Key Points to Learn from Failed Packaging Redesign of Tropicana

Tropicana is the brand that sells fruit juice across the world. In 2009, the brand owned by PepsiCo decided to change current packaging design for improving sales of orange juice, implementing new packaging for market in North America. However, number of Tropicana consumers rejected the packaging format and rejected it. The launch of packaging was such a failure that company had to drop the design format to return to previous version of packaging. Packaging plays very important role in gaining traction in the market. According to Future Market Insights, the global dairy products packaging market was pegged at nearly US$ 30 Bn in 2017 and is estimated to reach valuation of more than US$ 43 Bn by 2027-end. The market is poised to witness expansion at 4.5% CAGR during 2017-2027.

Tropicana invested almost 36 million dollars in the campaign of advertising, which promoted renew packaging for fruit juice brand. Both the advertising drive and packaging design were tailored by the similar company, Arnell. Tropicana launched new design for the packaging of bestselling product – Tropicana Pure Premium in North America. After few days, customers started criticizing the design of this product, particularly on social media. Two month later, there was drastic sales drop seen of this product. Meanwhile, competitors took advantages of this situation and gained a large income through the sales of similar fruit juices.

Role of Packaging in Purchase Decision

The problem goes beyond the emotional bond, which consumers had with the old packaging. While linking branding with merchandising, role of packaging need to be considered. Ciummo and Young stated that the packaging redesign often come with small loss in sales however, this leads to be temporary and has never been as serves as 20% loss projected by Tropicana.

Due to revised packaging format, number of consumers unable to recognize branding of the product on supermarket shelves. Several loyal consumers see 100% Orange juice and wonder if the product is still the same that they used to have previously. Owing to simple design, most consumers describe it ugly and thinks that such packages have been brought from low-range superstore brand. Customers were confused about the look of this packaging and found it cheap in first look.

Key Takeaways

Customers have an emotional attachments with brands they buy and may feel disappointed or betrayed if a sudden change has been incorporated with new brand elements of design of packaging. Thereby, design is the key factor, which needs to be considered before making any changes to packaging. Tropicana, while modernizing the brand forgot the key branding rules any company need to consider such as product recognition and identification. Tropicana changed too much elements in the brand that confused consumers while purchasing. If one is expected to make changes in the design it need to be taken in to consideration that changes need to be done progressively to ensure consumers recognize brand. However, this is applicable to big brands such as Tropicana. If a brand is not doing well, then it is good to change entire design to gain more traction in the market.

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Shambhu Nath Jha

Shambhu Nath Jha with an experience nearing a decade, has helped over 50 large and medium to small business enterprise to foray into new markets, increase footprint in the existing bucket and understand the nature of the beast. These beasts are the companies that have been primarily engaged in chemicals, material or packaging activities, and encountering challenge either in maintain P&L or staying ahead of their competitors. He has authored over 300 industry research papers consisting critical information such as market growth, total addressable market, serviceable addressable market, market size, forecast, player strategies, market share estimates and winning imperatives along with recommendations. He is also the pioneer of “three slope distributor/off-taker evaluation model” used by several multinational companies to track the performance of channel partners. A consultant by profession, writer by mood and explorer by desire, Shambhu Nath is currently employed with a London based market research and consulting firm as a full time consultant. A few of the industry verticals where he demonstrated his skill includes water and wastewater treatment chemicals, high purity alumina, water purifiers, activated carbon, chloramine filters, bio-based bioplastics, water purifiers, textile chemicals etc.