Leveraging Shelf-Ready Packaging (SRP)

From Packaging to Winning at Retail

Building the shopper and store into design briefs

Integrating packaging, SRP and POS design

Using research to assess full in-store solutions

Leveraging Shelf-Ready Packaging (SRP)  

The growth of retail — or shelf-ready packaging (SRP) — highlights the importance of making packaging and POS materials work together. Secondary packaging display cartons are very common in Europe, particularly in fast-growing discount channels, and they’ve been promoted by some retailers in the U.S. because they offer efficiencies in stocking. However, one trip to the store reveals that SRP can significantly impact a brand’s in-store presentation, for better or worse.

If leveraged properly, SRP can effectively serve as a display and help drive visibility, facilitate shopability and/or convey an important brand message. However, if not, SRP can significantly compromise packaging communication, by blocking its visibility and accessibility and/or leading to poor package orientation (i.e., knocked over packages).    

Therefore to maximize positive outcomes, the most important principle is to design the SRP to complement the packaging by focusing on a specific communication objective. For example, if a brand family is relatively large and complex, the SRP may provide an excellent opportunity to facilitate shopability, perhaps via color-coding and/or calling out specific varieties or sub-brands. On the other hand, if small dimensions limit the opportunity for on-pack communication, an SRP may be best utilized to convey a clear, differentiating and motivating brand message (i.e., a reason to believe).

From Packaging to Winning at Retail   

How can marketers ensure that their packaging and POS efforts work together effectively? Here are several best practices we’ve seen that make a difference:

Building the shopper and store into design briefs 

Too often, design briefs are largely excerpts from brand positioning statements and/or advertising efforts focused almost entirely on communication. To shift this mindset, additional inputs/components should be built in that incorporate shopper understanding (most notably, decision-making processes and priorities at the shelf) and retail realities across different key channels (competitive set, lighting, shelving). This information and insight can help ensure that packaging and POS materials are designed with specific retail challenges and shopper-based objectives in mind. 
 

Integrating packaging, SRP and POS design  

Many companies have internal silos (i.e., between sales and marketing, shopper and brand, packaging and POS, etc.) that lead to materials being created in isolation. To move forward, companies need to think, design and ideally organize more broadly when optimizing shopper marketing and winning at retail. At a minimum, design efforts should start with both strategic and tactical understanding of how packaging and POS will work together. Designers need to know the roles of each vehicle and be able to anticipate how the presence of signage and displays will impact packaging presentation. 
 

Using research to assess full in-store solutions     

Finally, marketers must ensure that new packaging and POS systems are working in the larger store context. When actual in-store testing/test markets aren’t feasible, we’ve used new tools (such as PRS Virtual Aisles) to show/assess packaging systems in the full aisle context, including SRP, end-cap displays and in-aisle signage. For example, in a recent virtual study in the lighting category, we simulated several different in-aisle scenarios and measured impact on purchase patterns and shopability. Not surprisingly, we found that the combination of elements — working together and complementing each other — had much stronger positive impact than a packaging change alone. These findings then helped the manufacturer sell in a new merchandising and shelving system to its retail customers.

By integrating the shopper, retail environment and POS within their design efforts, marketers can ensure that their packaging works in store. They can gather insights (and evidence) that will help them collaborate effectively with retailers and develop win-win solutions that drive category growth. Most importantly, they can increase the likelihood that their packaging and POS materials are working together to help their brands win at retail.