Today, chief marketing officers are being challenged to demonstrate a strong marketing return on investment (ROI) in order to justify their efforts and expenditures. Since packaging is one of the marketing corner stones of most consumer package goods organization, the need to clearly understand the impact on sales and ROI has come to the forefront of discussions as part of companies annual operating planning process. The attention given to packaging is mainly due to its rise as a viable marketing tool in part, because former disciplines such as TV advertising have faltered. In addition, organizations have come to realize that packaging is the most effective marketing vehicle in connecting consumers with brands since it occurs at the moment of truth, the store shelf. Increased competition from store brands has also created a heighten need to focus more attention to packaging and determining its effectiveness in growing sales and margin.
A 2007 pilot packaging study looking to bring the same kind of metrics used in radio and TV was cancelled when Procter & Gamble and Wal-Mart both pulled out this summer, highlighting the difficult task of persuading CPG marketers to share confidential data. The purpose of this document is to identify information that demonstrates that packaging can and does deliver a measurable rate of return for marketer.
