Bassin, Susan B.

English

Research Papers in Economics

Packaging: A Key Element in Added Value
by
Susan B. Bassin
Principal, King-Casey, Inc.
New Canaan, CT
It certainly is a pleasure to be with you
today here in historic Williamsburg, Virginia,
and an honor to participate in this year’s
conference on People Adding Value to Food
Distribution. I’ll be talking about “Packaging
A Key Element in Added Value.” All of us
here are concerned with packaging in some
way--my firm as designer, some of you as
manufacturers, others of you in wholesale and
retail establishments who stock and sell these
packages, and those of you from universities
who help us all understand the trends better.
But while we study, observe, and determine
changes in packaging, the consumer is some-
times totally mystified by what we do. Here,
two consumers, Frank and Ernest, learned
about DPP in their recent trip to the grocery
store. As the checkout clerk explains, “The
manufacturer had to raise the price on that
item to pay for the cost of switching to a
smaller package.” So today I want to take
the consumer’s part- -helping us to understand
his or her problems and how we can make
packaging solve them.
Historically, packaging’s main function,
or added-value, was to contain the food.
Maybe it’s our trip here to historic Williams-
burg that reminds me that it wasn’t so long
ago that primary food packages were burlap
bags, barrels, and, if you were lucky, glass
apothecary jars for peppermint sticks. These
early packages served primarily to contain the
food. The consumer was served the amount
he wanted into a secondary package, often a
sack or paper bag, Then this food was carried
home and put into another container--like a
flour canister or flour bin.
It wasn’t long after that that preserva-
tion became another value added by packaging.
In 1795, Nicholas Appert, French chef, won
the French government’s prize for developing
a simple way to preserve food for the French
army- -boiling water and glass bottles- -a pro-
cess still with us today. Here, we have the
1858 refinement by John Mason shown contain-
ing some 1987 vintage apple butter!
But times are more complex now. All
consumers assume that a package is going to
contain and preserve food. So, today’s modern
food package must do more. Here are five
value-added functions for today’s consumer:
1. Brand Identification
2. Advertising at the Point-of-Purchase
3. Product Transport
4. At-Home Storage
5. Task Assistance
But before talking about these avenues
to added-value packaging, let’s talk about the
consumer.
Consumers are busy these days--always
in a hurry--with too much to do. Fifteen
years ago, shopping was fun; now it is just
another chore, and the average supermarket
shopping trip has dropped from an hour to 20
minutes. While women are still the main
supermarket shoppers, men now account for 40
percent of all food dollars, up dramatically
February 88/page 6 Journal of Food Distribution Researchfrom 13 percent in 1982. In addition, we all
know that our shoppers are aging. One study
among more than 50 consumers (Donnelley
Marketing) asked about problems encountered
with supermarket shopping, . Packaging topped
the list--73 percent said that products were
too hard to open. The supermarket itself did
better, only 56 percent said that the lines
were too long.
Packaging can add value
through brand identification
Busy consumers are zipping up and down
the aisles. Each purchase may take only 30
seconds, These active consumers of today
purchase more on impulse and may be some-
what less brand-loyal than years ago. But a
well-known brand is dependable; once con-
sumers know the quality, they can rely on it
time and time again. The package establishes
brand identification in several ways. Obvious-
ly, the name will be printed there, But pack-
ages have become brighter, products more
numerous, and clutter on supermarket shelves
has reached astronomical proportions. So if
you’re in a hurry, just the brand name may
not be enough to catch your eye. The total
“look” must be recognizable. Campbell’s has
done an outstanding job in keeping a con-
sistent look even across its different lines of
soup. Del Monte also has overcome the
temptation to change its look, and has retained
the familiar red and green- -even in their new
aseptic package.
Package shape is another way to add to
your brand identification. The bottle shown
means Coca Cola, whatever the language.
Even today, the familiar wavy form is main-
tained in the graphics on cans. Mr. Clean
also does an excellent job. As you’re running
down the aisle past the household detergents,
that bottle looks almost like Mr. Clean him-
self-- jumping out from the shelf, with his
broad shoulders--ready to go to work. So,
through careful development of a brand image
and coordination and consistency of package
design, you can help consumers find your
product in the cluttered supermarket environ-
ment, quickly and confidently.
The package is also the advertisement
at the point-of-sale
But, you say, how does that add value
for consumers? Consumers often turn away
from the advertisements on TV, channel-
hopping to find something else they would
rather see. This TV-watching habit has accen-
tuated the importance of packaging in inform-
ing the consumer and advertising the product,
Many of us have VCRs that can be left on
automatically and set to screen out the adver-
tisements. Cable TV is increasingly common--
with no ads except for its own programs. All
of this results in an extremely fragmented
television-viewing audience which has lessened
the pcwer of network advertising. I am sure
many of you are aware of the disagreements
and discussions going on now between adver-
tisers and the networks regarding rates
charged and the true size of viewer audiences
actually delivered.
But when consumers are in the super-
market and ready to purchase, they need
information. They need to know that a parti-
cular product is the “right one for me.” And
since at least two-thirds of purchases in
supermarkets are on impulse (according to the
Point of Purchaae Advertising Institute), the
package is the only source of information
available! For food products, consumers are
especially interested in nutritional information.
Today, we are very health and diet conscious.
The Calorie Control Council estimates that
about a third of all Americans, 18 and over,
is on a diet that’s 65 million people! This
includes nearly a half of all adult women and
about a quarter of all men. “High” is out, and
“low” is in.
“Low” can also mean low salt, not just
low calories--a growing concern of many
Americans. Still others--not only do they not
want sugar and not want salt--the y don’t
want chemicals and preservatives either! Ac-
cording to a report in Supermarket News, 93
percent of shoppers are concerned about the
nutritional content of foods.
Increasingly, new brands and products
are tapping into this concern they are bring-
ing forth images of health and good old-
Journal of Food Distribution Research February 88/page 7fashioned food. For example, we have Hidden
Valley Ranch, Sun Country, Indian Summer,
Nutri-Grain, and, of course, Pepperidge Farm.
While these goods may not have any fewer
calories, they seem as if they would taste
good--and be good for you. The packaging
has descriptors like: “Garden Herb,” “100%
Natural,” “pressed only from jresh apples,”
“no added sugar and no artificial preserva-
tives.” This information provided clearly on
the package is the advertisement at the point-
of-purchase.
What other information do consumers
want from the package? After nutrition, is
tamper evidency the next major challenge?
Will consumers demand to know that the food
is safe as well as healthy?
Third: A value-added package can
help the consumer transport the product
The busy consumer only has five to ten
minutes, stops off at the supermarket on his
way home, picks up a few things, want to run
through the 8-items-or-less line, get back in
the car and get home. Supermarkets provide
the most common transporter-package: the
bag at the check-out, either plastic or paper.
But consumers sometimes only buy one item
and, to save time, rush off with, “I don’t
need the bag.” Some manufacturers are adding
value to their products by providing a package
that has its own transport device--for example,
a carton for single-serving containers. Canned
beverages have moved to plastic rings. Big
laundry detergents, which were always cumber-
some to carry home, now come with handles.
But how about paper towels or tissues in
big packs? These seem to require two hands
to pick up. Is this an opportunity for a man-
ufacturer to add value and distinguish itself
from competition?
How about fresh produce--it is very nice
for the consumer to pick out exactly the
tomato he or she wants. But the produce
ends up in a bag again--usually plastic--and
this bag gets dumped in the bottom of a paper
sack where the tomato gets squished on the
way home by the laundry detergent. Why not
a new value-added packaging innovation that
will help protect and transport the produce
you’ve picked out yourself?
While I have been focussing on packaged
goods sold through supermarkets, food service
operators have similar challenges. McDonald’s
packages were originally designed to be cost
effective in a fast-food, sit-down-and-eat
environment. But today, more than two-thirds
of the business is “Drive-thru.” As we all
know, these packages are extremely difficult
to carry in your car. The paper bag does not
retain heat, and the fries are cold and soggy
in minutes, whether or not they have fallen
out of their container. The cold drink cup
sweats and, if you’re not careful, will fall
right through the bag. So taking this meal
home is nearly impossible; and we all know
how difficult it is to balance these containers
in the car. Here is another real packaging
problem for consumers that has not yet been
solved.
Improving at-home storage is
another way to add value
One hundred and fifty years ago, you
would bring your flour home and dump it in a
flour bin or a cannister. But today, most of
us do not have flour bins, and our jammed-
packed kitchens often don’t have room for
canisters. So the bag of flour just goes in
the cabinet. Most food products these days
are left in their containers until they’re used.
So how do we add value to this basic
function? If it is a single-use container, we
need to be concerned with the ease of opening
and dispensing, but after that, the problems
are over- -the container is thrown away, But
many of the foods today come in multiple-
serving containers, like flour. The package is
opened, product dispensed, then the package
needs to be resealed and put back on the
shelf or in the refrigerator.
Recently King-Casey conducted our own
study of food packaging problems from the
consumer’s point of view. We found that
despite all the advances--such as the added
convenience of squeezable bottles and micro-
wave-ready frozen foods--consumers still have
February 88/page 8 Journal of Food Distribution Researcha lot of problems with packaging! And most
of these problems involve in-home use and
storage. For participants in the food distribu-
tion industry, those problems areas can be
turned into major opportunities.
Remember the flour sacks? They have
hardly changed in 200 years. Oh, you can
open them all right- -so what if the flour flies
all over? But try to reseal them. Or try to
pour flour out neatly.
How about cereal boxes? This was
another big consumer problem noted by our
study. Well, you can get them open--one way
or another. But who has the time or patience
to pull the tab properly? And besides, who
can open the inside wrap without ripping it
to shreds? One manufacturer has introduced
zip lock bags inside--a good and promising
direction.
How about rice and pasta? With smaller
families, you don’t always use a whole box of
spaghetti at one meal. So, how do you know
how much to take out for the number of
people you have? There is no way to measure,
and there’s no way you can close those boxes
conveniently and keep the spaghetti from
falling out and rattling around in the cabinet.
What about those frozen vegetables in
the little boxes? Unless you are going to use
the whole box at once, you have a problem
on your hands. When you open the box you
almost aIways destroy it. Usually the vegeta-
bles are all frosty and stuck to the side of
the box so you have to pry them off with a
knife, figure out how to cut the brick of
green beans in half, and then somehow reseal
the package and put it back in the freezer.
Some consumers elect to do their own repack-
aging job, because the one provided just won’t
work.
What about ice cream? It’s hard enough
to open without destroying the cardboard
carton, but it doesn’t really reclose very well
anyway. Once you’ve opened ice cream, con-
sumers tell us that it definitely declines in
quality, and it takes up a lot of space.
Another category--frozen juices--causes
all kinds of problems. You know those little
plastic strips--they’re supposed to unpeal the
top neatly from the container? Well, con-
sumers find those extremely difficult to grab
and hold on tcy the can is usually cold when
they’re doing it it hurts their fingers and, if
they use a knife, they have to watch out that
they don’t cut themselves and in the end,
when they finally do open it up, the juiw
frequently splatters.
Our Kipg-Casey study shows that one of
the major food categories is filled with pack-
aging problems--cookies, crackers and bis-
cuits--over $4.5 billion at retail. Consumers
tell us that they’re so frustrated with the
packages that will not reseal, that they have
to eat the last two cookies in order not to
leave them there to get stale. Now, when
you put that with the fact that these con-
sumers are probably on a diet, you know how
irritating this must be!
Finally, a package can add value
by providing task assistance
Maybe as we think back, it was the TV
dinner that started it all--just pull the alum-
inum tray out of the box, put it in your oven
and thirty minutes later, a sumptuous feast!
Another approach to helping with the
task of meal preparation has been boil-in-
the-bag entrees and vegetables. This seems
convenient- -no preparation other than popping
the bag in boiling water, open and serve.
But how convenient is it really to open these
bags, get the food neatly and cleanly on a
plate without burning your fingers or slopping
water all over the place? Our survey indicates
it is not as convenient as we had hoped.
Another example of lost opportunity are
those cardboard cartons for juice. Yes, we in”
the industry have tried to be helpful here,
too you just open the carton, and it has its
own pour spout. But think about the con-
sumer’s task at home have you ever tried to
shake up the orange juice once it has been
opened? Try to hold the spout closed without
squirting Tropicana all over yourself! Provid-
ing task assistance through packaging is one
Journal of Food Distribution Research February 88/page 9of the major ways that manufacturers can add
value to their products.
Here’s an innovative approach from a
Japanese company beer packaged in a plastic
can--one with a label which is perforated and
can be neatly removed. So the cap comes
off, label comes off and a neat can becomes a
handy glass of beer. A little device in the
bottom of the can provides a bit of agitation
to develop the bubbles. And no dirty glass to
wash,
Many food manufacturers are working on
this “task assistance” area to take advantage
of the microwave. As we all know, this ap-
pliance has created a revolution in the kit-
chen. Surveys indicate that today perhaps as
many as 50 percent of U.S. households have a
microwave oven--and as many as two-thirds
of Americans are doing some microwave cook-
ing. A recent study forecasts that these num-
bers will reach 80 to 95 percent by 1991.
Microwave ovens have been around for a few
years, but it is only recently that we’ve seen
the rapid introduction of innovative packages
to take advantage of them. For example, the
microwave has given a new lease on life to
popcorn: a messy, time-consuming project
under old methods, and a quick, easy, snack
food with a microwave.
More and more manufacturers are offering
their frozen foods in dual ovenable packages
and containers. Others are formulating their
foods strictly for microwave oven cooking,
targeting their brand toward the busy con-
sumer. Here we find many efforts to make
these packages more convenient. For example,
one-way packages go directly from the super-
market, to your freezer, to your microwave
oven, to your table, adding a tremendous
amount of convenience and value from the
consumer’s point of view.
Here’s a household product with a new
package designed to be a real help oven
cleaner in a scouring pad. Cleaning ovens,
for those of us who don’t have self-clean or
microwaves, is one of the messiest jobs in
the kitchen. In a shrinking market--as many
cleaning products are--it is critical to continue
the innovation to preserve market share,
Here was an innovative way a package that
not only contains the oven cleaner, but dis-
penses it, and helps you spread it. Use this
and the task goes more quickly, neatly and
with less fuss and bother.
King-Casey developed one of these “con-
venient helper” packages for Wagner Spray
Tech, a company in the do-it-yourself business.
These products, called “Added Touches,” one
for spackle to repair your wall, one for paint,
and one for wood filler, are based on the
pump technology (similar to the toothpaste
pump).
To develop this innovation, we looked
carefully at the task that the consumer was
involved in and how we could help make the
whole process easier. For example, repairing
a plaster wall for repainting requires a can of
spackle, a screwdriver to open the can, a
putty knife to spread the spackle, and a little
piece of sandpaper to smooth the spackle
when it is dry. Then you’re ready for paint-
ing. By looking at the whole task as the
problem rather than at just a new container
for spackle, we were able to incorporate all
these tools into one, convenient, value-added
package. The pump dispenses the spackle
through the tip, and the specially designed
head, shaped like a spatula, is used to spread
the spackle around. When it’s dry, just turn
over the package for the sandpaper located
on the bottom. All those tools are combined
in one neat package; put the top on and the
package back on the shelf until the next use.
Conclusion
Although packaging has made tremendous
strides over the years, it still remains as one
of the main avenues for increased added value
in the food distribution industry. These
efforts pay off for the industry as well as for
the consumeq we know consumers will often
pay as much for these packages as they pay
for the product itself!
However, as we think about these oppor-
tunities and consider the new technologies we
have at our disposal, we need to keep old
Frank and Ernest, the consumers, clearly in
our minds. While we in the industry may
February 88/page 10 Journal of Food Distribution Researchwant to see a new package that is easier to
ship, to stock, and yields greater profits, we
must remember, that the consumer must see
the added value. Because it’s the consumer
who decides whether to take the product to
the cash register which is, after all, what
makes the whole system run.
Journal of Food Distribution Research February 88/page 11

PACKAGING: A KEY ELEMENT IN ADDED VALUE

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