Print Email Facebook Twitter Challenger brands: Developing guidelines to support the creation of packaging design for challenger brands Title Challenger brands: Developing guidelines to support the creation of packaging design for challenger brands Author Spoelder, L.E. Contributor Mugge, R. (mentor) Van den Hende, E.A. (mentor) Faculty Industrial Design Engineering Department Industrial Design Programme Master of Science Strategic Product Design Date 2015-08-27 Abstract The term challenger brand shows up more and more in the marketing world. These are brands that are not the number one in their category and try to gain market share by acting on a certain challenge. This challenge is embodied by breaking the conventions of the category they are in. The lack of resources that challenger brands characterize makes that packaging is an important medium. For challenger brands, packaging design can be their only asset through which they can advertise. Packaging consultancy CARTILS has been experiencing a new wave of brands that are not established in the market and need to find a way into the category. It is found that their current packaging design tools do not apply to the development of packaging for this type of brands. This thesis will therefore focuses on developing guidelines for the successful development of challenger brand packaging. From literature research and the analysis of existing challenger brands, it is found that challenger brands need to evoke attention. Differentiating their packaging design can draw this attention. Many researches on differentiation and categorization conclude that moderate packaging deviations will give the best result in the trade off between drawing attention and avoiding negative evaluations (Schoormans & Robben, 1997; Blijlevens et al., 2012). However, from the analysis of existing challenger brands across several product categories, the packaging of the brands clearly show high levels of differentiation. This would mean that challenger brands are an exception to this ‘moderate deviation rule’. Next to inducing attention it was found that the packaging design should invite the consumer to gain insights about the brand and find out whether they share values. Challenger brand packaging should be able to express their identity and tell their brand story, but also persuade their target group that their product is for them. This persuasion can only be done when a possible target customer is triggered to gain more insights and explore their shared values. Eventually the challenger brand should find a way to enter social conversation, and let their consumer perform word-of-mouth advertisement. It is through social conversation that challenger brands can reach their audience and find their way into the category. Research is set up to examine the influence of differentiation and brand story elements on product evaluation when dealing with a challenger brand. Although prior research has found that higher levels of differentiation will lead to a negative product evaluation, it is proposed that high levels of differentiation in combination with brand story elements will lead to a positive evaluation. It is also proposed that high levels of differentiation in combination with brand story elements will lead to a want for more information and increase of word-of-mouth advertisement. For two spirit categories, whisky and vodka, a challenger brand story was developed including all necessary challenger ingredients according to literature analysis. For both categories, six packaging designs were systematically designed: a low-, medium- and highly differentiated design, all three with- and without visual brand story elements. The visual brand story elements were developed to tell the challenger brand story as clear as possible. An experimental context (n=147) was used to test how consumers respond to the different levels of differentiation for both packaging designs with- and without brand story elements. After a follow-up test, findings show that high levels of differentiation increase the attention induced by the packaging, and do not have a negative result on the product evaluation. Brand story elements were found to have a positive influence on the evaluation of the highly differentiated packaging designs. For highly differentiated designs it was also found that brand story elements increased the want for information by the respondent, as did it increase the likeliness of word-of-mouth advertisement. The findings from the performed studies provide reasons for packaging designers to design a highly differentiated design and to explicitly tell the brand story through brand story elements. This will give challenger brands the opportunity to express their identity; through their packaging but also because consumers will search for more information about the brand. Finally the brand will enter social conversation, since word-of-mouth advertising is more likely. From the analysis of literature, of existing challenger brands and the conclusions from the studies performed during this project, the Challenger Diamond packaging guidelines are developed. The Challenger Diamond consists of three elements; ‘express your identity’, ‘be different’ and ‘be single-minded’. ‘Express your identity’ is the umbrella guideline. Their brand story should be expressed by brand story elements in order to express their identity; their values and their passion. ‘Be different’ provides systematic design steps in order to decide which category codes should be pursued and which category codes should be discarded in order to develop a highly differentiated packaging design. ‘Be single-minded’ emphasizes the importance of focusing on the specific target audience of the challenger brand. These three elements together form the base for developing packaging design for challenger brands. When each of these aspects is taken into account properly, a strong base can be set for the development of the challenger brand packaging design. This thesis is concluded with a short case study, in which the design guidelines were applied for the development of a packaging design for a fictitious challenger brand. Through a small qualitative research the packaging, and thereby the success of the Challenger Diamond is confirmed. Subject challenger brandspackaging designdifferentiationbrand story To reference this document use: http://resolver.tudelft.nl/uuid:ac447758-5310-445e-b901-59f93afc8f50 Access restriction Campus only Part of collection Student theses Document type master thesis Rights (c) 2015 Spoelder, L.E.