All in Process Excellence
Unreasonable expectations: we have all been subject to them and some of us have subjected others to them. Sometimes, our expectations are too high, but sometimes our own imaginations are limiting our progress. I believe the latter is true for product packaging.
I had the privilege to speak at Smithers Pira’s E-PACK event in Chicago in September. E-Pack provided brand owners opportunity to discuss the challenges of staying competitive in the online retailing space and how packaging converters and packaging design firms can provide additional solutions for brand owners. If you missed the event, I’ve got three key learnings that I’m happy to share with you, as well as a recap of the presentation I gave with my former customer and still-current colleague John Morrow.
This past Monday, Amazon opened it’s first retail store outside its home state (Washington). I visited the Amazon Go Chicago yesterday and recorded my observations to satisfy your curiosity.
Each time a new package is designed for a food or beverage product, brand leaders must ask themselves if they’re giving shoppers what they want. Is this package what shoppers expect? Are they meeting shoppers’ desires?
As shopping behaviors and the path to purchase have been disrupted by online and mobile shopping, shoppers’ expectations of the product experience are also changing.
Marketplace disruptions caused by the rapid growth in ecommerce and social media are posing major threats and opportunities for consumer package goods (CPG) companies. Designing innovative products and packages that delight consumers have always been important, but innovation today needs to be faster, more effective and less expensive than ever before. Strong marketing implementation has also always been important, but the complex environment today requires a highly efficient, integrated omnichannel approach. Technology can help enable these transformations.
Brand leaders know the power of connection. A consumer’s connection to a brand is a powerful driver of trial, purchase, loyalty and advocacy. Connection is maintained through consistency and relevance.
As the Millennial generation continues to increase their buying power, they also prefer to purchase products from brands that have sustainable manufacturing methods and ethical business standards. According to a Nielsen study, Generation Z is also willing to pay for products and services that come from companies who are committed to positive social and environmental impact—up from 55 percent in 2014 to 72 percent in 2015.
The archetypal tale of David and Goliath is unfolding between small craft or start-up brands (David) and large fast-moving consumer goods (FMCG) companies (Goliath). In a recent Financial Times article, Bain & Company stated that these Goliath FMCG companies experienced 7.7 percent growth from 2006- 2011, but only .7 percent growth from 2012-2016. And according to a New Product Innovation Report, Nielsen states that of over 60,000 new SKUs introduced in Europe in the last few years, just over half (55 percent) made it to 26 weeks.
What can we learn from an early American businesswoman about the economic value of gaining insight into your packaging supply chain? Step across the narrow, 18th-century threshold of Betsy Ross’s operation in Philadelphia with me...
One of our editors, Ashley Joyce had the opportunity to speak with Chip Tonkin, Chair of the Graphic Communications Department and also Director of The Sonoco Institute of Packaging Design and Graphics at Clemson University. Prior to being at Clemson, he spent 13 years with International Paper. She also spoke with Jeff Rhodehamel, the Chair of Food, Nutrition and Packaging Sciences and Associate Director of The Sonoco Institute at Clemson University. Prior to Clemson, he worked at Cryovac Sealed Air for 18 years. Combined they both have a total of more than 45 years experience in packaging industry.
In today’s connected world, consumers are more informed than ever before. This means consumers can now walk into commerce transactions armed with research about any particular brand or product. It also means that consumers have a more in-depth understanding and exposure to the local and global impacts of socially irresponsible practices, whether it be water shortages, food poverty and poor air quality. As a result, many consumers have adopted more sustainable behaviors, and expect the same from the brands they purchase.
In this edition of Pack Snacks, Esko’s Product Manager, Susie Stitzel, Global Marketing Solutions Manager, Kathy Drommerhausen, MediaBeacon’s Product Manager, Timothy Sixta and Danaher Product Identification’s Director of Customer Experience and Insights, Danielle Sauvé discuss Target’s new distribution strategy, the digitization of retail and how packaging design can reduce damage created in transit.
I had the opportunity to attend the Smart Digital Experiences for 21st Century Industry round-table in Chicago. The evening’s goal was to bring together leaders from around the world in an open dialogue to deep dive into how digital transformation can be incorporated into a corporate strategy to achieve true innovation in an age of constant disruption.
Packaging is important to consumer packaged goods (CPG) companies, but we often forget that packaging plays a role in retail too. Retailers understand the impact packaging has on consumer purchasing behaviors, but often face challenges with CPGs who design their packaging as an isolated product, never considering how the product packaging would look on a shelf or how it appears online.
A DAM helps speed up time-to-market and improves the content creation process; it is a solution for brands to store, search, manage and distribute digital assets. As a single source of truth for brand assets like images, videos and symbols, it can transform the packaging design process.
We talk about digitizing everything, but if you’re a marketer at a consumer goods company, you know there is a divide between digital marketing channels and product packaging.
From textiles to plastics to paint and coatings, the story is the same across every industry: color that used to pass muster is no longer good enough; brand managers and consumers are getting pickier. If the color doesn’t look right, consumers will right pass by the offending package for a competing brand, and the rejected products often end up as wasted inventory.
In all aspects of life, transparency is important in establishing trust. People feel secure when they have ready access to how products are made or see how contracted services are performed.
Consumers are increasingly concerned about their health and the products they use. Food and beverages with simplified labels, easy-to-read ingredients and clear windows have gained popularity as consumers demand more information to prove that products are exactly what they claim to be.
Imagine, as a consumer packaged goods marketer: in just a few minutes you’re gathering data and insights on brand health across your organization from departments such as packaging, marketing, sales and design and also from key partners such as packaging manufacturers, logistics, retailers and even consumers. If you had access to all of that knowledge, how would that impact your overall decision making for the business?
Many consumer packaged goods (CPG) companies have yet to understand the importance that the entire packaging value chain has on their overall route-to-market and do not consider packaging digitization as a core business priority. However, if they advance their packaging processes, adopt digital technologies, automate them and connect them with suppliers (and even consumers), they will see realize increasing benefits. These benefits include increased executive support, cost control, risk mitigation, responsiveness, quality, and transparency.