Business

Successful packaging development is essential to drive the industry forward and enhance brand recognition, but with many different factors pushing – and sometimes restricting – innovation, it isn’t always an easy journey.

Packaging has to fit into a complex marketing mix, with brand owners having to consider advertising and promotional budgets alongside their packaging requirements.

Last autumn, an easyFairs study of new product development specialists and marketers working with major brands found that product innovation is high on the agenda for 2008. The research revealed that 55% of the 248 polled planned to move or extend their brands into new product areas, 64% planned to launch a major new product for an existing market and a third planned a new product for a new market.

The study also revealed that this would have a big impact on packaging, with 53% planning to increase their packaging spend over the next 12 months. According to the report, these increases are because brand owners realise that their ability to innovate with their products relies on being able to harness new packaging technologies.

Enhanced technology
So, good news for the industry, but in reality how well does packaging innovation fit alongside other marketing and promotional needs? The easyFairs Packaging Innovations show should provide some answers.

According to Benson Box (stand 120) sales director David Devenport, packaging innovation needs to be one of the most important factors in the whole marketing mix and is pivotal in bringing new products to market. “Advertising and promotional spend is wasted if a product is poorly presented or inadequately protected. We work alongside our customers on new packaging development projects – it’s a key factor for success,” he says.

Packaging development and its importance in the marketing mix will vary according to the market segment the brand is targeted at and the message it is trying to convey.

“A brand that is price-led is likely to spend more on marketing its products, making the customer aware of its existence, and will use a standard, and therefore cheaper, method of packaging,” says Richard Jackson, communications and operations controller at design agency Fourninety (stand 156). “A high-quality brand will invest in packaging that sets its product apart from the competition, establishing it as a luxury item, and that would complement any marketing of the product.”  

Considering packaging as an afterthought could mean an essential part of a brand’s strategy to increase sales and recognition is being overlooked.

Joined-up marketing
John Kirkby, senior packaging designer at Design Futures – The Packaging Partnership (stands 82 and 83), part of a collaboration project with Sheffield Hallam University, agrees that packaging should form part of a product’s overall marketing plan. “People still see packaging as an add-on,” he explains. “The packaging is the main thing that consumers see and should be developed at the same time as a marketing strategy.”

Design Futures is using the exhibition to showcase its engineering arm, and leading academics will focus on packaging ergonomics and usability. Of particular interest is its focus on inclusive design – highlighting openability issues. Kirkby adds: “We are challenging people to come to the stand to try their strength at opening a range of packs.” There is an important message behind this, as there has been research that shows 50% of women over the age of 40 can’t open some types of pack.  

Involving packaging during the early stages of a marketing strategy is also important to exhibitor Denny Bros (stands 106 and 127). According to sales and marketing director Stephen Jarrold, leaving packaging to the last minute could result in expensive solutions to make a pack fit into an already-decided marketing vision. “We’d like to be able to be involved early on in the process, and we offer a free dummy service so designers and packaging technologists can test the labels. It is in our interest that we are cost efficient.” The company’s range of Fix-a-Form and multi-page labels will be highlighted at the show as an option for promotional campaigns or when trying to cram all the necessary information onto a small pack.

Packaging innovation relies on successful communication between retailer and manufacturer, to achieve a finished product that fits the brief and achieves the best look on-shelf.

Exhibitor Bunnyfoot (stand 74) carries out usability testing, behavioural research and eye-tracking for products. Its virtual packaging test has been designed to help category managers choose a suitable packaging design and test its success using a virtual on-shelf system. Company founder Rob Stevens feels that “owning a piece of the shelf” is really important to catch the eye of the consumer. He says: “Having a distinct colour that consumers can look for is important and it is especially useful if a brand leader is refreshing a design. If you go too far then a consumer won’t be able to find the brand. With packaging design it is the simple and clear designs that work.”

Communication is key
The Alternative Supply Company’s (stand 440) managing director Elaine Hall says the manufacturer plays an intrinsic part in educating the retailer about what innovative packaging is available. “I think innovation has to come from the manufacturer as retailers don’t always have the expertise to know what is feasible – they just need the willingness to listen. We ask our suppliers what they want from us – they know their business and I look to them for advice.”

Hall recently won the Woman in Technology or Innovation award, one of the nine categories in the North East Woman Entrepreneur of the Year Awards 2007. She attributes this triumph to the firm’s reputation for packaging development and work it presented on environmentally friendly packaging.

Hall adds that she is lucky enough to have had a good experience of communicating with brand owners. “We are using innovative methods and people listen to us. We deal with brand owners that are very supportive and want to do better.”

The company will use the show to highlight its range of dairy, ice-cream and convenience food packaging, particularly its Desto cup – a very thin, lightweight thermoformed cup that provides a flat rim for heat sealing as well as a moisture barrier for yoghurts and other dairy products.

However, innovation does come at a cost, whether in terms of time, money or machinery. The easyFairs innovation report revealed that 46% of those polled cite lack of time as the biggest barrier to innovation.
Product design company Smallfry (stand 432) lists Marks & Spencer, Boots the Chemists, Reckitt Benckiser and Unilever among its roster of clients. Marketing and new business manager Chris Forman agrees that time is always a pressure. “We are commercially aware and recognise the importance of urgent turnarounds,” he explains.

“In our experience, the companies that proactively plan ahead for future launches enjoy more success than those that are simply fixing something in time for the coming season. We help clients develop innovation strategies, exploring their competitive position and sector opportunities.”

Working with customers
Smallfry will use the Packaging Innovations exhibition to launch a patented dual chamber dispensing system that enables the consumer to adjust and control the mix of two separate formulations. Having gained the attention of a major global brand, it hopes the development will attract more retailers and manufacturers.

Fourninety’s Jackson says the most significant barrier to producing innovative packaging is money. “Innovation will and does carry on regardless, but the final cost of packaging will ultimately be the biggest bar to use. Clients’ budgetary constraints can dilute innovation.”

He believes this leads to a cyclic process, which starts with the manufacturer trying to develop the same innovation cheaper. The manufacturer and the client both need to move ahead of the competition in order to drive sales.

However, Benson Box’s Devenport feels that time, money and machinery are the drivers of, not barriers to, innovation. “Like our customers we have to scrutinise our processes and systems to ensure cost efficiency and quality. From that comes all kind of ideas for making improvements.

“Inevitably, in a competitive environment, everyone is interested in new and better ways of doing things. New ideas are as much an investment in the future success of our business as money spent on new machinery.”

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ECOPACK: HOW GREEN IS YOUR PACKAGING?
A study by Ecopack host easyFairs revealed that almost 60% of new product developers and marketers are looking to identify packaging innovations that deliver environmental benefits over the next 12 months.

Bpi.films (stand 354) will use Ecopack to show its integr8 range of biopolymer films. Marketing manager Louise Yates says: “Many buyers are aware of the concept of biopolymer films, but they are not sure how such controlled-life products will work with their specific applications.” 

The Waste & Resources Action Programme (Wrap) (stands 275 and 276) has issued an information sheet on biopolymer packaging, as it believes the introduction of these materials creates risks for established recycling operations.

Trak-Rap (stands 312 and 327) will exhibit its eponymous system, which replaces the traditional shrinkwrapped collation pack. The firm’s managing director, Graham Downhill, says: “Transit packaging accounts for over 60% of all waste generated in the packaging supply chain, but it is an area in which there has been the least effort in innovation.”

Offering “alternative natural materials” is Green Planet Carton Converting (stand 333). The firm produces packaging from PLA and potato starch. While the company has had success with its PLA trays in farmers’ markets, managing director and business owner Ken Baldy has been disappointed by the take-up by larger organisations.

A much more established material is paper, in the form of cartonboard and corrugated. Phil Husband, UK packaging development manager at Smurfit Kappa (stand 434), says there has been a shift towards buyers demanding materials that carry either FSC or PEFC accreditation. “There’s not enough FSC forest to meet the market need and so industry targets and timescales will have to be agreed,” he says. Husband believes the corrugated market has been very slow to sell the closed-loop nature of corrugated recycling – a used cardboard box going back to make another box.

One message that Tetra Pak (stands 316 and 325) will focus on at Ecopack is reminding people that its cartons are recyclable. In 2006, Tetra Pak launched a beverage carton recycling scheme in conjunction with local authorities.

At the show, Johnsen & Jorgensen (stand 41) will launch SmartPack, a bag-in-box comprising a lightweight plastic inner bag with a corrugated outer, both of which pack flat when not in use. It is said to be a more cost-effective and environmentally friendly alternative to traditional rigid plastic or metal packaging.

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CONTRACT PACK: FINDING THE PERFECT PARTNER
Outsourcing to contract packers and manufacturers is on the increase in the UK, says Rodney Steel, chief executive of the British Contract Manufacturers and Packers Association (BCMPA) (stand 410/422). This, he feels, is evidenced by the fact that the easyFairs Contract Pack show will be the first of its kind in the UK.

Steve Nicholls, Complete Core Business Solutions (stand 423) managing director, says: “A firm goes into business to make yoghurts, say. Its skills are in making yoghurts, while making and filling packaging is what we do best.

“We had a client that designed a box that required a lot of of tucking and folding,” says Nicholls. Pontypridd based-Complete Core designed an automatically erectable box. “This reduced our assembly time, making it cheaper for the client.”

Geoff Slater, general sales manager of Somerset-based Framptons (stand 424), says the firm can help clients with all aspects of the packing process, providing testing as well as offering product development kitchens.

Another company that aims to offer extra services is Huddersfield based-Grosvenor Chemicals (stand 405). “Everyone says it, but we offer a one-stop shop,” says technical manager Ian Chilton. Working mainly in the agrichemical and household products sectors, Grosvenor can provide formulation as well as manufacturing and packing.

DK Packing and Casemaking (stand 169) commercial director Reg Hughes notes that shrink-wrapping is currently a very buoyant area of the business. A brand may decide to launch a multipack that it wants shrink-wrapped, but doesn’t have the kit. In such cases, it makes sense to hire a contractor.

Lancaster-based Design Plus Packaging (stand 428) is capitalising on demand for new formats. “Sachets have grown hugely since 2000,” says business development director Robin Proud. Their popularity is partly due to growing environmental awareness.

US-based Catalent Pharma Solutions (stand 407) will be showing off its DelPouch, which was awarded ‘Special recognition for skincare innovation 2006-2007’ by Procter & Gamble.  

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PACKTECH: FOCUS ON CODING AND LABELLING
Linerless label systems have been around for a while, but 2008 is tipped to be the year that linerless finally makes its mark.

“It is believed that linerless pressure-sensitive labels, as part of the environment topic, are an important trend for 2008,” says Craig Peachey, managing director of Pago (stand 451), a labelling equipment supplier that is working on a linerless labelling head for launch in April.

Advanced Dynamics (stand 450) is distributing a system developed by Italian firm Irplast, which it says is already being used by some European food marketers. The system uses bio-oriented PP (BOPP) coated with a solvent-free adhesive, which does not stick on contact with itself.

The linerless machine on display on Cobalt IS’s stand (461) is a print-and-apply system for packs, cases and pallets. “Instead of ordering or producing label media to set dimensions on backing paper, the label is a continuous media and is cut to size by the inline equipment,” explains Janet Thorpe, director at Cobalt.
“The big advantage is that the same size reel runs for 2.4 times longer. Also, the backing paper is waste in the normal labelling process.” Linerless labels can also yield cost savings. Thorpe estimates that users who switch from die-cut to linerless media will save 15% to 30% on costs.

However, not everyone shares this enthusiasm. “Linerless is something a lot of people are getting into, but most of our customers are sticking with standard self-adhesive labels,” says David Charlesworth, managing director of Atwell Labellers (stand 266). “The material costs are higher with linerless and a lot of firms are starting to recycle the backs of their labels anyway.”

Rather than focusing on linerless technology, Atwell has been busy developing a washdown label applicator for meat processing environments. The Matrix Express IP65 system, which will be on show, incorporates a fully removable belt.

When laser coders first came on the scene, some pundits predicted that they would supersede inkjet coders in most applications. While laser technology hasn’t exactly dealt a fatal blow to inkjet, it has become a serious challenger in applications such as glass and PET bottling.

An issue with laser is that it involves burning off a layer of ink or substrate, which could potentially damage the product, according to Allen Coding Systems (stand 223). “The best solution to this is to apply a heat-sensitive coating to the packaging during the production process, but this can be expensive,” says the company’s R&D manager, Graham Hogg.