Packaging Innovation: An Assessable Risk
Resolving to adopt a new packaging solution is an adventure for any company, but it does not think that for Nestlé, "If we do it properly, the new packaging can benefit everyone." Implementing Strategic Thinking Here, we must mention three key elements that can assist other companies in implementing this strategic idea as smoothly as Nestlé. Product packaging must enter the company's business strategy plan. Strong leadership is the foundation of everything. Nestlé's packaging department is set up in the headquarters of Switzerland and assumes and leads the research and development and marketing of all packaging products. A sense of innovation called "rapid packaging" is being widely promoted by Nestlé. What is innovation There are many explanations for innovation, but in the end they all translate into generating or improving commercial interests. Therefore, it is very difficult to give a simple and clear definition of innovation. We must clarify what the driving force of innovation is. In general, we can see nine basic factors: consumers, traders, suppliers, producers, supply chain, cost accounting, food safety, quality and environment, each of which must be established in the package is well understood and Balanced based on. A good package should be convenient (easy to open, easy to pour, easy to re-cap and hand-held), expressed in a suitable package (with good structural design, patterns and information easy to read, easy to understand), Provide consumers with a sense of security (with security features, use of consumer-friendly packaging materials and structural designs), suitable consumer package sizes (or stand-alone, or large-scale family packs), and reasonable product prices . These factors can make consumers satisfied with this package. Two success stories For iron canned confectionery and condensed milk, where market share is declining, Nestlé decided to adopt a new packaging concept and packaging line. They fill condensed milk into extrudable plastic bottles with a clean, adjustable valve. in. Despite increasing additional packaging costs and increasing the selling price, an increase of 15% in sales brought more benefits to Nestlé. From this case, it can be shown that consumers are more willing to spend more money to obtain more convenient, clean and modern packaging products. Another similar story takes place in the United States Carnation Coffeemate brand. The previous powdered product was contained in an old glass El bottle, which was then sealed with a metal lid. For liquid products it is placed in an upright carton-style glass container but without any lid opening device. As a result of packaging innovations, rigid plastic containers are used for all products. For powder products, the packaging is lighter, safer, and more convenient. For liquid products, hinged lids make it easier to open lids and lids, and the positive impact of new packaging on consumers is unquestionable. In addition, although the cost of packaging materials has been changed and the price has risen, because glass has become plastic, the weight of the packaging has been reduced, and there are still cost savings. As a result, the sales volume of products has also increased by 5%. Both of these cases have described investments that can generate multiple win-win situations. Consumers win in the manufacturers can provide them with clean, convenient, safe and modern packaging, and emerging packaging changes have also obtained better profits. Since then, Nestlé has become a leader in the packaging innovation and further consolidated its brand image in the hearts of consumers. Source: Sugar and Alcohol News
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Nestle CEO Peter Brabeck once said, “Packaging is a reflection of the product's soul. It not only ensures that product safety reaches the customer, but also has the effect of attracting customers.†This sentence accurately outlines the importance of packaging to consumers. effect. Because 70% of purchases are made by consumers within 3 seconds, it can be seen that packaging does have a big impact on product sales. Nestlé decided to start with the following two aspects: Understanding the needs of consumers: How to satisfy consumers and meet or exceed their expectations is a company must understand. In order to achieve this goal, companies need to express the functionality and added value of products through various packaging. Investment and innovation: Obviously, the optimistic cost plan is to strive to increase the efficiency of the production line and use the best solution in all processes, but in addition to Nestlé, it continues to innovate to achieve the commercial purpose of increasing product profits.
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