Most of us are experts in our respective industries, but how do you become an expert in what the consumer wants? Jack Sanders, president and CEO-elect of Sonoco, will discuss Sonoco’s work to satisfy its customers using consumer insight research, and how this was successful in a recent collaboration with Pepperidge Farm on the brand’s popular Baked Naturals® Cracker Chip snack.
The document provides information on the United States economy, trade practices, and currency. It states that the US dollar is the dominant global reserve currency and most used in international transactions. It notes that the US current account balance was $124.1 billion in the third quarter and US trade practices involve exporting machinery and importing apparel.
Lofty Ambitions: ANN's Response to Zara's Fast Fashion Reggie Aspelund
Very rarely do I find the need to update and share a term paper for a capstone course. But in this case, the external environment changed dramatically that offered new insights that added color to my initial analysis I completed last May.
Find out why I believe Ann Inc. should pursue a private equity acquisition strategy and the importance of building a strong brand to achieve organic growth in foreign markets.
China's consumer market a huge opportunity to failtusharikhar
This document discusses developing new markets in China's consumer goods sector. It notes that while China represents a huge market opportunity, winning in China will not be easy due to intense competition, poor infrastructure, and underdeveloped distribution channels. The document outlines three common approaches companies take - waiting for payback, focusing on a few strong brands, and trying to build volume fast - but notes that none fully address the challenges, and companies following these approaches often get trapped in cycles of early success turning to drain on resources. To truly succeed, the document argues companies will need a much broader geographic presence, deeper outlet coverage, larger organizational capabilities, and to dramatically increase the scale of their operations.
This document discusses reinventing digital media and magazines through new technology and business models. It summarizes that digital is disrupting traditional media as attention and ad dollars move online. It then introduces two products - MagTitan and AdEinstein - that allow magazines to be viewed beautifully on any device and use pay-per-performance advertising. Financial projections show this new model could significantly increase a publisher's annual profits compared to print-only. The document concludes by introducing the executive team and providing a funding overview.
This report summarizes Q1 2015 trends in the US national office sector real estate market. It finds that the overall national availability rate rose slightly to 17.0% as new construction increased supply in many markets like Houston and Dallas. Asking rental rates continued to increase nationally and in major cities like New York City and San Francisco driven by new construction and tight supply. The report also discusses how companies are increasingly expanding to lower cost Sunbelt markets in the South and West for access to talent at a lower cost while pursuing the American consumer population growth in these areas.
During the 1970-1985 period, the US government ran large budget deficits averaging 2.95% of GDP while pursuing expansionary fiscal policy. Monetary policy saw interest rates rise from under 4% to over 18%. Tax rates were also cut under Reagan. GDP nearly doubled over this period while unemployment rose, leaving more Americans living in poverty. This environment of economic difficulties boosted the success of discount retailers like Wal-Mart as consumers sought out lower prices. Wal-Mart was quick to adopt new technologies to improve its operations and inventory management.
This document summarizes the market opportunity and business plan for Loeb's Crunch, a consumer goods company introducing a new condiment product. The seasoning, sauce, and condiment industry is growing and expected to continue growing in the coming years. Loeb's Crunch aims to capitalize on this as a first mover with its unique crunchy toppings. The business plan outlines strategies for establishing a national retail footprint, expanding product offerings, growing brand awareness, and achieving profitability through increased sales and margins over the next 5 years.
The document discusses the external environment and factors affecting Walmart from 1970-1985 using a PEST analysis. It analyzes the political, economic, social, and technological landscape during this period which saw high inflation, interest rates, and unemployment (stagflation). Socially, discount stores were growing in popularity. Technologically, Walmart began using in-store terminals to automatically reorder low inventory items. This external analysis helps explain Walmart's success in establishing itself as a discount retailer during a challenging economic environment.
The document provides information on the United States economy, trade practices, and currency. It states that the US dollar is the dominant global reserve currency and most used in international transactions. It notes that the US current account balance was $124.1 billion in the third quarter and US trade practices involve exporting machinery and importing apparel.
Lofty Ambitions: ANN's Response to Zara's Fast Fashion Reggie Aspelund
Very rarely do I find the need to update and share a term paper for a capstone course. But in this case, the external environment changed dramatically that offered new insights that added color to my initial analysis I completed last May.
Find out why I believe Ann Inc. should pursue a private equity acquisition strategy and the importance of building a strong brand to achieve organic growth in foreign markets.
China's consumer market a huge opportunity to failtusharikhar
This document discusses developing new markets in China's consumer goods sector. It notes that while China represents a huge market opportunity, winning in China will not be easy due to intense competition, poor infrastructure, and underdeveloped distribution channels. The document outlines three common approaches companies take - waiting for payback, focusing on a few strong brands, and trying to build volume fast - but notes that none fully address the challenges, and companies following these approaches often get trapped in cycles of early success turning to drain on resources. To truly succeed, the document argues companies will need a much broader geographic presence, deeper outlet coverage, larger organizational capabilities, and to dramatically increase the scale of their operations.
This document discusses reinventing digital media and magazines through new technology and business models. It summarizes that digital is disrupting traditional media as attention and ad dollars move online. It then introduces two products - MagTitan and AdEinstein - that allow magazines to be viewed beautifully on any device and use pay-per-performance advertising. Financial projections show this new model could significantly increase a publisher's annual profits compared to print-only. The document concludes by introducing the executive team and providing a funding overview.
This report summarizes Q1 2015 trends in the US national office sector real estate market. It finds that the overall national availability rate rose slightly to 17.0% as new construction increased supply in many markets like Houston and Dallas. Asking rental rates continued to increase nationally and in major cities like New York City and San Francisco driven by new construction and tight supply. The report also discusses how companies are increasingly expanding to lower cost Sunbelt markets in the South and West for access to talent at a lower cost while pursuing the American consumer population growth in these areas.
During the 1970-1985 period, the US government ran large budget deficits averaging 2.95% of GDP while pursuing expansionary fiscal policy. Monetary policy saw interest rates rise from under 4% to over 18%. Tax rates were also cut under Reagan. GDP nearly doubled over this period while unemployment rose, leaving more Americans living in poverty. This environment of economic difficulties boosted the success of discount retailers like Wal-Mart as consumers sought out lower prices. Wal-Mart was quick to adopt new technologies to improve its operations and inventory management.
This document summarizes the market opportunity and business plan for Loeb's Crunch, a consumer goods company introducing a new condiment product. The seasoning, sauce, and condiment industry is growing and expected to continue growing in the coming years. Loeb's Crunch aims to capitalize on this as a first mover with its unique crunchy toppings. The business plan outlines strategies for establishing a national retail footprint, expanding product offerings, growing brand awareness, and achieving profitability through increased sales and margins over the next 5 years.
The document discusses the external environment and factors affecting Walmart from 1970-1985 using a PEST analysis. It analyzes the political, economic, social, and technological landscape during this period which saw high inflation, interest rates, and unemployment (stagflation). Socially, discount stores were growing in popularity. Technologically, Walmart began using in-store terminals to automatically reorder low inventory items. This external analysis helps explain Walmart's success in establishing itself as a discount retailer during a challenging economic environment.
This document discusses the Food Safety Modernization Act (FSMA) and its implications for facilities that produce animal feed. Key points include:
1) FSMA aims to prevent food safety issues and recognizes the need for a global food safety approach. It requires facilities to implement preventative controls to identify and reduce food safety hazards.
2) Facilities that produce animal feed, including co-products used in feed from ethanol plants, will need to comply with new FSMA regulations regarding hazards analysis, preventative controls, and current good manufacturing practices.
3) FSMA definitions state that any products used for animal food are considered "food" under the act. Facilities will need to analyze hazards, implement controls,
This document summarizes Sonoco's second quarter 2012 financial results. Key points include:
- Base EPS was $0.58 compared to $0.60 in Q2 2011.
- Net sales increased 6.6% to $1.2 billion due to acquisitions and price increases offsetting lower volume.
- Gross profit rose 13.3% but SG&A expenses rose 20.5% lowering pre-tax income 2.1%.
- Guidance for full-year 2012 base EPS is $2.34 to $2.39, up from $2.29 in 2011.
Structural Packaging Summit: Using Consumer Insights to Satisfy the CustomerSonoco
Most of us are experts in our respective industries, but how do you become an expert in what the consumer wants? Jack Sanders, president and CEO-elect of Sonoco, will discuss Sonoco’s work to satisfy its customers using consumer insight research, and how this was successful in a recent collaboration with Pepperidge Farm on the brand’s popular Baked Naturals® Cracker Chip snack.
The document summarizes Harris DeLoach's remarks at a food packaging technologies summit. Some of the key challenges facing the packaging industry include regulatory changes focusing on food safety and sustainability, as well as demands from retailers and consumers for innovation and value. DeLoach believes these challenges provide opportunities for the industry. He then discusses Sonoco, the packaging company he represents, highlighting its diverse businesses and strategy of focusing on consumer packaging. DeLoach outlines several trends, like packaging format changes and sustainability, that will drive packaging innovation.
This document provides an analysis of the coffee and snack shop industry and the company Starbucks. It begins with a brief history of Starbucks and an overview of the industry. It then discusses the external factors like the general economic environment, socio-cultural trends, and technological changes that influence the industry. An analysis of Porter's Five Forces shows the bargaining power of suppliers and buyers is low, while the threat of substitutes and rivalry among competitors is high. The document also examines Starbucks' strategies, SWOT analysis, and recommendations for the company's future direction.
This document provides a marketing strategy and plan for AllSaints, a British fashion brand. It begins with an introduction and overview of the methodology used for research. It then analyzes the brand history, current market health, external factors like trends and competition, and the brand's positioning. The document proposes a vision, mission, and objectives for AllSaints. It also includes SWOT and ANSOFF analyses. Finally, it outlines marketing plans and timelines for the UK and US markets with recommendations. The overall goal is to strengthen AllSaints' brand positioning in the UK and maximize its potential in the expanding US market.
This document provides a business analysis for a British SME called Royal Wetsuit that intends to export wetsuits to the US market. Royal Wetsuit produces high-quality wetsuits with innovative warming technology. It has spare production capacity and wants to expand internationally. The analysis examines the political, economic, social, technological, and competitive environment in the US through a PEST analysis and Porter's Five Forces model. It identifies opportunities for market segmentation and a trade surplus in textiles/clothing between the EU and US. The analysis concludes that while suppliers have bargaining power and potential competition is medium-high, substitutes are limited and demand exists to utilize Royal Wetsuit's unused capacity.
The document discusses the steps for an apparel retail company to access the US market. It begins with background on trade agreements lowering barriers and increasing US consumer demand for imported apparel. It then discusses 4 steps:
1) Analyzing the large and growing US GDP indicating purchasing power.
2) Noting US investment in infrastructure like roads important for transporting goods from Mexico.
3) The large and competitive US apparel industry worth $342B by 2016, with strategies like niche marketing important.
4) Understanding the stable political environment and diverse cultural influences in the US which allow foreign investment.
Potential benefits of the US market include its large population offering a ready market, growing e-commerce
Plastic packaging in Mexico is making efforts towards sustainability by increasing use of recycled materials and reducing packaging volume. Metal and glass packaging producers are launching campaigns promoting their materials' benefits. Health and fashion trends are driving growth in beverages packaging, benefiting PET bottles and liquid cartons.
The document discusses market environment factors that affect companies. It describes the macro and micro market environments. The macro environment includes broad economic factors that influence all markets, such as gross domestic product, demographics, employment, taxes, and consumer spending. The micro environment surrounds a specific business and includes suppliers, intermediaries, customers, partners, competitors, and the public. It also provides a case study of Naked Wines, an online wine retailer, and how it ensured a robust supply chain during the COVID-19 pandemic.
The document discusses key business drivers that can transform a company over 3 years: embracing change, capturing trends like sustainability and emerging markets, diversifying business models and revenue streams, adding value through marketing, accessing capital, exporting, and focusing on research and development. It provides examples of companies in New Zealand that successfully grew from startups to $100M+ businesses by applying these drivers, such as developing alternative revenue from exercise programs or ready-made salads. The document advocates that businesses can realize untapped value and position themselves for greater success in 3 years by employing these emerging business strategies and drivers of change.
The document discusses various elements of business environment including macroeconomic factors like growth and distribution environment, economic stability, and policies. It also discusses the competitive environment, demographic factors, political and legal frameworks, and technological changes that impact businesses. Companies need thorough knowledge and interpretation of the dynamic business environment to devise appropriate strategies and adjust to changes.
The document discusses various elements of a business environment including macroeconomic factors like growth, inflation, and economic policies as well as competitive factors like industry structure and regulations. It provides examples of how companies responded to recession by reducing costs through measures like changing rental structures and thermostat settings. It also discusses the international business environment and how global factors can impact domestic markets.
Global megatrends--demographics, technological change, economic shifts in Asia, climate change and resource scarcity, and rapid urbanization--are known to be changing our world. But the collisions between these forces, although less obvious, are just as inevitable, and they can reveal hidden challenges and opportunities. Coming soon are the global Sahara, the supercompetitive city, the pop-up enterprise, global women rising, and dozens of other megatrend cross-currents, including some in your industry.
The document discusses the marketing environment and its various levels and factors. It defines marketing environment as internal and external factors that affect a company's marketing strategies. There are three levels of the marketing environment - micro, meso, and macro. The macro environment includes larger societal forces like demographic, economic, social/cultural, natural, technological, and political factors. Each of these factors is then further described in detail and how they impact marketing strategies. The document also discusses the global marketing environment, Indian marketing environment, and provides an overview of PESTEL analysis as a tool to analyze the macro environment of an organization.
The document discusses the marketing environment and its various elements. It defines marketing environment as internal and external factors that affect a firm's marketing strategies. There are three levels of the marketing environment - micro, meso, and macro. It then goes on to explain the key factors under each element of the marketing environment - demographic, economic, socio-cultural, natural, technological, and political. These include factors like population growth, income distribution, social trends, environmental concerns, technological advancements, and government regulations respectively. The document provides details on each of these environmental factors and their impact on marketing.
Walmart, Google, Best Buy, Whole Food, Chrysler (Combined) report & case studiesNurer Asif
This document contains information about case studies for a strategic management course, including analyses of Rupayan Housing Estate Limited, Walmart, Google, Whole Foods, Best Buy, and Chrysler. It provides details on the board of directors and top management of Walmart and Google. The case studies are compared based on their current situations and corporate governance structures.
Why are operations the most exposed to Corporate Social ResponsibilityFreddy COUCHY
More than ever, sustainbility is becoming crucial for business.we analysed the main problematics for implementing CSR consideration within industrial companies.
The document provides an overview of "The Breakthrough Forecast", which identifies 14 emerging technology trends or "Sweet Spots" that are expected to significantly impact markets and the global economy by 2025. It analyzes these trends across 10 critical economic sectors and forecasts that they will create trillions of dollars in new market value as businesses adapt to address sustainability challenges. The forecast is intended to help leaders understand and influence the profound economic and business model transitions underway through this "Breakthrough Decade".
Trends for corporate communicators in asia pacificDavid Brain
This document outlines 13 issues that will affect corporate communications and public affairs strategies in Asia Pacific:
1) Economic growth has increased government pressure on businesses to demonstrate social and environmental contributions.
2) Rapid growth of the middle class will drive demand for trusted brands, while inequality is increasing pressure for inclusion.
3) Communications must reach new cities and regions as wealth spreads across tiers.
4) Issues like regulation, food safety, and the environment now directly impact company revenues and reputation.
5) Stakeholder engagement and responsible practices will be increasingly important across sectors and markets.
This document discusses the Food Safety Modernization Act (FSMA) and its implications for facilities that produce animal feed. Key points include:
1) FSMA aims to prevent food safety issues and recognizes the need for a global food safety approach. It requires facilities to implement preventative controls to identify and reduce food safety hazards.
2) Facilities that produce animal feed, including co-products used in feed from ethanol plants, will need to comply with new FSMA regulations regarding hazards analysis, preventative controls, and current good manufacturing practices.
3) FSMA definitions state that any products used for animal food are considered "food" under the act. Facilities will need to analyze hazards, implement controls,
This document summarizes Sonoco's second quarter 2012 financial results. Key points include:
- Base EPS was $0.58 compared to $0.60 in Q2 2011.
- Net sales increased 6.6% to $1.2 billion due to acquisitions and price increases offsetting lower volume.
- Gross profit rose 13.3% but SG&A expenses rose 20.5% lowering pre-tax income 2.1%.
- Guidance for full-year 2012 base EPS is $2.34 to $2.39, up from $2.29 in 2011.
Structural Packaging Summit: Using Consumer Insights to Satisfy the CustomerSonoco
Most of us are experts in our respective industries, but how do you become an expert in what the consumer wants? Jack Sanders, president and CEO-elect of Sonoco, will discuss Sonoco’s work to satisfy its customers using consumer insight research, and how this was successful in a recent collaboration with Pepperidge Farm on the brand’s popular Baked Naturals® Cracker Chip snack.
The document summarizes Harris DeLoach's remarks at a food packaging technologies summit. Some of the key challenges facing the packaging industry include regulatory changes focusing on food safety and sustainability, as well as demands from retailers and consumers for innovation and value. DeLoach believes these challenges provide opportunities for the industry. He then discusses Sonoco, the packaging company he represents, highlighting its diverse businesses and strategy of focusing on consumer packaging. DeLoach outlines several trends, like packaging format changes and sustainability, that will drive packaging innovation.
This document provides an analysis of the coffee and snack shop industry and the company Starbucks. It begins with a brief history of Starbucks and an overview of the industry. It then discusses the external factors like the general economic environment, socio-cultural trends, and technological changes that influence the industry. An analysis of Porter's Five Forces shows the bargaining power of suppliers and buyers is low, while the threat of substitutes and rivalry among competitors is high. The document also examines Starbucks' strategies, SWOT analysis, and recommendations for the company's future direction.
This document provides a marketing strategy and plan for AllSaints, a British fashion brand. It begins with an introduction and overview of the methodology used for research. It then analyzes the brand history, current market health, external factors like trends and competition, and the brand's positioning. The document proposes a vision, mission, and objectives for AllSaints. It also includes SWOT and ANSOFF analyses. Finally, it outlines marketing plans and timelines for the UK and US markets with recommendations. The overall goal is to strengthen AllSaints' brand positioning in the UK and maximize its potential in the expanding US market.
This document provides a business analysis for a British SME called Royal Wetsuit that intends to export wetsuits to the US market. Royal Wetsuit produces high-quality wetsuits with innovative warming technology. It has spare production capacity and wants to expand internationally. The analysis examines the political, economic, social, technological, and competitive environment in the US through a PEST analysis and Porter's Five Forces model. It identifies opportunities for market segmentation and a trade surplus in textiles/clothing between the EU and US. The analysis concludes that while suppliers have bargaining power and potential competition is medium-high, substitutes are limited and demand exists to utilize Royal Wetsuit's unused capacity.
The document discusses the steps for an apparel retail company to access the US market. It begins with background on trade agreements lowering barriers and increasing US consumer demand for imported apparel. It then discusses 4 steps:
1) Analyzing the large and growing US GDP indicating purchasing power.
2) Noting US investment in infrastructure like roads important for transporting goods from Mexico.
3) The large and competitive US apparel industry worth $342B by 2016, with strategies like niche marketing important.
4) Understanding the stable political environment and diverse cultural influences in the US which allow foreign investment.
Potential benefits of the US market include its large population offering a ready market, growing e-commerce
Plastic packaging in Mexico is making efforts towards sustainability by increasing use of recycled materials and reducing packaging volume. Metal and glass packaging producers are launching campaigns promoting their materials' benefits. Health and fashion trends are driving growth in beverages packaging, benefiting PET bottles and liquid cartons.
The document discusses market environment factors that affect companies. It describes the macro and micro market environments. The macro environment includes broad economic factors that influence all markets, such as gross domestic product, demographics, employment, taxes, and consumer spending. The micro environment surrounds a specific business and includes suppliers, intermediaries, customers, partners, competitors, and the public. It also provides a case study of Naked Wines, an online wine retailer, and how it ensured a robust supply chain during the COVID-19 pandemic.
The document discusses key business drivers that can transform a company over 3 years: embracing change, capturing trends like sustainability and emerging markets, diversifying business models and revenue streams, adding value through marketing, accessing capital, exporting, and focusing on research and development. It provides examples of companies in New Zealand that successfully grew from startups to $100M+ businesses by applying these drivers, such as developing alternative revenue from exercise programs or ready-made salads. The document advocates that businesses can realize untapped value and position themselves for greater success in 3 years by employing these emerging business strategies and drivers of change.
The document discusses various elements of business environment including macroeconomic factors like growth and distribution environment, economic stability, and policies. It also discusses the competitive environment, demographic factors, political and legal frameworks, and technological changes that impact businesses. Companies need thorough knowledge and interpretation of the dynamic business environment to devise appropriate strategies and adjust to changes.
The document discusses various elements of a business environment including macroeconomic factors like growth, inflation, and economic policies as well as competitive factors like industry structure and regulations. It provides examples of how companies responded to recession by reducing costs through measures like changing rental structures and thermostat settings. It also discusses the international business environment and how global factors can impact domestic markets.
Global megatrends--demographics, technological change, economic shifts in Asia, climate change and resource scarcity, and rapid urbanization--are known to be changing our world. But the collisions between these forces, although less obvious, are just as inevitable, and they can reveal hidden challenges and opportunities. Coming soon are the global Sahara, the supercompetitive city, the pop-up enterprise, global women rising, and dozens of other megatrend cross-currents, including some in your industry.
The document discusses the marketing environment and its various levels and factors. It defines marketing environment as internal and external factors that affect a company's marketing strategies. There are three levels of the marketing environment - micro, meso, and macro. The macro environment includes larger societal forces like demographic, economic, social/cultural, natural, technological, and political factors. Each of these factors is then further described in detail and how they impact marketing strategies. The document also discusses the global marketing environment, Indian marketing environment, and provides an overview of PESTEL analysis as a tool to analyze the macro environment of an organization.
The document discusses the marketing environment and its various elements. It defines marketing environment as internal and external factors that affect a firm's marketing strategies. There are three levels of the marketing environment - micro, meso, and macro. It then goes on to explain the key factors under each element of the marketing environment - demographic, economic, socio-cultural, natural, technological, and political. These include factors like population growth, income distribution, social trends, environmental concerns, technological advancements, and government regulations respectively. The document provides details on each of these environmental factors and their impact on marketing.
Walmart, Google, Best Buy, Whole Food, Chrysler (Combined) report & case studiesNurer Asif
This document contains information about case studies for a strategic management course, including analyses of Rupayan Housing Estate Limited, Walmart, Google, Whole Foods, Best Buy, and Chrysler. It provides details on the board of directors and top management of Walmart and Google. The case studies are compared based on their current situations and corporate governance structures.
Why are operations the most exposed to Corporate Social ResponsibilityFreddy COUCHY
More than ever, sustainbility is becoming crucial for business.we analysed the main problematics for implementing CSR consideration within industrial companies.
The document provides an overview of "The Breakthrough Forecast", which identifies 14 emerging technology trends or "Sweet Spots" that are expected to significantly impact markets and the global economy by 2025. It analyzes these trends across 10 critical economic sectors and forecasts that they will create trillions of dollars in new market value as businesses adapt to address sustainability challenges. The forecast is intended to help leaders understand and influence the profound economic and business model transitions underway through this "Breakthrough Decade".
Trends for corporate communicators in asia pacificDavid Brain
This document outlines 13 issues that will affect corporate communications and public affairs strategies in Asia Pacific:
1) Economic growth has increased government pressure on businesses to demonstrate social and environmental contributions.
2) Rapid growth of the middle class will drive demand for trusted brands, while inequality is increasing pressure for inclusion.
3) Communications must reach new cities and regions as wealth spreads across tiers.
4) Issues like regulation, food safety, and the environment now directly impact company revenues and reputation.
5) Stakeholder engagement and responsible practices will be increasingly important across sectors and markets.
Similar to Structural Packaging Summit Remarks (16)
Trends for corporate communicators in asia pacific
Structural Packaging Summit Remarks
1. JACK SANDERS REMARKS
STRUCTURAL PACKAGING SUMMIT
FEBRUARY 27, 2013
TOPIC: EMERGING TRENDS AND USING CONSUMER
INSIGHTS TO MEET THOSE TRENDS/SATISFY THE
CUSTOMER
1
2. (SLIDE 1 – INTRO SLIDE)
CLEARLY, THE PACKAGING INDUSTRY CONTINUES TO
FACE CHALLENGES AND CHANGING CONSUMER
PREFERENCES. SO TODAY I WANT TO SHARE WITH YOU
HOW WE ARE USING TRENDS AND CONSUMER INSIGHTS
TO GROW OUR CONSUMER PACKAGING BUSINESSES.
BEFORE I BEGIN, I WOULD LIKE TO TELL YOU A LITTLE
ABOUT SONOCO.
(SLIDE 2 – SONOCO OVERVIEW)
ACTUALLY, SONOCO IS A 113-YEAR OLD GLOBAL
PACKAGING COMPANY HEADQUARTERED IN HARTSVILLE,
SOUTH CAROLINA.
WE JUST REPORTED OUR 2012 RESULTS AND ACHIEVED
RECORD SALES OF $4.8 BILLION. WE HAVE NEARLY 20,000
EMPLOYEES, WORKING IN 347 OPERATIONS IN 34
COUNTRIES AROUND THE WORLD. WE PROVIDE
PACKAGING TO MANY OF THE BEST KNOWN BRANDS IN
OVER 85 DIFFERENT NATIONS.
2
3. AS YOU CAN SEE BY THIS SLIDE ABOUT TWO-THIRDS OF
OUR SALES ARE IN THE UNITED STATES. THAT SAID, WE
HAVE A GROWING PRESENCE IN THE EMERGING MARKETS
OF EASTERN EUROPE, SOUTHEAST ASIA AND LATIN
AMERICA.
3
4. SONOCO HAS FOUR OPERATING SEGMENTS:
(1) OUR LEGACY BUSINESS IS OUR INDUSTRIAL
PACKAGING SEGMENT WHERE WE ARE THE WORLD’S
LARGEST PRODUCER OF PAPER-BASED TUBES AND
CORES THAT SERVE THE TEXTILE, PAPER, PLASTIC
FILM AND TAPE INDUSTRIES.
(2) OUR NEWEST SEGMENT IS PROTECTIVE SOLUTIONS,
WHERE WE PRODUCE CUSTOM-ENGINEERED
PROTECTIVE PACKAGING FOR CONSUMER
PRODUCTS, MOLDED FOAM COMPONENTS FOR THE
AUTOMOTIVE MARKET; TEMPERATURE-ASSURED
PACKAGING FOR THE LIFE SCIENCE INDUSTRY AND
FINALLY, HIGH VISIBILITY SECURITY PACKAGING FOR
THE RETAIL INDUSTRY.
4
5. (3) CONSUMER PACKAGING, WHICH INCLUDES PAPER-
BASED COMPOSITE CANS (THINK OF PRINGLES),
FLEXIBLE PACKAGING (THINK OF OUR PATENTED
SMARTSEAL OPEN AND RECLOSE FEATURE ON OREO
COOKIES), RIGID PLASTIC CONTAINERS, INCLUDING
BLOW-MOLDED BOTTLES FOR FOOD AND PERSONAL
CARE PRODUCTS; THERMOFORMED TRAYS FOR
FROZEN FOODS; INJECTION MOLDED COMPONENTS
AND EXTRUDED CARTRIDGES FOR ADHESIVES AND
SEALANTS.
(4) ALSO, PART OF OUR CONSUMER PORTFOLIO IS OUR
DISPLAY AND PACKAGING SEGMENT, WHERE WE
PROVIDE POINT-OF-PURCHASE DISPLAYS AND
PACKAGING FULFILLMENT SERVICES FOR LARGE
CPGS. FOR INSTANCE, WE PACKAGE ALL GILLETTE’S
RAZORS AND BLADES IN NORTH AMERICA AND
EUROPE.
5
6. (SLIDE 3 – CONSUMER TRENDS)
AS MENTIONED EARLIER, THE PACKAGING INDUSTRY
CONTINUES TO FACE CHALLENGES AND CHANGE.
SOME OF THESE CHALLENGES ARE LISTED HERE AS
CONSUMER TRENDS ARE FORCING CHANGES IN
PACKAGING.
HOWEVER, I DO BELIEVE WE FACE ONE OF THE MOST
UNIQUE AND OPPORTUNISTIC TIMES OUR WORLD HAS
EVER EXPERIENCED. I WANT TO SPEAK WITH YOU TODAY
ABOUT MANY OF THE POSITIVE TRENDS WE SEE WHEN WE
LOOK INTO THE FUTURE AND HOW WE ARE WORKING TO
TAKE ADVANTAGE OF THESE OPPORTUNITIES.
6
7. (SLIDE 4 – WHAT IS THE ECONOMY TELLING US?)
BUT, BEFORE I GET INTO THE HEART OF MY
PRESENTATION, IT IS IMPORTANT TO UNDERSTAND
WHERE WE ARE IN THE CURRENT ECONOMIC CYCLE AND
THE IMPACT IT HAS ON PACKAGING.
ALTHOUGH WE HAVE HAD SOME RESOLUTION TO THE
“FISCAL CLIFF,” THERE ARE MANY OPEN ISSUES AND I
BELIEVE WE ARE STILL IN FOR ANOTHER YEAR OF SLOW
GROWTH.
OVERALL, WE BELIEVE U.S. GDP WILL GROW AT LESS
THAN 2% IN 2013 AS CONSUMER CONFIDENCE IS SHAKY,
AND THE DATA IS A BIT CONTRADICTORY.
FOR INSTANCE, ON THE NEGATIVE SIDE, U.S. GDP
DECLINED IN THE FOURTH QUARTER OF 2012 AND MOST
OF EUROPE REMAINS IN RECESSION.
7
8. ON THE POSITIVE SIDE, U.S. HOUSING STARTS HAVE
GROWN SIGNIFICANTLY AND ARE AVERAGING ABOUT
950,000 UNITS ANNUALLY. THIS IS ABOUT ONE-THIRD OF
THE PEAK VOLUME IN 2005, BUT, UP SIGNIFICANTLY FROM
THE DEPTHS OF THE GREAT RECESSION.
ANOTHER POSITIVE ECONOMIC INDICATOR IS U.S. AUTO
PRODUCTION, WHICH HAS SHOWN CONSISTENT GROWTH
SINCE THE GREAT RECESSION TO ABOUT 15 MILLION
UNITS ANNUALLY.
CLEARLY, FURTHER IMPROVEMENT IN HOME
CONSTRUCTION AND AUTO PRODUCTION WILL INCREASE
JOBS, IMPROVE CONSUMER SPENDING AND INCREASE
DEMAND FOR CONSUMER PRODUCTS AND THEIR
PACKAGING.
8
9. (SLIDE 5 – MEGA TRENDS IMPACTING FUTURE GROWTH)
BUT THAT’S 2013. LET’S TALK ABOUT 2020.
RECENTLY, WE ASKED BAIN CONSULTING TO CONDUCT A
DETAILED ASSESSMENT OF THE GLOBAL ECONOMY AND
WHAT IMPACT CERTAIN TRENDS WOULD HAVE ON OUR
BUSINESS THROUGH THE CURRENT DECADE.
AS PART OF THIS WORK, THEY UNCOVERED EIGHT
“MEGATRENDS” THEY BELIEVE WILL ADD $27 TRILLION
DOLLARS TO GLOBAL GDP BY 2020.
FOUR OF THESE MEGATRENDS DIRECTLY AFFECT
SONOCO AND WE HAVE WORKED VERY HARD TO ALIGN
OUR LONG-TERM STRATEGY TO TAKE ADVANTAGE OF
THESE TRENDS.
9
10. (SLIDE 6 – MEGA TRENDS IMPACTING FUTURE GROWTH –
FOCUSED FOUR)
THE FOUR RELEVANT MEGATRENDS ARE EXPECTED TO
IMPACT GLOBAL GDP BY AN ESTIMATED $22 TRILLION BY
2020. THEY INCLUDE:
• THE NEXT BILLION CONSUMERS – THIS IS A $10
TRILLION MEGATREND THAT SHOWS HOW THE
RISING WEALTH OF EMERGING ECONOMIES WILL
LIKELY INCREASE THE DEMAND FOR CONSUMER
PRODUCTS (AND THUS PACKAGING).
• GROWING OUTPUT OF PRIMARY INPUTS – CLEARLY,
AN INCREASE IN GLOBAL CONSUMER DEMAND WILL
FUEL AN INCREASE IN DEMAND FOR COMMODITIES,
RANGING FROM ENERGY TO BASIC RAW MATERIALS.
AS A RESULT, THE COMMODITY COST VOLATILITY
WE’VE SEEN IN RECENT YEARS IS LIKELY TO
CONTINUE.
10
11. • KEEPING THE WEALTHY HEALTHY – THIS IS A $4
TRILLION-DOLLAR MEGATREND PRIMARILY
IMPACTING DEVELOPED ECONOMIES AS THEY
ADJUST TO THE DEMANDS OF AN AGING
POPULATION.
• FINALLY, EVERYTHING THE SAME BUT NICER – THIS
$5 TRILLION-DOLLAR MEGATREND IS ALSO FOCUSED
ON DEVELOPED ECONOMIES AS MORE AFFLUENT
CONSUMERS DRIVE PREMIUM PRODUCTS AND
SERVICES.
IN THE NEXT PART OF OUR ASSESSMENT, WE SOUGHT TO
UNDERSTAND WHAT LEVEL OF IMPACT (EITHER POSITIVE
OR NEGATIVE) THESE FOUR MEGATRENDS WOULD HAVE
ON OUR BUSINESSES.
WE BELIEVE THAT EMERGING ECONOMIES CAN DRIVE
POSITIVE GROWTH FOR MANY OF OUR BUSINESSES,
INCLUDING OUR MORE MATURE INDUSTRIAL-FOCUSED
BUSINESSES.
11
12. HOWEVER, EACH OF OUR BUSINESSES COULD BE
NEGATIVELY IMPACTED BY COMMODITY COST
VOLATILITY DUE TO INCREASED GLOBAL CONSUMER
DEMAND.
IN ADDITION, OUR ASSESSMENT INDICATES WE SHOULD
HAVE GROWTH OPPORTUNITIES IN DEVELOPED
COUNTRIES CATERING TO THE NEEDS OF AN AGING,
MORE AFFLUENT CONSUMER.
OVERALL, WE ARE BULLISH.
THE NEXT BILLION CONSUMERS REPRESENT ONE OF
“THE BIGGEST GROWTH OPPORTUNITIES IN THE HISTORY
OF CAPITALISM.”
AND HEALTH AND LIFESTYLE TRENDS PROVIDE A $9
TRILLION OPPORTUNITY IN ADVANCED ECONOMIES.
THAT IS A LOT OF GROWTH POTENTIAL.
12
13. (SLIDE 7 – TRANSFORMING ECONOMY REQUIRES A
DIFFERENT APPROACH)
ONE CLEAR TREND IS A MOVE FROM A SUPPLY-BASED
ECONOMY TO A DEMAND-BASED ECONOMY.
CUSTOMERS ARE TENDING TO ORDER BASED SOLEY ON
KNOWN DEMAND AND WE BELIEVE THIS TREND WILL
CONTINUE.
THIS DEMAND DRIVEN ECONOMY REQUIRES THAT WE
TAKE A DIFFERENT APPROACH. WE CAN NO LONGER
WAIT FOR OUR CUSTOMERS TO PLACE THE NEXT ORDER.
WE MUST PROACTIVELY DEVELOP SOLUTIONS AND
TARGETED INNOVATIONS THAT ANTICIPATE CUSTOMER
NEEDS.
SAID ANOTHER WAY, IF YOU HAVE TO ASK YOUR
CUSTOMER WHAT THEY WANT, IT IS PROBABLY TOO
LATE AS THEY HAVE ALREADY TOLD YOUR
COMPETITORS AS WELL.
13
14. (SLIDE 8 – TRANSFORMING PACKAGING REALITY)
THE GLOBAL PACKAGING MARKET IS EXPECTED TO
GROW AT A COMPOUND RATE OF JUST OVER 3 PERCENT.
HOWEVER, AS THIS CHART SHOWS, FLEXIBLE
PACKAGING IS EXPECTED TO GROW AT 3.5 PERCENT AND
RIGID PLASTIC PACKAGING WILL GROW AT 5.6 PERCENT
ANNUALLY.
BASED ON THESE TRENDS, SONOCO HAS BEEN
FOLLOWING A STRATEGY OF PROVIDING OUR CONSUMER
CUSTOMERS WITH MULTI-STRUCTURAL PACKAGING
CHOICES BASED ON THEIR NEEDS – WHETHER IT IS A
COMPOSITE CAN, A FLEXIBLE PACKAGE OR A RIGID
PLASTIC CONTAINER.
14
15. (SLIDE 9 – GROWTH IN PACKAGING DRIVEN BY EMERGING
MARKETS)
ONE OF THE LARGEST DRIVERS OF NEW CONSUMER
PRODUCTS WILL COME FROM THE ESTIMATED ONE
BILLION NEW CONSUMERS THAT WILL ARRIVE OVER THE
NEXT DECADE, ESPECIALLY IN EMERGING MARKETS
SUCH AS ASIA AND SOUTH AMERICA.
15
16. (SLIDE 10 – A NEW MIDDLE CLASS VISUAL)
THE NEW MIDDLE CLASS GROWING IN EMERGING
MARKETS WILL CONTRIBUTE $10 TRILLION IN GROWTH BY
2020.
(SLIDE 11 – MAP)
THEY LIVE IN A DOZEN EMERGING MARKET COUNTRIES;
NOT JUST IN THE SO CALLED BRIC NATIONS.
(SLIDE 12 – PACKED STREET SLIDE)
AND WESTERN MULTINATIONALS EXPECT 70% OF FUTURE
GROWTH TO COME FROM THESE EMERGING ECONOMIES.
16
17. (SLIDE 13 – CHANGING OUR MARKETING FOCUS)
SO WHAT DOES ALL OF THIS MEAN? HOW DO THESE
MEGA TRENDS IMPACT US?
ONE OF THE BIGGEST CHANGES WE HAVE MADE IS IN
THE AREA OF MARKETING “INSIGHTS”.
AS I MENTIONED EARLIER, IF WE HAVE TO ASK OUR
CUSTOMERS WHAT THEY WANT, IT IS PROBABLY TOO
LATE.
OVER THE PAST FEW YEARS, WE HAVE DEVELOPED A
PROPRIETARY SUITE OF CONSUMER RESEARCH
CAPABILITIES TO DRIVE NEW PRODUCT DEVELOPMENT.
FOR INSTANCE, BY USING RAPID CONSUMER FEEDBACK
WE CAN TELL OUR CUSTOMERS WHAT CONSUMERS ARE
SAYING ABOUT THEIR PRODUCT PACKAGING AND
SPECIFICALLY ABOUT THEIR PREFERENCES.
17
18. (SLIDE 14 – PEPPERIDGE FARM CASE STUDY INTRO SLIDE)
A KEY SUCCESS OF THIS STRATEGY CAN BE SEEN IN OUR
INSIGHTS-DRIVEN APPROACH TO PEPPERIDGE FARM’S
NATURALS-BAKED CHIPS.
(SLIDE 15 – IN THE BEGINNING)
MOST OF US ARE FAMILIAR WITH THIS TYPE OF PACKAGE.
THIS IS A TYPICAL QUAD-SEAL BAG THAT MOST PEOPLE
SEE ON THEIR GROCERY SHELF.
18
19. YOU WOULD PURCHASE THESE, GO HOME, OPEN THEM,
AND THEN, IF YOU ARE LIKE MOST FAMILIES, YOU WOULD
USE A DEVICE OR METHOD TO RECLOSE THEM, LIKE
THESE.
(SLIDE 20 – INTO BAG)
OR -- EVERY CPG’S NIGHTMARE. A COMPLETE LOSS OF
ON-SHELF IDENTITY
19
20. (SLIDE 21 – BAG EVOLUTION/SEALTAB)
• THIS STORY DID NOT START WITH DEVELOPING A
PRODUCT FOR PEPPERIDGE FARM.
• WE CONDUCTED ETHNOGRAPHY AND INSIGHT
GROUP STUDIES ON EXISTING COFFEE FLEXIBLE TIN-
TIE PACKAGING VS. A NEW PACKAGE WITH A
RECLOSABLE FEATURE.
• OUR RESEARCH FOUND THAT ONLY ONE-THIRD OF
STUDY PARTICIPANTS KEPT COFFEE IN THE
ORIGINAL TIN-TIE PACKAGE, WHILE 50 PERCENT
EMPTIED THE PACKAGE AND STORED THE COFFEE IN
AIR-TIGHT RIGID CONTAINERS. (LIKE A COMPOSITE
CAN)
• AS A RESULT, CONSUMERS SAID THE RECLOSE
FEATURE WAS NOT THAT IMPORTANT TO THEM.
20
21. • WE TOOK THE RECLOSE FEATURE TO PEPPERIDGE
FARM AND CONDUCTED MORE CONSUMER
RESEARCH. THE RESEARCH SHOWED THAT
CONSUMERS “VALUED” THE PACKAGE WITH THE
RECLOSE FEATURE.
• WORKING WITH PEPPERIDGE FARM, WE CAME UP
WITH THIS RECLOSABLE BAG, THE FIRST EVER USING
OUR PATENTED SEALTAB TECHNOLOGY FOR THEIR
NATURAL’S CRACKER CHIPS.
• WITH THE SEALTAB FEATURE, CONSUMERS CAN
OPEN THE BAG AS NORMAL, BUT RECLOSE IT WHEN
THEY FINISH SNACKING THROUGH MULTIPLE USES.
• NO MORE DUCK TAPE OR DUMPING THE PRODUCT
INTO AN UNBRANDED PLASTIC BAG AS SHOWN
EARLIER.
21
22. THIS INNOVATION SOLVED THREE ISSUES:
• 1) IT PROVIDED CONSUMERS WITH WHAT THEY
WANTED – A RECLOSABLE PACKAGE THAT WOULD
KEEP CHIPS FRESH.
• 2) IT SUPPORTED PEPPERIDGE FARM’S DESIRE TO
KEEP THEIR BRAND IN FRONT OF THE CONSUMER
LONGER,
• AND IT 3) REQUIRED NO ADDITIONAL CAPITAL
INVESTMENT FOR THE CUSTOMER.
THE PRODUCT WAS LAUNCHED IN SEPTEMBER OF 2012
AND WAS A TOP INNOVATION AT PACK EXPO
INTERNATIONAL.
THE SEALTAB RECLOSE FEATURE WILL BE USED IN
OTHER SNACK PRODUCTS VERY SOON AND WE’VE
RECEIVED ADDITIONAL SKUS FROM PEPPERIDGE
FARM.
22
23. (SLIDE 22 – WIN/WIN SOLUTION)
THIS SUCCESS STORY MARRIES CONSUMER NEEDS WITH
PACKAGING KNOWLEDGE AND MANUFACTURING
CAPABILITIES.
WE WERE ABLE TO DELIVER PACKAGING BENEFITS THAT
CONSUMERS VALUE WITHOUT OUR CUSTOMER HAVING
TO INVEST SIGNIFICANT CAPITAL.
THIS PACKAGE IS INNOVATIVE AND FORWARD-THINKING.
IT DIFFERENTIATED OUR CUSTOMERS’ PRODUCTS AND
SATISFIED THEIR CONSUMERS.
23
24. (SLIDE 23 – LEGO SOLUTION)
LET ME GIVE YOU ONE LAST EXAMPLE OF USING
INSIGHTS -- AND OUR MULTI-STRUCTURAL CAPABILITY --
TO MEET THE CUSTOMER’S NEEDS BY DELIVERING A
TOTAL SOLUTION.
THIS EXAMPLE INVOLVES LEGO.
SONOCO WAS FIRST ASKED TO PROVIDE PACKAGING
FULFILLMENT SERVICES FOR LEGO’S PRODUCTS IN
EUROPE AND THEN IN NORTH AMERICA.
BUT THE MORE WE GOT TO KNOW LEGO’S BUSINESS AND
CHALLENGES, THE MORE WE INDENTIFIED
OPPORTUNITIES TO IMPROVE THEIR PRODUCTS’
APPEARANCE ON STORE SHELVES.
WE SUGGESTED A NEW PACKAGE IN THE FORM OF A
COLORFUL, RECLOSABLE, STAND-UP POUCH VS. THE
TRADITIONAL CHIPBOARD BOX.
24
25. YOUNG CHILDREN TODAY ARE VERY FAMILIAR WITH
FLEXIBLE POUCHES AND OUR RESEARCH CONFIRMED
THIS.
ONLY SONOCO COULD DELIVER EVERY ASPECT OF THE
NEW PACKAGE, FROM DESIGN, TO ARTWORK
MANAGEMENT, TO COLOR SEPARATIONS AND CYLINDER
ENGRAVING, TO PRECISION PRINTING AND FINALLY
PACKAGING FULFILLMENT.
AS A RESULT, OUR TOTAL SOLUTION WON THE “BEST OF
THE BEST” GOLDEN CYLINDER AWARD FROM THE
GRAVURE ASSOCIATION OF AMERICA. BUT MORE
IMPORTANTLY, IT SATISFIED OUT CUSTOMER AND DROVE
ADDITIONAL LEGO SALES.
25
26. (SLIDE 24 – SATISFY THE CUSTOMER)
THE STARBUCKS COFFEE, PEPPERIDGE FARM AND LEGO
CASE STUDIES ARE JUST A FEW EXAMPLES OF OUR
STRATEGY TO USE INSIGHTS AND MULTI-STRUCTURAL
PACKAGING OPTIONS TO SATISFY OUR CUSTOMERS.
WHAT WE HAVE LEARNED IS ENCAPSULATED IN THIS
LOGO. IT SYMBOLIZES THE KEY ELEMENTS OF OUR
MISSION AND STRATEGIC FOCUS.
THIS LOGO TAKES OUR STRATEGIC FOCUS AREAS AND
SURROUNDS THEM WITH OUR NUMBER ONE PRIORITY –
“SATISFY THE CUSTOMER.”
IN OUR MISSION STATEMENT WE USE THE WORDS:
• INNOVATIVE – MEANING WE LEVERAGE TECHNOLOGY
TO CREATE MARKET-FOCUSED SOLUTIONS;
• VALUE-CREATING – MEANING WE WILL BE THE BEST
COST PRODUCER GIVEN THE CUSTOMER BENEFIT
DESIRED;
26
27. • AND SOLUTIONS – MEANING A MULTI-PRODUCT AND
SERVICE OFFERING THAT DELIVERS THE MOST
COMPLETE VALUE EQUATION
OUR “SATISFY THE CUSTOMER STRATEGY” IS
CUSTOMER-FOCUSED – IT IS CUSTOMER DRIVEN – AND
ULTIMATELY IT WILL BE CUSTOMER JUDGED.
TO TRULY PROVIDE THE LEVEL OF CUSTOMER
SATISFACTION THAT WILL MAKE US BETTER THAN OUR
COMPETITORS, WE MUST DO SOME THINGS DIFFERENTLY.
WE MUST BECOME MORE OUTWARDLY FOCUSED
TOWARD THE CUSTOMER. THIS MEANS WE MUST DO
WHAT THE CUSTOMER WANTS VERSUS WHAT WE THINK
THEY WANT.
WE ARE FOCUSING ON BETTER UNDERSTANDING
CONSUMER BEHAVIORS SO WE CAN CHANGE THE
CONVERSATION WITH OUR CUSTOMERS AND
DEMONSTRATE A BETTER UNDERSTANDING OF THEIR
NEEDS.
27
28. FOCUSING ON CONSUMERS, AND ON END USE MARKETS,
ALLOWS US TO BETTER UNDERSTANDING MARKET
GROWTH, CONSUMER PREFERENCES, CUSTOMER NEEDS
AND GEOGRAPHIC TRENDS.
THE WORLD IS CHANGING AND WE MUST ADAPT OR BE
LEFT BEHIND.
28