
By Ted Mininni
Rapid commoditization of consumer products.
Jaded consumers. A tough economy that has changed customers’ spending
habits. Perhaps permanently. How can a consumer product company grow,
or even survive in this new paradigm? I’ve been mulling this over
for awhile and it seems to me that it’s time to become “disruptive”.
Harvard Business School professor Clayton
Christensen coined the phrase “disruptive technology” in his 1997
best-seller: “The Innovator’s Dilemma”. The concept has been widely
discussed ever since. Christensen’s argument states there are two
kinds of companies: those that use sustaining technologies and those
that employ disruptive ones.
Larger companies tend to work with sustaining
technology. They utilize it to make incremental improvements to their
products over time. Given their corporate framework and strategy, larger
businesses often eschew new opportunities that come along if they arise
from disruptive technologies. Reasons: they may offer lower, less attractive
margins, or they don’t fit in with locked-in company strategies or
company goals.
As a result, smaller companies are often
able to see value in disruptive technologies and bring products to market
that have the potential—with some tweaks and a certain maturation
period—to become hits. Disruptive products have the potential to gain
a large audience, significant marketshare and eventual market dominance,
usually blindsiding category leaders in the process. Disrupters even
give birth to entirely new categories in the marketplace. Think Apple’s
iPod.
Disrupters come along and think of a
better way. They offer simpler or better performing, problem-solving
products for consumers and create excitement in the process. New vision
and approaches applied to age-old problems can yield huge dividends.
Disruptive examples dot the marketscape.
Digital cameras vs photographic film cameras. USB memory sticks vs discs
for data storage. iPods vs radios and boom boxes. While great technology
product innovations are numerous, many other consumer products result
from disruptive thinking, as well. Think single serve beverages in aseptic
packs. Broths and stocks in resealable cartons. Reusable cleaning products
that require refills like Swiffer. Seasonal packaging: Kleenex “Perfect
Slice of Summer” tissue in mouthwatering melon configurations.
Disruptive products require disruptive
packaging, right? But what about further leveraging the potential of
packaging to disrupt even in commodity categories where it’s unexpected?
In fact, wouldn’t doing that deliver more punch to the most mundane
products?
So what about disruptive packaging?
Here’s the thing: companies that have
a culture and strategy that employ disruptive thinking to position unique,
game-changing products and services have an edge. For those that don’t,
this might just be the optimal time to step back and reassess. If sales
are ailing, mightn’t the company benefit from a fresh new point of
view? Tweaking products, packaging and the marketing approach might
be exactly what the doctor ordered.
Products in every category are becoming
commoditized at a faster rate than ever before. That brings us all back
to the true role of marketing: that of providing clear differentiation
and memorable experiences for the customer as job #1.
Packaging continues to grow in importance
in the marketing mix. It brings branded products to consumers in a tangible
manner, so it’s time to take a fresh, new and yes—disruptive—approach
to it. Consider this: in a commodity category like snacks, Pringle’s
dared put potato chips in a canister instead of a bag. POM Wonderful
dared put its flagship pomegranate juice in a double-curved bottle rather
than a typical juice bottle.
Method broke every mold and packaged
its cleaning products in unconventional, sleek see-through bottles.
Environmentally friendly cleaning products presented in highly visible,
transparent packaging makes perfect sense, doesn’t it? When we look
at all of these products, we see how commodity items can be packaged
to elevate product and brand in a unique manner.
Package communications are extremely
important. But in essence, the first line of communication entails engaging
the consumer with visually exciting packaging. After all, why would
consumers approach and read packaging that has no visual appeal? Disruptive
packaging is highly differentiated. It attracts the eye when virtually
every other category product seems to sit on the retail shelf in roughly
the same size and shape of package.
Major disrupters.
Owners of pet dogs like to purchase special
treats. But, what’s more blasé than dog treats? The products and
packaging are pretty basic and unexciting. Enter Bit-O-Luv. This small
company has taken a decidedly different point of view to an age-old
product. A web site features three animated pooches that sell the product
concept in a unique manner. The message is simple: good enough for humans,
but “specially formulated for dogs”. . .exceeding USDA standards. www.bitoluv.com.
The packaging is especially engaging.
The same dogs that appear on the web site grace the packages; their
mouths open and treats visible inside thanks to a clever window. Three
flavor choices are available in bright lime, turquoise and orange packages.
The funky Bit-O-Luv brand identity is prominently featured above the
artwork. This is disruptive packaging at its best.
Cute is one thing, of course, but does
it have any distribution in this competitive marketplace? Wal-Mart,
Albertson’s, Meijer, Food Lion, some Costco locations and Quality
Food Centers stock the products. There’s no doubt that these dog treats
stand out from every other player on the retail shelf.
When it comes to a packaging refresh,
Mentos delivers with punch. While consumers are familiar with the mints
in candy roll packaging reminiscent of Lifesavers, Mentos has parlayed
its image created by disruptive advertising into equally disruptive
packaging. Mentos sugar-free mints are packaged in an ingeniously designed
cardboard box with a hinged lid that actually opens and closes with
a click. The latch works so well that the contents remain inside the
box even when shaking it upside down.
Simple, functional and unlike the packaging
that’s prevalent in the rest of the category, Mentos mints stand out
and stand alone with consumers. Mentos is a deliberately disruptive
brand, and everything it does disrupts.
What about a staple like Kleenex facial
tissues? Los Angeles designer Hiroko Sanders’
took the challenge to create artwork that would embody the spirit of
summer, and still work with Kleenex’s carton design. What’s fresher
than three stylized summer fruits? Unifying package design with brand
and product in fresh, seasonal packaging is unexpected and totally delightful.
When packaging a new line or refreshing
an existing one, think about what you can do to surprise, delight or
deliver a commodity product in an unexpected manner. These are all emotive
qualities that connect consumers to brands in a memorable way. Think:
how can you disrupt your whole category, generate a lot of buzz, excitement
and sales?
Ted Mininni is president of Design Force,
Inc., the leading brand design consultancy to consumer product companies
with Enjoyment Brands™. Design Force helps their clients market
brands that deliver positive, gratifying experiences to consumers. Their
expertise lies in emotionally connecting consumers to brands by creating
compelling visual brand experiences, which motivate purchase decisions.