Packaging is key to product innovation

Product innovation is high on major brand agendas for 2008 and much of that innovation will come through packaging, according to the easyFairs Packaging Report.

The easyFairs Packaging Report is produced by the organiser of the Packaging Innovations show, which takes place at the NEC, Birmingham, on 12-13 March.

The study of 248 new product development specialists and marketers working with leading consumer and business brands, shows a community in a bullish mood with 55 per cent planning to move or extend their brands into new product areas, 64 per cent set to launch a major new product for an existing market and a third planning a new product for a completely new market in 2008.

Not surprisingly, this ambitious schedule is having a major knock-on effect on marketing plans, with most areas of the mix set to receive greater budgets - 43 per cent plan to spend more on promotions, 36 per cent will increase their advertising budgets while PR and online marketing are going to player a greater role for one in four.

However, it is in the area of packaging where the biggest changes are set to be made, with 53 per cent saying their packaging spend will increase over the next 12 months.

These increases are because major brand owners admit their ability to innovate with their products is inextricably linked to their ability to harness new packaging concepts.

Indeed, of the brand managers, packaging technologists, product development experts and marketers studied, 74 per cent say packaging is integral to new product development, 30 per cent say packaging forms the bulk of their innovation while over half say it is a quick and cost-effective way to innovate.

There are many high-profile examples of packaging concepts that have spawned completely new products and categories - from microwaveable packaging's impact on ready meals, and controlled or modified atmosphere packaging's role in the chilled foods sector right through to the widget used in beer cans.

However, what the easyFairs study shows is how this level of packaging innovation now has to be the norm for major brands if they are to stay ahead.

Peter Heath, managing director of easyFairs UK, commented: "In the old days new packaging ideas and concepts used to come along every now and then; when they did they would herald the start of a new category or a major new direction for a product.

"But today, new product developers and marketers are under such immense pressure to innovate regularly that they now have to be constantly on the look-out for the next big thing and their packaging strategy has to be razor sharp.

"They simply cannot afford to be outsmarted by a competitor in the packaging stakes.

"That's why our packaging innovations show has grown so fast - when we launched our first show in the UK three years ago it attracted a healthy 107 exhibitors; in March more than 330 companies will show at the NEC".

One area brands are trying to get to grips with is environmental packaging.

A more sustainable packaging strategy offers real commercial benefits in terms of reduced materials usage and waste.

However, marketers and innovators working with major brands also recognise it offers them the opportunity to grab some all-important differentiation from competitors - the dominant innovation driver for 59 per cent of those studied.

Indeed improving environmental performance has superseded retailer pressure in terms of its influence on innovation plans.

Heath said: "People just aren't sure which way to go; they know it's a growing issue and they are nervous that a competitor may outsmart them in this sphere - equally they don't want to do something that smacks of tokenism.

"Environmental packaging is an area where there's real scope to steal a march on your competition or be left behind".

To help new product development specialists, marketers, specifiers and packaging technologists get to grips with the latest products and thinking in environmentally responsible packaging, easyFairs PACKAGING INNOVATIONS show is being co-located with easyFairs ECOPACK, which taps into a huge area of opportunity for the packaging industry.

Almost three-quarters of the visitors to the 2007 easyFairs Packaging Innovations event said their organisations would be promoting their green credentials and environmental corporate social responsibility in their marketing in the coming 12 months.

Encouragingly, 50 per cent said they already had a budget for packaging-related environmental issues, while a further 18 per cent said they would be securing such funds in the near future.

As Europe's leading organiser of time and cost-effective trade shows, easyFairs' aim is to make it easy for goals-oriented exhibitors and visitors to do business in a focused and professional environment.

Bringing specialised trade shows to the very heart of markets across Europe at a fraction of the cost of normal trade shows, the easyFairs model is based on delivering all-inclusive and hassle-free stand packages for exhibitors and added value for visitors.

The highly targeted shows are cost and time effective and also focus on providing networking and learning opportunities through the free independent learnShops seminars, where industry experts tackle the hottest topics.

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