Investing in the most creative idea or the newest manufacturing tool is most often not enough to ensure success. What if consumers are not ready for it yet? Or not prepared to pay a premium for it? One of our consumer research specialists Nancy Savoya, showed how you can pinpoint exactly which packaging features create the most value for your customers, and most importantly: how much they are willing to pay for them.

1. expect great answers
Packaging Innovation: Are you spot on?
Let’s ask your consumers…
SKIM | Consumer Research | InnoCos Pack Amsterdam 2012

2. Session Agenda
Introducing Case Study Listen to Your
Insights
SKIM Intro consumers questions!

3. London
Rotterdam
New York Geneva
San Francisco

4. 4

5. Case study:
What is the right packaging to launch Aveeno 100% Organic
body lotion?
5 Fictitious example

6. The brief
1 3
Communicating
A delight to use
green brand
values
2 4
Standing out Without losing
from shelf the “indulgence”
feel
6

7. The packaging and marketing teams are considering
various packaging options for further development…
Shape Outer packaging
Vs.
Artwork
Dispensing System
Sustainability
8

8. Business objectives
1. Which packaging features command
the highest appeal/ purchase intent?
2. To what extent should the packaging
be “green” for this new organic
formula?
3. To what extent does the packaging
execution command a premium
price?
9

9. How do we get these insights?
Packaging Optimizer – the synthesis of an optimal
packaging design
10

10. We invite body lotion users to take an online survey
The core of the survey is an exercise
where respondents choose the pack
they find the most appealing
11

11. What do consumers see?
Below you see three different body lotion Aveeno Organic. Which one do you find most appealing?
Dispensing system
Bottle shape
Artwork
Carton vs. no carton
Biodegradability
Price $7.99 (8 oz) $8.99 (8 oz) $7.49 (8 oz)
Follow-up purchase intent Given what you know about the market, would you actually buy the body lotion you chose above?
question
12

12. Every concept is built as a combination of features
Dispensing Outer
Shape Artwork Sustainability Price
System Packaging
$7.99
No $8.99
13

13. This exercise is repeated during the survey, each time
with different packaging options
14

14. In addition, we dig deeper through diagnostic and real-
time tailored open ends
Your preferred bottle for “Aveeno Organic” body lotion is:
What is it that you dislike about it
What do you like about it?
and would like to see improved?
15

15. Open-end feedback allows us to get a thorough
understanding of drivers of preference
You prefer this logo over others, what do you like about it?
1. 89% Biodegradable
More believable than 99% or 100% 59%
89% biodegradable is already very high 32%
Sounds less commercial than the others 27%
N = 315
“I would already be happy with
“I don’t believe that 99% or 89% biodegradable. I don’t
“99% sounds too much like
100% biodegradable is know any other body lotions
advertising: 89% sounds
possible to achieve in such which achieve that level!”
more honest to me”
products”
16 Fictitious results

16. What can we learn from this?
Insights
17

17. Define features’ impact on consumer choice
Dispensing system
Bottle shape
Artwork
With carton w/o carton
Carton pack
Biodegradability
9.99 9.49 8.99 7.99 7.49 6.99
Price
Added value
18 Fictitious results

18. Based on consumers’ preferences, we identify the best
overall packaging
Best combination
2nd best
3rd best
Appeal: 66.8%
Appeal: 64.5%
Appeal: 61.5%
19 Fictitious results

19. We then determine how far you can stretch the price with
the preferred packaging
Share of choice
70%
60%
50% benchmark
40%
30%
20%
10%
0%
Base Case $6.99 $7.49 $7.99 $8.99 $9.49
$6.99
20 Fictitious results Share of Choice: % of people who say they would purchase this option, given what they know about the market

20. The added value in appeal and revenue is minimal when
launching more than 2 variants
Share of Choice Revenue Index
100% 250
80%
200
60%
150
40%
20% 100
1 variant
Aveeno organic
2 variants 3 variants 4 variants 5 variants
Aveeno organic Aveeno organic Aveeno organic Aveeno organic
21 Fictitious results Share of Choice: % of people who say they would purchase this option, given what they know about the market

21. Two clusters are identified via their preferences to Aveeno
Organic packs’ features
43% 57%
Green Fans
Driven by both a strict
adherence to green
values and
convenience.
Experience Seekers
Looking for a luxurious experience, wants
to treat herself well even if she has to
slightly compromise on green values.
22 Fictitious results

22. Both clusters are identified via their preferences to Aveeno
Organic packs’ features
Green Fans
She likes:
 100% biodegradable, without Experience Seekers
carton box
 Larger pump  convenience/ She prefers a body lotion with:
only 1 press and you get the  Sophisticated design (artwork)
right amount of product  Recyclable or 89% biodegradable
 Economical (“good enough”)
 Carton box (YET recyclable)
Less important for her:
Less important for her:
• Packaging design
• Price
23 Fictitious results

23. Offering two products to target these two segments
maximizes appeal and revenue
Green Fans Experience Seekers
+
$7.49 (8 oz) $9.49 (8 oz)
Appeal: 73.9% Appeal: 87.3%
Total sample
Combined total portfolio appeal: 78.9%
Combined total portfolio revenue index: 306
24 Fictitious results

24. Recommendations
Two scenarios are possible to consider for Aveeno Organic :
1. If one line only:
• Product with highest appeal  $7.99
2. Future line expansions  develop two lines
+
$7.49 (8 oz) $9.49 (8 oz)
25 Fictitious results

25. Thank you!
26

26. contact us or follow us online!
Nancy Savoya | Account Director | Consumer Research
n.savoya@skimgroup.com | 00 41 22 710 0190