There's no such thing as a free launch

The trouble with television programmes like High Street Dreams and Dragons Den, is that they only provide a
‘snapshot/soundbite’ of branding and the product development process, making it all appear oh-so-easy to the average ‘personon the street’. In reality, it’s a complicated process and there are a number of steps involved that should be considered before even thinking about approaching a branding or design agency and spending ‘hard-earned’ cash.
At Design Cognition we routinely get approached by all manner of entrepreneurs and small business owners who have very limited experience of branding and New Product Development (NPD). So we thought that we ought to provide some ‘pointers’ for those of you new to this arena, to get you to ‘stop and think’ and focus on what it is you are actually trying to achieve! It’s not in your interests or ours to develop products that have a high probability of failure.

So here are some fundamental questions to ask yourself, before you even think about branding & packaging:

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Captain Morgan wielding his packaging assets

A few weeks ago I had the privilege to listen to Paul Walsh CEO of Diageo, the world’s leading spirits, beer and wine company, deliver a ‘marketing’ talk at Nottingham Business School (Nottingham Trent University). It was entitled “Marketing & Communication in 2010 – Responding to the New Stakeholder Condition” and was such a powerful &  interesting insight, I thought I’d provide you with an overview and share some of my thoughts with you.

Diageo is the proud owner of some of the biggest ‘power brands’ on the planet, such as Smirnoff, Johnnie Walker, Guinness, Baileys, J&B, Captain Morgan, Jose Cuervo, Bushmills & Tanqueray. Both Guinness and Johnnie Walker have been around for over 200 years and Bushmills almost 400 years. Some feat! and a tremendous bank of heritage on which to pull (or push – or whatever you like really!).

Walsh is a fine orator, who is passionate about his brands and company. He talked about the basis of all iconic brands being ‘great products’ driven by FACE (Flair, Agility, Consumer insight and then Executed flawlessly). But he also acknowledged that the global marketplace is constantly evolving which affects the way we live and interact with our favoured brands.  At the same time, broadband is proving to be the biggest technological development since the introduction of television. As the world ‘goes on-line’ a whole new media stream has opened up to feed a young and dynamic market who have ‘bags of energy’ and want to ‘party’.  Walsh highlighted this momentous change by showing the video Shift Happens – some mind-blowing & thought provoking figures (I’m sure you will agree).

So the ‘rules of engagement’ have changed, and indeed are constantly evolving. Advertising spend in traditional media such as magazines, newspapers and TV has ‘nose-dived’ and has been diverted into new media, where Diageo, and other companies for that matter, have “up-weighted their spend in the digital space” and enjoyed much bigger ‘bangs for their buck’, realising huge cost savings.

It is clear that Diageo have become masters of leveraging the new technology. Key to their success, according to Walsh, can be attributed to a 5-point plan:

1. Having a good product

2. Being clear about the target

3. Identifying the single most compelling benefit

4. Effectively dramatising that benefit

5. Saying and constantly repeating it through the most effective channels

Affiliated to this is the ability for brands to attract and become “participants in a conversation NOT simply involved in a top-down message”. Metaphorically, he likened this to a change from a game of ten-pin-bowling, with a one-ball strike to a game of pinball, banging, bouncing, to-ing and fro-ing through a maze of buffers and pins. In this new media world, Walsh alluded to 3 types of people:

Passive participants – Those who are completely passive and soak up all of the information ‘thrown at them’ via static websites

Engaged participants – people who are engaged and share information via social media platforms

Active participants – those who voraciously add content on-line and are hugely influential

These 3 groups of people seem to inhabit this digital world in approximate ratios of 90 : 9 : 1 (respectively). It is the small group of active participants have been key to Diageo’s new media brand success. By influencing these people in this sector they have turn their brands from on-shelf icons to (almost) living and breathing entities.

A classic example of this success is Captain Morgan, which has rocketed over recent years and now holds a prestigious No2 position for premium rum brands. The driver behind this has been the building and grooming of the ‘Captain’ icon as a ‘living legend’. This hasn’t happened by accident. A carefully orchestrated campaign has evolved through the ‘Captain’s Cup’, video and photo ‘collateral’ and word-of-mouth – driven by social media. The Captain has a certain physical stance or  ‘pose’ and when an interpretation of that ‘pose’ was ’struck by a famous US NFL football star on the pitch during the Super-bowl, it took on a completely new iconic dimension. There followed a series of copycat ‘poses’ by a number of esteemed brand advocates, including David Letterman on his prime-time  TV show. Media-savvy Diageo capitalised on this by offering a $10,000 prize to famous people striking the pose in public places & at high-profile events, all building on the character of ‘The Captain’ and acting s a ‘viral’ growth driver for the ‘living legend’. It has proved a very cost-effective way of marketing.

As an aside, it is interesting to note that this type of ‘non-sponsorship’ could be classed as a more passive form of  ‘ambush marketing, which is actually very topical at the moment. In the South African World Cup this week (14th June), 2 Dutch women were arrested for ambush advertising and 36 women ejected from one of the stadiums when they were spotted wearing short orange dresses made by the Dutch brewery Bavaria, in conflict with  Anheuser-Busch’s Budweiser who are the official beer of the event. It led to quite a fuss and ITV media pundit Robbie Earle was sacked from his role when it was claimed by FIFA that he had sold tickets meant for family and friends on to the Dutch beer company.

Getting back to Diageo, another fine example of leveraging the new technology, has been the Smirnoff ‘be there’ media campaign built on a ‘viral’ marketing platform. Here young (25-30 yr old) party-goers were encouraged, via social networking sites like Twitter & Facebook, to provide ideas on their perfect party events – a party that they would remember for all time – to have ‘been there’. Diageo then picked the best ideas, provided funding to hold the event and a short video was shot at each which were then posted on YouTube. Here’s an example of a Smirnoff ‘Be There‘ TV advert. These have also proved a phenomenal success for Diageo at moderate expense – a terrific Return on Investment (ROI).

So, all in all, Diageo have shown great foresight in their on-line endeavours; an area that has worked well and is sure to be developed by them further across all of their brands. If companies want to stay ‘ahead of the game’ in an increasingly fragmented market, they need to embrace and adopt new ways of working and promoting themselves (and their brands), using creativity, flair and imagination. In this respect they could learn much from Diageo.

It also goes without saying, that in these recessionary times, where marketing budgets are being slashed, left, right and centre in huge cost-cutting exercises, the time and effort invested will also reap huge benefits in cost and greater ROI…..and will also work wonders for a brands’ ’street cred’   Why not get in touch and see how we could help you Contact Design Cognition OR, if you’re a more hands on person why not have a look at our forthcoming Branding and Shelf Impact training course.

Chris Penfold

EC Packaging Project Funding available

Later this year (July) it is expected that the EC will publish a call for proposals to support the packaging industry to find new ways of adding value to its products. Large companies (>250 employees) can receive a grant of 50% towards their costs whilst SMEs can receive grants up to 75%.  The European Commission is looking for proposals that produce packaging concepts exhibiting the following properties:

· superb barrier properties in terms of durability and protection capabilities utilizing e.g. nanocoatings or thin films for enhancing consumer safety and to extend the shelf life of packaged, perishable goods;

· smart features incorporating nanotechnology such as indicators, sensors, protection against counterfeit and tampering, product traceability indicators, interactive components or biometric components which can be added to packaging  using low cost printing technologies, such as roll-to-roll printing;

· utilisation of materials derived from a sustainable and renewable source, recyclability or biodegradability, and the applicability of resource-efficient (material, energy, water) package production processes.

Maybe you are part of a large corporation that has identified some opportunities but don’t have the finance or resource to take them forward  (e.g. a sustainability or technology project that has the potential to ‘add value’)
or on the other hand, you could be part of an academic institution, Knowledge Transfer Network or SME who has a technology that is looking for a ‘home’.

Either way – I am looking for opportunities to help match you up, build a ‘value case’ and try and get our hands on some of this funding. So if you are interested – please get in touch: enquiries@designcognition.com (putting ‘EC Funding’ in the title)

Chris Penfold

Den Kit packaging branding

Monday night saw the 2nd programme in the mini series High Street Dreams (8 programmes) on BBC1. The ‘reality TV show’ about product branding, packaging & design development. Over the series Jo Malone and Nick Leslau will help a number of individuals as they try to launch new products. From a packaging and design perspective, I don’t think that this week’s show was as good & fulfilling as the first, but still entertaining. The ‘guinea pigs’ included:

Primary school teachers from Shropshire – Jo Jones & Kay Miller who developed a ‘Den Kit’ – a fun and adventure product to help kids play & learn the old fashioned way! Good old ‘home farm’ values and fun!

Initially chopping trees down themselves in rural Shropshire to make ‘handmade’ wooden mallets, they proposed a huge retail price of  £40 per pack. However after visiting the annual Toy Fair where the average toy price was £6.70, they were forced to reconsider. Their mentor David Strang, an entrepreneur & leading toy manufacturer, emphasised the importance of  ‘eye catching’ packaging (good to hear!) which helped his own products increase sales by a factor of 25!

The ladies took this ‘on board’ and a “top graphic designer” was brought in to develop the branding, but I must say it left me disappointed. Although the typography was strong, with an ‘all over’ camouflage effect. Not sure that it had enough ’shelf stand-out, without any alluring photography or a means to view the products inside. But we didn’t have the benefit of a proper evaluation of competitor packs and ’sight’ of all packs on shelf together. Certainly if it had been our project we would have also considered other packaging options (rather than standard carton) to try and incorporate the above factors and try and add more consumer appeal, convenience & value.

The ladies did manage to get their costs down substantially by sourcing components from a brother in the Philippines. Enabling a revised price point of just under £30.

They christened their overarching brand as ‘Real Adventure’ & pitched to the MD Duncan Grant of the ‘Entertainer’ retail chain who was certainly ‘wavering’ and undecided on whether or not to stock the product. He loved the ‘down to earth’ product concept and I think that most of his concern was targeted at the packaging. He mentioned that the packaging  needed “more work” but did eventually give the ‘ go-ahead’ to try out the products in his 52 high street stores in the UK.

The revised Den Kit packaging

The kit contains: tarpaulin, groundsheet, handmade mallet, tent pegs, tent peg bag, 10m rope, metal mug, camouflage paint, webbing haversack & instructions

Since filming, Jo & Kay have certainly been busy and now have other products featured on their website which you can see here: Flibberty

You can follow them on Twitter: @DenKit

The second product featured on the programme was Nutriyum. Husband and wife, Paul and Maria Stricker quit their lucrative city jobs and invested their life savings (over £15K) to create Nutriyum – a healthy drink for young kids. Developing a drink that is both nutritious and tasty is tough enough, but they had just eight weeks to formulate a product in order to secure themselves a place on the highly competitive supermarket shelves. They enlisted the expertise of Ella’s Kitchen founder Paul Lindley and Little Dish’s Hillary Graves to help them focus, but sadly time was against them and despite bags of enthusiasm,  had failed to do their homework!!

The initial products offered by Paul & Maria were banana & strawberry flavours – but containing no fruit! The product was redeveloped within a matter of days from the previous synthetic mix into a chilled fresh fruit smoothie, which the couple were expecting to sell at the premium price of £1. Leslau affirmed the importance of pitching with a real product – NOT a prototype – something that we would strongly endorse. In our experience, retailers, buyers & marketers often find it difficult to visualise the ‘final product’, so it’s critical to get as close as possible with your product & packaging in any ’sales pitch’. Something that can be achieved quite easily these days with the ability to provide quick-turnaround physical mock-ups & realistic digitally printed artwork.

Leslau also emphasised the importance of gaining ’shelf space’ with retailers. I would also mention that stores sometimes measure profits in terms of the profit per length of shelving – which needs to be borne in mind in any pack design! Retailers need to be able to:

• Restrict their investment to the lines that will sell
• Buy in small quantities (keeping minimum stock)
• Buy goods that generate the highest levels of profit

Indeed we would emphasise the importance of meeting the business needs of all supply chain parties – suppliers, manufacturers, wholesalers, retailers & customers – all are interdependent.

Manufacturing was shown in more detail this week, as the young couple hired contract filling facilities to fill prototypes – at a cost of £5000 (+£1000 for materials) – only to come to the conclusion that they had been packed in an inappropriate packaging format (an expensive mistake to make and underlines the importance of thinking these things through properly and employing ‘experts’ to help from the outset – which can actually work out more cost-effective in the long run!)

The packs chosen for filling were Guala ’style’ ‘doy’ packs, commonly used on drinks like Lucozade, but would have presented the wrong ‘messages, cues & triggers’ for the ’single shot’ proposition intended. The branding agency chosen by Malone and Leslau were ‘Identica’ who (not surprisingly) struggled to find a fit with the brand name ‘Nutriyum’ and also with the overall pack proposition (considering that the product ingredients were synthetic but supposed to be healthy and appeal to young mothers). So there was a big ‘disconnect’ there. If more market research had been undertaken by the couple before developing their product/brand a totally different & more focused offering would have been achieved.

Ultimately, Paul & Maria realised their problem and simply ran out of time, so decided themselves to ‘bow out’ – a very brave decision considering the allure of retail endorsement and the TV PR coverage they would have gained for their new brand (despite that – they certainly got some good coverage anyway!). I feel that they made the right decision and will ‘live to fight another day’, once they’ve got it right.

As it happens, I undertook some research on the web today, and it does appear that the couple have been ‘beavering away’ in the background. Although the product is “not in the shops yet”, you can find out more about their endeavours on-line (link below). As a matter of interest Nutri-Yum does already appear to been trademarked by someone else (which wasn’t mentioned in the programme by anyone!)  Paul & Maria do seem to have taken ‘on-board’ the comments made in the programme and redeveloped their branding & packaging (and no-doubt the formulation also). In fact a completely different product offering! Certainly an improvement on what was shown on the TV – but probably in need of a bit more work. The brand name has been changed to ‘nyum‘. According to Wikipedia, this means “Swallowing in Catalan” – which I suppose is reasonably appropriately. However, a quick search on Google, pulls up a huge array of ‘nyum nyum’ activity & ‘noise’ – much of which seems to relate to eating BUT none of which relates to this new brand – so I feel that more work is needed there guys! You can see the latest offering on their website www.nyum.co.uk

We wish all parties featured in the programme every success with their products, but the big learnings for anyone in their position are:

• Include product development & design specialists from the start if you want success (we can give you a free consultation if you are unsure)!
• Make your mistakes early on in the process, before you’ve spent too much money
• Learn from your mistakes
• Don’t be afraid to ‘pull the plug’ if it doesn’t feel right!

Next week the High Street Dreams team will help two sets of partners market fashion products. If you want to watch last night’s programme again you can download it on i-player here: 17th May programme

Cheers

Chris Penfold

Mr Singh's new branding logo

A  new mini series High Street Dreams (8 programmes) kicked off on BBC1 last night that is a ‘reality TV show’ about product branding, packaging & design development – and very entertaining it was too. Over the series Jo Malone and Nick Leslau will help a number of individuals as they try to launch new products. Last night’s ‘guinea pigs’ included:

Mr Singh’s Chilli sauce (www.mrsinghssauce.co.uk) and Asian Singh family of 7 from East London who have developed a unique “dynamite” chilli sauce over a number of years and now want to “take on the world”. Having already developed their own packaging they were ‘knocking out’ 1000 bottles a day in their garden shed. However, after undertaken some market research on local doorsteps they redefined their key brand messages and with the help Pearlfisher, undertook a complete brand overhaul. Anyhow, it must have been successful because the conclusion was a trial in 3 London Asda stores and their website now lists a number of other independent stockists.

New Muddy Boots brand logo

Meanwhile, Roland & Miranda Ballard, the couple behind the gourmet ‘Aberdeen Angus’ burger range Muddy Boots Foods, worked with Blue Marlin. Together they revamped their vacuum packed burger range, which when showed to shoppers in it’s existing packaging, was described as “looking like dog food”. Anyhow, after development of  bespoke ‘windowed’ carton to show-off a tantalising view of the top-quality prime cuts, they managed to secure a trial in a few Waitrose stores (although Waitrose weren’t totally convinced of the merits of the small window). So top marks to all concerned! A good insight for those of you not involved in teh industry, on how a brand and packaging can be redeveloped & invigorated. You can find out more about Muddy Boots foods at (www.muddybootsfoods.co.uk). Both companies also have Twitter accounts (@mrsinghssauce & @muddybootsfoods ) and they both have Facebook accounts.

Next week the High Street Dreams team will help two sets of partners market children’s products. If you want to watch last night’s programme again you can download it on i-player here: 10th May programme

Cheers Chris Penfold

Great to see Unilever doing so well despite the current market conditions.  Just goes to show that it’s still possible to find new markets.

To read more follow the link to Cosmetics Design Europe

Design Cognition is proud to announce its partnership with a number of other successful healthcare New Product Development (NPD) companies in the Midlands to provide a ‘one stop shop’ service in consumer healthcare product development under the banner of ‘The Healthcare Development Partnership (HDP)’.

Collectively we are a group of highly skilled, experienced, like minded individuals and companies who have come together to offer a complete healthcare product development service.

As well as helping established companies redefine their market positioning, revamp and reinvigorate their product ranges, we will help new healthcare businesses overcome difficult first hurdles, bringing together all of the necessary resources under one ‘umbrella’ to get to market ‘at pace’ and ‘right first time’.

As well as continuing to run our own thriving businesses, as founding partners we all bring significant blue-chip corporate experience, having developed and launched hundreds of successful branded consumer healthcare products across the world. So Design Cognition will continue to provide the first-rate service to which you’ve all become accustomed, but now as a partnership we can build on that and together offer you so much more.

The enhanced services that we collectively offer span all aspects of product development, including strategy development, product formulation, packaging development, clinical development, medical and regulatory affairs, technology sourcing and product licensing. These services are underpinned by world class project management capabilities.”

Clients can utilise all the resources that The HDP offer or just access a specific area of our capabilities. Whatever your requirements, a project leader will provide single-point contact and co-ordinate all project activity. As part of The HDP we all combine depth and breadth of knowledge with a passion for healthcare, giving our clients tailored solutions and an integrated, seamless service.

If you’d like to find out more visit or new website www.the-hdp.com  or drop me an email via chris@the-hdp.com

Top10Tips.co.uk logo

One thing that I forgot to mention in today’s earlier post was that if you’d like a text version of our Top 10 packaging Tips, don’t forget that Design Cognition have teamed-up with Top10Tips.co.uk to provide support to small businesses. So our Packaging tips can be found there by following this link to the top10Tips.co.uk website:

Written version of the Top 10 Packaging Tips

Alternatively we can send you a PDF version if you drop us an email to enquiries@designcognition.com

The Top10Tips.co.uk website also provides a wide range of other resources for Small to Medium sized Enterprises (SMEs) covering all sorts of areas pertinent to a business start-up, including the following:

* Packaging Design
* Search Engine Optimisation
* How to Choose a Marketing Mentor
* Strategic Marketing for Start-Ups
* Brochure Writing
* Social Responsibility for Small Business
* Brochure Design
* Email Stationery Design
* Marketing your Small Business

So check out the Top10Tips.co.uk website for further excellent information from a range of great contributors. Cheers Chris

The following initiative by Proctor & Gamble sounds like a great means to “drive scale, improve R&D productivity and accelerate the delivery of new products to market”. Integrating the virtual and digital design capabilities and virtual test capabilities of future packaging and artwork projects in an integrated manner makes sense, should elevate P&G from ‘best-in-class’ for ’stand alone’ systems to ‘world-class’ global integrated solution – but easier said than done.

A range of P&G FMCG products

Implementing enterprise-wide product life-cycle management processes on this scale is a mammoth task. However, by taking a stepwise approach, planned properly as part of an e-Business strategy (dovetailed within an overall corporate strategy) P&Gs chance of success will be much greater. Identification of any barriers (cultural or otherwise) and development / implementation of a ‘game plan’ to deal with these will raise the chances of success even higher. Chris Penfold

P&G Incorporates Global Packaging and Artwork initiatives

Procter & Gamble (Cincinnati, Ohio) is extending the scope of its V6 PLM implementation to incorporate global packaging and artwork initiatives with the help of Dassault Systemes (France). This builds on the previously announced strategic selection of DS solutions for an enterprise-wide product life-cycle management process. Together, Dassault Systemes and P&G are developing a highly integrated suite of products to help make the packaging process more efficient, improve speed to market, increase shelf impact, and ultimately create a better experience for consumers. Streamlining these services is another example of how DS is supporting P&G’s focus on “Simplify, Scale & Execute” which is one of the company’s key growth strategies.

“As P&G continues to serve more consumers, in more parts of the world, more completely, it is essential we have the right tools in place to drive greater efficiency,” says Michael Telljohann, PLM director, P&G. “To address these opportunities as they arise, it’s imperative that mission critical business processes like artwork and packaging move from a series of best-in-class point solutions to enterprise-wide integrated solutions. Dassault Systèmes’ suite of V6 PLM products will help P&G drive scale, improve R&D productivity and accelerate the delivery of new products to market.”

Via http://PMPNews.com 17th Feb 2010.

You can read the full article by clicking: P&G PLM implementation article

As we hurtle towards the end of January (already you say????) it is time to focus the mind again on packaging legislation.

We are routinely coming across pharma companies (small & large) who just don’t keep up with or monitor changes in packaging legislation, that will have a major impact on their businesses.

A good example is Braille legislation which is now MANDATORY for ALL pharma packs sold in Europe and has to be in place (i.e. on packs on the market) within the next 7 MONTHS.

As a consequence of non-compliance, an estimated 20% of pharma companies could have their products de-listed and taken off the market. So why do companies ignore it?

The following link will take you to a very interesting and comprehensive article on the European Pharmaceutical Manufacturer (EPM) magazine website: Braille labelling on medicines packaging

This article will give you some good tips on how to ensure that you comply and a summary of it has been printed in the latest version of the EPM printed magazine. Chris Penfold