Innovations in Packaging and Product Development
Introduction to Research and Development (R&D) in Packaging
R&D Definition: R&D stands for Research and Development.
Focus of Discussion: Innovations in packaging and packaged products.
Key Driver of Innovation: Convenience for consumers.
Role of Marketing in Product Development
Departmental Influence: The marketing department drives innovation in product development.
Process Flow:
Marketing defines a need.
Communicates that need to R&D.
R&D then develops the product or packaging addressing the identified need.
Product Life Cycle Phases
Definition of Product Life Cycle: A sequence of stages a new product goes through from introduction to decline.
Phases of the Product Life Cycle:
Development Phase: Time taken for the product to come to market.
Introduction Phase: Build product awareness and develop market: includes product branding, pricing, distribution, and promotion.
Growth Phase: Aim to build brand preference and increase market share; maintain product quality; introduce additional features.
Maturity Phase: Sales growth diminishes; focus on defending market share while maximizing profit; differentiate features from competition; intensive distribution.
Decline Phase: Options include:
a. Maintain product through rejuvenation (adding new features).
b. Harvest the product (reduce costs, focus on niche market).
c. Discontinue the product (liquidate inventory or sell to another firm).
Impact of Product Life Cycle on Marketing Strategy
Effect on Marketing Situation: The product life cycle can dramatically influence marketing strategies and the marketing mix.
Marketing Mix Components: Product, price, place (distribution), promotion strategies evolve as the product moves through its life cycle phases.
Innovation in Packaging
Definition of Innovation: Introducing new concepts or designs to enhance effectiveness.
**Goals of Innovation:
Increase resource efficiency
Eliminate waste production
Reduce environmental impact through improved design and alternative materials.
Link to Sales: Innovation in packaging can boost sales during the mature and decline phases of the product life cycle.
Key Considerations for Packaging Innovation
Package Use: How will consumers use the package?
Protection Requirements: What level of protection is necessary for the product?
Reuse and Redesign Possibilities: Can the package be reused or redesigned easily?
Appropriate Materials: Which materials should be used in the package design?
Consumer Requirements: What do consumers want in terms of flavor, color, nutritional content, size, and convenience?
Legal Compliance: What laws and regulations apply to packaging?
Marketing Influence on Packaging Design
Differentiation and Loyalty: Marketing significantly influences packaging innovations to differentiate brands, justify prices, and increase customer loyalty.
Importance of Ownable Packaging: Unique shapes, materials, and dispensing systems are critical for innovative design.
Structural Packaging Innovation: A primary driver in revitalizing brands and product categories.
Case Study: Children's Yogurt
Product Example:
Name: Go-Gurt, a yogurt product for kids.
Innovation: Ownable packaging differentiation through a squeezable tube for easy consumption on the go.
Observation and Ethnographic Research in Packaging Redesign
Method: Observing shoppers in real environments can inform package interaction.
Storage Correlation: Where consumers store products affects usage frequency (e.g., fridge packs for soft drinks).
Design Impact Example: The redesign of the fridge pack for soft drinks increased sales significantly.
Influencing Shoppers Through Packaging
Influence Levels of Packaging: Packages can influence shopper behavior and decisions on three levels:
Shelf Impact: Increased visibility on shelves enhances product appeal.
Product Perception: Improved imagery and perception of quality before use.
Functionality Satisfaction: User satisfaction after utilizing the product.
Current Drivers of Packaging Innovation
Convenience: Primary consumer demand (includes resealable packages and child-resistant designs).
Food Safety Assurance: Innovations that ensure the safety of food products.
Sustainability: Growing focus on reducing environmental impact in packaging designs.
Examples of Packaging Innovations
Tetra Pak's Aseptic Stand-Up Pouch: Designed for portable children's drinks (e.g., Capri Sun) ensuring safety without preservatives.
Labatt's Blue Beer Can: Wrapped in an insulating layer to maintain chill and comfort for consumers.
Sherwin Williams Ready to Roll: Combines paint container with a roller tray, reducing spills, mess, and time.
Nabisco's Snack and Seal: Features a resealable system ensuring freshness and ease of access.
Food Safety Innovations
Color Changing Films: Disposables, such as coffee lids that change colors to indicate temperature.
Active Packaging Types:
Ingredient Release Systems: Including antimicrobial agents and antioxidants.
Controlled Atmosphere: Packaging that maintains product freshness through modified atmospheres.
Scavenging Systems: Incorporating oxygen absorbers or moisture control.
Edible Films: Explore reducing fats and preventing microbial growth.
Sustainable Packaging Innovations
Kraft's Salad Dressing Bottle: Redesign led to a 19% weight reduction, improving transport efficiency.
Compostable Cereal Packaging: Flexible and made from renewable materials.
New Lipstick Design: Single material use for easier recycling and use of renewable polymer.
UniPak Eco Container: Made from 100% recyclable materials; reduces carbon dioxide footprint by 20%.
Conclusion
Summary of Key Focus Areas: The innovation in packaging discussed today involves understanding product life cycles, marketing influences, consumer needs, sustainability, and examples from various industries that show how packaging can drive product success.