The role of practicality in packaging and the evolution of markets

Some emblematic cases: Argentina, Italy and France

Since packaging was first invented there’s been a notable evolution in terms of practicality. If we go back a century its purpose was to simply contain and protect the product, but this soon changed to meet the ever-changing needs of society. In particular, when supermarkets started opening with modern retail chains to cater for mass consumption, packaging had to assume the role originally played by the manufacturer, informing and reassuring the purchaser in terms of what they were buying. In the post 2nd World War period, with an exponential increase in the quantity of goods, the pack became essential as a way to identify the product, make it stand out from the competition, often with specific features so it was univocally recognisable, and for some successful products it even became part of the brand identity.

More recently, as our daily needs changed, packaging made a leap into a new dimension to become a packaging-service. In other words it was no longer just an object, it was now a multifunctional instrument necessary to simplify and streamline the stages involved in consumption. Packaging that saved time, let you open and close the packet with one hand, quickly heat things up, preventing spills became vital features for the success of a product. Practicality and user-experience were fundamental for customer loyalty, in order to acquire new market niches in a context of cutthroat competition. Packaging become so important in fact it even influenced market trends and consumer behaviour, in some cases creating scenarios that were diametrically opposed. The following are some examples of this, from our direct experience.

A comparison of the Italian and French sugar markets

In the 1960s the French and Italian sugar markets were quite similar: in both countries sugar was packaged and distributed mainly in paper bags, while paperboard boxes were used to a much lesser extent. One forward-thinking French company “Saint Louis Sucre” decided to invest in making paperboard boxes more practical by using the Tacom PAC Spout dispensing system that could be used to open the carton and close it again. This spout became very popular in France and was affectionately called the “ Bec Verseur”, as people could use the carton directly on the table without having to pour it into something else, and close it again to avoid spills, while keeping the product fresh and dry, protected from damp and insects. In just a few years, thanks to these additional practical features, twice as much sugar was sold in boxes as in paper bags. The success of this packaging solution and its practical features, as well as creating loyal consumers who became used to a new and simpler way of adopting the product, caught the attention of other big companies, including a major competitor Beghin Say, who quickly adopted the “bec verseur”. The “bec verseur” spout became a famous feature of the much-loved powdered milk Régilait, the new “Léa Nature” ecological detergents, and the products of important brands that had been producing health food for years like Nutrition & Santé. To this day in France, boxes with the “bec verseur” are used on a daily basis by most of the French population, because that’s what they want.

In Italy on the other hand, where boxes made of paperboard or cardboard were only used as primary packaging for the purpose of transportation, with no new functional-service features for the consumer to keep pace with the evolution of the modern market, sales of sugar in boxes dropped off. Today, with sugar boxes that are difficult to open, can’t be closed again and are impractical to use, most sugar is sold in paper bags, which means lower profit margins for sugar companies.

This clearly shows that, when consumers are satisfied with a new, practical and efficient solution, they don’t mind spending a bit more for the additional practical features and the quality of the supplementary service provided. In fact, the perceived value of the product with a functional pack, for a consumer, justifies a higher price (in this specific case for sugar the equivalent of €20 cents), giving the company considerably higher margins. In the above case, the company decided to invest in the pack to stand out from the crowd with the new practical features, and the enterprising decision paid off despite the notoriously difficult and highly competitive sugar and salt (commodities) market.

In short, meeting the consumer’s needs with practical packaging pays off for proactive companies who invest in new solutions, increasing profit margins and introducing benefits not only for the company, but for the entire sector, taking a step in the right direction by redefining the purchasing behaviour of the majority of consumers.

Paperboard boxes on the Argentinian salt market

The story of how paperboard boxes were introduced on the Argentinian market is also significant as it’s based on, and has evolved around, two important premises: in the 1990s the Argentinian salt market used plastic bags exclusively, and the purchasing power of consumers was a lot lower than in Europe. These two conditions appeared to be incompatible with the idea of introducing a new type of pack in the form of a paperboard box. The forward-thinking market strategy of the company Timbo however, with its famous Celusal brand, changed things in quite a surprising way. In 1996 the company decided to introduce a paperboard box with a PAC Spout dispensing system they called “Pico Vertedor”, which was such a success: they saw a net increase in sales that forced their competitor Compañia Introductora, the leader on the market at the time, to take steps with its brand Dos Anclas. In fact, approximately one year later, they revised their offer to avoid losing their market share.

Despite the fact that the Argentinian market is less prosperous than its European counterpart, in just 3 – 4 years salt in paperboard boxes amounted to 20-25% of the salt sold in supermarkets. It was the beginning of a cultural change for consumers, and increased profits for salt producers, due to better profit margins. A paperboard carton in fact, combined with numerous added practical-service functions offered by the spout, produces a notable increase in the perceived quality of the products inside the pack for the consumers buying them, improving the brand’s image and increasing its visibility. This is why, also in difficult contexts like the Argentinian market, consumers are willing to pay more for quality packaging. The surprising evolution of the paperboard box in Argentina proves how new packaging features can be the ideal way to convey this idea of a product of added value to the public. It’s a choice that in certain contexts may even seem rash, but it’s proven to be a winner in time.

Conclusion

Today, technology, innovation, efficiency and resourcefulness play a fundamental role for manufacturers and for the evolution of markets. After decades of experience, it’s clear that when consumers have a choice, they prefer packaging that’s more than just a pretty container for the product. They choose packaging that meets requirements that today cannot be set aside, well defined practical-service features, such as easy product dispensing for example, or being able to close the pack again hermetically to keep the contents fresh, and above all packs that can be used without having to pour the contents into something else, because even if it costs a bit more, it’s worth it. Even on less prosperous markets in fact, practical, quality packaging means a significant boost in sales, gradually modelling and changing the habits and behaviour of consumers in a variety of different countries.