Trust, But Validate All Product Packaging Components

December 28, 2010 by Leave a comment

Validating all product packaging material is a critical step to ensure our product launches occur on time and within budget. Imagine, successfully navigating a very long and rigorous new product launch process only to discover, the launch is delayed by several weeks simply because the packaging material, such as a master carton, was not validated.

Something as seemingly simple as the correct sized master carton can have a major impact on meeting launch dates and anticipated profit margins. For example, a carton purchased that is too small for the product leaves us with a few options.

  1. Find an online resource that specializes in, in stock, off the shelf cartons and purchase the closest match to the dimensions and weight restrictions of the product. If necessary buy a larger box than required and fill the void with packing paper, print and apply carton labels, getting the product to market a few days later than planned.
  2. Change the carton drawing with the corrugate supplier, augment the printing and cutting die, and wait another 2 weeks to receive cartons, launching the product at least 2 weeks later than planned.

The first option gets the product to market sooner, but has several extra costs involved, affecting targeted profit margins. The second option can delay the launch by 2 to 4 weeks, depending on supplier lead times and our own product processing times and manufacturing schedules.

With both options, there are extra costs involved, including:

  • the extra cost per carton
  • the cost to return, destroy or inventory the wrong sized carton
  • the cost to augment or produce a new cutting and printing die
  • the cost to order the correct carton
  • the cost to print and apply a carton label
  • the cost to purchase and insert packing paper

To avoid these and other more, intangible costs validate all product packaging material before purchasing and launching new products.

 

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Picking The Right Carton For Product Packaging

November 17, 2010 by Leave a comment

Often in product design, the focus of the design team is on the actual product and its primary packaging.  Although the shipper carton has the important function of making sure the product makes it in perfect condition through the distribution channel, the design of this package can become a rushed afterthought when entering into the launch phase.

Choosing a carton that maximizes your product’s protection without paying extra for an over-specified solution requires that you understand corrugated box construction.  The first place to find out how the carton was designed is to understand the Box Certificate that is printed on most cartons.

 

Bursting Test – This measurement is an indication of the quality of the box.  This number is determined from the Mullen test, which measures the pressure (pounds per square inch) required for the corrugate to rupture.  This measurement is a good indication of how effective the carton will be at maintaining its structural integrity when dropped or loaded with heavy contents that exert pressure on a small area of the carton.  Certification with this test requires the corrugate to be constructed within specific parameters.

Edge Crush Test – This is a new standard that is sometimes used in place of the Bursting Test.  This measurement indicates the stacking strength of the carton by measuring the minimum pounds per linear inch needed to compress the edge of the corrugate board. This method of measurement allows manufacturers to use less expensive, lighter weight board than what is required for a Burst Test certified carton.

Minimum Combined Weight On Facings – This measurement is an indication of the stacking strength of the carton certified with the Burst Test.  This number is the weight the sides of the carton can hold up when a load is applied to the top.  This measurement is generally indicated in pounds per square foot.

Size Limit – This number indicates the maximum carton size allowed for the corrugate board used to construct the box.  This is determined my adding the length, width and height of the carton.

Gross Weight Limit – This value indicates the maximum weight that can be loaded into the carton.  Although this is the specified maximum weight, consideration should be given to the type of product loaded into the box and the mode of transportation to determine what weight should actually be loaded into the carton.  A carton loaded to the weight limit with an irregularly shaped item may not be adequately protected.  Also, a carton at the weight limit may be adequately protected when palletized but prove inadequate when shipped as an individual parcel.

The goal of protective packaging is to get your product through the distribution channel and into the end user’s hands in pristine condition. Understanding the Box Certificate is a great starting point to knowing if your carton will be adequate to achieve this goal, and put you on your way to achieving your larger goal of bringing your product successfully to market.

Box Maker’s Certificate
All About Boxes
Technical Notes On The Use Of Corrugated Paperboard Boxes
Box Manufacturer’s Certificates
Understanding the Box Maker’s Certificate

 

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Meeting Critical New Product Launch Dates

November 10, 2010 by Leave a comment

Bringing a new product to market is a storied journey with many roadblocks along the path from ideation to product launch. As the launch date approaches, more and more resources are invested. Meeting critical launch dates becomes increasingly important in achieving revenue and return on investment objectives.

There are many important factors to consider when planning for critical launch dates. One of those factors includes lead times. Lead times are especially significant when working within complex distribution channels and supply chains.

Lead times are a confusing and difficult issue because the definition of lead time tends to vary from supplier to supplier. The variation in definition stems from whether or not process times and transit times are included within the definition. Within the context of supply chain management, lead time is measured from the point of order initiation to the receipt of the product. However, some suppliers may only include process time.

When planning to achieve critical launch dates it is important to understand important components within lead times including, process time, transit time, receipt time and set up time.

  • Process time is referred to the total time it takes to complete an order.
  • Transit time is the amount of time a product spends traveling from supplier to customer.
  • Receipt time is the amount of time it takes to inspect and enter the product into inventory.
  • Set up time is the amount of time needed to prepare the product for the next process.

Incorporating these elements into the planning process helps us to ask better questions regarding timing, and deepens our understanding of how to enhance planning strategies for product launches.

Lead times play a critical role in meeting launch dates. Understanding the intricacies and interdependencies of each component encompassed within lead times is helpful in bringing products to market in a timely fashion, and meeting ROI objectives.

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Creating New Product Launch Teams and Partnerships

October 28, 2010 by Leave a comment

New product launches require great commitment, coordination and communication among and across a diverse cross section of specialized skills.  Developing teams and partnerships to navigate the complexities inherent in new product launches becomes increasingly important as demand for speed to market increases while resources to facilitate speed decrease.

There are several factors to consider when building collaborative relationships leading to high performing product launch teams.  Some of these characteristics include:

• Trust:  Working with people you can trust creates an open environment where honest dialog regarding product and market needs are expressed.  Communicating in this manner is efficient and facilitates planning, problem solving and systems development.

• Experience:  People experienced in new product launches understand the complexities inherent in new product launches, enabling an anticipatory perspective.  Often, experience and learning from the last launch is incorporated into the next launch avoiding problematic constraints.

• Expertise:  Specific knowledge in areas such as the product, markets, channels, engineering, manufacturing and organizational systems are great resources to have on your team.  Understanding the strengths and weaknesses of specific technical areas is helpful in over coming problems by leveraging strengths and engaging other options where needed.

• Flexibility:  New product launches are dynamic and evolve as new information is learned, presented and incorporated into launch plans.  People who understand the iterative process can remain open-minded and malleable with out being attached to any one plan or one way to approach a problem.  Remaining agile in a new product launch helps keep the launch moving forward in a dynamic environment.

New product launches are demanding. Beginner, practitioner or expert, it is easy to feel engulfed by an impending new product launch. Having great teams and partnerships working in unison makes all the difference.

 

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Integrating Brand Strategy Into Product Packaging

September 24, 2010 by Leave a comment

We understand the importance packaging plays in purchasing decisions. Often the quality of the package is only one of the determining factors in the complex purchasing decision-making process. Perhaps the most important factor, however, is how well brand strategy is communicated and integrated at the point of purchase.

While it may seem difficult to incorporate the intangible aspects of brand strategy into product packaging, the first step in the process is obtaining a thorough understanding of the target market. Like all great, simple solutions, there is more to the story than age, race and gender. We need more information to create a connection with our buyers.

Here are a couple points to consider when integrating brand concepts and strategies into product packaging:

Functionality ~ does the packaging promote the product’s use?

Understanding how the target market uses the product is key. Learning how well the package facilitates the use of the product is helpful in identifying opportunities for improvement and product differentiation. A good example is Duracell’s repackaging efforts for its hearing aid batteries. Knowing their target market struggled to open the package, remove the battery and place it into the hearing aid, the company designed packaging to help their buyers use their product. They made it easy to change hearing aid batteries. Integrating functionality into the package redesign brought increased sales leading to brand loyalty.

Typically, products/brands are created to solve a problem within the market place, integrating functionality into product packaging as part of the solution helps communicate brand strategy.

Personality ~ does the packaging reflect the characteristics of both the brand and persons targeted to purchase?

Understanding the traits, behaviors and emotional characteristics of the target market is another important factor in integrating brand into packaging. Knowing what images, colors, textures and shapes appeal to the market is helpful in creating a connection with consumers. Presenting a consistent message between the product and package helps build confidence and trust in brand personality. A good example of this is when ATK, a company that makes bullets, launched a new bullet for duck hunters. The company integrated images and bright colors, into its package design, reflecting personality attributes of its target market. Integrating personality into packaging helped make this a new product launch a success.

Functionality and personality are important factors to consider when integrating brand strategies into product packaging. The benefits of learning more about target markets, and combining this information into product packaging are compelling. Increased sales, brand awareness, brand loyalty, and increases repeat sales all sound great!

Certainly, there are more criteria to consider than just functionality and personality. To learn more about the products discussed and additional criteria and methods, please see the resources listed below.

Duracell EasyTab
ATK Article
Design Matters // Packaging Book

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The USPS Price Increase and What It Means For Your Business

September 9, 2010 by Leave a comment

By Summer Seidenkranz, President of National Refund & Marketing Services, Inc.

July 6, 2010, the United States Postal Service (USPS) proposed a price increase to the Postal Regulatory Commission (PRC) to change rates effective January 2, 2011. The proposed increase is above the rate of inflation, spurred by the ongoing recession that has rocked the economy, which coupled with their eroding customer base and the flight to electronic alternatives, has left the USPS with a $7 billion projected shortfall for fiscal year 2011.

All businesses should carefully consider the impact of this proposed increase. The highlights as presented by the USPS include a moderate 2-cent increase in single piece First Class mail (4.5%) and introductions of Reply Rides Free and Saturation Mail incentive programs. Doesn’t sound too bad, does it? Dig a little deeper and you’ll find alarming statistics for the business mailer.

If you mail catalogs, the increase is over 5%. Postcards will increase over 7%; periodicals (magazines) face an 8% increase, and Standard Mail parcels face a whopping 23% increase – and a direct mail unsolicited parcel will be assessed an average 14% higher cost than a solicited package with the exact same contents.

What can you do? While eliminating it from your bottom line is not possible, there are several ways to mitigate the increase.

• Work with an experienced fulfillment or mailhouse that can guide you to the best rates. Their technology will provide you with the lowest postage possible.

• When you’re planning a mailing, engage all parties from the beginning. Packaging/mailing optimization works best when applied at the development stage of a project, and understanding shape-based pricing is critical.

• Clean your mailing lists – there’s an additional reason beyond the required NCOA processing to keep your lists current and clean – every duplicate or undeliverable piece mailed is money wasted.

• Drive your customers to your website for additional detail – mail that letter and sell sheet, but don’t include the 12 page report…post it on your website and provide the link in your letter and you’ll save by minimizing the weight of your mailpiece.

• Consolidation of mailings will drive deeper discounts and faster delivery.

The PRC will issue a ruling 90 days from the July 6th date. The increase can be accepted, rejected or modified, but industry experts are preparing for an increase – and so should you.

____

Summer Seidenkranz has over 30 years of experience in the fulfillment and mailing industry, and is the President of National Refund & Marketing Services, Inc. Summer can be contacted at summer@nrmsinc.com.

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Great Product Packaging

August 27, 2010 by Leave a comment

We know it when we see it.  It triggers a curious feeling, an impulse to pick it up, to touch it, and to bring it home with us.  No, it is not a puppy!  It is a great product -packaged with great care – in great packaging materials.  Often, in the buyer’s eyes, the package the product is in, is synonymous with the product. People associate the quality of the product and the experience using the product with the packaging (marketing) the product is in. With packaging playing such an important factor in a product’s image and ultimately sales, here are five elements of packaging that helps to create a connection with the buyer.

Materials
Material choice is an important factor in package quality. Material quality ought to reflect the value of the product being sold.  Material choice may include the gauge of shrink wrap; paper weight of a retail box, the mil thickness of a poly bag  or the flute size best suited for graphics reproduction and stacking strength.  Materials selected needs to endure the distribution channel and the retail environment while accurately reflecting brand attributes.

Product Protection Systems
Packaging needs to protect the product from elements within its manufacturing environment and distribution channel.  A product that is well protected may have many layers in its packaging system, such as a primary package that is sealed, a secondary package to reduce movement and a tertiary package.  A retail package’s tertiary packaging may be the retail box placed on the shelf for purchase. An OEM package’s tertiary packaging may be the distribution box that is stored at the distribution location.  Finally, how the product is unitized, its pallet pattern and pallet protection all contribute to how well the product is protected.

For More Information

Check out this video to learn more
about how to prevent product damage within the supply chain.

Click Here to learn more about how
ASAP can help you with your
damaged product issues.

Processes
Packaging processes need to be complimentary to the product’s manufacturing processes, sequenced correctly and given as much attention as the creation of the product itself.  Packaging processes requiring employees to double and triple handle product are inefficient.  Inefficient process can lead to quality problems, such as missing components.

Ease of use
Ease of use factors for the end user include the ease of opening the package, the layout of the product and its accessories and handling for distributors.

Branding
From a brand prospective, packaging needs to communicate both emotional and rational information about the product.  Colors, font choice, images and logo placement on the package creates an emotional response to the product. Text and other content inform the user of product features and benefits.

As consumers, buyers and end users, we have difficulty differentiating the product from its package.  We tend to believe the image communicated in the packaging is the product we are buying.  With this knowledge, It is important to develop great packaging to promote and protect our great products, make connections with our target market, increase sales and help consumers feel good about their purchase decisions.


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Packaging & Product Developement, Earlier Is Better

July 8, 2010 by Leave a comment

“Waiting for the launch stage to consider packaging is too late”

Your package is the client’s/end user’s first concrete interaction with your product. It is the moment where the cumulative messaging and marketing efforts are judged. It is the first opportunity to create trust.  Is the package in alignment with your prior messaging; does it communicate the virtues extolled in the advertising campaign?

With such an opportunity to earn trust and create a connection with the end user, it makes sense to think about packaging early in the product development process.  While this consideration may not be necessary in the ideation or scoping stages, there is room for package design and development in the business case and development stages.

According to Robert G. Cooper’s book Winning At New Products, the summary of activities within business case stage are:

  • User needs and wants study
  • Competitive analysis
  • Market analysis
  • Detailed technical assessment
  • Concept testing
  • Financial/business analysis
  • Plans of action

Package development, design and process definition has implications in concept testing and financial/business analysis activities taking place within the business case analysis.

Understanding how the package will look and feel and how the end user will interact with the package enables a more robust concept testing opportunity with end users.  The package design is demonstrated as a complete product prototype.

Once the package design is known, the packaging process is developed.  The packaging process has an effect on the financial/business analysis activity.  For example, if the package requires ultrasonic sealing or blister pack, the organization needs to conduct research to understand whether or not the process fits within core competencies and the investment costs of packaging equipment.  This information, along with the processing costs, is incorporated into the business analysis for a more accurate manufacturing cost model.

Integrating packaging strategies earlier in the product development process has advantages from both branding/marketing and cost perspectives, allowing you to build a more accurate business case for your product.

 

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