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Packaging Innovations

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5. Magazines, Newspaper, etc. So What? The role of the package as the primary in-store and in-home ... Graphical beauty. The Most Intimate Relationship ... – PowerPoint PPT presentation

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Title: Packaging Innovations


1
Packaging Innovations
  • The packages role in the crowded and ever
    changing communications world.

2
Consumer Communications Trends
  • Major changes in consumer
  • communications environment
  • 1. Average US household today has 86 TV
    channels.
  • 2. Fastest growing communication technology
    DVR (TIVO).
  • 3. Mobile communications technology
    advancements.
  • 4. Billions of web pages.
  • 5. Magazines, Newspaper, etc.

3
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4
So What?
  • The role of the package as the primary in-store
    and in-home advertising vehicle has never been so
    important, and arguably will only continue to
    grow in importance as advertising budgets get
    squeezed, media channel growth accelerates, and
    advertising elimination technology advances.

5
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6
Great PackagingThe Minimum Requirement
  • The consumer expects the package to be perfect,
    and will pass over a package if it doesnt look
    good or isnt perfect.
  • The Consumer Product Good Company expects the
    same. The reality is that if the packaging is
    done poorly the risk is huge, a bad package
    doesnt sell, and the capitalized value of the
    product is whats at risk, not just the
    packaging.
  • Private label is 22 of all sales, in some cases
    the biggest seller (OlRoys-Walmart store brand-
    is the 1 selling dog food in the country) in
    Europe PL is 50 of sales.

7
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8
Consumer Trends72 of all purchases happen in
the score zone Impulse buying
  • Convenience
  • Dash Board dining multi use packaging
  • Total Information Expectation (expanded labels)
  • Ease of opening.
  • Resealability
  • Structural comfort
  • Graphical beauty

9
The Most Intimate Relationship
  • Packaging and products that they hold are the
    most intimate relationship a consumer has
    applied, ingested, smelled, touched. The
    consumer expects the product and packaging to be
    up to the intimacy test. Trusted, comfortable,
    informative.

10
Category Trends
  • Cans
  • Shaped cans
  • Easy open cans
  • Dot top cans
  • Peelable Opening cans
  • Self Heating cans
  • Microwavable cans

11
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12
Flexible Packaging
  • The fastest growing category in packaging
    continues to find ways to serve consumers in all
    product categories steeling from other
    manufacturing categories in very creative ways.
    Stand up pouches, shrink sleeve wraps are 2 major
    manufacturing growth areas.
  • Cans to flexibles
  • Boxes to flexibles
  • Glass to flexibles
  • Rigid plastics to flexibles

13
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14
Paperboard Innovations
  • Traditional paperboard packaging solutions have
    been creatively upgraded to provide dynamic
    solutions to consumers
  • The Fridge Pack
  • The PopCorn Pack
  • The Five Panel Box
  • Cereals, Software, etc.

15
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16
Glass Packaging Innovations
  • Glass packaging is probably the most vulnerable
    of all package manufacturing solutions
  • Certain categories of glass packaging appear
    unassailable, particularly alcoholic beverages
    and perfumes, however, innovations in shapes and
    beautiful labels keep glass packaging a preferred
    solution for quality products.

17
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18
The Future of Packaging Innovation
  • The package will soon have more senses to serve,
    more technology to embed.
  • Time/temperature indicators
  • Scented inks, plastics
  • Talking packages, video embedded packaging Q
    paper is coming
  • Embedded RFID tags- gen2 RFID chips are now
    available. Tags that will go beyond in-store
    inventory benefits to in-home inventory. View
    the Microsoft web site and go to the smart home
    section.

19
RFID (Radio Frequency Identification)
  • Easy pass for you car, toll payments
  • Keyless entry for you car
  • Mobil oil company Speed Pass
  • RFID tags in some retail environments today,
    clothing tags, CDs DVDs
  • Airline bag tagging
  • Card key access for offices

20
RFID
  • 137 top Walmart suppliers are slap and ship
    RFID compliant now, by years end over 300
    companies and 600 Walmart distribution centers
    will have RFID pallet level tagging happening.

21
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22
Why RFID works
  • Line of sight not required
  • Can store significantly more information
  • Is dynamic -- information can be added or deleted
    at every step in the supply chain
  • Increased functionality covert and difficult to
    counterfeit

23
Concerns about RFID
  • Higher costs (expected to drop quickly)
  • Tag reading dependent on environmental conditions
  • Uncertain universality of systems
  • Scalability questions

24
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25
TAG Types
  • Passive Tags
  • Less complex than active tags because the reader
    provides the operating power. They can be
    packaged small, light, inexpensive (also called
    SmartLabels) and can last over 10 years.
  • But
  • Range of transmission is relatively short and
    can require higher-powered readers.

26
TAG Types
  • Active Tags
  • Containing on-board power source (typically a
    battery) they can transmit relatively long
    ranges, and have reduced power requirements for
    reader. Batteries can last generally from 2 to 7
    years.
  • But
  • Cost and size Generally speaking, the more
    functionality, the more complex and bigger.

27
So What?
  • The findings from Walmarts first 8 months of
    data is so compelling that it has only heightened
    their appetite for RFID. This trend will not go
    away.
  • Issues that will slow it down a little will be
    privacy and EPA needs.

28
Opportunities
  • Get close to the CPGs and private label brand
    owners, know their customers and the competitors,
    follow the category trends, be a source for
    innovation. Be informed of what consumer
    research trends are forecasting.
  • Learn about and embrace RFID technologies.

29
Document identification
  • The application provides the opportunity for
    verifying and validating/authenticating
    documents.
  • Protects the consumer from fraudulent sources
  • Book manufacturing
  • Marketing opportunities to drive consumer activity

30
Thank You!
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