How to Successfully Implement SmartLabel

Size: px
Start display at page:

Download "How to Successfully Implement SmartLabel"

Transcription

1 How to Successfully Implement SmartLabel Michael T. Fox Director, Client Solutions SGK Global PackEx Toronto

2 CONTENTS 1. INTRODUCTION TO SMARTLABEL 2. DRIVING TRENDS 3. GETTING STARTED 4. OPTIMIZING YOUR IMPLEMENTATION 2

3 INTRODUCTION TO SMARTLABEL What is SmartLabel? 3

4 INTRODUCING SMARTLABEL A GMA Initiative for Product Transparency Strategic initiative for product transparency Through SmartLabel the GMA will provide a standardized and trustworthy mobile web presentation of product information Will serve as a key source for labeling information - consumers might be driven from the pack, brand site, or a retail site

5 Nutrition DAL GIARDINO BASIL PESTO PASTA DINNER KIT NET WT 14.5 OZ

6 DAL GIARDINO BASIL PESTO PASTA DINNER KIT NET WT 14.5 OZ Ingredients

7 DAL GIARDINO BASIL PESTO PASTA DINNER KIT NET WT 14.5 OZ Allergens

8 DAL GIARDINO BASIL PESTO PASTA DINNER KIT NET WT 14.5 OZ Other Information

9 DAL GIARDINO BASIL PESTO PASTA DINNER KIT NET WT 14.5 OZ Company/Brand Information

10 FUTURE USE Smartlabel as a Canonical Source for Labeling Info Across Platforms PACK BRAND SITE RETAIL SITE 2015 Matthews International Corporation. All Rights Reserved. 10

11 GLOBAL EXPANSION Although it is predominately a NA initiative, there are a number of stakeholders driving global expansion of this initiative Dec 2015 The Trade Partner Alliance (TPA) created SmartLabel to serve a solution to the increasing consumer demand for more information about their food, beverage, household and personal care products Jan 2016 The GMA has been a key driver in pushing the SmartLabel initiative in NA. Hershey was first company live by end of Jan CPG s have committed to having 34,000 SmartLabel pages by end 2017 Jun 2017 The FCPC has been driving adoption of SmartLabel within Canada and are targeting launch by April The CGF are making strong recommendations for global expansion with support of other bodies 11

12 DRIVING TRENDS What is the business case for SmartLabel? 12

13 DRIVERS FOR CHANGE The key trends that are driving the need to SmartLabel PERPETUAL MOBILE ACCESS Consumers are leveraging their smartphones as a touchpoint to get more information via code technology 82% of smartphone users consult their phones on purchases they are about to make in store2 CULTURAL CHANGE We live in a world of high connectivity, it is natural that this moves into the world of consumer products Enables much more flexible and dynamic delivery of content than the printed pack C-SUITE DEMAND C-Suite is energized by the new connectivity and changes in the industry Moving labeling off pack & onto smartphones could provide significant supply chain agility and savings SKEPTICISM OF BIG FOOD & BIG BUSINESS Consumers are skeptical whether large companies share their health & nutritional values 98% of consumers believe it is important to consider the ingredients in the products that buy Label Insight Shopper Trends Survey 2. Google/Ipsos, Consumers in the Micro-Moment, March

14 GETTING STARTED What are the first things to consider? 14

15 REQUIREMENTS OF A SUCCESSFUL IMPLEMENTATION What is needed to launch a SmartLabel program BRAND OWNER CODE PLATFORM PROVIDER ARTWORK PROVIDER A NEW SUPPLY CHAIN HOSTING PROVIDER PRODUCT DATA Detailed product information must be collected & organized for each product. Creating an accurate data record of what was printed on pack is complex and challenging. An entirely new supply chain must be built to provide labelling information in a new way This includes implementing multiple vendors: A code-creation partner to create the codes and provide a technical infrastructure to support ongoing scanning and activity A website hosting provider equipped to process, store and publish a high volume of product information An artwork provider to apply the codes to artwork The supply chain must be implemented in a coordinated way that meets the new business needs CODES WWW HOSTING The packaging artwork for each product will require a code for consumers to scan. This presents multiple challenges, including technical issues regarding the creation of the code and adjusting artwork to accommodate the code. The SmartLabel pages must be hosted for public use. Any labelling changes on the pack, require a new SmartLabel page to be created to reflect those changes. They need to accommodate having multiple packs with different labelling in the market at the same time. 15

16 IMPLEMENTATION GUIDE Learn the rules for implementation MANDATORY AND VOLUNTARY ATTRIBUTES IMPLEMENTATION SPECIFICATIONS 16

17 CODES Options for Connecting the Pack - What could be the next generation? NO URL = INCONSISTENT RESULTS THE BEST SHORT-MID TERM BET IS HERE ID PROCESS IS SUBJECTIVE AND OPEN TO ERROR. DOESN'T MEET REGULATORY REQUIREMENTS COST IS CURRENTLY TOO HIGH FOR MOST CONSUMER GOODS UPC/EAN (1D) QR (2D) DIGITAL WATERMARKS IMAGE RECOGNITION NFC/RFID DATA GTIN Only URL GTIN > URL None GTIN + URL + MOBILE ENGAGEMENT Does not contain URL. Brand owner can control the lookup only through cust. app Positive ID through URL Embedded in code Positive ID through URL Derived from GTIN Image recognition will not reliably recognize GTIN versions NFC on Most Android Phones, but Not Yet Enabled on iphone SPACE REQUIREMENTS approx. 1.5 sq. in. approx. 1 sq. in. None None Minimal IMPACT ON GRAPHICS Space Only Space Only Visual impact on some artwork None None UBIQUITY High High Low Low Low COST Low Low Medium Variable High 17

18 CODES Options for Connecting the Pack - What could be the next generation? NO URL = INCONSISTENT RESULTS THE BEST SHORT-MID TERM BET IS HERE ID PROCESS IS SUBJECTIVE AND OPEN TO ERROR. DOESN'T MEET REGULATORY REQUIREMENTS COST IS CURRENTLY TOO HIGH FOR MOST CONSUMER GOODS UPC/EAN (1D) QR (2D) DIGITAL WATERMARKS IMAGE RECOGNITION NFC/RFID DATA GTIN Only URL GTIN > URL None GTIN + URL + MOBILE ENGAGEMENT Does not contain URL. Brand owner can control the lookup only through cust. app Positive ID through URL Embedded in code Positive ID through URL Derived from GTIN Image recognition will not reliably recognize GTIN versions NFC on Most Android Phones, but Not Yet Enabled on iphone QR codes are the most readily available and easily accessible technology for smart devices in the SPACE REQUIREMENTS approx. 1.5 sq. in. approx. 1 sq. in. None None Minimal IMPACT ON GRAPHICS Space Only Space Only Visual impact on some artwork None None UBIQUITY High High Low Low Low COST Low Low Medium Variable High 18

19 GRAPHIC ADAPTATION We can support when the pack has to be altered to fit a QR code ORIGINAL ADAPTED DESIGN 19

20 PRODUCT ATTRIBUTES We can use product attributes directly from the approved artwork Brand owners carefully control their presence on the Physical Shelf. The Digital Shelf must also be carefully controlled, and product attributes must mirror the Physical Shelf By extracting the product attributes directly from the approved artwork, we can eliminate time, cost and quality risks through re-keying information & approval loops APPROVED ARTWORK 20

21 E-CONTENT IMAGES CGI Imaging Can Significantly Reduce Delivery Times Finished Artwork CGI 1 Week CGI Production PHOTOGRAPHY 6 Weeks Print Production 3 Weeks Packing 1 Week Collect & Ship 2 Weeks Photos 2017 Matthews International Corporation. All Rights Reserved. 21

22 OPTIMIZING YOUR IMPLEMENTATION How to maximize efficiency and efficacy? 22

23 ARCHETYPES Implementation categories for SmartLabel HIGH STRATEGIC FOCUS GOOD STUDENTS RELUCTANT PARTICIPANTS SMARTLABEL CHAMPIONS REGULATORY HOPEFULS LOW LOW IMPLEMENTATION READINESS HIGH 23

24 SMARTLABEL SCORECARD Maturity topics for SmartLabel implementations LOW IMPLEMENTATION READINESS HIGH Portfolio Inclusion commitment only pilot or limited roll-out all brands Workflow Design manual processes automation direct integration Partner Interaction partners not selected partners selected interactions optimized & documented Content Management manual collection/manipulation of product content data available in many source of truth systems data in a single marketing PIM or in GDSN 24

25 TYPICAL MARKETING SUPPLY CHAIN WORKFLOW CHALLENGES 2017 Matthews International Corporation. All Rights Reserved. 25

26 THE OPERATIONAL IMPACT OF SMARTLABEL SmartLabel is a new supply chain for brand owners it can be very taxing to manage SMARTLABEL MANAGEMENT assess need for SML page updates code request track artwork status trigger new workflow on-pack data validation off-pack data collection track page status trigger other partners CODE CREATION OTHER PARTNERS TRADITIONAL GRAPHICS WORKFLOW SMARTLABEL PAGE CREATION EXISTING FUNCTIONS NEW FUNCTIONS 26

27 THE OPERATIONAL IMPACT OF SMARTLABEL SmartLabel is most efficient when these new components are integrated into the existing workflow and scrutinized for waste and opportunity CODE CREATION OTHER PARTNERS TRADITIONAL GRAPHICS WORKFLOW SMARTLABEL PAGE CREATION EXISTING FUNCTIONS NEW FUNCTIONS 27

28 SMARTLABEL SCORECARD Maturity topics for SmartLabel implementations LOW STRATEGIC FOCUS HIGH GMO Compliance GMO compliant lock-ups established roll-out coupled w/ another initiative like NLR GMO disclosure on page Consumer Transparency mandatory information only some non-mandatory (e.g., ingredient descriptions, certs) lots of non-mandatory (e.g., provenance) Connected Pack Technology page only on pack exploring other scanning pathways or applications Consumer Awareness no consumer communication prominently displayed on pack robust consumer awareness program Leveraging a New Touchpoint SmartLabel page only complementary links in last tab relevant, innovative CX, chooser page, owned app 28

29 THE STRATEGIC IMPACT OF SMARTLABEL A well-crafting consumer journey is more than the sum of it s parts SmartLabel is most effective when considered an integral part of the sales and marketing funnel BLOGS WEB BANNERS ADVERTISING SPEECHES PR PACKAGING WEBSITES PROMOTIONS AWARENESS CONSIDERATION PURCHASE RETENTION ADVOCACY DIRECT MAIL PRESENTATIONS NEWSLETTERS PUBLICATIONS SIGNAGE VOIC S TRADE SHOW TV / RADIO S SOCIAL MEDIA 29

30 SMARTLABEL EXPERTS Michael Fox (AMER) Director, Client Solutions Bruce Miller (AMER) VP Innovation & Solution Development Hope Massey (EMEA) Senior Associate, Client Solutions +44 (0) Matthews International Corporation. All rights reserved. No part of this work may be reproduced in any form without written permission from the copyright holder. Schawk is a registered trademark of Matthews International Corporation. The Brandimage, IDL, Schawk and Saueressig logos are trademarks of Matthews International Corporation. The SGK and Anthem logos are registered trademarks of Matthews International Corporation. All other trademarks are the property of their respective trademark owners. 30

31 About Us Matthews International, Inc. All Rights Reserved

32 We optimize global marketing supply chains to improve Brand performance

33 Defines brand meaning and create beautiful design that seduces at the point of sale Activates brands across every channel, creating emotional and rational connections Develops retail design that delivers strategy, creative, execution and reporting of instore marketing programs Produces and protects brands, ensuring flawless execution and consistency Delivers rotogravure solutions by applying innovative technical expertise in the reproduction of brand assets SGK brings our clients brands to market faster through an unwavering focus on efficiency, consistency and accuracy. This focus drives profitability and brands that perform Matthews International Corporation. All Rights Reserved. 33

34 2017 Matthews International Corporation. All Rights Reserved. 34