New packaging technology is helping promotional marketers create even greater impact on the way people shop, says Chris Baldwin from Sodexo. PROMOTIONAL FEATURE

Technology is moving faster than ever with new ways to find, buy and redeem products popping up every day.

Not to state the obvious, but that makes technology more important than ever in driving a successful campaign — and brands who get on board with innovation can reap the benefits in terms of appeal and functionality. Great tech should make life easier, right?

Is there anything new about packaging technology?

According to the Savvy Cynics 2016 Consumer Promotions Survey Report, nearly 70% of people either look for, or are attracted by, promotional messages on product.

Clearly, on-pack promotions have traditionally played a huge role in promotional campaigns but the whole industry is now changing dramatically and with it come new packaging opportunities.

Retailers can tap into innovative packaging ideas, overcoming issues around space, design, and manufacturing to reach more customers and make an impact.

Augmented Reality – looking forwards, and up, and down….

A ‘newish’ way to take your conversation with customers to the next level is with Augmented Reality (AR). With AR, brands can boost an offer with loads of extra, fun content. Consumers simply use a zapcode to access more info from games – and competitions too.

Casper Thykier, co-founder of AR specialists Zappar, is a leader in AR technology. He says: “If you get the three Cs right, you get engagement and dwell time.”

In this case, the three Cs are:

• Context
• Call to Action
• Content

Thykier adds: “AR packaging is great for increasing frequency with your product and giving you rich data analytics, turning your physical products into a living, breathing multimedia channel you control.”

Some of the best examples in recent years include inspiration from traditional consumer promotions, fused with technology to appeal to the discerning 21st century shopper.

In 2011 Heinz used technology created by Zappar’s rival, Blippar, to grant access to a Heinz recipe book (which when you think about it is a surprisingly traditional offering.) By downloading the app and holding it up to a Heinz ketchup bottle, shoppers could view the recipes which appeared on pages as if they were on the bottle itself. Heinz used this to drive people to its Facebook page to access more content.

NFC Keeping in touch with your Customers

Near Field Communication or NFC for short is also allowing consumers to interact with brand packaging. By tapping their smartphones on the labels the tags transfer data between devices wirelessly and without data or internet required.

Potential brand applications are numerous, such as advertising, shopper activation and engagement and loyalty schemes.

Malibu recently used NFC technology to great effect as part of their #BecauseSummer campaign in September 2016. They encouraged consumers to tap the image of a Malibu sunset on select bottles, to gain access to exlusive content, as well as being entered into prize draws.

Let’s get personal…

Personalised experiences with brands have become easier than ever thanks in part to a rise in digital printing.

Brands such as Marmite, Coca Cola, Nutella and Vaseline have seized the opportunity to create fully bespoke personalisation for consumers and considering that the worth of the digital print for packaging market was valued at £10.5bn in 2015 and is expected to grow annually by 13.6% according to a study by Smithers Pira, I think we can agree this trend is set to explode in popularity.

Coca Cola’s ‘Share-A-Coke’ campaign which featured 100,000 of the most popular names printed on bottle labels around the world contributed to a 6.8% increase in Coca Cola’s global Facebook community, as well as boosting their index scores from 9.6 to 12.4 on the first day of the campaign alone.

So has digital printing reached its tipping point?

With so much potential in this approach to packaging, not to mention digital printing’s economic and speed to market advantages, it’s a proven way to engage with customers whilst remaining very cost effective, so it seems like a no-brainer to continue going forward.

As technology continues to advance and experiences with AR, NFC and iBeacon become more seamless, Global brands have an exciting opportunity to exploit ‘new-age packaging’ to create a new kind of customer experience that has a holistic focus on the creation of ‘marketing moments.’

Those brands able to find the right balance of brief, slick and seamless product interactions with their audience, will reap the most reward-  building trust, relationships and loyalty over time in the most fun way possible.

Chris Baldwin is Director of Consumer Programs at Sodexo. The Sodexo family, which includes the Promorati brands Protravel, Filmology, Fotorama and Entice, is Headline Sponsor of The IPM Awards 2017.

Fotorama, part of the Sodexo family has published a new eBook, How new technology is driving the promotional marketing industry, taking a closer look at the digital revolution and how it can help marketers influence shoppers.

The post Three key ways innovative packaging can boost a promotion appeared first on IPM Bitesize.

Price cuts are short term responses which can damage brand values, says Chris Baldwin of Sodexo. Instead, brands should build value with intelligent promotional activities. PROMOTIONAL FEATURE

With a fluctuating pound and ongoing political uncertainty, the pressure is on for UK brands who are facing potentially higher import and export costs to still offer customers value while protecting both their margins and their reputations.

Manufacturers who have already tried to compensate for the additional costs caused by the falling post-Brexit pound have faced criticism in the media and resistance from retailers happy to position themselves as the consumers’ champions. Tesco and Unilever’s row over Marmite and other iconic brands was put to bed at record speed but the issue itself looks set to run and run.

Cutting price is often seen as simple ‘quick-fix’ when trying to appear good value; but the problem with price cuts is that, unless they are part of a long term strategy aligned with the budget sector of the market, in the medium to long term, they damage a brand’s reputation and cheapen the identity as a whole. Put simply, the long-term consequence of price cuts is devaluing the brand.

Brands and manufacturers need to think instead of their long-term goals. A quick fix is very rarely the answer and will more likely create further problems down the line.

The price of loyalty

With a longer term strategy, such as a focus on loyalty, brands can instead start building up consumer engagement and retention. According to forbes.com, just a 5% increase in customer retention can boost a company’s profitability by a staggering 75%. This impressive statistic highlights just how important consumer loyalty is – and the huge value in repeat customers.

Experts say that it can be six to seven times more expensive to acquire a new customer than to keep an existing one, so the importance of loyalty is clear.

Risk and reputation

Savvy consumers will look always for value – but rarely at the expense of quality. Resorting to price cuts will only serve to cheapen a brand’s identity, creating the impression of poor quality. If a brand wants to be seen as still delivering quality products, and so drive customer interest, while still achieving margin targets, it would be far better to get clever about tapping into the consumer psyche.

Clever brands think of their objectives with every consumer campaign, whether the activity involves creating a buzz with coupons offering the opportunity to ‘try me free’ at launches, or driving repeat purchase and building loyalty with ‘Money Off Next Purchase’ offers or encouraging one-off purchases with well-aligned, inspiring prizes.

Manufacturers need to focus on what their brand associations are and offer something completely complementary to these. Something tangible like a prize or a getaway adds value to a product, balances risk and increases the opportunity to connect with the customer in further marketing and social media communications.

Sodexo’s Savvy Cynics report found that over a third of consumers interviewed were more likely to buy a product that was part of a promotional campaign, which clearly demonstrates that the potential impact of a well-planned campaign is massive.

Just the ticket

For clever brands who have researched and developed their strategy, focused in on their target audiences and settled on their key objectives, the trickiest part can be deciding which prize mechanism works best to excite and reward their customers – should marketers opt for adding value with physical prizes that have great product synergy or should they be exploring something a little more personal, like a tailor-made holiday experience?

Research suggests that the Millennial generation of consumers does find far more value in an experience than in a physical thing, with three in four of them saying they are willing to spend more on events and experiences than ever before.

Events and experiences doesn’t just mean winning exotic holidays, or dream trips to sporting events; cinema offers another tried and trusted option. Brands can partner with the latest blockbuster film via competitions offering tickets as prizes to create a real buzz around a product, while shrewd brands may also consider aligning with film in a more general sense, offering longer-term promotional activations giving people discounts on cinema tickets for example. Linking with individual films or with the cinema in general can be hugely attractive – over 70% of 16-24 year olds cite cost as a reason why they don’t visit the cinema as often as they would like.

Consumer cred: adding value

The key to keeping consumers on side is not offering them something for less, but rather something more. Price cuts and BOGOFs can only go so far before a product starts to lose value. They can also put customers off with confusing price points that seem to fluctuate throughout the year or, worse, make more consumers into promiscuous shoppers.

By keeping prices relatively stable but supporting brands with value-added promotions, marketers can maintain or even increase long term brand value and avoid cheapening brand image.

Added-value promotions also allow marketers to capitalise on a range of opportunities to raise the profile of their products, boost sales and be seen by consumers as offering something a bit extra. Clever promotional marketing campaigns can see help manufacturers align with the latest trends, whether in cinema, travel, music, sports or consumer goods while maintaining a healthy brand image.

Promotional marketing gives a brand the opportunity and environment to display its personality and drive engagement and conversation with their target shopper, or potential shopper, in a way that a BOGOF simply cannot.

Chris Baldwin is Director of Consumer Programs at Sodexo. The Sodexo family, which includes the Promorati brands Protravel, Filmology, Fotorama and Entice, is Headline Sponsor of The IPM Awards 2017.

The post Price vs. promotion: how to add value and keep credibility appeared first on IPM Bitesize.