We had the privilege of presenting at the Atoz Innovation Village workshop in Prague recently. My topic was 'Packaging Innovation when sales are down' and i've transcribed my presentation and notes here so that you can follow along. Enjoy!

1. KNOWLEDGE
PACKAGING INNOVATION
maximising ROI when sales are down
Presented at Innovation Village, June 09, 2011
Hey
there,
We
had
the
privilege
of
speaking
at
the
wonderful
Innova&on
Village
workshop
last
Thursday,
put
on
by
Atoz
Publishing
and
Atoz
Events.
For
those
that
were
not
able
to
a@end
(or
even
for
those
of
you
that
did)
here
is
an
annotated
version
of
my
talk
which
should
give
you
a
sense
of
the
content
and
hopefully
a
bit
of
inspiraEon.
If
you
have
any
quesEons
or
comments,
don’t
hesitate
to
contact
me
at
d.kaufman@cg-­‐eu.com
Best
regards,
Douglas
Kaufman,
Cocoon
Group

2. When
originally
given
the
theme
for
this
event,
I
immediately
thought
of
the
legend
of
the
guy
that
went
to
the
Colgate
boardroom
with
an
envelope
in
which
he
says
he
has
a
formula
to
instantly
increase
sales
of
all
toothpastes
10%,
and
that
he
will
give
them
the
envelope
for
1
million
dollars.
In
this
parEcular
legend,
the
board
of
Colgate
is
a
sporEng
bunch,
and
they
take
the
guy
up
on
his
offer.
So
he
hands
over
the
envelope.
Any
idea
what
was
wri@en
on
the
paper
inside?
“A guy walks into the
Colgate boardroom…”

3. Simply
increase
the
diameter
of
the
package
opening
4.5%
and
sales
will
go
up
10%
as
people
will
use
that
much
more
toothpaste
per
usage.
So,
even
if
you
forget
everything
else
I’m
about
to
say,
remember
that
you
just
got
1
million
dollars
worth
of
packaging
innovaEon
advice
right
there.
+4.5%

4. The brief…
Give a 30 minute presentation
on “packaging innovation
when sales are down”
So,
originally
I
was
given
this
brief
by
Jeff
to
give
a
30
minute
talk
on
‘packaging
innovaEon
when
sales
are
down’
which
seemed
straighorward
enough
–unEl
I
actually
got
home
and
began
wriEng
this
presentaEon.
At
which
point
several
quesEons
came
up
which
would
profoundly
affect
what
the
content
of
the
presentaEon
would
be.
For
instance…

5. Why
are sales down?

6. Why
are sales down?
Are we in
a recession?
Because
if
so,
there
are
several
pack
innovaEon
strategies
we
might
follow
to
help
us
weather
the
bad
economy.
Firstly…

7. Can we lower our
bottom line?

8. If
lowering
costs
is
the
objecEve
then
the
best
way
to
innovate
your
packaging
might
be
to
get
rid
of
it.
Over-­‐packaging
is
on
people’s
minds
these
days
so
a
move
to
less
material
could
mean
not
only
an
easing
of
your
budget,
but
could
also
make
you
more
popular
with
consumers.
It
could
also
make
you
more
compliant
with
gov’t
regulaEons.
Sainsburys
is
currently
the
first
retailer
being
sued
by
the
government
for
over-­‐
packaging.

9. Do
you
really
need
all
of
those
flashy
colors?
A
minimalist
look,
using
less
ink
will
save
you
money
and
give
you
a
more
sophisEcated
look
and
feel.
And
before
you
go
saying
“it’s
all
well
and
good
for
these
niche
products
to
go
minimalist,
but
I’m
in
a
mainstream
product
like
juices
and
fruit
drinks.
We
need
lots
of
colors,
shiny
eye
catching
materials,
shrink
sleeves.
It’s
just
the
way
the
category
works.”…

10. Well,
here
is
your
category
leader
–a
simple
2-­‐3
color
design
on
recycled
paper
on
a
standard
bo@le.
Something
innocent
‘gets’
that
we
all
tend
to
forget
-­‐
Simplicity
catches
and
holds
our
a@enEon
through
the
clu@er
of
flashy.
Now
innocent
is
the
‘thought
leader’
as
well
as
the
market
leader
in
smoothies.
And
if
this
isn’t
convincing
enough….

11. The
biggest,
boldest
brand
in
the
world
just
simplified.
Not
only
does
this
return
the
brand
to
it’s
iconic
roots,
it
also
saves
them
a
ton
of
money
as
fewer
colors
are
used.
I
don’t
know
the
exact
number
of
colors,
but
somewhere,
there’s
a
guy
that
makes
yellow
ink
who
cries
himself
to
sleep
every
night.
75,380,201,500
Cans printed yearly

12. Can we innovate the way
we create packaging?
In
a
recession
situaEon,
maybe
we
should
innovate
how
we
do
packaging
rather
than
the
packaging
itself
-­‐
finding
a
more
efficient
way
to
produce
your
packaging.
Of
course
there
is.

13. Almost
without
excepEon,
print
supply
networks
are
grossly
inefficient.
You
have
brand
managers,
marketers,
trying
to
manage
an
essenEally
technical
process.
Oien
data
and
knowledge
are
in
the
hands
of
the
suppliers
themselves,
making
it
either
too
risky,
too
much
hassle,
or
too
Eme
consuming
to
change
suppliers
to
someone
be@er
suited
to
the
project
or
the
brand.
We
oien
get
a
brief
which
expresses
a
desperate
need
for
revitalizaEon
when
basic
tools
such
as
the
bo@le
type
or
label
size
have
already
been
decided…by
the
printer!!!

14.
Oien
it's
enough
to
centralize
the
data.
centralize
the
knowledge
and
communicaEon,
freeing
you
up
to
find
the
best,
most
efficient
soluEons
for
each
brand
and
product.
That,
for
instance,
is
we
created
our
division
CG
Artworx*
to
do.
*for
more
about
CG
Artworx,
check
out
our
Knowledge
Center
(www.cg-­‐artworx.com)
or
our
website
(www.cg-­‐eu.com)

15. Can we help our
customers save some
money?

16. Bulk
packs,
economy
sizes,
and
value
packs
save
your
customers
money
and
also
save
YOU
producEon
money!

17. The
clever
li@le
bag,
aside
from
being
sustainable
and
taking
less
to
produce
is
also
reuseable..further
adding
value
and
punng
an
innovaEve
spin
on
the
typical
shoebox.
Clever little bag
-65% paper
-60% energy reduction
-60% water reduction
-60% diesel reduction
-10,000 tons CO2
reusable

18. Why
are sales down?
Are sales down because
we’re in a dull or
commoditized category?
Maybe
we’re
not
in
a
recession
at
all.
Maybe
we’re
just
in
a
dull
or
commodiEzed
category.
What
pack
innovaEon
strategies
can
we
follow
in
this
case?

19. Can we use packaging to bust
out of our category and enter
new ones?

20. Salt: the ultimate commodity

21. Design
is
a
tried
and
true
way
to
bring
value
to
a
commodiEzed
category.
Especially
3D
design.
It’s
not
enough
to
try
to
put
a
pre@y
picture
on
the
same
old
plasEc
bag
and
think
we’re
going
to
bust
out
of
commodity-­‐hood.
Think
material.
Think
shape.
Think
outside
the
bag!

22. Another
innovaEon
strategy
in
a
highly
commodiEzed
category
is….no
innovaEon.
SEck
to
your
roots
even
as
your
compeEtors
try
gimmick
aier
gimmick
to
reinvigorate
the
category.
You
will
stand
as
an
icon
that
stands
for
stability
and
security.
This
is
obviously
a
long
term
strategy.

23. Why
are sales down?
Are sales down against
our competition?
Another
reason
sales
might
be
down
is
against
our
direct
compeEtors
who
are
either
more
acEve,
undercunng
us
with
price
or
promoEon,
or
seen
as
a
be@er
value
for
whatever
reason.
Packaging
innovaEon
can
help
us
recapture
a
leadership
posiEon
in
consumers
minds.

24. For
pack
innovaEons
to
do
this
most
effecEvely
–to
bring
real
long-­‐term
value,
they
will
provide
a
sense
of
novelty,
accessibility,
funcEonality,
and/or
brand
relevance.
Heinz
tomato
ketchup
is
a
great
example
of
a
leader
under
pressure
from
compeEtors,
private
labels,
and
newer
condiment
choices
who
re-­‐captured
a
sense
of
category
leadership
through
real
packaging
innovaEon.
The
result
was
a
product
that
was
be@er,
more
a@uned
to
consumer
needs,
and
Heinz
seemed
like
the
most
up
to
date,
modern
brand
out
there.
Suddenly
everyone
was
rushing
to
…catch-­‐up!*
Novelty
Accessibility
Functionality
Brand relevance
*note
to
self…word-­‐play
jokes
do
not
translate
well.

25. Sometimes it’s simply
about creatively applying
technology to fit your
brand and your product

26. What role does packaging
play as part of the
innovation pipeline?
What
if
we’re
not
talking
about
packaging
innovaEon
at
all,
but
packaging’s
role
in
product
innovaEon?
Well,
I’ve
got
some
advice
for
you
here
as
well…

27. Unless
everyone
coming
into
the
store
has
seen
your
million
dollar
TV
advert
and
is
rushing
out
specifically
to
buy
your
new
product,
then
packaging
plays
the
most
crucial
role
of
all
in
product
innovaEon…
Communicating the
new value proposition

28. Tools
are
all
right
here...
USE
THEM!
(again,
it’s
not
just
slapping
on
new
pictures)
Shape
Color
Nomenclature
materials

29. Gums
are
a
great
example.
Originally
for
kids
and
full
of
sugar.
When
sugarless
gum
came
out,
gum
manufacturers
needed
to
convey
that
this
was
not
a
children’s
product
anymore.

30. Every
tool
was
used
–color,
nomenclature,
materials,
shapes,
etc.
to
build
on
the
idea
that
gums
are
an
almost
medical
product
for
adults.

31. Why Sales are Down…
A recession situation
innovate to lower costs
innovate for greater process efficiency
innovate to find savings for customers
A commodity situation
innovate to change categories
value through design (especially 3d)
don’t innovate –celebrate your heritage
A competitive situation
innovate to regain relevance
innovate to capitalize on new techs

32. As part of new product development
Packaging is often the first, best, and only chance at the
point of sale to convey the new value proposition!

33. Conclusion:
What do all of these
strategies and tactics have
in common?

34. An
investment
in
brain
power.
When
sales
are
down
for
whatever
reason,
It’s
not
about
spending
less.
it’s
about
spending
smart.
And
smart
means
invesEng
in
brains.
If
you
get
the
right
creaEve
partners,
they
can
help
you
save
money
on
materials.
Save
money
on
prinEng.
Save
money
on
distribuEon
or
even
producEon
if
that
is
part
of
the
objecEve
of
the
brief.
If
you
try
to
save
money
by
holding
a
pitch
or
lowballing
your
agency,
you
will
absolutely
not
get
the
best
soluEon.
And
If
sales
are
down,
you
cannot
afford
not
to
get
the
best
soluEon!
Remember,
it’s
about
return
on
investment–Making
money!
Not
saving
money!

35. Thank you for your attention.
For more information, please contact:
Cocoon Group
Douglas Kaufman
d.kaufman@cg-eu.com
00420 603 840 287
U Pruhonu 13, Prague, Czech Republic 170 00
www.cg-eu.com