Packaging 1 In times of tight advertising budgets, manufacturers like to remind themselves that up to 75 percent of purchasing decisions are made at the POS - and bring fresher colors, more sensual shapes and more convenience to the packaging. The spectacular "packaging appearance" had a symbolic character for an industry with increased self-confidence. Especially on the carpet floors of consumer goods manufacturers, the realization is gaining ground that sustainable advertising is hardly possible with a budget of CHF 50,000 - but optimal packaging can be developed for the price, which is also successful at the POS. While competing products are only marginally different from one another and their USPs are becoming increasingly blurred as a result, it is the packaging that promises the product a unique appearance. Today, experts therefore speak less of the USP and more of the UPP, which means "Unique Packaging Proposition". An ideal UPP is based on the shape (new convenience aspects), the graphics, the material and the color. And the packaging industry in particular is able to offer ever better solutions in these areas thanks to constant innovation.
For example, the salad dressings from "Anna's Best" (Migros) are available on the shelves in extremely waisted plastic bottles, whose wrap-around labels (from the base edge to the mouth of the bottle) show vegetables and salads in unusual sharpness and color brilliance in close-ups. Chocolate bars packaged in new films have the same effect. Vetropack, for example, which offers Swiss wine producers over 100 standard bottle models in eight different colors, shows just how wide the range of packaging shapes is today.
Growing price pressure "The importance of packaging in the marketing mix has clearly increased in recent years. One indication of this is that traditional advertising is suffering far more from the current recession than packaging design," says Martin Amann, CEO of Future Brand AG in Reinach. Nevertheless, the Swiss packaging market is also undergoing structural change. On the shelves of the major distributors, the cut-throat competition is becoming increasingly fierce. Cost pressure is growing in parallel with rising expectations regarding product presentation. In this environment, only large companies with an international focus or highly specialized small companies can survive.
Another phenomenon is the shortening life cycles of products. Particularly in the consumer goods sector, where sweet drinks or chocolate bars used to remain visually unchanged on the shelf for years, they are now repositioned after just a short time. This requires the packaging industry to be more responsive and flexible.
POS instead of traditional advertisingIn the major distributors, established brands are increasingly launching new products such as yogurts, biscuits or chocolates via POS marketing only - without accompanying advertising. Experts are convinced that UPP would not only enable such line extensions, but also actual new brand launches. However, it is the wholesalers who counteract this by only listing new products or brands if the manufacturer guarantees accompanying activities in the area of traditional advertising.
There are also conflicts of interest between retailers and manufacturers when it comes to display solutions. At Model AG in Weinfelden, for example, the industry leader in this field, such display solutions are increasingly in demand from manufacturers. They guarantee the latter a clear profile compared to competing products. Wholesalers, on the other hand, have reservations about display or shop-in-the-shop solutions. As a rule, they require a second point of sale that takes up space (and sales). In addition, wholesalers assume that consumers prefer to find all products in a particular category on the same shelf. Ultimately, it is still the shelf impact (conspicuousness), the size impression (size effect) and the block effect (visual coherence of a range) that decide which brand can prevail over competitors at the POS.
It's not just the great packaging that triggers the impulse to buy - it also depends on the shelf space in the store.
The SVI takes off
The birthday celebrations are marked by a new beginning. Exactly 40 years after its foundation, the Swiss Packaging Institute (SVI) wants to increasingly establish itself as an overarching and unifying platform within the industry. The association also wants to present itself more confidently to the outside world as a spokesperson for the industry and establish the topic of packaging in the public eye. The aim is for packaging to be perceived less as "waste" and more as an "emotional product with increasing importance in everyday life". In order to achieve these ambitious goals, a new strategy has been developed over the last two years, which is now to be gradually implemented from July 2003. By comprehensively strengthening the association, the industry is responding to future market challenges such as increasing globalization, rising competitive and cost pressures and concentration trends. The focus of the realignment is on training and further education (there is currently no "packaging theory" or further education at engineering level) and the development of meaningful industry statistics. The most important showcase for the Swiss packaging industry is the Swiss Star competition, which annually evaluates and awards prizes for the most innovative and creative work in the sector. This competition was launched back in 1957 and has grown in importance in recent years.
Further information can be found at www.svi-verpackung.ch and www.verpackungs-markt.ch (tv)
Thomas Vaterlaus