Georgia-Pacific Helps CPG Companies Achieve Sustainability Goals and Maximize Shelf Appeal

ATLANTA, Ga.—Packaging is essential in the marketing and sales of almost every product. Not only does it protect the integrity of the item inside, it also promotes the brand and attracts customers. The average grocery store logs between 35,000 and 40,000 SKUs and nearly 70 percent of in-store purchases are impulse buys. With so many products vying for consumers’ attention, the typical retail environment has turned into a product battlefield. While sustainability is currently top-of-mind for all Consumer Packaged Goods (CPG) companies, shelf impact remains a high priority.

Packaging is typically the first point of contact a consumer has with a new product. Color, texture, graphics and branding all have the potential to make or break a sale. The typical consumer takes three to seven seconds to notice a product on a store shelf and make a purchasing decision. With so much of a product’s brand integrity tied to package design, any redesign—big or small—is an important decision.

By taking a closer look at the entire packaging supply chain CPG companies can achieve both profitability and sustainability goals without compromising the integrity of the product or its shelf impact. Even the smallest changes can yield significant results.

Small Changes, Big Results
There are several ways to optimize a package without incorporating drastic changes. A small package redesign usually goes undetected by the consumer and may not involve significant financial investments. Using a lighter-weight material can greatly effect sustainability results and reduce costs. Choosing an alternative material such as microflute can help to achieve sustainability results. The lighter weight material offers the strength of traditional corrugated and allows for superior graphic reproduction. Its benefits allow the package design to remain intact while offering clear sustainability results. Having an open dialog with your design team and supplier is critical to discovering the right opportunities for optimizing your package.

Although major package redesigns require a larger initial investment, they typically yield more significant sustainability results. As new products are regularly added to retail shelves, having an eye-catching package becomes crucial to maintaining market share. Studies have shown that the best way to attract consumer attention is to revitalize packaging. By reducing overall material usage, incorporating new artwork and package redesign, brand-owners can present the product with a new look and feel. These changes will likely result in a refreshed product image, increase overall sustainability and ultimately improve sales.

The Proof is in the Package
As both a corrugated supplier and CPG company, Georgia-Pacific understands that an optimized package can enhance function, increase shelf appeal and, in many cases, increase profitability and sustainability results.

Georgia-Pacific recently introduced a major package redesign for Dixie® PerfecTouch Grab N Go™ insulated 12 oz. paper cups with many of these benefits in mind.

Traditionally, paper cup packaging consists of a polyurethane bag filled with large quantities of stacked cups. In stores, this form of packaging can typically be found on the very top or bottom shelves, out of the prime viewing area of the consumer. This package design also leaves little room for branding or graphics to grab the attention of the consumers and entice a sale.

To enhance the shelf impact of its Dixie cups, Georgia-Pacific redesigned the package which provided an excellent canvas for a variety of eye-catching designs while communicating product benefits to the consumer. This new package design led to better shelf placement in stores and increased consumer convenience. The result was a highly optimized package that drove improved bottom line results.

The Big Picture
Addressing the shelf impact of your package is just one way to achieve sustainable results. There are several ways to address sustainability throughout every aspect of the supply chain including improving package design, addressing material optimization, consolidating SKU use, improving system-wide productivity, creating alternative packaging, optimizing material handling, and addressing warehousing and transportation efficiencies.

Georgia-Pacific is no stranger to helping customers meet their sustainability and profitability goals. Using its Packaging Systems Optimization (PSO™) program, Georgia-Pacific helps CPG companies adapt quickly to the dynamic retail environment.

Georgia-Pacific’s Packaging Systems Optimization (PSO™) program comprises a rigorous, five-step process, in which a team of packaging engineers analyze a company’s entire packaging supply chain. After three weeks, the PSO team delivers a detailed report which clearly outlines areas where cost-savings, profitability and sustainability can be mutually achieved.

The PSO™ program was developed at Georgia-Pacific’s Innovation Institute®, a creative, collaborative environment where Georgia-Pacific and customers identify and reduce supply chain costs, increase shelf velocity and measure sustainability factors. The Innovation Institute simulates retail and packaging environments, allowing customers to experience sustainable innovation and novel package design solutions in action. Designed to facilitate break-through thinking and next-generation packaging solutions, the Innovation Institute helps customers realize the full value of their packaging investment. For more information on Georgia-Pacific’s Innovation Institute visit www.gpinnovates.com