The Top Five Benefits of Outsourcing Your Packaging Strategy

August 19, 2019 Brand Packaging, Logistics, Loyalty6 Minutes

Logistics

The outsourcing of branding and promotions to marketing agencies for a brand is not a new strategy. It has been a proven practice since agencies opened their doors. At the same time, there are branding strategies that are always changing, so there is a steady learning curve to keep up with. Competing brands and the ever-changing demands of consumers challenge in-house teams to stay on top with new trends while maintaining day-to-day work, and has created the perfect storm of requirements. Nowhere is this more recognized than with packaging.

Consumer demands for packaging change often, especially when they require seasonal designs, more versatile uses, product variety, convenience, GWP, a more eco approach, and product protection. Since packaging is as important as every other element of a brand (arguably a top 3 priority), these ever-changing demands impact every packaging brief, at least they should.

In-House Pain Points

As one of the only physical touchpoints consumers have with a brand, and as consumers grow more averse to talking to real people or asking for help in stores, packaging has become more relevant than ever. These trends have made it hard for in-house marketing departments (and those stand-alone marketing agencies) to keep up the juggling act. Packaging demands are simply changing too fast and becoming more prevalent in consumer purchasing decisions. Those demands are more than the logo, a brand voice, or attribute call-outs, this also means meeting packaging regulations, material, and shipping cost projections, and accessibility to the machinery that makes the packaging, not to mention the right assembly and quality controls and getting them delivered on time to the right distribution centers

Mental and financial resources are tight in business. Businesses may see the opportunity to design a new category or put a product in to fill a gap or new customer demand, but the company is not structured efficiently to capitalize. They might prefer to source the product directly, but there are no custom-ready solutions. It takes time and work to deliver a customized “only available at” product, but who has time to do that when executing the current business plan? There are frictions – working with brand standards, legal approvals, and logistics systems that are hard to navigate. In the end, it’s a great idea, but too complicated to execute.

Operational costs, space limitations, additional labor costs, and logistical planning are all financial and time-management expenses most businesses cannot afford to take on in-house.

The Benefits of Outsourcing

This is why outsourcing, especially with unique SKU development, custom packaging, seasonal packaging, and new product or loyalty kits, has become a must for a wide range of businesses to keep up with growing customer demand and stay ahead of the competition.

“A third-party product management (3PPM) provider is an extension of your business,” Vivabox COO, Peter Allen, said. “It manages anywhere from a single SKU to an entire product line of a company’s portfolio and executes product design, creative development, sourcing, manufacturing, and shipping into your distribution centers. You get to focus on the marketing and selling activities, and the rest is taken care of for you by the 3PPM.”

 Allen has collaborated with several companies who struggle with in-house packaging. For most, the packaging is an animal they simply cannot tame because it requires several moving parts that cost time and money. When a packaging company is a 3PPM provider, the sole focus is building the best packaging solutions for the brand. It has the knowledge a packaging company should have, which allows companies to focus more on what they do best for their brand and leave the packaging logistics to the experts.

Here are the top 5 benefits companies experience when working with a 3PPM packaging provider, like Vivabox:

  1. We help lower costs of product acquisition and design, and we can rapidly respond to changing trends in the industry.

  2. We can help with a single SKU, or we can build entire categories for your brand.

  3. We become an extension of your business, supporting you with account managers that learn how your business executes and tailors our process to meet your requirements.

  4. We work with your teams—creative, marketing, finance, operations, and legal to make the process seamless—saving an average of 9 hours per person, per month involved in the project on the client-side

  5. We align with your business and bring you expertise from outside and inside your category to help you see new opportunities.

If you find yourself in a position where you would greatly benefit from a 3PPM, but you are not sure where to begin, Vivabox Solutions can help. We have the capabilities to fill multiple roles in your business. We take concepts and bring them to life with creative strategies, all the way to building and delivering that product concept to you and serving it up for you to sell.

Learn more by contacting Vivabox.

Looking for a solution? We can help.

Headquarters

9211 Corporate Blvd Ste 110
Rockville MD 20850

Satellite Offices

Dallas, TX
Paris, France
San Francisco, CA
Scottsdale, AZ

Email

info@vivaboxsolutions.com

Phone

+1.212.652.2024

Minimum Order Quantities:
RPET Totes: 3,000
Kraft Shoppers: 5,000
Rigid Boxes: 3,000
Folding Cartons: 5,000

ShopTalk 2019. The 10 Things Impacting Your Business Today & Tomorrow. VBX 2-Min Summary.

March 8, 2019 Creative, Logistics, Retail Kits2 Minutes

Logistics

The engaging themes (scientific data point of most attendees and most number of mobile phones aimed at speakers and slides) at Shoptalk Las Vegas this past week were: accelerated change, AI, AR & VR-assisted experiences, influencer marketing, and the role of IRL store associates.

Our summary:

  1. Shopping should be fun & social (literally and via mobile).

  2. Buying should be easy.

  3. Corporate silos need to make way for the pure fluidity of IRL —> Digital that consumers move through on their self-guided journeys to conversion and potentially, loyalty.

  4. Caution Inhibits Innovation.

  5. Hone a physical retail competency that creates moments worth lingering for.

  6. The mobile screen is your new window display.

  7. Change the metabolic rate of your company (esp. senior leaders)

  8. Make Influencer and digital activations part of the product development process – not so late in the game. We call it the new marketing supply chain.

  9. From Erik Nordstrom to Barney’s and Crate & Barrel executives, there was a light shone on the changing role of physical stores and the store associates inside. There was recognition that physical stores are a convenient (or at least can be) place to manage returns and for in-store pickup that puts CX front and center. Recognizing that means looking at the ways associates are trained and incented because this is a critical moment for consumers and can engender real loyalty. Additionally, it means (in our opinion) looking at attribution differently – for example, Nordstrom shared that 50% of their store visits begin online.

  10. We’re struck by the efficacy of a high-concept custom box/bag kit to help bridge the shopping & buying divide. Like retailers and brands, we are leaning into smart packaging to make these experiences even more interesting for the consumers and to reveal new first-party data.

    Vivabox works with CPG, Beauty, Mass, Specialty, Club, and Drug and in every category, the right trial, education, loyalty, and influencer box respects the privileged role of being in someone’s hands and home. Now that’s a brand experience worth sharing, talking about, and remembering.

Looking for a solution? We can help.

Headquarters

9211 Corporate Blvd Ste 110
Rockville MD 20850

Satellite Offices

Dallas, TX
Paris, France
San Francisco, CA
Scottsdale, AZ

Email

info@vivaboxsolutions.com

Phone

+1.212.652.2024

Minimum Order Quantities:
RPET Totes: 3,000
Kraft Shoppers: 5,000
Rigid Boxes: 3,000
Folding Cartons: 5,000

5 Retail Trends You Can Actually Activate for 2019

January 8, 2019 Brand Packaging, Logistics, Loyalty7 Minutes

Logistics

In 2019, the market will be defined by emerging technologies that change the way consumers interact with their favorite brands, a more tangible experience (online and on-site), and the emergence of new types of e-commerce.

Let’s take a look at five important trends that will shape retail in 2019 and forward.

1. Brand as Culture

Millennials’ changing preferences and attitudes regarding corporate responsibility and social consciousness have already impacted how retail brands present and position themselves. The trend has resulted in brands equating their internal culture with their exterior identity. Companies are increasingly engaging consumers outside of traditional shopping parameters and becoming cultural figures.

What ideas can you bring to market if you think of physical intercepts as a cultural representation of the connection you have with your consumers vs “buy it now”

Companies can embrace physical and ideological experiences that immerse customers into a full buyer’s cycle. The days of clever campaigns being enough are pretty much done. Companies will have to consider the image their brand conveys to the world in ethos, all senses, and in packaging (which are blending more than ever).

2. Experiential Retail

The old model of in-store and online retail strictly focused on products being sold. However, consumers have been moving away from strictly shopping for products and are now searching for a more engaging experience. The trend has been primarily driven by millennials and their preference for experiences over things.

Consumers are shopping more with their emotions rather than their wallets. Note, we said shopping. Physically walking into a store should be an escape, a chance to browse, a chance to meander. Buying, on the other hand, is assumed to be pretty quick and easy — a few clicks, done.

Re-designed signage and remodeling a store aren’t enough, both the stores and the brands now realize they can only survive if they create something worth visiting.

For example, stores like Sephora have rethought their retail experiences by combining traditional elements, trial, loyalty programs, and their mobile apps pretty seamlessly. (they’re a client, we’re biased)

Samsung unveiled a $43 million “pop-up” that features its products but doesn’t have any for sale.

The emergence of virtual reality, augmented reality, and improved mobile connectivity have added new layers of experience to add to their retail models.

Packaging for online and on-site stores has also emerged as an essential experiential touchpoint. Gone are the days of brown boxes with packaging tape, bubble wrap, and packing peanuts as “the last mile experience.“

Consumers want their packaging to mean something more. To mean something, actually. Colors, fonts, textures, and materials are all a selling point, as well as its ability to be recycled or repurposed. It’s almost as important as the product it holds.

3. Faster Shipping

E-commerce continues its march toward becoming the most popular purchasing medium. In September 2018 the sector expanded by 11.4%. Today, most major brands have an online presence, and they all offer comparable prices. Even stores like Amazon and Walmart have become largely competitive, so retailers seeking to differentiate themselves have had to find other ways to deliver value.

A current Marketing Charts study found that the amount of time people are willing to wait for free shipping has dropped from 5.5 days in 2012 to 4.5 days on average. Programs like Amazon Prime have made two-day shipping the standard, so cutting down on shipping time is vital for any e-commerce business looking to stay on top.

In-store pick-up, new delivery systems, special access, or making the package worth waiting for are all ways to combat warp speed expectations.

4. Subscription E-Commerce

Today’s buyers are also increasingly seeking shopping/buying that is tailored to their preferences and delivered directly to their doors. These trends have resulted in the emergence of subscription e-commerce, which means businesses curate products and ship them to customers with regularity.

According to a recent report by McKinsey & Company, 15% of online consumers signed up for subscription services in 2017, and that trend is only growing.

That said, marketing and maintaining a subscription base can be expensive for some brands and retailers. This is an area where a well-defined test is a must.

5. Multi-Channel, aka Omnichannel, aka The Way Consumers Shop & Buy Naturally in 2019

Even though many brick-and-mortar stores are closing, they still play a significant role in the purchase process. The difference is that it has transitioned from the primary point of sales to being part of a broader retail strategy. Instead of a single touchpoint for consumers, the growing trend in retail has been to expand how brands use brick-and-mortar to catch leads and convert them.

How can retailers maintain omnichannel active and keep personalization and fulfillment streamlined?

This calls for deep integration across all channels, including websites, marketplaces, social media, and brick-and-mortar. It’s time to get departments really working together, and sharing data, and thinking differently about sales attribution. The consumer is already fluid, but most retailers and brands are less so.

Multi-channel is vital for captivating consumers and keeping them engaged from first impressions to the point of sale. Focusing on providing excellent experiences across channels is the best way to stay vital in the upcoming years. Oh how we love a good CX strategy.

The latest trends in retail are driven by a combination of a changing technological landscape and the shifting preferences of consumers created by millennials. By embracing these trends and preparing for them, retailers can look to 2019 as another favorable opportunity to grow.

Looking for a solution? We can help.

Headquarters

9211 Corporate Blvd Ste 110
Rockville MD 20850

Satellite Offices

Dallas, TX
Paris, France
San Francisco, CA
Scottsdale, AZ

Email

info@vivaboxsolutions.com

Phone

+1.212.652.2024

Minimum Order Quantities:
RPET Totes: 3,000
Kraft Shoppers: 5,000
Rigid Boxes: 3,000
Folding Cartons: 5,000