Packaging as a Cornerstone of Retail Evolution; enabled by CUSTOMPrint+

Typical Big Box CPG

Team Structure

Team Leader

Director:

Sales

National Account

Manager

Sales Analyst

Director:

Category

Management

Shopper Insights

Manager Category Manager

Category Analyst

Director:

Marketing

Marketing Research

Manager

Trade Promotions

Manager

Director:

Supply

Chain

Supply Chain

Manager

Supply Chain

Analyst

Director:

Finance

Admin. Asst.

CPGs Thinking Like Startups

Rise of Retail

Micromarketing

Walmart - Marketing department thinking like IT key to managing the business

Target - Obviously marketing has always been key to the business

SAM’S CLUB - Membership data mining more critical

CVS - ExtraCare requires closer interaction with marketing team

Retailers Where This Plays a Vital Role:

“The amount of change in marketing over the past 3 – 5 years probably equals the amount of change over the past 30 years.”

- Robert Liodice, CEO, Association of National Advertisers

PRESENT PAST FUTURE EVOLUTION

Evolution of

the Practice

Resources

Measurement

Cornerstone “Fact-Based Selling” Category Measurement Insight Management

Data Information Ranked Information

Relationships Technology Human Capital

Evolution of

the Practice

[The Zero Moment of Truth is] a new decision-making moment that takes place

a hundred million times a day on mobile phones, laptops and wired devices of

all kinds. It’s a moment where marketing happens, where information happens,

and where consumers make choices that affect the success and failure of

nearly every brand in the world. *

Evolution of

the Practice

Retail Evolution

Supplier power

Distribution

Retailer power

Negotiation

Shopper power

Information

Shopping transformation

Retail 1.0 Retail 2.0 Retail 3.0

Retail Evolution

Retail Evolution

Slide graphics courtesy of Milo - http://milo.com/blog/mobile-warming-hot-trends-in-mcommerce/?display=wide

Smart Phone Growth

& Shopper Influence

Changing Packaging

Interactions

• Mobile barcode scanning TRIPLES on Black Friday

• Paypal cites 310% increase in mobile shopping on Black Friday

• 73% of mobile users prefer to use their smartphones for simple tasks rather than interact with an employee

Sources: MobileMarketer, Paypal, Accenture

Augmenting

Retail Reality

Group Clout

The Consumer

Purchase Decisions

75% of purchase decisions are made inside the store…not ahead of time.

Stephen Quinn Wal-Mart CMO BBV Champion University

“Core” Groups

Brand Aspirationals

Value-Price Shoppers

Price-Sensitive Affluents

Consumer

Segmentation

“Buzz” “Jill” “Ray” “Barry”

Consumer

Segmentation

Urban Trendsetters

Micromarketing

Leadership

Consumer Insights

Competition

Strategic Financial Planning

Modular (Shelf Set/Planogram/Package)

Promotion

Item P&L

Speed

WAL-MART BUSINESS

LEADERSHIP MODEL

Beyond the 4 P’s

Micromarketing

Leadership

Beyond the 4 P’s

The Package

Affinity Marketing

Tailor your products for each store?

Match preferences to local store demographics?

Support the local causes shoppers care about?

Utilizing “best in class” micromarketing tools, what if you could:

Affinity Marketing

Would shoppers feel that your brand is the

preferred one for them?

What would that do for your sales ?

For your profits?

Affinity Marketing

Some companies are already doing that:

Retail-Ready Personalized Packaging (RRPP)

• Customized down to neighborhood store

level

• Aligned with shopper interests, driving brand

loyalty and purchase

• Produced through continuous-process

technology, eliminating the need for costly

factory-line changeovers

Unlimited Messaging

Potential

Example – Heinz Ketchup

Measurable

Response

Short-Run Campaigns

Mobilized Demographic –

Save Consumers Keystrokes

Cross-Merch & Direct Mail

Overcome Rampant Theft

and “Gaming” of System

Future CPG Packaging

Environment

Database

Case to Pallet Tracking

Variable Digital Print

Variable-Content, Unit-Specific Tracking

Unit to Case Tracking

Future CPG Packaging

Environment

Packaging to Digital Examples

Embrace social media

Embrace mobile delivery of content as an extension of the package

Tie-in with micromarketing tools to customize relevant packaging

Collaborate between operations and sales/marketing

Create retail partnership touch points in the digital space

Don’t be afraid of transparency in a digital world – create a digital

ecosystem

Low-Hanging

Fruit

Digital Ecosystem

Thank You!

To learn more contact:

i. Joe Hattrup – President & CEO

Joe.Hattrup@fastechgroup.com

iii. Dave Carlos – VP Sales

dcarlos@fastechgroup.com

Bill Akins

SVP Rockfish

479.790.3292

bill.akins@rockfishdigital.com