David vs. Goliath- the emerging market of small bean-to-bar chocolate makers and how packaging plays an important role

The competition in the chocolate industry isn’t as linear as it used to be with only the ‘big boys’: Cadbury, Nestle, Ferrero, Mars and Hershey, sharing territory and profits. This age has seen the introduction of a more diverse group of craft bean-to bar-chocolate makers. There is a niche in the market for this small group but first, they are tasked with prying away the ‘cradle to the grave’ brand loyalists from the big five. One apparent way that has evidenced itself in the way these competing David’s against the Goliath’s of the chocolate industry has shown itself, is through careful and innovative packaging. Bearing that in mind, this paper will look at various ways packaging influences consumerism and how it has made a former monopoly into a battle ground for the most creative minds.

Arguably, these companies do not have the disposable budget that is privileged to the big chocolate companies with regards to advertising. Therefore, they resort to a more packaging focused marketing tactic which is a cheaper and effective method that has a targeted and far reaching aspect to it. Specifically, packaging has three unique aspects of it that can influence consumerism and increase sales. 1) Packaging can be used to target impulse buyers not only by using promotional cues but most specifically, visual cues- students are found to be highly influenced by visuals. 2) Packaging is cheap and effective and when done correctly, allows the product to sell itself without much intervention. 3) Packaging can also be used as a tool for social and cultural consciousness. With the rise in interest of bridging gaps culturally in the face of increased globalization, chocolate packaging can be used as a tool to promote these ideals and garner patrons via shared ideologies.

The big chocolate companies over the last couple of years have kept packaging changes to a bare minimum because they have created a bond with their consumers where it is easy to spot a Snicker bar or M&M’s package from a mile away. These companies have relied on the ability of the consumer to recognize their package and help in sustaining sales. This is not so with the growing contenders in the chocolate industry. They do not have the recognizable packaging that these companies have established over the years. In order to break this boundary bean-to-bar chocolate makers have paid specific attention to packaging to target impulse buyers.

The moment one walks into a store, there is a small window of time for purchases that are on one’s list but majority of other purchases are impulse based buying. “81% of in store purchases are due to impulse buying, with a vast majority of these purchases being the design that catches the consumer’s eye” (Saka 2011). Within this small period of time and amidst a plethora of competition, these small chocolate companies are provided the opportunity to draw the attention of an impulse buyer or even a brand loyalist based on an elaborate packaging that peeks the interest of the consumer. The function of packaging design “has now transitioned into a primary tool used by organizations to make its presence felt in a crowd and sell products at point of purchase” (Saka 2011). Tying into the four P’s of marketing, packaging has now been contended as the fifth P, “Because it has now become an integral element of the modern lifestyle and the branding process” (Shekhar and Raveendran 2014).

The power of packaging based marketing with regards to product placement has garnered a momentum that cannot be denied, not only in the chocolate industry but across the board. It is so essential in the chocolate industry however because chocolate is such a high impulse purchase. Majority of consumers usually do not go into food stores with chocolate on their ‘To purchase’ list, it is something that we generally are persuaded to buy. A scientific study done to show the influence of packaging cues, found that students were greatly influenced in purchasing chocolate based on visual cues alone (Shekhar and Raveendran 2014).  This find is not surprising because the major consumers of chocolate are the younger generation as opposed to the older ones. This generation is also easily influenced to abandon brand loyalty for whatever happens to be ‘trending’ at the moment. The attention of the younger chocolate consumers can easily be persuaded by strategically placed cues.

There are various aspects of visual cues but the strongest draw to the subconscious is color and shape. “Color is the most important tool for emotional expression of a package because it reflects an image for the product” (Shekhar and Raveendran 2014). According to Jenn David Connolly, Color in food packaging is so important because it leverages our emotional connection to taste (Connolly 2013). To expound on this, she expresses what several colors denote in food packaging with Red and Yellow taking the chief lead in fast food industry packaging. Orange is said to be an appetizing color, white connotes clean and pure, brown and earth tones symbolize warm, appetizing, wholesome and natural, bright colors shows a pop in flavors and subdued-muted colors are for rich and deep complex flavors (Connolly 2013). Often times several colors can also influence our tastes, for instance, orange is usually associated with citrus, off white with vanilla and red with strawberry, this association of color with taste, ties into the “associational aspect of color” (Shekhar and Raveendran 2014).

The chocolate to a belgian recipe
The Chocolate to A Belgian Recipe. The peaches on the packaging signifies that the chocolate is “peach” flavored.

Shape is another visual cue that also influences the mind. “The shape of a package is normally the first thing a consumer notices in a store, an old fashioned shape of a package could suggest reliability and maturity to the consumer” (Shekhar and Raveendran 2014). The L.A Burdick chocolate package shape and color was so influential in persuading me to purchase my first chocolate bar from the chocolatier and I have since returned weekly ever since. There was something trusting in the brown, earthy envelope like package that assured me that this was a brand I could trust and the chocolate would be equally as sophisticated. The stamp visible in the front of the package had a personal feel as if the chocolate bar was specifically made for me.

LA burdick chocolate
The old fashioned look of the L.A Burdick chocolate packing makes it more trusting.

In the situation of an impulsive buy, the intention to purchase is determined by what is communicated at the point of purchase, the package is a critical factor in the decision making process because it influences purchase decisions (Shekhar and Raveendran 2014). The shape of a chocolate bar can also influence the way it tastes as Cadbury would rudely discover when it attempted to change “the rectangular chunks to carved segments” (Miller 2015), the company received a huge backlash of protest for their efforts. Packaging is a cheap and powerful method of marketing that is slowly changing what chocolate brands consumers patronize, “because it makes a difference in our subconscious mind in what gets noticed and eventually purchased” (smartmarketing n.d.).

The power behind successful packaging lies in its ability to allow the product sell itself. It has an extrinsic value to it because the information on the package is taken into account when deciding whether to purchase or not (Shekhar and Raveendran 2014). Packaging allows bean-to bar companies to cut their costs and get their brands out into the market without resorting to advertising. In certain ways, advertising can be limiting because it requires the perfect time slot or location for a billboard or a particular commercial to air on television. A good package is not burdened with these limitations, it has a “wider reach and has strong potential to engage majority of the target market. For a package to be effective it does however need to meet a few requirements. The package needs to be “attractive, informative and also identify with the product; it also needs to continuously communicate the product’s real benefits and create awareness to ensure image and brand preference” (Shekhar and Raveendran 2014).

Packaging is more influential than advertising because it clearly stimulates emotions in the consumer that advertising is not able to pull out. In purchasing decisions, the ability to see, feel and touch easily outshines the strategically filmed commercial any day. The human mind is exceptionally influenced when majority of the senses can be used to influence decisions. Packaging is no longer perceived as a method for safe and effective way to transport a product, but has now become a “contributing factor to its marketability, a vividly beautiful product, to some extent, develops a positive image about it in the minds of the consumers” (Vartak 2013). During the chocolate tasting in the Chocolate Class that held this semester, I was influenced by the artful way in which the Dick Taylor Craft Chocolate packaging was constructed and it seemed to amplify the taste of the chocolate.

dick taylor chocolate
Simplicity of Dick Taylor packaging allows one to focus on the chocolate itself.

The innovation that goes into packaging that clearly shows itself in the world of bean-to-bar chocolate makers today, is one that is clearly missing in the big chocolate companies; this ability to influence has however not gone unnoticed by them.  As of recent, Godiva has changed its packaging and has started marketing ‘specialty’ brands clearly aimed at consumers that are influenced by package based marketing

With the ever growing list of brands in the chocolate industry, loyalty for brand choice is fast becoming a dying era. Consumers are now resorting to more of an impulse buying and are eager to try new products prompting companies to spend more time on packaging based research to add value to their product via means of innovative packaging (Vartak 2013). With the aspect of packaging that leans on brand loyalty based on recognition, it is pertinent to small bean-to-bar chocolate owners to invest in this method of marketing to influence product sales. Not only does the package need to be attractive, it must also be recognizable in order to compete in a fast widening industry.

Gone are the days that consumers are ignorant about the source of their cacao that is sourced to make their chocolate. With increased awareness that has stemmed from globalization, people are more savvy with these  issues and in the face of a pressing need to bridge social and cultural gaps, packaging is used to create an awareness in ways that it never did before. For certain bean-to bar chocolate makers, this is an opportunity that they have already tapped into. The Divine chocolate advertising ploy of featuring women cocoa farmers in their chocolate packaging was a brilliant way to initiate conversation about the binary that has plagued Africa from time immemorial. “In their depiction of women cocoa farmers as glamorous business owners, the images provide a fresh visual re-framing of goods and capital between Africa and Europe and a contrast to postcolonial literature on state capital formations in Africa” (Leissle 2012). In this evocative marketing strategy, it additionally attempts to bridge the cultural gap between Africa as this ‘other’ and the Western world as the ‘isolationist’ that has made it so.

Divine Chocolate
Divine Chocolate
uses women cocoa farmers in ad campaign

Using the women farmers as models was also an effective way of injecting women into the conversation of cacao farming in a way that previously has not been a conversation point. It invites viewers to see women as potent actors in the world of cacao sourcing and chocolate making in addition to being beneficiaries of these same exchanges (Leissle 2012). Another chocolate maker that has followed a similar part is Camino chocolate, “the word Camino stands for “path”, the chocolate packaging futures an intricate design of quirky-named streets with illustrations reflecting the happy, vibrant and sustainable communities’ that Camino supports through its fair trade practices”(Canadian Packaging Staff 2011).

Camino Chocolate
Camino Chocolate
Street paths and names outlined in packaging

Camino chocolate has tapped into packaging as a way to create social awareness of cacao sourcing and the communities that are sustained by this arrangement, thereby aptly informing chocolate consumers with regards to the origins of cacao used to produce their chocolate.

Through the use of innovative packaging, bean-to-bar chocolate companies are now able to influence consumers and create brand loyalty with their product. As the chocolate industry continues to evolve, it will be greatly interesting to see how the ‘big boys’ of chocolate push back against this marketing tactic. It is no longer enough to ply consumers with advertisements, people are becoming a lot more informed about the products they choose to consume and packaging is used as an influential tool in a way advertising is simply unable to do. As more bean-to- bar companies emerge, there will also be a rise in competition between these companies and at that time, perhaps the influence of packaging will need to be re-valuated and perhaps tweaked in other ways. For now, it is clear that the ‘big five’ have competition knocking on their doorstep and it would be ill advised to ignore it. Packaging is the next big thing and it has already arrived for many.

Bibliography

Burdick, L.A. n.d.

Canadian Packaging Staff. 2011. “Social Consciousness right on the package.” canadianpackaging.com. January 28. Accessed May 6, 2016. http://www.canadianpackaging.com/general/social-consciousness-right-on-the-package-21742/.

Connolly, Jenn David. 2013. Colors That Influence Food Sales. September. Accessed May 6, 2016. http://jenndavid.com/colors-that-influence-food-sales/.

http://www.lasiembra.com/camino/en/chocolate-bars/almonds. n.d. “Camino Chocolate.”

Leissle, Kristy. 2012. “Cosmopolitan cocoa farmers: refashioning Africa in Divine Chocolate advertisments.” Journal of African Cultural Studies (Routledge) (24:2): 121-139. Accessed May 6, 2016. http://dx.doi.org/10.1080/13696815.2012.736194.

Miller, Meg. 2015. “How Packaging Influences The Way We Taste Food.” fastcodedesign.com. October 27. Accessed May 6, 2016. http://www.fastcodesign.com/3052745/evidence/how-packaging-influences-the-way-we-taste-food.

Mosina, Olga. n.d. “The chocolate to a belgian recipe.”

Saka, Kwadwo Emmanuel. 2011. The Design of Packaging Graphics for the Expansion of Ghanian Chocolate Products. Graduate Dissertation, Digital Depository Iowa State University.

Shekhar, Suraj Kushe, and P.T Raveendran. 2014. “The Power of Sensation Transference: Chocolate Packages & Impulse Purchases.” Indian Institute of managment Indore 1-10.

smartmarketing. n.d. “How Can Packaging Increase Sales.” smartmarketingasia. Accessed May 6, 2016. http://www.smartmarketingasia.com/how-can-packaging-increase-sales/.

Vartak, Darshan. 2013. “Branding And Packaging For The Globalized Market.” packagedesignmag.com. October 18. Accessed May 5, 2016. http://www.packagedesignmag.com/news-from-our-readers/branding-and-packaging-for-the-globalized-market.

W, Brigette. 2015. “Dick Taylor Takes Chocolate Back To Its Roots.” February 7.

 

 

 

 

 

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