The success or failure of many consumer package goods companies is determined by their customers’ split-second decision-making in thousands of different points of sale. Retailers, on the other hand, must anticipate the needs of consumers and tailor promotion, pricing, and placement decisions on these needs. These two supply chain groups usually have different points of view, which places them at odds with each other.
Successful retail packaging design should collate the vision of brand owners, suppliers of packaging, and retailers. Here are the keys to successful retail packaging design.
Insight into the retail business
Successful retail packaging design focuses on factors such as performance and efficiency. Additional focus should be on the factors that determine retail success such as seasonality, planogram development, syndicated data, and sell-through. These retail factors are often foreign to packaging designers and are often overlooked.
Focusing on the buyer
Packaging sales teams are guilty of placing too much attention on co-packers, fulfilment houses, and marketers while ignoring procurement teams. This strategy may have been effective in the past since it takes advantage of the organizational dynamics of many companies. However, the focus should shift to retail buyers since their success is evaluated based on direct sales.
Competitive pricing is a major determinant in choosing a retail packaging design. Manufacturers are often carried away when they cite attractive packaging as an attraction point for customers without regard for the price. The amount that a customer is willing to pay for packaging depends on all other costing variables in the entire supply chain. Custom packages are created at a low price point that does not add unnecessary strain on the customer.
Innovation priorities for retailers are often different from those of packaging companies. A look at the R&D teams of many packaging companies highlights their focus on the use of high-end materials to create forward-looking packaging through improved processing. Conversely, retailers are looking for ease of use, cube efficiency, and shelf efficiency. Innovation should consider the perspectives of both retailers and packaging manufacturers.
A lot of emphasis is placed on how products are presented in stores. Successful retail packaging must, however, focus on the in-home presentation of products. Many homes have different products on their shelves, and the ease of finding a product as a result of its packaging contributes to customer preferences. If a product is never presented on the table due to its unattractive packaging, the likelihood is that it will not be purchased again. Focusing on in-home presentation fosters consumer loyalty and promotes repeat business.
Successful retail packaging design should set retailers apart from their competition. Retail packaging design should promote repeat business. The performance, ease of use, and attractiveness of packaging are important considerations in distinctive branding. Packaging designers, manufacturers, and retailers should function as a team to capture the short attention spans of consumers.
It is important for packaging designers and suppliers like Dunwiddie Custom to visit stores where their products are sold to gain insights into the keys to successful retail packaging design.