To hook the impulsive, repackage

Packaging is everything, consumer companies appear to be saying. Caught in a slowdown for a while now, the players have started betting on innovative designs to drive impulse purchases.

Pepsico India, for one, believes its focus on the design front has shown results already.

“For instance, the new slice bottle, which looks like a diced mango, and the neon mountain dew bottle, which glows at night, are helping drive up consumption,” says Manu Anand, chairman & CEO, Pepsico India.

Experts can’t agree more. Going by them, the least innovative packaging can do is help in differentiation at a time  when modern trade is on the rise and even traditional kirana stores are going for open shelving.

Vimal Kedia, managing director of Manjushree Technopak, a plastic packaging company, feels 50% of a customer’s buying decision is made inside the store. “And therefore, packaging, design and convenience of a product can play a great role in prompting a customer to pick up a product. And if the consumer likes the product, then you have won a customer.”

Ever wondered why most food products – from oats to tea – come in rigid containers? It’s for better display of branding and product to woo customers, according to Kedia.

Innovative in-store promotions and display of products are all directed at the same end – drive impulse purchases.

“We have realised that most of the buyer’s decisions are made when they enter the store. As a result, innovative design, packaging and in-store promotions are a big sales driver and we plan to focus on that,” says Piruz Khambatta, chairman of Rasna.

Or take Marico’s body lotion. When the company forayed into that category, a unique design had helped it quickly establish a presence, according to a Nielsen spokesperson.

There are other benefits, too – like, a better-designed product can appear bigger than it really is. For instance, Nestle’s Cerelac, launched in a hexagonal pack with a lesser weight, looks bigger than the older, square pack.

“The new pack is being made hexagonal to make it look larger,” says an Antique Stock Broking note.

Another benefit is that it helps counter the attack from counterfeits, says Nick Talbot, global design head of Tata Elxsi, a design company. “For instance, it is very easy to replicate a glass bottle, but if you design the products differently, then the difference can be spotted very easily and this problem of spurious goods can be tackled effectively.”

Among others, Diageo has adopted innovative packaging to shield itself from local players, Talbot points out.

@Nupursays