Dive Brief:
- Successful packaging redesigns can produce an average 5.5% boost to forecasted revenue, but the structure of the redesign process can prevent them from being successful, according to a Nielsen report. The report suggests that a lack of objectivity during the design process could be a hindrance to packaging overhauls.
- More than half of CPG professionals (56%) and more than two-thirds of agency professionals (67%) said the finalized design decisions are often not the strongest.
- While the opinions of senior executives was one of the highest-cited sources of emphasis during design decisions (53%), more than half of CPG professionals (51%) also said that subjective decision-making was their primary complaint about the design process.
Dive Insight:
Nine out of 10 redesigns don't end up producing a meaningful impact for brands, and about half can harm consumer perceptions of brands by detracting from important personality traits, according to Nielsen. Basing decisions more on objective market feedback may be a way manufacturers can overcome these redesign failures to ensure a better return on investment.
Big Data is an integral part of many business decisions for manufacturers, from increasing operational and marketing efficiency to enhancing the due diligence process for investments and acquisitions. That data should not be ignored when it comes time to redesign packaging. A relatively small redesign investment (compared to marketing or ingredient overhauls) informed by quantitative market data can generate a meaningful return.
That's not to say executives should be left out of the design decisions process. Executives can bring a more overarching perspective to the decision rather than focusing only on the packaging. But if an executive's opinion goes against the majority of the design professionals involved in the project and/or substantial quantitative market data, that may be a moment of compromise on the executive's part that manufacturers begin addressing more often.