Down to the Bones

Every year the same target gets flashed around ' How do you cut the costs ' and ' Who can show maximum savings '. The challenge of cost savings is a like a double edged sword, as all the cost savings come with the additional rider of no loss in perceived value for the consumer.

Very often the Packaging team runs into a dead-end as their costs are down to the bones and any reduction perhaps may start impacting the overall feel.

In such a scenario one has to follow a two pronged strategy, firstly , examine an approach where there is a deliberate change in the visual feel for the consumer through a cheaper input material, in effect a some kind of design change which reduces costs and adds a fresh new feel for the Packaging. The second approach is the more daring one......accept the perceived value loss. Here one can work out the stages, the change which impacts the least on the perceived value loss perhaps could be examined the first for the implementation.

The fact remains that the consumers buy the Brand first and foremost for the product and some downgradation on the packaging which does not impact the product quality when bought, in use, or the shelf life, is unlikely to impact the consumer behaviour.

However the best strategy that one could follow is that to keep a look out for the developments which are likely to give a cost reduction and keep examining if these developments provide any synergy for your Brands. The best sources are offcourse the current vendors or their competitors. Some companies have this annual event wherein they invite all vendors for a display of their developments and innovations. This affair ensures a very open discussion around developments and the possibilities that they offer.

The problem is indeed a complicated one , if your costs are already down to the bone and hence a lot of creative problem solving needs to be looked into to arrive at possible solutions.