Effects

Front Panel: May/June 2016 Issue

Posted: June 10, 2016 by

Advanced software and digital printing are changing how brand owners, such as Kraft Heinz, are relating to their consumers. For example, Kraft Heinz’ Planters brand is ringing in the centenarian birthday of brand icon Mr. Peanut, with limited-edition packaging for Planters Dry Roasted Peanuts. The packaging transforms the classic jar already strongly associated with the brand into 3 million one-of-a-kind designs. Each plastic jar features a dancing Mr. Peanut amidst festive, eye-catching fireworks in a multitude of colors and designs.

“Our brand fans get excited about anything with Planters or Mr. Peanut,” Kelsey Guglielmi, senior associate brand manager at The Kraft Heinz Company, remarks. “So, what better way to serve those consumers than to take our most popular product, these dry-roasted peanuts, and give them something that’s really one-of-a-kind?”

Guglielmi also noted that parent company Kraft Heinz has a team of “packaging gurus,” who are looking at advanced software and digital printing technologies closely. These gurus work with the brand teams to leverage the newest technologies to build novel and unique marketing campaigns that elevate their brands.

Consumer-facing brands that aren’t doing the same would be well served to get educated about these technologies, as recent research from Package Design and IDC finds that the majority of brands surveyed use digital in some stage of the process—whether it be in design, prototyping or final production. If you’re part of the 10% of brand owners that do not currently use digital printing at some point in project production, you can expect to see your competition’s ability to design, print and go to market faster to continue to increase. To read more about the research, turn to, “Digital Outreach,” on page 16.

 

1 Trillion

The size of the worldwide luxury market in Euros according to the 14th edition of the Bain Luxury Study, published by Bain & Company (www.bain.com) for Fondazione Altagamma, the trade association of Italian luxury-goods manufacturers. The research found that luxury brands earned €1 trillion (approximately 1.143 trillion USD) in retail sales value in 2015 and delivered healthy growth of 5% year-over-year at constant exchange rates.

The trend is aided by global currency fluctuations and continued purchases by what the research group calls “borderless consumers.” E-commerce for the category grew to a 7% market share in 2015, nearly doubling its penetration since 2012. Specialized e-commerce players are outperforming the market globally, with Chinese e-tailers progressively extending their geographic reach and gaining share on a global basis. The e-commerce sites of European and American retailers (such as department stores) continue to grow, a response to customers’ demands for an omnichannel experience.

 

Study: Willing to Splurge

Good news from the Q1 2016 Consumer Connect survey to gauge consumers’ financial confidence by IRI (www.iriworldwide.com). The research group found that 67% of consumers feel their financial health will improve in the next six months, and this sunny outlook is giving consumers the confidence to loosen their purse strings a bit and splurge.

Consumers also indicated that these splurges won’t be impulse buys and instead will be informed choices. For instance, 55% are willing to pay more for household cleaners made with environmentally friendly ingredients. In addition, 36% are regularly buying premium-quality beauty products, while 34% will pay more for environmentally friendly packaging.

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