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Nielsen Examines the Impact of Package Design

Millennials are more influenced and willing to pay more for good package design than other demographics, as 68% of the cohort purchased a product based solely on its visual design, according to Nielsen.

The 2018 Nielsen Design Impact Awards recognized successful food package redesigns by products including Fairlife, Ice Breakers Ice Cubes, Sabra Guacamole and Tessemae’s Salad Dressing.

Optimized package redesigns generate an average 5.5% increase in forecasted revenue when compared with current package designs, according to Nielsen.

Fairlife was recognized as the most impactful redesign, which it underwent a year after its national launch in 2015 to set itself apart in the dairy aisle. The redesign led to 55% sales growth after the first year, growing faster than the entire organic, plant-based and dairy alternative segments combined. Fairlife’s new design was perceived as 2.5 times better at conveying its strategic intent, according to Nielsen.

Ice Cubes was the last of Ice Breakers’ sublines to get a redesign, and the missing piece of the puzzle for Ice Breakers’ new visual identity, resulting in 18% sales growth. The new design consistency across the Ice Breakers line encouraged consumers to buy products they might not have tried before. At the time of the Ice Cubes redesign, Ice Breakers as a parent brand was not advertised, so the 18% sales growth that followed was driven by the new design, and Ice Cubes saw a 6% increase in distribution with the redesign, Nielsen noted.

As for the honorable mentions, Sabra Guacamole’s package redesign led to double-digit sales growth a year after its debut, and 89% of guacamole consumers considered the new design to fit well with the existing Sabra brand. Tessamae’s Organic Salad Dressing redesign showcased an easy-to-navigate system for the product’s health benefits and resulted in almost 200% growth in sales, Nielsen found.

For the full story, go to this week’s Food Institute Report.