Packaging Decoration

From national to store brands, packaging decoration wins at the moment of truth

What role does package decoration play when trying to make an impression in just seconds? Does your packaging grab attention and differentiate itself? Does it deliver an offer and incite trial? Does it keep loyal customers loyal in the face of constant competition?

Establishing, holding onto, and growing your SKU strength depends on developing packaging and decoration solutions that complete your overall store brand strategy. From product quality and goodness to supply chain management, branding to packaging and decoration, these elements combine to create a whole greater than the sum of the parts.

When you look at the total cost to package a product, decoration represents only a fraction of the cost. For example, the total applied cost per 1,000 of a 16 oz. PET container runs $100 to$150 for the container, $25-$35 for the closure, and $5 to $15 for the label.*

From national brands to private label, competing in today’s retail environment has never been tougher. Row upon row of faced product creates a visual wall that’s increasingly challenging for individual brands to break through.

According to retail industry sources, about 70 percent of purchase decisions are made at the shelf. Coupled with that is the fact your product has approximately only three seconds to grab attention and engage the consumer. If the shelf impact of your packaging misses being noticed, you miss a sales opportunity. When you win at the shelf, you increase your share gain.

Packaging development for store brands has become a more instrumental priority for today’s retailers to compete head-to-head with national brands. They realize they need to develop consistency and a true essence to the exclusive brands they offer. And they’ve done this to command increased visibility with shelf impact that confirms the goodness and quality of their products.

The result has been that many store brand products are able to command parity pricing with national brands without articulating cost as the primary differentiating factor. This is where effective packaging must be enticing enough for the product to stand out on the shelf. But it also has to pull the consumer in as a confirmation to product quality because the product also remains highly visible sitting on the shelf at home. To that end, successful products become synonymous with their packaging.

We all know about the critical nature the customer experience plays in generating shopping desire. Successful store brands understand the importance of the emotional aspect of the shopping experience. They understand that through effective merchandising they can develop an educational and exciting experience that serves as a basis for brand building, which transfers and links the positive association of a specific brand with the retailer. And that brings the store-brand experience full circle.

In the end, while packaging decoration represents only a fraction of the total packaging cost, it remains the last chance to communicate the brand to the consumer.

* Cost comparison courtesy of Avery Dennison Label and Packaging Materials

John Giesfeldt, Senior Manager-Marketing