The competition is fierce within the small business community. I’ve spent a bit of time helping small businesses promote their products, and product packaging and placement seem to be everything. Contemplating this theory took me on a road to do a focus group and further research. It’s true; horrible products with great packaging are profitable. I even had a business owner comment, “…his product may not be the best but people love the packaging…” It’s important that when a company is developing their brand, they put heavy consideration into what is going to set them apart from their competitors, and packaging seems to be the determining factor whether or not product sales are a success or a failure.
According to Kristie Lorette, Demand Media, article, “Importance of Product Packaging in Marketing”; it is vital for companies to consider function, attraction, promotion, purchase decision and differentiation in the branding of their product. Function means product protection from getting damaged; promotion talks about the product and provides directions on how to use it; attraction draws people to the product; purchase and decision discuss ingredients in the product that help the consumer decide whether or not to purchase the product and differentiation is the one thing that sets companies apart.
Albert Einstein once said, “Imagination is more important than knowledge.” When people examine whether or not a product will work for them, they’re making an unconscious decision based on what appeals to their senses, the part of a person’s brain that speaks in feelings, not words (Van Praet, 2012). They’re really looking to connect with the company’s brand, and packaging is what helps people identify with the company. http://smallbusiness.chron.com/importance-product-packaging-marketing-648.html
If a company decides to build their brand around poor packaging, it could be difficult for them to upgrade it; changing the packaging could alter the company’s brand and that could prove to be a bad move if you’re a small business. Not only could changing the package be a bad decision for a company’s brand but it could also prove to be costly. It is important to remember that what works for today may not work tomorrow so your packaging has to be dynamic, constantly and evolving. As time moves on your competitors may or may not develop a better product, but if they’re developing a better package your company could lose profits. You may find it cost prohibitive to change your packaging but it could mean the difference between being on top, middle or bottom of your game.
At the end of the day, a company should always consider the packaging of their product as a piece of clothing that will reflect who you are as a company.
LAMPREDA 