| Consider the following true story: On his way | | | | success. |
| back from an appointment, John needed to stop | | | | With the recent economic downturn, private label |
| at Walgreens to pick up a prescription, some cold | | | | products have gained market share at the retail |
| medicine and a couple bags of candy for office | | | | level. Consumers are more willing to deviate from |
| treats. After getting his prescription he | | | | their favorite brands for cost reasons. The |
| immediately went to the cold remedy section and | | | | perception among consumers is that brand |
| searched for NyQuil, a product he has long used | | | | products are more expensive than private label. |
| and trusted. He then proceeded to the candy aisle | | | | With retailers anxious to boost their lagging sales, |
| where he spent several minutes perusing dozens | | | | the likelihood that private brand labels get better |
| of bags of different candy. He was looking for | | | | shelf space is improving. Taking advantage of this |
| liquorice and found several choices. Most were | | | | trend may require manufacturers to revamp their |
| packaged in a clear plastic bag with a paper | | | | packaging. |
| header adhered to the top. | | | | What are the key considerations for product |
| Then he saw something different; a bag of candy | | | | packaging at the retail level? |
| that wasn't in clear plastic, but in a decorative solid | | | | - Understand the demographics. Companies with |
| color bag. The design was attractive and it clearly | | | | well known national brand images are going to |
| stood out from the other packages. He bought | | | | stay consistent across the region and from one |
| three bags. His decision was based strictly on the | | | | store to the next. The private labels do not need |
| product packaging; he did not recognize or even | | | | to stay the same; in fact the opportunity is to |
| remember the brand name. John's experience | | | | tailor your packaging to "fit" the demographics of |
| demonstrates the importance of packaging for | | | | the retail outlet, or geographic region of the |
| retail sales. | | | | country you sell. You can create a "price leader" |
| Let's examine John's decisions. When someone | | | | image for your Wal-Mart outlet while creating a |
| goes shopping, there are several decisions that | | | | more "specialized" image for the higher end |
| need to be made: 1. The store; where am I going | | | | stores. |
| to go shopping. 2. Your needs; what do I need or | | | | - Understand your Competition. In a retail store, |
| want to buy. 3. Product differentiators; what | | | | your competition is what is in eye view of the |
| criteria will be used to choose the product (brand, | | | | shopper. Your product needs to stand out from |
| price, etc). In John's case, the store decision was | | | | your competition. |
| predetermined, his prescription was at Walgreens. | | | | - Eye Catching. The ideal packaging will create a |
| He had brand loyalty to Vick's NyQuil Cold | | | | "double look" by the shopper. |
| Medicine; he did not even look at alternatives. But | | | | - Clearly Highlight the Benefits. You only have a |
| little was predetermined on his candy purchase. He | | | | mater of seconds to attract and hold a |
| had a preference for licorice, but did not have any | | | | customers attention; your unique selling points |
| brand preference. His decision to buy candy was | | | | must clearly come through in order for a buyer |
| based on what he saw on the shelves. He | | | | to choose your product. Emotional impact is |
| ultimately made his decision based on being | | | | critical. |
| attracted to a type of product packaging. | | | | - Package Functionality: Once your product is |
| Savvy private brand sellers understand that | | | | purchased, the user experience with the |
| packaging plays a critical role in success at the | | | | packaging can make or break the repeat sale. |
| retail level. They know how to exploit their | | | | Packages that enhance the usability and storage |
| advantages over nationally recognized brands. | | | | of the product will give them reason to return. On |
| Brand loyalty is not always a factor in purchasing. | | | | the other hand, packages that are difficult to |
| In fact, according to a study by Retail Minded, 100 | | | | open, hard to store, or allow damage to the |
| female consumers between the ages of 19 and | | | | contents will insure you won't have a repeat sale. |
| 30 voted 71% in favor of store loyalty versus | | | | - Understand the Trends: The environment, |
| brand. Understanding this trend in retail store | | | | economy, local and global politics can all sway |
| loyalty provides an opportunity for the private | | | | consumer decisions. Paying careful attention to |
| labeler to adjust their marketing strategy. | | | | these trends along with your sales results can |
| Wal-Mart is a prime example of a store with | | | | exploit opportunities or avoid catastrophes. |
| strong consumer loyalty. Over the last two | | | | Packaging can provide unique opportunities for |
| decades private label products have made | | | | manufacturers to boost sales at the retail level. |
| tremendous inroads into Wal-Mart. Competition for | | | | Package design should be integrated into a |
| retail shelving space at Wal-Mart is tremendous | | | | supplier's product marketing strategy. Innovative |
| and the decision for shelf location at Wal-Mart is | | | | product packaging and labeling can create higher |
| based mainly on sales. If your product sells, | | | | customer demand and improved profitability. |
| Wal-Mart will provide desirable shelf space, if it | | | | Manufacturers who understand the dynamics at |
| doesn't, you are given less desirable locations. The | | | | the retail level and stay on top of the trends will |
| impact could be devastating to your product | | | | be able to maximize their retail sales. |