argo corn starch - staging.files.cms.plus.com

ARGO CORN STARCH
Bob Larkin
ACH Food Companies, Inc.
History
The Amazing Yellow Box
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100 + years in same package (intro 1902)
Good billboard and graphic ability
Excellent shelf space and pallet utilization
Materials - folding carton stock (CCK) and a wax coated
unsealed paper liner
Package cost optimized over the years
Packaging Line equipment, SIG filler serial #1 and 2
Consumer complaints
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Poofing
Messy, Hard to measure from
Hard to open, no reseal feature
Hard to store in pantry
Package Innovation
Project AMBIR
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Goals:
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Improve the shelf presence
Deliver the consumer benefits
Contemporize the brand into the 21st century
Maintain the ARGO Corn Starch Brand
Heritage
 Identity
 Market leadership position
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Maintain loyal consumer base
Package Innovation
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Essentially no package change to the box since 1902
PL is in same package format as premium brand
Competitive set changed – Clabber Girl
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Launched in 2002
Re-sealable package
Consumer perception
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More premium
Fresher
Easier to use
Contemporary
Argo loyal consumer base told us the carton made their
use experience difficult and they were willing to explore
the competition
Declining market share had to be stopped
Competitive set packaging
New Package Research
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Qualitative research conducted to identify
benefits consumers were looking for and the
optimal package to deliver on these required
benefits
Benefits identified
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Maintain the freshness of corn starch
Reduce the inherent messiness of corn starch
Provide an easier way to measure the product
Be easy to store and be stackable
Maintain current loyal customers
Convert new customers, gain new distribution
Maintain the “yellow box” imagery
Numerous packaging options tested with
consumers
Package Options Tested
Package Options Tested
Package Options Tested
Package Options Tested
Packaging Options - WINNER
New Package Design Benefits
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Based on qualitative feedback
Benefits achieved:
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Maintain the freshness of corn starch
Reduce the inherent messiness of corn starch
Provide an easier way to measure the product
Be easy to store and be stackable
Maintain current loyal customers
Convert new customers, gain new distribution
Maintain the “yellow box” imagery
Quantitative testing showed higher scores than the
competition in preference and purchase intent
Fun Begins
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New packaging line too costly
Different strategy evaluated and
implement
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See Packaging World article
Locate in existing facility – Ankeny, IA
Capitol costs went from $4 million to $1.5
million
Project initiated in early 2008
First ship date July, 2008
Launch Benefits
Summary
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New Package Innovation
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Delivered on consumer benefit requirements
Stopped the market decline of product
Allowed new distribution to be gained
Allowed expansion of brand into additional
category segment
Achieved all sales/marketing hurdles
Sustained the ARGO brand for the long term
Sustainability
(Based on package modeling software)
CORN STARCH Package
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Argo 16oz Corn Starch – 8.5
CG 12oz Corn Starch – 2.0
Drivers:
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16oz vs. 12oz per package
Improved cube utilization
Recyclable bottle vs.. composite can
BAKING POWDER Package
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Argo 12oz Baking Powder – 6.0
CG 10oz Baking Powder – 4.5
Same drivers as Corn Starch packaging
Consumer Complaint
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Pica is a medical disorder characterized by an
appetite for substances largely non-nutritive
(e.g., clay, coal, soil, feces, chalk, paper, soap,
mucus, ash, gum etc.) or an abnormal appetite
for some things that may be considered foods,
such as food ingredients (e.g., flour, raw potato,
raw rice, starch, ice cubes, salt
The condition's name comes from the Latin word
for magpie, a bird which is reputed to eat almost
anything.[
THANK YOU
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QUESTIONS?