There is a rising demand for products that offer superior value without the luxury price tag.
With the rise of disruptive D2C brands and online marketplaces with unconventional business models, companies are leveraging technology, supply chain management, and marketing to eliminate middlemen and reduce overhead costs.
The large growing middle class, liberalisation, urbanisation and organised retail sector are all catalysts for growth in packaging driven mainly by food and pharma segments.
With more people becoming more health-conscious and with changing lifestyles, there is a growing trend favouring well-packed branded products over loose and unpackaged formats. There is a rising demand for products that offer superior value without the luxury price tag. This demographic shift has led to the expansion of the mass premium segment as companies seek to cater to this market segment.
Philip Kotler, known as the "Father of Modern Marketing," has extensively discussed product positioning in his works. Brand positioning, a term coined by marketer Jack Trout in 1969 is essentially a simple statement that encapsulates what a brand stands for, its core values, and the space it aims to occupy in the customers’ minds.
Let us examine the case of Paper Boat to understand how Package Design and Brand Position work hand-in-hand to create an unforgettable experience that evokes childhood nostalgia in consumers. Hector Beverages wanted to bring the experience of consuming traditional Indian beverages– think aam panna or ganne ka rus (sugarcane juice) or homemade summer drinks and blend it with modern packaging and supply channels, enabling it to be purchased at stores.
Paper Boat’s target audience comprises people who have often found their first job and have moved away from home to start their individual, independent journeys. These people miss homemade food and drinks and wish to recreate that experience. Paper Boat positions itself as a brand that fulfils all those needs but the packaging design had to showcase that. They focused on the packaging structure by choosing doy packs that provide an enhanced sensory experience.
The surface was textured like paper and added a variety of colourful doodle-like icons, complete with text to make it playful and engaging, to mirror the margins, or the back of a well-worn school notebook. You’ll find good-natured, tongue-in-cheek one-liners that tell you about the lack of artificial flavouring.
Cut to this day, Paper Boat has become ubiquitous in the Indian Beverage market. Their case study is taught in management and business schools. They were able to navigate an existing cluttered ecosystem and attract eyeballs through white pouches with a play of colours while browsing the supermarket aisle.
In summary, packaging design is a critical element of product positioning, as it communicates the brand's value proposition and influences consumers' perceptions and purchasing decisions. When packaging and positioning are aligned, it boosts consumer confidence. Consumer confidence, in turn, leads to sales, satisfaction and referrals.