The news says that everyone is worried about the economy and that consumers are spending less. Is this causing your product sales to decline? Consumers typically cut back on spending during tough economic times. So how do you counter product stagnation when the economy is in a recession or slowdown?
The first thing to understand is that the consumer is still “buying” things. For example, 70% of all packaging is food related and people have yet to eat. They just shop in different ways. They may cut back on fast food or restaurant purchases in favor of home-prepared meals. But they still want to buy the same conditions. For quick meals that are easy to prepare, reheat or ready to eat. Wal-Mart’s fresh take-home pizza is a good example of filling a need. In my case, instead of a trip to a restaurant, your rotisserie chicken is ready to go with dozens of meal prep apps. But I also want convenience and limited meal prep.
To understand how to recession-proof your packaging, you need to learn to recognize which buying cues will motivate your customer to purchase your products. They still want to spend money, they just want to do it profitably and get something of value for their purchases. Or they may just want to treat themselves to something special as a way to make themselves feel better.
Here are some ways you can influence the consumer’s purchase decision through product packaging.
Even though overall shopping may slow down, people are still willing to experiment. As a good example, they could cancel a planned vacation. Can your products be used to simulate a “vacation” at home? The products could be geared towards having a lifestyle experience without leaving home. You could package that experience as an alternative to a vacation. Words like having a luxurious spa experience in your own home or vacationing at home with our X. It all depends on how you connect the experience with the desired result on your product packaging.
Despite the economy, sales of luxury goods are also on the rise. People are willing to spend money to treat themselves or make a personal statement. What packages that can be considered?
luxurious and a special gift for someone? Is your product packaging dazzling and unique? A good example is the number of companies that incorporate Swavorksi crystals into their product packaging or use ultra-sophisticated, elegant glass bottles instead of plastic. Other products include people buying something unique, different, and expensive to make their own brand statement. In this case, the price is not an object, what counts is the result of “feeling good”.
The other side of the coin is the switch from branded products to private labels, usually with considerable cost savings. Almost every retailer now has their own line of private label products.
Can you label your product private for an untapped market opportunity? Literally anything can have a private label. It is one of the fastest growing market sectors. As consumers look for ways to save money, they are willing to experiment with new brands. Private label packaging is now as sophisticated as branded products. The interesting fact is that once they switch and are satisfied, they usually 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 that are still selling for the same price. As I said when asked, smart marketers would figure out how to offer more value, not less. So, in McDonald’s parlance, make me big. Give me more for my money, not less. State this on your packaging 10% more for the same price, value pack, or even our packaging is NOT smaller. Your customer will watch what you do and might buy from someone who does.
I’d like to go back to rotisserie chicken again. This week I bought a chicken at Publix. I was surprised at how much smaller it was as a usually much larger chicken but still sold at the same
price (as well as packaging shrinkage). I was a dissatisfied customer for two reasons. I like the chicken from Kroger much better (the store is also close). The chicken from Krogers comes in a zip lock bag which makes it incredibly easy to store, while the chicken from Publics comes in a paper bag that tears easily and isn’t airtight, forcing me to go the extra mile to repackage. Even better, Kroger offers the member special with rotisserie chicken at a lower price frequently. That’s what I mean about connecting with your core customer: In the same packaged product, Kroger offers value and convenience, Publix doesn’t.
Finally, think about reusing your packaging. This is somewhat similar to “value” on the packaging, but in this case people will keep their packaging, refill it, or use it for something else. Think about how you can give twice as many reasons to buy something by letting your consumer know. You get double your investment as you can also capture ambient motion. Words like our product is reusable, refillable or collectible, or even don’t throw it away.
To be recession-proof, your product packaging is all about listening to the consumer. THEY WILL BUY, if you package the right message at the right price with the right value, recession or not.