BUS 808 Master Thesis in International Marketing & Brand Management Packaging Design as a Brand‐building Tool Date: 28‐05‐2008 Authors: Mads Brodersen Penka Manolova Supervisor: Christer Kedström Abstract Title: Packaging Design as a Brand‐Building Tool Date of the Seminar: 4th of June, 2008 Course: BUS 808 ‐ Master Thesis in International Marketing & Brand Management Authors: Mads Brodersen & Penka Manolova Advisor: Christer Kedström Keywords: Packaging Design, Brand‐building, Brand Communication, Brand Management, FMCG, Retail Environment, Consumer behaviour Thesis aim: The aim of this thesis is to provide practitioners and academicians alike with a better understanding of how packaging design can be used to create strong brands in the fast moving consumer goods sector (FMCG) in the Scandinavian market. Methodology: Based on the aim above, our paper is guided by the philosophy of the social constructivist school. To fulfil the aim of the thesis a qualitative research strategy is employed. Theoretical perspective: The study is based on packaging theory, branding theory, communication theory, consumer behaviour theory and visual theory. Empirical data: The empirical data was collected by conducting in‐depth interviews with all the industry stakeholders concerning packaging design in the FMCG sector (manufacturers, packaging suppliers, retail consultants and academicians) and by conducting focus groups and photo‐elicitation with consumers. Conclusion: We found that packaging design has the potential to become a brand‐building tool, even for FMCG products. If companies learn to involve all the stakeholders in the design process and manage to create coherence between the sent and the received brand message, it is possible to communicate a brand identity through packaging design that matches the image the consumer has of the brand. Succeeding in this will lead to stronger brand equity. The models presented in the thesis lay the basis to understanding these factors and should function as a guiding tool for marketers when implementing packaging design as part of their branding strategies. Further they lay the foundation for future research in the fields of packaging design and branding. i Acknowledgements Writing this thesis would have been impossible without the assistance of SCA Packaging, Beiersdorf, Jesper Clement and Retail House. Therefore we express our deep gratitude to them for helping us follow our instincts and develop our ideas. We also would like to personally thank our supervisor and mentor Christer Kedström and our workshop group who supported us throughout these past months and provided us with valuable feedback to make our work better. Kolding, 28th May 2008 Mads Brodersen & Penka Manolova ii Table of Contents ABSTRACT ......................................................................................................................................................I ACKNOWLEDGEMENTS..................................................................................................................................II CHAPTER 1 ‐ INTRODUCTION .........................................................................................................................1 1.1 MOTIVATION ................................................................................................................................................. 1 1.2 PROBLEM FORMULATION ................................................................................................................................. 2 1.2.1 Practical problem ............................................................................................................................ 3 1.2.2 Theoretical Problem ........................................................................................................................ 3 1.3 AIM ............................................................................................................................................................. 5 1.4 FOCUS & DELIMITATIONS ................................................................................................................................. 6 1.5 PAPER OUTLINE .............................................................................................................................................. 8 CHAPTER 2 ‐ ABOUT PACKAGING DESIGN ......................................................................................................9 2.1 THE VISUAL ELEMENTS OF PACKAGING DESIGN................................................................................................... 10 2.1.1 Colours........................................................................................................................................... 10 2.1.2 Shape............................................................................................................................................. 11 2.1.3 Graphics ........................................................................................................................................ 12 2.2 PACKAGING DESIGN IN THE MARKETING MIX ..................................................................................................... 13 2.2.1 Packaging Design and Product...................................................................................................... 13 2.2.2 Packaging Design and Price .......................................................................................................... 13 2.2.3 Packaging Design and Promotion ................................................................................................. 13 2.2.4 Packaging Design and Place.......................................................................................................... 13 2.3 PACKAGING AS A BRAND VALUE CREATOR ......................................................................................................... 14 CHAPTER 3 ‐ CREATING STRONG BRANDS ....................................................................................................15 3.1 BRAND‐BUILDING.......................................................................................................................................... 16 3.1.1 Stages in the Brand‐building Process ............................................................................................ 18 3.1.2 The Brand Identity Prism............................................................................................................... 20 3.2 BUSINESS‐TO‐CONSUMER COMMUNICATION ..................................................................................................... 21 3.2.1 Creation and Negotiation of Meaning .......................................................................................... 22 3.2.2 Storytelling .................................................................................................................................... 22 3.2.3 What is a Strong Brand? ............................................................................................................... 23 CHAPTER 4 ‐ HOW WE BUY ..........................................................................................................................24 4.1 HOW WE BEHAVE ........................................................................................................................................ 25 4.1.1 Traditional Decision Making Process............................................................................................. 25 4.1.2 Low‐involvement purchase decisions ............................................................................................ 25 4.1.3 Consumer Loyalty.......................................................................................................................... 26 4.1.4 Unplanned Purchases.................................................................................................................... 26 4.1.5 Consumer Memory & Learning ..................................................................................................... 26 4.1.6 Perception ..................................................................................................................................... 27 4.2 HOW WE SEE .............................................................................................................................................. 28 4.2.1 Visual Attention............................................................................................................................. 28 4.2.2 Visual Semiotics............................................................................................................................. 29 4.3 CREATING A FRAME OF REFERENCE ................................................................................................................... 30 CHAPTER 5 ‐ METHODOLOGY.......................................................................................................................32 5.1 THE RESEARCH PROCESS ................................................................................................................................33 5.2 PHILOSOPHICAL POSITION ............................................................................................................................... 34 5.3 APPROACH TO THEORY‐BUILDING..................................................................................................................... 34 5.4 RESEARCH STRATEGY – QUALITATIVE...............................................................................................................