SBS Retail Packaging Revolution Whitepaper Aug2013

August 2013

THE RETAIL PACKAGING REVOLUTION – ARE YOU READY?

Published by: Sun Branding Solutions Albion Mills, Albion Road, Greengates, Bradford, UK BD10 9TQ T: +44 (0)1274 200 700 E: info@sunbrandingsolutions.com

Meet the family @ www.sunbrandingsolutions.com A Sun Chemical Company

SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

CONTENTS

2.

3.

7.

11.

EXECUTIVE SUMMARY

AUGMENTED REALITY IN PACKAGING

WHITE BOX OR PACKAGING RENAISSANCE?

PACKAGING REGULATIONS… NOT JUST FOR THE TECHIES!

14.

SO ARE YOU READY FOR THE RETAIL PACKAGING REVOLUTION? page 01

SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

EXECUTIVE SUMMARY

There’s a healthy debate raging on the future of retail

This whitepaper, written and published by Sun Branding

packaging in today’s multi-channel world. With the

Solutions, looks at how retail packaging is moving beyond

increasing strength and capacity of the internet and online

the physical box, engaging with our senses, interacting with

shopping.

our smart phones and how augmented reality is transforming the role of packaging.

Will all retail packaging resort to being a white box with basic labels? Or are we moving toward a packaging renaissance where physical packaging is the gateway to the world of digital and virtual reality?

Move past the hype and understand the true potential of packaging!

One thing is for certain…the future of packaging is changing like never before! page 02

SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

WHITE BOX OR PACKAGING RENAISSANCE? We all know that shopping can happen anywhere now – not just in store or in front of a computer – but wherever the

BEING NOTICED

consumer happens to be and at whatever time they choose, thanks to their smartphone or tablet.

The rapidly accelerating pace of technology in our industry is opening up so many new creative possibilities. Innovative

It was unthinkable a decade ago, but online shopping can

effects such as multi-sensory coatings, UV inks, conductive

now of course happen just as easily in store, in front of a

inks and thermochromics, are increasingly being used in

stacked shelf, as anywhere else.

main stream packaging, helping brands stand out from the crowd, getting them noticed.

So does this mean that the role of packaging diminishes to something functional that simply protects the product on its

Many brands are using technology to enhance brand

journey from warehouse to home?

messages and bring an additional level of involvement with the pack.

Far from it….

Packaging still needs to contribute in all the ways it ever did to getting a brand noticed, chosen and valued, but it is doing so in new and exciting ways.

NOTICED

CHOSEN

SEE IT IN ACTION heinekenignite.tumlr.com

VALUED

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SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

Heineken’s “Light up the night’ bottle was billed as the world’s first UV light bottle and reveals the brands star trail under UV light in clubs. In April this year the brand promise to ‘open your world’ was pushed further with the unveiling of the prototype Heineken Ignite which is described as their first interactive bottle. The social action of ‘cheers-ing’ triggers a bright flash of light up through the green bottle, LED’s spin faster as you drink and remote activation can sync all the bottles to spectacular effect…making the bottles unmissable in a crowded club!

THE CREATIVE POTENTIAL OFFERED BY THE TECHNOLOGY IS VERY EXCITING – AND NOT LIMITED TO PACKAGING.

CHECK OUT youtu.be/2RY1mU-Evdk

Another great example is how Ballantine’s Finest uses

Different settings reflect a range of music beats: chill

electroluminescent technology to create not only great

random and dance. Electroluminescent technology has

visibility for the brand behind the bar in a dark night club, but

been used to make it seem as though the bottles can ‘talk’

also to do so in the innovative and engaging way that the

to each other. When grouped in a large bar display, they

young male audience has come to expect from the brand.

can be programmed for the sequence to run in unison or for the light effect to radiate out from a central point across the

To capture the brand proposition and ‘Leave an Impression”

bank of bottles.

the brand uses the link with music that has already been established in local market activation programmes. The new display bottle uses the movement of light on pack in a sequence of effects that highlights the Ballantines ‘B’, with light pulsing through it like sound waves echoing the beat of music. page 04

SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

BEING CHOSEN Ocado’s bold and striking new look is a great example of how a brand uses packaging to be chosen. Their packaging amplifies the Ocado brand marque, the swirl, in a series of patterns across their own-brand range. It uses the brand’s existing colour palatte in new combinations and acts as an extremely strong simple brand beacon when shopping using small pack images on line.

As an on-line only retailer, delivering straight to the door,

BEING VALUED

Ocado does not face the normal pressures of navigation on shelf in a bricks and mortar store, freeing up space on pack for this focus on brand identity.

Does this mean that brands should consider an on and off line version of their packaging reflecting the differing needs

PACKAGING ALSO HELPS A BRAND BE VALUED

BY ITS CONSUMERS; AND STRENGTHEN THE EMOTIONAL BOND THAT BUILDS LOYALTY

of each channel?

Augmented Reality (AR) has the potential to resolve this as it

Physical packaging can bring to life the brand promise and

blends the digital and the physical, helping people view

values. Structure, substrate, special effects and finishes are

detailed information traditionally carried on pack in the

used, at their best to dramatise these in a multi-sensory way.

virtual world, triggered by the pack and displayed on their mobile devices.

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SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

Above all packaging is a key part of the brand experience.

Apple is often quoted as an example of great design. Your new iPad arrives at your door in nothing more than a cheap white box. No sleek, smooth, gleaming exterior, heightening the anticipation of the beautiful engineering within. The pack exudes the understated ease and beauty of the product and the Apple brand. It represents far more than a box that protects a product in transit.

THE FUTURE IS BRIGHT It is clear to see that the future is bright for packaging. Bright thinking, the changing world of the shopper, along with exciting and innovative technologies afford new opportunities for brands to be: Noticed, Chosen and Valued.

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SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

AUGMENTED REALITY IN PACKAGING

SO WHAT IS AUGMENTED REALITY? The name ‘Augmented Reality (AR)’ is an extension of virtual reality in which a user is immersed directly into a digitally created environment and is most commonly seen in computer games.

However, in essence, it is the ability of a device to combine a view of the “Real World” with digital information.

For smartphones, this is the camera view of the device shown on screen, and for the new “Google glasses” style AR, it is the projection of digital information onto the clear glass area of the user’s view.

The type of content we are able to place in the user’s view can be in the form of pictures, text, sounds, video and 3D

Digital information aims to add precise context, detail,

models, all of which can interact with the user and the

direction and information to help the user better interpret

environment around them as the need fits.

their surroundings, or objects that they can see.

Examples can range from finding your nearest café with a floating arrow and summary, making a poster come to life with video and 3D, to placing a virtual object in your home before you decide to purchase it.

Like most emerging technologies, it is of less value to think of how it has worked to date, and more important to look at the concept of how it is likely to integrate into what we do tomorrow.

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SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

AR in packaging provides a vital link between the physical product and digital paths of engagement, information, e-commerce and CRM.

HOW DOES AR AFFECT PACKAGING DESIGN?

The design implications on packaging is not as extreme as one might think – 70-75% of existing packaging is suitable for current AR app recognition.

AR CAN BE APPLIED TO SUITABLE OLD DESIGNS AS EASILY AS TO NEW DESIGNS

However, there are some golden rules which will improve the

AR is an emerging channel to market and can be used to

AR experience for the user:

communicate a range of information that can be tailored to the environment, individual, time, location and previous

• Lots of areas of contrast (AR sees the world in black and white and needs to create a fingerprint from the points of change on an image) • Symmetry (The app can often recognise something but unless it knows the orientation, nothing can be displayed) • Highly reflective surfaces (mirror, large areas of metallic finishes and some clear packaging affect how the camera sees the world

interactions.

As user understanding increases, we are likely to see continued acceleration in the growth experienced to date and will be heavily linked with online and offline purchasing.

The use of AR in retail packaging is growing and ranges from novelty applications and infotainment through to factual explanations of products.

Unlike most technological developments, AR doesn’t seek to take away from the traditional and replace with the virtual. It very much relies on the tactile world around us to link the real and digital together and, indeed, it requires the continued development of non-digital design.

AR is about direct engagement with the consumer and enhancing their experience, interaction and understanding of your brand and products.

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SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

Making chocolate (more) interesting.

WHY NOT DOWNLOAD THE APP FOR FREE FROM THE APPLE APP STORE? JUST LOOK FOR “SBS AR”.

Sun Branding Solutions has integrated AR into a limited edition ‘Sun Selection’ chocolate box and developed an AR app, which incorporates 4 different themes of communication.

This app is used in conjunction with the Sun Selection chocolate box, which is available to download via the AR app.

The Sun Selection box and AR app explores…

• Product Display When the app is focussed on the Sun Selection box, the full contents of the box are displayed and each chocolate can be selected for a fuller description.

3D models of products are a great way to show the consumer what you have to offer inside the box.

• Brand Education The app displays two videos which, when selected, outline the products journey to date as well as the future

• Entertainment The final element of this app is a gravity based maze game, engaging the consumer in a fun and iight-hearted way.

Many products want to be fun and enjoyable and games allow a simple way of initiating this on pack. The more a consumer enjoys using your product, they more likely they are to buy your product!

life of the packaging.

AR is a great way to engage with the consumer to explain brand ethics, heritage, product ingredients and recycling considerations.

• Sales Promotion Everyone loves a competition! This app features a pop-up quiz which, on answering correctly, gives the consumer a discount voucher to scan at the point of purchase.

AR is a unique technology in that the virtual interaction is with the consumers’ real world, making personalisation and brand promotions even easier.

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SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

NUMBER CRUNCHING

AR holds one truly valuable commercial secret!

journey paths and understanding of the market, that no other medium is able to deliver to us.

AR content can be personalised and delivered direct to the user on demand over the web. This gives us the power to

The reason is that unlike the delivery of a web page to a

provide a near endless array of information to the user but,

mobile device, AR can record the behaviour in use, along

more importantly from a marketing perspective, it provides

with a detailed location, and link it to previous interactions

brands with a level of knowledge on customer interaction,

and post app use to social media and other online services.

AR WILL BECOME MAINSTREAM The future or packaging and the influence of e-retail has

will, in any way, side step the way we design, produce and

often been predicted to be a sequence of steps towards

present packaging in the future would be equally blinkered.

plainer, blander and more insignificant boxes focussed purely on function and home delivery.

The next two years will see brands and retailers continue to move from a period of testing with early adopters towards a

AR is a technology that relies on recognition as much, if not

strategic involvement of AR and other digital technologies

more, than the people buying the products.

into the mainstream of their packaging and marketing policies.

It would be wrong to say that AR alone will revolutionise the packaging industry but to believe that these technologies page 10

SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

PACKAGING REGULATIONS…NOT JUST FOR THE TECHIES!

Recent changes in food sector regulations are having an increasing impact on the future of packaging, here we will

FOOD IDENTIFICATION AND CHOICE

look at the practicalities and opportunities these changes will bring.

Food labelling, or food information as it is now called, is only part of the information on food labels. Labels are also used to entice sales by including various marketing elements.

MANDATORY FOOD LABELLING

There is plenty of debate about which is more important, product recognition using brand or ‘marketing’ information, or the details people need to make healthy, safe and sensible use of the food.

Food packaging is used to deliver both legal and marketing information to consumers.

New food labelling regulations published in 2011 create a

IS IT BRANDS? IS IT LABELLING, OR DO WE JUST BUY THE FOODS WE LIKE?

different set of rules around the content and presentation of information about food on packaging and elsewhere. Much of this is the content we are familiar with, such as ingredients lists, best before dates, country of origin and storage conditions.

Clearly this information is required for consumers to understand the food that they are buying and how it contributes to their diet. It is also necessary to make sure consumers can make safe use of the food they buy.

These rules are in force at the end of 2014.

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SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

Increasingly the ‘authorities’ would like consumers to prioritise ‘health’ in their food choices. High fat, saturates, salt and sugar diets are costing us all and something needs to be done.

Product identification on shelf is a key priority for food brands, leading to colourful iconic packaging dominated by brand names, with legal information tucked away on back of pack.

LABELLING PRIORITIES

Recent legislation changes in Europe, due for complete

Essentially everything except the list of mandatory

implementation by the end of 2014, have changed the

information is regarded as ‘voluntary’ and this now takes

balance between marketing information and

second place, in law, to the legal information.

mandatory labelling. For example ingredients, nutrition, cooking and storage instructions by the introduction of

This is critical to label design in that space must be

presentation rules.

allocated for mandatory food information, presented as required, before consideration can be given to voluntary

“Voluntary food information shall not be displayed to the detriment of the space available for mandatory food information.”

food information.

WE COULD FINISH UP WITH LEGAL INFORMATION ON FRONT OF PACK, COMPROMISING DESIGN SPACE.

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SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

PACKAGING AND FOOD LABELLING NOW

The current position is that this mandatory information has to

The interpretation of some of this is unclear at the moment,

be given on the label for pre-packaged foods.

but we can see there are probably limits to what is expected to be labeled.

In a nutshell, mandatory food information must:

There is no doubt however that there is a potential conflict not just with marketing and packaging design but also with

• Be directly on the package or on a label attached to the packaging • Be visible, clearly legible and where appropriate indelible • Not be hidden, obstructed, detracted from or interrupted

the environmental agenda and minimisation of packaging in particular. New minimum font size rules applied to all mandatory information could require larger labels, or cardboard sleeves or a total rethink of pack formats.

by any other written or pictorial matter, or any other intervening material.

HERE ARE A FEW PRACTICAL EXAMPLES

There are many examples where there is a limited amount

The regulation also fails to acknowledge limitations of

of space that can be used for labelling due to the format of

production processes. The pork pie example above shows a

the packaging. The least we can expect is an impact on

self adhesive base label that, to fit all the text on at

design, the worst is a need to change the pack format, add

minimum font size, is now exactly the same size as the

an extra label or even a sleeve.

packaging. Of course it cannot be allowed to overlap the edges, or products will stick to each other.

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SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

NEW TECHNOLGY IS ON THE LEGAL AGENDA

The short term solution may be to deliver some or all of the supporting information using the new technologies and innovation detailed in this whitepaper. This is unlikely to satisfy the Brands however.

For them there is a glimmer of hope. There is recognition in the legislation that, when the technology and the time are right, there may be appropriate means off the label to deliver technical information.

So the Food Information to Consumers Regulation includes this provision:

The food regulators are waiting for the packaging industry to prove they are ready to deliver ‘the same level of information’ off pack. When you are ready they will push the button.

In order to ensure that consumers benefit from other means of provision of mandatory food information better adapted for certain mandatory particulars, and provided that the same level of information as by means of the package or the label is ensured, the Commission, taking into account evidence of uniform consumer understanding and of the wide use of these means by consumers, may establish, by means of delegated acts in accordance with Article 51, criteria subject to which certain mandatory particulars may be expressed by means other than on the package or on the label.’

THE REGULATIONS ARE READY TO LISTEN If the industry would like to take back the label to use for

Packaging is passive communication, if the technology is

selling the product, rather than for it to be dominated by

active, providing customers with advice perhaps, as well as

‘legal information’, then the industry needs to innovate and

information, then so much the better.

convince the regulators in Brussels that the new technology can give at least an equivalent level of information to

The Regulators in Brussels are ready to listen!

consumers, and ideally is better. page 14

SUN BRANDING SOLUTIONS THE RETAIL PACKAGING REVOLUTION WHITE PAPER

SO ARE YOU READY FOR THE RETAIL PACKAGING REVOLUTION?

So it is clear to see that with the changing retail space, consumer shopping behaviour, changes in legislation and technological advancements, we are embarking on a retail packaging

Packaging is the gateway to the

revolution and the future of packaging is

world of digital and virtual reality, and technology plays a key role in engaging with the consumer and having the brand noticed, chosen and valued.

changing like never before.

Do you want to move past the hype and understand the true potential of packaging?

Download the ‘SBS AR’ app to understand for yourself just what the future could look like for your brand’s packaging.

If you want to move past the hype and speak to one of our experts, contact Sarah Wilford, Marketing Manager via email swilford@sunbrandingsolutions.com or phone +44 (0)1274 202 364 page 15

Corporate Headquarters Sun Branding Solutions Albion Mills, Albion Road Greengates Bradford, UK BD10 9TQ T: +44 (0)1274 200 700 E: info@sunbrandingsolutions.com

Enquiries from the USA Please call our Chicago office on 708-236-3798 or email naimarketing@sunchemical.com www.sunbrandingsolutions.com

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Meet the family @ www.sunbrandingsolutions.com A Sun Chemical Company