KNOWLEDGESTREAM AT-A-GLANCE
The Future of Packaging
ABSTRACT
Modeling and Simulation
PARTICIPANTS
OBJECTIVES
1. : Distill relevant trends and factors and identify relevant examples.
2. : Identify the range of needed capabilities and understand the feasibility of each.
3. : Create a capability roadmap priority of importance and feasibility.
4. :
End Date: Oct 26, 2018
CONTRIBUTIONS
ACTIVITY
104 Days
6 Themes
23 Contributors
879 Posts
317 Comments
110 Followers
OUTPUTS
5 Slide Deck
6 Video
THEME #1
How do we cut packaging costs yet maintain or increase delight?
THEME SUMMARY
The best ways to reduce cost without sacrificing delight is to either drive efficiencies that are invisible to the consumer OR to engage them so that they desire the new package more than the old.
- Optimized dimensions, number of SKUs, weight, material, secondary packaging, etc are ways to cut costs without sacrificing the end user experience.
- Consumers can be "enticed" to like the more efficient package better by offering new features, communicating efficiency / sustainability, or providing new benefits
- The biggest opportunities (ie metal coffee cans to flexible bags) will require a paradigm shift. This is not easy and needs bold leadership and strong communication to succeed.
efficient design
They found if they shook bags of hot potato chips (and other salted snacks) as they ran through the production line in the factory, the chips would settle before they crimped the bag closed and they could use bags 1/2 inch more narrower.
Challenging paradigms
In general, the ability to deliver on the premise is certainly there, but will be constrained to some extent by product protection and regulatory requirements. If, however some cost reductions can be had in advanced materials for packaging, new doors can be opened.
consumer enticement
When you address a consumer need and/or provide a benefit with a lesser expensive packaging approach, consumers will be more accepting of the change.
In some cases, a reduction in the amount and complexity of packaging can be a delight to some customers so long as it is done consistent with adequate protection from contamination and damage
THEME #2
What is sustinable packaging and how can it drive business growth?
THEME SUMMARY
Most consumers will not accept tradeoffs for the sake of sustainability. We must innovate, think holistically, and drive efficiencies to create delightful packages that are inherently sustainable.
- Sustainability needs to be designed in from the start. It is not an afterthought that is applied after the design is complete.
- Opportunities abound to have delightful packages that are sustainable. We need to be intentional to uncover these.
- As with cost, challenging the status quo can lead to the biggest gains.
Sustainability is the end result of our design choices, not a design choice in and of itself. As such, tradeoffs between sustainability and delight rarely win with the consumer.
When we set out to design and produce the Model S, the brief simply stated that this had to be the best car in the planet ... these attributes were never associated with electric vehicles. ... To succeed we needed to ensure the car was a desirable product ... and, it happens to be electric
Even though the consumer wants to have a good feeling that their packaging is sustainable, they also want convenience (easy-open, resealable, etc).
True breakthrough comes from challenging the status quo
Simple design changes can make a huge impact to the amount of material that is recovered from waste packaging. Take for example the simple soft drink can- the ingenious design of stay-on-tabs on drinks cans has meant millions of tons of aluminium have been recovered rather than discarded
“In 2013, Veuve Clicquot invented the first-generation Naturally Clicquot ... the residual grape waste that occurs naturally during the wine production process is gathered and ground into a powder ...when combined with recyclable paper, the powder is able to become the perfect champagne package.”
Efficient packages are inherently sustainable AND cost effective
I think one of the most relevant things when talking about packaging sustainability is volumetric efficiency.
selling the box of pouches with ONE reusable container in each box? Supplemental purchases would then still retain branding and contents information, yet packing would still be much more compact for shipping
One size does not fit all - you need to consider the product context while choosing your solution
products that must come from specific countries/origins, and thus impact the choice of packaging (example: returnable glass bottles can't be used for products that will be exported half-way across the globe).
some industries/goods have very high perception barriers. If tomorrow we were to identify that e.g. tetrapack was the most sustainable solution, do you think premium products like fragrances would be rushing to be packed that way?
Total sustainability impact is what matters
When we talk about sustainability, we need to have the big picture in our mind, not only in each individual parts of that. Packaging is a part of product.
There are no perfect solutions, so compromises between these various factors (CO2 used in shipping, re-usability, minimalism of point of sale packages, recycleability) will have to be made
Sustainability means many things to many people. We must communicate the benefits and not assume our consumers and customers understand.
Brands around the world are stepping up efforts to tackle plastic waste problems as a way to demonstrate a clear conscience and their commitment to environmental sustainability.'
PE would look the same from green source or fossil fuel derivative ... whereas some packaging, that is NOT made from recycled products is printed to look like recycled card stock... Hard to get the message across when the end result looks the same.
THEME #3
How can packaging investments drive business growth?
THEME SUMMARY
Investing in better packaging can build the topline growth
- Great packaging can build your brand equity, increase purchase rate, and encourage repeat purchase
- Packaging can build emotional ties to your product and create loyalty beyond what the product can do alone.
Investing in shelf presence can help your brand come to life - in store and in use
Packaging is a primary visual and means of communication at retail shelf. Purchase decisions are often intutive and emotional and structure can be a primary vehicle to differentiate. ... at first glance the packaing needs to communicate the brand essense.
Tropicana moved some of their cardboard packaging to more expensive plastic containers, which looked nicer on the table and was easier to pour. Plus, it helped them compete better with other premium competitors
Packaging can help the product reach new heights
In some cases, upgrading the characteristics of the packaging ... that help to ensure product stability, ... justifies an increased price point (and can)...prevent shipping spoiled product to a valued customer.
Increase Consumption: Once the item is purchased, the structure can drive functionality by improviing ease of use, dispensing or it may be nicer looking to remain outside of cabinets and closets.
Great packaging increases emotional engagement
I’d also like to mention Apericube (BEL Group, small cubes of cheese in a variety of flavors served at aperitif): printed on the inside of the packaging of each cube there are questions of the board game “Trivial Pursuit”
There is an interesting paper about customer perception about sustainability in the UK and the US . In this paper it is reported: •25-50% UK citizens are willing to pay up to 25% more for sustainable products •82% US citizens are willing to pay up to 5% more for sustainable products
Great packaging creates a premium experience
the Automotive industry continually invests in new designs of their "packaging" which is nothing more than the exterior of their product. Homes are another area in which curb appeal is important to gaining sales. Developing an appealing package for a product works on the same principles.
I purchased some USB cables ...packaged in recycled fabric "roll" with the wire held in by a small amount of velcro and the roll secured with magnets ... it gives the product a level of sophistication and utility that really adds to the product.
THEME #4
How will "smart" and connected packaging change the world?
THEME SUMMARY
Smart packaging will transform the future. With these, you can ...
- Market to and interact with consumers in ways never before possible
- Create new product opportunities
- Assure product is secure, genuine, and not expired
Deepen emotional bonds
Champagne producer GH Mumm recently developed a new bottle embedded with an RFID chip that tells clubs and bars when the consumer has opened it. The bottle uses a sensor embedded in the cork to send a signal to the bar and the venue’s audio and visual system when it has been released.
A good recent example how "Smart packaging" can drive improved consumer experience is the Budweiser "Light up the FIFA world Cup".... In the bottom there is a battery and a smart LED system that responds to sound. Whenever a goal was scored the stadium roared and all the cups lighted up.
Communicate in detail
Some other advantages of QR codes : info can be updated more easily than by printing can provide useful information in various languages same QR code can be used on different communication supports, link can send to the webpage of the brand
Rondo AG in Switzerland. Its built-in NFC technology improves communication between customers, doctors and pharmacies, as printed and organic electronic modules help to ensure better patient compliance and prevent the dissemination of counterfeit medicine packaging.
Security and Anti Counterfieting
A secured, verified supply chain for materials and components in high-integrity applications (pharmaceutical, nuclear plants, government weapons projects, etc) is a HUGE value-add
Who would ever think consumers would steal roasts and steaks from the store or through-out the supply chain? . They do and RFID this can help combat theft.
Know when your goods are expired
Case study of how Sainsburys used a smart film that visually changes colour the longer a product has been opened. Reducing the risk of food waste and helping customers get better value for money.
The new Pro-Tech range of Tesco toothbrushes, with Timestrip patented technology built into the grip indicating when it's time to replace your toothbrush, are changing the face of the UK oral care market.
Market in new ways
Some other advantages of QR codes : info can be updated more easily than by printing can provide useful information in various languages same QR code can be used on different communication supports, link can send to the webpage of the brand
THEME #5
The future is e-commerce
THEME SUMMARY
E-commerce packaging offers unique challenges and opportunities vs retail packaging.
- We need to rethink how we use packaging to engage with the end consumer
- Successful ecommerce packaging adapts to the unique needs and leverages new opportunities
Our approach to decoration and design must change
Special treatments may not translate as well online either, such as special foils,metallics and hallographics, etc. These expensive quality graphic treatments may go unnoticed online.
The instore packaging relies on size, shape, tactile feel, material and design. But the online store focus on design and the storytelling around it that is shareable.
Ecommerce packaging engages the consumer in a different way
For e-commerce I believe it is quite important for customer to feel that the product have been delivered carefully. In order to get this impression, some items such as bubble wraps can be very convenient.
CPG brands that create engaging e-commerce features have a chance to stand out from the competition. Drano loads its site up with how-to videos that connect to product pages, speeding up the path to purchase.
Ecommerce can enable change
Currently personalization of the gifts is a challenge and thus people prefer to buy in-store and ship. This is a huge area of opportunity of e-tailers.
Return programmes should be encouraged and credits given for recovering, reusing and recycling of packaging materials; especially with smart technology that allows for easy identification and automated sorting of packaging wastes.
Marketing strategy must change.
Marketers need to rethink how they package items for online sales versus in store at retail shelves.
There are 2 kinds of packaging for products sold online. The outside box with the shipping label and the inner box with the glossy and well designed packaging. So far all retailers focus on designing inner packaging only.
Ecommerce has different needs
Most CPG packaging is designed with the assumption that individual units will be packed in master cases and those master cases will be assembled on pallets to be shipped to retailers. In e-commerce, the individual unit can be shipped a variety of ways
THEME #6
Cultural differences in packaging
THEME SUMMARY
Culture matters in packaging
- One size does NOT fit all for packaging across the globe.
- Being in touch with regional needs can help you win!
Culture impacts preferences in packaging
In Japan , food quality is most important to showcase in food marketing and packaging. So packaging is designed accordingly so that there is more visibility for food inside and it looks good.
Successful packaging designs reflect how consumers see themselves and their desires. Hence, since consumers are varied by culture, it is important to uncover their needs and desires so it can be reflected in effective packaging.
Local needs set the stage
Successful products tend to adapt their packaging to the local culture, colors, typeface and imagery. For example coca cola changes its typeface to match the local script of that country
Friesland Foods Wamco Nigeria Plc, launched its iconic evaporated milk brand Peak in a single-serve 35g flexible plastic sachet in 2009, which met with huge success among consumers. The 35g sachet also fuelled value sales growth for the brand at 12% over 2010.
Aesthetics are different across cultures