Category — Packaged Goods

Richard Fine and Nathan Frank “are doing for generic drugs what American Apparel did for plain T-shirts,” reports David Sax in Bloomberg Businessweek (3/26/12). Their pharmaceutical startup Help Remedies, is wrapping generics “in cool with every trick in the downtown branding playbook, from hip packaging to absurdist videos to youth targeting.” Their premise is that most store-bought remedies are too complicated and their packaging too confusing. “Excedrin sometimes has three or four drugs just for a headache,” says Richard. “These companies mix a load of drugs, put on racing stripes, and wrap them in packages that are very confusing.”

Help Remedies instead cuts “through the confusion by offering single-ingredient drugs in low doses, with clear, symptomatic titles, such as ‘Help: I Have a Headache‘ (acetaminophen) or ‘Help: I Have a Stuffy Nose‘ (phenylephrine).” The idea, according to Help’s creative director, is to “sell the medicine as though it was coming from a friend, not a doctor in a lab coat.” The brand’s marketing materials are worded “in the first person” and the packaging is a “simple white, biodegradable carton.” The pills have “no colors or coatings.” Jim Butschli of Healthcare Packaging magazine, says the simplified approach aligns with “the reason the consumer is shopping in the medication aisle in the first place.”

Humor is a big part of the pitch: “On the back of Help’s nausea medicine, the package jokes about how the pills are flavorless: ‘We were going to make them deviled-egg flavor, but then we thought it might defeat the purpose.’” Help is also going for unconventional distribution, such as hip-hotel mini-bars. However, Richard Meyer, a consultant, is skeptical, noting that Help’s youth-oriented target audience “happens to be the least brand-loyal of all drug consumers.” Founded in 2008, Help reported sales of $4 million in 2011 (a 1,000% increase from the previous year) and projects sales of $15 million in 2013. The company is not yet profitable, although it has disribution through Target and Walgreens, is expanding into Canada, and plans to augment its product line this summer.

Mark Addicks hopes to reinvent the cereal box as a publishing platform, reports Jefferson Graham in USA Today (2/1/12). Mark is chief marketing officer of General Mills and notes that the cereal box is widely read, “with the average consumer checking out his or her cereal box 12 times.” Mark won’t say exactly what he has in mind, but hints at a digital update of “offering a surprise inside the cereal box. Instead, kids could point a smartphone at the box and ‘see visual surprises’” via a QR code, for instance.

“What I’m hoping for is pure entertainment,” says Mark. General Mills has already “tested augmented reality on a box of Honey Nut Cheerios, instructing consumers to turn their camera phone onto the box to see a video of a world of honey.” The company has also developed “apps for Betty Crocker and Yoplait Yogurt.” The Yoplait app invites “consumers to find Greek items on the backs of packaging and in posters in cities. General Mills, in turn, made donations to food shelters.”

Betty Crocker, meanwhile "has 1.5 million fans on Facebook and 50,000 followers on Twitter. She’s got a mobile cookbooks app for the iPhone and Android devices," an iPad cookbook and a YouTube channel. Mark says Betty "is building communities … She’s a platform," says Mark, "She provides a kitchen for everyone around the world to start giving their ideas and sharing their recipes." Catherine Roe of Google says it’s time for Mills to think of itself as a publisher, not an advertiser. "We see them as a Food Network of Epicurious," she says. "They have really strong content … They are really progressive in this space."

An "organic molecule found naturally in the body, particularly in the brain," is "popping up in beverages and dietary supplements," reports Laura Johannes in the Wall Street Journal (1/24/12). While not approved by the FDA as a prescription drug, Citicoline is prescribed by some doctors in other countries "to help regenerate the brain after a stroke." Some scientists also think "citicoline speeds up formation of brain cell membranes and may boost production of neurotransmitters essential to brain function."

However, "clinical trials found citicoline was no more effective than a placebo." That is plenty good enough for makers of Nawgan, a new drink that contains 250 milligrams of Cognizin, a brand name for citicoline, as marketed by Kyowa Hakko USA. Nawgan’s slogan is, "What you drink is what you think," and its "website invites consumers to track their mental performance with an online memory and focus test." Cognizin is also part of the mix in the 5-Hour Energy Drink from Living Essentials, and is sold in capsule form by Healthy Origins.

Citicoline is believed to be safe, although some report "occasional mild gastrointestinal upset." A study sponsored by Kyowa "of 60 healthy women found a monthlong regime of daily doses of citcoline resulted in improved attention and fewer errors on a cognitive test compared with a placebo." Another test, on 2,000 people, sponsored by another citicoline maker, is due out in May. Meanwhile, Dr. Gary Small of the Longevity Center (who has no vested interest) says citicoline "might be worth a try" but recommends "exercise and a diet rich in antioxidants" to boost brain power.

Hundreds of thousands of consumers have participated in an alternate-reality game unaware that it was a promotion for Wrigley 5 chewing gum, reports Julie Jargon in the Wall Street Journal (8/23/11). The game, called "The Human Preservation Project" was introduced via Facebook ads seeking "test subjects" to participate "in virtual experiments to save the human race by maintaining sensory experiences." This was followed by the distribution of "confidential" materials "at the E3 Expo, a trade show for computer and video games." Then came a stunt at the Bonnaroo festival where parachutists scattered "thousands of paper helicopters with glowing LED lights" as a clue for the game.

A scavenger hunt in 15 cities provided further clues — without any clue that Wrigley was behind it. How could anyone have guessed? Videogame and movie promoters often employ this type of teaser campaign, but it’s "unusual for a consumer-products company. It is also unusual to tease something that has already been on the market for a while." Wrigley’s 5 launched five years ago. But Martin Schlatter, Wrigley’s chief marketing officer, says it makes perfect sense. "This is the true nature of the brand, which is exploratory," he says. "You go down the rabbit hole, and you don’t know how deep it is or where it goes." For Wrigley, it went deep and wide: "Wrigley says that 5 is its most successful launch ever and that it has achieved $500 million in sales in five years."

From the start, 5 has bucked convention. It comes dressed in "slim black gum packs" and offers flavors such as "Cobalt" and "Rain." Rather than "touting the gum as serving a function like freshening breath or whitening teeth, the company sought to position it as a provider of sensory stimulation. Some flavors provide a warming sensation, it said, while others offer cooling." Some players, such as Aaron Aller, admit to disappointment after discovering Wrigley’s fingerprints; the brand is now printing game codes on gum packs and the only way to get more clues is to buy more gum. But Aaron, who has been playing from the start, says he’s gotten over it and has purchased 15 packs of gum to keep playing. "It’s still entertaining," he says. Wrigley says some 600,000 people have participated in the game.

This fall, "the first zero-waste, packaging-free grocery store in the nation" will open in East Austin, Texas, reports Pooneh Momeni in The Daily Texan (7/7/11). Called in.gredients, the original idea was a store that sold wine and beer in bulk. "We’re entrepreneurs by nature and we’re constantly looking for ways to create more sustainable habits," says Christian Lane, co-founder of in.gredients along with his brothers, Patrick and Joseph. "The more we looked into the bulk alcohol concept, we realized that we could do this, but include everything, not just alcohol."

Shoppers will be able "to buy as much or as little grocery and house products as they need" but they must "bring their own containers to carry their goods." If they don’t bring containers, they can get compostable containers at the store. Either way, empty containers are first weighed, then filled, and finally "weighed again at the cashiers before paying." The concept is, in fact, a throwback to forgotten days when shoppers figured out what they needed and bought a supply — packaging not necessarily included — from a supplier.

The plan is to open in "food deserts, where healthy, affordable food is hard to come by," which explains building the first in.gredients in East Austin. "We want to bring back the neighborhood grocer and get into areas where good food is missing," says Christian. He also hopes to create a sense of "community ownership" by crowdsourcing some of the store’s funding. And, perhaps most important, he says the package-free approach will keep prices low. "The per unit price actually ends up being more affordable because you’re not paying for the packaging or the marketing, just the ingredients," he says.

Kraft is offering to pay divorce expenses if the split had something to do with irreconcilable differences over Miracle Whip, reports Julie Jargon in the Wall Street Journal (6/30/11). The promotion is part of Kraft’s larger plan to use social media to drive product sales, which began after @miraclewhip saw Twitter posts about couples breaking up because of “their differences over Miracle Whip.” Kraft is now feeding this bit of social-media insight into its marketing, which naturally feeds it right back into the social-media echo chamber. For balance, Kraft also plans to pay wedding expenses for the couple “that submits the best story about how they will manage their differences” over Miracle Whip.

“Conventional wisdom would say that we were putting a spotlight on people who don’t like Miracle Whip, but the discussion was happening whether we liked it or not,” says Chris Kempczinski, Kraft’s senior vice president of meals and enhancers. Kraft has also run a television spot featuring people who either love or hate Miracle Whip, which similarly fed right back into the social-media loop (video). All of this is, of course, a far cry from Kraft’s traditional approach, which “long relied on wholesome ads depicting moms making lunch for kids and dads demonstrating how to dunk Oreo cookies.”

Miracle Whip’s sales have been declining about five percent a year “for many years,” and this article doesn’t say whether the social-media approach has changed anything. However, Kraft has had sales success with social-media based approaches for other brands, particularly its Athenos brand products. The Athenos campaign, if you haven’t seen it, features a Greek grandmother, yiayia, whose salty insults (video) have earned some 150,000 Facebook friends. Greek cultural groups complain that yiayia promotes a stereotype, but Kraft says that wasn’t their intent. Sales of Athenos brand hummus meanwhile “rose 11 percent between March and May.”

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Big, ugly barcodes are being transformed into works of art in hopes of creating stronger connections with shoppers, reports Sarah Nassauer in the Wall Street Journal (6/22/11). Sixpoint Brewery, for instance, recently created a barcode for its cans of beer "that integrates the Statue of Liberty and skyscrapers." Nestle has been decorating barcodes of some of its smaller brands since 2008. It has bubbles rising from the barcode of its Juicy Juice sparkling beverage and its Skinny Cow packaging has "barcodes shaped like a cow’s spot. (image)"

Bear Naked Granola has a barcode with a blade of wheat grass growing out of it. Yes, there are companies that specialize in such creations, such as Vanity Barcodes LLC. Yael Miller, a co-founder of Vanity, says one of her favorite designs is a hand mixer that looks like it "is mixing up the numbers below it." (image) Another design firm, Design Barcodes Inc., has "created barcodes that look like water flowing over a waterfall or the rails of a train track." Both firms take care that the codes they create scan properly at checkout.

However, Duane Reade, the drug-store chain, says its artsy barcodes aren’t meant to be scanned. Paul Tibiero, Duane Reade’s senior vice-president of merchandising and marketing says its barcode art "iså not functional, and it’s not intended to be. It’s being used as a unique design element." The retailer has "added classic New York scenes like the Manhattan skyline and Brooklyn Bridge in a barcode design to the packages of its store-brand products since 2009 (images) … The simple rectangular barcode, which the cashier swipes at the checkout line, is still on the back of each package."

Marc Pritchard of Procter & Gamble seeks deeper brand meaning. By Tim Manners. No longer is it good enough to make the best products. At Procter & Gamble, a brand is not a brand until it makes a difference in your life. A P&G brand must have a purpose that transcends its benefits.

It may not be a new idea that a brand should solve your problems or make your life happier. But as Procter & Gamble marketing chief Marc Pritchard suggests, it is transforming the way marketing — if the term even still applies — is done at Procter & Gamble … read>>

"I never thought there should be a difference with shampooing your hair than having your hands in a bucket of all-purpose cleaner," says Monica Nassif in a Wall Street Journal piece by Anne Marie Chaker (2/9/11). Monica is taking that idea all the way to retail — and the bank — with Mrs. Meyer’s Clean Day, a line of household cleaners that “comes in stylish packaging and scents like verbena and basil.” The brand is named for Monica’s mother, Thelma Meyer, “an Iowa homemaker and gardener,” and “has become an under-the-radar splurge and status symbol for some women.”

It’s certainly a twist that “upscale household cleaners are finding a loyal if small market … as consumers overall look for savings in an uncertain economy.” Prices of Mrs. Meyer’s products “on average, are 20 percent to 30 percent higher than regular supermarket brands, due largely to the pricier, naturally derived ingredients and fancy packaging.” The brand is owned by SC Johnson and marketed by Caldrea, itself a brand of high-end household cleaners offering products such as a “sea salt neroli” countertop spray ($9) and a sandalwood riceflower cleaner ($12).

Monica’s marketing plan also involves some clever merchandising at retail: "Rather than have her laundry detergent in the laundry aisle and dish soap in the dish-soap aisle," the entire Mrs. Meyers line is grouped together, "whether dish soap, spray or cleansers, so the distinctive packaging really ‘pops’." However, despite the dark-green pitch, "even products that use pricey botanical oils may also rely on both synthetic and natural ingredients, manufacturers say." The days of pine and citrus seem to be numbered, though: "The generation that Mrs. Meyer’s is part of is really redefining the branding," says Bob Burke, a natural products consultant.

Procter & Gamble’s entry into the dry-cleaning business solves the problems people have with dry cleaners, reports Andrew Martin in the New York Times (12/9/10). P&G’s research found "that consumers thought the quality of dry cleaners was inconsistent, hours were inconvenient and prices rarely displayed. Plus, many dry cleaner stores were dingy, stifling hot and smelled of chemicals, not unlike a sweatshop." So, P&G’s idea — branded as Tide Dry Cleaners – is to make the retail experience live up to the Tide brand name.

The store is "larger than most dry cleaners, and it is painted in Tide’s distinctive orange hue. Cleaning is done on the premises, with Tide being used on garments that are laundered. Silicon-based detergents are used to dry-clean garments, though Tide’s fragrance is added in the process. Huge vents suck out heat and odors, keeping the store cool and smelling like — what else? — Tide. The store is staffed with 15 to 18 employees, wearing Tide golf shirts. Lockers near the entrance allow customers to pick up and drop off clothes around the clock."

And, oh yes, the prices are clearly displayed. "When I think of Tide, I have so many good feelings," says Harlan Smith, a customer. " I’m surprised they didn’t think of it sooner." The thinking came from FutureWorks, a P&G division responsible for figuring out how to "expand famous brands like Pampers, Oil of Olay and Crest." The group already has launched a Mr. Clean Car Wash franchise. "The power of our brands represents disruptive innovation in these industries," says Nathan Estruth of FutureWorks. P&G has opened four dry cleaners so far, "with plans to expand in a dozen or so more markets."