INTERACTIVE PACKAGING:

CONNECTING CONSUMER

WITH PACKAGING

Islem Yezza

Director of Sales and Marketing

Tuesday, October 20, 2015

THE DOMINANT CONSUMER?

Gen-Z and Gen-X (Millennials), together by far the largest demographic, like to keep it simple.

Millennials are defined to be tech-savvy, well-informed, mobile and

anxious to discover and experience something before anyone else.

Changing consumer behaviour will revolutionise packaging completely.

Consumers had

become hunters

rather than surfers

AGENDA

1. Interactive Packaging

2. NFC marketing

3. NFC in folding carton:

challenges and opportunities

4. Recent exemples

5. Netpak 360

6. Take-home

TECHNICAL & MARKETINGPackaging is a major component of brand advertising

Preserve Protect

Inform Transport

Extend Interact

INTERACTIVE PACKAGINGEngage and Create experience

Packaging represents a huge opportunity for brands to tap into. With the right application

and insights it can be turned into a powerful media channel that communicates and appeals

to a diverse audience, enhances your brand message and leverages whatever is relevant in

that moment.

According to a recent statement from Nestlé: technology is fundamentally changing the way

consumers buy its products and engage with its brands and that is, of course, valid for all

and every consumer packaged goods company (CPGC) in the world.

And Nestlé continues with: “As technology is fundamentally changing the way consumers

buy products and engage with brands, there is a need to create highly engaging and

meaningful experiences online”.

As the world is becoming connected,

consumers are expecting their favourite

brands to do more than deliver the best

product

Consumers want to have a direct connection

with their brands, and a direct engagement

For brand owners: Able to communicate and

engage with their audience based on the

physical product they are selling. This has not

really been possible before. Being able to

create a dialogue between the consumer and

the product is just amazing.

NFC MARKETINGHere it Comes!

INTERACTIVE PRINT TECHNOLOGIESNFC, Just one tap

Source: NFC Forum

NFC QR Code Image

Recognition

Time required to read 1 second 15+ seconds 15+ seconds

Outside app required No Yes Yes

Graphic designInvisible or

sticker

Visible, should

be as large as

possible

Invisible

NFC “tap” engagement level was 12 times

higher than for QR codes

NFC is a frictionless technology – you don’t

have to download an app. The passive tags and require no battery

NFC-ENABLED PACKAGINGThe “game-changing technology”

Brand owners will be able to use NFC to create a bridge and an

infrastructure between the traditional physical world and what can

be added as a new experience in the digital world.

NFC remains the strongest player in the marketing and retail area

because it’s cheap, flexible, doesn’t need an app and is all

about PULL, so empowers the consumer.

One of the other benefits of NFC technology is it lacks the

intrusiveness present with other forms of communication like

Bluetooth and i-beacons.

NFC MARKET Almost 12 billion units in 2015

Semico Research is revealing that NFC growth in mobile devices,

wearables and cars will fuel a 15 percent CAGR from 2014 to 2020.

The smart phone, enabled with NFC, is growing at a rapid rate and by

2016 is estimated to capture over 50% of the market

Smart cards make up over 90 percent of the NFC market at almost 12

billion units in 2015, but the technology’s use continues to evolve.

NFC chips and tags can also be used as a means of advertising or

exchanging information on notice boards, packaging, and the like. With

this in mind, it is not surprising to see that, according to the same report,

the NFC market is to ship 23 billion units in 2020.

INTERACTIVE PACKAGING“Internet of Thing” (IoT)

The ‘Internet of Things’ involves the integration

of electronic intelligence into everyday items,

enabling them to become interactive in a way

that improves the consumer experience, as well

as the ability of brands and retailers to interact

directly with consumers.

NFC is perfectly placed to become the technology that creates the

IoT but will not be alone in doing this for the foreseeable future.

NFC technology can significantly enhance the value of packaging

by connecting the brand owner and the consumer to the “Internet

of Everything”.

NFC OPPORTUNITIESConnect to your customer

1. Product information for health conditions such as diabetes, heart disease, peanut and gluten allergies or weight loss.

2. Better Product Labeling for older eyes is an opportunity through NFC ; it may also offer a new level of

communication to satisfy FDA label requirements

3. New ideas for recipes or how to tips, matching wine and food, or asking an expert opinion in many categories either

before or after product purchase

4. Entertainment is a wide open opportunity with NFC, ranging from a brand engaging customers

with a great joke (my favorite idea!), to offering suggestions on how to have fun with the product

5. Gaming could involve participation in a challenge or adventure (whether in the store or out in

the world) where tapping with your phone is part of the activity

6. New Voices of real people or communities with something to say can be connected to

customers –Mom bloggers speak out on baby food perhaps?

7. Track & Trace counterfeit products or diverted product outside of the intended market

CHALLENGESCost of integration

Until the cost of each NFC tag falls to just a few cents barcodes will

still hold an important role in tagging low value items.

As more phones are equipped with NFC the value added by the one

tap, effortless nature of each interaction will ultimately make NFC

the technology of choice and its use will become widespread.

Introducing NFC tags into Folding carton adds a little extra. As for

everything else, costs (agency fees, production, print, media) for

producing a campaign are the same as you’d expect to spend.

Additional costs include handling and analysing data, but that would

normally come out of a different budget.

Marketing cost NOT a Packaging cost

As more things get connected, concerns over data privacy and security

will escalate.

The close-range connectivity will not replace Wi-Fi or Bluetooth and is

not a universal technology, as companies create personalized software

systems that limit product pairing.

Currently, there are not a lot of smartphones that have the NFC

technology embedded, limiting its use as a marketing technology.

CHALLENGESSecurity and data privacy

Machine speed: able to place and encode NFC

tags at production speed (Folding gluer)

By the time enough consumers have access to

NFC-enable devices (and understand how to use

them) and at the same time brands understand

how to effectively exploit mobile technologies

and content either at the point of sale or for the

delivery of relevant, functional content in

secondary or alternative engagement

opportunities will another, easier to access and

use technology have already supplanted it?

CHALLENGESTechnical

THE SHELFTALKERSHigher engagement levels

Kraft recently piloted an NFC program with results

showing significantly higher engagement levels

compared to QR codes.

NFC chips were placed in signage on the shelves right

in front of Kraft cheese and Nabisco cookie brands.

The shelftalkers: access dynamic recipe content,

download the i-Food Assistant app or share on FB.

SMART BOTTLE with ‘game-changing’ NFC tags

They cite a variety of reasons, either singly or in

combination, such as consumer engagement, brand

protection and supply chain insights.

Diageo, Rémy Martin and Ferngrove Wine have all introduced liquor

bottles tagged with NFC technology.

REMINDERExpiration date

An embedded antenna fits into a makeup container's packaging to

transmit information to customers.

With NFC, reminders can also be sent out that the product is no longer

optimal or has reached its expiration date.

If a mascara tube is used over the course of 3 months, customers can

be reached via notification at around 2.5 months that the product is

nearing expiration.

.

INCREASE YOUR SALES WITH

INTERACTIVE PACKAGING!

1. The timing is ideal to merge new technologies with conventional Print,

and to maximize your print investment.

2. NFC will create a big opportunity to connect to your customer in the

store and in the home.

3. NFC technology will make interactions simpler and faster than QR

Codes.

4. Interactivity between the package and the consumer is the next avenue

to build the romance between your brands and your customers. But

you will have to have strong story content and a unified strategy to

leverage it rather than chase it.

NETPAK 360IT'S TIME TO RAISE THE BAR OF BRAND

ENGAGEMENT

YPRINT Technology™

We can place and encode NFC tags into

your boxes, create and manage all aspects

of your campaign, from strategy, creativity,

technology, media and execution to data

analytics.

YPRINT Technology™ enables each and

every brand to build durable customer

loyalty while gaining highly valuable

consumer insight.

YPRINT Technology™ provides Brand

marketers with customized fit-for-print

programs designed to turn customers into

“brand enthusiasts’’.

OUR PURPOSE IS TO TAKE

YOUR BRAND TO THE HEART

OF YOUR CUSTOMERS

Islem Yezza

Director of Sales and Marketing

Email: iyezza@netpak.com

T 1.866.399.8544

9055, Des Inventions, Montreal

Québec H1J 3A7

YOUR PARTNER FOR SUCCESSCommitment | Transparency | Flexibility