Package design is one of the most effective marketing levers, reaching 100% of in-store shoppers at the critical moment of purchase. Like advertising, packaging not only puts forward the benefits of the product and builds equity but, when done well, it should also directly drive consumer purchase. In fact, 64% of consumers try a new product because the package catches their eye, and 41% will continue to purchase a product because they prefer its packaging. However, unlike advertising whose impact requires continuous spend, design grows sales over much longer periods of time without additional investment. A successful package redesign can yield 7x return on investment for a small brand, and even greater returns for a large brand.²
Unfortunately, many brands struggle with creating effective package designs; 90% of redesigns fail to deliver any sales improvement for the brand. Why? Across studies, Nielsen has observed that major pitfalls include limited creative exploration earlier in the process and lack of objective, consumer feedback when making important design decisions. The good news is that brands who do their due diligence see tremendous returns.
Recently, Nielsen conducted a study to understand the impact of package design initiatives completed using Nielsen Design Navigator, a creative enablement tool designed to help overcome the challenges mentioned above and to identify the most impactful designs. Using the BASES forecasting model, Nielsen’s study compared volumetric differences for in-market design concepts versus the top performing design concepts identified by Design Navigator. The results revealed impressive lifts in forecasted revenue, as well as in visual standout and consumer preference for the designs identified by Design Navigator.
Find out more about maximizing the most underleveraged marketing tool.