The Performance of Packaging
This memo began as I was diving into Graza’s success - they really struck oil.
In an article published by CNBC, Graza was projected to reach over $48M USD in revenue in 2024.¹ I dug deeper into the key to their success: the packaging. Don’t get me wrong, consumers loved the high-quality olive oil inside the bottle. But it was the functionality of a squeeze top and the shelf appeal of the bottle’s colour and label that made it go viral. For several months Graza green was all over my feed.
As a marketer, I wanted to understand why consumers were rushing to supermarkets to get a pantry staple.
Why were consumers and influencers posting about it? I landed on two, likely obvious, conclusions:
People desire to create an identity for themselves.
People are heavily influenced by others.
There are many terms for these phenomena in psychology and consumer behaviour.
Ideal Self vs Real Self is a theory developed by Carl Rogers. He suggests that there is the person you would like to be (ideal self) and the person you actually are (real self). And there is an innate need to achieve congruence between the two selves - or at least that high congruence between the two lends to self-confidence.²
Self-expression consumption refers to buying behaviour associated with the fundamental desire to create and maintain an identity. Oyserman applies the identity-based motivation model to consumer behaviour, highlighting that even utilitarian purchases are identity-driven.³
Social proof is a behavioural pattern that suggests individuals copy the actions of others. Robert Cialdini says it best: “One means we use to determine what is correct is to find out what others think is correct.” ⁴
The Reference Group Influence is another social phenomenon where an individual conforms to group pressure. In his paper, Hyman explores how individuals change behaviour to fit into a reference group and the effect reference groups have on aspirations.⁵ Essentially, consumers are likely to purchase products to fit into a group they aspire to be a part of.
The Bandwagon Effect and the Snob Effect are two contrasting dynamics. In the 1950s, economist Harvey Leibenstein explored how consumers conform to trends, increasing demand as popularity grows. However, he also observed the opposite effect. In some instances consumers seek unique and exclusive items.⁶
The Mere-Exposure Effect, studied by Zajonc in the 1960s, demonstrated that the more a subject was exposed to stimuli the more fondly the subject responds to it. Meaning that the more you see something the more you like it.⁷
These phenomena demonstrate that:
Identity drives purchasing decisions but there’s a gap between who we want to be and who we are
We copy to fit in, except when we want to stand out
The more you see something, the more you like it
How does this translate into packaging? By creating packaging that links to self identity and that is designed to be shown and shared. Let’s explore examples of packaging strategies I’ve been inspired by.
1: Glow in the dark packaging
Prime Hydration launched the flavour Glowberry. They added a glow in the dark feature to the packaging. In a dark public setting, this certainly turns heads and garners interest. I like that this execution extends the product’s use cases. Adding this feature means consumers will want to drink it at night - a time when hydration likely isn’t top of mind. This expands the usage occasions potentially increasing consumption.
Takeaway: extend use cases
2: Whipped sunscreen
Vacation launched a whipped sunscreen. Here’s why I love it. Applying something that feels like whipped cream all over the skin feels luxurious. A far better experience than an oily spray or a white-cast cream. The positive experience will certainly encourage people to apply it more often - a win for Vacation and for sun protection. Also, the unmistakable sound this product makes when dispensed must turn heads at any beach or pool. People would pause to figure out what is being applied. A great example of surprising consumers to gain more impressions.
Takeaway: make it audible
3: Portability
I love a good sauce. Aioli, sour cream, peanut sauce, salsa verde - the list is endless. If you're a sauce brand with a cult following, consider mini keychain bottles. Sriracha launched a mini hot sauce bottle. The rise of the bag charm trend presents the perfect opportunity to let your die-hard loyal customers carry around their favourite sauce for all to see.
Takeaway: make it an accessory
4: Reusability
Packaging that is designed to be reused is a great way to ensure your brand lives on after use. Glossier did this with their pink zipper bubble pouch that came with all orders. This isn’t exactly the packaging, it’s the mailer that protects the packaging in transit. But it was cute and functional, so consumers kept it. Another example is Bonne Maman jams. Bonne Maman uses glass jars debossed with their logo, so it’s visible when the label is removed and the jar is reused.
Takeaway: build a lasting presence
5: Stand Out LTOs
Perrier does a great job of creating the feeling of scarcity despite marketing a commodity by working with designers and artists to launch limited time offerings. In 2021, Perrier launched bottles designed by Murakami, a renowned contemporary artist known for his colourful smiling flowers. The ubiquitous green bottle (No, not Graza. Perrier.) now with brightly coloured flora all over surely influenced some consumers to make a purchase.
Takeaway: build scarcity
6: Out of category packaging
A fantastic example of out of the norm packaging is Engine’s Gin. This gin is served in an oil can - not what you’d typically be looking for on the shelf. But the team really drove it home with the branding. Choosing a name like Engine fits perfectly with the brand's roots of Alta Langa, Italy. And a harmonious fit with the packaging design inspired by fuel cans, motocross, and racing.
Takeaway: subvert expectations
Graza’s success in the market is largely attributed to its functional and aesthetic packaging. The Graza Girlies were onto something: packaging matters because it taps into identity and social influence. Theories behind self-concept and influence have been discussed and studied at length since the early 20th century. Marketers can, and should, be building packaging that leans into personal identification and interpersonal persuasion. Extend the product’s use cases through packaging. Make it audible to make it seen. Make it an accessory for customers to carry around and make it reusable so they can be seen with it. Build scarcity to build demand. And subvert packaging expectations by looking out of category.
These are the ways packaging execution has inspired my thinking around brand building - what’s inspiring you?
Sources:
1: Malisnki, G. (June 7, 2024). 31-year-old built a company that could bring in $48 million this year—all due to olive oil. CNBC. https://www.cnbc.com/2024/06/07/how-graza-olive-oil-co-founder-andrew-benin-built-the-business.html
2: Rogers, C. (1961). On Becoming A Person: A Therapist’s View on Psychotherapy.
3: Oyserman, D. (June 27 2009). Identity-based motivation and consumer behavior. The Journal of Consumer Psychology. https://doi.org/10.1016/j.jcps.2009.06.001
4: Cialdini, R. (2006). Influence: the psychology of persuasion. https://ia600203.us.archive.org/33/items/ThePsychologyOfPersuasion/The%20Psychology%20of%20Persuasion.pdf
5: Hyman, H. H. (1942). The psychology of status. (PhD dissertation). Columbia University.
6: Leibenstein, H. (1950). Bandwagon, snob, and Veblen effects in the theory of consumers' demand. The Quarterly Journal of Economics. https://doi.org/10.2307/1882692
7: Zajonc, R. B. (1968). The Attitudinal Effects of Mere Exposure. The Journal of Personality and Psychology. https://www.researchgate.net/publication/224982289_The_Attitudinal_Effects_of_Mere_Exposure
