Studies show that packaging of products can increase customer satisfaction, increase visibility and set one product apart from its competition. In essence, packaging plays a pivotal role in the branding process of the product, attracting customers and providing customers what they’re looking for when they take the product home.
Functionality of Product Packaging
One of the most obvious roles of packaging is to protect the product during shipment from the manufacturer to the store selling, packaging is also a form of protection as the product sits on store shelves waiting for consumers to come along and purchase it. In marketing and market development, packaging is the “dress” on the product, which can play a role in whether the product sells in a new market or to new customers.
Product Branding Opportunities
Branding requires a consistent logo, package color, slogan and other types of visuals that differentiate a product or business from its competition. Branding is an essential part of marketing for many products and companies. The importance of branding and packaging are even more critical when a product is sharing shelf space with many other similar products. The right packaging can make a familiar product stand out, getting the customer to reach for it and choose it before looking through other options.
Communicating with Customers
Packaging can help sell the product because it provides space for sharing information about the product, such as nutritional information, usage or directions. For example, some packaging contains marketing messaging on the front to attract customers to pick it up and look at the product. In essence, the packaging can help to paint a picture of how the product benefits the customer.
When developing a product in a new market, it is important to conduct market research, such as focus groups, to determine what is appealing to the new market. For example, preferences of colors, pictures and labels on products are just a few of the advantages of packaging in marketing.
Brand Recognition Goals
Packaging also can help customers identify the products or companies they are loyal to. For example, if a local restaurant decides it wants to sell its famous salad dressing in retail stores, the salad dressing packaging and label may carry the restaurant's logo, name and color scheme. Using packaging that carries the same brand helps customers of the restaurant identify the brand when shopping at the local grocery store.
Once consumers start buying the product, packaging helps them quickly identify the product when shopping. When introducing a product in a new market, packaging can help to garner the attention of a prospect. For example, vibrant colors may prompt a new customer to stop and look at the product because of the bright colors or because the design is one she has not seen before.
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