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More: State of Packaging 2010

By: Jeff Falk
Posted: September 1, 2010, from the September 2010 issue of GCI Magazine.

page 3 of 11

DiPietro: Fortunately, we haven’t seen a reduction in the use of our special effect pigments in existing products. But, there’s no doubt that brand owners and designers have been required to do more with less. And, since beauty packaging is often designed to reflect a premium product, the challenge is how to create a luxurious package within new budget constraints.

One of the most affordable and easiest ways to innovate is through new color schemes. A brand can refresh its packaging without making changes to the structural design of a package or added manufacturing costs. DayGlo devotes significant resources to our R&D program to develop new and improved colors that make a significant impact on the shelf. This enables us to offer companies new options for package design, even during a down economy. In fact, we will be launching a series of new products within the year that allow brands to continue to innovate with color.

Another way we’ve responded is with the recent introduction of the Brand Action Team, which includes DayGlo’s marketing, business development and technical experts. Working with brand owners, designers and suppliers from concept to production, the team helps implement brand-building color across consumer touch points.

Bakic: We did not experience shifts to lower cost packaging due to the crisis, but the need to purchase lower minimum order quantities. To reduce the risk of fixed capital, many partners asked for lower order quantities. We responded to this need by setting-up a more flexible supply chain where smaller quantities can be ordered and where reorders can be processed faster than in the past to overcome out of stock situations for our customers.

Izquierdo: From the conversations we’ve had with brand owners, we know that budget cuts forced a lot of companies to examine their product portfolio and find ways to make manufacturing lines more efficient and simplify packaging. Taking this step can be a win-win situation for both company economics and the environment.