Developing intelligent and relevant retail package design solutions is one of the most cost efficient ways of using your marketing budget to influence the purchase decisions of consumers at retail. At least that is the conventional wisdom of package designers.
The surprising results of a recent Symphony IRI study may make that argument even more compelling, for both retailers and CPG companies.
Apparently consumers have a very different purchase decision pattern for private label brands versus traditional national CPG brands. According to Thom Blischok, global President of Symphony IRI, in a storebrandsdecisions.com piece,
“Two-thirds of shoppers decide on their store brands purchases in the store and at the shelf versus traditional CPG product purchases, which are predominantly (80 percent) decided at home.”
Now that’s fascinating, and these results suggest two things.
CPG Brands need to work harder on the shelf
National brands apparently should put more resources towards identifying why these purchase decisions are made at the shelf and how to influence them with the package and all other forms of retail in-store marketing.
My suspicion is that they will find consumers, when making decisions in the store, are looking for more than a recognizable brand. Certainly price is a factor, but just one factor to consider. It may also be that store brands are doing a better job of communicating other points of benefit or points of difference to the consumer.
Store Brands must continue to expand their offering
One traditional strength of CPG brands has been variety and choice. But the IRI study finds that 53% of customers prefer stores that have a large variety of store brands. The days of having only a couple of store brand choices within each category would appear to be ending, and apparently for good reason.
The good news for package designers is that both our CPG and private label clients are beginning to understand more clearly the power of package design, over traditional media, in influencing in-store purchasing decisions. And this study certainly reinforces that trend.