Automation Advantage

More of the best of the best

Lorena Baculima — Tue, 24 Nov 2009 00:00:00 GMT

The response to last week’s blog on Fast Company magazine’s world’s 12 coolest packaging designs was so great, I decided to ask another marketing expert her opinion on the choices. Here’s the link again:

http://www.fastcompany.com/pics/12-worlds-coolest-packaging-designs/

I called one of my favorite, hot-ticket marketing people: Chris Klaehn, a partner at Corey McPherson Nash (Corey) in Watertown, Massachusetts (just outside downtown Boston).

Chris has been a grassroots organizer (before there was the Internet), a lobbyist, an English teacher in Slovakia, a pioneer in the online world, and for the past 13 years, a brand strategist helping clients to be brave about who they are and how they project themselves.

She and Corey have been busting out brands such as Nickelodeon, Cartoon Network, Harvard Business School, iRobot, among others. The firm is widely recognized for its strategic insights and thoughtful design into the critical task of brand development and creative expression. In other words, Chris really knows her branding, including packaging, and she has the clients to prove it.

JB: Chris, what’s your favorite packaging design here and why?

CK: My favorite one: Pepe Gimeno's rice containers. It makes the consumer think differently about a bag of rice. There’re all interesting so let me pick a second favorite. Jung von Matt's design for Stop n' Grow. It takes something seemingly mundane and generic and turns it into something fun and smart. It’s clever in its execution and connection to the product. It is interactive and eye catching. I like them both.

JB: What else is out there we should take a look at?

CK: Recently, Corey had the opportunity to help judge the 14th annual MITX Interactive Awards. You can see the list of finalists here. Judging the awards was a great experience. It gave me more insight into how non-designers look at work — and that was refreshing. Your readers should definitely have a look.

JB: Thanks; I always like to showcase the best of the best. And..I always ask my interviewees “what’s your best piece of advice for marketers”…so what do you say, Chris?

CK: Focus group the function, not the overarching design. Be brave and confident about who you are and your brand is. Easier said than done but so very important to do.

Shelf impact with A Hundred Monkeys

Lorena Baculima — Tue, 17 Nov 2009 00:00:00 GMT

I had a chance to talk to one very hot, hip and brand-savvy marketer last week and get his take on a recent article in the magazine, Fast Company, about “the world’s coolest packaging designs.”

http://www.fastcompany.com/pics/12-worlds-coolest-packaging-designs/

Dan Altman is the founder of A Hundred Monkeys (www.ahundredmonkeys.com). His firm offers a number of services including company naming, product naming, brand strategy and brand building. Dan says, “A Hundred Monkeys is a branding company
that comes up with names that are human and provocative.”

Dan has been around, as he says, “since hot dogs cost 15 cents on Coney Island” working with a range of clients from Coca Cola, Nickelodeon, Reebok, Microsoft, Colgate and others far too numerous to mention.

JB: Danny, tell me which of these designs is actually the coolest in your opinion.

DA: I love the tissue boxes as bricks because designer tissues tend to be so precious. The
farther afield you go the cooler the solution and this one is about as far as you can get
from something you rub your nose with.

JB: Tell me about a cool packaging project you’ve worked on.

DA: We did the name for a new drink for dogs — Pooch Punch. We did a test commercial at a supermarket on Staten Island and I found out how you get a dog to knock a six pack off the shelf. You put a piece of salami behind the six pack. Shelf impact!

JB: I can see how that would work. Seriously now, Dan, what’s been your best campaign ever?

DA: My most perfectly executed campaign was overthrowing the student government
at Princeton. All of my other projects have been variants of that.

JB: Dan! I said seriously…..

DA: Ok, ok. We have well thought out and effective ways for structuring projects. We have a highly evolved naming process which has been refined over the past 20 years. So a lot of people are surprised when they find out that we’re pretty big on methodology for naming or really any branding effort.

Also, we find that the competiton is rarely as formidable as the demons in your own backyard. So the best advice we give our clients is to throw out the
research and go with your gut.

JB: I can believe it. Thanks, Dan.

Talking ROI or Talking Pathos?

Lorena Baculima — Wed, 04 Nov 2009 00:00:00 GMT

I was excited to meet the other day with Ethan Becker, co-author of the recently published, Mastering Communication at Work, and a second generation Senior Speech coach with The Speech Improvement Company (TSIC) (http://speechimprovement.com/ethan ) in Boston.

TSIC coaches and trains an array of professionals around the world to be more comfortable and more effective communicators from formal presentations to individual communication. Of course that includes marketers.

JB: Aren't marketing managers already masters of communication?

EB: Well, not so much. When it comes to creative ideas for how to convince the world to pay $600 for a $20 piece of glass and plastic to listen to music, make calls, and check e-mail with, marketing managers are like the wise old wizards who live at the top of the mountain and know the meaning of life. But when it comes to communicating their ideas to raise funding, or when it comes to managing their teams to deadline, it's a whole other thing.

Marketing types have a tendency to be full of what Aristotle calls Pathos. Or in other words, passion. In some cases too much pathos. So when they take their next big idea to the board of directors or the CFO, they get shut down because they are unable to communicate their vision in a manor in which that audience needs. For example, if they are too passionate, their listener will feel they did not think it through. If they are not passionate enough, their listener will feel they are not committed.

JB: When I think about it, this isn’t surprising. What’s the best way to fix this?

EB: The skill, is to match the right level of pathos and make sure the delivery is in sync with the content. So, for example, when talking about passionate parts of the proposal, such as how excited the press will be, you need to sound excited. When talking about ROI and expense control, you need to sound more reserved. This kind of strategic communication ensures that your message will be communicated clearly. This same approach goes to conversations with subordinates. Now, getting those subordinates motivated, and on schedule is a whole other blog posting!

JB: Later, Ethan

Returning to talk of return on investment

Lorena Baculima — Mon, 02 Nov 2009 00:00:00 GMT

While we’d all hoped that the economy would have stabilized by this time, it’s clear that the recession has yet to recede. Still, as 2010 planning is well underway, marketing budgets depleted in 2009 are seeing replenishment for the coming year. But this year, more so than in any year past, proof of return on investment for all marketing programs isn’t just a nice to have, it’s a prerequisite to securing a budget. If you want money to fund your program, you’d better be able to prove it was worth the spend.

I came across the 2009 Marketing ROI and Measurement Study by Lendskold Group – an agency focused on ROI measure – which includes more than 600 responses generated from MarketingProfs 30,000 marketing membership (full report is free for download a http://www.lenskold.com/forms/subscribe.html?a=r). The points that really resonated with me include:

1. The fact that economic pressures increase the need for marketing ROI and measurements. While this might seem fairly obvious, the irony is that no money is being set aside in the budget for such measurement.

2. That firms with marketing operations teams have greater analytic strength. Why this is important is that analytic strength equates to more effective marketing programs and according to survey respondents also gives them a leg up over the competition.

The study then goes on to offer some recommendations for marketers such as:

1. Increasing experimentation and testing. Even though you don’t want to carve off dollars for a test, you’re better off spending a little up front than an entire budget on a program that won’t work (and will never be funded again).

2. Using customer data or market research to compare current buyers from historical buyers. This lets you identify segments and profiles that are less sensitive to economic conditions and will help you determine the new best segments for targeting.

3. Preparing for aggressive competition during the recovery. By measuring your own marketing progress against that of others you’ll get a true sense of whether your program are working. You’re only effective if you’re more effective than your competition.

Good reading all around for anyone that’s interested in ROI. And let’s face it, today, who isn’t?

Rockin’ in the New World

Lorena Baculima — Tue, 27 Oct 2009 00:00:00 GMT

Ira Friedman, a veteran of the consumer electronics industry, founded Bay Audio (www.bayaudio.com) in 1998 to design audiophile loudspeaker systems that looked good when integrated into home decor. I had an opportunity to catch up with Ira and talk shop about the market he knows so well.

JB: Your speakers are so elegant. Who is your target market?

IF: Our end user is a homeowner who wants a home theater experience, and/or music available throughout their home. However, we sell through custom installation companies who engineer the systems, choose the products, install, and service. A good example is http://www.e-home.com. Typically, our end user is part of the “luxury” market. But the majority of our marketing is directed to installers.

JB: What are the most pressing challenges you are currently facing in your marketing efforts?

IF: Having pricing flexibility. We place a high value on aesthetics and performance. As a result, our products are significantly more expensive to produce than the norm. To keep our pricing in line with the market, we’ve developed an internal process that keeps overhead to a minimum. Therefore, we can sell a “better” speaker system for the same price as our competitors. But with steady price erosion, we have limited flexibility. Our challenge is to educate the custom integrator that our products are better.

JB: What is the marketing advice you give custom integrators in the current economic climate?

IF: There’s this weird “common wisdom” I tell them to avoid. That they should keep spending money on marketing when times are tough. I don’t buy it. That’s not to say they shouldn’t continue their marketing efforts. But switch to lower cost, higher impact activities.

Here are some of the ideas I share with them:

1. Now’s not the time to invest in capital improvements. Don’t redo your theater room. Don’t get new trucks. Reduce your print advertising.

2. Spend more time marketing one-on-one to architects, builders and designers. It’s always a good time to build relationships. And it’s cheap.

3. Don’t spend your money on trade shows and non-essential industry events. It’s OK if you don’t show up. Don’t let peer pressure affect your profitability.

JB: Overall what's your one best piece of advice for fellow marketers?

IF: Strong relationships matter. Especially in tough times.

JB: Good advice! Thanks Ira and keep on rockin’.

Taking a pulse on healthcare marketing

Lorena Baculima — Tue, 13 Oct 2009 00:00:00 GMT

According to The New York Times nearly a fifth of the American economy, around $2.5 trillion, is the amount the nation spends each year on health care. No wonder the debate around healthcare is so animated. There’s a lot at stake.

I was fortunate to recently meet Tom Charland, CEO of Merchant Medicine (http://www.merchantmedicine.com/) recently. Merchant Medicine is a consulting firm that works with clients in non-emergent, acute ambulatory care clinics by collecting market data and employing strategic frameworks to assess available market size, competition, growth, and reimbursement trends, all of which helps construct realistic proforma P&L statements. Tom started the firm after serving as SVP of strategy and business development at Minute Clinics, which was eventually acquired by retail pharmacy giant CVS.

Given his expertise in the field, I took the opportunity to ask him about the role of marketing in the healthcare industry.

JB: What is the role/importance of marketing in the healthcare industry? It seems there is a lot of effort focused on attracting consumers. How effective is this do you think?

TC: The apparent focus on consumers seems larger than it is only because that is what is visible. The vast majority of marketing goes on between the big players like government, commercial insurance companies, pharma, health insurers and employers. Fee schedules are negotiated, laws regulating care and influenced, drug therapies approved or not, etc. are all done behind the scenes.

The consumer marketing happens mostly in two areas: non-emergent ambulatory care (walk-in medicine) and retail (prescriptions/health beauty). The behind-the-scenes stuff would be classified under “business development” or “constituent marketing” and is very different than most other industries. The consumer marketing looks a lot more like other industries or classic advertising/marketing/communications.

JB: If you could do one thing to technology enable healthcare marketing...what would it be?

TC: The question assumes healthcare marketing has a “center of the universe.” It doesn’t. It has sub-segments that most of us would consider very different industries. Biotech is healthcare. Retail pharmacy is healthcare. Insurance is healthcare. Hospitals are healthcare. School nurses are healthcare. Large universities are healthcare. All have very different ways of reaching target audiences and all are governed by different laws and regulations. This sometimes manifests itself when otherwise very successful businesspeople in other industries decide they want to “fix” healthcare and end up failing miserably. But that being said, social networks probably have the best opportunity to enable healthcare marketing because these different audiences have different needs. But to say it is the one enabler is going out on a limb at best.

JB: The healthcare debate is obviously an emotional one for the consumers. But the dialog goes beyond emotions. What is so different about healthcare?

TC: It is the only industry in this country where we buy something and find out a month later how much you paid for it and how much you need to shell out of your own pocket.

JB: What's your one piece of best advice to healthcare marketing professionals?

TC: Get to know your sub-segment well, not just the audiences, but how the money flows and what the rules are. Follow the money.

JB: Thanks, Tom. I know this just skims the surface of the topic. I hope to talk with you more in the future.

Don’t ever ask me to do “more with less” again!

Lorena Baculima — Mon, 12 Oct 2009 00:00:00 GMT

If I read one more article that starts off with “In the current economy, marketers have to do more with less…..” I think I will explode.

We marketers been doing more with less for so long….it’s scary! I submit to my fellow marketers… that in fact “more with less” is the new “same old, same old.” “More with less” is our reality and has been for quite a while. Though the current economy is certainly not helping.

In order to help put this phrase to rest I spoke to a couple of top marketers to see if they find it as over-used a phrase as I do. While I was at it… I figured I get some free advice to share with my readers too.

JB: “Are you sick of the phrase “marketers have to do more with less?” Also…. how long have you been doing more with less and how do you do it?”

Susan Roberts, Director of Marketing for a Fortune 500 company: “More with less is my middle name. I was born with it. I am very tired of the phrase and the attempt to limit it to current conditions. The era of tight marketing budgets and strong demand for accountability has been around for a long time and clearly it’s not going away. I measure everything we do. If some effort is not up to snuff; we know it and we weed it out or fix it. Also, for the last few years, I have been using a variety of technology tools to do “more with less.” In the recent past I’ve tech-enabled customer referencing, and, of course demand generation has been automated and highly accountable for ages. Collaboration suites, digital repositories and the like are extremely important, particularly in all the global marketing we do. I find technology enablement invaluable in both my consumer goods and business to business marketing positions.”

Mary Feeley, owner, Feeley & Company, a Boston-based content development agency:

“More with less’ is a tired bromide. In tough times marketing is often the first budget cut. In good times, the demand for marketing support quickly outpaces the budget, yet marketing has always found innovative ways to meet expanding requirements while staying within a limited budget.

Historically, marketing also has been an early adopter of new technologies to achieve greater efficiencies. Webcasts, podcasts, blogs, and social networking sites enable marketers to build relationships with customers and prospects at lower costs. And, we didn’t stop there. Marketers use technology to understand market sizing and customer behavior and preferences. We employ SEO and SEM strategies and emerging re-targeting technologies – all as we rise to the ongoing challenge of moving our companies and brands forward, while we ‘do more with less’.

JB: Thanks, Ladies. I’m glad you agree. I hope my readers do as well. Let’s hear from all of you out there about your experiences doing (sigh) “more with less” in your marketing efforts.

He’s Not Kidding Around

Lorena Baculima — Mon, 28 Sep 2009 00:00:00 GMT

A few weeks ago I spoke with Steve Smith of Brand Equity regarding his experience working with major brand and packaging departments. I was able to catch up this week with another creative type, Richard “Chard” Graumann of Chard Design. Chard has seen all sides of package development, representing food products and consumer package goods. But it’s his experience in the juvenile products market that was the focus of our conversation.

JB: How did you come to work with baby and children’s products?

CG: I was art director at The First Years several years ago until the company was acquired. After that, I went to the competition and worked with Safety 1st for some time. When I went out on my own it was easy to find jobs where relevant experience was required and that opened doors for me at other juvenile products and toy companies. Today, I’m doing a good deal of work with Delta Children’s products, for example.

JB: What’s different about juvenile products packaging than that of other consumer packaged goods?

CG: A few things. First, it’s an industry where the package really needs to speak to the consumer. While this could be said of any CPG, moms – particularly first time moms – are the most discerning consumers. Packaging of products has to be serious yet playful, trustworthy yet carefree. There are a lot of dichotomies at play on the package.

JB: It’s got to be fun designing packages for kids’ products though?

CG: It’s absolutely fun and there’s so much creative liberty. In fact, it’s an industry that’s really testing the boundaries of packaging. Just walk into a Toys R Us and you’ll see multiple layered plastics being used in packaging, for instance. Or, interactive inks that turn colors when a package is held. It’s amazing where the industry is going. At the same time, however, there’s a move by some manufacturers to take packaging in an entirely different direction, back to simplicity. These brands are seeking out simple, clean designs. These, in fact, can grab more attention amidst the sea of wildly colorful and shaped packages on a shelf.

JB: So what sorts of challenges exist for a package designer of juvenile products?

CG: One of the greatest challenges can be with working with licensors. Take a company like Disney, for example. While they have extremely stringent style guides, as a designer, you’re caught between adhering to their specifications, while still trying to maintain the look and feel of your own brand. This just adds another layer of complexity in dealing with internal and external clients.

JB: In the case of working with licensors, do you think the process bogs down more readily?

CG: It certainly can. Again, you’re now in a position of having to please far more people and the approval process alone is an exercise in tedium.

JB: What’s the greatest challenge with approvals overall?

CG: By far it’s dealing with those that step outside of the boundaries of their roles in providing creative commentary. It’s not unusual for the receptionist to offer critical feedback. Weeding through the comments and then determining which need to be address can be a challenging.

JB: Any other areas of unrest you’ve encountered with children’s products?

CG: Many, but another that sticks out as being especially precarious is with regulatory and legal content that’s requiring additional real estate on packages. Warnings, no matter how you deliver them, are never fun. But, toys are. You need to strike a balance in how to visually present the information in a manner that doesn’t detract from the playfulness of a product, but invokes enough attention to be read.

JB: Thanks Chard. Hardly a infantile discussion!

Two Part Harmony

Lorena Baculima — Wed, 23 Sep 2009 00:00:00 GMT

On a recent trip to New England, I stopped by Modernista (www.modernista.com) to visit with their Design Director, Bruce Crocker. Modernista is an advertising and marketing firm with clients like Cadillac autos, the financial giant, TIAA CREF, and Product (Red), the organization started by U2 frontman/singer Bono to help fight the spread of AIDS.

In addition to his 30+ years of designing ad campaigns, annual reports and other corporate branding initiatives, Bruce has also done a lot of packaging projects for clients that include Lotus Development (shrink wrapped software), Boston Acoustics (consumer electronics) and Heart Start (a consumer version of a cardiac defibrillator for Philips Healthcare). Over the course of his varied career, he has long been an advocate of sustainable design; way before it was popular or well understood.

We talked about how process enabled by technology supports his philosophy of sustainable design.

Beyond the obvious need to use sustainable materials and make packaging recyclable, Bruce is a proponent of having packaging serve multiple purposes. He complained about the failure of most packaging to do this. “On a recent trip to Sears to buy a battery charger, I realized that the packaging was not sustainably designed for maximum functionality. Sure the package delivered on providing the information I needed, and it was easy to carry. But when I got home I realized I also needed the packaging to serve as a storage device to keep the charger clean and dry when not in use. Which is most of the time. It didn’t.”

“This is such a failure of creative process. With a small amount of additional engineering, the packaging could have served my needs better and had a much longer shelf life. In short, we need to design for sustainability versus obsolescence which is good for the planet, consumer, and manufacturer!”

He continued: “Designers need to think through the impact of their packaging at the start of the process and then continually re-examine their choices; play with them; and absolutely ensure that their designs support a complete lifecycle from shelf impact to the practical, day to day use, to what it can be recycled into at the end of its useful service. The advantage of technology enablement of this process is huge. I know where all my ideas are documented; I can collaborate around them efficiently; I can so easily tweak and re-use them. I can share them liberally and experiment at low to no cost.”

“I think every package can and should do double duty, from the front-end needs to the back-end realities. But I need all the tools I can get to make that philosophy actually happen. I don’t have time to dig around looking for packaging assets and resources. If that’s what we’re spending time on, the process flow is already compromised.”

Bruce concluded: “I’m a musician at heart. I love two part harmony. No reason not to translate that to my clients’ critical projects and to the benefit of consumers.”

Eating and drinking green

Lorena Baculima — Wed, 02 Sep 2009 00:00:00 GMT

If you google it, you will find the following frequently-cited statistic: 70% of all primary packaging is created for food and beverages.   No surprise then that food and bev companies are in the vanguard of sustainability in packaging.
Recently I caught up with someone who really knows about food and beverage packaging: Barry Boehme.
During his 25+ year career, Barry has held executive marketing positions with category-leading companies including Ocean Spray, HP Hood and Island Oasis, a leading frozen drink mix producer, and is currently in the process of launching a unique business and marketing services company. In fact, he’s been involved in the industry since his college days.   He partially paid his way through college working at a grocery store and also started a cookie company with a couple other students, building it from nothing to a $3 million business in two years.
In addition to his in-depth knowledge of the industry overall, he also knows about green.
His view: “Sustainability and profitability go hand in hand. Consumers want to feel good about the packaging of their food and beverages. They will buy from companies who are sensitive to green throughout the packaging lifecycle - from design all the way through to recycling and re-use. Green is becoming a differentiator for food and beverage companies."
We couldn’t agree more, Barry!   Our food and bev customers find that nothing cuts waste faster than focusing on automating previously manual processes.   Fewer mistakes mean less waste. The ability to try “what-if” scenarios can lead to reductions in the weight of packaging which in turn reduces warehousing, distribution and transportation costs. Then, those reductions correlate directly to savings in energy costs plus a reduction in greenhouse gases.
Every improvement made early in the supply chain trickles down to the bottom line.
But you need the right tools to help you make sustainability profitable. Kodak Design2Launch Solutions offer the kind of automation capability that leads to green by bringing a new level of efficiency and control to content creation and execution for marketers with internal teams within the enterprise and with their external suppliers.
Good process, enabled by technology, is always good. But now it’s good for green too. I think we can all drink to that.

A Pro Talks Packaging

Lorena Baculima — Fri, 21 Aug 2009 15:02:56 GMT

Yesterday I had the pleasure to spend some time speaking with Steve Smith, veteran creative/brand/packaging designer and current creative director of Brand Equity (www.brandequity.com). Brand Equity is a visual marketing and brand communications firm founded in the ‘60s that boasts a pretty impressive clientele – from early-stage entrepreneurs to Fortune 500 corporations – including Eastman Kodak Company (our parent company), Levi-Strauss & Co., Nantucket Nectars, and The Pastene Companies, to name a few.

JB: I know you worked with Kodak’s one-time competitor, Polaroid, as director of graphic branding. What was that like?

SS: Back in the day, before the company’s downward demise, there was no better place to work on earth. We had the team, the budget, the talent to do it right. We could hire any expert we needed at any time without any question.

JB: With so many resources at your fingertips, was your job easy?

SS: We had a huge team of editors, technical writers, designers, freelancers, etc., as well as a vast production team dedicated to simply shepherding projects through. Getting projects completed was never easy, but we got it done. The hardest part was coordinating with global marketing departments. They sometimes seemed to be working off of a different sheet of music.

JB: How were you able keep such a team in concert?

SS: In order to get it all done and get everyone on the same page, we had some simple guidelines that we put in place. The process was so complicated that we tried to simplify the rules. Not rocket science, but we put together a style guideline that detailed things like the exact color blue that was to be used, and the appropriate location of the logo. It worked somewhat and we were starting to see some fruit before business went sour.

JB: In retrospect, do you think the process was the most effective and efficient?

SS: Process is a really interesting thing. It can be particularly difficult in big companies where it’s not so easy to get people together. And, it must come from the top or it doesn’t work well at all. While we likely didn’t have the most advanced tools in place, I still think simplicity was the key to our initial success with our process. Really, once you establish a look and a brand tone all you need to do is make sure you manage it appropriately. Apple is a company that’s doing a great job of keeping it simple.

JB: What if you had an automated workflow process, would that have helped?

SS: We likely would have needed fewer resources in production, and might have been able to bring on more folks designated to innovation. In the end, the problem was we never could find a product beyond film that the public wanted.

JB: What’s the greatest difference working agency-side vs. in-house?

SS: On the upside, we creative types get to really exercise our talents by working on a vast variety of products and services. Every day is different.

JB: And the greatest challenge?

SS: Definitely the loss of control that we experience once our files leave our office to land on the desk of the client. Also, adapting to the various packaging and design processes that each of our clients employ. Some are far more sophisticated than others.

JB: Sounds like we should talk about D2L! Thanks for your time and your insights, Steve.

HIGH AND LOW, THE NEW PRIVATE LABEL

Jennifer Bergin — Fri, 14 Aug 2009 00:00:00 GMT

Consumer confidence is at an all-time low but…. that situation is driving private label to an all-time high.

The tightening of buyers’ belts has sent them seeking value in lieu of name brands. We’re learning that while this trend presents an opportunity for retailers, it also comes at a cost. Major players are investing more and more in their private label brands to counter competition from discount, mass merchantand club stores. And, while these value products might reduce shoppers’ grocery bills, they can also reduce the retailers’ top-line revenue.

Still, as the economy continues to muddle along, retailers have little choice but to play the game. But it appears as if the rules have changed. Private labels have been evolving into signature labels for decades. But the speed and urgency of delivering more premier signature brands has never been so great (think of all the organic offerings for example). The private label consumer is now the value-conscious consumer, and not of his own choice. For new buyers coming into the private label fray,frugality is not necessarily a preference but a necessity. Bottom line – shopper psychology is dictating that private label offerings be positioned as top-shelf. Otherwise, shoppers will go the discount/massmerchant/club store way to get the brands they want for less.

So retailers are scrambling to gain more private label market share. But, with any rush to the finish, mistakes are many. In the recent “when times were good” past, industry experts estimated that 68% of recalls were due to incorrect or mislabeled packaging rather than the product itself. I can’t image that the percentage hasn’t grown some. For those private labelers that are looking for some insight on how automation can help, we’ve got some useful whitepapers on the site: http://www.automation.kodak.com/Resources/ArtworkAndLabeling.aspx

A Time for Change, Mending the Marketing Model

Jennifer Bergin — Mon, 10 Aug 2009 00:00:00 GMT

I had an opportunity to speak with Hunter Hastings today. Hunter is the Chairman of the EMMGroup (www.emmgroup.net). His firm consults with consumer packaged goods, technology and pharmaceutical companies like P&G, Microsoft and Ely Lilly, about how to grow their businesses organically.

JB: Hunter, what are the biggest challenges the corporate marketing function faces today?

HH: There are significant challenges. In our work we see that the old marketing model is broken and the new model is not clear to companies yet.

The old corporate marketing function is centralized and controls the strategy, the knowledge, the design, the brand. But the use of that knowledge and those assets has to be executed at a distance and in many places – at the retailer, at the worldwide web, with many design firms and agencies, in packaging and across many other forms.

The old marketing organization is based on a “hub and spoke” structure. The brand group at the center owns all the knowledge assets and is inefficient at sharing them at the right place, time, with the right people. It’s messy and inconsistent.

JB: Any hints about what the new model will resemble? Is anyone out there doing it right?

HH: Yes, the new model requires organizing around process and technology instead of organizing around functional silos. In the new model, people collaborate around process with technology helping them out. It’s a network analogy instead of the hub and spoke. There are no Kings or Queens in the new model; the structure is about teams and meeting deadlines. There is no hierarchy to blockade collaboration; no silos.

We see Google doing this very effectively. Using technology like Googledocs to stay organized around teams, projects and deadlines in a highly collaborative and efficient environment.

We also see CPG clients like P&G who have gotten very good at creating solid processes and are now moving toward enabling collaboration with technology.

The analogy we like to use is organizing like a network. There’s no center and no one is in charge. Knowledge flows around the network based on where it’s needed and who is going to use it.

JB: How has the renaissance in packaging we’ve seen over the last ten years with improvements like single serving, portability of consumer products, more ergonomic packaging, etc., affected the corporate marketing function?

HH: Over the past ten years, CPG clients have discovered the power of design. For example, tests showed them that if they changed packaging color from yellow to blue, consumers said “this product is milder than that other product and it meets my needs better.”

Design is a creative process. It requires continuous refreshment. And, it may have to be adjusted for different target audience segments or in different countries. The complexity and supply chain for these new designs puts even greater burden on the marketing function to collaborate.

3D design (surface design, structural design and user experience design), for packaging is more important than ever. It’s migrating from the brand companies to the retailers own brands and to private label. The renaissance is continuing in areas like paper goods, canned goods, fresh meats and produce. The need for collaboration continues to grow.

You need process, software and a flexible networked structure that organizes itself around collaboration.

JB: Thanks, Hunter. What’s your best advice to marketing and packaging clients given all this?

HH: It’s all about the organizational structure. Change it.

Where Companies are spending on Sales & Marketing technology in 2009

Jennifer Bergin — Wed, 01 Jul 2009 15:00:00 GMT

There is a new study out in the Consumer Goods Technology June issue that looks at where companies are focusing their technology investments for marketing and packaging this year. The study is authored by Lore Cecere, VP, Cosumer Products, AMR Research.

As we enter into the 15^th month of the recession, the shopper has changed, and sales and marketing tactics are attempting to keep pace. Despite margin pressure, spending on sales and marketing technology is increasing.

CGSM_0609_LowRes.pdf

Drugmakers Warm Up To Marketing With Social Media

Jennifer Bergin — Fri, 19 Jun 2009 12:12:45 GMT

I read a great article in The Washington Post about how pharmaceutical marketers are starting to use social media. Since so many of our followers are in the pharma space, I thought I would pass it on. Enjoy, and have a great weekend!

An increasing number of drugmakers are using Facebook, YouTube, Twitter and other social media to promote products amid the absence of Food and Drug Administration regulations on marketing drugs on the Internet. An FDA spokeswoman said the agency continues to monitor drug ads that use online tools to ensure they comply with laws, adding the FDA doesn't "restrict the channels that prescription-drug companies choose to use for disseminating product promotional messages." Read the full story

Here.