Packaging Design is One Reason for Sales Increases

When someone goes shopping, there are several decisions that need to be made:

The store; where am I going to go shopping.

Your needs; what do I need or want to buy.

Product differentiators; what criteria will be used to choose the product (brand, price, etc). For an instance, in John’s case, the store decision was predetermined, his prescription was at Walgreens. He had brand loyalty to Vick’s NyQuil Cold Medicine; he did not even look at alternatives. But little was predetermined on his candy purchase. He had a preference for licorice, but did not have any brand preference. His decision to buy candy was based on what he saw on the shelves. He ultimately made his decision based on being attracted to a type of product packaging design.

Savvy private brand sellers understand that packaging design plays a critical role in success at the retail level. They know how to exploit their advantages over nationally recognized brands. Brand loyalty is not always a factor in purchasing.

In fact, according to a study by Retail Minded, 100 female consumers between the ages of 19 and 30 voted 71% in favor of store loyalty versus brand. Understanding this trend in retail store loyalty provides an opportunity for the private labeler to adjust their marketing strategy.

Over the last two decades private label products have made tremendous inroads into Wal-Mart. Competition for retail shelving space at Wal-Mart is tremendous and the decision for shelf location at Wal-Mart is based mainly on sales. If your product sells, Wal-Mart will provide desirable shelf space, if it doesn’t, you are given less desirable locations. The impact could be devastating to your product success. With the recent economic downturn, private label products have gained market share at the retail level. Consumers are more willing to deviate from their favorite brands for cost reasons. The perception among consumers is that brand products are more expensive than private label. With retailers anxious to boost their lagging sales, the likelihood that private brand labels get better shelf space is improving.

Packaging design can provide unique opportunities for manufacturers to boost sales at the retail level. Package design should be integrated into a supplier’s product marketing strategy. Innovative product packaging and labeling can create higher customer demand and improved profitability. Manufacturers who understand the dynamics at the retail level and stay on top of the trends will be able to maximize their retail sales.