Package Branding for Market Share
Many companies start small and offer only a single product. They design their packaging to make their product easy to identify in their part of the retail market. After they have perfected their sales of the original product, it is time for them to add new products to their line. Using their original packaging design is a way to help break into the new market quicker. Previous customers who were happy with their original product will remember the brand and spread the word.
This is a routine market strategy for many new companies today. Products made by a single company that has good brand recognition have an easier time breaking into the market with a new product or line. Those that have marketed their brand pick up a larger share of their new market in a shorter time. It is obvious that starting out with an expandable package line with good branding is important. It helps create market share quicker and edges out competitors.
Not all small companies understand this concept. They can be assisted by the companies that contract to do their product packaging. These companies want their clients to succeed with each new product they sell because it means more packaging business. For companies that specialise in contract packing, otherwise known as contract bagging, there is less down-time during off seasons when they assist their customers in this manner. It helps them to also grow their own business when they can point out they do the packaging for successful companies.
Small companies that want to acquire market knowledge need to hire a professional marketer. This person has the responsibility of determining how packages should look on shelves and in stores. The design must be versatile if the company plans to release more new products in the future. Brand recognition must be easy for consumers to identify and the package must be attractive. Colour combinations must be those that will not go out of style quickly. The wrong colours can inhibit sales and force a company to go through the expense of changing its packaging. Major changes in packaging slow down brand recognition and lower profit and market share.