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September 2011
Smart Packaging: A Whole New Level of Engagement

Smart Packaging: A Whole New Level of Engagement

by Ted Mininni – President/Creative Director, Design Force, Inc.

Packaging is rapidly evolving. Technology advances enable greater engagement between package (brand) and customer. Sounds good, but why should consumer product companies bother with the time, expense and development involved in smart packaging? Is it a fad or a gimmick? Not likely.

Our society is more mobile than ever and always in touch, thanks to iPads, cell phones and Blackberries. They help communicate, inform and entertain. Around the world, consumers are connecting at every point of the day and night. Consumer product companies with web sites are open for business 24/7.

Web sites, advertising and social media drive consumers into retail environments. Then what? Consumers are confronted by a myriad of products in every category. Brands exist in ultra competitive conditions; they’re vying with more rivals than ever, including store brands. How to stand out and differentiate? Packaging. It’s imperative that brand assets are maximized on existing packaging; if they’re not, it’s time for a refresh. When every visual cue is in alignment with the brand: color, graphics, imagery, typography, package structure and communication, what else can be done?

Smart companies are upping the ante. Tapping into the customer’s yen to engage, savvy brands are delivering products in smart packaging and that adds brand value. The customer is using new media so those brands that develop the potential of this engagement platform are more relevant in consumers’ lives.

New cell phone apps make it possible to scan 2D bar codes on packaging. The beauty of QR (quick response) 2D codes: the customer can download information to help guide a purchase decision. Special apps on mobile devices enable consumers to answer a few simple questions, or click choices on a simple needs list so that an exact product match can be quickly and easily found. No guesswork.

Think of the implications. Food and beverage companies can supply information on sourcing, nutritional issues and dietary concerns for customers. They can get out in front of safety issues and answer important questions to help allay consumer fears. Ditto for pharmaceuticals. Toy brands. Household goods. Electronics. And what’s the value of being able to download money-saving coupons to use on the spot in any consumer product category?

HealthFocus International found in a recent survey that 45% of U.S. shoppers say food manufacturers should be required to disclose calories, fat and sodium content on packaging front panels. Reason: they want to make better-informed choices. While key selling points usually appear on package fronts, why not provide more detailed information via QR bar codes?

Marketers might also initiate feedback and communicate directly with the customer. There’s nothing like knowing what’s on customers’ minds when they’re actually shopping for products.

Seeing what kinds of information customers are downloading, and getting their feedback is priceless. How much better is this than focus groups? Why not ask customers what they’re looking for? What they like about the products as well as what they’d like in terms of additional benefits? All while shopping! Make it easy for them to answer simple questions or post comments.

Businesses of any size can provide rich content, special promotions, coupons, contests and games (super idea for kids’ toy packaging or entertainment-oriented products). Think how smaller and mid-size companies can gain significant advantage using smart apps on packaging before some of the largest category players do. There’s nothing like being small and thinking big; nothing like being more nimble with new technology advantages before large competitors can mobilize due to multiple management layers and longer decision making processes.

Less expensive alternatives to 2D bar codes are available. Snap Tags are app free. The brand identity on packaging becomes a mobile portal to changing, engaging content that enables conversations between brand and consumer simply by snapping and texting a photo of it to the phone number that appears there. Presto: direct communication flow. Smaller brands like AC Golden’s Colorado Native Lager are using Snap Tag technology.

Another interactive technology called AR wave is pretty cool. Ben & Jerry’s, for example, developed an AR program dubbed “Moo Vision” which gives consumers product info and facts in an entertaining manner simply by scanning the iPhone over the product packaging.

Adding an important new dimension like QR to packaging makes it come alive. In an age like this one, where so many brands seem alike, why wouldn’t marketers kick the customer experience with packaging up a notch for competitive advantage?

It’s simple to scan with apps readily available for download. Many cell phones already include them as part of their basic package. Research demonstrates that consumers of all ages are using them; the majority ranging from 18 to 45 years of age.

Wild Creations, a forward-thinking toy company, is in the process of adding QR coding on its packaging to help customers make informed purchasing decisions about its toys. Scans will be phone-ported to web sites where parents can see YouTube video demos and read customer reviews about the toys.

The Detroit Red Wings started including QR codes in their arena-distributed “Red Wings Today” programs in early 2010, and it’s been a big hit with their fans. Cool videos pop up when the codes are scanned. Think that won’t lead to QR codes for game, sports and entertainment packaging? Microsoft's Xbox integrates codes into product packaging, in game, and Xbox Live ads, for one. The possibilities for games and entertainment brands are endless.

Coors Light recently executed a smart tie-in marketing campaign. "Snap, Send, Score" urged consumers to snap photos of the Snap Tag logo on Coors Light packaging, sending them in for a chance to win tickets to Super Bowl XLV, an entire weekend in Dallas; and other great prizes.

S.C. Johnson & Son's Scrubbing Bubbles automatic shower cleaner features on-pack codes consumers can scan to watch a video explaining the product and how it works.

Retailers are enthusiastic about these apps. Toys R Us is using QR codes in its stores; customers receive discounts by taking pictures of various images. Gap stores developed codes to help customers choose the proper fitting jeans for their body types. Best Buy supplies consumers with product information and user reviews.

The engagement opportunities with QR bar codes are limitless. So what happens when more competitors get on the 2D bandwagon? It will challenge marketers to continue to evolve, bringing package design to even greater levels of consumer engagement, providing more memorable, stronger customer experiences. But isn’t that what innovation in consumer products and packaging is all about?

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