Packaging Innovations

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Packaging Innovations

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

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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.

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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.

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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.

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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

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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.

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Category Trends

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

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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

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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.

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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.

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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.

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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

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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.

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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

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Concerns about RFID

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

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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.

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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.

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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.

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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.

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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

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Thank You!