Time For A Redesign?

At some point, almost every packaged product — including store brand items — will need a label refresh or redesign to mesh with current trends and keep shoppers engaged. But efforts here require a serious investment, so it's important that stakeholders understand how to tell when such an investment is needed — and how to go forward to ensure the maximum return on investment (ROI).

Private Label ⇨ Store Brands turned to the packaging design community for some expert advice here. Sharing their thoughts this month on label redesign ROI are Deborah Ginsburg, president and owner of Strategia Design, Oakton, Va.; Lawrence Haggerty, cofounder of and creative partner with united*, with U.S. offices in New York and San Francisco; and Andy Johnson, cofounder of and creative partner with united*.

Private Label ⇨ Store Brands: How could a retailer best determine that an investment in a label redesign or refresh is necessary for a store brand product line — and what are some steps they could take to verify that it's the label, not the actual product, that needs to change?

Lawrence Haggerty: There is a short answer to this: If you're a retailer in the U.S. and you have a private label brand, there is a very high chance it needs to be redesigned. Generally speaking, the standard of private label design in America is very poor. It is as simple as that.

The longer version of the answer: Are sales performing as well as they should be; does the product and package design work effectively to communicate the product, its benefits, its differentiated point of view? How does it compare to everything else on shelf? Everything we do and touch in some way is influenced by design — the clothes we purchase, the car we drive, the detergent we buy. All of these change over time, year by year, and they need to be kept current and evolve.

What have you done as a retailer to keep up with this change? When was the last time the packaging was redesigned? Have you considered new products that are different from what you are currently offering? What is the competition doing, and how do your products, your label designs compare? How do you stand apart from other retailers — why should I shop with you rather than the other guys?

Deborah Ginsburg: A few things would help determine that an investment in label redesign is necessary: 1) If the line has not been refreshed in over 36 months. Label and product that are out that long are most likely dated in claims and callouts and may not be reaching the right consumer. 2) If consumers are confused about the brand message or the tiering structure. 3) If the company mission is not aligned with the look, feel and messaging of the packaging. 4) If printing and presentation of the brand on the substrates is subpar and not reflective of the product quality. 5) If sales have decreased or are flat.

If the category is growing and the product is current but not selling, it may be the packaging [that's the problem]. If the products have been reformulated and tested but no major change was made to communicate this, a packaging change is necessary. If there are a lot of one-time purchases, but no repeat purchases, it is most likely the product quality [that's the problem].

If people buy the product but it falls on a cycle that corresponds to the end of pay cycles, it could be that they are choosing it as a substitution to the brand when money is tight. This is seen a lot in the Hispanic communities, which tend to be very brand loyal and buy private label during the middle or at the end of the month.

PLSB: Before going forward with a label redesign or refresh, what steps should a retailer take to ensure the investment will fly with its particular shoppers?

Ginsburg: It is important to understand what the strategy and marketing goals are for the brand. Private label should be about reinforcing the overall banner of the store and creating a destination shop that is based on a strong value/price relationship. The product must taste good or perform well, and the packaging must be modern and communicate the important and relevant benefits.

Retailers need a strong plan that monitors the SKU assortment, launch plans (which would include time to develop and transition new packaging), and design plans for the entire line to reduce approvals and decision timelines. Hire the right partners either internally or as an outsource partner. Get top-down commitment from key leadership.

Andy Johnson: The consumer is fickle. They don't know what they want until they are given it. As a retailer, you should know implicitly what your consumer wants. You know what is selling and what is not selling. You should be aware of what is selling in other [retailers' stores] both inside the category and outside. You should be aware of what is trending, what products are the must haves.

If you partner with the right design company, you will get the right redesign or refresh. The problem today with American retailers is that they cut corners and are not prepared to invest in the right design relationship. The right design will pay for itself time and time over.

PLSB: What types of sales lifts are possible, based on your experience, with a well-thought-out product label redesign or refresh?

Ginsburg: In my experience, one can expect a 3-5 percent lift in sales for a six-month period with a label change if all other aspects of the marketing mix have not changed (price, position, product and promotion). I have found that it is difficult to measure the exact return on packaging, as many launches of new designs are or at least should be accompanied by increased activity in promotional spending and advertising.

Haggerty: If done right, the payoff can be huge. For example, with Greenway yogurts, which united* designed for A&P, we saw within the first couple of months that sales more than surpassed [those] of the leading national brand, and the Greenway yogurts became the brand of choice with A&P shoppers. A&P experienced the same reaction with Via Roma, their line of private label Italian products.

There is no doubt that this is in reaction to the quality of the design and not treating private label as such [but] treating it as a brand with a point of view and reason for being. The potential is massive if you select the right design agency to partner with and if you have the courage to do something unique and unexpected. And do the job correctly. Too many retailers cut corners and do not invest in the quality of the actual product, the package design or the pack structure.

You just have to look to the UK with retailers like Waitrose, Sainsbury's and M&S (Marks & Spencer). They are doing so much more: signature items, interesting products and ready meals that are not cheaply produced. You can see there is real care and attention in everything they do, and the sales figures support this.

PLSB: Can you think of an example of a retailer that really excelled in relation to a store brand product label redesign or refresh project, in terms of ROI? If so, in your view, what factors made the redesign or refresh so successful?

Ginsburg: I worked on the launch of Creamy Creations for H-E-B. This was one of the most collaborative and well-managed launches I have ever been a part of. The product was refined and designed to meet the exact profiles of the Texas consumer. It took the HEB product evaluation team and ice cream plant two years to perfect the product. I led the naming and design effort. We conducted a joint naming facilitation to create the brand, and worked with internal and external design resources to create the packaging.

From a strategic standpoint, though we were only launching 11 flavors of full-fat ice cream, we created a design architecture that would accommodate up to 33 flavors of full-fat; an array of flavors for a light, fat-free and sherbet line; as well as novelties. We included the advertising department in the mix once the brand and package were created. We shared all design assets so that they could prepare signage and in-store marketing materials. On the day of the launch, the reset teams came in and did a hard reset in all stores; banners were raised in the parking lots, and full-sized demos were scheduled to run. In three months, we took 33 percent market share from Blue Bell ice cream.

Johnson: [For] the most part, retail design in the U.S. needs a damn good redesign. I struggle to think of one U.S retailer in food that makes me think, "Wow, that's great." So many American food retailers fail to live up to the standard and quality that is happening in other parts of the world.