IBC Shell

VALUE ADDED PACKAGING (VAP) – A BOOORING ACRONYM

set of shelves full of products with hangers in a supermarket

At a recent conference I was asked if the time, incremental cost and effort invested in value-added packaging (VAP) is of consequential value. I answered with a question; “value to whom”; the consumer, retailer or the marketer?”
What does value mean anyway? Much of the VAP out there is as boring as this acronym.
I haven’t checked with Wiki, but essentially it refers to the nature of a package; be it spirits, fragrance, cosmetics, or any luxe brand that projects an enhanced perception or bonus beyond the everyday retail offering. The definition is as varied as the budgets and margins within consumer product categories, and the term is usually applied to premium, super-premium, or ultra-premium offerings.

 

Value-added packaging, if that’s what you wish to call it, is about injecting energy and fostering Equity in your brand; igniting momentum and supporting organic growth. It is an investment in one of the many segments of your brand strategy. It is not about building volume or case count during a particular promotional period.

 

The package becomes an exclusive bit of parking space on the shelf, creating an environment surrounding and amplifying premiumness.
Luxury brand teams have larger funding to support their image with upscale materials, molded hi-touch plastics, wood, leather and fabrics. The value-added packaging world also includes branded giftware accompanying the product.
With a few remarkable exceptions, we look upon a sea of sameness in the retail environment.
Consumers try to decipher from an array of competitive options, private labeling, and an indistinguishable number of skus, within, above and below tier in all categories.

 

WHAT’S COMPELLING HERE?
46% of the $66 billion retail revenue (data will vary) “occurs” during holiday and summer promotional periods; the prime occasions for gatherings, parties and celebrations with large groups of potential brand advocates.
The point of sale is the culminating site of all prior brand building activity on the shoppers’ path to purchase: print media > cable > streaming > social > PR > and events – The penultimate opportunity to retain and accrete brand equity.
Our lifestyle, especially during holiday, pressures the consumer to make spontaneous decisions. Our sensory filters contract; less gets through, and it takes an extraordinary image to trigger attention with online e-tail gobbling sales Pac-man style.
Therefore, gift packaging at brick & mortar is an essential, logical, fast, holiday / summer gift location for the impulsive shopper.

 

Here stands the final battle for brand loyalty: creating it, reinforcing it, retaining it and vying for cross-over share from your competition.

 

SUMMONING A SUPERIOR ACRONYM: BĒP– THE BRAND EQUITY PACKAGE:
1. Reward your loyal advocates who have been purchasing the basic product throughout the year.
2. Create incremental facings and table space at retail with innovative, exciting product offerings.
3. Amplify brand equity, generate brand awareness, and encourage cross-over from your competitors’ share.

 

THE ESSENTIALS FOR A BRAND EQUITY PACKAGE:

QUESTIONS TO ASK YOURSELF:

CRITICAL ISSUES:

An extraordinary package design can alter the complexion of an entire category.

Precisely designed and executed, your package will profoundly impact brand identity.

 

Norman Kay

CEO, IBC Shell

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