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Moving up the packaging partnering pyramid

Trends in packaging create special challenges that consumer packaged goods companies can’t ignore.

Pw 7832 Tham Photo Sep2007

Here, for example, are six ongoing developments you should have on your radar screen:
• Branding, brand partnerships, and co-branding
• SKU proliferation—mixed-product groupings and convenience packs driven by retailer demand push this trend at a brisk pace
• Packaging as an extension of customer desires
• Compressed lead times
• Cost pressures from the ever-increasing competition, consolidation, and global impacts
• The “big box” effects from the likes of Costco and Sam’s Club

To be successful against this backdrop of trends, brand managers must bring innovative packaging designs to market rapidly and at low costs. Among the resources to leverage are contract packagers, whose key value proposition—if they’re properly managed—is that they are flexible yet affordable.

What leads to mutual success for both the CPG company and the contract packager? First, start a successful packaging strategy by developing partnerships with key players that relate to packaging. This includes brand managers, contract packagers, logistics providers, technology providers, printers/converters, suppliers, labor agencies, retailers, and carriers.

Second, be constantly aware of the Packaging Partnering Pyramid (PPP). The PPP consists of a pyramid. At its base is “tactical partnering.” One step up is “consistent partnering.” Going higher, the next level is “strategic partnering.” At the peak of the pyramid is “integrated partnering.”

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