How CPG Brands are Strategizing for the Gig Economy

The major disruption caused by platforms of the new gig economy (ie. Uber, AirBnB, Etsy) has been widely reported, and it’s still too early to fully understand the long-term implications that it will have for relevant industries. Robert Reich, former labor secretary, called the shift “the biggest change in the American workforce in over a century” and reaffirmed its unpredictability. What we do know is that these sorts of platforms are impacting increasingly diverse fields, and that companies are facing the prospect of either conforming or becoming obsolete. After several years of the gig economy going strong, CPG brands are finally responding and catching up.

 

 

In mid-May, Mars began recruiting event hosts for a new multilevel marketing campaign called “The Cocoa Exchange”. In the vein of Avon or Mary Kay, “curators” buy kits of samples to push at parties, and are awarded a percentage of any online sales that result from it. Mars has collaborated with chefs to create a unique line of products specifically for The Cocoa Exchange, meant to pair well with wine and suit a party atmosphere better than the company’s existing options.

 

Direct selling like this, Mars has said, has been a fairly safe and profitable channel for the past five or six decades. Additionally, this strategy plays into two well-documented facets of millennial economic behavior – first, the “obvious demand” (as Mars put it) for opportunities to earn supplemental income, and second, millennials’ propensity to invest more in experiences than in material goods. These factors combined convinced Mars that an interactive, entrepreneurial program like The Cocoa Exchange would be able to thrive.

 

 

Other companies are taking inspiration directly from popular digital platforms. Deliv, for instance, is a five-year-old startup that works with major retailers to deliver in-store purchases directly to customers using crowdsourced labor. Known as “Uber for the retail industry”, Deliv has managed to avoid the turbulent legal environment that rideshare services have faced because they don’t compete with regulated industries, unlike Uber and Lyft, which have been accused of threatening taxi services. Deliv has enabled companies like Williams-Sonoma and Bloomingdale’s to offer an added-value service to their consumers and aide in competing against companies that deal primarily in e-commerce, for whom home delivery is a major selling point.

 

 

Some retailers – like Macy’s – are collaborating with gig platforms to offer new experiences to a shared consumer base. Last year the Herald Square Macy’s (the company’s NYC flagship store) hosted a pop-up Etsy shop in an area of the store known as “One Below”, a section meant to appeal to millennial shoppers. At any given time, the shop featured around fifty products (including things like household goods and jewelry, which Macy’s also sells) that were constantly rotated out in order to conform to a specific theme. Prior to working with Macy’s, Etsy also collaborated on smaller projects with retailers like Nordstrom and Whole Foods.

 

Another strategy that CPG brands are taking on is challenging gig platforms for talent. According to an article published this month by the London School of Economics, self-employment is increasingly common among those who traditionally have a difficult time transitioning back into the workforce, namely stay-at-home parents and retirees. In order to retain skilled workers and prevent flexible gig platforms from absorbing these types of candidates, many CPG companies are implementing return-to-work programs. Pepsico has been a leader in this with their “Ready to Return” initiative, which accepts professionals who have taken a career break for more than two years and provides them with ten paid weeks of coaching and mentoring before they start their new position. On their career site, Pepsico tellingly specifies that they are seeking associates who can “make an impact in the Age of Disruption”.

 

Economists and commentators also refer to the gig economy as the “on-demand” economy, especially when discussing it from a consumer behavior perspective. Similar to the concept of “McDonaldization” that was so popular a few years ago, the idea now is that companies like Uber are conditioning users to expect quick and easy service from completely unrelated industries. Amazon is also largely responsible for the on-demand economy, and big box stores are strategizing for how to compete. For example, Wal-mart just opened their first automated 24-hour pickup kiosk, which allows customers to place online orders (of at least $30) and pick them up at a designated kiosk in-store. Last year, they directly partnered with Uber and Lyft for a home delivery pilot program, comparable to what Deliv currently offers. Now with Amazon’s startling announcement that they have decided to purchase Whole Foods, retailers are feeling the heat more than ever, and we should expect to see even bolder experiments from unsettled competitors.

 

 

In an article for Food Dive, industry reporter Keith Loria warned against transitioning to independent contractor-based hiring practices, as some food companies may be tempted to do. After all, companies like Uber don’t have to pay for employee benefits, nor do they have to pay for downtime. However, Loria said, the food manufacturing industry can be physically dangerous for those not appropriately trained, as improper storage and cleanup can lead to serious health concerns for both workers and consumers. Many within the industry feel that this is too big of a risk compared to the rewards offered by making the change. Further, it is important to note that Uber and companies like it have come under fire for what has been perceived as a lack of corporate and social responsibility. Many young shoppers are paying close attention to the way that companies treat their employees, and throwing away prized benefits like retirement savings plans and health insurance could potentially lead to problems with public image.

 

The gig economy has already radically disrupted service industries like transportation and hospitality, and it is gradually creeping into the CPG sphere. Its presence is still relatively new there, and brands should learn from what has happened within the service sector and prepare themselves for what’s to come.

 

Redesigns and Refreshes: Why Change is Crucial

 

Each year, new design trends emerge. It’s important for businesses to keep up with these changes in order to remain competitive, and those that are really good at it can even position themselves as change leaders within their industry. As our Director of Business Development, Kory Grushka, put it: “Be very curious and stay on top of the latest trends and news – particularly in your industry, but also outside of it.”

Adjusting to Fit the Times

 

 

 

 

 

Rocky Mountain Chocolate Factory completely rebranded their packaging and store design to better fit in with today’s aesthetic style and feel. Graphic design studio, Wedge & Lever, took advantage of the new chocolate culture by giving the branding an upscale feel, with a color palette inspired by the chocolate itself.

Rebranding Efforts Often Lead to Huge Success

 

If a brand has become outdated, is declining in sales, or needs to stand apart from the competition, then a rebrand can provide the facelift they need to bring the right attention to the product. Rebranding also keeps customers interested and shows them that people are still hard at work behind the scenes making sure the product is the best out there.

 

Target proved this when they updated their generic Market Pantry packaging to give it a hip, trendy vibe. It now feels like a standalone brand, rather than an affordable generic pick.

 

Each product has its own detailed packaging, down to the type. The heavy typography feels fresh, like something that could be seen on a Brooklyn storefront. The badges for health feel like modern stamps now, instead of boring nutrition facts or your typical callout.

 

 

The Crunchy Oats & Honey Granola Bars now have honey dripping onto the top of the type. With the Toasted Rounds Baked Crackers, the “O” and the round portion of the “D” have treatment that feels like the edge of the cracker. The mixed fruit flavored snacks now have the typography as the teeth of smiling grapes to appeal to kids. On the Woven Wheat crackers box, the type is written so that it looks like parts are weaving in the crackers.

 

Some products (like the marshmallows) are transparent with only the logo and bold type showing, letting the product be the star of the show, and saving ink at the printer in the process. Other products, such as the butter, half and half, cottage cheese, and American singles have very flat packaging focusing on the typography alone.

Holiday Packaging

 

Changing packaging to fit a holiday, theme, or season can lead to huge profits. It can make your product stand apart from the competition and help build brand loyalty with your target audience.

Learn to Accept Change

 

 

While redesigning Campbell Soup Company’s V8 packaging, our research process included multiple store visits to each of the three club store retailers, significant desktop research and interviews of club store industry experts. Further, we audited cross-category products as well as the beverage category, and conducted extensive color studies that ultimately informed the variety differentiation strategy. The final designs focused on color blocking, bold callouts for the brand, varieties and pack sizes, and photo-realistic 3D renderings of the products.

Change can be scary, and with the risks that it carries, it’s easy to see why. But with a clear vision and full understanding of trends and modernity, the resulting redesign should successfully bring a design into the present day.

The Rise of Minimalism in Package Design

The trend for minimalist package design continues to pick up steam, be it forgoing lots of wording, using simplistic designs, going without labels, or even utilizing materials that are plain and simple.

Many companies are opting for clear-cut product labels, which allow consumers to easily identify and differentiate the brands from others on the market. In an era of information overload, savvy CPG brands are realizing that their customers appreciate minimal packaging.

Matt Ramirez, senior designer with Adhere Creative, an inbound marketing and brand development agency in Houston, Texas, said it’s strict limitations or restrictions that sparks creativity.

“Minimalism is the style of the day. Companies can still bend it to fit our needs whether we use color, typography, or simple flat graphics instead of images to stand out,” he said. “Having a roadblock forces us to think up creative ways around it. Having to stand out from the pack with less and less to work with is just another roadblock designers have to think around in a creative way.”

Marketing veteran David Miskin, CMO of Lightstone, first applied the minimalist attitude doing window displays while working at the Gap, and he’s seen minimalism rise in importance over the decades.

 

“I think everybody is familiar with the term ‘less is more.’ It’s important to realize, though, that design is not about less or emptiness, it’s about impact,” he said. “A minimalist philosophy doesn’t just spare space; the designer works using pieces that tell a story. By focusing on what is essential, a designer can better exemplify a company’s or brand’s narrative by focusing on a few points that make a big difference.”

Looking at traditional advertising—whether it was print, television, or billboards—Miskin noted there was such a dominant design across all mediums from the ’60s to the ’80s, that it got to a point where there was so much clutter that designers needed to go to the other end of the spectrum and clean palates again, starting from the basics to develop new concepts.

“In fact, many modern offices have employed streamline, to varying degrees, using negative space to tell the story of their brand,” he said. “In addition, this approach has led to greater productivity, collaboration, and ideas.”

Going Minimalist

 

Some of the design elements that can help contribute to a minimalism feel include using lots of white space, bringing out a message on a small portion of the packaging; relying on bold colors and visibly appealing fonts; or using a simple photo that tells the story you want to tell.

Still, minimalism doesn’t have to be a white background with a gray apple in the middle, either. It can be an orange box with a white swoosh or even a burger made out of the simple bars of the letter “E” in the word “whopper.” All are examples of minimalism however, they use the style in very different ways.

“Color, space, shape, and typography are all very important tools we have at our disposal to make brands stand out and look different while using the same trend to communicate our message,” Ramirez said. “Having a well-thought-out brand identity is an essential tool that we must never forget about. Pepsi and Coca-Cola both use minimalism with simple packaging and on the bottles themselves. However, never in a million years could someone mix them up because they have vastly different typography, colors, and overall brands.”

Miskin said that consistency within a brand is important when pursuing a minimalistic strategy, and the elements of the minimalistic design should be across the board.
“A brand needs to know who they are and not stray too far from their formula,” he said. “By not drifting from their identity, consumers will become loyalists who seek out a brand, quickly recognizing them in a retail space.”

Le Labo, for example, designs all of its fragrance brands in the same way.

“If you look at their packaging, it’s consistent: minimalist across all scents,” Miskin said. “Maison Margiela is a stand-out fashion brand with minimal store build-outs and packaging. Their stores’ design features include books painted white, scraps of wood, reclaimed fixtures, and a consistent grit throughout the stores. Just by going to that white, clean place, they developed such a strong brand.”

Minimalism in Action

 

Another great way to get the most out of a minimalist design is to let a label make eye-catching, bold claims, such as Boxed Water, which simply has “Boxed Water is Better” written in black against a white background.

It was a decision that company CEO Daryn Kuipers said was important to getting its message in front of consumers. Furthermore, the company put great thought into its packaging materials, again opting for a minimalist approach.

“By packaging our premium water in recyclable cartons that ship flat to our regional fillers, Boxed Water minimizes our carbon footprint and increases efficiency compared to bottled water options,” Kuipers said. “The paper for our cartons is sourced from trees of well-managed forests, where new trees are continuously planted to replace the ones harvested.”

 

 

Vodka Mariette is a premium French spirit designed for bold and creative millennial women and a minimalist design was accomplished in-house by Winz Hospitality with assistance from design firm MX Landau.

“To differentiate, an antique neckless carafe was designed in a shape reminiscent of the Eiffel Tower and/or a woman’s body,” said Josh Winzelberg, Vodka Mariette’s president. “It was made completely matte black, opposed to ornate glossy or frosted bottles that are common. Rather than painted décor, a label of quality paper was opted for, similar to wines and champagnes that convey craftsmanship and class.”

Furthermore, the fonts expressed a general contrast, creating the aesthetic of the brand, which is French Modern.

“The female-oriented style of contemporary minimalism with homage to history and craft via details is truly relevant now as a hallmark for the changing landscape of luxury spirits,” Winzelberg said. “This gives the bottle a ‘fresh’ look many others lack.”

The philosophy of minimalism is to omit needless things, so by paring down packaging materials and pairing down the visual aspects of the design, a brand can do wonders and send a big message by doing what’s seen as little.

 

Top 5 Examples of Visual Texture

Visual texturing can be used to create unique, eye-catching packaging designs, through the exploration of layers, photography, illustration, and key graphic elements. This type of design plays off of elements of touch to connect with customers on a deeper level, building both general curiosity and brand loyalty. When done correctly, textural packaging can leap off the shelves, further enticing customers (particularly those who are attracted to abstract designs).

What Is Visual Texture?

Visual texture is not quite the same as actual texture. Actual texture is something you can feel, such as wood. Visual texture, on the other hand, is only implied texture using particular styles of design, such as marbling, layered texts and graphics, patterns, colors, lines, dots, or other repeated shapes.

Caribou Coffee

 

Caribou Coffee was looking for a new design that serves as “an evolution that leverages the distinct qualities of the previous packaging while incorporating new art work and design elements.” Colle + McVoy accomplished this with a burlap sack façade, which stands apart from other coffee options by simply giving the illusion of a different texture.

La Forma Saporita

 

 

This conceptual design – created by Yanko Djarov for his final bachelor’s thesis project – deserves to be mentioned for its successful use of visual texture throughout the branding. La Forma Saporita means “the tasty shape” in Italian, which is used to inspire the branding and packaging. The textural quality of the pasta is highlighted so that the design practically jumps off the branding and packaging. The design also uses a monochromatic theme to better highlight the colors of the pasta, which is also unlike most other colorful pasta packaging on the market.

Isle of Harris Gin

 

Stranger & Stranger added texturing to the Isle of Harris packaging, designed to reflect the unique colors and shapes of the landscape. It also represents a physical approach to texture design, as it entices consumers to pick it up and touch it. It stands apart without requiring a complicated (or costly) design or materials.

 

Lawyer’s House Wine

 

 

Brandient designed the new Lawyer’s House Wine packing, which serves as the perfect example of textural packaging using a simple sticker. The bottle is meant to appear like it is wearing a men’s dinner jacket using a pinstripe pattern, folded sticker, and small red handkerchief. It gives off a feeling of elegance from the shelf and is the perfect gift to take to any dinner party or client meeting.

Alternative Organic Wine

 

 

This concept created by The Creative Method offers an upscale design by focusing on the different textures found in nature. The labels use all organic packaging, from the raw twine, vine leads, and balsa wood to the inks, string, and wax used on the organic paper wrapping. Awarded the “Best In Show” at the Dieline Package Design Awards, the packaging is meant to focus on the premium nature of organic products, rather than focusing simply on the pureness of it. Along with serving as the perfect gift for any host, textural packaging designs like this one also offer a great talking point.

Amazon Squares Off Against Big Box Retailers

 

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Earlier this year, Amazon reportedly began reaching out to several major consumer product brands, telling them that they’d be better off ditching retailers and selling their goods directly to shoppers through its service.

Amazon’s outreach culminated with executives from General Mills, Mondelez, Nike and other packaged goods manufacturers gathering for a three-day summit in Seattle this month to listen to the company’s innovative pitch.

Analysts point out that with a user base of more than 300 million shoppers (a number that increases monthly), Amazon doesn’t necessarily need these brands to bite – that they could simply manufacture their own products if the CPG companies don’t want to sell on Amazon’s marketplace. For companies that wish to avoid competing with the e-commerce goliath, it makes sense to consider leaving the Walmarts and Targets of the world.

An Increase in E-Commerce

 

AMAZON

 

Randy Evins, senior principal of IVE Food Drug & Convenience at SAP Retail, said e-commerce sales are growing at rates far greater than sales through traditional channels, and is only just beginning to indicate future growth potential.

For example, recent studies show that e-commerce sales of consumer packaged goods grew 42% in 2015, faster than overall e-commerce growth of 30%.  And growth in specific categories is surging as consumers increasingly take advantage of on-demand and subscription-oriented services, either direct from CPG companies like Dollar Shave Club or from online marketplaces like Amazon.

“Fast growth in e-commerce is starting from a relatively low current base, but is expected to become a far more significant percentage of total revenue and sales volume for CPG companies,” he said. “While e-commerce today is usually less than 5% of revenue for some of the largest, most established brands, we see predictions that e-commerce sales will grow to roughly 30% of total industry revenue within the next 3-5 years.”

In 2016, Amazon sales made up nearly half of all online sales—and more than half of online sales growth.

Mihir Kittur, ‎co-founder and chief commercial officer at Ugam, noted that the rise of e-commerce sales in certain categories like batteries and baby wipes is extremely encouraging, and that it seems to reaching a point where e-commerce for consumer packaged goods is at an inflection.

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“With the rise of Alexa, chatbots and mobile apps, consumers have more convenient ways to order. Customers have proved time and time again they crave convenience, so to align with their needs, retailers are also continuing to offer speed delivery services and are improving their buy-online-pickup-in-store options,” he said. “Consumers can also save more money now, thanks to the rise of private label CPG products. In the next two years, we should see an acceleration of e-commerce growth for CPG.”

The Case For Amazon

 

The e-commerce transformation seems inevitable. By partnering with Amazon, companies will find that it’s a much faster and less expensive alternative to doing it themselves, which means higher margins on sales.  Amazon, being a single vendor, would be easier to manage with almost a turnkey platform with joint marketing dollars to promote products. It would also be easier and less costly to test products in markets, so CPG companies could double down on winning products and discontinue products that don’t sell.

“Amazon’s approach goes well beyond simply inviting CPG companies to sell their products online via Amazon but, rather, to partner with Amazon to re-imagine product design, packaging, pricing and distribution to capitalize on direct-to-consumer growth opportunities,” Evins said. “By partnering to address these opportunities, Amazon aspires to collaborate with CPG companies in ways that not only capitalize on e-commerce sales growth, but also help to re-imagine business models and business processes to engage with consumers directly, effectively and profitably.”

Jim Prewitt, VP retail industry strategy, North America at JDA Software, said CPGs have been building out their direct to consumer capabilities for the past several years and while they’ve been able to build out their web capabilities, fulfillment continues to be a challenge.

Amazon Fulfillment Center Opens In San Bernardino

“CPG manufacturers’ supply chains have been built for efficiency, shipping in larger quantities typically to retailer distribution centers, where the retailer became responsible for breaking it down to customer buying quantities,” he said. “They are facing the challenge of changing their supply chain to be able to handle shipping eaches to the consumers.”

Amazon could help address the challenges for the manufacturers by serving as their fulfillment mechanism, taking the responsibility of shipping eaches to the consumer. On the surface this is potentially a winning combination for the CPGs and Amazon. However, it could cause issues for the other retailers in the equation.

“The pressure from mass merchants, grocery, drug, etc., who comprise large percentages of current CPG volumes could derail this effort quickly,” Prewitt said. “It’s not reasonable to expect that major big box stores would accept this arrangement with Amazon.”

The Quandary

 

CPG firms are struggling to figure out Amazon, Kittur said. While Amazon is the dominant player in the market, most companies are confused on whether to treat it as a friend or a foe.

“The fear is that selling on Amazon could lead to brand dilution, extreme price discounting, and at some point the risk of an Amazon Private label,” he said. “Another point of concern is the conflicts that arise with existing channels when sellers begin to carry their products on the Amazon marketplace. Overall, CPG brands seem to have good relationships in place with store retailers, but their e-commerce readiness is not as mature.”

As the CPG industry adopts e-commerce, they are more or less running blind, as they have no clear idea on transaction and shopper metrics. Adding to the challenge is that CPG firms are soon likely to be caught in a pricing dog-fight between Walmart and Amazon.

“Amazon needs to improve its trust with CPG firms. Amazon can gain some of that back by flagging pricing violations to CPG firms,” Kittur said. “In many instances Amazon has taken action against some sellers and it needs to continue to demonstrate this in a more widespread manner. It also needs to work with brands on specific propositions for certain customer segments like Amazon Business or on exclusive available-on-Amazon-only products to help them drive growth.”

Looking Ahead

 

CPG companies have begun to take a closer look at the e-commerce landscape to better understand what is going on, but so far, they have been in a situation of “they don’t know what they don’t know.”

Operations Inside the Amazon.com Fulfillment Center On Cyber Monday

“They will need to move fast and test and iterate their e-commerce game plan,” Kittur said.  “There are no clear answers, but doing nothing is not an option. They will also need to build meaningful relationships with companies like Amazon and arrive at the right balance of store and online to be relevant to their shoppers.”

E-commerce growth will continue to become more pervasive across categories, driven mainly by changes in consumer demand. Evins noted that in response, CPG companies will continue to transform their operations to participate more fully in the new direct-to-consumer economy through partnerships with online marketplaces like Amazon, or by developing new models that enable a consistent brand experience via online channels, sub-24-hour order processing and fulfillment, and warehouse and logistics operations to enable deliveries directly to consumers.

One tactic Prewitt said could happen is the creation of Amazon-only products, package sizes, or bundles, similar to what CPG companies do for individual retailers today.

“Since Amazon has identified CPG as a growth driver, in time we can expect them to impact the marketplace the way they’ve disrupted apparel and are working to disrupt the grocery industry currently,” he said.

The reality is that the CPG core competency is innovating on the product side, not on the supply chain side. It’s best for CPG companies to leave it to the online retailers to optimize their supply chain to deal with the last mile.

Brand Stories: Buzzfeed

BuzzFeed is an American “social news and entertainment company” with a focus on digital media and digital technology. It has expanded from quizzes and lists to become the “first true social news organization”. What is now “the web’s most beloved new media brand” was once a small “viral lab” side project for founder Jonah Peretti. Since the inception in 2006, they’ve also progressed from kittens and internet memes to serious reporting (with plenty of kittens and internet memes still sprinkled in).

BuzzFeed-1

While they commit the majority of their resources to videos and entertainment, BuzzFeed News has also become a trusted, engaging news source for millennials. The site tackles hard-hitting issues and presents them in layman’s terms, and their coverage of last year’s campaign season was so well received that CNN poached an entire Buzzfeed investigative team in October.

 

It All Started with a Chain of Emails

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Source

 The idea for BuzzFeed started early on when Peretti was communicating with a Nike representative after they denied his request to customize a pair of shoes with the word “sweatshop” on it. He forwarded the email chain of messages exchanged with Nike to 12 friends around the globe. The email chain was forwarded on and went viral. Peretti was flooded with media inquiries regarding the viral messages, as well as his stance on labor practices.

After working with Arianna Huffington to launch the Huffington Post in 2005, Jonah Peretti decided to form BuzzFeed in 2006. He always had an interest in how and why people share things through the web and experimented with viral projects.

BuzzFeed Labs first experimented with BuzzBot, which used algorithms to message users with targeted links. They also used a site to highlight some popular links that BuzzBot found, but the company wouldn’t hit its true stride until they hired human editors.

 

Finding Success Through Social Media

 

Successful social media marketing, social sharing, and content creation can have a tremendous effect on any business. BuzzFeed is a prime example of this. They found enormous success by focusing more on sharable content, rather than trying to stay within Google’s stringent guidelines. Finding content that users want to share with their friends and family has always been BuzzFeed’s ultimate goal.

 

Avoiding Banner Ads

 

While many sites rely primarily on banner ads for income, BuzzFeed doesn’t have a single banner ad on its site. Instead, they generate revenue by working directly with brands’ chief marketing officers to create unique advertising campaigns that people will want to share and talk about. They have been remarkably successful in using content as the primary advertising strategy.

 

Branding You Can’t Ignore

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The bold red logo and simplistic, clean design and user interface are hard to ignore amongst an ocean of Old English-type news source branding. The bright yellow buttons featuring fun, social buttons like “WTF”, “LOL”, and “OMG” in place of the standard “Like” makes the site feel more like a gossip mag than Peretti’s original venture, The Huffington Post (which is now commonly known as HuffPost). The red trending arrow icon from the BuzzFeed logo is also used to represent when something is trending or “buzzing” to give further meaning to the logo.

 

The Future of BuzzFeed

 

BuzzFeed Community allows BuzzFeeders to now contribute content to the site that’s approved by editors. This allows BuzzFeed to capitalize on free sharable content. In order to stay successful, Peretti said, “we have to continually surprise people, we’ll have to continually evolve and change what we do”.

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Source

 After publishing an unverified dossier pertaining to Trump’s ties with Russia in January, Trump responded by deeming BuzzFeed a “failing pile of garbage”. But with a $1.5 billion valuation, over 200 million monthly unique visitors, and 75% of the traffic generated from social referrals, it doesn’t seem like BuzzFeed has anything to worry about.

Package Design Trend: Dramatic Callouts

As consumers become more resolute in their preferences for trends that have been growing over the past few years (“simple” ingredients, environmentally-friendly production practices, etc.), brands are responding by dramatically highlighting these traits in their packaging. This has proved successful for many breakout brands, and this strategy should be considered in order to show potential consumers that their needs are the primary concern of the company.

rxbar

 

Protein bar manufacturer RXBAR took a pretty big gamble when they shrunk their logo by 60% in their 2017 package redesign. Their risk paid off enormously – by making the ingredients (which are easy for buyers to understand, a valued feature for modern shoppers) the star of the design, they launched their product into third place in its category.

 chia

KIND chose a similar strategy with their line of pressed bars, minimizing their brand name in order to free up room for the ingredients to shine. The company states that each bar adds two servings off fruit to one’s daily routine, and that the snack is made with just fruit and vegetables or fruit and chia. The packaging callouts emphasize this “simple” makeup.

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This packaging from design agency mousegraphics reads like a recipe, taking what RXBAR has done a step further. While the funky hand-drawn typeface is a little difficult to read, the flavors are easily distinguished because whichever ingredient is most present in each bar gets a corresponding color and small illustration at the bottom. The project won a 2017 Dieline Award for Outstanding Achievement.

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Halo Top majorly disrupted the ice cream category with its loud display of its outrageously low calorie count. The treat is made with stevia instead of sugar, meaning that the brand is able to differentiate themselves from fatty, indulgent competitors. Here, this fact is the hero of the packaging, as the calories-per-pint count is the first thing that draws the consumer’s eye.

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Water for Change, which donates 10 liters of water to villagers in need for every carton purchased, won an A’Design Award for this packaging. The hand-to-hand illustration clearly calls out the value that the product offers beyond its basic function, and floating words like “eco friendly” and “sustainable” further express the image of environmental health that the brand is trying to promote.

 

 

Words of Wisdom from Scott Cook

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Flavors of America

At the end of last month, Hershey’s began rolling out their “Flavors of America” campaign, which has the company including signature regional tastes and ingredients into varieties of some of their most beloved products. So far, options include:

 

1)   Reese’s Honey Roasted Peanut Butter Cups, for Georgia

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2)   Hershey’s Cherry Cheesecake Chocolate Bars, for New York

 

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3)   Strawberry KitKats, for California

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4)   Orange Cream Pop and Key Lime Pie Twizzlers, for Florida

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5)   PayDay BBQ, for Texas

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6)   Hershey’s Coconut Almond Kisses, for Hawaii

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This campaign is very much on trend, as food brands are becoming increasingly local. For example, last year ConAgra launched new Slim Jim flavors inspired by regional cuisine, including New York Buffalo Style, Philly Cheesesteak, and Cali Taco. Interestingly, Jill Dexter, brand director from Slim Jim, referred to this rollout as their “Flavors of America” platform. Not only is the concept growing in popularity, the name itself is being applied across different companies.

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2016 also saw granola producer Maple Nut Kitchen combining two major trends into one campaign with the release of four regional flavors for their Paleo line: Northern Berry Harvest, Eastern Apple Pecan, Southern Cherry Almond, and Western Cocoa Cayenne.

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Frito-Lay might actually be at the top of the regional flavor game, and they’ve been doing it for a long time. It was way back in 2011 that Lay’s introduced three localized varieties at once, with Honey Mustard for the Northeast, Creamy Garden Ranch for the Midwest, and Chipotle Ranch for the Southwest. Even prior to that, they released Balsamic Sweet Onion in the Northwest and Cajun Herb & Spice in the Southeast. As far back as the early 2000s, the company experimented with options such as Chicago Steakhouse Loaded Baked Potato, Santa Fe Ranch, and San Antonio Salsa. Similar to ConAgra and Hershey’s, Frito-Lay predictably named that campaign “Tastes of America”.

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Some of Lay’s regional flavors have been so popular that the company transitioned them into national rollouts, such as Garden Tomato & Basil. Unlike Hershey’s, which is rolling out their “Flavors of America” varieties across all regions, Frito-Lay tends to initially introduce a regional flavor into its appropriate local market.

Taking flavor inspiration from local tastes is huge in the snack category, and the trend is expected to continue gaining momentum. Not only does the practice help tailor products to markets based on preferences, it also gives big brands an opportunity to connect more personally with consumers across the nation (and beyond). By incorporating ingredients and styles of various areas of the country, national brands like Hershey’s are able to compete at the local level with smaller companies.

For example, one of Hawaii’s most popular candies, simply called Coconut Balls, comes from local company Hawaii Candy. It is easy to see the similarities between this coveted confection and Hershey’s Hawaiian treat, Coconut Almond Kisses.

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It is unclear right now whether or not Hershey’s intends to develop flavors for all fifty states, or how Californians, Hawaiians, Floridians, Georgians, Texans, and New Yorkers will react to Hershey’s attempt at capturing their distinct local tastes. The campaign definitely has an interesting concept behind it, and other brands that are considering localization will surely be watching to see how successful it is.

Brand Stories: Magic Leap

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Founded in 2010 by Rony Abovitz, Magic Leap is a fast-growing startup that has been shrouded in mystery since its inception. In fact, it has earned the reputation as one of the most secretive firms in the tech industry, and its headquarters are located in Southern Florida to maintain its discretion (which would be nearly impossible if it were located in Silicon Valley).

The startup evolved from a small company called “Magic Leap Studios”, which was focused on creating a graphic novel series and feature film franchise. Abovitz had hired visual effects studio Weta Workshop to develop the imagery, following their work on The Lord of the Rings film trilogy.

However, Abovitz became frustrated that the augmented and virtual reality world he’d read about in sci-fi novels wasn’t available in real life. He aimed to make it so. In 2011, Magic Leap Studios became a corporation, releasing an augmented reality app at Comic-Con that year called Hour Blue.

How They’re Trying to Change the World

Magic Leap is working on a head-mounted virtual retinal display that has been compared to the Microsoft HoloLens. It superimposes 3D computer-generated imagery over real world objects by tricking the brain into thinking that digital light signals created in the headset are in fact reality. Gizmodo said they are trying to build “a Google Glass on steroids that can seamlessly blend computer-generated graphics with the real world”.

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Forbes perfectly described the experience in relation to Pokemon Go: “VR takes you to another place. AR can make a Pikachu appear in your living room. Mixed reality keeps you where you are-and makes that Pikachu come to life.”

While this technology has outstanding potential for gaming and entertainment, Magic Leap aims to use it to revolutionize the way we work, communicate, and play.

Quick Success Led to a $4.5 Billion Valuation

Forbes estimated that Magic Leap was worth $4.5 billion, even though they have not released a product to market yet. It raised $1.4 billion from a list of impressive investors, including Google and China’s Alibaba Group.

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It earned highly publicized early contributions thanks to its overwhelming claims that the technology would “forever change the way we interact with images and information”. The prominent investors were convinced with early prototype demonstrations and technology that was still in development.

Standing Up to Big Competition

Magic Leap is not the first (or only) company to pursue mixed reality. Apple is working on an AR device, startups Meta and Atheer are working on their own headsets, and the MIT Media Lab has also constructed a 3D display using “compressed light fields”. The Microsoft HoloLens is the largest competitor and already has developer kits available. The difference, according to Magic Leap, is that Magic Leap’s breakthrough technology provides better resolution than the HoloLens, making it far superior.

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Misleading Claims Revealed

Most people who have tried Magic Leap have positive things to say. However, not all of the attention surrounding the startup has been good.

Magic Leap may have exaggerated what it was able to provide. In a recent interview, it was revealed that Magic Leap posted a misleading video demonstration of its tech. Magic Leap didn’t help things when it used YouTube videos to prove what its tech can do, using a video that was later revealed to be created by Weta Workshop.

As it stands now, the Magic Leap tech won’t outshine the Microsoft HoloLens’ tech. During a recent rare demo with The Information, the images produced by the headset were often blurrier and more jittery than Microsoft’s prototype.

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While the startup wasn’t ever planning on rushing to market, it seems as if the technology is in reality years away from completion. The fiber scanning display that was set to be Magic Leap’s breakthrough tech has also been demoted to a long-term research project. They have also promised to provide a small headset resembling glasses, but have not yet trimmed down from the bulky helmet prototype.

However, this hasn’t slowed Magic Leap, which just acquired the 3D division of Swiss computer vision company Dacuda and formed a partnership with Disney’s Lucasfilm and its ILMxLAB R&D unit to create a joint research lab at Lucasfilm’s San Francisco campus. Abovitz believes that one day, Magic Leap’s technology will replace phones, tablets, computers, and televisions.