1. Micro-business Labelling in Australia Presented by: Michael Trigwell, Taverner Research Date: 08 February 2011 Presented by: Michael Trigwell & Justin Lewis, Taverner Research Date: 17 February 2016 Project reference: 4951

2. Methodology Key objectives Who was surveyed Marketing, promotion & distribution Packaging used Product labelling Design expertise DIY and DIFM feedback Summary & conclusions agenda

3. methodology 1.Phase 1: N=18 depth interviews conducted in July 2015 to inform the development of the questionnaire for Phase 2 2.Phase 2: N=135 online surveys completed N=122 free find from online sources N=13 through promotion on Avery’s Facebook page Data collection between 12 November and 15 December 2015 3.Screening criteria Must own a product based micro-business (Current: N=44) Planning to start a product based micro-business within the next 24 months (Planners: N=91) 4.The results of Phase 1 were mostly confirmed in Phase 2, therefore the findings from Phase 1 can also be read as being indicative of the attitudes and behaviours of Current micro- business owners

4. 1.Identify the key marketing, sales and promotional channels being used by micro-businesses 2.Understand the current packaging and labelling solutions being used by retail style micro-businesses 3.Identify the current challenges/barriers faced by micro- businesses in terms of packaging and labelling 4.Explore the interest and appeal of DIY and DIFM options 5.Determine the characteristics most likely to qualify a micro- business to need/want to utilise the Avery suite of products key objectives

5. Who Was Surveyed?

6. DEMOGRAPHICS & BUSINESS PROFILE Age range Current % Planners % 18-24 years 1615 25-34 years 4346 35-44 years 1620 45-54 years 1614 55-64 years 53 65+ years 51 Gender Current % Planners % Male 2547 Female 7553 Main Reason for Starting/Wanting to Start a Micro-business Supplementary or Main Income Location Business is Based or Planned to be Based

7. SAMPLE SPECIFICATIONS – CURRENT BUSINESS OWNERS Number of employees% Only the respondent 84 2-5 14 6-10 2 More than 10 0 Number of items typically sold per month % 0 2 1-10 39 11-20 16 25-50 20 51+ 23 How long has the business been established % Less than 1 year 25 1-2 years 48 3-5 years 23 6-10 years 5 More than 10 years 0 Mean number of items sold per month 49

8. Marketing, Promotion & Distribution

9. micro-businesses are engaged with online channels

10. SALES CHANNEL USED OR PLANNING TO USE 89% online – current owners – 3.2 channels used per business 81% online – planning to own – 2.4 channels expected to be used

11. PROMOTIONAL CHANNELS USED OR PLANNING TO USE 93% online – current owners – 2.6 channels used per business 75% online – planning to own – 3.6 channels expected to be used

12. PackagingUsed

13. 95 % of current micro- business owners package their own product

14. PACKAGING AND LABELLING: CURRENT MICRO BUSINESSES Number of items typically sold monthly % One to Four 55 Five or More 45

15. Product Labelling

16. 73 % current 89 % planning Look and feel of the packaging and labelling is very important to…

17. WHY LOOK/FEEL OF LABELLING & PACKAGING CONSIDERED VERY IMPORTANT “Because the final product represents your professionalism and quality” “It makes a more professional impression on the buyer” “Professional looks make or break a product” “Brings more sales if the product stands out” “Beautiful packaging helps sell the product” “People buy with their eyes” “People judge products based on looks” “It’s the impression it creates that matters”

18. WHY LOOK/FEEL OF LABELLING & PACKAGING NOT CONSIDERED IMPORTANT “Product efficacy is of primary importance” “My product sells itself before it is packaged… that doesn’t add anything to my customers” “The quality of the products will determine success” “Labels are often passed by, it’s the product that matters” “The item sells regardless of the labelling”

19. LABELLING APPROACHES CONSIDERED Planners more geared towards outsourcing

20. of current micro- business owners use labels or tags 68 %

21. METHODS OF LABELLING USED -7 Current micro-business owners started out using a full DIY solution, however a small proportion have graduated away from this approach. Those who have changed how they label their products (n=7) do so because they now had the financial means or they wanted a more professional or polished look. 29% of those who designed and printed labels themselves when starting their micro- business have changed to outsource the printing of their labels. Unprompted – Current Use -n=5 I make them myself -n=4 Vistaprint -n=2 Officeworks -n=1 Avery from Officeworks

22. of current micro-business owners said they had ever used an Avery solution to label their products 25 %

23. Brand/logo Product name or description Business contact details My labels must have…

24. 150 + Mean number of labels printed per month amongst those who use labels Number of labels printed/ pay to have printed per month % 1-10 30 11-50 23 51-100 17 101+ 27

25. Design Expertise

26. CHALLENGES TO PACKAGING AND LABELLING THE PRODUCT Affordability and professional look and feel are the main challenges faced by micro-business owners and those planning a micro- business.

27. ASSISTANCE WITH LABEL DESIGN Planners are more likely to expect they’ll get assistance with their labelling, while the reality according to those who run micro- businesses is that half of them did it themselves

28. REASONS FOR SEEKING ASSISTANCE WITH LABEL DESIGN Affordability and professional look and feel are the main challenges faced by micro-business owners and those planning a micro- business.

29. DIY & DIFM Appeal

30. INTEREST, APPEAL, ADVANTAGES AND DRAWBACKS IN DIY LABEL SOLUTIONS Interest in DIY Printing Appeal of DIY Printing Drawbacks to Using DIY Labelling Advantages to DIY Labelling

31. INTEREST, APPEAL, ADVANTAGES AND DRAWBACKS IN DIFM OPTION Interest in DIY Design but Paying for Printing Appeal of DIY Design but Paying for Printing Drawbacks to Using DIY Design but Paying for Printing Advantages to DIY Design but Paying for Printing

32. OtherInformation

33. PERCEIVED BARRIERS TO BUSINESS SUCCESS Time, competition and marketing are the biggest barriers current micro-business owners face

34. PERCEIVED SUCCESS OF BUSINESS: CURRENT MICRO-BUSINESSES Despite these challenges, many micro-businesses are reported being successful.

35. FUTURE GOALS OF CURRENT MICRO-BUSINESS OWNERS 9 out of 10 current micro-business have plans and goals to grow their business

36. NETWORKS OF INFLUENCE Current owners are more likely to have relied on their own experience, while those planning a micro-business expect more help from family/friends and others already operating businesses

37. EQUIPMENT OWNED While the majority of current micro-business owners and those planning to start a business have the equipment to DIY label their products, there’s still 1 out of 10 who do not

38. Summary & Conclusions

39. Having a Product to Graduate to Is Important As expected current micro-business owners have indicated either graduating away from a DIY labelling approach, or have indicated that time is something they do not have a lot of. To avoid losing those who adopt a DIY solution, Avery should consider how they can provide a more integrated solution where labels and packaging are integrated. This could be done either by extending into providing pre-labelled packaging for micro-business owners or partnering with those who already provide packaging. A Professional Look Is Important While the DIY approach provides benefits, to appeal to this target market it has to come across as being professional as well. DIY is fine, so long as it doesn’t look DIY. The labelling of products assists in the selling of the product according to most. Planners have Different Expectations The majority of those planning on starting a micro-business had quite different expectations than those who are already running a business. These unrealistic views could either lead to them not starting their business or provide an opportunity for Avery to work with this group to ready them for the future.

40. Presented by: Michael Trigwell, Taverner Research Date: 08 February 2011 Presented by Michael Trigwell & Justin Lewis Taverner Research 17 February 2016 * All image rights owned by Shutterstock