legal team, until an acceptable name is agreed upon and cleared legally. Because of the longevity of food and beverage brands, and the resources needed to build them, it can be very short-sighted and expensive not to complete the legal due diligence upfront.

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Are you frustrating consumers with your packaging?

In a recent study by global research firm Ipsos Innoquest, consumers indicated that they place a high value on food and beverage packaging that preserves product freshness and is reusable. Over 60% of respondents said they would pay premium prices for products in packaging that “keeps food fresh longer”. Another 50% placed a high value on packaging that is “easy to reuse”.

Other recent packaging studies reinforce consumer frustration with food packaging. Almost half of consumers in one such study were “frustrated or very frustrated” with food packaging. Ease of opening packaging was the single biggest complaint. The packaging formats mentioned most often by frustrated consumers included clamshells, paperboard boxes, bags/packets, trays with lids, shrink wrapped, plastic bottles and septic packs/cartons. Another recurring theme voiced by consumers was the need to use some type of tool, knife or scissors, to open packages that already had “easy to open” copy on the package. Ease of opening was an issue for all age segments in this study and not confined to older consumers.

User convenience, resealable packaging, and retaining food product freshness are the three most important issues for consumers in evaluating product packaging and purchase decisions. Consumers expressed a great deal of frustration, if not downright hostility, toward brands whose packaging resulted in product waste. Retaining freshness and being able to “use all of the product in the package” were repeatedly mentioned by survey respondents.

Clearly, food packaging functionality is a significant factor for consumers when considering product purchases. One frustrating packaging experience can “turn off” consumers no matter how good the product may be. Considering the investment food and beverage marketers make in brand and packaging development, it is critical that packaging configuration, materials, and functionality be included in the design process. Packaging provides food marketers with a great opportunity to communicate with consumers and demonstrate their commitment to consumer satisfaction.

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Consumers get cues from colors on food packaging.

Color can have profound effects on consumers, making it an important element in food and beverage packaging design. Research into the effects of color have revealed that consumers subconsciously respond to color with very specific social and cultural messages. Understanding the responses evoked by color can provide insight into which colors may be most appropriate for specific food product packaging.

In effectively using color on food product packaging design, the task is to match the brand message, product positioning, and product category with colors that will reinforce product marketing efforts and drive consumer purchase decisions. The flip side is to make certain that consumers are not given miscues through the use of color on food packaging.

Here are some cues on color:

1. Blue: Blue is a universally appealing color that studies indicate most people like. It connotes a sense of trustworthiness and dependability. According to a recent Journal of Business study, consumers are 15% more likely to return to stores with a predominately blue color scheme. For example, a blue color scheme for food packaging would be a good choice for products with a positioning statement focused on dependable product performance.

2. Green: The color green has become the poster child for environmentally friendly, natural, organic, and fresh. While it is pervasively used in food product packaging, the color green remains a good choice for products in these categories based on the ingrained connection consumers have with this color.

3. Red: Red is considered the strongest emotive color and marketing experts caution that red acts as an alarm to consumers. On food packaging, red is best used sparingly, primarily to call out specific information in the context of another, less alarming, more soothing color scheme.

4. Yellow: Yellow is a color that evokes high energy. Marketing studies have also found that yellow stimulates appetite, which explains its prevalent use in QSR and fast casual foodservice operations. The use of yellow on food packaging, for example, may be a good choice for snack foods or self-indulgent products such as candy, which are often purchased on impulse.

5. Orange: Research has shown that orange is associated with affordability and fairness in the responses of consumers. Retailers such as Home Depot, whose message is one of value, use orange in their brand identity and throughout their retail environments. Contrast this with Lowes, a Home Depot competitor, whose color scheme is primarily blue and whose positioning is primarily one of trust and dependability. The color orange would be a good choice for food products whose primary message is value and affordability.

6. Purple: Throughout history, purple has been associated with royalty. It evokes in consumers the notion of luxurious and expensive, but probably worth the cost. Purple is widely used for cosmetic and fragrance packaging, at both ends of the price point scale. In food packaging, purple can be seen on chocolate candy and individually wrapped frozen treats packaging, particularly for those brands whose message point is focused on a little self-indulgence.

7. Black: Black is the calling card color for sophistication and luxury. It is commonly seen on high-end cosmetic packaging and is also used by more affordable brands to upscale their position. Black is a strong statement for food packaging and works best for products that are positioned as upscale rather than products positioned for their value proposition.

8. White: Marketing experts affirm that consumers associate the color white with purity and simplicity, as well as honesty and modernity. In food packaging, Pillsbury Simply…Cookies line of refrigerated, ready-to-bake cookies is an example of using primarily white packaging to reinforce the positioning of this product as having a minimal number of ingredients and being quick, easy to bake off.

These color cues should not limit creativity in packaging design, but they do serve to remind us of the power of color. The most important take away for food packaging design is that color should be chosen carefully so as not to miscue consumers about the positioning of a product.

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Brand logo evoluton vs revolution. What’s the difference?

Brand logos broadcast a unique, memorable, and clear message about the products and services they visually represent. For food marketers, a brand logo can have a long shelf life, but as trends and markets change, it may become necessary to make adjustments. The question is: what kind of adjustments?

Since there has been an investment in branding over time, the value of an established brand logo can become considerable. There may be many reasons to consider only minor changes to an otherwise serviceable brand logo such as refreshing the look to reflect current trends. There may also be many reasons to consider a complete logo redesign, such as mergers, acquisitions, reorganizations, and re-direction of product or product category focus. The brand logo change then becomes a decision between brand logo evolution or brand logo revolution.

Making any change to a brand logo should be supported by a strategic business objective. This will not only assist in garnering the support of all the various stakeholders, it will also set a clear direction for the creative effort. Making any changes to a brand logo can have both emotional and financial impacts, so it is an effort typically undertaken infrequently, a once-a-decade kind of effort. Here are the degrees of brand logo change to consider, ranging from change, to evolution, to revolution:

1. Change without change. This is akin to getting a haircut without losing any length. The change is subtle, basically leaving the overall design of the brand logo intact and unquestionably recognizable. This effort usually revolves more around the message and design elements that support the logo rather than changes to the logo itself. This strategy works well for established brands with positive images within their market base. It allows the brand logo to remain relevant in a changing marketplace.

2. Brand logo evolution: Many brand logos are continuously tweaked over time to maintain relevance and encompass changes in brand strategies, but the underlying logo mark is not fundamentally changed or lost. Two high profile examples are Nike and Apple, whose products and target audiences are very dynamic. Brand logo evolution is a great strategy for brands that have established themselves as innovators and maintained their positive image over time.

3. Brand logo revolution. As history has shown us time and again, revolution is aimed at total change. For brands, this can be necessitated by major strategic shifts or by market and business events of seismic proportions. These factors can be both internal and external to the organization but the net result can be a brand logo that has completely lost its utility. As the organization redefines itself and its products and services, a brand logo needs to be developed from the ground up. In recent times, some industries have been more effected than others, such as healthcare, airlines, and financial services, and we have seen many complete re -branding efforts.

If you’re uncertain where your brand logo falls on the continuum from change, to evolution, to revolution, ask these questions:

1. Does your brand logo fit with your current business model, as well as your strategic direction for the future?

2. Does your brand logo resonate with your current and projected target market?

3. Does your brand logo convey your brand message in relevant ways?

4. Does your brand logo function and translate well across all media platforms, such as online/digital, broadcast, and print?

5. Does your brand logo clearly differentiate your brand from its competitive set?

If the answer to any of these questions is no, it is probably time to consider a brand logo assessment and possible design effort.

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