Product Package Design:
Determining the business value of new ideas

Using advanced research methods to do so.

Packaging Innovation

Packaging innovation, when properly implemented, produces genuine business results in terms of increased sales, enhanced brand awareness, and increased brand loyalty.

On many occasions, however, marketers miss out on what packaging innovation has to offer because of several differences in approach:

• their packaging engineers focus on benefits that are reasonable and rational (as in “easier to close for storage”)

• their managers of brands focus on actual return on investment and sales figures

These two groups have a communication problem in that the benefit of structural innovation cannot be proved worthwhile if there is no hard evidence that the investment and extra cost is justified.

Advanced consumer research can help with this problem by discovering the actual business value of the innovations in question. There are some issues with the traditional way companies go about discovering this data, though.

Qualitative and Quantitive Research

Qualitative research is defined as in-depth focus groups with small numbers of participants. Quantitive research concerns itself with surveys involving hundreds of people.

Often companies will stifle new ideas before they have a chance to blossom and prove their worth. An example of this is when there is an attempt to provide numerical evidence that a chosen path of innovation is undesirable. It usually involves a quantitive survey that shows 200 people concepts or sketches of the new idea or innovation.

Research innovation shows, however, that more can be learned from a small (15-25) group of people handling and reacting to actual physical prototypes than from paper surveys. The disadvantage to using a smaller group is that it does not provide numerical data. It is also far removed from the actual purchasing environment. While this qualitative research using a small group can provide direction and useful feedback, ultimately quantitative information will be needed to discover the investment value and ROI marketers need to know.

There are several areas that should be covered in any Quantitive research:

1. Contrast and Visibility on the Shelf

Purchase is directly related to visibility: if the consumer does not see the product on the shelf (because of product placement, lack of contrast with competition, and other factors) then it will not be considered, regardless of all the branding and advertising that has been done! According to Perception Research, approximately 30% of all brands displayed on retail shelves are completely ignored.

2. Perception of Products Before Using

Structural innovation can influence buyers even when there is no functional advantage. This happens when a new package design stands out distinctly from the competition because of its shape. Coca-Cola is a classic example of a structural differentiator that is not functional, yet provides a distinct personality and brand identifier.

3. After Using: Useful function

Even though it can increase brand loyalty and increase customer satisfaction, a functional innovation will only benefit those who use the product, and it is important to communicate that benefit clearly prior to the sale.

A comprehensive study of all these areas of increased value should measure visibility on the shelf and a test group’s perception of the structural innovations before using the product.

Out-of-date research technique: direct questioning

Often marketing researchers will ask direct questions to focus groups concerning whether they would pay more for a proposed innovation or added value. Asking direct questions about price is not effective, and produces the most misleading information.

Advanced research technique: monadic testing

Monadic testing involves one group, or cell, encountering the current design in the midst of all the primary competitors. The participants are asked to make a purchase decision. Another cell would see the improved design or structural innovation in the same competitive setting, and be asked all of the same questions as the first cell.

This method serves the purpose of measuring the business value of the proposed package design, by indicating consumers actual purchase decisions in a contextual environment. Using two separate groups keeps the researchers from getting opinions and “art director” feedback on what shoppers “like” and “don’t like”. It also provides numerical data on what their actual shopping preferences are in a comparative environment.

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©Copyright 2010 Big City Graphics, Inc.

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Product Package Design:
Determining the business value of new ideas

Using advanced research methods to do so.

Packaging Innovation

Packaging innovation, when properly implemented, produces genuine business results in terms of increased sales, enhanced brand awareness, and increased brand loyalty.

On many occasions, however, marketers miss out on what packaging innovation has to offer because of several differences in approach:

• their packaging engineers focus on benefits that are reasonable and rational (as in “easier to close for storage”)

• their managers of brands focus on actual return on investment and sales figures

These two groups have a communication problem in that the benefit of structural innovation cannot be proved worthwhile if there is no hard evidence that the investment and extra cost is justified.

Advanced consumer research can help with this problem by discovering the actual business value of the innovations in question. There are some issues with the traditional way companies go about discovering this data, though.

Qualitative and Quantitive Research

Qualitative research is defined as in-depth focus groups with small numbers of participants. Quantitive research concerns itself with surveys involving hundreds of people.

Often companies will stifle new ideas before they have a chance to blossom and prove their worth. An example of this is when there is an attempt to provide numerical evidence that a chosen path of innovation is undesirable. It usually involves a quantitive survey that shows 200 people concepts or sketches of the new idea or innovation.

Research innovation shows, however, that more can be learned from a small (15-25) group of people handling and reacting to actual physical prototypes than from paper surveys. The disadvantage to using a smaller group is that it does not provide numerical data. It is also far removed from the actual purchasing environment. While this qualitative research using a small group can provide direction and useful feedback, ultimately quantitative information will be needed to discover the investment value and ROI marketers need to know.

There are several areas that should be covered in any Quantitive research:

1. Contrast and Visibility on the Shelf

Purchase is directly related to visibility: if the consumer does not see the product on the shelf (because of product placement, lack of contrast with competition, and other factors) then it will not be considered, regardless of all the branding and advertising that has been done! According to Perception Research, approximately 30% of all brands displayed on retail shelves are completely ignored.

2. Perception of Products Before Using

Structural innovation can influence buyers even when there is no functional advantage. This happens when a new package design stands out distinctly from the competition because of its shape. Coca-Cola is a classic example of a structural differentiator that is not functional, yet provides a distinct personality and brand identifier.

3. After Using: Useful function

Even though it can increase brand loyalty and increase customer satisfaction, a functional innovation will only benefit those who use the product, and it is important to communicate that benefit clearly prior to the sale.

A comprehensive study of all these areas of increased value should measure visibility on the shelf and a test group’s perception of the structural innovations before using the product.

Out-of-date research technique: direct questioning

Often marketing researchers will ask direct questions to focus groups concerning whether they would pay more for a proposed innovation or added value. Asking direct questions about price is not effective, and produces the most misleading information.

Advanced research technique: monadic testing

Monadic testing involves one group, or cell, encountering the current design in the midst of all the primary competitors. The participants are asked to make a purchase decision. Another cell would see the improved design or structural innovation in the same competitive setting, and be asked all of the same questions as the first cell.

This method serves the purpose of measuring the business value of the proposed package design, by indicating consumers actual purchase decisions in a contextual environment. Using two separate groups keeps the researchers from getting opinions and “art director” feedback on what shoppers “like” and “don’t like”. It also provides numerical data on what their actual shopping preferences are in a comparative environment.

home | informative articles | news releases | case study | contact | privacy policy | terms and conditions | disclaimer

©Copyright 2006 Big City Graphics, Inc. a Product Packaging Design Agency