APRIL 2016MARKET INSIGHTS

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ANALYTICS

SMART Wear

QUALITY SAVINGSFord Motor Company has developed a wearable Portable Quality Assurance Device to help its workers inspect new vehicles faster and more accurately. The pilot program, called an industry first by Ford, was rolled out in the company’s Valencia, Spain, facility. Previously, Valencia workers used a paper-based inspection system that required them to walk more than one kilometer daily to enter the data into desktop PCs. With the new wearable devices, quality checks can be completed on the spot using an Android app on a smartphone and a wrist-worn device. If and when necessary, the assembly line can be halted immediately.

The Bluetooth-enabled device contains specification information for every vehicle being manufactured and alerts workers about what inspections need done. Staff members can consult the wearable touchscreen and approve a vehicle immediately. Human error has been

reduced by seven percent and each quality check now takes seven seconds less, resulting in approximately 32 extra days of productivity savings each year.1 Initial feedback has been positive, with Ford planning to expand the pilot project to other locations.2

4-D SAFETYLos Angeles-based augmented-reality company, DAQRI, recently created a smart helmet for engineers. The objective of the helmet is to boost efficiency, productivity, and safety by providing workers with instructions in 4-D. DAQRI states that the system will facilitate better understanding of processes, with faster implementation of each step and fewer errors.

The helmet contains a sixth-generation Intel Core m7 processor, sophisticated sensing technology, and a camera array that captures 360-degree views. Additional features include thermal-vision capabilities that allow wearers to “see or passively record temperature data” in the real-world environment, which will assist engineers in identifying unsafe conditions in factories. Finally, wearers can connect to experts when necessary for operational assistance.3

Smart manufacturing is known for its positive effects on productivity and

economics as well as its impact in a company’s value chain. The latest in smart

technology—wearables—are helping manufacturing facilities become leaner,

more productive, more accurate, and safer for employees.

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SUPPLY CHAIN

PATENTED PROGRESSGoogle was recently awarded a patent for their autonomous-delivery platform, a driverless truck with individually locked compartments for packages. When trucks arrive at a destination, consumers enter a previously sent PIN to retrieve their packages. Alternatively, consumers have the option to open the compartment using their credit card number or a near-field communication reader. Once the customer is finished, the truck goes to the next location on its route or returns to its home base to be restocked. To date, Google has not commented on whether it plans to actually develop these automated delivery trucks.4

INNOVATIVE ADVANCESFord Motor Company is partnering with multiple universities, including the University of California-Berkeley, Carnegie Mellon University, Santa Clara University, and San Jose State, to accelerate its mobility initiatives. In collaboration with Stanford University, the Ford Research and Innovation Center in Palo Alto has 13 projects covering all 5 areas of Ford Smart Mobility planned for 2016—including connectivity, mobility, autonomous vehicles, customer experience, and data and analytics. Among the lab’s more philanthropically focused efforts is an initiative to find data-driven delivery solutions for health care products. Partnering with Riders for Health, Ford is exploring how to use relevant GPS data to make health care, vaccines, and medication delivery more efficient and accessible to people throughout rural Africa.5

Google, Amazon, and Ford are making big strides in the

development of autonomous delivery vehicles, harnessing the power of

driverless vehicles to enhance operations and elevate services delivered

to customers. From warehousing operations to last-mile delivery in

unexpected places, the impact of autonomous technology in logistics

could be significant.

DRIVERLESS Delivery

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hold the packaging in an area below the “cool touch” location. The Ready Meals are positioned to appeal to consumers’ desire for flavor and convenience, with taglines that include “Grab the Southwest by the pouch” and “All you need is a fork, a minute, and a microwave.”7

EGGS-CELLENT PACKAGINGWhen the New Egg Company identified an unmet need for a nutritious snack of eggs on the go, they partnered with RPC Design to develop a two-piece, thermoformed polypropylene system that allows consumers to boil and eat an egg within the packaging. Named Yowk, the product is a pre-cooked, runny boiled egg, that comes packaged with pre-cut slices of bread, salt, and a spoon.8 The pasteurized, free-range egg is pre-cooked in its shell using the sous-vide method.

PACKAGING

SEAMLESS Single Serve

TRANFORMING BOWLSPace Ready Meals from the Campbell Soup Company are packaged into colorfully printed, plastic stand-up pouches that consumers first heat in a microwave, then transform into ready-to-eat bowls. The package has a wide gusset (2.5 inches at the center), which keeps it stabilized during microwaving. Clear gusset film allows consumers to see the ingredients. “Cool touch” areas

are available to transport the pouch, but to open it,

consumers must

Transparency Market Research’s latest report

shows that consumer demand for ready-to-eat food

in convenient packaging has not slowed, triggering even more advances

in the retort-packaging market.6 Convenient single-serve packages that

transform into serving dishes and utensils, using retort packaging and other

creative solutions, are also projected to continue strong growth.

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To complete the cooking process, consumers remove the lid and all contents except the egg, adding boiling water to the round-pot container for five minutes. The lid then serves as an egg cup, and the spoon design includes a sharp tooth so consumers can remove the top of the egg.

New Egg Company and RPC Design needed to solve several packaging challenges before launching the Yowk. RPC Design created a hollowed section to fit the egg, then cut the lid’s underside to fit the top of an egg to keep it stable during transit. Packaging volume also needed to be precisely accurate to allow the proper amount of boiling water.9

ELEGANT EFFICIENCYInspired by an episode of Shark Tank, 201 Innovations has created an innovative prototype for a single-serve wine delivery system called Couple. Existing stemmed packages aren’t space efficient. But the more space-saving stemless glasses lack the appeal of the traditional wine-drinking experience. Couple solves the problem with a design that combines the best of both single-serve wine-packaging features. The

Couple product design interlocks two wine glasses with an integrated stem for efficient stacking and shrink wrapping; a stack of four interlocked glasses occupies the same footprint as a 750-ml wine bottle.

The foot of Couple’s glass doubles as a protective lid over the foil seal as well as a coaster. Couple is most efficient when shrink-wrapped in pairs, but wine companies will also have the option of choosing Couple Singles. While PET is one option under consideration for production models, the company is also exploring copolyesters as well as glass bowls bonded with a copolyester stem and foot. Fused-deposition modeling prototypes have been completed with Couple, and stereolithography will be used for the next prototype iteration. Packaging costs per unit are currently projected to fall between $0.31 and $0.36.10

PACKAGING

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SOCIAL CLIMBERWhen Lee Applbaum became the

CMO of Patrón Tequila in 2013, he stated that the company was

“nonexistent to nascent at best” in digital and social platforms—the company

didn’t even have a Twitter account. To help customers share stories about the

brand, Patrón created marketing campaigns that it believed were worth sharing. One campaign allowed people to virtually tour Hacienda Patrón in Jalisco, Mexico. Using Oculus Rift technology, viewers could visit agave fields, observe the bottling process, and more, all from a bee’s perspective. Patrón also took a 1927 Pullman railroad car owned by the company’s cofounder (one furnished like a palace) around the country, pairing food with tequila at events that triggered a subsequent flood of social media postings. The result? Patrón became Twitter’s number-one spirits brand and grew its market share from 60 to 70 percent over the course of the campaigns.12

MARKETING

SOCIAL MEDIA’S Anti-Data Appeal

USER-GENERATED ENDORSEMENTGoPro’s photo/video-of-the-day social media campaign focuses significant attention on the brand’s camera. The company invited its consumers to share what the brand meant to them through imagery. Campaign success occurred when extreme-sports enthusiasts realized that their “life-changing, adventurous experiences could be shared with everyone they love.” Users of GoPro’s photo website share pictures and videos, while liking, sharing, or commenting on others’ contributions. Photos and videos are organized by categories for easy searching, and the best and most popular are featured, which further increases likes, comments, and shares. Because all the content is user generated, the company is able to upsell users on optional camera attachments. In 2015 alone, GoPro received 150 video submissions per day, leading to more than 700 million YouTube views. The company’s Facebook page has 10 million likes with thousands of daily views, and Instagram images that average more than 200,000 likes apiece.13

The CMO Club, a community of senior marketing executives,

recently shared that some top marketers are moving away from heavy reliance

on data for decision-making and instead are focusing more significantly on

human interactions. Although the benefits of big data are undeniable—improved

consumer profiles, segmentation, attribution, and testing—as the internet

becomes increasingly cluttered with perfectly targeted messaging, consumers

now seem to be searching for more authentic interactions.11

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RECYCLING-FRIENDLY LABELIn 2013, 600 billion pounds of plastic was produced. As recycling efforts increased, a new problem also increased: contamination. In the United States alone, 28 percent of all PET gathered for recycling could not be recycled back to food-grade PET because of contamination.15 Pressure-sensitive labels (accounting for 5 to 8 percent of the PET bottle stream) serve as a leading source of contamination in the recycling stream because labels can be difficult to remove and/or the ink bleeds into the wash water.

In response to the challenge, The Coca-Cola Company and the Vienna-based company, Constantia, developed SpearRC, a recycling-friendly label for PET packaging. The label is compatible with PET-recycling processes, yet provides all the benefits of standard pressure-sensitive labels. Other advances include the label adhesive staying with the label when removed from the bottle, nonbleed ink, and the label’s ability to float in water, making retrieval easier. Coca-Cola plans to use the affordable label on all juices and juice drinks within the Simply Beverages

RECYCLING

PLASTICS Innovation

line sold in the United States. The technology has been in development since 2005 and is the first to be APR-recognized under its most recent PET pressure-sensitive label guidelines. The European PET Bottle Platform has also approved these labels for up to 10 percent of its PET bottles.

PETG ALTERNATIVEIndorama’s Polyclear EBM PET5507 resin can create bottles currently made from PETG that are compatible with standardized PET streams. The resin is capable of creating clear, high-gloss containers, with and without handles, that can be used for liquor, household cleaners, automotive fluids, and other chemicals. Indorama states that the resin innovation is the first commercialized product to provide a blow-molding alternative to PETG; and products made from it can carry the 1 resin code.16

A growing number of companies are finding creative

ways to improve upon the recyclability of plastics,

and the Association of Plastic Recyclers (APR)

honored five innovations in conjunction with Plastics

Recycling 2016. Products are honored due to recent

commercialization of a new product or technology that positively impacts

plastics recycling where a tangible benefit or innovative first can be identified.14

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www.havigs.com

Credits1Ramsey, J. (2016, February 19). Ford’s Wearable App Improves the Assembly Line Ford Invented, The Drive. Retrieved from http://www.thedrive.com2Ford.com. (2016, February 10). Innovative Smartphone App Saves Ford Factory Workers Daily 1‑Kilometer Walk, Enhances Quality and Efficiency, Ford Motor Company (press release). Retrieved from https://media.ford.com3Advantech.com. (2016, February 23). The First Augmented‑Reality Helmets that Make an Industrial Engineer a Real Iron Man, Advantech (press release). Retrieved from http://www2.advantech.com4Murphy, M. (2016, February 9). Google Wants to Deliver Packages from Self‑Driving Trucks, Quartz. Retrieved from http://qz.com 5SupplyChain247.com. (2015, December 15). Ford Begins Autonomous Vehicle Testing in California, Supply Chain 24/7. Retrieved from http://www.supplychain247.com6SBWire.com. (2016, February 15). Global Retort Packaging Market to Witness High Growth Owing to Increasing Demand for Ready to Eat Products, SB Wire (press release). Retrieved from http://www.sbwire.com 7Lingle, R. (2016, February 11). Pace Ready Meals Microwave Pouch Self‑Vents…, Packaging Digest. Retrieved from http://www.packagingdigest.com 8Camarata, M. (2015, August). Introducing Yowk, the Pre‑Boiled Egg for Those Too Dippy to Boil Their Own, Top Tidings. Retrieved from http://toptiding.com9Reynolds, P. (2016, February 12). Soft‑Boiled Egg Conveniently Available, Packaging World. Retrieved from http://www.packworld.com

10Lingle, R. (2016, January 19). Single‑Serve Stemmed Wine Packaging Coupled for Efficiency, Packaging Digest. Retrieved from http://www.packagingdigest.com11Krainik, P. (2016, January 11). Three Marketing Trends that May Surprise You and Shape 2016, The CMO Club. Retrieved from http://thecmoclub.com12Bazilian, E. (2015, October 18). How Patron’s CMO Found Success in Selling Its Substance Over Its Style, Adweek. Retrieved from http://www.adweek.com13Wordpress.com. (2016, February 8). GoPro “Photo a Day/Video a Day” Campaign 2015, Wellawear. Retrieved from https://wellawear.wordpress.com14PlasticsRecycling.com. (2016, February 11). APR News and Media, The Association of Plastic Recyclers. Retrieved from http://www.plasticsrecycling.org15CFlex.com. (n.d.). Pressure Sensitive Labels... Now Recyclable and Affordable, Constantia Flexibles. Retrieved from http://www.cflex.com/ 16Paben, J. (2016, February 4). Showcase Highlights Innovate Inventions, Resource Recycling. Retrieved from http://resource-recycling.com

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