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Club Store Packaging and Design Strategy

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Works Design takes a close look at the club store industry, and outlines various trends and best practices for packaging and design in the club store channel.

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Club Store Packaging and Design Strategy

  1. 1. WINNING AT CLUB
  2. 2. What is Club?
  3. 3. Sam’s Club has the most locations of the 3 retailers, and also has a larger presence in Middle America Sam’s Club 620 Costco 460 BJ’s 200
  4. 4. Costco is the largest in terms of revenue, while Sam’s is second & BJ’s is a small regional player. Sam’s Club Costco BJ’s $56B $75B $13B
  5. 5. Costco has the lar gest stores, and the least SK U’s. BJ’s has the smallest stor es and the most SK U’s. Sam’s Club Costco BJ’s 113KSQ/FT AVG 143KSQ/FT AVG AVG 134KSQ/FT
  6. 6. How does BJ’s stock so many SKU’s in a small space? By merchandizing half pallets among other things. ? Sam’s Club Costco BJ’s
  7. 7. The goal with the club stor e experience? to make you feel like a kid in a candy stor e CANDY
  8. 8. EDUCATION HOUSEHOLD SIZE FEMALE RACE AGE 35-54 GENDER SAM’S: 51% COSTCO: 49% BJ’S: 45% COSTCO: 51% HHI 3-5+HH CAUCASIAN THE CLUB STORE SHOPPER COLLEGE + POSTGRAD SAM’S: 22% BJ’S: 31% COSTCO: 33% $100K+ SAM’S: 38% BJ’S: 56% *Scarborough research, 2014
  9. 9. COLLEGE + POSTGRAD HOUSEHOLD SIZE FEMALE RACE AGE 35-54 GENDER SAM’S: 51% COSTCO: 49% SAM’S: 38% BJ’S: 45% 3-5+HH CAUCASIAN THE CLUB STORE SHOPPER BJ’S: 56% HHI SAM’S: 22% BJ’S: 31% COSTCO: 33% $100K+ EDUCATION COSTCO: 51% *Scarborough research, 2014
  10. 10. RULE THE
  11. 11. At retail, 80% of r evenues come from 20% of the products. Club stores turned that r atio on its head. Club stores stock only the best selling 20%, and offer them at deep discounts.
  12. 12. Why Should You Care?
  13. 13. You Can’t You Can’t NOt To!!! NOt To!!!
  14. 14. MISC CHANNEL X% ANNUALLY E-COMMERCE X% ANNUALLY MISC CHANNEL X% ANNUALLY MISC CHANNEL X% ANNUALLY
  15. 15. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 88.6 % EXPECT SALES GROWTH In The 69.4 % % OF CPG Execs THAT Following Channels 49.3 % WAREHOUSE CLUB DOLLAR GROCERY *Deloitte Consulting, 2013
  16. 16. Designing For Club
  17. 17. Club Store packaging should be designed like billboard advertising
  18. 18. Club packaging should visually communicate within 5 seconds fr om 5 feet away
  19. 19. Different club retailers merchandize differently. Costco merchandizes on 48” side of pallet , while BJ’s & Sam’s merchandize on the 40” side of the pallet .
  20. 20. 48” 40”
  21. 21. 4Best Practices
  22. 22. Color Blocking
  23. 23. Billboarding
  24. 24. We define “Billboarding” as designing 2 (or mor e) package facings to cr eate a continuous design consisting of product photography, color, patterns and/or other elements that overlap multiple facings.
  25. 25. Billboarding is a technique commonly used in gr ocery and other channels
  26. 26. Billboarding is particularly relevant at club
  27. 27. Lead with Icons
  28. 28. If you have substantial equity with the look of y our product, or your packaging, logo, or some other distinctiv e characteristic... Lead with that distinctiv e imagery!
  29. 29. Shoppable from 5 sides
  30. 30. When designing Club Store Packaging, your designs should work and communicate clearly when your packages are stacked on pallets, from all 4 sides as w ell as the top of the pallet .
  31. 31. 4Design Trends
  32. 32. Simplicty
  33. 33. Value
  34. 34. Optimism
  35. 35. Experience
  36. 36. For more insight on club stor e design & strategy, visit us online at worksdesigngroup.com, or give us a ring at 856.665.4774

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