Page 371 - Marketing Management

348 PART 5 SHAPING THE MARKET OFFERINGS

Functionally, structural design is crucial. The packaging elements must harmonize with each
other and with pricing, advertising, and other parts of the marketing program.
Packaging updates or redesigns can occur frequently to make the brand more contemporary,
relevant, or practical. Although these can have immediate impact on sales, they also can have a
downside, as PepsiCo learned for its Tropicana brand.

Tropicana Tropicana PepsiCo experienced great success with its Tropicana brand, acquired
in 1998.Then in 2009, the company launched a redesigned package to “refresh and modern-
ize” the brand. The goal was to create an “emotional attachment by ‘heroing’ the juice and
trumpeting the natural fruit goodness.” Arnell Group led the extreme makeover that led to an
entirely new look, downplaying the brand name, raising the prominence of the phrase
“100 percent orange pure & natural,” and replacing the “straw in an orange” graphic on the front of the
package with a close-up of a glass of orange juice. Consumer response was swift and negative.The pack-
age looked “ugly” or “stupid,” and some even confused it with a store brand. Sales dropped 20 percent.
After only two months, PepsiCo management announced it would revert to the old packaging. 58

After the company designs its packaging, it must test it. Engineering tests ensure that the package
stands up under normal conditions; visual tests, that the script is legible and the colors harmonious;
dealer tests, that dealers find the packages attractive and easy to handle; and consumer tests, that
buyers will respond favorably. Eye tracking by hidden cameras can assess how much consumers no-
tice and examine packages. For Comtrex cold medicine, tracking research was able to confirm that
only 50 percent of consumers considered the old package on the shelf, versus 62 percent for a newly
redesigned package. 59
Although developing effective packaging may require several months and several hundred thou-
sand dollars, companies must consider growing environmental and safety concerns about reducing
packaging. Fortunately, many companies have gone “green” and are finding creative new ways to de-
velop packaging. Frito-Lay’s Sun Chips multigrain snacks, containing 30 percent less fat than potato
chips, are positioned as a healthier,“good for you”snack option. Part of the firm’s effort to also support
a “healthier planet” was to unveil a fully compostable bag made from plant-based materials (although
later withdrawn for some flavors when consumers complained of the noise the bags made) and to run
its factory in Modesto on solar power.

Marketers must balance competing
demands in their packaging; Sun Labeling
Chips’ environmentally friendly The label can be a simple attached tag or an elaborately designed graphic that is part of the
packaging was cut back shortly af- package. It might carry a great deal of information, or only the brand name. Even if the seller
ter its launch because many con- prefers a simple label, the law may require more.
sumers complained about how A label performs several functions. First, it identifies the product or brand—for instance,
noisy the bags were. the name Sunkist stamped on oranges. It might also grade the
product; canned peaches are grade-labeled A, B, and C. The label
might describe the product: who made it, where and when, what it
contains, how it is to be used, and how to use it safely. Finally, the
label might promote the product through attractive graphics.
Advanced technology allows 360-degree shrink-wrapped labels to
surround containers with bright graphics and accommodate more
product information, replacing glued-on paper labels. 60
Labels eventually need freshening up. The label on Ivory soap has
been redone at least 18 times since the 1890s, with gradual changes
in the size and design of the letters. As Tropicana found out, compa-
nies with labels that have become icons need to tread very carefully
when initiating a redesign to preserve key branding elements.
A long history of legal concerns surrounds labels, as well as
packaging. In 1914, the Federal Trade Commission Act held that
false, misleading, or deceptive labels or packages constitute unfair