In my previews article about why new packaging fails to drive sales I discussed how brain plasticity may explain the failure to drive sales in 9 out of 10 new packaging designs.

Neural connections are formed as we are exposed to different products and quickly get used to see them in a particular packaging (shape, size, brand logo). We know that it harder to unlearn old habits than to learn new ones, so when a new product surfaces on the shelf, we may not notice it unless the packaging is compelling enough to make us pay attention. Research has shown that contrast improves the odds of shelf visibility for a new packaging, so a contrast jolt may be needed to take us out of the rut. However, in the case of existing products aiming for a fresh look to increase sales, the contrast can’t be so big that consumers are unsure whether they are seeing the same brand, or frustrated by not being able to recognize it and find it, like it happened for Tropicana and Gatorade last year. This means that new packaging designs need to balance contrast and visual continuity in brand identity.

Existing products are not condemned to live with the same packaging in which they were born, but in order to succeed, marketers should not ignore brand expectations formed by the experience consumers have had with a product or product category. Those expectations have a physiological base in groups of neurons firing together, being used over and over, and getting trained over time in perceiving a product – its packaging, mode of use and underlying needs it meets – in a particular way.

Aside from physical attributes (i.e. shape, size, colors,  graphic elements), a new packaging has a greater chance of success in attracting buyers if it fulfills unmet needs. The Heinz® Fridge Door Fit™ bottle launched in 2006 offering storage flexibility – which increased ketchup consumption by 68% - is a good example of how packaging can drive sales. Consumers may not be aware they have this type of needs until they see a solution. In this case new brain connections sprout and with them new expectations about a product or a whole product category are born.

Of course, we know that packaging alone is not the only factor weighing on a purchase decision. Deep seated product preferences,  the shoppers’ decision-making process and attitudes and lifestyles have often a greater impact on purchase decisions than packaging.

Some consumers enter a store with a tunnel vision, looking only for the brands they are used to buy. Others, however, may shop first for the product category and then consider competitor brands within the category, specific product benefits, a particular package size or a price point. For certain products they scrutinize the product labels looking for information that helps them decide which brand to pick, while for other products, they only care about the price. Again, it is about behaviors rooted in trained neuronal connections based on experience.

Finally, there are other situational factors that could make a consumer deviate from its habitual shopping behavior: the brand is out of stock, its price increased, a friend recommends trying a new product, competitor brands are giving an irresistible offer,  and a new and seemingly improved alternative is offered for trial, among others.

Having said all this, we can’t deny that packaging is a contributing factor to brand identity. As research has indicated, it is easier to damage a brand than grow it via packaging, so getting it right is not a trivial matter. Although many new packaging systems fail, packaging research can help to increase the odds of success. To that end, marketers charged with the task of launching a new product or refreshing the look of an established brand should conduct research to:

1. Understand how consumers shop the product category and what role packaging plays in purchase decisions
2. Understand brand and product perceptions and how deeply rooted they are
3. Identify unmet needs
4. Understand how the new packaging departs from consumers’ expectations and what visual elements can be used to preserve brand identity
5. Assess how the new packaging will stand out in a cluttered environment  among competitor brands
6. Test different packaging concepts and evaluate the effectiveness of graphic elements and label information in adding uniqueness and encouraging purchase intent

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Last year PepsiCo received a lot of “buzz” thanks to a couple of marketing stumbles for two of its big brands, Tropicana and Gatorade. In both cases, the brands got makeovers that stripped their brand identity, for the sake of simplicity, and gave them a quite generic look. This resulted in confused consumers, which, in turn, hurt sales. In the case of Tropicana, after consumers’ protest, PepsiCo reinstated the old packaging with the familiar orange with the straw. But for Gatorade, now called “G,” PepsiCo continued ahead with the new packaging and label.

According to PepsiCo’s Americas Beverages chief Massimo d’Amore, who was interviewed by the WJS, in the case of Gatorade, certain level of confusion was expected, but that internal research indicated that “the ‘G’ campaign scores high in the coolness factor.”

For a while I wondered what type of research they did, who was the target sample and what metrics were used to measure success. Luck would have it that I had the chance this year to meet Jimmy Smith, the creator of the “G” TV commercials. He told me that the ads were targeting teenagers between 13 and 17 and they were looking to create buzz, which they did. I admit that “coolness” is likely to be an important driver in this market segment, but can misfire in other segments. I have proof in my own household. My husband, a fan of Gatorade and part of the 37.7% of consumers in the age group 35-44 who drink Gatorade monthly*, was certainly lost once the packaging changed. He thought that the new “G” packaging was one of Walmart’s store brands.

In July 2009, Beverage Digest estimated that Gatorade had lost a 4.5% share of the sports-drink market and its volume slipped 17.5% in the first six months of 2009 after the launch of the new packaging in January. It seems that the “coolness” factor may have worked against Gatorade’s brand equity.

So, if you ever get involved in a brand makeover or new packaging re-design make sure to do branding research that allows to measure the overall impact of the changes on the brand recognition and sales. The best approach to branding research combines both qualitative and quantitative techniques. Neither alone gives a solid answer, so I would suggest to consider following this research plan:

1. Define the problem. First, make sure it is an image problem and not a problem with the product or service. Does the brand need an updated look to attract new market segments? Does the brand elicit negative associations due to blunders from the past and need a fresh start? Does the brand need to be aligned with a new vision and mission for the company? The answers to these questions will define how much of a radical makeover your brand can afford without alienating customers.




2. Explore current brand perceptions, usage patterns, customer experience, and problem areas. This will give you a feel for the brand legacy and how much you can depart from it. Depending on your target market and budget, some of the data collection techniques you can use might include focus groups, in-depth interviews, or on-site research (ethnography).




3. Create several new brand concepts and test them. Use the results from the initial qualitative research to develop different branding concepts. Explore initial reactions to the concepts, fine-tune them, and test them again using qualitative techniques.




4. Follow-up with quantitative research. Use a large enough sample to select a winner and project the results to your target population. Define the screening criteria of your sample carefully. To certain market segments, some brand attributes may be more relevant than to others, so make sure all segments are represented to avoid biased results.

The combination of qualitative and quantitative research techniques will give you in-depth insight and a solid foundation for decision making. Don’t be tempted to only run a couple of focus groups or an online survey and feel you know everything. Conducting branding research with the right approach will pay off and prevent you from making mistakes that will hurt your bottom line.

* SMRB – Summer 2009 Adult 6 Months (Feb 09 – Sept 09)

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Packaging research shows that  only 90% of new packaging re-designs fail to drive sales. Why? Brain plasticity may be one of the culprits.

I recently attended a lecture about  brain plasticity given by Dr. Norman Doidge, author of The Brain that Heal Itself, at the Center for Brain Health in Dallas. He defined neuroplasticiy as the property of the brain to change its function and structure in response to mental experience (perceiving, motor action, imagining) and other forms of stimulation (e.g. electrical), which goes on in many levels in the brain.

Through many case studies, Dr. Doidge illustrated the incredible ability the human brain has for continuous change and great potential for providing cures. This has always been the truth, but it has taken us 400 years to recognize it because of:

1. Lack of technology to observe the changes
2. Notoriously poor prognosis for brain injury
3. The mechanistic model: mankind has had three main analogies for nature – nature as organism, nature as machine, nature as historic process
4. The plasticity paradox: plasticity gives rise to both rigid and flexible behaviors, and our rigid behaviors lead us to assume that the brain is overly rigid

The fact is that neuroplasticity is responsible for not only cures, but also for illnesses, which led me to think that brain plasticity may be one of the reasons new packaging often fail to motivate shoppers to buy. Scott Young, president of Perception Research Services, argues, in an article published in the 2010 January issue of Quirk’s Research Magazine, that the increase in shelf visibility through contrast (via color blocking, unique shapes, and strong brand identity) is the single strongest driver of sales increases.  This explanation makes sense, but only explains it from the stimuli perspective. The question still remains as to why consumers would need a contrast jolt to buy a product because of its packaging.

From the consumer perspective, we may find the answer in the core laws of neuroplasticity, which are:

1. Neurons that fire together wire together, neurons out of synch fail to link
2. Use it or lose it
3. Plasticity is competitive: trained neurons fire faster more efficient signals

When a consumer is exposed to a product in a particular packaging, connections are made in the brain so that the product is associated with that particular packaging structure (its colors, shape, and brand logo). The more exposure she gets to it, the stronger the connections become as neurons get trained, leading to a “rigid” perception of the product. Consumers may not recognize it if presented in a new package or even revolt against it, as it happened when PepsiCo tried to change the image of the Tropicana orange juice in 2009.

In order to succeed, a new packaging needs to be able to create connections by first attracting attention, but then motivating consumers to give it a second look. Through studies conducted in collaboration with Wharton and INSEAD, Young found that reexamination of a product is an even more powerful predictor of purchase.

So in order to succeed with a new packaging re-design, marketers should conduct research to find the right balance between deep rooted aspects of the brand identity and new elements that strengthen positive perceptions of the brand and create new neuronal connections. These new elements should be enticing enough to persuade the consumer to give it a first and a second look and, assuming that the product meets her needs and is affordable, ultimately buy it.

To learn more about our consumer data service visit Consumer Shopping Behavior Insights. To request consumer shopping behavior data and insights don’t hesitate to contact us.