Why Direct to Consumer Brands Need TV Ads
Direct to consumer brands are winning market share from brick and mortar retailers – but they need the power of legacy TV to take the next step. Direct to consumer (DTC or D2C) companies have taken full advantage of paid social and paid search to bootstrap growth. The dominant digital ad trio of Instagram, Facebook and Google has allowed DTC brands to reach vast audiences on a fairly limited budget. Yet if DTC brands want to maintain or even exceed their early growth trajectory, they need to look beyond direct to consumer marketing to a legacy channel: Television. Why DTC + TV is the growth equation for brands According to data from the Video Advertising Bureau (VAB), TV spending among DTC brands is rising. The Bureau tracked Nielsen research data from 125 DTC brands and found that they spent $3.8 billion, collectively, on TV ads in 2018. The more interesting statistic, however, is this: 70% of these DTC brands were spending ad money on TV ads for the first time in 2018. Top spenders in the DTC TV ad category include prominent names such as Chewy, Smile Direct Club, Purple and Peloton, all of whom spent more than $100 million in 2018 alone. Purple, a mattress company, was particularly notable, spending $140 million after spending almost nothing on TV ads in 2017. In many cases, this was money well spent. Peloton, for example, doubled its sales to $700 million in 2018 after increasing its TV ad spend by 48%. Overall, DTC brands increased their total spending on TV ads by 60% in 2018. Total ad investment by all brands in the category reached $3.8 billion last year. What’s behind the increased spending? There’s a reason why DTC brands are pumping money into TV in unprecedented numbers: They need to scale, and quickly. DTC companies have, in most cases, validated themselves and their model within the market; now they face heightened competition from other DTC brands and traditional retailers who are rolling out their own DTC strategies. This trend is supported by changing consumer behavior. According to a study from YouGov, 64% of Internet users say that 20% (or more) of their total purchases will occur through DTC brands. Businesses are staking out territory now to capture this revenue. TV is playing a critical role in this process, as DTC brands seek to leverage its vast reach to drive viewers into the online marketing funnel, as shown by VAB data: Turo, a car sharing startup, increased online video views by 5,100% after increasing its TV ad spend. GrubHub increased its online video views by 1,100% after tripling its TV ad spend. Poshmark saw online search queries increase by 6,900% after increasing its ad spend by 8,400%. Barkbox witnessed a search query gain of 824% after increasing its ad spend by 726%. Current data also shows that viewers are receptive to this strategy. Research done by Telaria showed that DTC shoppers who are shown both linear and connected TV ads are twice as likely to buy. Overall, DTC brands are using TV to exponentially increase exposure and awareness, which results in massive increases in search interest, online engagement and, ultimately, sales. Another factor influencing DTC growth is cost. While digital advertising is still much less expensive than TV, the cost of advertising on Facebook and other platforms is rising. The takeaway DTC brands have used a digital-first approach to grow and win market share while operating on relatively small budgets. That strategy, however, is becoming less relevant as DTC brands mature. In order to reach the vast new pool of consumers outside their digital sphere, it becomes necessary for DTC brands to enter the TV market, where potential buyers can be engaged and guided to online channels. At BIGEYE, we’re experts at helping DTC companies reach their full potential through savvy media buying and strategy. We can help you scale and reach new audiences with creatively inspiring new campaigns, smart media buying strategies, and advanced audience analysis and market intelligence. Don’t hesitate to reach out to us today to learn what a truly great marketing campaign can do for your brand.
Why Direct to Consumer Pharma Ads Remain a Global Anomaly
Direct to consumer prescription drug ads are everywhere in the US — and almost unseen everywhere else. Here’s why. In the U.S., consumers are bombarded with ads for pharmaceuticals — so much so, in fact, that the very form has become a cliché (think about “active seniors” pursuing their favorite activities while a narrator rattles off a list of side effects). If you work for a pharmaceutical advertising agency that isn’t based stateside, it’s an entirely different world, however. The U.S. is the only large market where direct to consumer pharmaceutical advertising is permissible. Only one other country (the ‘tiny by comparison’ New Zealand) allows the practice — and that nation has seen repeated efforts to ban consumer prescription drug ads. Let’s take a closer look at why direct to consumer drug marketing works, and any changes that could lie ahead. The Power of Direct Advertising While direct advertisements for pharmaceuticals are now inescapable, the truth is that they’ve only been around for 22 years. The practice of marketing medications to consumers was made legal under the Clinton Administration in 1997, immediately unleashing a torrent of new advertising on the public in a previously unseen category. The rationale behind this move was simple: When people suffering from a certain affliction would see an ad for a product that treats their symptoms, they would ask their physician about the product, opening up an important dialogue about their health in the process. However, the reality hasn’t always proved so simple. When direct advertising certainly works in terms of generating brand awareness and sales, some physicians have raised objections about the role it plays in patient health. In a Food and Drug Administration survey, 65% of physicians reported feeling that direct advertising sent confusing messages to patients; a smaller number of physicians reported feeling pressure to prescribe as a result of direct ads. This has occurred against a backdrop of massive expansion in direct pharma advertising dollars. According to a Journal of the American Medical Association study, total direct pharma ad spending grew more than 360% from 1997 to 2016. The reason for that ad spend is simple: It results in sales, and lots of them. Another federal study showed that for every $1,000 pharma companies spend on direct advertising, they add 24 new patients. Pharmaceuticals supported by direct consumer ads add patients at a rate seven times higher than drugs without ads. Alternative Approaches to Direct Ads One alternative to direct pharma advertising that has gained traction in recent years is the Disease Awareness Campaign (DAC). This model eschews product-specific direct ads in favor of a less commercial advertising approach that aims to heighten awareness. Gilead, one of the world’s leading drug developers, has used the DAC approach in support of its new hepatitis C treatment. The ads encourage people to seek testing for the disease without getting into the merits of Gilead’s product. Ultimately, it is unlikely that we see a move to significantly restrict direct pharmaceutical advertising in the US. In fact, it seems likely that other nations may follow the lead of the U.S. and New Zealand and loosen regulations. The European Commission, in fact, has undertaken hearings to explore that possibility, though any approved ads would likely be much less promotional in nature than what is seen in the U.S. If you’re running a pharma brand or a pharmaceutical advertising agency, perhaps the best approach is one of moderation. Take advantage of the reach and efficacy of direct advertising, but make sure it’s done in a way that stresses awareness and maintains a sense of professional ethics. Ultimately, drug companies, physicians, and patients all need to pull in the same direction to create better health outcomes. The Takeaway At BIGEYE, we believe that a great pharmaceutical advertising agency offers its clients three things: Domain expertise, advanced technological tools, and a sophisticated understanding of the existing marketing landscape. Don’t hesitate to contact us today to learn more about what BIGEYE can do for you.
Why the Market for Pet CBD Supplements and Treats is Booming
CBD has gone from fringe to mainstream in record time — and treating pets with CBD is the latest trend. So what does this mean for pet care marketing? Step into any CVS or local convenience store and you’re likely to be surrounded by CBD-infused products. In a very short period of time, CBD supplementation has gone from a fringe concern to a full-fledged health and wellness phenomenon. Rapid growth in CBD use isn’t strictly driven by human consumption, however; many pet owners are also dosing their animals — something with profound implications for brands engaged in pet care marketing. Let’s take a closer look at CBD’s benefits, the reasons for its newfound prominence and the impact it’s having on the pet care industry. CBD 101 For the uninitiated, CBD is a non-psychoactive compound derived from the hemp plant. While CBD is a chemical component of cannabis (one of hundreds), it does not have an intoxicating effect. It does appear, however, to have health benefits. Research has shown that CBD can have a positive effect on anxiety, depression, insomnia and certain forms of pain. CBD is commonly administered in oils and gummies and can be taken orally or through the skin. Why is CBD exploding in popularity? In a word: Legality. The 2018 Farm Bill legalized the sale of CBD products across the U.S., allowing them to be widely sold in retail and online settings. Prior to this, CBD products existed in a legal and regulatory gray market. This gray market status acted as a brake on CBD growth. While there are local jurisdictions that still have regulations governing CBD, production and sale of the compound is fully legal under federal jurisdiction. This has given CBD brands and large retailers the confidence to market these products vigorously — and they’ve found a highly receptive market. Many people are seeking natural, non-pharmaceutical treatments for anxiety, insomnia and other issues, both for themselves and for their pets. Why has CBD captured the fancy of pet owners? CBD-infused pet supplements and treats represent one of the fastest-growing segments of the pet care market. CBD pet products are projected to have a compound annual growth rate of 57% over the next five years. The reason for this is simple: Anxiety, pain and inflammation are all widespread, chronic conditions for household pets. Roughly 20% to 40% of dogs presented to veterinary behavioral specialists are diagnosed with anxiety. Meanwhile, virtually all pets struggle with inflammation and pain during their final stage of life. Many pet owners are seeking an alternative to vet-prescribed pharmaceuticals. Additionally, vet care isn’t always accessible to pet owners. CBD pet products are filling this niche — and experiencing extraordinary growth in the process. What does this mean for pet care marketing? Grain-free dog food and CBD pet supplements and treats are the two trends responsible driving much of the new growth within the pet care sector. As such, both have the attention of pet care brands and pet care marketing agencies. Marketers would do well to consider the common thread between grain-free dog food and CBD treats: Both product categories offer something new and ostensibly better for pets. Today’s pet owners consider themselves to be more like “pet parents,” and they are willing to do whatever they can to give their furry children the best experiences and products possible. This attitude should be top of mind not only when marketers are creating ad messages, but also when engaged in package design, identity and other branding elements. Finding the right pet care marketing agency You can’t teach an old dog new tricks — so why bother waiting for your existing marketing agency to modernize its approach to pet marketing? At BIGEYE, we’re pet marketing experts. Whether you need brand naming services, SEO expertise or any one of our full suite of marketing services, we’ll help you create the kind of work that makes audiences sit up and beg for more information.
Pet Food Marketing: Why Millennials Shouldn’t Be The Sole Focus
Millennials are a natural audience for pet food marketing — but they shouldn’t be your sole focus. Let’s find out why casting a wider net is the smarter play. We get it — millennials are the cat’s pajamas. They represent a huge generation with a lot of buying power. Thousands of bloggers have written millions of think pieces examining why millennials are such a critical audience. And — even better — they’re huge pet lovers. So why are we going to tell you to cast your gaze elsewhere when creating your next pet food marketing campaign? Let’s find out. Why millennials should not be your sole marketing focus Millennials are the largest generation in the U.S. They own pets at a higher rate than Baby Boomers. Millennials treat their pets as proxy children, showering them with attention and expensive products. A pet food marketing practitioner’s dream, right? Sure — but that dream can quickly turn nightmarish if you develop tunnel vision. Millennials may check all the boxes in terms of a pet marketing audience, but let’s consider a few other facts: 65% of pet owners in the U.S. are not millennials. The average millennial has a net worth of just $8,000. The median net worth for Baby Boomers is $360,000. Gen X has a median annual income that’s 250% higher than millennials. Baby Boomers spend $548 billion on products annually, $200 million more than Gen X, the next closest cohort. Baby Boomers are responsible for 70% of all disposable income in the US. Millennials aren’t looking quite so dreamy now, are they? They love animals — there’s no doubt about that. Yet they pale in comparison to older buyers in terms of raw spending power. Though they haven’t been the subject of countless marketing think pieces, older Americans still control consumer spending in almost every category, including pets. That’s the financial case for diversifying your marketing approach. Yet there’s also a cultural case — and it runs in the opposite direction. Don’t overlook Gen Z…and tailor your messages to the appropriate market The same financial arguments that apply to Millennials apply doubly to Gen Z, whose vanguard are just now reaching their early 20s. Yet brands would be foolish to overlook them: They are another massive cohort with equally massive devotion to their pets. Gen Z pet ownership numbers are expected to eventually exceed those of millennials, who are already the top generation in terms of ownership percentage. Fortunately, there is lots of overlap between the two groups in terms of how they view pets. Both humanize their animals and both are willing to pay more to furnish them with the best products and experiences. However, there are some differences as well. Gen Z members are more skeptical in terms of branding messages and less likely to believe claims that products are special because they are organic or all natural. They tend to dislike overly curated branding and favor a more direct and unmediated approach, and this particularly applies to brand identity. Brands engaged in pet food marketing should also consider the desires and priorities of older buyers. Baby Boomers preceded the pet humanization trend; as such, they are more likely to have conventional notions about pet food and pet care. Older buyers are also receptive to marketing messages that emphasize how pet products will help make their own lives easier. The demands of keeping a pet are often much harder on older consumers, so it’s important that brands consider that angle of the pet ownership experience when marketing products. Finding the right pet marketing agency A smart, forward-thinking marketing agency understands the value of audience analysis. If you’re pitching to one segment to the exclusion of another, you’re hurting your bottom line. At BIGEYE, we can help you create a comprehensive pet food marketing campaign that speaks to all audiences.
How Direct to Consumer Brands Can Market Creatively
Direct to consumer (DTC or D2C) brands are capturing the public’s imagination — and also their dollars. Here’s how your brand can market creatively. The ripple effects of the Internet and social media are responsible for countless changes to the way we work and live. Yet the impact these technologies have had on business is no less profound. Today, direct to consumer brands can reach new audiences at a fraction of the cost associated with legacy marketing approaches. In order to do so, however, they need one thing: Creatively inspired marketing and advertising, supported by sophisticated technology and consumer insights. With that in mind, let’s take a closer look at three creative marketing tips for direct to consumer brands. Unlock the full potential of influencer marketing Direct to consumer brands have bootstrapped their way to growth by leveraging search tools and social media. Instead of expensive (and poorly targeted) TV campaigns, brands cultivated their audience through digital advertising and social outreach. The results have been impressive, as direct to consumer brands continue to take a larger and larger slice of the overall consumer pie. This marketing approach, when done well, comes across as more organic and less mediated. It allows brands to build a grassroots online audience of loyal fans and brand ambassadors. Influencer marketing can play a critical role in this strategy. Influencers are perceived as more authentic than legacy ads and they often already hold sway over a large segment of a brand’s target audience. The influencer economy also developed organically — it wasn’t dreamed up as some mad experiment in a Madison Avenue ad shop. Given these attributes, it makes for a natural pairing with direct to consumer brands. Growth in the influencer economy continues to be robust — 320 new influencer platforms and influencer-based agencies were launched in 2018. Dealing with influencers one-to-one can be tricky (many aren’t fully professionalized), so it makes sense to use an agency with expertise as a conduit. Focus on simplicity Consumers — and people, generally — dislike complexity. Sometimes the best marketing and advertising messages are most simple and straightforward. This is particularly applicable to direct to consumer brands. Many companies in this category have made a name for themselves (and earned substantial marketing share) by offering a simpler, better take on an existing product. Consider the example of Harry’s. This direct to consumer razor company began with a simple idea: cheap razors are terrible to use, but high quality razors are absurdly expensive. Harry’s entered the market with an excellent razor sold at a mid-range price and began stealing market share from Gillette. Direct to consumer pants seller Bonobos succeeded with an equally simple premise. They realized that men hate shopping for pants, and that most mass market pants fit poorly. Bonobos offered well-fitting pants that found a middle ground between style and comfort — and they sent them directly to consumer doors. The idea was so simple — and successful — that the company was eventually bought by Wal-Mart. This commitment to simplicity isn’t constrained to product designs or marketing opportunity. Direct to consumer brands such as Harry’s, Chewy.com, Bonobos etc. have historically kept their marketing messages simple. They offer a laser focus on the product’s core value proposition, and relay it to consumers in elegantly simple terms. Take advantage of the most powerful tools and platforms TV advertising may offer reach, but digital advertising allows you to target with precision. Direct to consumer brands should take full advantage of programmatic buying when pushing a campaign. One of the advantages a direct to consumer brand often has over brick and mortar retailers is the closeness of their relationship with customers. Because DTC brands deal with consumers directly, with no middleman involved, they have an opportunity to create meaningful personalized experiences. They also have the opportunity to collect an enormous amount of actionable data, which can help them show more relevant ads to their audiences. The takeaway At BIGEYE, we’ve got the experience and domain expertise to help you craft direct to consumer marketing campaigns that get results. Don’t wait to contact us today for more information on how we can help your DTC brand stand out.
To Target: Retail lessons learned from the Lilly Pulitzer collab.
Bonafide “Lilly Lovers” arrived in droves in the wee hours of the morning. Decked out in shades of varying pastels, they came, they shopped, they conquered. A lucky few were even fortunate enough to walk away with coveted pieces from the recent Lilly Pulitzer for Target collaboration. Others returned to their local stores’ packed parking lots – many after waiting in lines reminiscent of Black Friday electronics extravaganzas – without a preppy, patterned shift dress in sight. And that was just the brick and mortar side of the story. Online, shoppers set alarm clocks, filled social media group chats in anticipation, and highlighted favorites from the pre-launch release of the Lilly “look book” at Target.com, long before the much buzzed about website launch on April 19, 2015. The moment the site went live – at approximately 1:00am EST, a similar fashionista frenzy ensued. Admittedly, that was yours truly. In my pj’s, hardly able to sleep a wink – MacBook in one hand, iPhone in the other, trying to take it all in (and with a little dose of Lilly luck, hoping to end up with at least one Nosey Posie printed item in my shopping cart). And my lust wasn’t limited to women’s and children’s clothing – also included in the collection were a bevy of cute collectible housewares, ranging from pillows to folding beach chairs, and oh, did I mention cosmetic cases? So, why all of the hullabaloo surrounding an existing brand’s capsule collection? Moreover, why the unbridled excitement for a brand that was founded six decades ago? AdWeek hit the nail on the bow-adorned head when it comes to retail lessons learned, “Target may have partnered with high-end brands in the past, but Lilly Pulitzer is the first old-guard, social-register brand to sign on, and that makes a big difference.” You’ve got that right. It might just be the brand’s iconic status, and Jackie Kennedy-inspired longevity that actually helped to generate the social buzz to begin with. While some fans – many willing to pay full price in a retail store – were none too pleased at the thought of their treasures potentially “degrading the brand” with a wholesale-style partnership, most “bargainistas” rejoiced wholeheartedly. In case you find yourself scratching your forehead in full-on preppy puzzlement, here’s a little backgrounder on The Lilly Story. Pulitzer, the brand’s founder and namesake was a prominent socialite who, in 2013, passed away as an heiress to the Standard Oil fortune, after first marrying into the renowned Pulitzer publishing family. According to AdWeek, Pulitzer found herself, “stranded and bored in her Palm Beach manse in 1959, and decided she needed something to keep herself busy, so she opened a fruit juice stand on Worth Avenue. To hide the stains from the oranges and grapefruits she was squeezing, Pulitzer found some colorful cotton prints and made a shift dress from it.” And there you have it: a fashion success story is born. Palm Beachers embraced the printed frocks, the brand soon expanded, resulting in store openings throughout South Florida, and eventually spreading across the East Coast. Shortly thereafter, Jackie O was photographed in a custom Lilly, only further catapulting the company’s popularity. Return to current day, and “Pink Sunday” as it was affectionately labeled, and the marketing success of the Lilly for Target collab just simply cannot be underscored. According to Roy DeYoung, senior vp of creative strategy for PM Digital, “History is the reason people lined up—they want the Lilly Pulitzer at a good price, and they know it’ll be good, if not exceptional quality, with Target for the price point,” said DeYoung. “But they also know it’ll go fast. Target makes an event out of doing these deals and collaborations every couple of years, and to sell out like this, it’s a circus.” Cue the “under the bigtop” theme music. Starting with the initial online reveal via Refinery 29, and culminating with the aforementioned “look book,” Target rounded out the juggernaut with a commercial spot featuring “the most lavish pool party ever, complete with the likes of Jay Gatsby.” Take a gander at the commercial – (featuring Chris Noth, or Mr. Big for all you SATC fans) – here. I mean honestly, who wouldn’t want to attend a lavish Lilly shindig…or at least look perfectly polished and impeccably dressed like the attendees? Given the buzz, not only did fans line up by the hundreds outside of Target locations nationwide, but racks were emptied in mere minutes. Those waiting in the wee hours at home in their jammies didn’t fail to disappoint either. As a result, the company’s website was not equipped to handle the mass hysteria of online traffic, inaccessible just moments after the mere early leak of links to merchandise went viral. Feverishly clicking on anything and everything that they could (present company included), frustration peaked quickly – and spread voraciously – across social media circles, forcing the retailer to issue repeated apologetic tweets to the frantic masses. With such an overwhelming response – most certainly any retailer’s dream come true – the hot pink elephant in the room is definitely whether or not the laws of supply and demand apply for a limited edition, capsule collection. Is the budgeted retail marketing build-up and buzz worth the potential to upset shoppers (many of whom possess money to spend) when limited product supply leaves so many empty-handed, – making it more the norm that the exception? With no limit to the number of items a consumer was permitted to purchase, the only restriction for Lilly for Target shoppers in this case included a limited 14-day return policy for pieces from the collaboration. According to USA TODAY, this reaction is not atypical of past collabs, as items included in these “for Target” collections are often seen as collectors’ items, fetching more than double the regular retail price on auction sites such as eBay. Not so coincidentally, when Target launched its Missoni line in 2011, the Italian designer’s fan base reacted in
Differentiation and retail consumer packaged goods design
With great packaging, comes great power. We may have butchered the Spiderman quote just a bit, however when referring to retail consumer packaged goods design, these truly are wise words for a brand to live by. When analyzing consumer behavior, and contemplating the all-important psychology behind a buying decision, it might seem relatively obvious, but prospective consumers will tend to notice a product’s packaging first; and arguably, a product’s packaging is just as important as the product itself. I can’t tell you the number of times that I’ve willingly skipped over, or perhaps even overlooked, a potentially great product, simply because the packaging seemed inefficient, cluttered, or just didn’t catch my eye. As the old adage goes, we shouldn’t judge a book by its cover – but if it saves me money, and prevents the opportunity for me to unknowingly taking home an inferior product, I’ll likely stick to my gut, and the lasting first impression of a brand as it’s been initially instilled in my brain. And did I mention that if delivered in a manner that is enticing enough to match-up with a product’s perceived value, it’s hard to resist temptation? Many retailers are well aware of this game – and have it completed mastered – although some have taken heed of how to maximize the effectiveness of retail consumer packaged goods design concepts and strategies. Keeping this type of compelling design in mind, nearly every aspect of a brand’s packaging must be determined by the brand’s overall identity. The game-changers in the field of retail consumer packaged goods design are those who know how to sufficiently intertwine the presentation of how the package and product should appear to the eligible consumer. Think about this example from Silicon Valley: Apple has practically made unboxing a new iPhone an art form, likely because of the sleek, minimalistic packaging – no pesky plastic to break apart or cardboard to cut – and this is reflective of the iPhone’s sleek design and uncomplicated interface. It’s just so much fun opening that clean, white box with the expectation of what awaits. While it may not be your first iPhone, the attention to detail and extent to which the package becomes a part of the buyer’s brand experience is undeniable. And while enjoying the sheer bliss of unwrapping my iPhone 6 Plus earlier this year, I couldn’t help but ponder the fact that I’ve been a long-time customer of the Apple brand, and the experience – as matched appropriately with the functionality and capabilities of the mobile device – keep me coming back for a newer model year-over-year. While possessing some degree of retail consumer packaged goods design differentiation undoubtedly has its benefits, attaining the iconic status in packaging that retailers Apple and Tiffany & Co. have mastered, and as mentioned in our previous blog, doesn’t happen simply by chance. [quote]Achieving such branding perfection begins in large part with the presence of strong brand identity, a dose or two of creativity – and immense knowledge of your ideal consumers’ expectations. (And capitalizing on those expectations.) At BIGEYE, we’ve compiled three key tips to consider when developing your own captivating retail consumer packaged goods design concepts, in an effort to ensure that each has the potential to resonate with your target audience on an iconic level: 1. Know your audience. What issues does your ideal client complain about most when it comes your product type? What aspects do they praise? When seeking to create sleek, beautiful, or practical packaging, the responses to these simple questions are a thought-provoking launching point. For example, it’s absolutely crucial for make-up companies, to listen to women’s reviews on products – especially on packaging. Studies prove that women are almost overwhelmingly turned off by the lack of a pump on a foundation bottle, regardless of the product’s quality; while in other instances, women have reportedly – and more often than not – impulsively purchased expensive lipstick simply because the tube was gilded and gorgeous – with an often prominent logo. Listening to what your consumers both need and want from retail consumer packaged goods packaging design can honestly make or break a perfectly great product – even if the vibrant shade of said lipstick is undeniably perfect for the season. Madame Coco Chanel, I’m talkin’ to you. 2. Give experiential packaging a try. While not conceivable for all products, the consumer’s experience with a product’s packaging doesn’t have to come to an abrupt end when the item has been successfully taken out of the box. HBO’s dark-humored drama, Six Feet Under, released a beautifully designed “complete series” box set a few years back that corresponds with the show’s somewhat grim subject. A tad tongue-in-cheek, the top of the boxed set features fake grass and a grave marker, displaying the name of the series and the date it began and ended, while the sides of the box resemble dirt. Taking it one step further, the box containing the series’ DVDs stands at 6 inches tall. Equally creepy and stunning, the smart design correlates with the show itself (and doubles as outstanding Halloween decor). Take a look at how BIGEYE took an established coffee chain, Barnie’s Coffee, and modernized their packaged goods design. 3. Explore the benefits of going green. Research proves that it’s often worth it to ensure that your brand is perceived as “earth-friendly.” Nielsen’s 2015 Global Survey on Corporate Social Responsibility shows that 66% of global online consumers across 60 countries are willing to pay more for products and services from companies that are committed to positive social and environmental impact. What does this mean for your brand? It’s simple: packaging a product in recyclable, reusable, or sustainable container is a consistent reason for consumers to choose your product over a competitor’s. For this reason alone, socially conscious initiatives are not only beneficial to Mother Nature, but might also prove lucrative to your bottom line. And admit it, that’s a real win-win. Truth be told, whether a
Iconography and retail consumer goods package design
Ever taken a moment to really think about the goods and service we use everyday? How about the retail consumer goods package design of the products we embrace most frequently? If you haven’t guessed it, we are a highly visual and emotional species. It’s a hugely interesting exercise to contemplate why we’re driven to make certain purchases, and to have preferences and leanings toward specific brands. Well, the choices we make are due in large part to the look and feel – the tangible presentation elements – of our favorite products, and the emotions they evoke within us as consumers. [quote]Our product-buying decisions, and a significant portion of that emotional response, come from the invaluable art and science of effective retail consumer goods package design.[/quote] Our product-buying decisions, and a significant portion of that emotional response, come from the invaluable art and science of effective retail consumer goods package design. Here at BIGEYE, we’ve decided to take a look at some of the most iconic, recognizable retail consumer goods packaging, and what makes each so highly memorable – and hugely popular – among the buying public. Tiffany & Co Typically, sales packaging like a box holding a new necklace wouldn’t garner much attention. I, for one, usually rip open a package without any hesitation (or ladylike grace) if I’m expecting some glittery, golden goodies. However, it doesn’t take a novice to note that Tiffany’s robin egg blue box is almost as valuable as the jewelry it contains. The coveted box, wrapped up in a luxe satin ribbon, has inspired wedding decorations, cakes, and centerpieces – the company even has it’s own blue box charm that sells for $250. In fact, empty boxes have even been known to be hot commodities on eBay and Etsy. The distinct color, some say, was chosen because turquoise was a popular jewelry color at the time, although no one is entirely certain of its iconography. In any case, the robin’s egg color (also known as No. 1837, representing the year the company was founded) is instantly identified with Tiffany’s; while the box still says Tiffany & Co., it certainly doesn’t need to. And for those of us who obsess over the origin of specific colors from a design aesthetic, Leatrice Eiseman, executive director of The Pantone Color Institute, says, “It evokes positive thoughts and reactions, and this, combined with the status that Tiffany has assigned to it, makes for perfect packaging.” Our inner-gemologists would tend to agree. McDonald’s McDonald’s. Mickey D’s. Nothing seems to instill excitement in a child at dinnertime quite like a McDonald’s Happy Meal box. Perhaps it was because my brother and I were only treated to those tasty chicken nuggets and fries on special occasions (like getting good grades, or when our mother just really didn’t want to bother with dinner), but that feeling of pure joy experienced whilst waiting in the drive-thru line is something that continues to resonate with me today. And the anticipation of knowing there is a prize waiting inside that red and yellow box? That was only half the fun. While the images on the box may change, and the promotional campaigns surrounding the tasty alternatives to mom’s cooking have evolved over time, the feeling it elicits in a child still remains. At BIGEYE, we’re still lovin’ the effective use of retail consumer goods package design for our beloved burger and fries. [quote]Take a look at how BIGEYE took an established coffee chain, Barnie’s Coffee, and modernized their packaged goods design. [/quote] Amazon Box No time for a trip to the mall? Thanks to the juggernaut that is the online shopping phenomenon, our lives have become ever-influenced by the ease and simplicity of making purchases via the wonders of the Internet. As an adult, that same sense of excitement I felt when getting a McDonald’s Happy Meal is now provoked by seeing that distinctive package on my porch. While the price point of my online treasure is surely much higher than a value meal, that doesn’t prevent me from feeling the sheer thrill and delight I experience upon seeing my order arrive on my doorstep. There’s just something different about the Amazon box—and I think others can agree. In fact, the simple cardboard box with the Amazon logo is raved about so enthusiastically on Twitter, you’d think it was the online equivalent of the Tiffany box. Ponder for a moment about how that simple arrow on the side of a basic cardboard package makes you feel all warm and fuzzy inside – and how easily you can return to your computer to make it happen all over again with the few simple clicks of your mouse. Sheer bliss, indeed. Chanel No. 5 I’m not certain what people are more interested in when purchasing Chanel No. 5: the perfume, or the bottle. The sleek curved glass, single white label, and black sans serif type is modern class at its most exquisite. Beloved for generations, the design is sophisticated, timeless, and has even sparked Chanel to design a plexi-glass clutch version of the iconic bottle. Who wouldn’t want to take a little of Madame Coco – and all her finery – with them as a compliment to their favorite ensemble? Santa, are you listening? I know it’s early, but clearly, the list above covers all my “wish list” items accordingly. Based upon the examples above alone – and there are so many we’ve left off our list – it’s fairly safe to say that the the power of packaging is far more important than just practical design, although that is certainly necessary, as well. The design needs to speak to the brand advocate’s needs and emotions equally, and directly, in the effective promotion of a product to really illicit the appropriate reaction, and to positively impact buyer behavior. The end result: brand elements that fully support your overarching objectives, and perhaps even attain that iconic status we marketers revere. Looking for award-winning retail consumer goods package design
The science of retail visual merchandising and consumer behavior
Consumer spending habits – what truly drives behavior? We’re not talking about simply coercing prospective shoppers into your store, we all know (as does your bottom line) that at the end of the day, it involves so much more than the simple volume of foot traffic. Truth be told, we ALL want to compel consumers to actually transact business, which comes down to exploring the science behind those all-important strategies and proven effective retail visual merchandising techniques that will generate an uptick in sales. Here’s the million dollar mystery: how do we captivate customers and capture their attention in a fast-paced, competitive retail landscape? At BIGEYE, a retail visual merchandising agency, our goal is to transform businesses by helping them better understand these buyer behaviors and purchasing decisions – and to design messages that reach, resonate, and compel customers to take action. This could be why I have more throw pillows than I’ll ever need – honestly, one more accent blanket and my living room could look just like the Pottery Barn display. Gets me every time. [quote]Oftentimes, when playing “psychologist” and conducting focus groups and other exploratory research, we uncover a disconnect between a brand’s ideal essence, and the in-store presence that is being communicated via visual merchandising displays – unbeknownst to the client. [/quote] When engaging with a skilled retail visual merchandising agency, our approach starts with a gap analysis to determine a company’s strengths and weaknesses inherent in its existing retail strategy. This process affords us with the opportunity to make changes that have a lasting impact on a potential customer’s decisions to purchase specific products, drilling down by factors such as color preference, price point, and a number of other characteristics. While this gap analysis serves as the initial brand “discovery,” it always leads us to the identification of areas of improvement and easy, high-impact wins (talk about two birds, one stone!). Taking this information, we then work with our clients to redefine their retail strategy. In some cases, this may mean updating the business’s brand strategy, or even embarking upon an overall rebranding process. Then, we look to actual retail visual merchandising services, and identify tactics we can use in order to drive success. Here’s one way to break down our approach: identifying tangible and intangible techniques that we may use to better implement and stimulate customer interest in the specific products being sold. With tangible techniques, we’re focused on how customers are influenced by aspects such as window displays, brands, signage, sight-lines and other clear, visible aspects of the design – elements that as a retail visual merchandising agency – we’re able to control. The intended results of our efforts include altering these techniques, and making ongoing revisions to continue to both compel, and to draw in more customers. I’m an uber-savvy consumer, too, and as a result of a number of these strategies being implemented in-store, I find that one minute I’m just looking, and next thing I know, the sales associates are offering to help me carry my overfilled shopping bags. It’s okay to admit it – you know you’ve been there, too, right? Proof positive that using tangible techniques simply works, albeit when implemented correctly, of course. For the tangible, we emphasize those tactile aspects of building displays that will capture our customers’ attention. To highlight the winter campaign for London-based men’s clothier, Ben Sherman, images of London at night were used as large format backdrops in the store’s windows, featuring twinkling LED lights, capturing the Christmas spirit in a dreamy and luxurious way. Additionally, Hostem, another London clothing store featuring progressive Japanese brands, accentuates their avante-garde fashion through the use of visual merchandising. The impressive (and award-winning) displays are always unique, yet fitting to their aesthetic; using items like vintage church pews, ladders, old beer kegs and cases – even a Chesterfield sofa from the 19th century. It is this use of visual merchandising that truly allows shoppers to experience complete immersion of the brand when walking through the store. On the other hand, when it comes to intangible techniques, we’re looking into the deeper psychology of how people react to certain stimuli – all of which are impossible to touch. For instance, we may look at customer influence via the senses (sight, touch, taste, smell and hearing), reactions to combinations of color and light to create visual effects, and the use of furniture to create social familiarization. For instance, many stores employ specific scents, think warm cookies fresh out of the oven – all in an effort to elicit a sensual consumer response, where shoppers are “hungry” to spend more. In addition, offering samples of products – food, perfume, or even makeup – may entice a customer to purchase the specific goods and products being promoted. Through the exploration of intangible techniques, we take a more theoretical approach to consumer behavior, based upon plenty of inferences, and supported by detailed, qualitative data. This is why I’ve yet to enter a Target and leave with only the items I planned to purchase – see, once again, the power of psychology is at play. The benefits of partnering with a retail visual merchandising agency are tenfold, and through our exploratory research and based upon client implementation and testing, we’ve uncovered that both of these types of tactics have the potential to have significant positive impact on your bottom line. In research done by IJESIT on the effect of visual merchandising, 85% of the study’s participants agreed that color, lighting, ambience and attractive visuals (and we mustn’t forget welcoming scents, as in the prior home-baked cookie example) make them spend more time in store. In applying both tangible and intangible tactics, we are able to create cohesive retail displays that generate an emotional association with a brand’s target customers. Be it the individuals who prefer the heavy discounting of “sale” goods, or the power of a stunning display that seemingly – and rather inexplicably – compels a person to buy, BIGEYE‘s
Creating effective retail visual merchandising displays
When it comes to retail strategy, the companies that are, indeed, “getting it right” understand the importance of effective retail visual merchandising displays. These are the oft-admired businesses that attract attention by partnering with merchandisers, designers and artists to conceptualize immaculate displays that garner attention – even from far away. Think of it this way: with a penchant for specific brands, and if given the option, most consumers would typically choose to work remotely from their local Starbucks location, versus setting-up shop inside a Dunkin’ Donuts. Why, you ask? Well, it’s a fairly simple concept when you think about it. Starbucks stores have a connotation with the promotion of calm productivity; from the artwork hanging above the tables, to the light strumming of latte-friendly background music, the coffee retailer upholds its vision through and through. In contrast, the “America runs on Dunkin’” brand, (while also incredibly strong), caters to the on-the-go coffee drinker, and it’s fairly apparent in the brand’s visual merchandising, as well. Although these two companies center a majority of their promotional efforts around coffee shop marketing, and despite having a hugely similar product, the associated consumer messaging is starkly different for each brand. As a result, both have proven, successful approaches – appealing to their respective target consumer for pretty obvious reasons: speed and convenience, or relaxation and comfort. That certainly doesn’t dilute the value of a caramel-drizzled cup o’ joe, now, does it? So, what’s the “secret ingredient” to retail visual merchandising success? While there really is no secret formula to ensure that a brand’s message will effectively resonate with the wallet-toting, Frappucino®-loving consumer, one of the most critical – and often most powerful – elements when delivering messages via in-store channels is to ensure that displays contain two critical elements. They must be both aspirational, while also maintaining a company’s ability to deliver on its brand promise. In other words, the customer must feel as though the brand’s commitment is being fulfilled – be it a steadfast promise to adhere to service quality standards, the caliber of the ambiance of a store’s location, or to product innovation. When she purchases from your company, she must feel as though your retail strategy falls closely in line with the overarching brand strategy. Interestingly, this is why companies like Hollister go for the “California cool” approach by enlisting the use of surfboard displays and Yellowcard on their music playlist. On the flip side, and completely on-brand, the backlit displays in Chanel stores elicit a certain degree of elegance and posh. Ideally, these messages will subliminally permeate throughout the brand’s media mix, initiating a comprehensive customer experience that begins with the consumer’s initial impression, and maintains the same – or heightened – levels of engagement throughout the customer journey, and the comprehensive sales funnel. At BIGEYE, one of the greatest cross-industry challenges we see companies encounter is in crafting enticing, attractive, and compelling retail visual merchandising displays. While some brands have been known to pay lip service to the perceived potential impact that robust merchandising has on a customer’s decision to purchase, we know all-too-well that conceptualizing designs without actually taking the necessary steps to execute them properly is a futile effort. Here’s the proof in your perfectly prepared Peppermint Mocha: psychology studies have shown that impulse buying ultimately comes down to seeing a given product. Companies may actually be able to coax customers into making certain product purchase decisions based upon product displays, assembled in a manner that elicits a “can’t pass by without directing at least some degree of focus on a product” mindset. Remember the time you purchased that candy bar you didn’t need while waiting in the Trader Joe’s checkout line? How about picking up yet another coffee tumbler from the aforementioned Starbucks location you frequent? Well, you can thank science for that! In fact, Lars Perner, Ph. D and Assistant Professor of Clinical Marketing at the University of California Riverside’s Marshall School of Business, believes that the more visible the product is, the more likely it is that people will, indeed, purchase it. This, of course, is all provided that the consumer is aware of the product, and its intended purpose. (Sadly, I’m all too familiar with the consequences of that pesky candy bar on a girl’s waistline, and yet, I’ll purchase it anyway. Sigh.) [quote]Through extensive market research, we’ve seen the proven impact that the effective arrangement of a display has on consumer behavior, with the primary approach always focused around the development of a poignant theme. [/quote] Developing a dynamic proposition opens up the doors to possibility in terms of visual storytelling. Too many times, we see brands crafting displays in an effort to find as many common connections as possible, all the while, thinking this will result in an increase in product sales. Ironically, too much clutter or disorganization within the theme can cause confusion, and may actually dissuade potential customers from entering a store. Maintaining this focus on the central theme is crucial when constructing a display’s design. In New York, where companies spend millions of dollars on interactive retail visual merchandising displays during the holidays, shoppers line the streets of Fifth Avenue specifically to see the winter window displays. Light shows, music, and interactive yuletide imagery entices chilly (albeit exuberant) shoppers to enter these stores to engage with the brand – and hopefully, to spend large sums of money as they purchase gifts for friends and family. These companies have deduced that they have the distinct opportunity to sell more product, simply by showcasing items in a big and bold manner, as opposed to blending into the visual scene scape. It’s driven by an individual’s inherent attraction to this novelty, as people are impressed and excited by things they haven’t seen or experienced before. Color also has significant visual impact on purchasing behavior, so we mustn’t forget that fact. It might seem silly, however using starkly contrasting colors does, in fact, cause an instinctive reaction – likened to