By
David Dalton and Keith McUmber, Checkpoint Systems
Brands spend
millions every year designing and refining product packaging to give it
standout shelf-appeal and to make target consumers pine for what’s inside. And while successful
packaging design might come in many forms, the overall goal is always to
deliver more sales.
To meet that
goal, packaging designers face the constant challenge of keeping pace with
changing consumer preferences: After all, what appeals now is likely to be
short-lived. However, one product issue they’re unlikely to consider is theft,
despite the high cost of shrink to U.S. retailers.
Security Before Beauty
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So, how can brand
owners and manufacturers tackle theft — and how can packaging design help?
To stem product
losses, retailers use security labels to act as a visible deterrent. They are a
fantastic defensive tool and a huge percentage of security labels are now applied
in-store before items go on display.
From a UK retailer’s
perspective, the optimum position for a security label is usually on the same
side as the barcode — because the label will be deactivated as it is scanned at
the point of sale. They then add a security message on the front of the
package, where it is visible. Meanwhile, U.S. retailers generally prefer that
labels are placed in a visible position on the front of the package to provide
a visual deterrent against shoplifting. However, the reality of a busy retail
environment often means that security labels are hastily applied, with little
regard for branding or information panels.
Poorly positioned
labels are particularly problematic for smaller products, such as makeup, that need
to be security protected because they are desirable, easy to conceal and often at
the top of shoplifters’ wish lists. Ill-considered security label application can
render packaging design completely pointless: In a worst-case scenario, it could
even prevent a purchase and force the customer to switch to another brand if the
ingredients or allergy information is obscured.
So What Is The Solution?
Source tagging,
the process that sees security labels applied with precision at the point of
manufacture, is an effective anti-theft solution for both parties. For
retailers, it introduces in-store efficiencies because sales assistants can
replenish items quicker, without the extra step of applying security labels,
which increases availability. At the same time, because tags are applied at
source, they are sealed within the packaging, making them more difficult to
vandalize or remove, which could mean fewer losses and reduced shrink.
But using source
tagging alone is not enough. It’s important to clearly inform both retailers
and shoppers that a product is protected. This warning can be considerately
worked into the original design. This reassures store management that additional
loss prevention solutions, such as safe cases, spiders, hard tags or even
another RF tag are not needed, while also allowing for accessible, open product
merchandising. The result is better sales performance and, ultimately, higher
sales volumes.
Regain Design Control
For packaging
designers and manufacturers, source tagging means label location compliance and
complete confidence that branding is not obscured, and products are presented
as intended, making it a key step to delivering sales success.
And technology
advances mean source tagging is now possible even for small products. In fact, radio
frequency (RF) label dimensions have decreased by 75% in size over the last 20
years. The smallest Checkpoint RF label, for example, is under 2.5cm, smaller
than a postage stamp, and easily hidden within packaging or placed sensitively
on the exterior of almost any item as a visual theft deterrent.
Driving Organizational Change
The consumer packaged
goods industry has never been more competitive, making it important for brands
and retailers to ensure they have the processes in place to maximize sales.
Engaging, creative packaging design is an essential part of the marketing mix
and vital to differentiate brands from competitors: Source tagging enables this,
offering a clear competitive advantage.
Security labels have
always been a thorn in the side of packaging designers and have the potential
to undo all their creativity and investment, if not applied correctly. By introducing
the benefits of source tagging, you can take back control of your packaging,
protect brand image and give retailers the confidence to merchandise brands to
best advantage. Product packaging with a built-in security feature will be more
successful, from both a creative brand identity and availability perspective. It
will deliver happy shoppers and happy retailers.
Keith McUmber serves as Source Tagging Director, Checkpoint Systems, US. He is responsible for the sale of RF EAS Labels to
consumer goods companies, packaging companies and other major accounts. As
an expert in source tagging, McUmber has worked with leading consumer product
goods companies such as Gillette, P&G, Wyeth, GSK, Pfizer and others
to develop RF source tagging solutions. David Dalton serves as Source
Tagging Director at Checkpoint System, UK, responsible for the strategy and growth of all source
tagging business in the UK. Dalton has worked with major retailers to
drive merchandise availability through source tagging and has facilitated
multi-retail customer forums to help generate wider market discussion around
source tagging and its benefits. He previously served as Category
Source Tagging Manager at Checkpoint, where he drove global source tagging
initiatives to benefit local customers, leveraging vendor relationships to
provide world-class service.
