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Winning the On-Shelf War
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Winning the On-Shelf War

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Winning the On-Shelf War Winning the On-Shelf War Presentation Transcript

  • Graphic Packaging International Winning the On-Shelf War This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited.
  • What are consumers not telling you about your brand? What is the “value” of on-shelf differentiation? What are consumers looking for on-shelf and how will they find you? How can emerging technologies create differentiation? This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 2
  • Graphic Packaging International What are Consumers Not Telling You? This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 3
  • Where is my Brand? Is It Worth the Price? Why is this Section so Disorganized? I’m Confused Is There a Better Alternative? I Think the Store Brand is Just as Good. Why is this Better than the Others? This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 4
  • Winning the On-Shelf War Consumer Segments Baby Boomers Born 1946 – 1964 (’45–’65) 78 million adults* Age 41 – 59 in 2005 Matures Born 1945 and earlier 50 million adults* Age 60+ in 2005 “Seniors” Millennials Born after 1978 (’80–‘00; ’81–’95; ’82+) 113 million individuals* “Gen 13” Age 27 and under in 2005 Includes Babies, Young children, Tweens, Teens, Young adults Generation X “Net Generation” “Echo Boomers” Born 1965 – 1977 (’65–’80) (N-Gen) “Generation Y” 53 million adults* Born ’77–’02 (’78–’89, ’78–’95) 71 million individuals Age 28 – 40 in 2005 “Generation 14” “Bridgers” “Generation D” * Population estimates based on data from the U.S. Census Bureau in The Statistical Abstract of the U.S., 2004-2005 This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 5
  • Winning the On-Shelf War Consumer Trends that Affect Purchase Behavior 1. Comfort Looking for Familiar and Safe Experiences from the Past 2. Consumers Shift from Accumulation to Protection More value focused Warehouse club growth Growth Private Brands 3. Convenience Ease of package use and time constraints 4. Health and Wellness Aging global population 5. Shelf Impact Leading to Impulse Sales This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 6
  • Winning the On-Shelf War Branding and Differentiation Package Innovations that Respond to Consumer Needs New Design Innovations Before After Yogurt in a tube Value Created • Supports 38% price premium over standard Yogurt cup • A convenience snack, GoGurt serves far more eating occasions Commodity, Differentiated, • Large mouth “chug” is a huge hit with users large bottle single serve • Milk wins new shelf space in C-stores C- bottle “to-go" New 2X6 “Fridge-Vendor” Standard • 25% jump in 12-pack sales, 10% in can sales 12- 3X4 multipack • Fits better on a fridge shelf – cans stay cold 7
  • Winning the On-Shelf War Branding and Differentiation Package Innovations that Respond to Consumer Needs New Technical Innovations Before After Value Created Screw-cap Traditional, • Shelf- Shelf-life increased by 10-20% 10- spout gable-top • Easy to open for kids & senior citizens cartons Loose Salad-in-a-bag • Supports higher price point produce • Improved branding • Greater Convenience In-store butchers Centralized meat- • Cuts labor costs, frees shelf space packaging • Single- Single-serve portions facilities 8
  • Winning the On-Shelf War Platform Innovations that Respond to Consumer Needs Winning at Microwave Strength Barrier New Age Beverage Retail Dispensing Shelf impact Convenience Durability/Tear Res. Freshness Increased Sales Impulse Buy Brand Exposure Trends On the go! Stacking Strength Extended Shelf Life Brand Recognition Ease of use Source Reduction/Cost Sustainability Convenience Retail Marketing Time Saving Reduction/Sustainability Sustainable Option Healthy Eating Retail Marketing This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 9
  • What are consumers not telling you about your brand? What is the “value” of on-shelf differentiation? What are consumers looking for on-shelf and how will they find you? How can emerging technologies create differentiation? This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 10
  • Call In Number: 1 (866) 528-2256 Winning the Participant Code: On-Shelf War 458-7536 Brand Blur Consumer Purchasing Trends Accidental Purchases 1. 70% of consumers have purchased the wrong product in the past year 2. 60% have trouble differentiating products on shelf due to packaging Source: MediaPost News, October 28, 2009 This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 11
  • Winning the On-Shelf War Brand Blur Consumer Purchasing Trends Consumers Trading to Store Brands (McKinsey Study, Dec, 2009) 1. 18% of consumers admit to trading to lower-priced brands in the last two years 2. 46% of consumers said that these products performed better than expected 3. 34% of consumers said they no longer preferred higher-priced products 4. 41% of consumers said that while they preferred the premium brand, it was “not worth the money.” Store Brand Value growing in the U.S. (in the last year) (2009 Ipsos MORI Study) 1. 7 out of 10 shoppers believe that Private Label Products are as good, if not better than the National Brands 2. 40% consider themselves “frequent” store brand shoppers 3. 50% of all consumers say that their basket contains 25% or more of store branded products. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 12
  • Winning the On-Shelf War Brand Blur The Evolution of Store Brands Budget Cheap Genuine Category Alternative “Me-Too” Competitor Partner Private Label is Private Label imitates Private Label becomes a Together, the manufacturer store’s value brand the brand leaders in valid branded offer in its and retailer take a holistic an attempt to own right, often inhabiting category management generate a “rub off” a position of strength where approach based on deep effect by association. manufacturer is weak or shopper insights, with total the market is fragmented. category growth in mind. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 13
  • Winning the On-Shelf War Brand Blur The Evolution of Store Brands “Many store brands are moving away from the copycats to their own brand identification, and shoppers are now aware enough of store brand quality that they don’t have to rely on copycat (packaging) for accidental sales.” Brian Rafferty, Brand Union This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 14
  • Winning the On-Shelf War Brand Blur Private Label as Competitor This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 15
  • What are consumers not telling you about your brand? What is the “value” of on-shelf differentiation? What are consumers looking for on-shelf and how will they find you? How can emerging technologies create differentiation? This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 16
  • Graphic Packaging International Creating Value On-Shelf This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 17
  • Winning the On-Shelf War Creating Value On-Shelf Packaging as a Critical Component of the Integrated Marketing Mix On-Shelf Differentiation Creating Trust Establishes “Value” (Clarity and Brand Promise) Engaging the Consumer in “Real-time” with the Package to Grow Equity Tying together the Digital Experience and the Package Experience Creates a “New” Brand Experience This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 18
  • Winning the On-Shelf War Creating Value On-Shelf Printing Enhancements to Gain On-Shelf Differentiation This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 19
  • Winning the On-Shelf War Creating Value On-Shelf Shape as a Differentiator This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 20
  • Winning the On-Shelf War Creating Value On-Shelf New Printing Technologies Become Accessible Holographic Coatings (Cast and Cure) Metallic Effects (in-line Cold Foil application) No Coating Cast and Cure This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 21
  • What are consumers not telling you about your brand? What is the “value” of on-shelf differentiation? What are consumers looking for on-shelf and how will they find you? How can emerging technologies create differentiation? This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 22
  • Graphic Packaging International New Tools That Create Brand Value This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 23
  • Winning the On-Shelf War New Tools That Create Brand Value Engaging the Consumer in “Real-time” with the Package to Grow Equity. Tying together the Digital Experience and the Package Experience Creates a “New” Brand Experience This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 24
  • Winning the On-Shelf War New Tools That Create Brand Value Integrated Mobile Marketing Facts 200+ Million Americans carry mobile phones – over half the country’s population. Cell phones are used by over 3.1 billion people globally. 40% of Major Brands have deployed text messaging (SMS) campaigns. 18% of Major Brands have deployed multimedia messaging (MMS) campaigns. The Mobile Marketing and Advertising market will be valued at over $5 billion by 2012. In August 2007, nearly 40 million US Consumers received SMS advertisements, and 12 percent responded to them. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 25
  • Winning the On-Shelf War New Tools That Create Brand Value Mobile Marketing Trends for 2010 1. Text message marketing goes mainstream 2. Texting will be offered by local media 3. Retailers will move beyond mobile marketing to enhance the overall shopping experience. 4. Smartphone applications will create new ways to engage customers. 5. Optimized mobile web sites become affordable and customized. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 26
  • Winning the On-Shelf War New Tools That Create Brand Value Augmented Reality Picks up where Virtual Reality leaves off, but without the bulky glasses. At the outset, this technology looks like it will fall into the category of entertainment and information to produce things like three- dimensional maps, store locators, travel guides, etc. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 27
  • Winning the On-Shelf War New Tools That Create Brand Value Interactive Codes and Two-Dimensional Barcodes These are all about consumer interaction and giving consumers more opportunities to interact with brands. Participation in Loyalty Programs, Instant redeemable couponing, etc. are all part of the mix. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 28
  • Key Take-Aways This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 29
  • Winning the On-Shelf War Key Take Aways “If people feel a strong emotional connection with a brand, they will remain loyal. But, squeezed by economic uncertainty, that emotional connection gets tested, strained even. To maintain – and strengthen – this connection through a recession, companies must remain dedicated to building their brand.” Warren Baxter This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 30
  • Winning the On-Shelf War Stick to Your Long-Term Goals. 1. Deviating from your brand strategy by running “urgency” campaigns designed to create quick sales may help short-term cash flow, but loyal customers may view it as cheapening your offer to the market. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 31
  • Winning the On-Shelf War Maintain or Increase Your Marketing Budget. 2. When the market goes quiet, successful Brands typically increase their presence with strong branding activities. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 32
  • Winning the On-Shelf War Be Authentic. Don’t Dilute Your Brand. 3. Focus your company’s efforts on maintaining or increasing its brand presence in an authentic manner that is consistent with its promise to the consumer. If your brand is about luxury and exclusivity, offering low-end products to attract more buyers will only decrease consumers’ perceived value of your brand. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 33
  • Winning the On-Shelf War Think Beyond Advertising. 4. Branding covers all of the touch points between your business and your customer, from your direct mail to packaging to website to office and retail environment. Every touch point is part of your brand – Consider how changes in your company’s activities and structure may affect your customers. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 34
  • Winning the On-Shelf War Deliver on Your Brand Promise. 5. A recession is an emotional time – consumers need reassurance that they are making the right choices. If your marketing activities create mistrust by under-delivering on their expectations of your brand, consumers may switch to a safer alternative. This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 35
  • Winning the On-Shelf War Key Take-Aways “At times like this, people are more particular about where they spend their money. A company’s brand is its promise, as assurance of the best choice – any lack of authenticity or failure to deliver on that promise diminishes the brand and has direct financial implications” World Advertising Research Center This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 36
  • Graphic Packaging International Thank You This information is confidential and proprietary to Graphic Packaging International. Any reproduction or distribution to any 3rd party is strictly prohibited. 37