Package Development Guidance for New Product Entrepreneurs

There is a vast amount of information in the world of Package Development concerning the successes of package innovation and implementation in mid-size and large companies.  These companies generally have significant internal technical knowledge and resources to efficiently guide them through the package development and implementation process.  The projects result in trade journal articles which serve as examples for others to use as food for thought on how they address their own new product developments.

However, very little published information addresses the needs of new product entrepreneurial ventures.  Generally, these entrepreneurial ventures do not have the technical knowledge to develop packaging or established internal staffing to do so.

Based on experience working with entrepreneurial ventures, the majority of time and money is spent on developing the product and marketing strategies/plans, without a clear understanding of the process, timing, and technical understanding of everything required to be successful when developing the packaging.

Even if the packaging is being addressed by an entrepreneur during the development of the product, frequently their developmental activities do not follow an ideal process flow to result in maximum efficiency and consumer impact while minimizing cost and timing to implement.  Simply stated, most new product entrepreneurs do not have experience with the package development process, the time required and ways to minimize costs to develop a package for production readiness.  Consequently, they often are delayed in launching products or do so with inadequate packaging.  This can have several negative impacts; 1) putting all their capital invested to date at risk by not meeting a launch schedule (e.g. not generating revenue and profit as quickly as possible to begin recovering their investment), 2) not being first in the market with an innovative new product, 3) launching a package which is not successful in terms of product protection and/or consumer acceptability and 4) worst case, having to abandon their great new idea completely.

Package development cannot be a secondary developmental effort in developing a product.  It is usually not considered a core competency in these organizations, but it must be a “core” concern.  Successful package development must be a parallel activity with the development of the product to assure the best packaging is developed to successfully launch the product on schedule.  As the product idea is being defined, packaging concepts should be considered as part of the development process during the transition from product innovation to final product design/formulation.

There is a wealth of information published to assist in the development of packaging for new products.  This information can be difficult to understand and implement by those not trained as packaging professionals.  Listed below is an extremely condensed summary of the events which need to be addressed and the sequence required to perform them in order to be to be successful in developing product packaging:

  1. Write an operational definition for the packaging describing everything the package must incorporate as well as everything you would likeit to incorporate (realizing incorporating everything may not be technically feasible and/or cost effective).  Think in terms of what the package must provide rather than what you want it to look like at this point in time.  This should be developed incorporating Marketing, Product Development, Engineering, Manufacturing, Supply Chain and Package Development input to assure all needs are addressed as early and efficiently as possible.  It should include consideration of the following, though all may not apply to any specific target product.  As the product development progresses, other issues, needs or concerns may cause the operational definition to be updated, but the sooner it is finalized, the faster you can develop the package designs:
    1. Primary Packaging for each product selling unit:
      • Package Cost Target for product P&L for all packaging components
      • Timing required for completion
      • Product Protection Requirements (in the Supply Chain and up to use by the consumer)
      • Consumer Requirements (opening, product use, product dispensing, etc.)
      • Product Branding/Information Requirements (artwork)
      • Product Visibility (if advantageous)
      • Technology Capabilities/Limitations
      • Trade (customer) Requirements (identifying and stocking)
      • Legal Requirements (information, warnings, material identification, etc)
      • Bar Code Requirements
      • Special Environmental/Temperature Restrictions
      • Packaging production processes required and location (internal or contract manufacturer)
      • Sustainability/Environmental considerations
    2. Secondary Packaging (if necessary) to consolidate several Primary Packages into intermediate units for packing in Tertiary (shipping) packaging (often used to transfer product from receiving to stocking point in a store):
      • Product Protection
      • Trade/Customer Requirements (identifying and stocking)
      • Product Branding/Information Requirements (artwork)
      • Legal Requirements (information, warnings, material identification, etc)
      • Bar Code Requirements
      • Special Environmental/Temperature Restrictions
      • Packaging production processes required and location (internal or contract manufacturer)
      • Sustainability/Environmental considerations
    3. Tertiary Packaging required for distribution of the product through the Supply Chain to reach its final destination for sale or use.  This is most commonly a corrugated shipping container:
      • Product Protection
      • Trade/Customer Requirements (receiving, identifying and stocking)
      • Product Branding/Information Requirements (artwork)
      • Legal Requirements (information, warnings, material identification, etc)
      • Bar Code Requirements
      • Special Environmental/Temperature Restrictions
      • Packaging production processes required and location (internal or contract manufacturer)
      • Sustainability/Environmental considerations
  2. Begin to explore concepts to meet the requirements (musts and likes) based on the operational definition of the package.  This may be a relatively simple exercise if there is an industry standard type of packaging for your new product.  However, if your product is truly a breakthrough innovation, this exercise can be quite extensive and require significant package developmental experience.
  3. Develop a structural prototype(s) of the desired concept to determine feasibility, cost and consumer use testing (if needed).  Conduct “Proof of Principles” testing on any new packaging processes which may be required.  Revise the structural design as necessary to meet the operational definition or satisfy any compromises that have been made based on feedback from any of the involved functions.
  4. Develop artwork concepts based on structural concepts, but they cannot be finalized until the package structure and final drawings of all components are approved.
  5. Develop concepts and sizing for secondary and tertiary designs, but cannot be finalized until the primary package is approved.
  6. Determine production methods and locations for the concept packaging.
  7. Finalize Primary, Secondary and Tertiary Package structural designs based on the results of distribution tests to confirm success in the Supply Chain
  8. Finalize Primary Package artwork and market test with consumers (if needed).
  9. Finalize Secondary and Tertiary artwork.
  10. Perform packaging plant trials to confirm all packaging processes.
  11. Begin production and launch product.

Ultimately, innovative new products are successful based on their performance when used by a consumer.  This customer satisfaction will generate repeat sales and brand loyalty.  However, you have to sell the product first.  Successful development of packaging will generate first purchase interest and deliver the product to the consumer intact and ready for use.  Do not jeopardize new product launches by underestimating the importance of focusing on the development of packaging in parallel with the development of the product.

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Robert C Collins II, CPP/MH is the President of Global Packaging Optimization LLC, an organizational improvement and technical consultancy; Phone 781-635-7914 or email rcc2@GPOpt.com