Value Discovery and Collaborative Innovation
Value chain discovery and
                   collaborative innovation
The Eco-Clip case

      27nd April 2005




Jef Verplaetse          CEO Van Genechten Packaging
Marit van Egmond        Albert Heijn Retailers (Ahold)
Mark Daggelders         Head production Hoogesteger Fresh Specialist
Consumer
Value Discovery and Collaborative Innovation



Value is everywhere

  consumer
  retailer
  design agency
  packaging industry
  producer
Value Discovery and Collaborative Innovation



Value for the consumer
 Freshly prepared fruit and vegetable juices
  healthy delicious taste
  nice colour
  convenient
  affordable
  safe (tamper evident)
  same feel as “home made”
Value Discovery and Collaborative Innovation



Value for the retailer
 Freshly prepared fruit and vegetable juices
  fast rotation (combining excellent internal logistics
        with short shelf life as competitive edge)
  efficient display
  impacting point of sale buying decision
  upper class margin
  brand protection and identity (fresh segment)
  create new segment: fresh juices (home made)
Value Discovery and Collaborative Innovation



Value for the design agencies
 Flex Development and Future Brand
  Create ‘home made’ feeling
   focus on packaging design
   value driven (eco, health, future oriented)
   fresh
   realistic (industrial design, cost)
Value Discovery and Collaborative Innovation



Value for the Packaging Industry
 Van Genechten Packaging (Folding Boxes)
   demonstrate competencies
   find new applications (for board)
   build customer equity
   be part of growing business application
Value Discovery and Collaborative Innovation



Value for the producer (Hoogesteger)
 Freshly prepared fruit and vegetable juices
  develop large growing customer
  need for extreme flexibility (daily production)
  develop unique and smooth process
  delight the retail customer
  low cost solution
  preventing counterfeiting
  show more of his product (fresh fruit)
Value Discovery and Collaborative Innovation



Base condition for the development process:
       Collaborative innovation
    open mind
    positive collaborative atmosphere
    all involved parties bring in their expertise
    involving marketing psychology knowledge
    putting yourself in the position of the consumer
    permanent and direct communication
    have the decision power around the table
    efficiency
    room for common sense
Value Discovery and Collaborative Innovation
                                                     Communication role


Basic communication role of packaging
         Telling the consumer that it is fresh
  respect for the packaging preference of the consumer
    - glass = fresh clean honest
    - board = natural
  communicating the desired image to consumer
  establishing brand identity
  achieving market share growth
  differentiate from the competitor
  impact In Store decision
Value Discovery and Collaborative Innovation
                                                     Communication role


Basic communication role of packaging
         Telling the consumer that it is fresh
 First thoughts
Value Discovery and Collaborative Innovation
                                                     Communication role


Basic communication role of packaging
          Telling the consumer that it is fresh
 The ‘ear’ design
  eye catching
  visual information “what’s in the bottle”
  summary of ingredients on the back
  tamper seal
Value Discovery and Collaborative Innovation
                                                     Communication role


Basic communication role of packaging
         Telling the consumer that it is fresh
 Original design compared with final design
Value Discovery and Collaborative Innovation



Outcome for the consumer
Freshly prepared fruit and vegetable juices
  healthy Delicious taste achieved
  appealing product - see what you get
  safe (tamper evident)
  convenient (easy access, simple message)
Value Discovery and Collaborative Innovation



Outcome for Albert Heijn
 Freshly prepared fruit and vegetable juices
   30 % growth in fresh juice segment
   leading position in fresh juice segment
   positive shopper experience for            fresh juice
   surprising and exclusive packaging design
   efficient usage of chilled display space
Value Discovery and Collaborative Innovation



Outcome for Hoogesteger
Freshly prepared fruit and vegetable juices
 30 % growth with Albert Heijn
 positive impact on consumer buying habits for fresh juices
 positive and different appeal for fresh juice
 difficult to copy packaging design
 faster changeover (faster than labels)
 smoother and more stable production process
Value Discovery and Collaborative Innovation



Outcome for Packaging industry
(VGP)
 Freshly prepared fruit and vegetable juices
  new application for board.
  Pro Carton Ecma award 2004 (European Carton Makers
 Association)
  creative full service concept delivering the labels and the
 machine to put them on the bottles.
Value Discovery and Collaborative Innovation



Pictures of Product and equipment
 Freshly prepared fruit and vegetable juices
  the product
  the security seal
  the machine
  putting the label on
Value Discovery and Collaborative Innovation



Lessons learned
 innovation also means risk taking

 combining more than one new technology enhances the
risk
• clip folding
• IR gluing
• therefore enough buffer needed

 testing in real environment (chilled rooms) necessary in
order to avoid surprises in a single day launch

 language issues to be organised beforehand
Value Discovery and Collaborative Innovation
Conclusion


 Efficient innovation
          is a matter of collaboration
 finding value is not a matter of one party

 speed is achieved through efficient communication

 power of the team members is needed to unlock the
inherent value

2 Case Study Ahold Hoogesteger Van Genechten[1]

  • 1.
    Value Discovery andCollaborative Innovation Value chain discovery and collaborative innovation The Eco-Clip case 27nd April 2005 Jef Verplaetse CEO Van Genechten Packaging Marit van Egmond Albert Heijn Retailers (Ahold) Mark Daggelders Head production Hoogesteger Fresh Specialist
  • 2.
  • 3.
    Value Discovery andCollaborative Innovation Value is everywhere  consumer  retailer  design agency  packaging industry  producer
  • 4.
    Value Discovery andCollaborative Innovation Value for the consumer Freshly prepared fruit and vegetable juices  healthy delicious taste  nice colour  convenient  affordable  safe (tamper evident)  same feel as “home made”
  • 5.
    Value Discovery andCollaborative Innovation Value for the retailer Freshly prepared fruit and vegetable juices  fast rotation (combining excellent internal logistics with short shelf life as competitive edge)  efficient display  impacting point of sale buying decision  upper class margin  brand protection and identity (fresh segment)  create new segment: fresh juices (home made)
  • 6.
    Value Discovery andCollaborative Innovation Value for the design agencies Flex Development and Future Brand Create ‘home made’ feeling  focus on packaging design  value driven (eco, health, future oriented)  fresh  realistic (industrial design, cost)
  • 7.
    Value Discovery andCollaborative Innovation Value for the Packaging Industry Van Genechten Packaging (Folding Boxes)  demonstrate competencies  find new applications (for board)  build customer equity  be part of growing business application
  • 8.
    Value Discovery andCollaborative Innovation Value for the producer (Hoogesteger) Freshly prepared fruit and vegetable juices  develop large growing customer  need for extreme flexibility (daily production)  develop unique and smooth process  delight the retail customer  low cost solution  preventing counterfeiting  show more of his product (fresh fruit)
  • 9.
    Value Discovery andCollaborative Innovation Base condition for the development process: Collaborative innovation  open mind  positive collaborative atmosphere  all involved parties bring in their expertise  involving marketing psychology knowledge  putting yourself in the position of the consumer  permanent and direct communication  have the decision power around the table  efficiency  room for common sense
  • 10.
    Value Discovery andCollaborative Innovation Communication role Basic communication role of packaging Telling the consumer that it is fresh  respect for the packaging preference of the consumer - glass = fresh clean honest - board = natural  communicating the desired image to consumer  establishing brand identity  achieving market share growth  differentiate from the competitor  impact In Store decision
  • 11.
    Value Discovery andCollaborative Innovation Communication role Basic communication role of packaging Telling the consumer that it is fresh First thoughts
  • 12.
    Value Discovery andCollaborative Innovation Communication role Basic communication role of packaging Telling the consumer that it is fresh The ‘ear’ design  eye catching  visual information “what’s in the bottle”  summary of ingredients on the back  tamper seal
  • 13.
    Value Discovery andCollaborative Innovation Communication role Basic communication role of packaging Telling the consumer that it is fresh Original design compared with final design
  • 14.
    Value Discovery andCollaborative Innovation Outcome for the consumer Freshly prepared fruit and vegetable juices  healthy Delicious taste achieved  appealing product - see what you get  safe (tamper evident)  convenient (easy access, simple message)
  • 15.
    Value Discovery andCollaborative Innovation Outcome for Albert Heijn Freshly prepared fruit and vegetable juices  30 % growth in fresh juice segment  leading position in fresh juice segment  positive shopper experience for fresh juice  surprising and exclusive packaging design  efficient usage of chilled display space
  • 16.
    Value Discovery andCollaborative Innovation Outcome for Hoogesteger Freshly prepared fruit and vegetable juices  30 % growth with Albert Heijn  positive impact on consumer buying habits for fresh juices  positive and different appeal for fresh juice  difficult to copy packaging design  faster changeover (faster than labels)  smoother and more stable production process
  • 17.
    Value Discovery andCollaborative Innovation Outcome for Packaging industry (VGP) Freshly prepared fruit and vegetable juices  new application for board.  Pro Carton Ecma award 2004 (European Carton Makers Association)  creative full service concept delivering the labels and the machine to put them on the bottles.
  • 18.
    Value Discovery andCollaborative Innovation Pictures of Product and equipment Freshly prepared fruit and vegetable juices  the product  the security seal  the machine  putting the label on
  • 23.
    Value Discovery andCollaborative Innovation Lessons learned  innovation also means risk taking  combining more than one new technology enhances the risk • clip folding • IR gluing • therefore enough buffer needed  testing in real environment (chilled rooms) necessary in order to avoid surprises in a single day launch  language issues to be organised beforehand
  • 24.
    Value Discovery andCollaborative Innovation Conclusion Efficient innovation is a matter of collaboration  finding value is not a matter of one party  speed is achieved through efficient communication  power of the team members is needed to unlock the inherent value