Jan 18, 2017

How Premium Packaging Boosts Your Brand with Consumers and Retailers

premium packaging No matter the season, there are special occasions throughout the year during which shoppers will be buying gifts for important people in their lives.

Whether it’s the holidays, a present for Valentine’s Day, or something special for Mom on Mother’s Day, premium packaging in the form of gift sets provides many brands with a unique opportunity.
A product that’s packaged in an attractive gift box will certainly be eye-catching, helping merchandise stand out on the shelf and online. However, there are other important benefits to choosing gift set packaging.

The Retail Advantage 

In an article for Inc. magazine, senior writer Ilan Mochari offers advice concerning how to get on a retailer’s “good side.” Most important is understanding that the retailer is your customer just as much as the consumer or end user.
“You need to deliver what delights them (high margins, stop-and-stare visuals) and avoid what aggravates them (onerous ordering procedures, space-consuming displays).”
The visuals that premium packaging, such as a gift box, offer demonstrate to retailers what Mochari calls “your marketing might.” It shows you’re making an effort to help the retailer create an alluring shopping experience inside the store.
Both the design and the functionality of packaging matters to retailers. The way items are packed in a gift set should highlight important products, ensuring visibility through things like window boxes and thermoform risers. At the same time, merchandise needs to be packaged securely to protect it from damage or displacement in the gift box during transportation.
Products packaged in a gift box can also make life easier for retailers by improving efficiency of tasks like stocking and checkout. That includes the ability to quickly and easily set up retail displays and fill store shelves with your brand’s gift sets.
Even the location of the barcode on a gift box makes a big difference. When it’s easy for a cashier to find and scan a barcode, the packaging will help retailers avoid frustration at checkout, including long lines during busy holiday shopping seasons.

Increasing Consumer Loyalty 

An obvious benefit of gift sets to the consumer is how it makes shopping simpler. They’re getting a complete bundle with a few related items all packaged in a striking way.
Consumers are faced with an incredible amount of choices both in stores and online, which causes difficulty during the decision-making process. Gift sets make choosing a lot easier.
Beyond the convenience of gift sets, there is research showing today’s consumer sees a lot of value in premium packaging. Dotcom Distribution’s 2016 Packaging Study surveyed more than 500 shoppers and provides some eye-opening insights.

Premium Packaging and Repeat Purchases 

The study found 40 percent of the shoppers it surveyed would be more likely to make a repeat purchase if what they bought came in a “gift-like or premium package.”
That’s because the right package leaves a lasting impression. When a consumer has a hard time throwing away the box a gift came in, it’s a sign you’ve chosen impactful premium packaging.

Premium Packaging Improves Brand Perception 

Well-designed gift sets create a positive buzz and an unforgettable experience. The Dotcom Distribution study found packaging can make a brand seem more upscale, reinforces the value of the product, and gets the recipient excited about the package.

Premium packaging is all about improving the customer experience. It’s part of the reason unboxing videos and subscription box companies have become hot trends. The right packaging can even turn a commodity into something extraordinary.

Improves Word-of-Mouth Marketing 

Half of the shoppers Dotcom Distribution surveyed (50 percent) said branded, gift-like packaging would make them more likely to recommend products to friends and family.
That means they’re also more likely to talk positively about your brand on social media. Even better, a stunning gift box will encourage people to take a picture of themselves with the package and post it online. A beautiful or interesting package is going to show up in a lot more selfies!

Importance for Luxury Brands 

Certain brands and products may be more inclined to benefit from gift packaging. In some cases, consumers may even expect a premium package.
43 percent of participants in the Dotcom Distribution study said gift-like packaging was “extremely important” for luxury items. The research suggests premium packaging for consumer electronics and specialty food items is also important to consumers.
When it comes to customer loyalty, more than 60 percent of consumers who purchased a luxury item in the past year said premium packaging would encourage a repeat buy. That’s compared to 40 percent across all categories.

Choosing the Right Design

There are a lot of options to contemplate when it comes to designing premium packaging like gift boxes and gift sets.
You have to think about both the retailer and the consumer. You have to consider how the package will affect brand perception. You have to think about functionality and weigh out the costs with your potential return on investment.
Menasha can provide expertise in a wide variety of areas. From coming up with a concept for premium package design to picking the best material and graphics for the package all the way through shipping and fulfillment … we have the experience your brand needs to turn gift sets for special occasions into a success.
In addition to print and design capabilities, we offer end-to-end solutions for retail product packaging as well as shipping solutions and supply chain solutions.
Contact us today to find out more about how we can help.