|Product Profusion and Packaging|
|Subject||Assumptions, comparative statics, pros and cons|
|Key Words||Product differentiation, brand|
Package design is an increasingly important way of differentiating one's product from those of competitors. As the number of products grows, it becomes harder for consumers to make choices on a rational basis, so they rely on their emotions more. Where products are similar, color, shape, and texture can provoke positive emotional responses in consumers at the point of purchase.
Beverage marketers have been the leaders in using packaging to differentiate their products. Coca-Cola developed a unique design for its bottle. Absolut Vodka built its brand on the shape of its bottle. Now the Salon Selectives shampoo and conditioner line has moved from a mass-marketed brand status to salon-brand status with new package colors and names, such as "Rain".
Where the packaging adds functionality, the appeal to the consumer is even greater. Hence Gatorade has designed a bottle that is easy to grip, does not spill when thrown on the ground, and is easy to drink from. Now yogurt can be purchased in squeezable form, so that it can be eaten more easily without a spoon. Dentyne Ice has become the third-ranked gum, number one among older chewers, due to its repackaging in blister packs. It has been able to raise its price 79 cents a pack.
The business of package design is now worth over $100 billion a year. Firms frequently call in design specialists to help them optimize their packaging.
(Updated March 1, 2001)
|Source||Theresa Howard, "Color me popular: Marketers shape up packaging," USA Today, February 8, 2001.|
Return to the Monopolistic
©1998-2002 South-Western. All Rights Reserved webmaster | DISCLAIMER