Packaging: The Great Equalizer

What happens when mass brands and prestige brands focus innovation on packaging? Where is the value proposition?

WRITTEN BY: Marilyn Raymond, executive vice president of GfK Strategic Innovation

AUTHOR BIO: In her leadership role at GfK Strategic Innovation (formerly Arbor Strategy Group), Marilyn Raymond draws on over 25 years’ experience chronicling trends and consumer motivators as they relate to new product success in the market. Marilyn’s current focus at GfK is to help companies in all phases of the innovation and ideation process.

As many women know, good things come in small packages and the opening of such a “gift” brings instant anticipation and delight. These small gifts don’t have to glitter nor do they have to be from a lover or a friend. How many of us actually know the joy of buying a new beauty care product for ourselves? The very notion that something transformative is in that “gift” makes it a gift, but certainly the pretty package makes the great unveiling even more pleasurable.

Packaging is said to be a strong motivator for enticing trial while the role of the product itself is to deliver repeat purchases. However, with the democratization of new technologies and efficacious ingredients, the burden on the package to help differentiate and bring value to the brand is stronger than ever.

A Case for Packaging Innovation
The mass market, symbolized best by Olay, understands this paradigm better than any. Efficacy, sensorial and aesthetics benefits come together as the focus for innovation.

In the late–nineties, Procter & Gamble (P&G), introduced a sleek, new foundation package under the Cover Girl label generating immediate brand interest The WOW factor was big news. Today, Olay continues to draw new users to its mass brands through packaging. It was this brand alone that really created the “masstige” market of the past decade. Johnson & Johnson’s Neutrogena and ROC also consider packaging as vital to their growth. Even the mass retailers have brought in new private label brands with a more premium feel.

Many of the prestigious brands have moved from metal compacts to plastic and from glass jars to plastic, while the mass brands have been investing in nifty devices such as metal tubes and unique dispensers. These innovations spark interest with women who seek the latest and greatest. They also give women a chance to feel like they’re getting special treatment while watching their wallets.

Where you find the big difference is in the outer package. At the department store beauty counter, the outer package is still a blank canvas—its sole purpose to cradle the “gift.” All the messages are the responsibility of the beauty consultant. However, at the drug store, masstige brands are compelled to use their outer package to megaphone benefits. Not surprisingly, these products are literally covered in “educational” copy and nothing extraneous.

So the big question is what impact does the outer package have on the overall image of the brand? Does a blank canvas make it more “special” or does “seeing” a package that sells hope, through copy or new devices and delivery systems bring more value to the consumer? The answer likely lies with the understanding of how today’s consumer shops. How do women source information on a new product’s relevance “for me”? Many consumers, especially younger women who have grown up in a self-service society, are fine doing their own homework – be it through referrals, internet or reading the package. Others, particularly older women, still like to have experts help them make the right choice when considering new products. The actual “service” adds an element of specialness. When women find the right product, many become a little cynical about packaging that is “over the top.” It’s little wonder why Olay’s ads take on the value proposition between Olay and the $300 prestige competitors.

Certainly the advent of stores like Sephora brings a new level of complexity to brand innovation. The prestige brands cannot rely on the Sephora beauty consultant to know all the benefits within the line. So how do they message their story? However, the approachable environment allows women to feel, try and play with the product so the risk in buying the wrong “benefits” is minimized. Many women will tell you that a package, a scent or the way it feels can elevate a product from “like it” to “love it.” This is not true at mass retailers. Masstige brands can’t be tested in store and risk is implicitly part of the purchase decision. It is one reason why the price points of beauty products in mass have a price threshold. Value is all about tradeoffs and both masstige and prestige brands have costs associated with new product purchases.

In the end, it all comes down to finding a product that works for you and that when you open it every morning, you know you can bask in the “gift to me.” The sensorial benefits of the package and the product come together in delighting the individual.