PACKAGE DESIGN: Those Critical Final 3 SecondsHow brands can capture consumer attention in today’s cluttered retail landscape with effective packaging solutions and a unique point of differentiation.

June 2019

Physical Packaging is one of the first points of contact a consumer has with a brand and one of the best marketing tools a brand has at its disposal.”

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Introduction: The Elementsof Packaging 03

PACKAGE DESIGN: Those Critical Final 3 Seconds

Without traditional advertising, a retailer’s brand has to rely on the effectiveness of its packaging.”

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Packaging and Private Label 04

Private Brand Case Study: Rexall Pharmacy 05

How your Brand can develop the most Effective Package Design 07

The Future of Packaging 08

In Conclusion 09

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”“In the last quarter of 2017, American private brands saw a growth of 3.2% versus a decline of 0.5% in national brands.

1 Braineet (2018, May 17) Why do new products fail? Retrieved from www.brain-eet.com/company/news/en/braineet/why-do-new-products-fail/2 McDougall, C. (2018, April 09) Labels and packaging in a digital world. Retrieved from www.labelsandlabeling.com/features/labels-and-packaging-digital-world

INTRODUCTION: THE ELEMENTS OF PACKAGING

Packaging is one of the first points of contact a consumer has with a brand and one of the best marketing tools a brand has at its disposal. It provides the opportunity to express a brand’s personality through effective communication of product ingredients, benefits, attributes and directions. When these details are carefully considered and executed, packaging can peak consumer interest, raise brand value, make an emotional connection and most importantly, increase sales.

Packaging has to work hard to stand out and capture consumer attention. Brands should look for packaging experts that treat the details with the attention they deserve.

A brand’s success hinges on the impact of its packaging at retail. This is particularly true for private brands in today’s cluttered online and bricks and mortar retail spaces. In order to stay competitive with national brands and capture consumer attention in those critical final 3 seconds, private brands need a unique point of differentiation and more poignant packaging solutions.

With over 30,000 new consumer products launched in the market every year,1 competition in retail is fierce. While it’s predicted that up to 20% of grocery packaged goods sales will be online by 2025, 98% of sales today still take place at bricks and mortar stores.2

The basic requirements of packaging are to transport a product from factory to store (or direct to consumer) while maintaining the integrity of the product inside. And while it may not seem like the physical material of a pack is the sexiest part of the packaging process, it is absolutely worth paying attention to, because your customer certainly will.

PACKAGE DESIGN: Those Critical Final 3 Seconds

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3 Nielsen Retail Measurements Services (2018, June 03) Private-label brands are hungry for more of the global food pie. Retrieved from www.nielsen.com/ca/en/insights/news/2018/private-label-brands-are-hungry-for-more-of-the-global-food-pie.html4 CBInsights (2018, September 17) Private Labels Rising: How Retailers’ own products are taking off and transforming the CPG Industry. Retrieved from https://www.cbinsights.com/research/private-labels-disrupt-cpg-retail/

The North American market is ripe for expanded private brand growth, giving retailers more control over the supply chain and providing margins that are 25-30% higher than the average national brand.

PACKAGING AND PRIVATE LABEL

PACKAGE DESIGN: Those Critical Final 3 Seconds

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Private brands give retailers more control over the supply chain and provide margins that are up 18.4% of total FMCG marketshare, and sales up 5% versus last year, well outpacing the 2% growth from national brands.5 With access to consumer data, retailers are developing products and packaging that are directly in line with consumer demand.

Here at SJC, we have vast experience with private brands. Our in-house talent worked directly with private brand visionary, Don Watt, creator of Loblaw’s No Name and President’s Choice brands. With it’s iconic bright yellow colour and minimalistic Helvetica typeface, No Name became synonymous with value and went on to revolutionize the private brand landscape.

We continue to follow the Don Watt philosophy of package design, improving and modernizing the process with each private brand launch. We know that without traditional marketing, private brand packages have to work harder to compete with national brands so while we stay true to our process, we add some additional layers to our four-step method (see page 10) that accounts for the uniqueness of private brand.

What is the consumer perception of private brands? Research shows that consumers consider private brands as being equal to and better than multinational brands. In the last quarter of 2017, American private brands saw a growth of 3.2% versus a decline of 0.5% in national brands.3 This growth is expected to explode over the next decade with market share of store-owned labels forecasted to reach over 25% in the next 10 years.4

PRIVATE BRAND CASE STUDY: Rexall Pharmacy

OUR APPROACH TO PRIVATE BRAND PACKAGE DESIGN HELPS BUILD DIFFERENTIATION THAT EXCITES BOTH OUR CLIENT AND THEIR CUSTOMERS.

Background pattern colours were adjusted by category to guide the consumer’s shopping experience. And illustrations and photography were used to convey application or “flavour” whenever warranted or required by the product category.

Illustrations and photography are used to convey application or “flavour” whenever warranted or required by the product category.

REXALL PRIVATE BRAND

Rexall is dialed in to what clients shopping the banner of its private brands expect and how they should look in store. As Rexall’s brand design agency, SJC is privy to this insight and we used it to guide the creative process, ensuring consistency of vision and flawless execution of packaging design.

First, we refreshed the overall Rexall brand identity to better reflect the quality proposition and to inject more personality into the line-upof products. Gradient patterns as a backdrop to the messaging provides a clean, contemporary feel.

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PACKAGE DESIGN: Those Critical Final 3 Seconds

The Rexall private brand look was dated and needed to be refreshed to better reflect the quality proposition and to inject more personality into the line-up of products. It was given a fresh, contemporary look, using gradient patterns as a backdrop to the messaging.

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To better reflect the redesigned Rexall store environment, the outdated Kit private brand needed to be modernized. The brand beckoned for a more contemporary feel, targeting a younger, more design-conscious consumer. An on-trend design was created, featuring cleaner lines, bold graphic elements, contemporary colours and a much stronger, more meaningful and impactful brandmark.

The Quality proposition of the Product offering also significantly increased with new, more engaging and easier-to-execute design.

Rexall’s Be Better private brand design was inconsistent and needed a refresh to better reflect the private brand positioning and to capture its essence. Bold, contemporary and sophisticated colours were used to breathe life into the design, while at other times softer tones prevailed to better represent the product in context of the set. Close-cut macro photography was used to highlight scent and variety and provide an aspirational visual balance.

THIS MAKEOVER HAS GIVEN THE BRAND A FRESH NEW FEEL AND SHELF PRESENCE REFLECTIVE OF ITS QUALITY AND STATUS.

Rexall’s BE BETTER Private Brand

Rexall’s KIT Private Brand

PACKAGE DESIGN: Those Critical Final 3 Seconds

PRIVATE BRAND CASE STUDY: Rexall Health &Beauty

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Our four-step process ensures we deliver impactful packaging design quickly and economically, while keeping the brand top of mind.

We marry our category and competitive insights with brand strategy to develop creative strategy that is on-brand and meets our competitive criteria. At SJC, we pride ourselves on having a strong client-focused background with an eye for the nuances of each individual brand. Working closely with you, we review the brand’s priorities, values and personality to ensure we capture the perfect tone. We then provide the architecture for the hierarchy of communication on pack, including product name, images, brand identity, attributes, benefits and romance copy.

on doing more with a smaller budget using our in-house, end-to-end process and a laser focus on speed to market. We have the ability and experience to handle thousands of SKU’s for multi-product roll-outs and manage multiple vendor relationships. Best of all, we’ve digitized our entire system to create a streamlined, no-hassle process that quickly adapts to any changes along the way.

WE PRIDE OURSELVES

The creation stage is where we develop the first visual cues for the packaging. We provide you with creative direction options that include mock-ups that align with your brand vision, product strategy and key requirements. In close collaboration with you, we finalize a creative direction.

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PACKAGE DESIGN: Those Critical Final 3 Seconds

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IMMERSION:

INNOVATION:

We start with a deep dive into the category, competitive landscape, local and global trends, and brand requirements. This information is shared with our in-house creative team that begins various design explorations, consistent with the established brand position. This all-encompassing research frames up the initial recommendations we present you with the best go-forward strategy.

This is where the magic happens, where all the research, design, and refinement pays off and we develop the final package design. Our aim is to bring the brand to life in a compelling manner. Our end-to-end process ensures the highest levels of budget and timeline efficiency. If cost-savings is something on your radar (and why wouldn’t it be?), our knowledge and relationships within the industry allow us to negotiate the best design and production costs in the market.

CREATION:

IMPLEMENTATION:

HOW YOUR BRAND CAN DEVELOP THE MOST EFFECTIVE PACKAGING

THE FUTURE OF PACKAGING “Although decisions on product sustainability and sales channels may fall outside of the packaging world, packaging still has an integral part to play in both of these realms. It’s important to partner with an agency team with a future-facing mindset to provide you with insights into where the industry is headed.

5 Lewis, J. (2019, June 6)Shoppers seek out green alternatives to single use food packaging, but aren’t willing to pay a premi-um, study finds. Retrieved from https://www.theglobeandmail.com6 Weinswig, D. (2018, March 01) Online grocery set to boom in 2018 (As Amazon acknowledges online grocery a tough market to crack). Retrieved from https://www.forbes.com/sites/deborahweinswig/2018/03/01/online-grocery-set-to-boom-in-2018-as-amazon-acknowledges-online-grocery-a-tough-market-to-crack/#779b027e520b7 Mcdougall, C. (2018 April 09) Labels and packaging in a digital world. Retrieved from http://www.labelsandlabeling.com/features/labels-and-packaging-digital-world

SUSTAINABILITY

ECOMMERCEare seeing their online sales increase by double digits as consumers become increasingly savvy to the convenience of online shopping and grocery delivery. In fact, researchers predict that 20% of all grocery sales will come from online channels by 2025.7

It’s something, then, that the North American landscape needs to keep in the back of their minds. For online channels, packaging must continue to be functional, economical to manufacture, economical to ship and aesthetically appealing.

“With the rise of online shopping, packaging may be the first tangible impression a consumer has with a brand.”

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Grocery is not immune to this trend with giants like Walmart, Target, and Kroger investing in online infrastructure and committing to ecommerce strategies. In a three-month period in 2018, 49% of U.S. consumers purchased consumer packaged goods through online channels, twice as many versus the same period a year before. Among millennials, the rate was even higher, reaching 61%.6

While the growth of online shopping is seeing a huge surge, it’s important to keep in mind that these sales make up less than 2% of total grocery sales.7 Having said that, some grocery retailers

PACKAGE DESIGN: Those Critical Final 3 Seconds

2019 found that one in two Canadians actively shop for alternatives to plastic packaging - however they aren’t keen on paying more for green options.5 Retailers needs to address this challenge as the growing global concern about plastic pollution impacts purchasing decisions.”

Sustainability is becoming increasingly important to the Canadian and American consumer. In fact, 42% of North American online consumers are willing to pay more for products and services provided by companies that are committed to positive social and environmental impact. A study conducted by Dalhousie University in May

THE FUTURE OF PACKAGING “

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Speed to market can make or break a product launch in our competitive retail environment. And getting more bang for your buck can put thousands of dollars back in your pocket with ongoing savings going straight to your bottom line.

With our adaptive and integrated end-to-end process and our focus on packaging excellence, SJC can get you the most out of your product’s packaging, and create a compelling brand experience within those critical final 3 seconds that browsers turn into buyers.

1 Braineet (2018, May 17) Why do new products fail? Retrieved from www.braineet.com/company/news/en/braineet/why-do-new-products-fail/2 McDougall, C. (2018, April 09) Labels and packaging in a digital world. Retrieved from www.labelsandlabeling.com/features/labels-and-packaging-digital-world3 Nielsen Retail Measurements Services (2018, June 03) Private-label brands are hungry for more of the global food pie. Retrieved from www.nielsen.com/ca/en/insights/news/2018/private-label-brands-are-hungry-for-more-of-the-global-food-pie.html4 CBInsights (2018, September 17) Private Labels Rising: How Retailers’ own products are taking off and transforming the CPG Industry. Retrieved from https://www.cbinsights.com/research/private-labels-disrupt-cpg-retail/5 Lewis, J. (2019, June 6)Shoppers seek out green alternatives to single use food packaging, but aren’t willing to pay a premium, study finds. Retrieved from https://www.theglobeandmail.com6 Weinswig, D. (2018, March 01) Online grocery set to boom in 2018 (As Amazon acknowledges online grocery a tough market to crack). Retrieved from https://www.forbes.com/sites/deborahweinswig/2018/03/01/online-grocery-set-to-boom-in-2018-as-amazon-acknowledges-online-grocery-a-tough-market-to-crack/#779b027e520b7 Mcdougall, C. (2018 April 09) Labels and packaging in a digital world. Retrieved from http://www.labelsandlabeling.com/features/labels-and-packaging-digital-world

LET’S TALK!Michael Jenkins

Director, Business Development SJC ContentST. JOSEPH COMMUNICATIONSstjoseph.com

IN CONCLUSIONWhile getting the right colours, imagery, copy, and claims is integral to a successful package, it’s simply not enough in this competitive atmosphere. Brands need to find the most economical, quick and efficient packaging processes in both function and creative design to stand out in our crowded retail world.”

PACKAGE DESIGN: Those Critical Final 3 Seconds