How To Gain A Competitive Edge Through Packaging

Have you ever gone to a fast food restaurant anddollar amount. You could also offer discounted lift
ordered a "value meal" a fixed price combo thattickets or lodging at popular ski resorts. Combine the
usually includes a sandwich, fries, and a beverage?ski sale with a waxing service and adjustments the
Chances are, you have. What you may not havefollowing season, a great way to get them back in
realized, however, is that your lunch was an exampleyour store a year from now.
of one of the most powerful marketing tools yourNo matter what type of business you're in, you could
business has: strategic packaging.put together a package that will give you a
Most business owners don't appreciated orcompetitive edge. For example, mechanics could
understand how easy and powerful packaging can beinclude an oil change with every comprehensive break
in their business and marketing activities, regardlessjob or car wash coupons with every tune-up. You
of the type of business they're in. Strategiccould also offer products along with your service: a
packaging is simply the combining of products anddentist could offer a new toothbrush with every
services to make what you offer to yourcleaning; a hair salon could offer shampoo and
marketplace so irresistible, so incomparable, soconditioner samples with every haircut. The
compelling that it becomes almost impossible for yourpossibilities are endless.
prospects and customers to say "no."Your challenge and goal in your business is to identify
The essence of packaging is to give such a highand focus on all the different products or services
perceived value, people cannot help but want to buy.you can package together to make a more
This not only attracts new customers, but also helpsappealing, exciting, value-oriented purchasing
you sell more to existing ones.proposition.
How do you get such a good value? First you haveStrategic packaging gives you four competitive
to identify what I call "the cycle of business life." Thisadvantages:
is simply the logical progression of buying activities* It makes your product unique, different, more
that people will normally engage in prior to, during,appealing. While everyone else is offering a generic
and after they buy your product or service.commodity, you're offering a unique proprietary
Think about your typical customer. Write downpackage. You're offering a different configuration, a
everything they're likely to buy prior to calling, visitingdifferent look, a different combination. More value for
your business, or Web site. Next, determine whatthe customer's dollar.
they buy and how much they usually spend. Write* It makes decision-making easy. Your customer
this all down. Write down or input into your databasedoesn't have to wonder where to go for his or her
everything they're likely to buy afterward, bothnext purchase. It creates a turnkey operation.
products and services.* It's guarantees the consumer that he or she can
Now ask yourself, how can I combine my product ortrust all the elements of the package. Remember,
service with the item that normally coincides with oralways guarantee the package you're offering.
follows mine. For example, suppose you sell sporting* It gives the customer, greater value. Instead of
goods. It's winter, so skis are probably going to be ahaving to cut your profit margin on your product or
big seller. What else is the consumer likely to buyservice, you can get full profit on your product when
right before, during, or after purchasing a pair of skis?you throw in two or three other products or
How about a pair of ski boots or a ski jacket? Theyservices that you reduce your profit margin on.
might be thinking about buying a ski hat or a pair ofWhen you offer strategic packaging your customers
gloves. A little further down the line, they might beget a very high perceived value, because they feel
interested in lift tickets at nearby ski resortsthey're getting savings across the board on all the
Any of these items or follow-up services could beproducts they're getting in the package. It's a win-win
used in a packaging or add-on strategy. For example,situation. Your prospects and customers get the
you could offer a free pair of top-of-the-line gogglesvalue they want and you improve your bottom line.
with every pair of skis you sell. Or, you could includeCopyright©2006 by Joe Love and JLM &
a set of poles with any ski purchase over a certainAssociates, Inc.