Proteus' Paul Metaxatos, vice president of product development, and Bill Sterling, vice president of visual communications, offer their thoughts about the critical roles quality industrial and graphic design play in market success.
Quality design is your best defense against commoditization and private label.
Let's face it: manufacturers are constantly on edge these days, because there's such a high level of risk behind every product they develop and launch. They can't afford a failure, yet the odds against success are huge. Shelf space in the lucrative Big Boxes - Home Depot, Lowes, Target and WalMart - comes with a price. One way to reduce that risk is to employ principles of quality design throughout your product and merchandising development process.
Proteus has a specific definition for it. When we use the term "quality design," we're talking about products that are well conceived based on consumer insights, validation with consumer research, correct positioning, dynamic packaging, fair prices and strong branding. In short, we're talking about products that drive people to the stores.
When manufacturers have a strong brand, when they innovate, when they demonstrate that they understand consumers and know how to satisfy their needs - that's when they have a leg up. And having a leg up has never been more important.
We were asked recently at a presentation we gave to the In-Store Marketing Institute if we thought Big Box retailers and manufacturers have the same goals. Our answer was conditional: "Make no mistake." "They are both focused on making money and both want to make the best margins possible. But a lot of times the Big Box retailers will develop their own line of products because of voids they perceive in the marketplace."
"In this situation, it is imperative that manufacturers find ways to do things better. Retailers want to do business with manufacturers who proove to them that they've got products that are not only going to sell, but that give the retailers innovative programs to attract new customers."
Understand that everyone is feeling pressured.
We don't have to tell you that, as a manufacturer, you are facing all kinds of pressures these days - from rising material and manufacturing costs, to competitors vying for the same retail floor and shelf space, to market saturation generally. But guess what? You're not alone.
Big Box retailers have pressures of their own: fierce retail competition, keeping up with changing consumer needs, delivering high quality products at low prices and minimizing returns.
And consumers are facing growing pressures, too. Among them are limited disposable income, too little time and too many options to choose from when they go to shop.
That, in a nutshell, is the underpinning of today's retail environment. It makes it all the more incumbent upon you to get some things right.
Get your products right.
In an age of commoditization, the way your product is designed, branded and positioned is your ace in the hole. Otherwise, you might as well go to China and take an off-the-shelf variation of what already exists.
Attention to detail is paramount. You want to make sure that the materials, fit, finish, functionality, packaging and merchandising of your product are first-rate and in alignment with your brand promise. The little details really matter.
In that regard, there is no substitute for working closely with your internal or external product development experts. When you do, the results are obvious: your product will please consumers and, most importantly, won't get returned. Ask any Big Box retailer what fewer returns mean to them.
Get your message right. Get your branding right. Pay attention to the customer experience.
Make sure that your graphic communications address the four stages of the retail consumer experience: attract, inspire, engage and reassure.
Understand that your packaging and merchandising has double duty to do.
Big Box relies on packaging and merchandising to help the consumer understand the products being sold in their stores. Packaging and merchandising also help educate sales associates. So they're tools not just for the consumer but also for internal sales associates to help them understand your product line.
Mother Nature has changed the rules of packaging.
Make sure you constantly weigh the fine lines that exist relative to packaging. They are the lines drawn between ease of use, sustainability and durability in a very tough retail environment. Packaging can suffer abuse before it even gets to the consumer. With environmental issues at the forefront of many consumers' minds, manufacturers have to make sure that they haven't "over-packaged" or "under-packaged" their products. There's a lot at stake in terms of creating a positive experience for the consumer, and packaging plays an important role in it.
Finally, a few very important words about line reviews.
Think about this: If you go into a line review with a rough sketch of your products and your competitors go in with full-blown functional prototypes, sample packaging, prototype merchandising, consumer research and a polished, professionally designed presentation, guess who's going to get the business? You need to be the experts at educating your retail customers on the markets, products and consumers you serve, and your presentation should reflect that.
Treat the line review as a do-or-die situation. Because, in point of fact, it is.