Psychology Of Product Packaging, How It Plays Into Profitability

What may seem like an idea that isn’t working, could just be a packaging dilemma. Time to rebrand.

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When starting a company, several areas must be considered: Funding, cofounders, market, margin gaps and products or services.

One area that often gets overlooked is the psychology of product packaging, especially during a rebrand.

Navigating the landscape of product development and marketing can be complex. Amidst the challenges of competition, market saturation, and ever-evolving consumer preferences, it’s not uncommon to encounter self-doubt and uncertainty about the reception of one’s products. Yet, what if the perceived lack of acceptance isn’t rooted in the products themselves but rather in the packaging that encapsulates them?

Where products compete for attention on crowded shelves and online platforms, the significance of packaging cannot be overstated. It serves as the first point of contact between a brand and its prospective customers, profoundly influencing consumer behavior and perceptions. Understanding the psychology of product packaging can be a game-changer, offering a strategic edge in a competitive market.

The Packaging Paradox

Despite the pivotal role packaging plays, its significance is often overlooked. Many founders who pour their passion, creativity and expertise into crafting exceptional products may be perplexed by lukewarm market responses or lackluster sales.

Research in consumer psychology consistently highlights the impact of packaging on purchasing decisions, with studies indicating that most consumers make judgments about a product based on its packaging alone. In a 2018 survey, 72% of American consumers stated that their purchase decisions were influenced by a product’s packaging design.

Lydia Simmons, Founder & CEO, M.O.O.

Stephen Guidry

An Example

In 2021, Lydia Simmons, founder of M.O.O. (Mom’s Official Objective), led her tech firm through a rebrand to advance the equity of maternal health and accessibility for all moms of every stage of motherhood. The Firm launched in 2018, reimagining the wellness of postpartum and modern motherhood. The genesis was around thoughtfully created plant-powered nutritional and hormonal wellness products for moms.

She and her team vowed to provide the nutritional and hormonal building blocks moms need during postpartum. The company believes that women should be given the option to access education and products during motherhood that address common and rare conditions.

Sizeable metallic gold letters encompassed the product’s marble and white packaging. “After three years,” the founder shares, “we came to learn through surveys and reviews that the metallic gold represented luxury and [seemed] too expensive to many of our customers. Therefore, our efforts to provide the nutritional building blocks for moms were being impeded by our branding.”

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Simmons and her team questioned whether it was a pricing issue or the packaging. Even though she was devastated by the thought of rebranding because she designed the packaging, she knew something had to change.

Simmons continues, “I had a close advisor that I spoke a lot to about this. She would nudge me and say the simple words, ‘You are not the customer.’ That helped me a lot. What she was saying to me was about what the customer wants and needs. And it’s not about you, and you can’t be so attached to the way this looks that you’re willing to bypass what your initial mission was—to help women.”

One of the biggest challenges was addressing how customers would recognize the new branding. Simmons quickly realized that the loyal customers followed their company’s evolution and were glad they continued to make a product that worked.

Shifting Perspectives: From Product To Packaging

Empowering entrepreneurs to reframe their perceptions of product acceptance entails a shift in focus from the product itself to its packaging. Instead of questioning their offerings’ inherent value or appeal, entrepreneurs should channel their energy into refining and rebranding the packaging to better align with consumer preferences and market trends.

Lydia Simmons, founder and CEO of M.O.O., speaking recently in Houston at a Health Tech Symposium.

Jerrell Truelove.

Harnessing Emotional Triggers

Emotions play a significant role in consumer decision-making, often overshadowing rational considerations. Packaging that taps into emotional triggers such as nostalgia, joy, or belonging can evoke robust responses, driving purchase intent and brand affinity. Understanding the emotional landscape of the target audience enables the creation of packaging that fosters authentic connections and cultivates brand loyalty.

Elements of Effective Packaging

Effective packaging design integrates various elements to create a compelling narrative that captivates consumers. Here are some key components to consider:

Visual Appeal: Colors, fonts, imagery, and overall aesthetics play a crucial role in attracting attention and conveying brand identity. Research suggests that certain colors evoke specific emotions, and understanding this can guide the selection of color schemes that align with the brand’s personality and message. For instance, warm colors (red, orange, and yellow) are generally thought to evoke feelings of happiness, optimism, energy and passion.
Functional Design: Beyond aesthetics, packaging should be practical and user-friendly. Ease of opening, storage convenience, and resealable features can enhance the overall customer experience.
Authenticity: In an era characterized by heightened consumer consciousness, authenticity and transparency are paramount. Packaging that communicates the brand’s values, sustainability efforts and product ingredients fosters trust and loyalty.
Storytelling: Every product has a story, and packaging serves as a platform to narrate it. Whether it’s the journey of creation, the inspiration behind the product, or the impact it aims to make, storytelling adds depth and meaning.

The psychology behind consumer behavior in product packaging holds the key to success. Harnessing this psychology offers a strategic advantage, enabling the creation of packaging that not only captivates but also resonates with target audiences on a profound level. By reframing perceptions of product acceptance and recognizing the pivotal role of packaging, small business owners can unlock new opportunities for growth, innovation and success.

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