Management Practice Insights
DOI: 10.59571/mpi.v2i1.2
Year: 2024, Volume: 2, Issue: 1, Pages: 6-10
Original Article
Janakiraman Moorthy 1, Ashita Aggarwal 1
1 Professor in the Marketing department at SPJIMR
Correspondence
Received Date:26 December 2023, Accepted Date:06 March 2024, Published Date:29 March 2024
As the global product packaging market is predicted to soar to $1.1 trillion in 2024, the challenge for retail marketers is “How I can make my packaging stand out on a retail shelf?” 1 And a related question, relevant for all packaged products, is “Can my packaging help not only increase customer acceptance, but also a customer’s willingness to pay?”, implying that the product can command a premium. Recent research by Lan Anh N. Ton, Rosanna K. Smith, and Julio Sevilla suggests that for most product categories, packaging simplicity enhances a customer’s willingness to pay, as it emphasizes perceptions of quality, purity or other benefits.2 However, the research also uncovered an exception to the rule: consumer-indulgent products. This essay provides cues for marketers, branding managers, market researchers and senior sales managers who want to enhance customer perceptions and improve their price premium.
Keywords: Marketing; Branding strategies; Consumer perception; Packaging; Retail marketing
1PlasPack, “What Does 'Packaging Is a Silent Salesman' Mean?,” Flexible Packaging Solutions - PPC Flexible Packaging (blog), July 5, 2022, https://plaspack.com/plaspack/what-does-packaging-is-a-silent-salesmanmean/.
2 Lan Anh N. Ton, Rosanna K. Smith, and Julio Sevilla, “Symbolically Simple: How Simple Packaging Design Influences Willingness to Pay for Consumable Products,” Journal of Marketing, July 22, 2023, 00222429231192049, https://doi.org/10.1177/00222429231192049.
3 Sean Walsh, Sean Walsh, and Walsh, “The Future of Global Packaging to 2028,” Smithers, December 22, 2023, https://www.smithers.com/services/market-reports/packaging/the-futureof-global-packaging-to-2028.
4 Walter Isaacson, “How Steve Jobs' Love of Simplicity Fueled A Design Revolution | Arts & Culture| Smithsonian Magazine,” September 2012, https://www.smithsonianmag.com/arts-culture/how-steve-jobs-love-ofsimplicity-fueled-a-design-revolution-23868877/.
5 The Yebo Group, “How the Tiffany's Box Redefined the Standard of Luxury Packaging | The Yebo Group,” March 30, 2021, https://www.customboxesandpackaging.com/blog/how-tiffanys-boxredefined-the-standard-of-luxury-packaging/.
6 Shubhranshu Singh, “Simplicity Is Important To Win The Market - Forbes India Blogs,” Forbes India (blog), accessed February 5, 2024, https://www.forbesindia.com/blog/marketing-and-branding/simplicity-isimportant-to-win-the-market/.
7 Christine Moorman, “Why Apple Is Still A Great Marketer And What You Can Learn,” Forbes (blog), January 12, 2018, https://www.forbes.com/sites/christinemoorman/2018/01/12/why-apple-isstill-a-great-marketer-and-what-you-can-learn/.
8 IKEA Museum, “How IKEA Took Flatpacks to a Whole New Level,” WordPress På Azure (blog), accessed February 5, 2024, https://ikeamuseum.com/en/explore/the-story-of-ikea/flatpacks/.
9 IKEA Global, “IKEA to Phase out Plastic from Consumer Packaging by 2028,” IKEA (blog), November 23, 2021, https://www.ikea.com/global/en/newsroom/sustainability/ikea-to-phase-outplastic-from-consumer-packaging-by-2028-211123/.
10 Jennifer Bailey, “27 Chocolate Packaging Designs Delicious Enough to Devour,” 99designs (blog), October 4, 2021, https://99designs.com/blog/creative-inspiration/chocolate-packaging-ideas/.
11 Steven Begley and Angus McOuat, “How Retailers Can Turn Private Labels into Powerhouse Brands | McKinsey,” October 30, 2020, https://www.mckinsey.com/industries/retail/our-insights/turning-privatelabels-into-powerhouse-brands.
12 Vinyasa C., “(24) "Design Not Just What It Looks like and Feels like. Design Is How It Works.” — STEVE JOBS,” accessed March 5, 2024, https://www.linkedin.com/pulse/design-just-what-looks-like-feels-howworks-steve-jobs-chalasani-zds9e/.
© 2024 Published by SPJIMR. This is an open-access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/)
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