How a global packaging company integrated customized research analysis into its business strategy to stay ahead and address evolving market needs?

The Packaging solutions company, having a diverse product portfolio and commitment to customer satisfaction aimed at strengthening its global market position further. It looked forward to strategically transforming its business ideologies and production processes to better suit the evolving market needs and precisely meet its consumer expectations. The company authorities turned to Research Nester seeking its services for developing strategies to support customized research in the field.

An overview:

The packaging company was showing robust growth in the initial years of its incorporation. But with the changing market scenario and evolving trends, the company saw low profits and difficult growth.

The innovation faced difficulties with low demand for product offerings, high capital investments, and low returns.

The organization had been aiming at capturing a significant market share of at least around 10% by 2024 but was not able to tap the pulse of the market.

The company authorities turned to Research Nester to devise a strategy based on market research for improving efficiency and profitability.

Results

The company was showing promising growth of more than 20% till 2013, however, after that, it started dwindling. The shift in demand toward eco-friendly packaging alternatives led to declining sales with just 7% growth in 2018. The introduction of biodegradable variants and packaging automation did not meet the desired expectations and could not add any momentum to the company’s sales, with the turnover going down to ~USD 98 million in 2020. Nevertheless, the incorporation of customized research strategies gave a new lease of life to the company. The company reworked its product portfolio in accordance with current and emerging trends and was able to reach a revenue of 260 million in sales by the end of 2022. The company presently has an 8% market share and is focusing on expanding it further using research-oriented strategies.

The Story

The US-based packaging company was incorporated in March 20o7 when a father-son duo purchased a Chicago-based container company and renamed it their own. After 2 years of providing packaging solutions in the form of plastic bottles and jars, metal cans, tins, pails, and drums to the local market, it earned a turnover of ~USD 45 million by the end of 2009. In 2010, the company made two more acquisitions- one being a supplier of rigid packaging products and the other dealing in glass, plastic containers, and closures. This facilitated the inclusion of premium and specialty glass packaging for the wine, spirits, and gourmet food industries. Gradually, the company expanded its operations in Europe after acquiring a local England-based supplier of packaging equipment. By the end of 2013, the turnover had increased almost three-fold to reach ~USD 140 million. In spite of that, as the packaging industry continued to evolve, the focus shifted to sustainable packaging solutions, and non-biodegradable plastics were gradually being prohibited or replaced. In 2017, with a growing emphasis on sustainability and reducing environmental impact, the company ventured into eco-friendly packaging solutions. It introduced biodegradable packaging that included plant-based plastics and paperboard made from responsibly sourced materials. This move was anticipated to increase profitability as it would help most of the client brands to promote themselves as being environmentally conscious and committed to sustainability. However, it got mixed reviews. By mid-2019, the new product portfolio garnered less than 10% growth. In early 2020, the company set its eyes on venturing into packaging automation. However, labor shortages, poor flexibility, lengthy lead times, and lack of consumer awareness disrupted production and supply chain management. The company was at a loss on how to get the business processes in line with the market trends. It sought the services of RNPL analysts to work out a customized strategy for an in-depth analysis of the dynamics of the packaging sector.

The Solution:

The company was introducing new developments without analyzing their effects on all the stakeholders including manufacturers, retailers, raw material suppliers, distributors, industry experts, etc. As observed by RNPL analysts, the company overlooked the exact market trends and preferences of consumers and other stakeholders and failed to optimize production processes by taking their perspectives into consideration. It acted upon a generic market strategy although what it needed was customized research. Research Nester suggested the following collective approach for initiating research to analyze the current and emerging market trends in packaging-

Market analysis based on primary and secondary research- This would require qualitative and quantitative analysis, statistical findings, and data visualization to garner insights and develop recommendations.
- Primary Research- It would help in collecting data related to packaging directly from customers, suppliers, and other stakeholders and help in understanding their grievances, preferences, and behaviors and thereby would facilitate identifying unmet needs and potential opportunities.
- Secondary Research- It would involve collecting information from already published sources such as industry publications, news articles, press releases, market reports, and also government data to analyze the latest developments in the field.
Analyzing and interpreting the data- Analyzing and interpreting data would help in identifying key trends, patterns, and insights into the packaging industry. What kind of packing is high in demand and what material is preferred over others?
Identifying specific market segments with high growth potential- This would help the company in prioritizing its resources and developing strategies for each segment. It would further facilitate targeted marketing campaigns, new product development initiatives, and enhanced customer acquisition efforts.
Making informed decisions- The innovation and product planning can be subjected to data-based decisions made after analyzing and interpreting key trends and industry patterns.
Taking the customer’s perspective- The product is as good as the customer thinks it is, so analyzing consumer insights and preferences and how they perceive the product and respond to it is very crucial for their acquisition and retention.
Implementing a sustainable and environmentally friendly approach- The growing global awareness regarding the social responsibility of businesses towards eco-friendly products and packaging is gaining a lot of traction. However, it needs to be incorporated keeping the product safety, shelf life, and shipping in focus.
Incorporating advanced techniques and innovations in packaging- The Internet of packaging, digital printing techniques, etc can be effectively and efficiently utilized to gain a competitive edge in the market.

RNPL consultants further offered a customized solution in the form of the Zero Waste Packaging Market that provided a thorough analysis of sustainable packaging solutions. The company incorporated the above strategies and was able to establish itself as a reputable and reliable packaging solutions provider.

How a global packaging company integrated customized research analysis into its business strategy to stay ahead and address evolving market needs?

An overview:

Results

The Story

The Solution:

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