This week we look at the importance of packaging.

The purpose of product packaging is to protect the product from damage. Product packaging not only protects the product during transit from the manufacturer to the retailer, but it also prevents damage while the product sits on retail shelves. Most products have some form of packaging. For example, soups must have a container and package while apples may have packaging for transport but not to sell the product from the produce department of the local grocery store.

Attraction

How a product is packaged may be what attracts the consumer to take a look on the product as is sits on store shelves. For this reason, many companies conduct extensive research on color schemes, designs and types of product packaging that is the most appealing to its intended consumer.

Promotion

Packaging also plays an important role for portraying information about the product. Outside packaging may contain directions on how to use the product or make the product.

Differentiation

Packaging can also differentiate one brand of product from another brand. Because the product packaging can contain company names, logos and the color scheme of the company, it helps consumers to identify the product as it sits among the competition’s products on store shelves. For example, as a shopper walks through the coffee aisle of the local grocery store, the bright orange, pink and white packaging of the Dunkin’ Donuts coffee brand may be easily recognizable for the consumer to grab on his way by the coffee shelf. The shopper may identify with the company brand, which propels them to buy the product. If the product packaging changes, it may alter the brand perception of the company, which doesn’t mean that the consumer would not still purchase the product, but it may delay the purchase until the person is able to identify the product according to its new packaging.

This weeks tip revolves around communicating with customers through newsletters. Offer customers who sign up a discount or free gift. One suggestion would be to offer as a free gift a product you have not offered for sale as a way to get feedback or advertise this product. In order to keep customers viewing your newsletter it is a good idea to place coupons or information of upcoming sales or promotions. Another idea would be to have customers register for free giveaways. Some suggest an annual giveaway while others feel a giveaway once per month or quarter works best.

The next tip from a panel of Successful Entrepreneurs deals with research and study. Their suggestion was to study your competitors, see what they are selling, watch their adds, and view their feedback. The idea is NOT to copy, but take notes, if you see mistakes or negative feedback learn from their mistakes, use the information you obtain and be creative and be proactive to trends. If you are not willing to put in the work to see what others are doing you will more than likely be blindsided and behind when the next new trend arrives.

The next tip in the series deals with defining your NICHE.

What makes you stand out?

When customers are looking for a service or product, how can you make sure you draw the attention to your NICHE?

How can you serve a specialized market?

In almost everything a customer can find multiple sources to provide them with what they need. What can you do to set yourself apart and give the customer something they cannot get from someone else? Or, maybe you just do a really good job of getting the attention of the customer and then maintain the relationship with good service along with a comparable product. Sometimes just being the first  person to supply and never giving customer a reason to look elsewhere can keep your company in the black.