Packaging Driven Innovation An Insider’s View Mandy Ferguson

My Experience Over 25 years in several FMCG food sectors working for four of the largest UK food companies : H J Heinz ; United Biscuits ; Premier Foods & Associated British Foods Started in Market Research, moved into Marketing and then General Management Have had packaging successes & failures !

What I’m going to cover Packaging Innovation Its strategic role & how to progress Implementation considerations Ways in which packaging can add brand value – illustrated with some case histories

Packaging has many roles Can really enhance Brand Value & Differentiation

Packaging Innovation Must be part of your Brand Development and Innovation Strategy Be very clear how it will help you achieve the vision for your brand Must be based on a clear benefit for the consumer – consumers reluctant to pay a premium for aesthetically pleasing packaging alone Usually dealing with existing brand values and current consumers – development needs to take these into consideration

Where should you look for packaging ideas ? Packaging development brief – tightly define the problem or opportunity to be addressed. Routed in consumer insight. -Packaging suppliers -Design agencies -Internal technologists/engineers -Other product categories,UK & Internationally ( store visits/internet/exhibitions )

How to Progress Packaging innovation can be as complex, technically challenging and costly as product innovation – often moreso Follow the same staged development process that is used for product innovation - obtain business buy-in & approval to proceed at key development stages Set up a project team to manage the development through from concept through to post launch evaluation – ensure it has factory/engineering,financial & sales representatives from the start.

How to Progress cont. The project team must construct the development timetable. Allow for extensive production & consumer trials including in home usage tests, as well as usual travel & shelf life tests Set up a product P & L very early on & update regularly with latest information Ensure there is a strong category & trade rationale as well as a consumer & brand rationale Be prepared to pull the plug !

Some examples of the role packaging has played in brand development

Addressing a Product Performance Issue Heinz Tomato Ketchup Launched in 1876 – iconic glass bottle patented in 1882 Product quality – thicker than competitors due to quantity of tomatoes used to make it Product difficult to get out of the bottle – banging the bottle on its bottom became a ritual BUT it was a consumer frustration

Solution : Squeezable Plastic Bottle 1987 TK launched in a unique size of squeezable plastic bottle, after extensive consumer research In appearance, as close to the glass bottle as possible – concerns about diluting brand image A Success !

Solution : Squeezable Plastic Bottle 1987 TK launched in a unique size of squeezable plastic bottle, after extensive consumer research In appearance, as close to the glass bottle as possible – concerns about diluting brand image A Success ! In 2003,significant but simple development – bottle turned upside down !

Is now the Category Norm

Adding Resealability & Portability to Biscuits Rollwraps – traditional economic format. High speed manufacture Poor opening ; not resealable – biscuits decanted into ano container losing branding & product quality Biscuits predominantly eaten in home – opportunity to increase out of home consumption

Biscuits in Tubes Significant technical & cost challenges had to be overcome Had to adapt positioning, post launch in 1999, due to changes in market pricing Have established their role as part of the portfolio & have added category value

Extending Usage, Increasing Frequency & Modernising Brand Image Traditional, value, ambient format. Family dessert usage. Modern, individual snacking usage. More likely to be put in fridge.

Supporting Premium Positioning & Adding Category Value Ryvita Original, Flowrap – 60p per pk ; 0.24p/g Ryvita Sunflower & Oats, Carton - £1.35 per pk; 0.67p/g

Using Format to support stretching a Brand into different usage/consumers Multibag in supermarkets Family/lunchbox usage Single grab bag in garages/convenience Older teen/male on the go eat Intensely flavoured Mini Hula Hoops in foil cube Younger teens on the go eat Mini Hula Hoops in Tubs Sharing usage – entertaining/family nights in/cinema

THANKYOU & GOOD LUCK