It's a wrap

Done well, packaging innovations can be a blockbuster marketing strategy.

A few weeks ago, Fedders Lloyd Corp entered the home appliances segment with a range of air-conditioners, microwave ovens and DVD players. Nothing surprising about the move "" the company has built its reputation in commercial air conditioning over the past four decades and this is a natural extension.

What raised eyebrows was that in showrooms, Lloyds appliances aren't displayed in their shining white glory. Instead, you see colourful, information-packed cartons. "The packaging is different and colourful. It will catch consumers' eyes faster," declares Yadvinder Uppal, group business head, Fedders Lloyd.

This isn't an isolated example. Packaging is increasingly being considered a vital part of marketing strategy and innovations to stand out in the clutter of consumer goods are now the norm.

The crush of vacuum-sealed papad, detergent sacks with rope or plastic handles, and oil jars with inbuilt grips fighting for shelf space speak for themselves. "Earlier, packaging was the sixth or seventh P [of marketing]. Now it is as important as pricing and promotion," says Darlie O Koshy, director, National Institute of Design.

Bigger, better, brighter
You don't need to look far for the reason behind the frenetic activity and interest in packaging: organised retail is picking up pace and consumers are ever more demanding.

As big retailers expand their operations there is, literally, miles of extra shelf space available to manufacturers to display their products and vie for consumers' wallets. So packaging innovations and visual merchandising are becoming important marketing tools.

"Many companies are spending time in the aisles at supermarkets. They want to understand what packaging clicks with consumers and what doesn't work," points out Esha Anand, head, marketing and visual merchandising, HyperCity Retail.

The easiest and most common change, point out consultants, is in size. Supersize, value packs, economy packs... call it what you will, but bigger, taller packs stand out better in the sea of products. Multiple soap packs, oil in 10 kg jars (rather than the old-fashioned tins), even candy by the kilo are all innovations in response to consumer demands and improved sales opportunities.

"Modern trade has heightened the importance of packaging," says a spokesman for Hindustan Unilever. "In this format, packaging has a bigger role to play at the point of sale."

Stand up and be seen
Different SKUs are only one way of standing out in the crowd. At first glance, Lays' Stax is a me-too response to Pringles. The same tube packaging, the same saddle-shaped chip stacked inside the can. But Frito Lay played around with the inside of the package "" the chips are neatly packed in a narrow, pull-out tray that makes it easier to reach even the last chip. A clear differentiator.

When Colgate launched its gel toothpaste, it wanted to highlight the product's USP "" "active" particles. Illustrations in ads and on the box would be only partially effective. So the company worked out a transparent plastic tube for its toothpaste, and danglers in store aisles and other point of sale material that showed a toothpaste tube outside its box helped draw consumer attention as much as the TVCs.

Fedders' insistence on displaying its products inside their cartons is another, less conventional strategy. Company research before the launch revealed that consumers like to read about the features of the product. Also, in most tier II towns "" unlike in larger cities "" consumer durables are displayed with the packaging intact, to avoid damage to the product.

So Fedders decided to stick with that practice, but offer its customers something beyond the usual white or brown cardboard cartons. Lloyds products are displayed in bright orange and blue boxes; photographs of the product, all product details in short, bulleted points and other colourful images dot the cartons. "Our packaging strategy is working. It has helped us get noticed rather quickly," says Uppal.

Stay focused
Packaging innovations that are marketing or sales-driven run the risk of being dismissed as mere gimmicks. But when they address specific consumer demands, they are more likely to succeed, point out marketing consultants.

Consumer feedback on Amul Ghee showed that consumers disliked having to cut the seal and then emptying the ghee into another container. GCMMF (which owns the Amul brand) then toyed with plastic pouches but the cooperative's distribution channel pointed out that ghee in plastic pouches had a shorter shelf life and wastage due to bags bursting was unacceptably high.

The final solution? Ghee cans with pull tabs, doing away with the earlier, sealed containers. "The new packaging gives us a competitive advantage," says R S Sodhi, chief general manager, GCMMF.

Convenience was top of mind at United Spirits as well, when it launched its Bagpiper whisky in Tetrapaks. Based on feedback that glass bottles were inconvenient, United test-marketed Tetrapak, 180-ml packs that had to be cut open.

Buoyed by the success in Maharashtra and Karnataka, the company is now extending the packaging to its other brands such as McDowell's No.1 Celebration, Director's Special and Gilbey's Green Label. "Tetrapaks are tamper proof, easy to carry and dispose," points out a company spokesman.

Try buys
Everyone knows the shampoo story. Cavinkare launched Chik shampoo in sachets and suddenly, a whole new market opened up. The lesson? Priced right and packed right, people are willing to try anything. They may even stay on as customers.

Which is why when Bru introduced ready-mix cappucino, it did so in two flavours, single-use sachets priced at Rs 10. The ideal size and price for impulse buys, the pack encouraged trials and was a perfect fit with the target customer: youngsters whose coffee tastes have evolved with regular visits to coffee bars. They want the same taste, but don't want to worry about the right measures and preparation.

"Companies are making sure their packaging creates a pull on consumers. Going forward, we will only see more innovations," says Koshi.