3. Innovation that leads to cost reduction through change in structural pack design
• The innovation model
• Renovation & Innovation
• Innovation level & Projects categorization
• Consumer Insights…a multi–layered approach.
• Holistic design
• Reviewing effect on cost through change in structural packaging design
– Leading case
• Final conclusions & Q&A.
Agenda
4. The model
412 May, 2013
Strategy, Insights and
New Ideas
Business Needs
Consumer Opportunities
Insights & Ideas that
align with desired
Direction
Potential Solutions &
Proven Concepts
Chosen Concept Complete & Robust
Product Design
Specifications
Robust Manufacture
& Equipment
Efficient & Effective Rollout
Define
Discover
Design
Deploy
6. Renovation and Innovation
Consumer/technology Matrix (CTM)
New Core New Benefits Improvement New Variant No Chg
RadicalNextGen.IncrementalBase
consumer value perception
enablingtechnology
The two axes of the CTM are:
1. Consumer Value Perception (CVP) CMI/BD
led. How will the product be perceived by
the consumer in the launching country?
2. Enabling Technology (ET) R&D led. How
does the technology used in this product
compare to what is currently being used in
the industry anywhere in the world?
7. Innovation levels
1. derivative / extension
2. Incremental / evolutionary
3. next generation / revolutionary
4. radical / disruptive – breakthrough
4 levels of innovation:
no fix
boundaries,
some
overlapping
time to market
resources
risk
innovation
derivative
incremental
next generation
radical
8. Level of complexity
• In order to analyse projects systematically and fairly, they were classified
according to an arbitrary scale of level of complexity:
• Level of complexity 1: New Variant (recipe / flavour / fragrance), same pack & same
production process
• Level of complexity 2: New recipe/formulation, complete product range.
• Level of complexity 3: New packaging or new components in pack (e.g. dosing cap).
• Level of complexity 4: New recipes / formulations across several packaging formats/
platforms.
• Level of complexity 5: New pack + New formula. E.g.: Red Bull.
• Level of complexity 6: New technologies (I.e. new molecules, new manufacturing &
packing process) and/or new packaging. E.g.: Nespresso
9. Level 1 & 2: New variants & New recipe / formulation
• Projects duration: approx. max. 1 year.
• There is no urgent need to speed up these projects.
• Could still benefit from:
– Complexity reduction (Flavours/fragrances and formulations
harmonisation)
– Global testing protocols.
– External resources (Flavours / Fragrance houses validated for running
storage tests?).
– Improved ways of working.
10. Level 4 & 6: New pack or pack components, new pack + new
formulation
• Pack design and its implementation in the factory (SC) generally dictates the
critical path.
• If safety, regulatory or legislation is affected, this could also play an important
roll).
• Can take from 2 to 4 years from charter gate to launch proposal.
18 to 30 months
(1 ½ years to 2 ½ years)Charter gate Contract Gate LP
12 to 18 months
(1 years to 1 ½ years)
Packaging in critical path
SC in critical path
30 to 48 months (2 ½ years to 4 years)
Model example
11. Charter gate Concept lock
(pack)
Prototype/pilot
tooling (pack)
Contract book
Technical design lock
(pack)
4 to 9 months
Key interfaces:
Packaging -SC
(DFM)-suppliers
7 to 9 months
Ideas exploration
Design activities
Qualitative studies
Key interfaces:
Marketing
CMI
Packaging
Design agency
PPT
CPT
Bases II
9 to 12 months
Key interfaces:
Packaging (+CTI)-CMI-
Marketing
1 2 43
5
1
-Rapid prototyping
-Qualitative testing & consumer feedback
-Design iterations up front.
-More resources in Concept selection. Packaging deeper involvement. Share responsibility with MKT
2
Number of Concept options reduction enabling earlier work for technical design.
Merge/bring as close as possible Concept and design lock
Full technical detailing using Moldflow and FEA simulation tools.(Technical design lock)
3 Better/Smarter interaction with interfaces
4
Tolling management/selection. Experience with mould maker 24 / 7dedicated
resources to mould - delivered in 4 weeks against 10 weeks.
Zoom in…Opportunities
12. R&D input
Consumer Insights: a multi-layered approach…
here we start? Ideas Phase overview
Consumer
Insight
Shopper InsightsCustomer Insights
Insights
Dev. Tool
Phase 1
(Brand led)
Marketing/R&D/
SC/Finance input
Phase 2
Consumer Insights
sharpening
Kick Off Meeting
Input shopper,
channels & customer
insights
Idea Generation /
MKT Concept
Development
Quantitive /
Qualitative Testing
Early strategic
alignment with
customers
Top down
assumption: Lead
Business Case
Technical
(R&D/SC)Scoping
EPM
Past learning's
Design
Brief
Project Brief
CL
CHARTER
Strategic Fit/Exploratory/Resource Allocation
13. Packaging is becoming the primary point
of contact for our consumers…
How will we differentiate?
14. holistic Design = packaging is…
…an integrated part of the product experience
15. holistic Design
packaging formulation brand total product experience
• avoid treating the three areas in silos.
• whenever a new packaging is developed new graphics may be done in parallel.
• if possible develop the family range of products simultaneously to enhance brand image
consistency across the product portfolio.
18. Background
• Claimed to be the smoothest roll-on in the world, the upside-down roll-on features four
patented designs. It is the result of several years’ collaboration between Unilever and its
packaging suppliers.
• What were the insights?
1. No.1 in use consumer gross negative was the slow speed of drying (we want to deliver
a pack + formulation which is super fast dry).
2. Being ‘more green’ than competitors is a powerful claim for any brand and a compelling
draw for consumers. We knew we could claim the new Rexona roll-on ‘more green’ than
any other 50ml roll-on in the market by overhauling our design and manufacturing
process.
19. Project Brief: summary
• To make a significant advance in roll on packaging. We want a clear, consumer
perceivable step forward that will drive consumer preference and put us a step ahead
of the competition.
• To develop a new pack which has irresistible, 'for me' appeal for men and women.
• To develop a pack which 'feels right' for the '4' strategic brands - Rexona for men,
Rexona for women, Dove and Axe.
• To develop a pack which is 20% cheaper than current and hits key $1 retail price
point needed for developing markets
20. What were the challenges?
• use of higher speed manufacturing to hit cost targets.
• a more sophisticated design to keep our target consumer.
• a better roll-on engine (requiring more critical parts) to validate our marketing claim that
“there is no smoother roll-on”.
2 seconds packing at
constant pressure
2.5 seconds packing
with pressure decay
21. How did we get started?
• Early engagement with all critical functions.
• Right at the start, we brought key suppliers – to make sure the team could operate globally
and cross-functionally.
• Deployed leading edge design technologies as CAD, CAD and Rapid prototyping and tooling.
• We addressed the supply chain globally , sourced new suppliers and set new contracts.
• At the outset, we agreed what to measure and then set about testing, testing, testing – all the
elements and even the people – to make sure we challenged and improved every aspect of
the entire process.
22. What next?
• The moulding, assembly and packing processes have been redefined.
• We designed radical systems to reduce capital, whilst improved our energy efficiency to use
less electrical energy and cooling water.
• Common manufacturing solutions were introduced across all countries.
• The new roll-on became 8% lighter in weight, using a total of 1000 tones less plastic per year
than previously.
23. What’s the result?
• Best performing roll-on in the market due to innovative engine design and upside down
position.
• The time to make the cap has been reduced by 48% and the time to make the bottle
has been reduced by 18.75%, leading to a reduction of six million kW/hour globally.
• This saving is equivalent to that of having a light bulb on for 6,000,000 hours (685
years).
• Overall cost targets have been achieved.
• . ..and sales are rocketing!
24. Innovation & Cost reduction
Final conclusions: The balancing act
SC flexibility & Mfg. speed
Beauty & Function
Timing & Risks
Packaging & Formulation
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