Ever wondered what the value of packaging is to your business?
Have you undervalued packaging in the hope that the product would do the selling for you? If so, maybe it's time to change. We did some digging to uncover some tangible evidence that good, considered packaging helps increase sales and boost business growth and profitability.
To begin with we wanted to understand the neuropsychological effect of external stimuli, how the brains responds to the outside world, and how this correlates to packaging itself. In a 2013 European study on “Impulsive Buying Tendencies and Product Perception”(1) (Hubert M, Hubert M, Florack A, Linzmajer M, & Kenning P, 2013) research showed that "Attractive packaging stimulates regions in the brain associated with an impulsive system", meaning the more attractive the packaging the more likely it is that someone would purchase it on impulse.
Halo Visor packaging design
In the same study, it was identified that "Attractive packaging activated regions in the brain associated with reward" and "Unattractive packaging actually activated regions in the brain associated with negative emotions". So not only does attractive packaging lead to an increased production of dopamine, the 'feel good' neurotransmitter, unattractive packaging can have the complete opposite effect. Now if that doesn't get you thinking about updating your packaging I don't know what will, but let’s try.
In another study conducted in 2018, "The Design of a Product's Packaging Influences Purchase Decisions"(2), (Ipsos,2018) it was identified that "72% of people say that the design of a products packaging influences their purchase decision". Furthermore, a study on the "Impact of Product Packaging on Consumers Buying Behavior"(3) (Mazhar M, Daud S, Arz Bhutto s, Mubin M, 2015) concluded that “Packaging is one of the most important and powerful factors influencing a consumer's purchase decision”.
Now enough on the studies, let’s take a look at how Kleenex used the above information to develop a packaging solution to increase sales during a time of nominally slow sales. In order to increase sales during the slower summer time of year, Kleenex developed the 'Slice of Summer' packs, a range of summer fruits inspired, wedge shaped packs. And it worked, "Kleenex sales typically go up 60 per cent during the cold and flu season, but the brand experienced close to 100 per cent rise in sales due to its summer packaging design"(4) (Munguti Q, 2017).
Kleenex Slice of Summer tissue box, source: theinspirationroom.com
Kleenex also received recognition for the innovative pack design through numerous awards including the Diamond Pentaward for Best in Show at the 2009 Pentawards, an International Packaging Excellence Competition. Member of the judging panel, Lars Wallentin commented “I find them very attractive, full of joy and freshness. I want to go out and buy this packaging”(5) (Wallentin L, 2009) As can be observed in this comment, the attractiveness of the pack directly influenced the product’s success due to the neuropsychological effect it has on the brain.
The reverse can also be observed due to the Plain Packaging Mandate(PPM) for cigarettes rolled out in Australia in 2012, where all branding was forcibly removed. As identified in the report "Assessing the Sales Impact of Plain Packaging Regulation for Cigarettes"(6) (Bonfrer A, Chintagunta K, Roberts J, Corkindale D, 2019) , monthly cigarette sales dropped by 67 million sticks due to the PPM. This clearly demonstrates a direct correlation between branding & packaging appeal and sales, in this case, to the negative.
As can be observed through the numerous studies and observations above, when it comes to sales, a product’s packaging is just as important as the product itself. Kleenex clearly understood the drive of attractive packaging on consumers and by addressing this directly, achieved clear and tangible results to their bottom line. If you would like to know more about the benefits of good packaging design and how to achieve it contact us at HonePD on +61 (3) 9939 8880.