How can great package design lead to more sales and increased ROI? This weekend we interviewed a number or Wineries and Breweries at the Fraser Valley Cork & Keg to find out firsthand the affect of design on their sales.
What exactly happens when we find ourselves in an aisle with countless of products staring back at us? We start to compare, remember and associate…
Brands are refreshing their packaging more frequently than ever before. According to a sales representative we spoke with from International Cellars, that represents Peter Lehmann Wines, there has been an remarkable push for creative package design in the past five years and she has seen firsthand how package design can significantly increase sales.
The increased frequency of brand and package re-designs brings the question of return on investment (ROI) into focus.
While ROI can be difficult to quantify as it relates to the design of the package, design’s specific impact on bottom line profit can, in fact, be extracted and quantified.
Package Design or Advertising?
If you’re in charge of managing the company budget, you may be wondering whether to focus on production efficiency, new products, advertising, package design or other efforts. In most cases, focusing on package design is significantly cheaper than on-going advertising, making the return on the design investment that much more impressive.
While a package design endeavour may be less expensive than big ad campaigns, it has the largest reach and the most direct impact on sales. According to the territory representative at Tree Brewery, sales have steadily increased with the release of new products and with limited advertising, package design and product quality have been a distinguishing factor for Tree.
Brand identity and package design is seen by literally 100% of potential consumers, providing the last and most important opportunity to influence the sale. Moreover, consumers bring the package design home, allowing design to continue building positive brand associations at every usage occasion.
Package Design’s impact often outlasts three or four ad campaigns, and without physically calculating the ROI, this apparent impact proves design’s paramount value.
The Brand Reach
For brands to succeed, they must be enchanting. Through each touchpoint, whether it be package design, ads, messaging, or PR, brands work because they package emotions and attachments into an experience that actually lives in the world. Logos do some of this, packaging some more.
The team we spoke to from Blasted Church told us that package design plays a key role in the sales of their products and it’s been a key factor in their world-wide success. Blasted Church also expressed that in today’s new media frenzy, corporations should not stop at great branding and package design, their customers expect more and they must maintain relevance in this fast-paced market by utilizing Social Media and other Brand engagement methods.
A true brand enchantment test transports all those notions into a completely new arena, where the consumer develops a preference for the brand and product.
We also spoke to Kalala Wines, who said prior to a new label design, they often had to convince people to buy and list their wine, feeling that the old label design was hindering the brand’s image and story. With the new design, their Sales and Marketing Manager, Jessica Kuling, told us that product is capturing more attention, the sale is easier and they are selling with more confidence.
Package Design, Branding & Sales
Revitalizing a brand’s packaging presents opportunities for new and established companies to break out of the clutter and let their brand shine. For the great majority of new consumer products that don’t have finances for an end-to-end design, advertising and marketing platform, package design is the single most effective influencer for the brand.
Concluding our findings, we discovered that package design is a key-differentiator for sales, but there was another ever-present factor influencing the consumer… The initial favourable emotional response to package design was in each case reinforced by a familiar, confidence-inspiring brand story.
This brand and package design synergy was the essential element that led to increased sales, and depending on the enchantment-factor, meant the difference between a brand with good sales and one with great sales.
Learn More about Straydog’s Vancouver Package Design Studio [+]
Article by Rob Barnett
President, Brand Strategist at Straydog