Perception is Everything

I was reminded of the importance of packaging a few weeks back at the Pyramid Ale House in Seattle.  

As an alternative to coffeehouses, this place is one I find very convenient for "holding court" (serial meetings) in Seattle -- how can you go wrong with free parking, wi-fi, and convenience to major highways?  :)  

Presuming the glass on the left were full with the same beverage, which would you reach for?

Nearly everyone I've asked has said the one on the right.  Reasons: it looks more shapely; easier to hold; and by far the winner, there's more beer.

Fact is, the glasses have identical capacity -- 16 oz!  (Out of disbelief, I tested -- pouring from one to the other).

In the information-marketing world (books/tapes/etc) it is well known that a CD in a cardboard envelope tops out at about $19 whereas the same CD and a booklet in a plastic "folio" container can get as much as $49.

How much more could you charge for the beer on the right (well-marketed, of course)?

Remember, you can create value through differentiation within your own product line -- most of which drops right to the bottom line.

So, how can you improve your packaging today?

The Importance of Differentiation

Recently earning my CMC (Certified Management Consultant) prompted me as to revisit the importance of differentiation  in the marketplace.  In this particular case, only 1% of consultants have earned this accreditation.   

While the Institute of Management Consultants has very low brand recognition in the marketplace (note they're not the Institute of Marketing Consultants, but give me time!) it is simply following the model of the CPA, which businesspeople have come to understand is more rigorous, exam-tested, and worth more than an [otherwise uncertified] "accountant".

This is especially helpful in the case of "consultants" (who tend to be born every time a company lays people off) where the business world really does benefit from having professional background-checking, courses taken and classes taught, and thorough indoctrination of international ethical standards and code of conduct.

One of my upcoming clients has an exciting, patented, energy-saving technology that provides 50-100% increase in electric motors.  Our plans include creation of a certification that will help government, corporate, and consumer buyers know the difference between this technology and the status quo.  Just like "Intel Inside" computer labeling, the Good Housekeeping Seal, and the "Underwriters Laboratories" label.

These communication devices help the customer in quickly understanding one level of quality vs. another.  They (and partners) are willing to pay more for this!

The Opportunity:  How can you differentiate your products or services in the customer's mind from the rest of the pack?

Innovating a 100-year-old product

When I saw last year the "Tweel" by Michelin, I smiled insider for I knew the company had empowered its people to question the status quo of tires.  It reminds me of one of my all-time favorite pieces of philosophy:

"Because its purpose is to create a customer, the business has two (and only two) functions: Marketing and Innovation. Marketing and Innovation produce results. All the rest are costs."

-- Peter Drucker, longtime management guru

Michelin says it will take 10-15 years for safety testing and to commercialize.  Or, perhaps they're buying some time because they're uncertain about future revenue streams of repeat tire purchases now that tires that can't go flat any more!

TWEEL
Radical new tire design by Michelin.The next generation of tires, they are airless and are scheduled to be out on the market very soon. Just think of the impact on existing technology: no more air valves, air compressors at gas stations, repair kits, or flat tires!

What's the lesson for you?

Better to innovate and cannibalize your own product line "controllably" than to have competitors drive it without your control.  Do the right thing for the customer (even if it means fewer replacement products to purchase) and you'll garner their goodwill and loyalty.  How can you radically simplify their experience?