2016 EuropeanBarrier Films in Flexible Packaging
Product Leadership Award
2016
Akulon XS
BEST PRACTICES RESEARCH
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Contents
Background and Company Performance ........................................................................ 3
Industry Challenges .............................................................................................. 3
Product Family Attributes and Business Impact ........................................................ 3
Conclusion........................................................................................................... 7
Understanding Product Leadership .......................................................................... 8
Key Benchmarking Criteria .................................................................................... 9
Best Practice Award Analysis for DSM ........................................................................... 9
Decision Support Scorecard ................................................................................... 9
Product Family Attributes .................................................................................... 10
Business Impact ................................................................................................. 10
Decision Support Matrix ...................................................................................... 11
The Intersection between 360-Degree Research and Best Practices Awards ..................... 12
Research Methodology ........................................................................................ 12
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 13
About Frost & Sullivan .............................................................................................. 14
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Background and Company Performance Industry Challenges
Companies specialized in developing plastic films with adequate barrier properties for
protecting, preserving, and extending the shelf life of packed goods witness the highest
rate of product adoption in the European food packaging industry. On one hand, plastic
substrates deliver significantly high flexibility to brands, especially manufacturers of
packaged food substances, in terms of printability, branding, sustaining, and preserving
the manufactured product. On the other hand, the lack of a sufficient barrier in the plastic
film is the key factor leading to the permeation of flavor, aroma, water vapor, moisture, or
any other gaseous substance. The existing participants in the European polyamide barrier
film market opine that polyamide 6 (PA6) is the ideal component for manufacturing
packages with the best combination of barrier properties as well as mechanical strength.
However, the high crystallization speed of this polymer is a challenge that barrier film
processors need to overcome. Traditionally, companies handle this challenge by either
reducing the processing speed, which affects productivity, or by combining PA6 with
unstructured polyamides or polyamide copolymers. In both cases, however, the
production cost increases because customers have to compromise on their productivity
efficiency or spend more in the process of blending PA6 with additional polyamides or
polyamide copolymers.
Companies operating in this market need to develop a technologically advanced version of
new polyamide that features a slower crystallization rate than the conventional PA6, but
the similar material property of PA6. With this feature, the advanced product version
would be able to match the crystallization speed of different material layers. The
developed bubbles would be more stable than before, and the processors would be more
flexible when processing barrier films. In addition, the produced barrier film would need to
be more stretchable than the existing offerings, which would require the application of less
force to achieve the desired blow-up ratio (BUR) level, providing companies with a
competitive edge over their peers in the European market, backed by their ability to
position their product lines strategically to meet customers’ needs.
Product Family Attributes and Business Impact
Product Value
As a specialist supplier of polyamides, thermoplastic copolymers, and polyesters to the
European flexible packaging market, DSM has created a product portfolio that is highly
compatible for food, pharmaceutical, and industrial packaging. This product line comprises
the company’s proprietary products, Akulon® (PA6, PA66, XS resins used extensively for
film extrusion purposes in food,medical and industrial product packaging). Barrier film
developers use DSM’s Akulon in cost-effective packaging applications (e.g., retort
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packaging for ready-to-eat products and packaging for fresh food). Poor shelf life caused
by environmental factors such as temperature, moisture, and air pressure as well as low-
quality food packaging is the primary reason behind the wastage of packed substances. To
avoid this situation, brands are compelled to invest in improving the existing food
preservation methods, translating into reduced return on investment (ROI) for film
manufacturing companies. To help customers overcome the aforementioned challenges
and add value to flexible packaging, DSM has introduced its exclusive Akulon 6, 66, and
XS (introduced in 2014) product variants.
Features and Functionality
Fresh food and retort convenient products require high barrier properties against
moisture, oxygen and temperature. Moreover ready to eat products and food products
that are packed in microwaveable packaging, require high resistance towards temperature
and moisture. It is pretty vivid from DSM’s Akulon product range that the company
understood this need thoroughly. For instance, Akulon 6 offers high-range processing
(high temperature resistance & high viscosity extrusion grade), superior mechanical
attributes, viscosity, low gel count, and ability to preserve moisture. With customer focus
on retaining shelf life of the product and a single film catering to multiple types of
products, DSM’s products are well suited for both fresh and processed food and prevent
them from discoloration and spoilage, thereby enabling a prolonged shelf life.
In addition, Akulon 6 offers better features with respect to higher temperature resistance
and mechanical strength as compared to polyamide copolymers such as PA6/66. Because
of these attributes, the former is growing in applications such as retort convenient
packages that can survive high temperatures and mechanical pressures. However, the
processing challenge of PA6 in blown film is hindering film converters to capture the value
in this growing demand markt segment.
In comparison, Akulon XS is a revolutionary product due to its special chemical and
morphological structure and has combined the film property advantage of PA6 and the film
processing advantage of PA6/66 copolymers.. By using Akulon XS, barrier film
manufacturers have been able to design multi- and mono-layered film structures that are
co-extruded. No other traditional PA6 resin can offer customers a viable solution that
addresses the slow productivity issues caused either by the drop in processing speed or
expensive production process. Barrier films produced from Akulon XS also proved to be
more robust and provided better stretchable properties than traditional polyamides in the
market without compromising on the aesthetics.
In the past year, DSM has delivered products by addressing the contemporary needs of its
customers and is focused on doubling the shelf life of food through innovative packaging
solutions in the future.
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Reliability and Quality
Driven by its commitment to offer technologically advanced polyamides to barrier film
producers in the Global market, DSM strongly relies on its extensive research and
development (R&D) capabilities to develop sustainable products. DSM’s leadership position
can be best understood through its success in the constant development of proprietary
technology platforms that equip its scientists with the unique ability to understand the
crystallization kinetics of polyamides. Slow crystallization enabled by Akulon XS
establishes the company’s expertise in producing both mono- and multi-layered co-
extruded barrier film structures that were earlier impossible to achieve without either
slowing down the normal processing speed or mixing PA6 with expensive polyamides or
copolymers. Using this material, customers can create smart, breathable packaging
systems that intelligently control the presence of moisture, oxygen, and carbon dioxide
within a container.
Operational Value
To ensure its products effectively address customers’ changing needs, DSM has
implemented 2 different internal tools: the value calculation model and the lifecycle
analysis tool. The company developed the value calculation model by working closely with
film convertors to understand the product’s performance value, whereas the lifecycle
analysis tool evaluates the barrier film’s sustainability in terms of its effectiveness in
reducing food wastage.
DSM realizes there is a gap between film convertors and brands in terms of their
respective requirements from the materials used in barrier film production. For instance,
according to DSM’s findings, brands are solely concerned about efficient packaging,
whereas film convertors are always looking for resins that would help bring down
production costs, while enhancing their value in terms of sustainability. In this context,
Apart from meeting customers’ demands most comprehensively, backed by the semi-
crystalline structure and slower crystallization speed, Akulon XS guarantees better
mechanical strength as well as durability than traditional barrier films. As a result, film
convertors are able to bring down the production cost by almost 10%.
Price/Performance Value
DSM strongly emphasizes on enhancing the performance of its offerings, while still
launching them at a competitive price. For instance, the slow crystallization rate of Akulon
XS assures customers with a ready-made solution that helps keep the barrier film’s rate of
productivity high by eliminating the need to create customized recipes, where amorphous
polyamides or polyamide copolymers are mixed with traditional PA6 resins. The instant
usability of Akulon XS is attracting polyolefin manufacturers to become a part of the
growing landscape of barrier film production. Despite their specialization in the production
of polyethylene/polypropylene (PE/PP) films, these companies have been limited, in terms
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of technological resourcefulness, in penetrating the European polyamide barrier film
market. With DSM’s polyamides, the production process becomes simplified, without
customers needing to create an expensive barrier film manufacturing expertise.
DSM is also playing an active role in enabling film convertors to produce 12 micron
biaxially oriented polyamide (BOPA) films instead of the traditional 15 micron. Even
though 12 micron polyesters are standard in the current scenario, existing film convertors
lack the efficiency to produce 12 micron BOPA films without compromising on the film’s
mechanical strength and barrier properties. Capitalizing on the higher stretchability of
Akulon XS, DSM can offer film convertors a viable solution that can be used to produce 12
micron BOPAwith sufficient mechanical and barrier properties without losing efficiency.
In addition, DSM is working closely with its food packaging customers/companies, with a
focus to improve the barrier and breathability propertyof packaging. This improvement will
bring solutions to increase the shelf life of food items, or keep the freshness of packaged
items preserved for a longer time.
Customer Ownership Experience
DSM believes in working closely with its customers and sharing with them its extensive
knowledge about material crystallization in different temperature ranges, so customers
can easily configure their machineries to produce best-in-class barrier films. Unlike its
competitors, DSM follows a traditional approach of directly interacting with customers to
demonstrate differentiation and the value that customers will receive by opting for its
products, in terms of procedural simplicity. In addition, DSM ensures that the cost of using
its offerings is affordable, unlike its competitors where customers are required to make
significant additional investments. Moreover, because the market is mature, DSM insists
on an annual product feedback satisfaction rating, through which the company constantly
improves its performance.
Brand Equity
Customers generally prefer DSM’s products over competition on the basis of performance
and also because the company is considered to be a consistent innovator in this industry.
For instance, the Akulon product line has become synonymous with barrier films and has
been instrumental in elevating DSM’s brand presence in the European region. In addition
to offering barrier film products, DSM also provides its customers with customized advice
and technical solutions through its advisory team to help their end customers improve
productivity and save costs.
Pursuing its aim to widen its geographical footprint in the European polyamide barrier film
market, DSM has entered into strategic collaborations with various scientific organizations
and academic groups. For instance, DSM collaborates with the research team at Delft
University of Technology to get insights on ways to improvise the functional properties
(moisture, gas retention) of barrier films. With Europe’s stringent food regulatory
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standards and consumer awareness emphasizing on environmental friendliness, DSM has
built its perception among customers as a sustainable provider of high quality and certified
barrier films for the food industry.
DSM also frequently showcases its new products in prominent flexible packaging
symposiums and expos like AIMCAL, Interpack, and Pack Expo in Europe which not only
creates awareness, but also elevates its visibility among key industry groups, leading to
greater acceptance of its products throughout the regional markets of Europe.
Conclusion
DSM’s proprietary product Akulon and its variants are aimed at matching a wide range of
polyamide barrier film manufacturing needs, from superior barrier properties to
recyclability solutions. Akulon XS has received wide acceptance among barrier film
producers because of the revolutionary Akulon technology. With its special chemical and
morphological structure and Akulon XS features the film property advantage of PA6 and
the film processing advantage of PA6/66 copolymers.
Based on its extensive study of crystallization kinetics and morphology of polyamides,
DSM has successfully created the Akulon XS resin that helps barrier film developers
overcome the traditional problem of slow productivity or high-cost production.
With its strong overall performance, DSM has earned Frost & Sullivan’s 2016 Product Line
Strategy Award.
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Significance of Product Leadership Ultimately, growth in any organization depends upon customers purchasing from your
company, and then making the decision to return time and again. A comprehensive
product line, filled with high-quality, value-driven options, is the key to building an
engaged customer base. To achieve and maintain product excellence, an organization
must strive to be best-in-class in three key areas: understanding demand, nurturing the
brand, and differentiating from the competition.
Understanding Product Leadership
Demand forecasting, branding, and differentiation all play a critical role in finding growth
opportunities for your product line. This three-fold focus, however, must be complemented
by an equally rigorous focus on pursuing those opportunities to a best-in-class standard.
Customer communications, customer feedback, pricing, and competitor actions must all be
managed and monitored for ongoing success. If an organization can successfully parlay
product excellence into positive business impact, increased market share will inevitably
follow over time.
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Key Benchmarking Criteria
For the Product Leadership Award, Frost & Sullivan analysts independently evaluated two
key factors—Product Family Attributes and Business Impact—according to the criteria
identified below.
Product Family Attributes
Criterion 1: Match to Needs
Criterion 2: Reliability and Quality
Criterion 3: Product/Service Value
Criterion 4: Positioning
Criterion 5: Design
Business Impact
Criterion 1: Financial Performance
Criterion 2: Customer Acquisition
Criterion 3: Operational Efficiency
Criterion 4: Growth Potential
Criterion 5: Human Capital
Best Practice Award Analysis for DSM
Decision Support Scorecard
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool
allows our research and consulting teams to objectively analyze performance, according to
the key benchmarking criteria listed in the previous section, and to assign ratings on that
basis. The tool follows a 10-point scale that allows for nuances in performance evaluation;
ratings guidelines are illustrated below.
RATINGS GUIDELINES
The Decision Support Scorecard is organized by Product Family Attributes and Business
Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions
for each criteria are provided beneath the scorecard). The research team confirms the
veracity of this weighted scorecard through sensitivity analysis, which confirms that small
changes to the ratings for a specific criterion do not lead to a significant change in the
overall relative rankings of the companies.
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The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key players
as Competitor 2 and Competitor 3.
DECISION SUPPORTSCORECARDFOR PRODUCT LINE STRATEGY LEADERSHIP AWARD
Measurement of 1–10 (1 = poor; 10 = excellent)
Product Line Strategy
Product Line
Strength
Customer
Impact Average Rating
DSM 9.2 9.2 9.2
Competitor2 8.5 8.7 8.6
Competitor3 8.0 8.2 8.1
Product Family Attributes
Criterion 1: Match to Needs
Requirement: Customer needs directly influence and inspire the design and positioning of
the product family
Criterion 2: Reliability and Quality
Requirement: Products consistently meet or exceed customer expectations for
performance and length of service
Criterion 3: Product/Service Value
Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market
Criterion 4: Positioning
Requirement: Products or services unique, unmet need that competitors cannot easily
replicate or replace
Criterion 5: Design
Requirement: The product features an innovative design, enhancing both visual appeal
and ease of use
Business Impact
Criterion 1: Financial Performance
Requirement: Strong overall financial performance in terms of revenues, revenue growth,
operating margin and other key financial metrics
Criterion 2: Customer Acquisition
Requirement: Product strength enables acquisition of new customers, even as it enhances
retention of current customers
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Criterion 3: Operational Efficiency
Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high
quality standard
Criterion 4: Growth Potential
Requirements: Product quality strengthens brand, reinforces customer loyalty and
enhances growth potential
Criterion 5: Human Capital
Requirement: Company culture is characterized by a strong commitment to product
quality and customer impact, which in turn enhances employee morale and retention
Decision Support Matrix
Once all companies have been evaluated according to the Decision Support Scorecard,
analysts can then position the candidates on the matrix shown below, enabling them to
visualize which companies are truly breakthrough and which ones are not yet operating at
best-in-class levels.
DECISION SUPPORTMATRIX FOR PRODUCT LEADERSHIP AWARD
High
Low
Low High
Cu
sto
mer I
mp
act
Product Line Strength
DSM
Competitor2
Competitor3
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The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often, companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and demographic
analyses. The integration of these research
disciplines into the 360-degreeresearch
methodology provides an evaluation
platform for benchmarking industry
players and for identifying those performing at best-in-class levels.
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS
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Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan Awards follow a 10-step process to evaluate award candidates and assess
their fit with select best practice criteria. The reputation and integrity of the Awards are
based on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1 Monitor, target, and screen
Identify award recipient candidates from around the globe
Conduct in-depth industry research
Identify emerging sectors Scan multiple geographies
Pipeline of candidates who potentially meet all best-practice criteria
2 Perform 360-degree research
Perform comprehensive, 360-degree research on all candidates in the pipeline
Interview thought leaders and industry practitioners
Assess candidates’ fit with best-practice criteria
Rank all candidates
Matrix positioning all candidates’ performance relative to one another
3
Invite thought leadership in best practices
Perform in-depth examination of all candidates
Confirm best-practice criteria Examine eligibility of all
candidates Identify any information gaps
Detailed profiles of all ranked candidates
4
Initiate research director review
Conduct an unbiased evaluation of all candidate profiles
Brainstorm ranking options Invite multiple perspectives
on candidates’ performance Update candidate profiles
Final prioritization of all eligible candidates and companion best-practice positioning paper
5
Assemble panel of industry experts
Present findings to an expert panel of industry thought leaders
Share findings Strengthen cases for
candidate eligibility Prioritize candidates
Refined list of prioritized award candidates
6
Conduct global industry review
Build consensus on award candidates’ eligibility
Hold global team meeting to review all candidates
Pressure-test fit with criteria Confirm inclusion of all
eligible candidates
Final list of eligible award candidates, representing success stories worldwide
7 Perform quality check
Develop official award consideration materials
Perform final performance benchmarking activities
Write nominations Perform quality review
High-quality, accurate, and creative presentation of nominees’ successes
8
Reconnect with panel of industry experts
Finalize the selection of the best-practice award recipient
Review analysis with panel Build consensus Select winner
Decision on which company performs best against all best-practice criteria
9 Communicate recognition
Inform award recipient of award recognition
Present award to the CEO Inspire the organization for
continued success Celebrate the recipient’s
performance
Announcement of award and plan for how recipient can use the award to enhance the brand
10 Take strategic action
Upon licensing, company may share award news with stakeholders and customers
Coordinate media outreach Design a marketing plan Assess award’s role in future
strategic planning
Widespread awareness of recipient’s award status among investors, media personnel, and employees
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About Frost & Sullivan
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