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Packaging Innovation-Thai Packaging Association 2013

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This presentation was given at Pack InnoTech Conference (22-23 May), part of ThaiFex, organised by Koelnmesse

This presentation was given at Pack InnoTech Conference (22-23 May), part of ThaiFex, organised by Koelnmesse

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  • 1. Packaging Innovation andChallenges for Business SuccessMayuree Paklamjeak23 May 13Pack Innotech Conference , 22-23 May 2013
  • 2. Agenda• Realizing importance of packaginginnovation for business success• Understanding packaging requirements forefficiency• Inspecting packaging that leads tocompetitiveness• Identifying packaging challenges for brandowners and suppliers when AEC comes intoeffect
  • 3. Realizing importance ofpackaging innovationfor business success
  • 4. Research vs InnovationResearch is the transformation of money to knowledgeInnovation is the transformation of knowledge to moneyRef : Bayer, Germany
  • 5. Criteria of Packaging InnovationConsumersPreferenceTechnologyReadinessBusinessNeed• Some innovation need Researchto get technology readiness,some do not• Some innovation are simple ,some are not and needEngineering & Manufacturingbefore commercializationInnovation is an important index of global competiveness
  • 6. Packaging Innovation Objectives• For new product launch to gain market share / profit• For improvement of current products to extend productlife cycle- better packaging quality & consistency- adding functionality value- brand enhancement/ differentiation- promote sales- retailer preference- total competitive cost- higher supply chain & logistics efficiency- reduce environment impact/sustainability- etc
  • 7. Consumer Product Life CyclePackaging innovation is needed to extend product life andmeet business result (profit).Why Packaging Innovation Is Needed?
  • 8. Consumer Product Life CyclePhase Characteristics Packaging strategyNew productintroduction(launch)high budget, low sales, lowmarket share, no or lesscompetitors- create product image and attackconsumer attention by packagingdifferentiation , segmentation, benefitscommunicationGrowth higher sales, higher marketshare ,more competitors,higher profit- more pack sizes and types to covermore segments and sales channels- create special pack for marketing eventSaturation sales stable, market sharestable, serious competition- promotion pack, refresh by changingpackaging design or adding valueDecline sales drop significantly,market share loss- reduce packaging cost, cut all un-necessary elementsDie little sales and market share - too late to use any packaging strategy
  • 9. Packaging design to support marketing eventsGrowth PhaseSpeedQualityPremium
  • 10. Growth PhaseNew pack size & type to cover new segmentTablet Dispenser
  • 11. Saturation PhaseRefresh by adding value (easily open and reclose-able)NEW RESEALABLE PACK
  • 12. Understanding packagingrequirements for efficiency
  • 13. Packaging Design Outcome : Packaging SpecificationProductionand QualityPurchasingand FinanceWarehouseand LogisticsRules &RegulationProductMarketingand SalesPackagingSpecificationSuppliersBrand Owner
  • 14. Good Packaging SpecificationShall meet all relevant needs “Efficiency” Product quality and shelf-life Packing /filling/capping/labeling efficiency Distribution efficiency (warehousing included) Retailers preference Consumers preference Less environment impacts Acceptable cost (profit)
  • 15. Efficiency requires many steps,many testing and time1. Information collection & packaging requirements summary2. Multi designs , selection, prototype(s) making3. Prototype test & validation4. Design adjustment, prototype , making, retesting5. Structure and graphic designs finalize6. Cost and demand finalize7. Production tooling (die-cu, moulds, printingplates/cylinders) and test8. Complete packaging specification and quality criteria
  • 16. Packaging Requirement for EfficiencyEfficiency Packaging Requirements Testing RequirementProduct quality &shelf-lifePacking/fillingefficiencyDistributionefficiencyRetailerpreferenceConsumerpreferenceSafe when direct contact withfood, protection againstmoisture, gas, oil, etcProper shape & dimensionand performanceProper transport packagingdesign & propertyMaximize space utilization ,stable on-shelf, easy shelfreplenishmentOutstanding on-shelf, clearcommunication, reasons tobelieve, convenienceAging test, migration test ,solvent retention, WVTR, OTR,etc.Physical test and machine testSimulation shipping test,rub resistanceDimension and stability check.SRP design testConsumer test, shelf test,convenience function test
  • 17. Packing / Filling EfficiencyHigh outputMinimize wasteMinimize finished goods defect
  • 18. • Easy loading/unloading• Maximize space utilization• Minimize goods damageLosses in Distribution• Handling & storage 45 %• Accident 19 %• Water damage 17 %• Theft and pilferage 19 %Distribution Efficiency
  • 19. Reduce Distribution Damage
  • 20. Good SRP designneeds completedistribution informationto maximize spaceDistribution Efficiency
  • 21. Inspecting packaging thatleads to competitiveness
  • 22. Packaging for CompetitivenessBest on Shelf• Understand consumer needs• Link needs with key packaging attributes which convinceconsumers to choose our brands• Ensure shoppers choose our brands in the store byoutstanding or differentiation design when displayed on-shelfPackaging Attributes : packaging elements whichconsumers can see and perceive• Packaging shape, color, picture, aesthetics• Brand name, logo , pictures, highlight of product benefit• Brand sense• Brand endorser
  • 23. Consumer Needs- Senior citizen (Aging population)- Target consumers
  • 24. % senior citizen (> 65 years old) of total populationCountry 2010 2020Japan 23 28USA 13 16India 4 8China 8 12Thailand 10 (12% in 2012) 14 (20% in 2042)Senior CitizensAging Society
  • 25. Expiry date is hard toreadThe packaging ishard to openSmall, fuzzy textToo less informationthe contentWhat annoys you the most regarding product packaging?(Germany)Several answers are possible, N= 354
  • 26. Rising Health & Safety Awareness
  • 27. Rising Health & Safety AwarenessTamper evident capSafety buttonTamper evident shrink sleeve
  • 28. Rising Health & Safety AwarenessClear Benefit Communication
  • 29. Guideline Daily Amounts (GDA) Labelon front panelAmount of key concerned component (Energy, Fat ,Sugar, Salt, Sodium ) per package in % of maximumconsumption allowed per day>>> Nutritional Facts on back/side panelNutritional information per one servingRising Health & Safety AwarenessNutrition Communication
  • 30. Guideline Daily Amounts (GDA)Widely used due to easily understood by consumers
  • 31. Jasmine rice5 kg in big flat bag (210-230 Baht)Cereal mixed Ca & Fe fortified450 g (31 Baht) 500 g (48 Baht)Healthy Food Awareness Rice InnovationStand up zipper pouch
  • 32. Butterfly Pea Rice with benefit information1 year shelf lifeO2 Absorberข้าวสมุนไพรดอกอัญชันHealthy Food Rice InnovationVacuum pouch with O2 absorber
  • 33. Canola Oil Rice bran oil Palm oilHealthy Food High nutrition edible OilCanola, Olive, Rice Bran OilPremium design ofclear PET bottleOlive oil
  • 34. Convenience& Fun
  • 35. Very easy toopenEasy tear andstraight cutTab
  • 36. UD Easy toopen
  • 37. Safety and ConvenienceSafety and injurypreventionInstant noodle cup with 2 layers lidHot water inHot water outUD
  • 38. Noodle cupPaper coated with PECorrugated paper forinsulating effectCoated paper forgood printingTriple layers paper cup forexcellent insulating effectThe cup automatically equippedwith an insulating function on itsside soon after pouring hot waterinto the cup, easy to hold anddifficult to slip from handsSafety andinjurypreventionUD
  • 39. 2012 Packaging Idea Award, JapanMore Convenience•The cap and the PET bottle stay together even afterthe water bottle has been opened• Consumer can move more freely without worry aboutlosing the cap• The cap has a common shape and can be used in anexisting filling line.
  • 40. Non pigmented HDPE bottle with baginside , bag made of high flexible thin film,.After squeeze to pour, the bottle easilyback to original shapeCap has 2 pieces valve forpreventing product flow backThe hole at bottle is for releasingthe air between bottle and bag ,helps maintain bottle shape andenable to adjust product pouredhole-Table top bottle for soy sauce (200 ml)ConvenienceKeep soy sauce fresh for 90 days after opened
  • 41. 2 bags sealed together on top- inside bag is clear film , lowrigidity, high barrier- outside is printed film, high rigidity 1/3 of resin consumption vs PET bottlefor stand up, low barrier- Soy sauce in stand up pouch (500 ml)Opening area is very thin film for easiertear. When stop pouring, films will bestick together ,protect outside air flowin. This spout design can preventsreflex of O2 protect against oxidationand deteriorationConvenienceKeep soy sauce fresh for 90 days after opened
  • 42. ConvenienceCap-n-box : FDA approval board coated withPET on both sides,, tight seal , reclose-ableSupplied by Continental Packaging(Thailand)
  • 43. Frozen Vegetable in Microwavable Pouch3 methods of heat- in microwave oven- hot water tap- in boiling waterWhen heated in microwave ovenCenter seal open to release hot air from the pouch
  • 44. 250 ml 500 mlAseptic CartonConvenience and Longer Shelf-life
  • 45. My Own Made Starbucks Coffee
  • 46. Small HouseholdSingle Serve PackagingStandard size 200 g &100 gSingle serve size 20 g
  • 47. Convenience : Food Take Away PackagingTake-away meals for city life people
  • 48. On-the-GoBeverage bottle for sport menSandwich box for drivers
  • 49. Outstanding or differentiation designwhen displayed on-shelf
  • 50. Consumer BehaviorConsumers have become More complex More demanding More educated More willing to think twice or even3 times before making a purchasePackaging is the productPrinting makes the productPrinted pack represents brand70 % of product purchased are unplanned and shoppersmade buy decision in the storeReady Meal Frozen Food Big segment and high growth Vertical freezers more popular Flexible and rigid plastic packaging biggest consumption
  • 51. Differentiation by Unique Shape , Materialand Good Graphic
  • 52. Brand Enhancementby good graphic and high quality of decorationNormal segmentPremium segment
  • 53. Continental Packaging(all designs patented )Differentiation-Fancy BoxSelling price380 Baht
  • 54. Outstanding On-Shelfby shape, form, graphic, printing
  • 55. Brand EndorserConsumer can see, perceive and remember
  • 56. Identifying packaging challengesfor brand owners and supplierswhen AEC comes into effect
  • 57. AEC in 2015One Vision, One Identity, One Communityวิสัยทัศน์เดียว อัตลักษณ์เดียว ประชาคมเดียวBig market size of 600 million people of 10 countries
  • 58. ASEAN Brand Owners & Suppliers• Opportunity- Better economic- Higher GDP/ person- Bigger market- More collaboration- More harmonized product standard
  • 59. AEC: Opportunity for ASEAN Economic Growth2015 EstimateEU China ASEAN ASEANin 2012GDPbillion USD 18,783 10,581 3,126 2,248Populationmillion 504 1,375 645 590GDP /CapitaUSD/head 37,236 7,694 4,844 3,810Packaging industry is approx 0.7 % of GDP = 0.7 billion USD in 2012Ref : World Bank
  • 60. Challenges for Brand Owners & SuppliersStronger competition on cost and quality• High competition especially mass consumerproducts• Most consumers make buy decision based onprice, rather than quality• Skilled specific professional will move around,how to keep them in our organization?
  • 61. Packaging Challenges for Brand Owners & Suppliers• Know your organization- Do SWOT - capability, technology, people, etc- Identify your strength or uniqueness  keep it- Improve your weakness  urgently• Know your major competitors- Strength & weakness- Benchmark , how to compete them• Know your cost structure in your supply chain and logistics- Cost structure elements of your products (+packaging)- Identify causes of waste in supply chain & logistics  improve- Partnership with your raw materials & machines suppliers• Know your price structure (quoted by supplier)- Understand price structure of each packaging item ordered- Work with them on how to reduce price without reducing quality
  • 62. Packaging Challenges for Brand Owners• Know your target market & consumers- Understand target consumers behavior , varied by culture,religion, life-style, education, etc- Identify consumer needs & preferences- Design proper packaging to serve their needs & preferences- Make it easy for consumer to know what „s benefits of that packaging• Know your target retailers- Understand their preferences- Design proper packaging to serve their preferences- Partner and support them e.g. shelf space management , specialevents
  • 63. Packaging Challenges for Suppliers• Know your key customers (brand owners)- Each has different requirements & demand, understand them- Keep major customers, fully support them- Seek new customers for business expansion- Networking or joint investment with other suppliers locally or inthe region to serve specific brand owners with competitive pricing
  • 64. How to Turn Packaging Challenges to Success• Packaging innovation is the solution (knowledge money)• Innovation resources : people, equipment and budget• Priority of innovation based on business need, targetconsumer/customer preferences and technology readiness• Innovation areas focused- differentiate from competitor  uniqueness- value added for consumers- green packaging (hot trend)- competitive overall cost- consistent quality , minimize rejection• Collaboration among value chain partiesfor updated information and technology transferSpeed to marketAcceptable selling price
  • 65. Success of Packaging Innovation NeedsValue Chain CollaborationMaterial SuppliersPackagingSuppliers Brand OwnersAdditives and InkSuppliersMachine SuppliersSupporting Organization
  • 66. For the tradePackaging representsSpace savingShelf appearanceReduced damagesFor the consumerPackaging representsSafetyConvenienceComfortFor the businessPackaging representsProfitsSurvivalFuture of Sustainable Packaging forConsumer ProductsEND