Value Discovery and Collaborative Innovation

Value chain discovery and collaborative innovation

27nd April 2005

Jef Verplaetse CEO Van Genechten PackagingMarit van Egmond Albert Heijn Retailers (Ahold)Mark Daggelders Head production Hoogesteger Fresh Specialist

The Eco-Clip case

Consumer

Value Discovery and Collaborative Innovation

Value is everywhere

consumer

retailer

design agency

packaging industry

producer

Value Discovery and Collaborative Innovation

Value for the consumer

Freshly prepared fruit and vegetable juices

healthy delicious taste

nice colour

convenient

affordable

safe (tamper evident)

same feel as “home made”

Value Discovery and Collaborative Innovation

Value for the retailer

fast rotation (combining excellent internal logistics with short shelf life as competitive edge)

efficient display

impacting point of sale buying decision

upper class margin

brand protection and identity (fresh segment)

create new segment: fresh juices (home made)

Freshly prepared fruit and vegetable juices

Value Discovery and Collaborative Innovation

Value for the design agencies

Flex Development and Future Brand

Create ‘home made’ feeling

focus on packaging design

value driven (eco, health, future oriented)

fresh

realistic (industrial design, cost)

Value Discovery and Collaborative Innovation

Value for the Packaging Industry

Van Genechten Packaging (Folding Boxes)

demonstrate competencies

find new applications (for board)

build customer equity

be part of growing business application

Value Discovery and Collaborative Innovation

Value for the producer (Hoogesteger)

develop large growing customer

need for extreme flexibility (daily production)

develop unique and smooth process

delight the retail customer

low cost solution

preventing counterfeiting

show more of his product (fresh fruit)

Freshly prepared fruit and vegetable juices

Value Discovery and Collaborative Innovation

Base condition for the development process:Collaborative innovation

open mind positive collaborative atmosphere all involved parties bring in their expertise involving marketing psychology knowledge putting yourself in the position of the consumer permanent and direct communication have the decision power around the table efficiency room for common sense

Value Discovery and Collaborative Innovation

Basic communication role of packaging

respect for the packaging preference of the consumer- glass = fresh clean honest- board = natural

communicating the desired image to consumer establishing brand identity achieving market share growth differentiate from the competitor impact In Store decision

Communication role

Telling the consumer that it is fresh

Value Discovery and Collaborative Innovation

Basic communication role of packaging

First thoughts

Communication role

Telling the consumer that it is fresh

Value Discovery and Collaborative Innovation

Basic communication role of packaging

The ‘ear’ design eye catching visual information “what’s in the bottle” summary of ingredients on the back tamper seal

Communication role

Telling the consumer that it is fresh

Value Discovery and Collaborative Innovation

Basic communication role of packaging

Original design compared with final design

Communication role

Telling the consumer that it is fresh

Value Discovery and Collaborative Innovation

Outcome for the consumer

healthy Delicious taste achieved

appealing product - see what you get

safe (tamper evident)

convenient (easy access, simple message)

Freshly prepared fruit and vegetable juices

Value Discovery and Collaborative Innovation

Outcome for Albert Heijn

30 % growth in fresh juice segment

leading position in fresh juice segment

positive shopper experience for fresh juice

surprising and exclusive packaging design

efficient usage of chilled display space

Freshly prepared fruit and vegetable juices

Value Discovery and Collaborative Innovation

Outcome for Hoogesteger

30 % growth with Albert Heijn

positive impact on consumer buying habits for fresh juices

positive and different appeal for fresh juice

difficult to copy packaging design

faster changeover (faster than labels)

smoother and more stable production process

Freshly prepared fruit and vegetable juices

Value Discovery and Collaborative Innovation

Outcome for Packaging industry (VGP)

new application for board.

Pro Carton Ecma award 2004 (European Carton Makers Association)

creative full service concept delivering the labels and the machine to put them on the bottles.

Freshly prepared fruit and vegetable juices

Value Discovery and Collaborative Innovation

Pictures of Product and equipment

the product

the security seal

the machine

putting the label on

Freshly prepared fruit and vegetable juices

Value Discovery and Collaborative Innovation

Lessons learned innovation also means risk taking

combining more than one new technology enhances the risk• clip folding• IR gluing• therefore enough buffer needed

testing in real environment (chilled rooms) necessary in order to avoid surprises in a single day launch

language issues to be organised beforehand

Value Discovery and Collaborative Innovation

Efficient innovation is a matter of collaboration

finding value is not a matter of one party

speed is achieved through efficient communication

power of the team members is needed to unlock the inherent value

Conclusion