The Top Five Benefits of Outsourcing Your Packaging Strategy
The outsourcing of branding and promotions to marketing agencies for a brand is not a new strategy. It has been a proven practice since agencies opened their doors. At the same time, there are branding strategies that are always changing, so there is a steady learning curve to keep up with. Competing brands and the ever-changing demands of consumers challenge in-house teams to stay on top with new trends while maintaining day-to-day work, and has created the perfect storm of requirements. Nowhere is this more recognized than with packaging.
Consumer demands for packaging change often, especially when they require seasonal designs, more versatile uses, product variety, convenience, GWP, a more eco approach, and product protection. Since packaging is as important as every other element of a brand (arguably a top 3 priority), these ever-changing demands impact every packaging brief, at least they should.
In-House Pain Points
As one of the only physical touchpoints consumers have with a brand, and as consumers grow more averse to talking to real people or asking for help in stores, packaging has become more relevant than ever. These trends have made it hard for in-house marketing departments (and those stand-alone marketing agencies) to keep up the juggling act. Packaging demands are simply changing too fast and becoming more prevalent in consumer purchasing decisions. Those demands are more than the logo, a brand voice, or attribute call-outs, this also means meeting packaging regulations, material, and shipping cost projections, and accessibility to the machinery that makes the packaging, not to mention the right assembly and quality controls and getting them delivered on time to the right distribution centers
Mental and financial resources are tight in business. Businesses may see the opportunity to design a new category or put a product in to fill a gap or new customer demand, but the company is not structured efficiently to capitalize. They might prefer to source the product directly, but there are no custom-ready solutions. It takes time and work to deliver a customized “only available at” product, but who has time to do that when executing the current business plan? There are frictions – working with brand standards, legal approvals, and logistics systems that are hard to navigate. In the end, it’s a great idea, but too complicated to execute.
Operational costs, space limitations, additional labor costs, and logistical planning are all financial and time-management expenses most businesses cannot afford to take on in-house.
The Benefits of Outsourcing
This is why outsourcing, especially with unique SKU development, custom packaging, seasonal packaging, and new product or loyalty kits, has become a must for a wide range of businesses to keep up with growing customer demand and stay ahead of the competition.
“A third-party product management (3PPM) provider is an extension of your business,” Vivabox COO, Peter Allen, said. “It manages anywhere from a single SKU to an entire product line of a company’s portfolio and executes product design, creative development, sourcing, manufacturing, and shipping into your distribution centers. You get to focus on the marketing and selling activities, and the rest is taken care of for you by the 3PPM.”
Allen has collaborated with several companies who struggle with in-house packaging. For most, the packaging is an animal they simply cannot tame because it requires several moving parts that cost time and money. When a packaging company is a 3PPM provider, the sole focus is building the best packaging solutions for the brand. It has the knowledge a packaging company should have, which allows companies to focus more on what they do best for their brand and leave the packaging logistics to the experts.
Here are the top 5 benefits companies experience when working with a 3PPM packaging provider, like Vivabox:
We help lower costs of product acquisition and design, and we can rapidly respond to changing trends in the industry.
We can help with a single SKU, or we can build entire categories for your brand.
We become an extension of your business, supporting you with account managers that learn how your business executes and tailors our process to meet your requirements.
We work with your teams—creative, marketing, finance, operations, and legal to make the process seamless—saving an average of 9 hours per person, per month involved in the project on the client-side
We align with your business and bring you expertise from outside and inside your category to help you see new opportunities.
If you find yourself in a position where you would greatly benefit from a 3PPM, but you are not sure where to begin, Vivabox Solutions can help. We have the capabilities to fill multiple roles in your business. We take concepts and bring them to life with creative strategies, all the way to building and delivering that product concept to you and serving it up for you to sell.