 The news says everyone is worried about the economy and consumers are spending less. Is this causing your product sales to decline? Typically, consumers cut back spending during hard economic times. So how can you counteract product doldrums when the economy is in a recession or a slowdown?
The first thing to understand is that consumer still "buy" things. For example, 70% of all packaging is food related and people still have to eat. They just buy in different ways. They may cut out fast food or restaurant purchases in favor of home prepared meals. But they still want to purchase the same conditions. In the case of fast food, this means easy to prepare, reheat, or ready to eat. Wal-Mart's fresh, take-home pizza is a good example of fulfilling a need. In my case, in place of a restaurant trip I opt for its rotisserie chicken that is ready to go with dozens of applications for meal prep. But I still want convenience and limited meal prep too.
To understand how to recession proof your packaging you need to learn to recognize what buying signals will motivate your customer to purchase your products. They still want to spend money; they just want to do it cost effectively and to reap some value for their purchases. Or they just may want to treat themselves to something special as a way of feeling better.
Here are a few ways you can influence the consumer purchasing decision though product packaging.
Even though overall purchasing might be down people are still willing to experiment. As a good example they might cancel a planned vacation. Can your products be used to simulate a “vacation” at home? Products could be oriented toward having a lifestyle experience without ever leaving home. You could package that experience as an alternative to a vacation. Words like “have a luxurious spa experience in your own home” or “vacation at home with our X.” It's all in how you connect the experience with the desired outcome on your product packaging.
Despite the economy luxury product sales are increasing too. People are willing to spend money to treat themselves or to make a personal statement. What do you package that can be considered luxurious and a special treat for someone? Is your product packaging glitzy and unique? A good example is the number of companies incorporating Swavorksi crystals into their product packaging or using ultra sophisticated, elegant glass bottles instead of plastic. Other examples include people purchasing something unique, different, and expensive to make their own branding statement. In this case price is not an object, it's the “feeling good” outcome that counts.
On the other side of the coin is the switch from branded products to private label usually with considerable cost savings. Almost every retailer now has its own private label line of products. Can you private label your product for an untapped market opportunity? Literally anything can be private labeled. It's one of the fastest growing market sectors. As consumers look for ways of saving money they are willing to experiment with new brands. Private label packaging is now as sophisticated as branded goods. The interesting fact is that once they switch and are satisfied they generally never go back to the branded counterpart. So what can you private label with your packaging?
Another way to capture the consumer is to provide more value. Numerous articles have recently been written about the “shrinking package” on products still selling at the same price. As I have often said, smart marketers should figure out how to offer more value, not less. So in McDonald's lingo “supersize me.” Give me more for my money, not less. Call this out on your packaging with text that reads “10% more for the same price“, “value pack” or even “our packaging is NOT smaller.” Your customer will be watching what you do and might be buying from someone else who is offering more value.
I'd like to got back to rotisserie chicken again. This week I bought a chicken at Publix. I was shocked how much smaller it was than a usually much larger chicken selling at the same price (just like the packaging shrunk). I was an unhappy customer for two reasons. First, I like the chicken from Kroger much better (the store is equally close). Second, Kroger's chicken comes in a resealable ziplock bag that makes it incredibly easy to store while Publix' chicken comes in a paper bag which tears easily and isn't airtight making me take an extra step to repackage leftovers. Even better, Kroger frequently runs the member special with rotisserie chicken at a lower price. That's what I mean about connecting with your core customer: Kroger is offering more value and convenience than Publix for the same packaged product.
Lastly, think about repurposing your packaging. This is somewhat similar to “value” in packaging but in this case people will retain your packaging, refill it or use it for something else. Think about how you can give double the reasons for purchasing something by letting your consumer know. You get twice the bang for your buck as you can capture the environmental movement too. Use words like “our product is reusable, refillable or collectible”, or even “don't throw it away.”
To recession proof your product packaging its all about listing to the consumer. They WILL buy, if you package the right message at the right price with the right value, recession or not.
JoAnn Hines, the Packaging Diva, has more than 30 years of expertise in the packaging industry. She is an accomplished author, speaker, publisher, marketer, and e-commerce expert and has received numerous leadership awards and honors, including being named "One of the 50 most influential packaging leaders in the 20th century." She is also the founder of Women in Packaging, Packaging Horizons Magazine, Packaging Career Hotline, Packaging Coach, Packaging Diva and Packaging University. For more information visit www.packagingdiva.com.
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