Unlocking international growth for small and medium size enterprises in the food and drink industry starts with your natural markets. Markets that have great potential and minimal implementation challenges.
Not all the categories and products are the same and neither is the geographical position of a country nor its relationship with other nations, all of which can influence the type of markets you should aim for!
- There are 5 key advantages that can position your Company for success.
- Then, there are 10 types of markets that can enable your brand or product to get a competitive advantage for a certain target market.
If you want to know more, please read my newsletter #41 about “The 5 Competitive Key Advantages & 10 Types of Natural Markets to Export”.
In the next newsletters, I will be going deeper into the competitive advantages for each type of Market.
The next Innovation Advantage is New Packaging Solutions Markets!
New Packaging Solutions Markets
These are markets where a significant focus is placed on adopting innovative and cost-effective packaging approaches. These markets prioritize introducing cutting-edge packaging solutions not only for aesthetic appeal but also for environmental awareness, tailored to suit the consumption habits of the target market.
Packaging serves as the first point of contact between consumers and products, fulfilling a multitude of needs beyond mere containment.
From addressing varying price points to embodying brand values and ensuring product integrity, packaging plays a pivotal role in shaping consumer perceptions and driving purchasing decisions.
There are 4 drivers that packaging must address in order to meet market demands:
- Cost-Effectiveness: In markets where packaging can change size or design to address different price points, flexibility and cost-effectiveness are key. Packaging solutions such as single-serve or uni-dose formats allow brands to offer products at varying price points while maintaining profitability. By adjusting packaging size or format, brands can cater to diverse consumer budgets and market segments without compromising on quality or perceived value.
- Environmental Sustainability: With increasing consumer awareness of environmental issues, there is a growing demand for packaging solutions that prioritize sustainability and eco-friendliness. Eco-designed packaging focuses on reducing environmental impact by using recyclable, biodegradable, or compostable materials. Brands can attract environmentally conscious consumers and contribute to long-term sustainability goals.
- Aesthetics Appeal: Packaging plays a crucial role in capturing consumer attention and conveying brand identity and values. Aesthetically pleasing packaging designs can differentiate products on the shelf, evoke positive emotions, and create memorable brand experiences. Brands can enhance product visibility, brand recognition, and consumer engagement, ultimately driving sales and brand loyalty.
- Functional Usability: Functional packaging addresses practical needs such as ease of use, storage, transportation, and product protection. Packaging solutions with convenient features like resealable closures, portion control, ergonomic design, and durable materials enhance consumer convenience and satisfaction. Functional packaging can improve the overall brand user experience.
Balancing cost-effectiveness, environmental sustainability, aesthetic appeal, and functional usability is key to drive differentiation when entering a new market.
Packaging: The Gateway to Consumer Connection and Brand Identity
Packaging is far more than a protective container for a product; it serves as a powerful communication tool that conveys critical information and influences consumer behaviour.
Through thoughtful design and strategic messaging, packaging can communicate a brand’s identity, values, and promise, playing a vital role in the overall consumer experience.
Here are several ways in which packaging serves as a communication medium:
- Brand Identity and Values – Packaging is a visual representation of a brand's identity. The choice of colours, fonts, images, and materials all contribute to conveying the brand's personality and values. This visual language helps consumers instantly recognize and connect with the brand, reinforcing brand loyalty and trust.
- Product Information and Transparency – Consumers rely on packaging to provide essential information about the product. This includes ingredients, usage instructions, nutritional information, and expiry dates. Clear, accurate, and transparent information builds consumer trust and helps them make informed purchasing decisions.
- Differentiation and Shelf Impact – In a crowded marketplace, packaging is crucial for standing out on the shelf. Unique and innovative packaging designs can catch the consumer's eye, differentiate the product from competitors, and communicate the brand's unique selling proposition.
- Storytelling and Brand Narrative – Packaging can tell a story about the product and the brand’s journey. Through design elements and written content, brands can share their history, mission, and values. This storytelling approach can create a deeper connection with consumers, making them feel more invested in the brand.
- Promotion and Marketing – Packaging can also serve as a promotional tool. Limited edition designs, special offers, and QR codes that link to online content are ways to engage consumers and drive sales. Interactive packaging that includes digital elements can bridge the physical and digital worlds, providing a richer, more integrated brand experience.
Compounding Competitive Advantages
As your Product or Brand, for a specific target market, can have multiple competitive advantages and have different types of market characteristics, the more advantages your product has, the more your Value Proposition is reinforced.
Please share your thoughts on what competitive advantages your company has and in which types of markets, your brand already succeeds in!
Insightful!