That's A Wrap

Conventional wisdom teaches that one shouldn't judge a book by its cover. While that may be true in some instances, when it comes to store brand products, the package speaks volumes. And rest assured, consumers likely are judging the product, at least on some level, based on its packaging. So it pays to be aware of the trends and developments that are influencing consumer purchasing decisions.

Know your customer

According to Suley Muratoglu, vice president of marketing and product development for Tetra Pak Inc. (with U.S. headquarters in Vernon Hills, Ill.), almost 60 percent of U.S. households today comprise one or two individuals. He says the rise of non-nuclear families — such as couples without children, single parents and empty nesters — also has implications for packaging sizes. As consumers continue to lead busy lives away from home, both in their professional and leisure time, smaller portions have become an important new sector of growth in the beverage industry, particularly in the juice aisle.

"More and more, we are seeing convenience, size, [and] ease of storage and disposal drive consumers toward the need for greater efficiency in their day-to-day lives," he says. "Consumers are looking for products that fit their lifestyles. They want to avoid spoilage and save money, while also having the chance for more variety."

And, according to various research data from Roper Reports Worldwide, the majority of consumers around the world (both in developed and developing countries) agree that they like to buy products that can be tailored to their needs. This reality has the potential to affect a wide range of products and services in years to come.

As consumer preferences change and shoppers make smarter and savvier purchasing decisions, it is now more critical than ever for retailers to find innovative ways to appeal to the ever-changing consumer when it comes to store brand packaging, Muratoglu notes.

On the retail side, package solutions that enhance the shopping experience while providing shelf efficiencies are highly valued. The winning solution is the one that makes it easier for consumers to shop an aisle, allows for more products on the shelf and reduces replenishment complexities, he points out.

In terms of trends, Blair M. Vance, director, sales and marketing for West Bridgewater, Mass.-based Cheer Pack North America, sees the continuation of more package segmentation/specialization. He specifically mentions design, format and deliverables focused at appeasing the targeted demographics of baby boomers, millennials and Gen X.

Additionally, Vance notes more designs, formats and deliverables focused at appeasing the targeted application. Two examples he cites are the pour-back spout, which has become the norm for laundry detergent, and the Cheer Pack large-cap, which is the preferred cap for products targeted to children because of its safety features aimed to prevent choking — as adopted from the toy industry regulation. Another trend he sees is the desire for better communication on-pack that is less marketing-oriented than instructional in nature.

Other innovations Vance points to include more flexible packaging as consumers discover that high-quality products can come in flexible packages; spouted pouches that offer resealability; and products with features such as lightweight, yet durable materials, easy-to-open and reclosable options (spouted pouches), easy-to-carry features such as handles, safety and durability features, high product extraction rates, package material reductions and collapsibility upon emptying.

"All are highly valued by consumers as reflected in substantial growth of products in these packages," he says.

The power of perception

It's always important to consider what is going through the mind of the consumer when building a store brand program for optimum success. In a recent quantitative study, the Can Manufacturers Institute, Washington, D.C., revealed that canned foods are well understood to deliver what consumers need in terms of shelf life, convenience and good taste. The research also revealed that when asked which package is best for sealing in freshness and nutrition, existing canned food users chose the can nearly twice as often as they did frozen boxes/bags or glass jars (37 percent versus 20 percent).

To that end, the institute has launched a nationwide multi-year, fully integrated campaign called "Cans Get You Cooking" that builds on the insights of this study.

The message matters

According to Muratoglu, when launching new products, retailers often have the tendency to replicate the package of the incumbent brands in the category. However, retailers will have difficulty attracting attention to their store brand products on the shelf when executing in this manner. To really provide shelf differentiation and get noticed by shoppers on shelf, alternative packaging frequently is a better option.

"Shoppers often don't want to know they are purchasing a store brand, so it's best to provide messaging that [states the product] is equivalent [to] or better than the national brands," he says. "Attractive package selection and good package design can help attract shoppers to store brand products."

Vance agrees that the message on the package is important.

"On-pack messaging needs to effectively communicate features and benefits, as well as take into account more graphical explanations for applications/instructions to address language barriers," he says.

Consider the environment

As Muratoglu explains, companies also are looking for ways to attract the interest of environmentally conscious consumers.

"Many succeed by embracing sustainable packaging solutions," he says. "As consumers expand their knowledge on issues pertaining to sustainability, there is a growing sense of responsibility when it comes to their purchases. In addition, consumers increasingly believe that businesses should take responsibility in environmental issues and reduce their impact on the environment."

He notes that recent data from Tetra Pak's "Environmental Research 2011" survey show that 88 percent of consumers in 10 countries expressed a preference or a strong preference for products in recyclable packaging. And 70 percent of the survey's U.S. respondents said they are willing to buy "green" products if the quality is the same as "non-green" alternatives.