February 8, 2012
PL Buyer: The Next Step for PL Packaging
Through a special arrangement, what follows is an excerpt from a current article from Private Label Buyer, presented here for discussion.
A few private label experts were asked by Private Label Buyer in a recent roundtable what were the major packaging trends to watch for in 2012. The answers included: sustainability, functionality (easy to open) and communications.
“It has to function and do what it promises, whether it’s reclose or easy open. It’s got to reclose correctly,” said Michael Quint, VP and chief customer officer, West Liberty Foods. “If I take it and I turn it upside down and shake it or anything else, [it needs to remain closed] because it’s going to be treated that way in the refrigerator at home. And then it needs to be able, from a graphic designer’s standpoint, to communicate what it does; if there is something that is unusual about it, if it’s a new opening or closing type of product or anything, it needs to convey with clear instructions how you do it.”
“For us, it depends on its tier,” said Lindsey Hurr, VP, Immotion Studios. “Our design team has [guidelines] as to if it’s a value tier, the descriptions are large. If it’s a premium, descriptions are smaller. It just depends on what you are trying to communicate.”
Jerry Kelly, national retail account manager, Sealed Air Cryovac, added, “Keeping it simple [in terms of packaging instructions], showing pictures, communicating. Simple communication is really the key to success.”
Still, the observers largely agreed that consumers, especially in the uncertain economy, aren’t yet willing to pay more for more sustainable packaging.
Mr. Quint said, “If everything is equal [and the] sustainability piece of it is clearly communicated, they’ll move in that direction. But if it’s 50 cents more to have a sustainable package, I don’t think [consumers] are there yet, in most cases.”
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Discussion Questions
Discussion Questions: Do you think store brand packaging is lagging behind national brands? What packaging changes do you think retailers should be pushing for in 2012 and beyond?
Poll
The major point of difference for retail brands, as we all know, is price. And much of the time you’re getting a similar product to the big brand. So why do consumers frown upon private labels and retailer brands?
It actually has a lot to do with the packaging, which tends to be somewhat monotonous and stale. The packaging should be graphically entertaining, highlighting PODs beyond just price, like taste, nutrition, environmental awareness, etc. And perhaps go further and really set these private labels apart by introducing emerging technologies like QR codes for a savvy edge.
I particularly like Jerry Kelly’s point about simplicity: think Apple, with a clean, clear identity where the message doesn’t get lost in a creative overhaul.
Brand managers spend a great deal of time composing a solid product. But if the packaging doesn’t grab eyes, the sale could be lost.
I think packaging is lagging behind consumer shopping behavior overall. That’s true for Private Label and national brands.
My shopper insights research brings me face to face with consumers. They tell me what cues and signals motivate them. Eye tracking that I use shows me what packaging components drive purchase decisions.
When a shopper is spending less than 10 seconds (and that’s generous) picking up brands and products they put in the shopping cart, they’re not contemplating sustainability. They’re reaching for the on-sight promise of a good experience, whether it’s about taste, convenience or low sodium. It always comes down to understanding consumer wants and needs and communicating the desired message quickly and accurately. Sometimes it’s through pictures; sometimes through words with reinforcement through colors and fonts, etc. Using package components which trigger purchase and displaying them where shoppers see them can be the core of effective packages.
To the point of package functionality, consumers’ assessment about meeting expectations will affect future purchases for that brand and product, along with brand equity overall. In other words, whether marketing Private Label or national brands the whole package and all its roles: impact, communication, functionality, convenience, etc are relevant and significant.
Consumers are still in a cautious and concerned mood. Based on the January BIGinsight Consumer Intentions & Action (CIA) Survey, 1 out of 3 adults are buying more “store/generic brands,” as a result of fluctuating gas prices. Of the 9,000+ adults surveyed, those who said that they had become more “environmentally responsible in their daily life,” 49.1% of them said they were buying more “store/generic brands”, as a result of fluctuating gas prices.
Michael Quint is right. The consumer is not going to spend more on sustainable packaging, while they are seeking ways to save money.
Private label is going to continue to grow, and sharp retailers will make packaging an important part of the buying decision that is impacted by in-store marketing– one of the top points of influence for purchase.
Whether leading or lagging, store brand packaging is trending upward as are PL sales. While price is a key component for selection over national brands so too is improved packaging and high satisfaction in usuage.
PL packaging is almost comparable to national brand packaging and the ingredients inside have improved through the years to being comparable or even better.
In the future, retailers should continue to think like marketers but also focus their decision-making on their close-at-hand observations at store level.
I was disappointed to find that “less” wasn’t on the list of PL packaging objectives. “Less” means less layers of packaging. Less excess cardboard and unnecessary plastic. I thought that was a major packaging goal these days.
I was also disappointed not to be given a definition of “sustainable” packaging. What does that mean? Does it mean that the materials in the packaging are both recycled and recyclable? Or just one of the two? Or something else entirely?
Continuing on my course of being easily confused, why do “value tier” products get large descriptions while “premium tier” products get smaller descriptions? Why is that a guideline and what, exactly, is the definition of a “description?”
And finally, thanks for the tip about the importance of packaging remaining closed “If I take it and I turn it upside down and shake it or anything else.” That’s good to know.
Unique innovative packaging could be a real differentiator for PL Brands. This obviously goes against the old model of stripping as much cost as possible out of a PL product. With today’s “Premium PL” brands, like Kirkland and Trader Joe’s, there is an opportunity to further differentiate the brand from national competitors by creating unique and functional packaging. Some PL items are now more expensive than their national competitors because consumers trust the Pl brand and the retailer. Will they pay 10%-20% more for a unique, sustainable and functional package? As long as it is a “Premium PL” that does not focus on price being the key selling point, I think they will.
Store brand packaging will, in most cases, lag behind national brands because the focus is on running stores, not product development. If retailers were really concerned with packaging, they would clean up their act and move to recyclable grocery bags at checkout. They won’t because it costs more, showing all that they don’t care so much about the environment. Now this is fine with me, as I think we should be responsible for our own actions, and don’t have to use the plastic bags. But the fact is that this shows the retail grocery trade’s attitude toward packaging in general, which is to only do the minimum. Where retailers attempt to compete with national brands, they generally only try to duplicate the national brands. However, they are never first; they only follow. The national brands are focused on their products and on delivering value to the consumer.
In many cases, the retailer doesn’t even develop its own private label products, but farms this out to one of several custom kitchens, canners, and suppliers, often on the lowest cost bid basis. Often they don’t really attempt to duplicate national brand quality as much as they try to look like a national brand. It’s a matter of focus and few retailers have the intelligence and capacity to go toe to toe with national and international producers, suppliers, manufacturers, etc.
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The major point of difference for retail brands, as we all know, is price. And much of the time you’re getting a similar product to the big brand. So why do consumers frown upon private labels and retailer brands?
It actually has a lot to do with the packaging, which tends to be somewhat monotonous and stale. The packaging should be graphically entertaining, highlighting PODs beyond just price, like taste, nutrition, environmental awareness, etc. And perhaps go further and really set these private labels apart by introducing emerging technologies like QR codes for a savvy edge.
I particularly like Jerry Kelly’s point about simplicity: think Apple, with a clean, clear identity where the message doesn’t get lost in a creative overhaul.
Brand managers spend a great deal of time composing a solid product. But if the packaging doesn’t grab eyes, the sale could be lost.
I think packaging is lagging behind consumer shopping behavior overall. That’s true for Private Label and national brands.
My shopper insights research brings me face to face with consumers. They tell me what cues and signals motivate them. Eye tracking that I use shows me what packaging components drive purchase decisions.
When a shopper is spending less than 10 seconds (and that’s generous) picking up brands and products they put in the shopping cart, they’re not contemplating sustainability. They’re reaching for the on-sight promise of a good experience, whether it’s about taste, convenience or low sodium. It always comes down to understanding consumer wants and needs and communicating the desired message quickly and accurately. Sometimes it’s through pictures; sometimes through words with reinforcement through colors and fonts, etc. Using package components which trigger purchase and displaying them where shoppers see them can be the core of effective packages.
To the point of package functionality, consumers’ assessment about meeting expectations will affect future purchases for that brand and product, along with brand equity overall. In other words, whether marketing Private Label or national brands the whole package and all its roles: impact, communication, functionality, convenience, etc are relevant and significant.
Consumers are still in a cautious and concerned mood. Based on the January BIGinsight Consumer Intentions & Action (CIA) Survey, 1 out of 3 adults are buying more “store/generic brands,” as a result of fluctuating gas prices. Of the 9,000+ adults surveyed, those who said that they had become more “environmentally responsible in their daily life,” 49.1% of them said they were buying more “store/generic brands”, as a result of fluctuating gas prices.
Michael Quint is right. The consumer is not going to spend more on sustainable packaging, while they are seeking ways to save money.
Private label is going to continue to grow, and sharp retailers will make packaging an important part of the buying decision that is impacted by in-store marketing– one of the top points of influence for purchase.
Whether leading or lagging, store brand packaging is trending upward as are PL sales. While price is a key component for selection over national brands so too is improved packaging and high satisfaction in usuage.
PL packaging is almost comparable to national brand packaging and the ingredients inside have improved through the years to being comparable or even better.
In the future, retailers should continue to think like marketers but also focus their decision-making on their close-at-hand observations at store level.
I was disappointed to find that “less” wasn’t on the list of PL packaging objectives. “Less” means less layers of packaging. Less excess cardboard and unnecessary plastic. I thought that was a major packaging goal these days.
I was also disappointed not to be given a definition of “sustainable” packaging. What does that mean? Does it mean that the materials in the packaging are both recycled and recyclable? Or just one of the two? Or something else entirely?
Continuing on my course of being easily confused, why do “value tier” products get large descriptions while “premium tier” products get smaller descriptions? Why is that a guideline and what, exactly, is the definition of a “description?”
And finally, thanks for the tip about the importance of packaging remaining closed “If I take it and I turn it upside down and shake it or anything else.” That’s good to know.
Unique innovative packaging could be a real differentiator for PL Brands. This obviously goes against the old model of stripping as much cost as possible out of a PL product. With today’s “Premium PL” brands, like Kirkland and Trader Joe’s, there is an opportunity to further differentiate the brand from national competitors by creating unique and functional packaging. Some PL items are now more expensive than their national competitors because consumers trust the Pl brand and the retailer. Will they pay 10%-20% more for a unique, sustainable and functional package? As long as it is a “Premium PL” that does not focus on price being the key selling point, I think they will.
Store brand packaging will, in most cases, lag behind national brands because the focus is on running stores, not product development. If retailers were really concerned with packaging, they would clean up their act and move to recyclable grocery bags at checkout. They won’t because it costs more, showing all that they don’t care so much about the environment. Now this is fine with me, as I think we should be responsible for our own actions, and don’t have to use the plastic bags. But the fact is that this shows the retail grocery trade’s attitude toward packaging in general, which is to only do the minimum. Where retailers attempt to compete with national brands, they generally only try to duplicate the national brands. However, they are never first; they only follow. The national brands are focused on their products and on delivering value to the consumer.
In many cases, the retailer doesn’t even develop its own private label products, but farms this out to one of several custom kitchens, canners, and suppliers, often on the lowest cost bid basis. Often they don’t really attempt to duplicate national brand quality as much as they try to look like a national brand. It’s a matter of focus and few retailers have the intelligence and capacity to go toe to toe with national and international producers, suppliers, manufacturers, etc.