Packaging and labeling

 

Have you ever payed close attention to the outside of the cereal box you purchased, to the plastic bottle containing your water or to the bag containing your chips? Often packaging is a very important part for businesses to consider when selling their products. In fact, the first exposure a consumer may have to a product is its package and label. For this reason, packaging is expensive and a vital part in marketing strategy.  A lot of time, thought and money goes into its design. A unique package and design can create a competitive advantage for any company.

 Creative.                          Unique.                                         Designs.

                               This is an example of a unique and clever spaghetti packaging design.



Types of packaging benefits:

Communication benefits: This is the information it conveys to the consumer such as directions, nutrition information and dietary. This is especially important for food products.

 

Functional benefits: Packaging can play a functional role in providing storage, convenience, protection and ensuring product quality.  

Perceptual benefits: This is the perception that is created in the consumers mind from the products presentation. Packaging, label shape, color and graphics distinguish one brand from another. Packaging increases brand recognition and can facilitate favorable and memorable brand associations. The packaging of a product can change every few weeks to reflect different themes. The changes in packaging can uphold a brand’s image in a consumers mind.


 An example of unique product packaging done by Nike…

Nike Air Max

 

 This is a shoe that has been on the market for a while however, it has always been shipped and sold in Nike’s classical cardboard boxes. Today, Nike has ditched this traditional packaging and changed to a clear cushion casing. This new casing was created by a Berlin based agency that has been known to come out with creative packaging ideas. Nike’s new product packaging is revolutionary compared to its past packaging and labeling. The clear casing highlights the shoes features very well, taking the “air” aspect of its name and literally placing the shoes in an air-tight plastic bag. The bag creates an illusion that the sneakers are actually floating in the bag and highlighting the air cushioning of the shoe. The new packaging also reduces its risk of damage during shipping. Due to less use of materials in the packaging process, the new presentation it contributes to more sustainability. 

 

Nike introduced its Air Cushioning Technology and shoe in 1979, so the air max shoe is clearly nothing new. The shoe of course has developed over the 36 years it has been out. It has gained more cushion, comfort and advanced technology has improved its performance. Although it is the same product, the new packaging does a great job at showcasing its new features. A new packaging design can change the placement of a product in a consumers mind. I would say Nike has created a favorable and creative brand association by its means of new packaging. I think that Nike’s newest labeling and packaging will have a positive effect on its sales for the air max shoe. People will probably precise and associate the new packaging with a newly designed shoe. It is futuristic and its Nike's change shoe design has finally caused a change in its product packaging. It makes me wonder if cardboard shoe boxes are now a thing of the past. The new plastic bubble could easily become a new norm, with Nike setting the precedence.

 

 

Cited...

(front shoe) https://www.google.com/search?q=nike+air+max+logo&noj=1&site=webhp&source=lnms&tbm=isch&sa=X&ved=0CAgQ_AUoAWoVChMIlPHHyf-SyQIVhtUeCh1q2w7h&biw=1778&bih=837&dpr=0.9#imgrc=qIMUkhxjBbCkwM%3A

 (back shoe) http://www.nicekicks.com/2013/06/19/nike-air-max-packaging-by-scholz-friends/

(unique packaging) https://www.google.com/search?noj=1&biw=1778&bih=837&tbm=isch&sa=1&q=creative+packaging+spaghetti+ny&oq=creative+packaging+spaghetti+ny&gs_l=img.3...2979.4049.0.4405.3.3.0.0.0.0.108.250.2j1.3.0....0...1c.1.64.img..3.0.0.aozc58guU0I#imgrc=F7CNA74ScB5VvM%3A

                            

                             110-years, of luxury and quality.
                          How do they price their watches?



The price must be “right”

Pricing plays a unique roll and is very important for a business. The price must be “right,” that is the consumer must be willing to pay the stated amount while the business simultaneously generates enough sales dollars to cover its expenses like development, marketing and production. The business aims to not only cover its expenses but generate a profit. The price of a product will influence a consumers’ view of both quality and value. Often times, a higher price is correlated to a higher quality. A consumer will judge the worth of the product relative to substitutes that satisfy the same need. If a product is perceived as having more value at the higher price compared to the others, then the consumer is willing to pay the price…So how does a company like Rolex price their products?

 

  Prestige Pricing

Rolex is a luxury brand that sells watches that are quality and aim to give the consumer a specific social status. For this reason, there pricing strategy is pretty unique. Prestige pricing is what Rolex uses, it means setting a high price so that quality will be perceived and attracted customers to buy it. Rolex watches are a luxury item and therefore sell at a very high price. They are exclusive and Rolex differentiates its watches from others on the market by its high price.  These watches attract status-conscious consumers looking to set themselves apart from others. It is seen as a reward for success. Owning a watch like this shows others that you have "made it."  The quality of a product can be associated to things like craftsmanship, parts, safety and time. A Rolex watch offers a unique look and craftsmanship that people want and are willing to pay for. These watches support the feeling of self-worth and status. The product's main attribute of exclusivity appeals to customers.

One side note, prestige pricing should not be confused  with ‘skimming.' With prestige pricing, the price is always set high throughout the life span of the product while skimming would entail a new product set at a high price that is eventually lowered. With a luxury item, lowering its price or offering discounting would actually have a negative impact. Overall, this would lower sales long-term and risk the reputation of the brand name. The credit and quality associated would disappear.

 

 

 

“Rolex is not in the watch business. We are in the luxury business."

-Heiniger (former CEO)

 

 

How do they reinforce their image of prestige and uniqueness?

Rolex has many promotional tactics that reinforce its image. For example, Rolex appeared in nine of the James Bond movies. These movies are a perfect promotion for Rolex, showing its exclusivity. James Bond is portrayed as someone who uses only the best and highest quality. In addition, Roger Federer also wears and endorses the brand. He often puts the watch on when receiving awards after a match. Roger is not only associated with his amazing tennis skills but also with his class, polished look and prestige. The watches of Rolex are easily recognizable and have been relatively unchanged throughout its years. By Rolex portraying its image through advertisement and its long history, it has been continuously successful with prestige pricing. Not all companies can exceed with a pricing strategy like this but Rolex has found its place in the market  this way. Rolex has developed a customer base that is willing to pay the price of these watches, as they believe they receive not only a quality watch but an increased self-image.

  

 

 

 

 

 

Cited:

 (007) https://www.pinterest.com/pin/469007748671106803/

 (Rolex gold) https://www.google.com/search?q=rolex+watch&biw=1778&bih=837&source=lnms&tbm=isch&sa=X&ved=0CAcQ_AUoAmoVChMIgcWBgsyNyQIVSaw-Ch0FGwRh&dpr=0.9#tbm=isch&q=rolex+watch+advertisement&imgrc=c2s5ZJFA-F8iEM%3A

 (roger) https://www.google.com/search?q=rolex+watch&biw=1778&bih=837&source=lnms&tbm=isch&sa=X&ved=0CAcQ_AUoAmoVChMIgcWBgsyNyQIVSaw-Ch0FGwRh&dpr=0.9#tbm=isch&q=rolex+watch+advertisement+roger+federer&imgrc=nPN2YLicmyLILM%3A