.
3- The Power to Set the Price
Packaging plays a critical role in setting the product price.
The look and feel, the materials, colors, and finishes play together, conveying the price of the product to the consumer. If you want your product to be placed in premium categories, a suitable packaging material to select would be glass.
Stainless steel and aluminum are also recognized as more valuable than plastic and cardboard.
The color of packaging also sets pricing; a black label may be noted as more valuable than a natural colored one. Printing quality on cardboard also makes a pricing difference.
For example, full-color lamination, hot stamping or embossing will add perceived value to the product. Lousy packaging will undoubtedly damage potential pricing.
Tip: Define your product-potential-pricing first, then evaluate if the packaging is accompanying your pricing strategy, it will make easier to decide on how much is it worth to invest, keep in mind that underinvesting may be as damaging for your product as overinvesting.
4- The Power to Sell
Excellent packaging works like a 24/7 sales representative.
The price of the square foot of retail space is quoted, and if your product does not achieve the expected sales performance, it will be asked to leave. Simply, you may get the opportunity to reach the shelves. However, you will remain ONLY if your product performs well.
Tip: Redefine the role of the packaging and compare it with a 24/7 sales rep, then invest time and energy accordingly.
5- The Power to Divide Markets
Each product container has an SKU (stock keeping unit), a barcode that makes it a unique product.
Subtle changes in packaging, occasional restyling, differences in highlighted features, emphasize its uniqueness. Knowing this, it is clear that companies set out to manufacture products to supply Target, Wal-Mart, or Best Buy exclusively and uniquely to each.
Tip: Work with retailers, offer them exclusivity with a twist on your product or POP materials and win their favor. Consider them your best allies when it comes to selling your products.
In part two I will identify the final five of ten superpowers of packaging.
Related articles:
The 10 Superpowers of Packaging- Part 2
The Need for New Customers. Where do you find them?
