VIP PACKAGING CASE STUDY

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1 A New Packaging Format for a Valued Brand The new packaging format for National Foods 1kg Yoplait tub, launched in supermarkets Australia-wide in October 2006, has delivered the kind of leap in on-shelf differentiation rarely seen in a market as small as Australia s. Replacing the thermoformed HIPS container (Fig 1) typical of high volume dairy brands across Australia, Yoplait s move to a robust injection moulded tub with photo-quality in-mould labelling, unique on-pack tamper evidence and custom designed grip and pouring features has undoubtedly raised the bar in chilled dairy packaging across Australia (Fig 2). The redesign had been on the agenda for several years but market research indicated a complete overhaul of the current tub was required to address the weaknesses inherent in thermoformed packaging. The challenge for National Foods was what and how to do this with minimal impact on the shelf footprint. Injection moulding technology has been standard fare in the European dairy case for the past two decades but Australia s lower volumes and costly barriers to entry meant, until now, thermoformed HIPS was the only locallymade packaging option for large volume Australian FMCG chilled dairy brands. Recognising the potential for injection moulding technology in Australia, VIP Packaging (formerly Visy Industrial Packaging), one of the country s leading packaging providers, had been working on developing the right combination of tooling, robotics and labelling for some time in order to produce a product on par with leading European IML manufacturers. National Foods need and VIP s IP came together at the right time, culminating in an innovative and highly successful new packaging format for the well-known yoghurt brand. Fig 1. The old Yoplait 1kg tub Page 1 of 8

2 Fig 2. The new Yoplait 1kg range (Original, Lite and No Fat) Page 2 of 8

3 A Creative and Imaginative Design that Creates New Value and Stands Out from the Crowd The new packaging format for the 1kg Yoplait tub demonstrates creative and imaginative design that creates new value for the consumer and stands out from the crowd. This has been achieved as follows: Custom designed grip and pouring features have replaced a square and bulky tub which consumers found difficult to store and use Consumers disliked the square, bulky shape of the 1kg HIPS tub it was difficult to store and to use. Injection moulding meant VIP could manufacture a custom design so user-friendly features like a comfort grip (Fig 3.), pouring spout (Fig 4.) and tamper evident tabs (Fig 5.) could be incorporated. It is well known that improvements in functionality can play a huge role in influencing buyer behaviour. Enhanced ergonomics extend beyond making a product more user friendly they invite the customer to pick up the product and interact with it. And once it s in their hands, the likelihood they will add it to their shopping trolley increases. Several creative concepts were put forth for the new Yoplait tub before the final design to include a comfort grip and pouring spout was agreed with the National Foods team. The addition of these unique features undoubtedly creates new value for the consumer making the Yoplait tub stand out from all other bulk yoghurt packs which are manufactured to the standard HIPS format. Fig 3. Comfort grip Fig 4. Pouring spout Page 3 of 8

4 Unique on-pack tamper evidence seals the lid to the body of the tub replacing the traditional foil seal and overcap combination. This makes the Yoplait 1kg tub easier for the consumer to open, delivers production efficiencies to the brand owner and eliminates in-store waste caused by tubs with missing lids The new Yoplait tub is now much easier to open and can be accessed simply by breaking the tamper evident clip. This innovation replaces the foil membrane and overcap combination which is the traditional method used to seal chilled dairy containers. The foil seal can sometimes be quite difficult for customers to open as excessive heat and pressure is often used to ensure an acceptable seal is created. As a result, the seal can almost become welded to the tub flange leaving consumers to struggle with edging open the foil liner. Unique on-pack tamper evidence makes the new tub as easy to open as breaking a plastic clip and reduces the amount of waste sent to landfill. Once opened, the new press-seal lid ensures contents remain fresh and the pack can easily be reused for other purposes around the home. The elimination of a secondary seal delivers efficiencies in production from both a manufacturing and filling perspective. It reduces the amount of material required to make each unit and the steps involved to produce a finished pack. This investment in more sophisticated filling technology by National Foods also provides opportunities for the brand owner s other foil sealed products to be revamped and replaced with fitted lids. In-store waste, caused by damaged or incomplete stock, is a common problem faced by retailers. It is not unusual for lids from bulk yoghurt packaging to become detached during transit or go missing on-shelf in-store. Consumers perceive this as a hygiene issue and, as a consequence, the stock becomes unsaleable for retailers. The tamper-evident seal on the new Yoplait container fastens the lid to the tub and provides visible proof against product tampering. Fig 5. Unique on-pack tamper evident tabs Page 4 of 8

5 Photo-quality in-mould labelling (IML) delivers high definition graphics on all sides of the tub (body, lid and now base) replacing lower quality printing that was restricted to the body of the HIPS container National Foods was frustrated by the low image quality of the on-pack graphics generated by post thermoforming offset printing. It was also limited to decoration only on the body of the container and top of the foil seal. The shelf presence delivered by in-mould labelling (Fig 6.) not only sets a new standard in image reproduction for dairy packaging but enables graphics to be printed on the lid and, now, on the bottom of the container (a capability not yet being utilised but under discussion with National Foods for forthcoming product). This is a significant development for the market today considering the sameness that confronts consumers in supermarkets. Most purchasing decisions, particularly brand choice, are largely made in-store and in less than 10 seconds. Packaging that stands out on-shelf is akin to an advertising investment. The level of detail now visible on the Yoplait containers, from the hair on the raspberries of the Berry Bliss label to the dew on the strawberries of the Berry Favourites pack, delivers on-pack clarity and strength in branding that is often not presented by large volume FMCG brands in Australia s small retail market. Fig 6. Photo-quality in-mould labelling Page 5 of 8

6 Robust 100% recyclable polypropylene injection moulded tub replaces weak and flimsy, non-recyclable polystyrene container Users often find the thermoformed HIPS packaging difficult to grip and flimsy to hold. Polypropylene injection moulded containers are stronger and sturdier by nature giving the new pack a more premium look and feel while improving its usability. The enhanced durability also extends the life of the pack enabling it to be reused once the content is consumed. The previous packaging format which consisted of a polystyrene container, foil seal and PVC over-lid was non-recyclable. The new tub is not only polypropylene but so is the in-mould label which makes the pack 100% recyclable and, therefore, collectable by council kerbside recycling programs. The value added by the enhanced packaging means that National Foods has been able to command a price premium and experienced market share gain relative to other offerings in that category. A Warranted Price Premium When the new packaging format for Yoplait was launched in October 2006, the Lite and Original variations (6 Lite 1kg skus and 5 Original 1kg skus) were introduced first. The No Fat range (including 6 x 1kg skus) was phased in early When launched in 2006 the price of the Yoplait tub remained at $4.50 per unit. By early 2007, once the entire range was converted across to the new pack, the price was increased to $4.69 taking the brand above competitor line pricing. Given the added value provided by the new packaging format improved functionality, usability, reusability and aesthetics the price premium was undoubtedly warranted. Impressive Growth in Market Share Two forms of data can be referenced to demonstrate the growth in market share which the new pack format for Yoplait has generated: Year on Year Data (2006/2007): In 2006/2007, which includes 4 months of the old tub format (July06 Oct06) and 8 months of the new tub format (mid Oct06 June07), Yoplait outstripped the market in growth with volume increasing by 7.7% against category growth of 3.4%. During this time, sales value grew by 15% against category growth of 9.5%. Page 6 of 8

7 Final Quarter 2007 (mid Oct07 Dec06): The success of the new packaging format can be further reinforced by looking at sales figures from the first three months of the new tub versus the old tub. It must be noted that these figures include the No Fat variety which was still in the old tub at this time. From mid October 2006 December 2006, Yoplait outstripped the market with volume growing by 28.9% against category growth of 4.4%. Sales figures for the first 8 months of the new tub, with the entire range rolled over for only part of this time, indicate a phenomenal market response to the new packaging format. Only once data is compiled from 2007/2008 will a true indication of the success of the new tub be evident. Though sales to date suggest National Foods won t be disappointed by the demand nor VIP by the volume! In developing the new Yoplait tub, the brief for VIP Packaging was to produce a pack that addressed the weaknesses of thermoformed High Impact Polystyrene. The revamped container design, IML decoration and injection moulding were significant for National Foods to meet its objective to find a distinctive new container with impressive shelf presence for its flagship 1kg Yoplait brand. The new tub sells itself, standing out from competitor products in the bulk yoghurt category due the unique combination of features enabled by injection moulding technology. Page 7 of 8

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