Business & Economy

Packaging is known to play an important role in the last 10 seconds of decision making for a consumer and is often said to be more effective than conventional advertising, especially when it comes to fast moving consumer goods (FMCG). Just think of those multiple occasions when packaging created the perception of a better product and compelled you to decide on a brand, and the point becomes clearer. A research by Connoly and Davidson in 1996 concluded that 73 per cent of FMCG purchase decisions are made at the point of sale and it has also been proved that design plays a strategic role in approximately 70 per cent of the cases.

Packaging is meant to comprehensively reflect the brand concept, product features and the psychology of the target audience. For instance, as per research on 800 shoppers in the US by Perception Research Services (PRS) and the Institute of Packaging Professionals (IoPP), product protection and tamper resistance were rated as extremely important by 75 per cent of respondents when it came to food products. In the non-food category, ease of opening and dispensing took precedence.

And then there is the aspect of emotion, which drives around 47 per cent of consumer purchases. Perhaps emotion is what really explains why packaging in the festive season acquires such special meaning. According to industry body FICCI’s FMCG report published in 2010, approximately 40 per cent of annual sales of FMCG products occur during the festival season that comprises the 3rd quarter of the financial year. Also, around 40 per cent of the average hike in sales in FMCG products during the festival season is due to packaging as per FICCI estimates. So leading players, in particular, are at their best in terms of packaging innovation during this period – starting from indigenous Indian players (like Dabur) to notable MNC brands (like Amway). It is seeing significant interest from unbranded players too. In the case of food products, that implies a double-digit jump in demand for packaging during the festival season. As per KSA Technopak, packagers in New Delhi affirmed that demand for gift-wrapping and special packaging had risen by 20 per cent yoy in 2011 in the festive season.
Good packaging should also reflect the occasion in a contemporary manner. PepsiCo, for instance, has been lauded for the manner in which it promoted the blue and gold cola drinks in previous world cups to reflect the country’s expectations from ‘Team India’. In this season, the marketing team for Kurkure – from the stable of PepsiCo – laid out a mandate to design clutter breaking package designs for Kurkure Festive boxes. The company invited artists to give wings to their creativity and use bright colours for the designs that signify festivity in a modern manner. In this contest, the contestants were encouraged with inspirational ideas on new dishes that can be made from Kurkure during Diwali.

The same is true for sweets brands, which are among the obvious gainers. Parveen Aggarwal, owner of a packaging factory which does the festival packaging for brands like Halidram and Kurkure says, “The response was good this Raksha Bandhan (for Haldiram), so the expectations were high for Diwali. We are instructed to create a new concept of packages that matches with different festivals”. Dunkin’ Donuts has also introduced special gift packs this season with the look and feel of sweet boxes. In fact, they have introduced items like Motichoor Surprise, Petal Jamun and Coconut Burst, which remind you of traditional Diwali sweets.
Investing in the right kind of packaging on a sustainable basis is definitely an imperative. Noted brand consultant Jean-Pierre Lacroix, RGD, President and  Founder of Shikatani Lacroix, concludes in his white paper on managing packaging ROI that "if packaging changes are done properly, it is very likely to provide a positive return on investment (ROI) through increased market share or the ability to raise prices to cover incremental costs”. If done right, it has a direct impact on consumer purchases as it develops strong affinity". "Pursuit of product packaging design features and the pursuit of an increasingly perfect visual experience of beauty has become a prime target for modern packaging design during the festive season,” feels Ramesh Chauhan, Chairman, Parle Bisleri. Two years ago, Bisleri got itself a packaging makeover by introducing a ‘celebration pack’ and the visuals were designed to connect it to Christmas. The central idea is to position it as a brand for all festivals. Design agency Red Lion made the new look possible and the biggest creative challenge, according to the agency, is that like advertising, the packaging should appeal to the consumer’s festive mood. Needless to add, marketers have to be equally wary of missing the customer’s attention. “During popular festivals, people exchange gifts and look for attractive and eye-catching packaging. Your packaging needs to be pretty and enticing enough to be different amongst the plethora of gift packs available at retail shelf,” affirms Rajeev Jain, Senior GM, Marketing, DS Group. DS Group’s flagship brand – Catch – which recently forayed into milk-based powdered beverages with Yomil, is unleashing a special gift package of Yomil with a free shaker.

Just like other forms of marketing, there is a constant debate with respect to ROI on packaging investments. The prominent school of thought seems to suggest that packaging is a brand building tool over a period of time, and hence should not be viewed in terms of hard numbers. “The proportion of packaging expenditure depends on the brand objective and the product. Since the aim of festival packaging is promotion, the costs are absorbed as marketing expenditure,” feels Rajeev Jain. And in the festival season in India, where customers are accustomed to getting more rather than less, it makes sense for marketers to loosen up their purse strings a bit. In the long run, they can milk these investments through premium positioning and higher prices.

angshuman.paul@planmanmedia.com