Continuing my quest of educating why digitally printed flexible packaging can and should be used for larger print jobs, I would like to touch the subject of new business development opportunities. Previously, I have written about how digital printing can improve your supply chain efficiency.
Large and growing companies and brands are always searching for ways to improve and expand their business. The most common ways are to create new sales channels, add new product categories and/or add new locations where your product is available. Due to short runs and freedom from printing forms, digital printing is already well known to have many advantages in this field. It is successfully used for regional customization, testing new products, marketing campaigns, event-based packaging and e-commerce activities.
Personalized and unique packaging drives sales to brands’ existing retail channels
One problem that some larger brands are encountering is that by investing in e-commerce, they can be severing their relationship with distributors and current retail channels. Retailers can feel undercut in such a situation as brands would take much higher profit margin and retail sale volumes might stall or even decline. In some instances, contracts are blocking this path.
Digital printing helps tackle this problem. Brands can utilize creative campaigns by using customized packaging based on individual consumer’s artwork, pictures or texts. This is a win-win situation for brands and retailers alike. It minimizes disruption to their existing retailers as it usually creates their own demand and new channels. Brands benefit from higher profit margins, engagement with consumers and driving sales for their retail channels too.
Consumers are willing to pay more for personalized packaging, brands reap higher profit margins by selling directly
In the case study of personalized Oreo Colorfill packages, Mondelez created a product from mass consumption to a unique item. These packages were often used as a one-off gift. Similar campaigns were also done by Lay’s and KitKat. Not only these campaigns were massively successful, brands differentiated themselves from the competition and created strong engagement with their audience. As a bonus, consumers are prepared to pay extra for a product that is personalized and home-delivered. In the case of Oreo, the price was 4 times higher than regular pack in the shop. Such a personalized campaign can only be done with digital printing.
Use your creativity to start new campaigns and increase your sales. Digital printing opens new opportunities for business development. Let’s get in touch and talk more about your business setup and possibilities.
Next up – marketing campaigns. Stay tuned!