Sales Promotion - Week #5Packaging

• Review: Retail Sales Promotion

• Advertising

• Introduce Package Design Goals

• Term Projects: Where are we?

• Begin work on Packaging Design Goals/continue working on projects

Retail Sales Promotion

• Why Promote?– A.I.D.A.

• External Factors– Seasons

– Holidays

– Events

– Sales Cycle

• Other Factors– Historical Factors

– Sales Goals

– Flavor of the Week

Benefits of Promotion

• Control and Anticipate– Sales– Expenses

• Inventory Control

• Image

Considerations

• Desired Image– Including style, benefits, pricing

• Reach and Cost– Who will it reach?– Is it worth the cost?

• Coordination– All elements must support each other!

• Creativity– Stand out from other messages

Budgeting

• Typically 1.5% - 6% of net sales

• Who creates the budget?– Management– Divisions– Overall budget– Negotiations!

• Other expenses– Payroll, Postage, materials, etc.

Planning the Calendar

• Needs– Holidays, events, last year, historical expenses

• Process– Set Sales Goals– Determine promotion needed to meet goals– Allocate

• Plan– Media buys, displays, etc.

Drawbacks of Promotion

• Variability is painful!– Inconsistent ordering/production– Train customers to wait for sales– Extra expenses (e.g overtime) can be high– Customers may go to competition

• Retail Promotion is a Slippery Slope!

• Solution: EDLP

Buy-ology

• Supermarket habits– Sign psychology– Unused products– Shopping lists– How we find what we want– Brand loyalty

• Men vs. Women

• Luxury

• What else?

Advertising

• Ad Agencies

• Roles

• Advertising Ratio

• The Plan

The Ad Agency - Relevant or Not?

– Create concepts– Produce ads– Place ads in media– Full-service:

• Marketing

• Promotion

• Merchandising

• Packaging

• PR

• Research

Roles

• Copy– Copywriters create the text– Deliver the message clearly

• Art– Art Director oversees development– Includes all visual elements

• Illustrations• Photography• Videography• Etc.

• Production– Producer hires and manages resources

The Advertising Plan

• A six-month calendar

• Rework up to a month in advance

• Includes:– Date of ads– Department/Items to be advertised– Estimated resulting sales– Medium– Amount of space or time– Cost

Packaging Design Goals

• Before starting (formal) design!

• What does the package need to include?– To support product– To meet regulations (if any)– To satisfy retailers (and distributors)– To reach target market

Packaging Your Product

• Size• Visibility• Strength• Protection• Freshness• Application• Ease of use

– What does the package need to do for the product?

Regulations

• What regulations affect packaging your product?

• Example: Bruttini cookies– Nutrition Facts– Net Weight– Where it is produced

• What other packaging regulations are there?• Look for examples of your type of product

– See what seems required, or at least common

Consider the Supply Chain!

• What would wholesalers/retailers need?

• Shelf size

• Racks

• Other similar goods

• Warehousing

• Case size

Target Market• Finally! What should consumers see?• Think about Buy-ology!

• Communicate the product and benefits– Package– Colors– Fonts– Graphics

• Make an impression• Don’t change more than one element (if any)• The medium is the message!

– Marshall McCluhan

What’s the Message?

What’s the Message?

Get References!

Don’t design in a vacuum

Understand what the consumer expects

Break

Term Project: Where are we?

• Product Name/Description• Logo• Market Positioning• Target Profiles• Features vs. Benefits

The Foundation is Set

Term Project: What’s Coming?• Packaging

– Objectives– Design

• Advertising– Objectives– Media Plan– Print Ads

• Pricing• Promotion Plan

Work in Groups

HOMEWORK:

• Read Chapter 5 (Types of Retail Advertising)

• Develop Packaging Design Profile

• Find 2-5 reference packages• Gather materials to work on packaging in class