Think Outside The Product

With so much talk today about store brand product innovation, another important potential differentiator often is forgotten. But that "other differentiator" - packaging - can go a long way to tempt shoppers to a purchase.

But being different for the sake of being different won't work. Retailers instead need to have clear-cut, defensible reasons for deviating from the norm here.

"Retailers should know what consumers want to see on grocery store shelves," says Erin Reynolds, marketing director for Evergreen Packaging, Canton, N.C.

More than good looks

And what today's consumers want to see is packaging that not only is innovative and functional, but also offers value, says Rebecca Holland, marketing director for Cleveland-based Kaufman Container Co.

"If a product is easier to use, store and reuse, then that becomes a real value," she says. "You can have the most attractive package in the world, but if it doesn't do its job or is too complicated, you lose the consumer's interest."

Tuna packaged in a film pouch (which StarKist debuted in 1999) instead of the traditional can provides a great illustration of how innovation, functionality and value can come together.

"This was a great advertisement for flexible packaging and continues to be a huge success," says Lisa Singleton, director of sales for Plastic Packaging Inc., Hickory, N.C. "Consumers pay extra for the convenience and for a package that doesn't take up as much room as a can."

Craig Sawicki, chief creative officer for St. Louis-based TricorBraun, says the consumer "food experience" has become much more important, and newer packaging formats reflect that reality.

"[The evolution started] way back with squeeze ketchup, moving to inverted squeezable mustard, mayonnaise, barbecue sauce and even the spray butter products," he notes. "All changed their packaging not only to fragment mature product categories, but to enhance the consumer's use of those products."

On the non-food side, Method accomplished the same objectives, notes Cynthia Borland, marketing and sustainability manager for Midland Packaging & Display, Franksville, Wis.

"Method has done a brilliant job redefining the laundry detergent market," she says. "They've also driven the concentration movement. Their packaging is sleek and engages the consumer."

Sawicki also points to the redesign his company performed on the RainX windshield treatment bottle as an example of non-food packaging differentiation that has value for consumers. The design went from a 32-ounce bottle that was prone to overspray (and consumer frustration) to a smaller container with a built-in felt applicator. The product includes a microfiber towel in an attached chamber.

Ease of opening is another attribute on which most consumers place a high value for both primary and secondary packaging, says Gary Boetsch, vice president of sales for Plastic Packaging Inc. Retailers risk losing a repeat sale if consumers have difficulty opening a product, even if the product itself exceeds their expectations.

Sustainability attributes also can speak to consumers' desire for value. Citing a 2011 report from the Harleysville, Pa.-based Natural Marketing Institute, Reynolds says 79 percent of consumers consider minimal packaging to be somewhat important or very important in food and beverage purchasing decisions, while 77 percent say the same thing about recyclable packaging. And 72 percent include renewable packaging materials among the somewhat important/very important attributes.

She notes that paperboard packaging can meet all three consumer-desired attributes, and that it also provides a cost-effective platform for branding.

"A brand can take full advantage of the brand-building power of four billboard panels of vibrant, full-color graphics," Reynolds says. "Cartons also provide an excellent packaging vehicle for premium products, including functional beverages. Data indicate that consumers are willing to pay a premium for such products if they clearly understand the benefits the product offers."

Bring it to life

Before going forward with any new packaging concept for a store brand product or product line, the retailer, packaging company and graphic designer would benefit from a joint discussion centered on final package design and product integrity, Singleton and Boetsch note. In fact, product integrity should be top of mind when retailers are exploring new packaging ideas because it could affect choices related to package style and film structure.

Retailers also need to consider how the product will be merchandised in the store (e.g., lying flat on the shelf vs. standing up), they stress, as well as whether the product is for one-time use or will be opened and closed several times (and needs to incorporate a reclosable element). Finally, retailers need to ask themselves whether they want the product to show through the package, as that decision impacts graphics and also influences shopper perception at the shelf.

Retailers would be wise to "start with the end in mind," too, stresses John Giesfeldt, senior manager, marketing for WS Packaging Group Inc., Neenah, Wis. He adds that the goal should be consistent brand positioning and presentation that delivers shelf impact and enables easy and effective purchase decisions on the part of the consumer.

"It's also important to consider the fact that there are many different product decoration and packaging options from which to choose," he says. "It's critical that consideration be given to making sure the product goodness shows through. For example, to visually display the product goodness of a product like chunky salsa, you want to consider the no-label look of clear pressure-sensitive film instead of obscuring the product with a paper label."

Midland's Borland cautions retailers to be wary of dramatic packaging deviations, however, as they could result in brand dilution.

"Differentiation can be achieved with the use of creative icons, accent colors or buzz words like 'new and improved,'" she maintains. "We have found the use of small market group surveys to be very effective in gaining consumer feedback on package changes," she adds.

Look to the experts

Today's packaging and design companies have the capabilities — and tools — to create primary and secondary packaging concepts no one even dreamed of a decade or two ago. Retailers would be wise to take a look at the myriad differentiating options available now for store brand products.

Reynolds notes that Evergreen Packaging works with customers to develop "products that are customized to meet their freshness needs and tell a compelling brand story." Moreover, the company builds eco-minded attributes, convenience and cost-effectiveness into the package.

"Evergreen recently introduced our new Fresh-Look cartons with windows," she adds. "Fresh-Look cartons offer all the environmental benefits of paper cartons while also allowing consumers to see the beverage inside and know when they are getting low, adding value for consumers."

For its part, Plastic Packaging Inc. makes listening to a retailer's wants and needs "priority one," Singleton says. The flexible packaging provider not only boasts state-of-the-art manufacturing equipment, but also is able to bring marketing support, design and graphics resources, and product integrity testing to retailers seeking packaging innovation.

"We work with many private label companies," Boetsch adds, "and understand the necessity for speed to market. More and more, we are seeing that retailers are expecting more from their suppliers that are 'downstream' and find that being involved from the start of new projects and 'over-communicating' with all parties increases the odds of success for everyone."

Borland says consumers tend to value "highly graphic packaging" incorporating an image of the product or offering some other type of product representation.

Midland has "a team of graphic artists that can coach retailers into creating packaging that is appealing and will drive sales," she says. "Use of 3-D renderings and mockups give the retailers a preview of what they can expect with an end product."

TricorBraun, too, provides 3D design services (award-winning), Sawicki says, as well as graphic design for labels and more. In addition, the supplier of rigid packaging solutions is able to perform consumer insight studies before conceptualization and again afterwards to verify results.

And in-house decorating services are a specialty of Kaufman Container, Holland says. The company offers hot stamping, screen printing and even a "combination effect" to give a package a high-end look.

"We also offer heat-shrink labeling, which allows so much graphic interest that you can literally transform a container into a piece of art," she says. "The colors you choose and the graphics you create all play a part in selling your package, whether it is stock or custom.

Holland adds that retailers also can choose from more and more glitter and metallic inks — and even could employ foil to make the package "pop" and give it a more upscale appearance.

"It's about putting together the perfect combination of elements while staying true to your brand," she says.

But sometimes packaging differentiation necessitates resolution of an existing challenge. One such challenge, WS Packaging's Giesfeldt says, goes hand and hand with the rising need for bilingual packaging — and fitting the necessary verbiage on smallish containers.

"Additionally, many products call for usage instructions, as well as [need to] comply with FDA requirements for ingredient labeling," he says. "In these instances, the geography available on the container is not large enough to accommodate the additional text. We have many different decoration types and formats to solve these challenges."

As a retailer implements these changes, the label manufacturer also is able to ensure a high level of accuracy, speed and quality, Giesfeldt adds.

Of course, even armed with the best of differentiating packaging concepts, materials and graphics, a retailer still might have to give shoppers a little push toward purchase.

"It's important to ensure there are incentives for trial," Giesfeldt stresses. "Integrating coupons and other point-of-sale aids is critical at the beginning of the lifecycle of new products."

The digital edge

Unique packaging formats, materials and label designs can go a long way to set a store brand product apart from its competition. But they are certainly not the only options for catching consumers' eye — digital printing technology also can give packaging the "wow factor" needed for differentiation.

"The use of digital printing can allow private label manufacturers to have an agile supply chain to keep graphics fresh and relevant," says Mike Ferrari, founder of Ferrari Innovation Solutions LLC and one of FASTechnology Group's key advisor business partners.

Although many brand owners fear printing customization, envisioning a proliferation of SKUs, Ferrari says the CUSTOMPrint+ digital printing technology offered by Glen Carbon, Ill.-based FASTechnology Group enables on-site and on-pack printing for customization without the headaches or cost.

"The key is to connect marketing programs together with digital technology to achieve new packaging business models that will grow brands," he says.

For example, in a 2012 campaign meant to appeal to Ohio State University basketball fans, private label manufacturer Shearer's Foods launched a sweepstakes promotion on-pack, targeting Ohio shoppers at the retail shelf. The company used CUSTOMPrint+ digital printing to overprint variable codes with a "scratch-off ink."

Joseph Hattrup, FASTechnology group president, adds that the on-pack printing, labeling and intelligent cartooning capabilities his company's technology brings into play are truly "an extension of sophisticated consumer targeting concepts from the commercial printing industry." Immediately deployable, the technology "empowers the manufacturer, the retailer and the shopper in a non-invasive manner, and that ultimately generates a more rewarding shopping experience, sales lift and net results for the complete supply chain."