Although advertising can be a highly effective means of communication for those consumers who are exposed to it, it is becoming extremely difficult to reach with increased media fragmentation and costs of TVCs. Advertising on TV is a very costly affair and is done only when other vehicles cannot attain the objectives.
Increase in Modern Trade
With Modern trade contributing to 20% of FMCG retail consumption in the major metros and tier-1 cities of India, now more and more consumers are scanning your products. The Indian consumers love going to malls and the consumers find the “product talking” at the store more relevant. With these changing dynamics in India, packaging is going to play a major role in the future.
For most of these consumers, packaging is the first point of contact which attracts them to the product while they scan the shelves. According to some newspaper reports of shopper research, an Indian shopper typically spends 20 seconds scanning a shelf. Research always talked about the importance of packaging and the consumer perceptions built on packaging. It is just that marketers didn’t find its relevance, as Indian retail was majorly dominated by traditional trade.
Packaging plays the biggest role in winning the First Moment of Truth (https://brandalyzer.wordpress.com/2011/09/24/google-and-pg-on-zmot/) and plays a crucial role even after the purchase of the product, Second Moment of Truth.
At the point of purchase, packaging serves a number of key functions, namely:
- Cutting through clutter and letting the consumer notice your product
- Communicating marketing information
- Stimulating or creating brand impressions
- Providing brand cues and values – safety, style, value, quality, etc.
Consumers don’t make a distinction between the product and the package. How consumers feel about the package is transferred to how they feel about the product itself. For the consumers the product is inclusive of the package. There is numerous research that shows that consumers build quality, experience, and taste perceptions from the package itself.
Multinational brands that are eager to chew up a bigger share of the Indian market are spending huge sums to carefully study the Indian consumer to bring in elements that appeal to them. For instance, the latest Kellogg cereal packaging to hit shelves has created more drama around food to make it look more appealing.
This year, for the first time in India, design outfit Desmania, under the aegis of Procter & Gamble, organised a competition for innovative packaging ideas, Packinnova 2011. The company invited students from leading design institutes in the country to submit ideas on ‘packaging for small volumes’. So, the point is clear – packaging is gaining importance in India.