New analysis published by Smurfit Kappa has highlighted a significant opportunity so far being largely missed by brands - shelf-ready packaging.
The white-paper report, ‘Marketing on the shelf – exactly how in control are you?’, reveals that, despite 76% of purchase decisions being made by shoppers in-store, many brands are missing out on a growing trend towards shelf-ready packaging - products delivered to a retailer in a ready-to-sell, merchandised unit - as a measurable way to influence shoppers directly at the point-of-purchase.
Smurfit Kappa found that up to 40% of a product viewed on-shelf can be made up of secondary packaging, a valuable marketing channel that often falls outside the radar of brand teams.
Arco Berkenbosch, VP marketing, research and development, Smurfit Kappa, said: “Our
analysis found that there is approximately 125m2 for brands to market to shoppers at the point of purchase in a typical European supermarket, through shelf-ready packaging. “That would normally be regarded as an important marketing channel with brands doing everything they can to take advantage of it. If compared to the cost of a typical 6-sheet poster site, for example, in advertising terms that’s the equivalent of €424,320 of additional marketing per store every year3. Across the whole of Europe this equates to a multi-million euro channel available to brands.
“In a more complex retail world where marketers have to work even harder to compete for shopper attention, this represents a sizeable opportunity. Yet, it largely remains one of the most under-utilised parts of the marketing mix and one which still rarely makes it onto the priority list of most brand directors. In reality, it is one of the last areas in-store that offers new marketing opportunities at the point-of-purchase.”