Attention, Please

Retailers such as Smart & Final are investing in store brand packaging innovations in an effort to catch the shopper's eye.

A recent poll revealed that consumers make 80 percent of their consumer packaged goods (CPG) purchasing decisions before they even enter the store. However, the same poll suggested that two-thirds of private label product purchases are made "in the moment" at the store as the shopper walks the aisles. And packaging plays a big part in the purchase decision.

Not surprisingly, a packaging revolution of sorts is happening at the shelf. Packaging is evolving at record speed, with both private label and CPG brands updating their product offerings on a regular basis. When iconic brands such as Heinz roll out radical aesthetic and ergonomic changes, you know the point of purchase is ground zero for product marketing today.

Retailers are introducing fresh and bold product lines that challenge the status quo. Their store brands are adopting innovative structures, graphics and finishes to compete — and in some sectors, to overtake — their CPG rivals.

When Smart & Final Stores LLC, a City of Commerce, Calif.-based retailer, purchased Henry's Farmers Market in 2007, it inherited a group of stores with a loyal customer base and a well-established portfolio of natural and organic private label products. One of the more successful store brand lines was in the snacks category. However, Smart & Final saw gaps in the product offering, and trend-related research suggested that consumers were looking for a more premium and/or authentic snack product.

Focused on these thoughts, Smart & Final developed a 29-item range of snacks that pushed suppliers and creative and print partners into areas more traditionally associated with CPG companies and products.

"We wanted the structural and graphic design to catch the shopper's eye," says Michelle Weisberg, director of natural & organic products for Smart & Final.

A stand-alone identity was developed under the Sun Harvest brand through bold graphics that incorporated recognizable product shapes into the window device. At the print stage, combination matte and gloss finishes were used to add a literal and metaphorical layer of sophistication and brand identity. Metallic options were chosen carefully to enhance product appeal without alienating an environmentally conscious customer base. Attention was given to pack sizes and positioning, including cross-selling efforts.

Today, when shoppers walk through a Henry's store, complementary products such as salsas employ the same new identity that Henry's customers have quickly come to trust.

"The resulting sales are a testament to our decision," says Raymond Swain, vice president of corporate procurement for Smart & Final. "Henry's Brand Snacks were already a big piece in the corporate brands program, but since the Sun Harvest snack introduction and the addition of unique SKUs, the brand's overall share of the category has grown nicely."

Smart & Final's brand overhaul (which goes well beyond the introduction of the Sun Harvest brand) has been well documented. In 2009, the retailer distilled its corporate brands into much sharper focus. And for 2010, it has turned its attention to some of the niche brands its customers love.

One such brand is Ambiance coffee.

"We take a multi-tier approach to this brand," explains Todd Fryer, director of corporate brands marketing. "Our customer base is much wider than most retailers, and as such, the design, innovation and structure has to be calibrated accordingly."

Interestingly, Ambiance began its life in foodservice, but it became increasingly clear that the brand had made the jump to the consumer level. To develop this trend further, Smart & Final teamed up with sector innovator, Mother Parkers (www.mother-parkers.com) and Marketing by Design (mbd), a Boston based design agency (www.mbdesign. com) to create a premium household version of the coffee.

Ambiance Premium World Class Selections is a new 12-ounce offering that structurally and visually progresses a brand coffee drinkers already know and love. Mirroring the CPG world, a common 12-ounce bag is used to promote the base values of the brand as a whole. A minimal and subtle design with a combination of metal, gloss and matte varnish finishes positions this product firmly into the premium category. The second components of the packaging are the product-specific labels that brightly and vividly emote the far-reaching locations from which the coffee is sourced.

The changes might be dramatic, but they work well.

"There remains a cohesive quality in this premium offering that will not alienate the shoppers of the lower-tier coffees," Fryer says.

The product line is due to hit shelves at the time of publication, in time for the fall, when sales naturally increase.

"Our expectations of Ambiance continue to grow," Swain concludes. "The brand has an elasticity highlighted in the multiple product tiers and size offerings, and it is therefore quite natural that new solutions are required to differentiate the various levels. We look to packaging and marketing innovation to make that differentiation."

Maria Dubuc is owner of Beverly, Mass.-based Marketing by Design, LLC (mbd). Contact her at 978-998-6611, or visit www.mbdesign.com for more information.

Today, when shoppers walk through a Henry's store, complementary products such as salsas employ the same new identity that Henry's customers have quickly come to trust.

Ambiance Premium World Class Selections is a new 12-ounce offering that structurally and visually progresses a brand coffee drinkers already know and love.