Personalized packaging has been a hot topic. Many may have thought it was just a passing trend, but recent developments suggest otherwise.
An increasing number of companies and brands today have started to explore the benefits of personalized marketing in niche markets that have yet to be fully tapped into.
From the sleek and minimalist packaging, a high-end line, to large-scale businesses, which offers personalized printing for businesses, industry experts predict that personalized packaging may well be the future of packaging.
If you're hesitant about investing in personalized packaging for your brand, here's something to consider: in today's market, distinguishing yourself from your competitors is more important than ever.
Personalized packaging can provide a distinctive and powerful way to achieve this. So, let's examine how customized and personalized packaging is transforming the industry.
An Overview of the Personalized Packaging Industry
As the landscape of consumer packaged goods continues to evolve, many brand owners are realizing the significance of personalized packaging.
Results from a 2019 survey conducted by L.E.K. Consulting of 250 CPG brand owners revealed that 75% planned to increase their packaging budget the following year - up from 65% in the year 2017.
The survey also highlighted that an astounding 90% of participants considered packaging to be a necessary component of their brand's triumph.
The message is clear: customized packaging is no longer just an option but a necessary investment for brands looking to thrive in a competitive market.
A survey of 335 industry professionals, including brand owners, retailers, suppliers, and agencies, found that 66% are already implementing or contemplating personalized packaging for their businesses.
What's more, a staggering 90% of these packaging specialists believe this trend will continue to expand in the years ahead.
According to an analysis by Transparency Market Research, the personalized packaging market was worth $25.6 billion in the year 2017.
The report forecasts that the market will expand at an annual growth rate of 5.1% during the projection period, reaching a value of $38.1 billion by 2025.
This indicates a significant opportunity for businesses to tap into the potential of personalized packaging and stay ahead in an ever-evolving industry.
Successful Examples of Personalized Packaging
The 'Share a Coke' campaign led by Coca-Cola is widely regarded as an effective example of the effectiveness of personalized packaging.
In 2013, the company launched the campaign with the primary objective of establishing a direct connection with customers in 32 different countries.
Coca-Cola replaced the standard Coca-Cola logo on bottles with thousands of popular names and nicknames specific to each country.
In a similar vein, Nutella embarked on a personalized packaging campaign that allowed customers to request a jar of the chocolate spread with their name incorporated into the branded label.
Unlike the Coca-Cola campaign, Nutella's approach required customers to actively seek out the special jars that featured a label on the top. To receive the customized label, customers had to use a pin provided on the jar to request that the label be shipped to them.
In 2015, Oreo also conducted its own experiment with personalized packaging. Customers could visit their website and create their own custom bags of Oreo cookies for a price of $15.
The customization options included two different designs, as well as the ability to change the colors, images, and text to make the packaging unique to the customer.
Heinz also implemented a successful personalized packaging campaign with their "Get Well" Soup promotion.
Customers could send a can of soup with the recipient's name on it to a sick friend or family member. This not only acted as a thoughtful and personal gift but also ensured that the right person received the product.
The personalized packaging also functioned as a security feature, further adding value to the campaign.
By repurposing their product in this way, Heinz demonstrated their commitment to customer satisfaction and their ability to think outside of the box in terms of marketing.
Balancing Efficiency and Personalization in Personalized Packaging
When embarking on a personalized packaging project, brands need to carefully consider the scope of their undertaking.
Have a clear understanding of the budget available and the efficient workforce needed to push the project.
To make your packaging design effective, all product variants should be available in stores simultaneously. Managing such a project requires careful consideration of time constraints, extensive planning, and sophisticated workflow management tools.
With the right approach, brands can execute successful personalized packaging campaigns that leave a lasting impression on consumers.
Incorporating Personalized Packaging Into Your Marketing Strategy
Custom packaging is not just about ensuring that the product fits into the packaging properly. It also offers an additional branding opportunity that can significantly impact a customer's perception of a brand.
Unlike advertisements, the packaging is a tangible object that customers can touch and experience.
Imagine receiving a product in a beautifully designed, branded box with a customized note included with the product.
This would provide a superior user experience compared to receiving a plain brown box with just the product inside.
The good news is that this additional branding channel comes at a very low cost, and its outreach is wider because more people are likely to see the packaging.
Customized Packaging Provides an Enhanced User Experience
The concept of customized packaging aligns with the Kano Model, which highlights the link between the product and customer satisfaction.
Think about it: it would be underwhelming if you ordered shoes online and they arrived in a plain, boring cardboard box.
However, receiving the same shoes in a personalized box with eye-catching colors, a fashion quote inside, and a thoughtful note addressed to you would undoubtedly enhance your experience.
Custom packaging provides an opportunity to surprise and delight customers, making them feel valued and appreciated by the brand.
This not only boosts customer loyalty but generates positive word-of-mouth marketing as well.
Branded packaging that enhances the user experience can lead to top-of-mind awareness, a valuable asset for business growth and longevity.
Conclusion
Personalized packaging has the potential to revolutionize consumer segmentation when executed correctly.
This new approach can also impact how packaging is designed, going beyond simply printing a customer's name on the packaging. More sophisticated methods could be explored to achieve the desired effect.
Building a strong relationship with customers is more than essential. Personalized packaging is a powerful tool that allows brands to tailor their approach and create a lasting impact on their customers.
Investing time and money into this strategy is a wise move for brands looking to increase customer loyalty and drive repeat business.
Personalized packaging has been a hot topic. Many may have thought it was just a passing trend, but recent developments suggest otherwise.
An increasing number of companies and brands today have started to explore the benefits of personalized marketing in niche markets that have yet to be fully tapped into.
