Everything you need to know about launching sustainable packaging in the supermarket
Theo Toering
CEO @ Bamboo Brands B.V. I FMCG Test & Learn center across Europe | We’re hiring ????
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There is nothing more painful than seeing your brand's market share drop after the launch of a new sustainable packaging. It is almost 2025: the time of emission reduction and sustainability. More and more food professionals are considering launching sustainable packaging for their brands. They want to contribute to a more sustainable world, but are reluctant because they are not sure what impact a new packaging will have on sales. This reluctance is with good reason: recent research from the Indiana University in the United States shows that 70% of all new packaging leads to a drop in sales! Fortunately, new sustainable packaging can also actually take your brand to the next level. For that, you just need the right knowledge and know-how. Are you currently involved in a sustainable packaging project? Then this newsletter is for you!
A new packaging is not always great for consumers
Before you learn how you can measure the impact on sales, it is first important to know the answer to the question: why is it that so much new packaging results in a drop in sales? The simple answer is that new packaging is not always convenient to consumers. If you dive deeper into consumer buying behaviour, you will understand why this is the case. Many consumers do their shopping on semi-automatic pilot. They mostly scan the shelves for brands and products they recognise and often choose the path of least mental resistance. Distinctive and recognisable packaging helps consumers do this. At the same time, completely new packaging can disrupt consumers' buying process. Specifically, new packaging can disrupt the buying process in four ways:
1. New packaging means consumers need more mental energy to process information.
2. New packaging can make consumers feel less familiar and less attractive.
3. New packaging makes it harder for consumers to recognise the product.
4. New packaging can negatively affect perceptions of taste and quality.
Imagine you always buy ketchup from the same brand, and this brand suddenly decides to completely change the packaging. How would this affect your buying experience? Research shows that when the buying process is significantly disrupted, most consumers switch to a competing product that they do recognise...
The challenge with market research
Food manufacturers employ many smart professionals. They know that switching to a new packaging can be risky, so they do pre-launch research to minimise that risk. For example, they use concept testing, focus groups, panel research or other research to find out whether the new packaging is liked. A good idea that I certainly support. However, there is one problem: these research methods do not test consumers' actual buying behaviour. What they do measure are their well-intentioned intentions. And that can be a big challenge when validating new packaging.
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What consumers say they are going to do and what they actually do often differ enormously. For example, many people have the intention to quit smoking, but continue to smoke despite their sincere intentions. Especially when it comes to sustainability, this ‘intention-behavior gap’ gets even bigger. For example, research by Nielsen IQ found that as many as 92% of shoppers indicated that sustainability was an important factor in their purchases. However, this study was based on what consumers said and not what they actually did.
Another Kantar study, which analysed consumers' actual purchases, found that only 7% of all purchases could be linked to sustainability considerations. This is a huge difference! The contrast between these studies shows that you cannot rely on consumers' intentions alone. Asking what they think of your new sustainable packaging is therefore not enough; you also need to measure their behaviour.
Measuring the impact on sales
You now know why most packaging changes result in a drop in sales. You also know that just asking your target audience what they think of a new packaging is not enough. But how do you measure the impact on sales before you take the plunge and launch a new packaging? An in-store packaging test can help.
During this type of research, your new packaging is placed on the shelves of a number of supermarkets. This way, the new packaging is tested against the actual (purchasing) behaviour of consumers, and sales data can be analysed. Not only can this measure the impact on the sales of your own products, but you also gain insight into the impact the new packaging has on the performance of the competition.
You can think of an in-store packaging test as a dress rehearsal for the big launch. It helps you gain insight into how your brand performs in a new, sustainable jacket. This prevents you from having to look at red numbers and declining charts after the launch and also gives you a sense of calm and confidence! ?
Test your new sustainable packaging in our network of supermarkets
Are you considering switching to sustainable packaging for your brand, but not yet sure what effect this will have on sales? Perhaps Bamboo Brands can help you further. With our network of over 400 supermarkets in Europe, we help food professionals test new products and packaging.
Want to know more about the possibilities? Feel free to contact me at [email protected].
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