Welch Foods has turned a patriotic promotion for the Fourth of July into a dedicated marketing program designed to spur sales of its sparkling juices throughout the year.
Up until last year, 85% of Welch's sparkling juice sales were made during the holiday season. But thanks to new promotional packaging, the company has made the juices relevant for four other times of the year: Valentine's Day; Easter/spring; May/June, when weddings, graduations and other celebrations are held; and Halloween.
"Welch's has made a year-round business out of what once was just a holiday product," said Russ Napolitano, executive vice president and partner, Bailey Design Group, Plymouth Meeting, Pa., the design firm that developed the packaging.
The effort began last summer, when Welch's, Concord, Mass., used a shrink-wrapped packaging process to wrap the entire bottle of its two sparkling juices -- Concord grape and white grape -- in red, white and blue stars and stripes for the Fourth of July.
The highly visible packaging did a great job of generating awareness of sparkling juices, a small segment of the juice category, said Larry Keenan, product and business development manager, sparkling juice, Welch's.
"We are giving consumers what they want: a product that makes them feel good about what they are buying, as well as something special and unique for the celebration at hand," said Keenan.
While promotional packaging is largely used during the Christmas season, marketers like Welch's are expanding their use of it to other holidays and seasons, as well as for sweepstakes, consumer loyalty and simple brand awareness, according to Gary Chiappetta, president, Brandscope, Chicago, a marketing and design company. Promotional packaging is a good tool for marketers to use to compete in these recessionary times, provided that their brands have longevity. Such packaging is more appropriate for companies that have maintained a brand promise, as opposed to an upstart brand that's struggling for market share. Promotional packaging also works better in some categories, particularly consumables, than others.
"For brands that have been around for a long time, it's a great way to revive a brand or draw attention to it," said Chiappetta. "These brands can use seasonal or promotional packaging without hurting sales or degrading brand equity."
A number of factors have led to new opportunities in promotional packaging, said Chiappetta. Due in part to the dot-com bust, the slowing economy and the effects of Sept. 11, consumers are now more introspective. This has had an impact on their buying habits. They're now buying based on what makes them feel safe and secure. In most cases, they prefer brands that they've known and trusted for years.
"Consumers are building walls of security with brands they've known," Chiappetta said.
Christy Russell, director of business development, MLR Design, Chicago, a brand-identity design company, concurred that because of today's economic situation, there's more emphasis on packaging as a way to build brands and stimulate sales.
"Marketers are turning to packaging more than ever before because it's relatively inexpensive compared to television and radio advertising," she said.
Although consumers expressed a willingness and desire to buy sparkling juices at other times of the year, manufacturers and retailers rarely promote the segment outside the Thanksgiving-to-New Year period, according to Keenan. All that changed thanks to the shrink-wrap packaging Welch's used. The packaging used was cost-effective in that the company didn't have to change the look of the bottle itself. This meant it could use its regular bottles as part of a promotional program.
"Using shrink-wrap allows marketers to control the cost, as well as inventory," said Napolitano.
Welch's predicts that the packaging will increase its sparkling juice sales by 40% over the next few years, according to Keenan.
While promotional packaging is a good way to draw attention to the brand, marketers need to be careful that they remain true to their brand message. Welch's made sure it did just that.
"Our equity statement talks about how the brand name of Welch's evokes positive memories of childhood and family. Our new packaging is a natural fit with what Welch's means to the consumer," Keenan noted. In each design, the Welch's brand name is featured prominently on the front -- above the identification of the sparkling juice type. Both varieties are clearly conveyed on the packaging through typography and colorful illustrations of the grapes. Each variety is also featured on the neck collar.
The packaging has also helped its trade relations because by getting the Welch's brand of sparkling juices noticed, it heightens awareness of the entire juice category.
"It's hard to walk down the aisle without seeing [the packaging]," Keenan said. "It is sparking category growth, and the sales are completely incremental." Keenan noted that the effort has helped the company get additional display activity.
While Welch's opted for a disposable promotional package, other marketers are opting for recyclable packaging, specifically decorative tins.
Martin's Potato Chips -- a Thomasville, Pa., manufacturer of kettle-cooked chips that has distribution in Pennsylvania, Maryland and parts of Virginia and West Virginia -- has used promotional tins several times. Its most recent effort came just a few months ago, when it marketed 13,000 limited-edition 60th anniversary tins primarily in floor displays.
"We wanted to use a package that people could put into their homes as a keepsake and wouldn't be thrown away," said Kevin Potter, vice president of sales and marketing, Martin's.
While Martin's has used generic tins in the past, this was the first time that it personalized them with the Martin's brand name.
"Brand-building is all about keeping a brand in front of the consumer," said Potter.
Promotional and decorative tins offer the user a unique, fully recyclable and environmentally friendly package that is rarely thrown away after the product is used, said Frank Shriver, vice president of sales, Independent Can Co., Belcamp, Md., the metal packaging company that designed the Martin's tins.
"Tins advertise the qualities of the product long after the product has been consumed," Shriver said. "Oftentimes, tins end up as collector items or used as a decoration in a home or office for years."
Tins are a common form of packaging in Europe, where consumers enjoy the gift-giving value they provide. Here in the United States, interest in tins is increasing as well, said Shriver.
"On the retail shelf, you only have one to three seconds to catch the consumer's eye," he said. "The eye appeal and feel of a printed or embossed tin differentiates the tin from the rest of the players."
Many companies have found that it is a good investment to pay a little more for the package to promote themselves and their brand as a premium item, Shriver added.
