Don’t underestimate the importance of packaging. It is crucial to the success of your business.

Below I discuss the 8 reasons why your packaging is important. From its more traditional functions, to its role on the shop floor and its new role as a method of marketing.

Attract the attention of your target market

Over two-thirds of shopping decisions are made inside the store.  Because of this, packaging has a vital role to play in attracting attention and persuading shoppers. Customers are drawn, more than anything, to products that look good; therefore, packaging plays one of the most important roles in the success or failure of the product.

Just take the example of cigarette packaging in Australia. Recently the Australian government moved to institute a plain packaging law for cigarettes. This removed logos, styling, and even the companies own typefaces.  Such a move resulted in the biggest smoking decline that Australia has seen in over 20 years.

plain packets

Can increase the desired price point for this product

We make assumptions about a product’s quality and price on the basis of its packaging. Quite simply your product’s packaging has the power to increase its perceived value, help you charge more for it or tap into a certain niche.

Brand identification

Packaging is the main way brands are advertised and identified. Through the consistent use of a particular colour scheme, imagery, typeface and/or logo, your different products can obtain brand identification from the customer. Such packaging can also help to differentiate brands.

Builds brand image and ethos

Packaging also provides a tool to build and reinforce your brand image and ethos. Take, for example, packaging that is recyclable or reusable.  Eco-friendly packages are always a reason for a consumer to choose your product over your competitor’s. According to recent data, 52% of people make purchase decisions partially due to packaging that shows a brand making a positive environmental impact.

It can help you advertise your product – post purchase

Packaging simplifies the work of sales promotion. This is because packaging material, whether at home or being transported constantly keeps your brand in the mind of your consumers.

Clever packaging can be a tool for social media

Social media has many fads that come and go. However, one has kept surprisingly resilient and now is a something somewhat expected in online communities. This is the Unboxing fad, whereby an individual uploads a video of themselves opening a series of purchases or newly available items provides large amounts of exposure to your business. Having good packaging can be key in building strong relationships with social media outlets and increase your reach.

To protect the product

This one might seem obvious but is important non-the-less.

Packaging must be designed in a way to protect the product from damage. This means thinking about all the possible issues your product could run into in transit and beyond.

Make sure your packaging can protect your product against being dropped, crushed, and damaged during transport. Make sure your packaging can protect your product from contamination by microorganisms, moisture and toxins as well as against high temperatures and humidity.

Ease of transport and storage

Your packaging can cause convenience or frustration in the transport and storage of your product.  Superstores, for example, will need to be able to stack your product; consumers will need to be able to transport your product, often by hand or in a small bag so forth.

That being said, one of the most important aspects of packaging, when it comes to transport, is cost. If you can store 100 cylindrical tins, but only 75 square cartons, you will opt for the cylindrical tin packaging so that you can transport more goods in one trip. Always consider the cost of transport and shelf stacking when creating the packaging for your product. 

various clever food packaging

What we see then, is that packaging is incredibly important to your product in several ways. It not only acts as an instore eye-catcher, price setter, as a crucial part of brand image and ethos, a post-purchase advertiser and a social media tool; but also, to fulfil a function of protecting your product and making transport and storage easier.

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Originally from Grimsby, Shaun is a Politics, Philosophy and Economics Undergraduate at Goldsmiths University of London. Shaun has joined the team at Company Formations 24.7 as an Intern and Content writer for the summer period.