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white paper | April 2010




                           The Blink Factor            ™


                           is your brand connecting?
white paper | April 2010 | The Blink Factor | 1




                                            Shikatani Lacroix is a leading branding and design firm located in
                                            Toronto, Canada. The company commission assignments from all
                                            around the world, across CPG, retail and service industries,
                                            helping clients achieve success within their operating markets. It
                                            does this by enabling its clients’ brands to better connect with
                                            their consumers through a variety of core services including
                                            corporate identity and communication, brand experience design,
                                            packaging, naming and product design.

                                            About the Author
                                            Jean-Pierre Lacroix, R.G.D., President and Founder of Shikatani
                                            Lacroix
                                            Jean-Pierre (JP) Lacroix provides leadership and direction to
                                            his firm, which was founded in 1990. He has spent the last 30
                                            years helping organizations better connect their brands with
                                            consumers in ways that impact the overall performance of their
                                            business. Mr. Lacroix was the first to coin and trademark the
                                            statement “The Blink Factor” in 1990, which today is a
                                            cornerstone principle to how brands succeed in the
                                            marketplace. JP has authored several papers, has been quoted
                                            in numerous branding and design articles and, in 2001 he co-
                                            authored the book “The Business of Graphic Design” which has
                                            sold over 10,000 copies. JP can be reached at
                                            jplacroix@sld.com and you can follow his blog at:
                                            www.belongingexperiences.com &
                                            www.belongingexperiences.wordpress.com.



                                            Other Articles and Books
                                            Belonging Experiences

                                            Managing Brands

                                            Business of Graphic Design
white paper | April 2010 | The Blink Factor | 2




                                           A world of confusion
                                           Everything today is getting more complex and confusing, from
                                           the growth of brands at retail to the blurring of retail boundaries
                                           as marketers explore new opportunities to grow market share.
                                           The rise of social media has added to the level of anxiety and
                                           noise in the marketplace. In 2009, the average supermarket was
                                           carrying more than 45,000 products, more than a triple digit
                                           increase from 1980. A record-breaking number of new products
                                           hit supermarket shelves in 2006, with a strong focus on good
                                           health, according to the Mintel Global New Products Database.
                                           Close to 182,000 products were introduced globally in 2006. Key
                                           growth areas were mind, body and general good health. Almost
                                           105,000 food and drink products were launched, and more than
                                           77,000 non-food products.


                                           Although the recession has cut new product launches in half
                                           between 2008 and 2009, the number is still staggering for
                                           consumers trying to make a buying decision at retail. A.C. Nielsen
                                           conducted a study in 2009 that identified that although
                                           manufacturers have significantly cut back investment in new
                                           product launches, consumers’ purchase interest and value
                                           perceptions for new products did not change significantly during
                                           the same period. The complexity of choice at store level is
                                           compounded by the fragmentation of the media with
                                           conventional marketing channels’ R.O.I. being challenged by new
                                           emerging social media vehicles that promote the values of
                                           measurable results and lower cost per thousand. These new
                                           channels to reach customers have eroded the effectiveness of
                                           current marketing approaches while adding to the challenges
                                           facing marketers. “How do I connect and engage consumers
                                           more effectively in a new complexity of approaches?”
white paper | April 2010 | The Blink Factor | 3




                                                                Adding to the shift in marketing strategies
                                                                has been the need for consumers to feel in
                                                                control of their buying decisions, leverage
                                                                social media and the web as vehicles for
                                                                them to gain knowledge and unbiased
                                                                opinions on brands. A recent study
                                                                conducted by MarketingProfs, a social media
                                                                website dedicated to all things marketing,
                                                                identified that 27% of Gen Y and 19% of Gen
                                                                X cite the influence of Social Media Channels
                                                                while shopping online. It is interesting that
                                                                only 9% of the Baby Boomer’s generation are
                                                                influenced by social media as part of their
                                                                online shopping.

                                           These statistics support an emerging behavior where consumers
                                           are seeking new channels of knowledge to help guide them
                                           through the complexity of choice. In a study conducted by social
                                           networking site myYearbook, 81% of respondents said they
                                           received advice from friends and followers relating to a product
                                           purchase through a social site; 74% of those who received such
                                           advice found it to be influential in their decision (Click Z, January
                                           2010). 90% of consumers online trust recommendations from
                                           people they know; 70% trust opinions of unknown users
                                           (Econsultancy, July 2009).

                                           Understanding Visual Shorthand
                                           As markets become blurred and the abundance of choice
                                           overwhelms consumers’ need to make decisions, the ability to
                                           rely on quick visual reference points that provide a beacon in the
                                           complexity of choice become more critical. In his book “Blink”,
                                           Malcolm Gladwell identifies that humans have survived as species
                                           for such a long time since we have been able to make quick
                                           decisions on our survival.
white paper | April 2010 | The Blink Factor | 4




                                           He notes that “thin-slicing” is the ability of our subconscious to
                                           find patterns such as packaging graphics, a unique color or
                                           shape based on a very limited amount of information.

                                           In the design process of building strong brand recognition, we
                                           have named this behavior “visual shorthand”, the ability of
                                           consumers to make quick buying decision based on the
                                           availability of few key visual elements of the packaging. The
                                           importance for marketers and designers is to clearly understand
                                           which of these key elements contribute to creating effective
                                           split-second brand connections at store level. Our own brand
                                           studies have identified that non-verbal visuals such as color,
                                           shape or imagery play the most pivotal role in creating the right
                                           visual shorthand that will drive brand recognition and preference.

                                           Based on a study conducted in 2005 on “The importance of
                                           packaging attributes: a conjoint analysis approach” - by Pinya
                                           Silayoi Department of Packaging Technology, Faculty of Agro-
                                           Industry, Kasetsart University, Bangkok, Thailand; and Mark
                                           Speece School of Business, Public Administration and
                                           Information Systems, University of Alaska Southeast - visual
                                           imagery on the package is an essential attribute that drives
                                           brand preference and selection. The study supports our own
                                           firm’s experience through numerous client-based research
                                           studies, that to be noticed at the point of sale, visuals on the
                                           package can be a strategic method of differentiation, since a
                                           picture is the most effective tool in creating emotional
                                           connections. Based on a study by Underwood in 2001, research
                                           identified that pictures are extremely vivid stimuli compared to
                                           words and also are quicker and easier for consumers to process
                                           in a low involvement situation.
white paper | April 2010 | The Blink Factor | 5




                                           Pictures have always been the most effective vehicle for
                                           educating children and also sharing the history of our culture and
                                           values. The visual shorthand on packaging creates strong shelf
                                           visibility, attracting attention and effectively connecting with
                                           consumers on both the functional and emotive level. A well-
                                           produced product image such as a smiling face, a pregnant
                                           woman or an appealing food shot is likely to evoke memorable
                                           and positive association with the product far beyond the written
                                           product descriptions or claims.


                                                                            Packaging must also support how
                                                                            customers shop - as they scan
                                                                            quickly across a store shelf within
                                                                            a category that may easily contain
                                                                            more than 300 products, the eye
                                                                            is attracted by colors and shapes
                                                                            that either reinforce a current
                                                                            perception (a preferred brand) or
                                                                            establish new aspirational
                                                                            reflections that mirror the
                                                                            consumer’s desired self-image.
                                           Shelf studies conducted by our firm that included eye-scanning
                                           technology by research firms such as Hotspex clearly identify the
                                           location of visuals and shapes within a category and on given
                                           packages play a critical role in ensuring the brand is
                                           differentiated and retains strong visibility.
white paper | April 2010 | The Blink Factor | 6




                                           The conjoint study provided conclusive evidence, thus validating
                                           our ongoing belief that the four main packaging attributes found
                                           to influence the consumer’s packaged food brand choice were
                                           color and graphic design (combined), shape, product
                                           information, and technology image (essentially, convenience).
                                           The layout of verbal and visual elements was also included to
                                           account for the impact of different positions of these two
                                           elements on the purchase decision.

                                                                               The conjoint results indicate
                                                                               that packaging technology
                                                                               (which conveys a message of
                                                                               convenience and ease of use in
                                                                               this study) plays the most
                                                                               important role in consumer
                                                                               likelihood to buy. The relative
                                                                               importance of this attribute is
                                                                               about 32% (Table III). The
                                           other attributes included in this study were not much different
                                           from each other in importance. Packaging shape had a slight
                                           edge (19%) and supports a recent packaging project for one of
                                           our clients, Vivitas Women, where the unique bottle in the shape
                                           of a pregnant received the highest score for recognition and
                                           shelf visibility since it was clearly differentiated from adjacent
                                           brands that were packaged in conventional bottle shapes. The
                                           study identified that the third most important attribute was
                                           clustered around three factors: product information (17%), color
                                           and graphics (16%) and finally, layout of graphics and information
                                           (15%).
white paper | April 2010 | The Blink Factor | 7




                                           Based on the study, packaging technology is the most important
                                           attribute. The study identified that the specific message the
                                           technology conveys is about convenience and ease of use, so
                                           these results suggest that urban consumers give more
                                           consideration to technology that represents convenience; i.e., the
                                           technology image clearly shown on the pack seems to be more
                                           appealing on the shelf. This supports other studies we have
                                           conducted for a range of brands, where packaging features such
                                           as a re-sealable zipper bags, easy-to-grip lids, food that can be
                                           easily microwave and where the packaging also serves as the
                                           eating tray, do well in research and at shelf.


                                           For InBev, the feature of a lined beer can that could retain the
                                           liquid at a colder temperature longer, or for Tetley Tea, a
                                           package that kept the product fresher longer and was easier to
                                           store in the cupboard were functional features that truly
                                           differentiated the product and drove sales. The study also
                                           identified a growing trend by consumers of reading the label
                                           information. With the growth of health and the awareness of
                                           unhealthy ingredients such as trans-fats, sugar, salt, in addition to
                                           food scares due to poor quality control practices, consumers are
                                           paying more attention to the ingredient panel and the country of
                                           origin. This indicates that consumers value the product
                                           information on food labels, and confirms prior studies from other
                                           countries (Mitchell and Papavassiliou, 1999) like Thailand (Silayoi
                                           et al. 2003; Silayoi and Speece, 2004) which show that
                                           consumers are increasingly reading the label and want it to be
                                           clear.
white paper | April 2010 | The Blink Factor | 8




                                           The results of the study suggest that consumers are evaluating
                                           product quality through a range of packaging stimuli, from the
                                           quality of the design to the health and product claims through
                                           the nutritional facts found on secondary panels. One thing this
                                           probably reflects is the impact of health-conscious behaviors on
                                           food choice, as concern for proper nutrition is now a key factor
                                           influencing consumption choice in many countries (McIlveen,
                                           1994).


                                                  The study also identified that straight packaging shape had
                                                  a positive influence compared to curvy design, as does
                                                  classic shape on the package compared to colorful. This
                                                  suggests that overall, the respondents may be more
                                                  attracted to a package that seems familiar and reliable, and
                                                  supports our view that branding is more about building
                                                  trust through consistent delivery of the key emotive and
                                                  functional benefits of the brand. It also supports why so
                                                  many of new products fail to gain market share and
                                                  customer preference.


                                                  Shop-ability a key driver in purchase intent
                                                  Work we have completed over the past 30 years in a wide
                                                  range of categories have supported our belief that
                                                  consumers tend to shop for a given variety such as a flavor,
                                                  a format, a key benefit when shopping for a given product.
                                           In a wide range of categories, the actual brand plays an endorser
                                           role, ensuring that the given variety matches the desired
                                           outcome following the actual purchases. If you were to weigh
                                           these factors on potential impact to ensure the Blink Factor, the
                                           ability to stand out at shelf level and effectively communicate a
                                           meaningful and differentiated offering would take the lead.
white paper | April 2010 | The Blink Factor | 9




                                           At Shikatani Lacroix, we believe that differentiation at shelf is
                                           predicated on a clear value proposition based on a strongly defined
                                           emotional and rational benefit driven by visual cues on the
                                           packaging. However, the study also identifies circumstances in
                                           which packaging changes can reduce sales, particularly if a new
                                           structure fails to meet shoppers' expectations and functional needs.
                                           Thus, packages that “break the rules” by violating category norms
                                           and expectations may be most successful when positioned as line
                                           extensions and tied to specific usage occasions, rather than as
                                           replacements for current packaging. Clear implications can be drawn
                                           from the study in determining how to approach and assess new
                                           packaging. First, the study demonstrates the need for upfront
                                           research with consumers, to understand functional priorities,
                                           expectations, and unmet opportunities within a product category.
                                           It is also important to understand that brands never exist in
                                           isolation in a retail environment and tend to compete with a wide
                                           range of new and existing products, pending the category size or
                                           growth. Consumers’ shopping behavior, based on the fact that
                                           fewer than 35% come to a supermarket with a shopping list
                                           reinforces their reliance on packaging visual cues to make buying
                                           decision. How consumers navigate the category and use
                                           packaging cues to facilitate the purchase tree process becomes
                                           critical.
white paper | April 2010 | The Blink Factor | 10




                                           Instant Connections
                                           Based on our own research findings and those of the packaging
                                           conjoint study, a key dimension of creating the right emotional
                                           connection is what we have come to define as the “Blink Factor”.
                                           With more than 70% of buying decisions done in the store and
                                           with the growth of brand fragmentation, consumers make their
                                           purchase decision in the blink of an eye based on some well-
                                           defined principles.

                                           As consumers are offered more choices, they tend to rely on key
                                           visual cues that provide affirmation that they have found the
                                           right product. It is important to note that 40% of all
                                           communication consumers absorb is visually oriented and of this,
                                           80% is color and shape.

                                           Since visuals are the gateway to a consumer’s emotions, the
                                           importance of creating these split-second connections with
                                           consumers is paramount. Great brands are those that have fully
                                           leveraged the “Blink Factor”, ensuring that consumers easily
                                           identify brands based on the simplest of clues.

                                           Based on our industry insights, the following principles help in
                                           assessing the Blink Factor:

                                           1) Ability to stand out at shelf level
                                              •     How quickly is the product seen;
                                              •     How long is it viewed;
                                              •     Is the packaged viewed a second time?
white paper | April 2010 | The Blink Factor | 11




                                            2) Does the package have the “Blink Factor”
                                               •   Does the package have color recognition?
                                               •   Does the package have a unique shape?
                                               •  Does the package leverage a memorable image?

                                            3) Does the package help shop-ability?
                                               •  Right hierarchy of communication/viewing pattern
                                               •  Ease of variety differentiation
                                               •  Clear consumer benefit
                                               •  Differentiation within the category
                                               •  Is the design simple?

                                            4) Does the package convey a meaningful and relevant point of
                                               difference?
                                               •    Does the overall package design communicate an
                                                    emotional and rational need state and strong value?
                                               •    Is the key benefit clearly communicated visually?
                                               •    Have the stated and hidden drivers been established?

                                            5) Is the package effectively located within the category?
                                               •    Is the package located at eye level and easy to grab?
                                               •    Is the package in the right context?

                                            Leveraging the blink factor allows brands to fully leverage
                                            visually their competitive advantage while creating a stronger
                                            emotional link with their desired target group. In a presentation
                                            by Scott Young, President of Perception Research Services, on 10
                                            Principles for Effective Package Design, he identifies that clutter
                                            at store level is the reality of the new shopping experience.
white paper | April 2010 | The Blink Factor | 12




                                           The presentation notes that packaging must work within a
                                           cluttered shelf environment where the brand is positioned
                                           directly next to competitors. He noted that a package must “win”
                                           on key dimensions when compared directly to competitors since
                                           packaging influences product expectations, brand/user imagery
                                           and perceived value. These factors lead us to understand that
                                           packaging is more effective in creating relationships than other
                                           marketing vehicles.


                                           Conclusion
                                           The battlefield for products is becoming more and more complex,
                                           with a multitude of choices driving confusion and the lack of brand
                                           loyalty. Today, brands need to work harder at connecting and
                                           engaging consumers, and the ability to foster a preference in the
                                           blink of an eye becomes paramount. The research findings in this
                                           report support our many years of studying consumers’ buying habits
                                           and the key role that great packaging design plays.
white paper | April 2010 | The Blink Factor | 13




                                           References




                                           Malcolm Gladwell, 2005, “Blink: The Power of Thinking Without
                                           Thinking”, Little, Brown and Company


                                           McIlveen, H. (1994), “Product development and the consumer: the
                                           reality of the managing creativity”, Nutrition & Food Science, Vol.
                                           6, November/December, pp. 26-30.


                                           MarketingProf, 2009, “Social Media Study”, Online


                                           Mitchell, V.W. and Papavassiliou, V. (1999), “Marketing causes
                                           and implications of consumer confusion”, Journal of Product &
                                           Brand Management, Vol. 8 No. 4, pp. 319-39

                                           Pinya Silayoi Department of Packaging Technology, Faculty of
                                           Agro-Industry, Kasetsart University, Bangkok, Thailand, and Mark
                                           Speece School of Business, Public Administration and
                                           Information Systems, University of Alaska Southeast (2005)
                                           “The importance of packaging attributes: a conjoint analysis
                                           approach”

                                           Scott Young , President of Perception Research Services, (2006) ,
                                           “Packaging (ROI) on multi-million dollar packaging investments”
white paper | April 2010 | The Blink Factor | 14




                                           For more information, contact:

                                           Jean-Pierre Lacroix, President
                                           Shikatani Lacroix
                                           387 Richmond Street East
                                           Toronto, Ontario
                                           M5A 1P6
                                           Telephone: 416-367-1999
                                           Email: jplacroix@sld.com

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The Blink Factor

  • 1. white paper | April 2010 The Blink Factor ™ is your brand connecting?
  • 2. white paper | April 2010 | The Blink Factor | 1 Shikatani Lacroix is a leading branding and design firm located in Toronto, Canada. The company commission assignments from all around the world, across CPG, retail and service industries, helping clients achieve success within their operating markets. It does this by enabling its clients’ brands to better connect with their consumers through a variety of core services including corporate identity and communication, brand experience design, packaging, naming and product design. About the Author Jean-Pierre Lacroix, R.G.D., President and Founder of Shikatani Lacroix Jean-Pierre (JP) Lacroix provides leadership and direction to his firm, which was founded in 1990. He has spent the last 30 years helping organizations better connect their brands with consumers in ways that impact the overall performance of their business. Mr. Lacroix was the first to coin and trademark the statement “The Blink Factor” in 1990, which today is a cornerstone principle to how brands succeed in the marketplace. JP has authored several papers, has been quoted in numerous branding and design articles and, in 2001 he co- authored the book “The Business of Graphic Design” which has sold over 10,000 copies. JP can be reached at jplacroix@sld.com and you can follow his blog at: www.belongingexperiences.com & www.belongingexperiences.wordpress.com. Other Articles and Books Belonging Experiences Managing Brands Business of Graphic Design
  • 3. white paper | April 2010 | The Blink Factor | 2 A world of confusion Everything today is getting more complex and confusing, from the growth of brands at retail to the blurring of retail boundaries as marketers explore new opportunities to grow market share. The rise of social media has added to the level of anxiety and noise in the marketplace. In 2009, the average supermarket was carrying more than 45,000 products, more than a triple digit increase from 1980. A record-breaking number of new products hit supermarket shelves in 2006, with a strong focus on good health, according to the Mintel Global New Products Database. Close to 182,000 products were introduced globally in 2006. Key growth areas were mind, body and general good health. Almost 105,000 food and drink products were launched, and more than 77,000 non-food products. Although the recession has cut new product launches in half between 2008 and 2009, the number is still staggering for consumers trying to make a buying decision at retail. A.C. Nielsen conducted a study in 2009 that identified that although manufacturers have significantly cut back investment in new product launches, consumers’ purchase interest and value perceptions for new products did not change significantly during the same period. The complexity of choice at store level is compounded by the fragmentation of the media with conventional marketing channels’ R.O.I. being challenged by new emerging social media vehicles that promote the values of measurable results and lower cost per thousand. These new channels to reach customers have eroded the effectiveness of current marketing approaches while adding to the challenges facing marketers. “How do I connect and engage consumers more effectively in a new complexity of approaches?”
  • 4. white paper | April 2010 | The Blink Factor | 3 Adding to the shift in marketing strategies has been the need for consumers to feel in control of their buying decisions, leverage social media and the web as vehicles for them to gain knowledge and unbiased opinions on brands. A recent study conducted by MarketingProfs, a social media website dedicated to all things marketing, identified that 27% of Gen Y and 19% of Gen X cite the influence of Social Media Channels while shopping online. It is interesting that only 9% of the Baby Boomer’s generation are influenced by social media as part of their online shopping. These statistics support an emerging behavior where consumers are seeking new channels of knowledge to help guide them through the complexity of choice. In a study conducted by social networking site myYearbook, 81% of respondents said they received advice from friends and followers relating to a product purchase through a social site; 74% of those who received such advice found it to be influential in their decision (Click Z, January 2010). 90% of consumers online trust recommendations from people they know; 70% trust opinions of unknown users (Econsultancy, July 2009). Understanding Visual Shorthand As markets become blurred and the abundance of choice overwhelms consumers’ need to make decisions, the ability to rely on quick visual reference points that provide a beacon in the complexity of choice become more critical. In his book “Blink”, Malcolm Gladwell identifies that humans have survived as species for such a long time since we have been able to make quick decisions on our survival.
  • 5. white paper | April 2010 | The Blink Factor | 4 He notes that “thin-slicing” is the ability of our subconscious to find patterns such as packaging graphics, a unique color or shape based on a very limited amount of information. In the design process of building strong brand recognition, we have named this behavior “visual shorthand”, the ability of consumers to make quick buying decision based on the availability of few key visual elements of the packaging. The importance for marketers and designers is to clearly understand which of these key elements contribute to creating effective split-second brand connections at store level. Our own brand studies have identified that non-verbal visuals such as color, shape or imagery play the most pivotal role in creating the right visual shorthand that will drive brand recognition and preference. Based on a study conducted in 2005 on “The importance of packaging attributes: a conjoint analysis approach” - by Pinya Silayoi Department of Packaging Technology, Faculty of Agro- Industry, Kasetsart University, Bangkok, Thailand; and Mark Speece School of Business, Public Administration and Information Systems, University of Alaska Southeast - visual imagery on the package is an essential attribute that drives brand preference and selection. The study supports our own firm’s experience through numerous client-based research studies, that to be noticed at the point of sale, visuals on the package can be a strategic method of differentiation, since a picture is the most effective tool in creating emotional connections. Based on a study by Underwood in 2001, research identified that pictures are extremely vivid stimuli compared to words and also are quicker and easier for consumers to process in a low involvement situation.
  • 6. white paper | April 2010 | The Blink Factor | 5 Pictures have always been the most effective vehicle for educating children and also sharing the history of our culture and values. The visual shorthand on packaging creates strong shelf visibility, attracting attention and effectively connecting with consumers on both the functional and emotive level. A well- produced product image such as a smiling face, a pregnant woman or an appealing food shot is likely to evoke memorable and positive association with the product far beyond the written product descriptions or claims. Packaging must also support how customers shop - as they scan quickly across a store shelf within a category that may easily contain more than 300 products, the eye is attracted by colors and shapes that either reinforce a current perception (a preferred brand) or establish new aspirational reflections that mirror the consumer’s desired self-image. Shelf studies conducted by our firm that included eye-scanning technology by research firms such as Hotspex clearly identify the location of visuals and shapes within a category and on given packages play a critical role in ensuring the brand is differentiated and retains strong visibility.
  • 7. white paper | April 2010 | The Blink Factor | 6 The conjoint study provided conclusive evidence, thus validating our ongoing belief that the four main packaging attributes found to influence the consumer’s packaged food brand choice were color and graphic design (combined), shape, product information, and technology image (essentially, convenience). The layout of verbal and visual elements was also included to account for the impact of different positions of these two elements on the purchase decision. The conjoint results indicate that packaging technology (which conveys a message of convenience and ease of use in this study) plays the most important role in consumer likelihood to buy. The relative importance of this attribute is about 32% (Table III). The other attributes included in this study were not much different from each other in importance. Packaging shape had a slight edge (19%) and supports a recent packaging project for one of our clients, Vivitas Women, where the unique bottle in the shape of a pregnant received the highest score for recognition and shelf visibility since it was clearly differentiated from adjacent brands that were packaged in conventional bottle shapes. The study identified that the third most important attribute was clustered around three factors: product information (17%), color and graphics (16%) and finally, layout of graphics and information (15%).
  • 8. white paper | April 2010 | The Blink Factor | 7 Based on the study, packaging technology is the most important attribute. The study identified that the specific message the technology conveys is about convenience and ease of use, so these results suggest that urban consumers give more consideration to technology that represents convenience; i.e., the technology image clearly shown on the pack seems to be more appealing on the shelf. This supports other studies we have conducted for a range of brands, where packaging features such as a re-sealable zipper bags, easy-to-grip lids, food that can be easily microwave and where the packaging also serves as the eating tray, do well in research and at shelf. For InBev, the feature of a lined beer can that could retain the liquid at a colder temperature longer, or for Tetley Tea, a package that kept the product fresher longer and was easier to store in the cupboard were functional features that truly differentiated the product and drove sales. The study also identified a growing trend by consumers of reading the label information. With the growth of health and the awareness of unhealthy ingredients such as trans-fats, sugar, salt, in addition to food scares due to poor quality control practices, consumers are paying more attention to the ingredient panel and the country of origin. This indicates that consumers value the product information on food labels, and confirms prior studies from other countries (Mitchell and Papavassiliou, 1999) like Thailand (Silayoi et al. 2003; Silayoi and Speece, 2004) which show that consumers are increasingly reading the label and want it to be clear.
  • 9. white paper | April 2010 | The Blink Factor | 8 The results of the study suggest that consumers are evaluating product quality through a range of packaging stimuli, from the quality of the design to the health and product claims through the nutritional facts found on secondary panels. One thing this probably reflects is the impact of health-conscious behaviors on food choice, as concern for proper nutrition is now a key factor influencing consumption choice in many countries (McIlveen, 1994). The study also identified that straight packaging shape had a positive influence compared to curvy design, as does classic shape on the package compared to colorful. This suggests that overall, the respondents may be more attracted to a package that seems familiar and reliable, and supports our view that branding is more about building trust through consistent delivery of the key emotive and functional benefits of the brand. It also supports why so many of new products fail to gain market share and customer preference. Shop-ability a key driver in purchase intent Work we have completed over the past 30 years in a wide range of categories have supported our belief that consumers tend to shop for a given variety such as a flavor, a format, a key benefit when shopping for a given product. In a wide range of categories, the actual brand plays an endorser role, ensuring that the given variety matches the desired outcome following the actual purchases. If you were to weigh these factors on potential impact to ensure the Blink Factor, the ability to stand out at shelf level and effectively communicate a meaningful and differentiated offering would take the lead.
  • 10. white paper | April 2010 | The Blink Factor | 9 At Shikatani Lacroix, we believe that differentiation at shelf is predicated on a clear value proposition based on a strongly defined emotional and rational benefit driven by visual cues on the packaging. However, the study also identifies circumstances in which packaging changes can reduce sales, particularly if a new structure fails to meet shoppers' expectations and functional needs. Thus, packages that “break the rules” by violating category norms and expectations may be most successful when positioned as line extensions and tied to specific usage occasions, rather than as replacements for current packaging. Clear implications can be drawn from the study in determining how to approach and assess new packaging. First, the study demonstrates the need for upfront research with consumers, to understand functional priorities, expectations, and unmet opportunities within a product category. It is also important to understand that brands never exist in isolation in a retail environment and tend to compete with a wide range of new and existing products, pending the category size or growth. Consumers’ shopping behavior, based on the fact that fewer than 35% come to a supermarket with a shopping list reinforces their reliance on packaging visual cues to make buying decision. How consumers navigate the category and use packaging cues to facilitate the purchase tree process becomes critical.
  • 11. white paper | April 2010 | The Blink Factor | 10 Instant Connections Based on our own research findings and those of the packaging conjoint study, a key dimension of creating the right emotional connection is what we have come to define as the “Blink Factor”. With more than 70% of buying decisions done in the store and with the growth of brand fragmentation, consumers make their purchase decision in the blink of an eye based on some well- defined principles. As consumers are offered more choices, they tend to rely on key visual cues that provide affirmation that they have found the right product. It is important to note that 40% of all communication consumers absorb is visually oriented and of this, 80% is color and shape. Since visuals are the gateway to a consumer’s emotions, the importance of creating these split-second connections with consumers is paramount. Great brands are those that have fully leveraged the “Blink Factor”, ensuring that consumers easily identify brands based on the simplest of clues. Based on our industry insights, the following principles help in assessing the Blink Factor: 1) Ability to stand out at shelf level • How quickly is the product seen; • How long is it viewed; • Is the packaged viewed a second time?
  • 12. white paper | April 2010 | The Blink Factor | 11 2) Does the package have the “Blink Factor” • Does the package have color recognition? • Does the package have a unique shape? • Does the package leverage a memorable image? 3) Does the package help shop-ability? • Right hierarchy of communication/viewing pattern • Ease of variety differentiation • Clear consumer benefit • Differentiation within the category • Is the design simple? 4) Does the package convey a meaningful and relevant point of difference? • Does the overall package design communicate an emotional and rational need state and strong value? • Is the key benefit clearly communicated visually? • Have the stated and hidden drivers been established? 5) Is the package effectively located within the category? • Is the package located at eye level and easy to grab? • Is the package in the right context? Leveraging the blink factor allows brands to fully leverage visually their competitive advantage while creating a stronger emotional link with their desired target group. In a presentation by Scott Young, President of Perception Research Services, on 10 Principles for Effective Package Design, he identifies that clutter at store level is the reality of the new shopping experience.
  • 13. white paper | April 2010 | The Blink Factor | 12 The presentation notes that packaging must work within a cluttered shelf environment where the brand is positioned directly next to competitors. He noted that a package must “win” on key dimensions when compared directly to competitors since packaging influences product expectations, brand/user imagery and perceived value. These factors lead us to understand that packaging is more effective in creating relationships than other marketing vehicles. Conclusion The battlefield for products is becoming more and more complex, with a multitude of choices driving confusion and the lack of brand loyalty. Today, brands need to work harder at connecting and engaging consumers, and the ability to foster a preference in the blink of an eye becomes paramount. The research findings in this report support our many years of studying consumers’ buying habits and the key role that great packaging design plays.
  • 14. white paper | April 2010 | The Blink Factor | 13 References Malcolm Gladwell, 2005, “Blink: The Power of Thinking Without Thinking”, Little, Brown and Company McIlveen, H. (1994), “Product development and the consumer: the reality of the managing creativity”, Nutrition & Food Science, Vol. 6, November/December, pp. 26-30. MarketingProf, 2009, “Social Media Study”, Online Mitchell, V.W. and Papavassiliou, V. (1999), “Marketing causes and implications of consumer confusion”, Journal of Product & Brand Management, Vol. 8 No. 4, pp. 319-39 Pinya Silayoi Department of Packaging Technology, Faculty of Agro-Industry, Kasetsart University, Bangkok, Thailand, and Mark Speece School of Business, Public Administration and Information Systems, University of Alaska Southeast (2005) “The importance of packaging attributes: a conjoint analysis approach” Scott Young , President of Perception Research Services, (2006) , “Packaging (ROI) on multi-million dollar packaging investments”
  • 15. white paper | April 2010 | The Blink Factor | 14 For more information, contact: Jean-Pierre Lacroix, President Shikatani Lacroix 387 Richmond Street East Toronto, Ontario M5A 1P6 Telephone: 416-367-1999 Email: jplacroix@sld.com