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Research helps you "know thy customer"

Mark Spaulding: Editor in Chief -- Converting Magazine, 9/1/2003

Last month, I presented some stats from the new study, "Packaging 2003: Directional Trends Report," on top business challenges for converters. Knowing what you're up against in your own business is one thing, but knowing where your customer stands on issues affecting them is equally important.

For the 3,500 professionals at consumer-product companies (CPCs) surveyed by New York-based TrendWatch Graphic Arts, "national economic conditions" top the list of challenges to be faced in the next 12 months—surprise, surprise, just like converters. About half the respondents noted "reducing internal costs," while about a third said "finding qualified employees" and dealing with "government regulations" are their top challenges.

Not surprisingly, pharmaceutical CPCs ranked "government regulations" as equally tough as the economy. They were also most concerned with cost cutting compared to packagers of foods/ beverages or household products. The makers of laundry detergent and glass cleaners, on the other hand, were most challenged (three-quarters of respondents) by the economy because, perhaps, when you lose your job you still have to eat but you don't have to spend as much cleaning up.

These umbrella business issues aside, the TrendWatch survey delves deeply into what CPCs think about package design and converting. "Getting approval for new packaging" and "understanding what our packaging strategy should be in the future" weigh heavily on at least a third of the CPCs responding—no matter what they make and package. "Managing all the sizes and varieties of packaging needed to meet consumer demands" is a challenge to only slightly fewer of your customers.

Three out of 10 CPCs foresee work ahead with the "demands created by an increasing number of SKUs"—each one needing its own unique package. And "responding to competitive innovations in packaging" are a challenge to one-fifth of respondents—should they get into standup pouches or maybe use full-body shrink labels?

Converters profiled in this month's features are already hard at work responding to these and other issues facing their CPC customers. The Mequon, WI-based Display Group of Menasha Packaging helps buyers of POP displays and multicolor boxes meet tight deadlines and the sales opportunity of JIT packaging via flatbed ink-jet printing. Using digital CTP plates, Spanish metal printer Grafilac SA keeps quality high and turnaround time low for offset printing of luxury liquor canisters—thus reducing costs. And KDV Label, Waukesha, WI, and its stable of 14 presses answer the CPC call for managing the labels on a myriad SKUs.

The Directional Trends study of consumer-packaging companies covers many other factors such as sales opportunities, planned investments, packaging types and print processes used, as well as how package design is handled.

Check out the report at the TrendWatch Graphic Arts eStore. Go online to:

www.trendwatchgraphicarts.com/reports_2003/pack2_cm.html

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