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How Connected Packaging Can Boost Your Marketing Strategy

Posted By: SGK October 25, 2017

Product packaging has long lived outside of the traditional 4P’s of the marketing mix. As a refresher, those P’s consist of: product, price, promotion, and place. It’s about time we as marketers make room in the mix for the materials that keep goods safe, fresh, and protected: packaging.

WATCH: How to Successfully Implement SmartLabel

Connected package applications apply to when consumers scan a code on a package from their smartphone while in-store, and are directed to a webpage to learn more about the product. This opens up a vast opportunity for brands to differentiate with the types of experience and information they offer to consumers.

The demand for this technology may be attributed to the below factors:

Mobile access. It’s about time we start looking at packaging from a mobile-first point of view. Consumers are leveraging their smartphones as a touch point to get more information about what they are purchasing.

While PC purchases still represent the majority of online shopping transactions, technology continues to advance in the food and beverage industry; and the expectation of the consumer follows suit.

In fact, 82% of smartphone users are consulting their phones on purchases while in-store. This is driving a cultural shift in how we shop and what we expect when we’re shopping.

Cultural change. There’s no doubt, we live in a world of high connectivity. As shoppers, our baseline for what is available and the expectation of where to get that information has changed.

It is natural that the need for transparency and information moves into the world of consumer products. By catering to this need, brands can instill trust in their consumers — enabling much more flexible and dynamic delivery of content than the printed pack alone.

READ: Sustaining Print in the World of Internet Store Shelves 

C-Suite demand. C-Suite is energized by the new connectivity and changes in the industry. By moving labeling off pack and onto smartphones, brand owners could experience significant supply chain agility and savings.

To adopt a connected package strategy, an entirely new supply chain must be built to provide labeling information in a new way. Detailed product information must be collected and organized for each product — creating an accurate data record of what was printed on pack.

Skepticism of big food and big business. Consumers are skeptical whether large companies share their health and nutritional values. In fact, according to a recent Label Insights Shopper Trends survey, 98% of consumers believe it is important to consider the ingredients in the products they buy.

One initiative looking to provide those insights is the GMA SmartLabel™ — a website for brands to provide information to consumers about their products. The brand pages must be hosted for public use, and any labeling change on the pack will require a new SmartLabel™ page to be created to reflect those changes. Brand owners will need to accommodate having multiple packs with different labeling in the market at the same time.

READ: The Next Generation in Brand Efficiency, Interaction and Appeal  

By leveraging technology, connected packaging provides added transparency to enhance brand loyalty, increase purchases, and more.

As technology continues to disrupt the packaging industry and the entire marketing landscape, SGK’s Client Solutions Team is ready to help clients navigate these headwinds and optimize their marketing supply chain to allow them to respond with the level of agility required today to succeed.