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Posts Tagged ‘packaging’

Cause Marketing: Are Shoppers Caused Out?

Friday, October 12th, 2012

Have you ever purchased a product because it supports breast cancer, or because it featured an Olympic athlete, such as Ryan Lochte, on the packaging? As marketers, we must be aware of which emotions are more likely to resonate with shoppers. In today’s retail environment, shoppers must decide what promotions provide the most value. There are several different strategies that CPG marketers use to increase sales, including associating consumer products with specific causes, events or giveaways.

According to Wikipedia, cause marketing refers to “a type of marketing involving the cooperative efforts of a ‘for profit’ business and a non-profit organization for mutual benefit.” Breast cancer awareness is one of the most prevalent causes associated with consumer products. Each October, and increasingly throughout the year, marketers coat their products in pink and donate a portion of their proceeds to research. Similarly, companies that release limited-edition products surrounding major events like the Olympics also rely on the power of cause marketing campaigns to provoke an emotional response that will influence shopper behavior.

Lately, some marketers have begun to question the effectiveness of cause marketing, wondering if it is any more influential than other promotional vehicles, such as coupons. While many companies have turned to cause marketing, some marketers wonder if “cause fatigue” has set in.  Recent research indicates that as cause marketing becomes more pervasive, some shoppers are starting to consider it gimmicky and disingenuous. To address this concern, Think Before You Pink, a project of Breast Cancer Action, launched in 2002 to address the increasing amount of pink ribbon products on the market. The campaign seeks more transparency from companies participating in breast cancer fundraising, and it advises shoppers to critically evaluate pink ribbon promotions.

Additionally, while consumers do believe CPG brands’ support of breast cancer has raised awareness of the cause, recent studies indicate that shoppers are concerned that the extensive support of breast cancer awareness overshadows other important causes. One mother, whose daughter has melanoma, was quoted in a recent USA Today article, and wishes this serious form of skin cancer “got even a fraction of the attention and funding.”

Several simple steps to overcome ineffective cause marketing programs include:

  • Choose a charity for the cause marketing campaign based on relevance to the product involved
  • Choose a charity that has achieved measureable results
  • Tell shoppers what charity the brand is marketing with and why
  • Provide shoppers with information about how much money the charity will receive through the campaign and how the charity will use the funds
  • Publish follow up information after the campaign ends

Oversaturation aside, it may no longer be enough for marketers to simply attach a specific cause to their brand – it’s time to get creative! Yoplait’s effort to raise awareness for breast cancer, “Saving Lids to Save Lives,” incorporated a more personal approach that included painting one woman’s house pink to honor the four friends she lost to breast cancer. Yoplait has donated a total of over $30 million in the last fourteen years.

Are consumers really more likely to purchase something because a certain percentage of the proceeds benefit a particular cause? Or, at the end of the day, would they just rather have a coupon and/or receive a giveaway upon purchase? It may be time for marketers to reevaluate their programs and revamp cause marketing as we know it.  What causes tug at your heartstrings?

Tags: Breast Cancer Awareness, Cause Marketing, labeling, Olympics, packaging, POS Marketing, shopper behavior
Posted in Cause Marketing | 3 Comments »

Eat This or Die

Wednesday, December 7th, 2011

Coffee, wine, beer and chocolate have long been considered vices, but recent studies reveal their health benefits: Coffee cuts skin cancer risk and lowers women’s depression; beer can help women protect against osteoporosis; and red wine and cocoa antioxidants could boost metabolism and benefit the heart, respectively.

Even so, consumers should have enough sense to not overindulge in traditionally unhealthy products. But, how do they react when a study reports health claims of nutrients without an existing bias?

The overly-trusting consumer may run out to buy every product with ginger in the ingredient list after reading that it reduces colon inflammation and cancer risk. Suddenly, CPG manufacturers of ginger-snaps have some decisions to make. Should they attempt to capitalize on these claims with front-of-packaging ingredient information?

Packaging claims have been a hot issue lately, as two camps of thought sparked a great debate. The Grocery Manufacturers Association’s (GMA) “Facts Up Front” rivals the Institute of Medicine (IoM) over what should be included in front-of-package nutritional facts.

IoM believes displaying calories and a simple star rating will sufficiently inform consumers of nutritional level, while the Facts Up Front Label will present calories, total fat, sodium, sugars, and two “nutrients to encourage” for the manufacturer to choose.

These systems ultimately have the same goal: help consumers make healthier choices. But striking a balance between information overload and ease of use is key.

Time Healthland featured a University of Minnesota study suggesting that people don’t actually look at the same nutrition information on food packages as they claim. Researchers used an eye-tracking device with a group of designated shoppers to reveal which components of nutrition labels participants paid attention.

“Although 26% of people self-reported that they almost always look at Nutrition Facts labels at the grocery store, 37% of them actually noticed at least one component of the label for almost all food items,” according to the article.

But, customers seem to be unaware of which components they actually noticed. There were large discrepancies between self-reports and eye-tracking data. While 33% said they looked at calorie count, only 9% actually did. In addition, 31% reported they paid attention to total fat content, 24% said they looked at sugar content, and 26% said they looked at serving size, when in reality, only 1% studied each of these components.

It will be interesting to see if this data changes when front-of-package nutrition facts become more prominent, as they’re expected to do in 2012. Will consumers trust only a standardized system, such as Facts Up Front or IoM’s, or can CPG manufacturers continue to play up key healthy ingredients in a less structured manner?  What’s your take?

Tags: cpg, Donna Sutton, Facts Up Front, health studies, ingredients, IoM, manufacturers, nutrition labels, packaging, Retail Solutions
Posted in Ingredients | 3 Comments »

Why is My Packaging Green?

Tuesday, November 1st, 2011

Everywhere we look there is a huge shift to all things “green.” Whether it is green homes, green cars or greener day-to-day practices, the “live green” mentality is here to stay. This eco-friendly trend has also spread to the CPG industry with the introduction of sustainable packaging. And, while it is obviously a positive shift to transform our current practices to become more environmentally sound, is sustainable packaging truly sustainable?

The most recent trend in sustainable CPG packaging is to use compostable materials that look and act as a plastic but are made from sugar cane waste or corn oil. Because the packaging is derived from natural materials, it can be placed in compost recycle bins or  home compost piles. While this seems like a wonderful idea on the surface because these are natural materials versus plastic, are we now growing crops strictly for packaging? And, if so, is that a problem?

The ability to eliminate the creation of plastic and replace plastic use by natural materials is a huge step in the right direction. Even if crops are being grown for the sole purpose of replacing plastic, the ability to eliminate the need to produce an unnatural material creates a closed loop circle where a product is completely sustainable on its own (i.e. growing corn to make corn oil to create biodegradable/compostable replacement plastic materials only to compost them and start the process over).

If CPG manufacturers can piggy-back on this emerging trend and package products in compostable, green packaging, this can be used as a competitive advantage since today, many consumers are extremely environmentally conscious of what they purchase.

Many shoppers purchase soaps containing no phosphates or entire household cleaning product lines that contain all natural ingredients. For a manufacturer to have products packaged in compostable materials would open the doors to a growing population of eco-consumers while being an environmentally kind company.

As the green movement continues, it’s safe to say we will also see a significant green shift within the CPG industry. The ability to use green materials for packaging and offer those products to the masses can be beneficial for consumers and manufacturers alike, especially in a time when people are hyper-conscious about the sustainability of the products they purchase.

Tags: green, packaging
Posted in Packaging | 7 Comments »

Collaborative Shopping: Divvying up Items and Costs between Families

Wednesday, August 31st, 2011

The other day I was performing my weekly grocery shopping trip. As I made my way to the paper products aisle, I couldn’t help but notice shoppers tossing obscene amounts of toilet paper into their shopping carts. Curious as to what one would do with so much toilet paper for one household, I proceeded to ask the purpose for such an odd purchase.

I learned that the customer was not just purchasing for themselves, but instead he was participating in a shopping trend called collaborative shopping.

Collaborative shopping, or group buying, was one of the biggest Web trends in 2010 according to The Trendwatch. It is the act of buying in mass quantities and then sharing the product and cost with friends.

That shopper was buying a huge package of toilet paper which would then be split up among other families, saving each family a bundle in the process.

Those who participate in collaborative shopping are not concerned with the brands they are purchasing, but instead with the cost effectiveness it provides. It is a way for families to afford household necessities, not a deal seeking high that some couponers crave.

As more and more people begin taking part in this shopping trend, there is a potential need for retailers to start catering to this demographic and increase their packaging sizes. A few stores already carry bulk items (for example, Costco and Sam’s Club), and many collaborative shoppers turn to online sites. However, as more and more stores consider offering larger packaged options, they could draw collaborative shoppers into their stores as well.

Online stores already present a great opportunity for collaborative shoppers with a single flat shipping rate. This makes it cheaper for consumers to buy in bulk online, because no matter how much they purchase, they still pay the same amount for shipping.

As of now, those participating in collaborative shopping are usually a part of a renting community and fall into the middle-income group. Yet, with the advent of social media, the collaboration possibilities are endless. This year, we’ve already seen the first CPG company experiment with Groupon, the famed group buying website. We may begin seeing collaborative shopping branch away from just being families and friends, to purchasing together with social media followers and friends.

Tags: Collaborative Shopping, cpg, group buying, manufacturers, packaging, Retail Solutions
Posted in Collaborative Shopping | 6 Comments »

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