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A White Paper Published by The New Relationship of Packaging to the Product Lifecycle

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Page 1: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

A White Paper Published by

The New Relationship of Packaging to the

Product Lifecycle

Page 2: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning
Page 3: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

1

Abstract Every product has a certain lifecycle that spans from introduction to decline. Product development teams

pay close attention to all the phases because the handling of each can have a significant effect on

business performance. An accurate analysis and understanding of a product’s lifecycle can help a

company:

• Realize when it’s time to introduce and withdraw a product from a market

• Know its position in the market compared to competitors

• Understand the product’s success or failure

Different members of the team have different concerns and responsibilities, but collectively they are all

striving for the same outcome—maximizing performance throughout each phase with the greatest

possible cost efficiencies.

For example, research and development is constantly driving product innovation throughout the product

lifecycle, while package engineering looks for stability related to the process and materials used as

lifecycle shifts occur. Supply chain professionals seek consistency in sourcing that ensures delivery won’t

be negatively impacted. Likewise, marketers increasingly realize the complexities of effectively managing a

product lifecycle.

Labels and Flexible Packaging, once considered to be incidental components of the lifecycle, are gaining

more attention for a variety of reasons, but primarily because new technologies are enabling solutions that

complement the various lifecycle phases.

Understanding and successfully managing a product’s lifecycle requires strategic thinking at each phase.

Opportunities to make and lose money abound, while the challenges become ever greater with the

proliferation of SKUs and speed of change in today’s marketplace.

How a product is promoted, priced, distributed or modified can vary significantly throughout its lifecycle.

The objective of this white paper is to demonstrate how the product development team can apply solid

cost- and time-effective solutions to every phase of the product lifecycle.

AWT Labels & Packaging • White Paper

“Once considered to be incidental components of the product lifecycle, labels and flexible packaging

are gaining more attention.”

Label and Flexible Packaging Solution ConsiderationsRegardless of the lifecycle phase, there are some packaging considerations that are generally important to

marketers. These include your label/flexible packaging program’s ability to:

Accelerate time to market. Speed tends to dominate today’s new product development, so your

label program must be flexible to respond to production requirements. It helps to assign a tangible

dollar value to a week’s delay to grasp the cost at stake. That can help you make a decision on

whether to use a production method with a higher cost per thousand but with a faster turnaround

to generate more sales. “In today’s ‘speed of thought’ mentality, getting your product to market first

is absolutely critical to your sales and profit success (think Apple’s iPad 3),” according to Robyn M.

Sachs, president of RMR & Associates, which specializes in new product launches.

Respond quickly to consumer demand. No one is a perfect forecaster of market demand and it

can change quickly, especially (though not exclusively) at the initial stages. You need access to a

variety of production methods and adequate capacity to be able to respond.

Accommodate last minute changes. Lots of things can happen late in the game when you’re

introducing a new product, or within any phase for that matter. Technologies, systems and the

mindsets of your partners can play an important role in the flexibility and nimbleness of your

label/flexible packaging solutions.

Support just-in-time manufacturing. Product development teams work hard to ensure that all

product components are synchronized for precisely timed manufacturing, packaging and

distribution. Shortcomings are usually costly, and product labels and packaging need to be

available when and where they are needed.

Accommodate zero, reduced or exact inventory. There’s an ever greater awareness of

inventory costs, whether or not a company is using just-in-time manufacturing. The best label

solutions minimize or eliminate inventory while maintaining responsiveness to demand.

Improve supply chain management. Good product lifecycle management means managing the

extended supply chain through every phase. This often requires consolidating label/flexible

packaging sources for better pricing, to encourage continuous improvement and to gain the

intimate teamwork needed for optimum control and performance.

Incorporate sustainability. Consumers are increasingly concerned about the environmental

footprint of your product and its packaging. A sustainable label solution goes well beyond

substrates to include the entire manufacturing, inventory and distribution processes.

The New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging

Provide versioning and/or personalization. Consumers expect products that speak to

them, and label/packaging solutions need to be able to offer whatever level of versioning and/or

personalization fits the particular lifecycle phase. For example in the mature laundry detergent

category, Proctor & Gamble (P&G) sells seven different brands in the U.S. The reason is that

different people want varying combinations of benefits from the products they purchase.

Consumers use laundry detergents to get their clothes clean. But they also want other things

from their detergents, such as economy, fabric softening, bleaching power, strength or

mildness, more or fewer suds, and fresh smell are only a few of those features. The point is that

people have different priorities for each benefit. Thus, there are segments of laundry detergent

buyers, and each segment seeks a special benefit combination. In response, companies create

or acquire separated brands for the same product to expand their customer base. In other

market categories, they may be able to offer versioning of a single brand. The point is that,

increasingly, forms of versioning and/or personalization are being taken down to even the local

level, tailoring brands to the needs and wants of local customer groups—cities, neighborhoods

and even specific stores.

Lower total applied costs. Cost-per-thousand-thinking tends to lower profitability compared

to a total applied cost approach that takes into consideration the sum of all the costs

associated with every activity of the supply stream . A label solution that relies solely on unit

pricing can overshadow other more important considerations such as timing or inventory costs.

For more in-depth information on this topic, please request a copy of our white paper,

Understanding the Total Applied Cost of Label Procurement.

Creating the Right Technology Response to Lifecycle Management The digital revolution is impacting our lives and businesses at an accelerated pace as the following chart

illustrates.

Technology Adoption Rate Accelerates

Label solutions are no exception. Many product marketers still tend to regard print technologies as old

school. In truth, digital dominates every phase of the label production process from collaborative

electronic workflows through sophisticated digital printing systems that enable variable data-driven

information on the package.

According to Hewlett-Packard, manufacturers of the HP Indigo digital printing systems, digital printing

provides a number of advantages as shown in the diagram above.

Page 4: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

Abstract Every product has a certain lifecycle that spans from introduction to decline. Product development teams

pay close attention to all the phases because the handling of each can have a significant effect on

business performance. An accurate analysis and understanding of a product’s lifecycle can help a

company:

• Realize when it’s time to introduce and withdraw a product from a market

• Know its position in the market compared to competitors

• Understand the product’s success or failure

Different members of the team have different concerns and responsibilities, but collectively they are all

striving for the same outcome—maximizing performance throughout each phase with the greatest

possible cost efficiencies.

For example, research and development is constantly driving product innovation throughout the product

lifecycle, while package engineering looks for stability related to the process and materials used as

lifecycle shifts occur. Supply chain professionals seek consistency in sourcing that ensures delivery won’t

be negatively impacted. Likewise, marketers increasingly realize the complexities of effectively managing a

product lifecycle.

Labels and Flexible Packaging, once considered to be incidental components of the lifecycle, are gaining

more attention for a variety of reasons, but primarily because new technologies are enabling solutions that

complement the various lifecycle phases.

Understanding and successfully managing a product’s lifecycle requires strategic thinking at each phase.

Opportunities to make and lose money abound, while the challenges become ever greater with the

proliferation of SKUs and speed of change in today’s marketplace.

How a product is promoted, priced, distributed or modified can vary significantly throughout its lifecycle.

The objective of this white paper is to demonstrate how the product development team can apply solid

cost- and time-effective solutions to every phase of the product lifecycle.

Label and Flexible Packaging Solution ConsiderationsRegardless of the lifecycle phase, there are some packaging considerations that are generally important to

marketers. These include your label/flexible packaging program’s ability to:

Accelerate time to market. Speed tends to dominate today’s new product development, so your

label program must be flexible to respond to production requirements. It helps to assign a tangible

dollar value to a week’s delay to grasp the cost at stake. That can help you make a decision on

whether to use a production method with a higher cost per thousand but with a faster turnaround

to generate more sales. “In today’s ‘speed of thought’ mentality, getting your product to market first

is absolutely critical to your sales and profit success (think Apple’s iPad 3),” according to Robyn M.

Sachs, president of RMR & Associates, which specializes in new product launches.

Respond quickly to consumer demand. No one is a perfect forecaster of market demand and it

can change quickly, especially (though not exclusively) at the initial stages. You need access to a

variety of production methods and adequate capacity to be able to respond.

Accommodate last minute changes. Lots of things can happen late in the game when you’re

introducing a new product, or within any phase for that matter. Technologies, systems and the

mindsets of your partners can play an important role in the flexibility and nimbleness of your

label/flexible packaging solutions.

Support just-in-time manufacturing. Product development teams work hard to ensure that all

product components are synchronized for precisely timed manufacturing, packaging and

distribution. Shortcomings are usually costly, and product labels and packaging need to be

available when and where they are needed.

Accommodate zero, reduced or exact inventory. There’s an ever greater awareness of

inventory costs, whether or not a company is using just-in-time manufacturing. The best label

solutions minimize or eliminate inventory while maintaining responsiveness to demand.

Improve supply chain management. Good product lifecycle management means managing the

extended supply chain through every phase. This often requires consolidating label/flexible

packaging sources for better pricing, to encourage continuous improvement and to gain the

intimate teamwork needed for optimum control and performance.

Incorporate sustainability. Consumers are increasingly concerned about the environmental

footprint of your product and its packaging. A sustainable label solution goes well beyond

substrates to include the entire manufacturing, inventory and distribution processes.

Provide versioning and/or personalization. Consumers expect products that speak to

them, and label/packaging solutions need to be able to offer whatever level of versioning and/or

personalization fits the particular lifecycle phase. For example in the mature laundry detergent

category, Proctor & Gamble (P&G) sells seven different brands in the U.S. The reason is that

different people want varying combinations of benefits from the products they purchase.

Consumers use laundry detergents to get their clothes clean. But they also want other things

from their detergents, such as economy, fabric softening, bleaching power, strength or

mildness, more or fewer suds, and fresh smell are only a few of those features. The point is that

people have different priorities for each benefit. Thus, there are segments of laundry detergent

buyers, and each segment seeks a special benefit combination. In response, companies create

or acquire separated brands for the same product to expand their customer base. In other

market categories, they may be able to offer versioning of a single brand. The point is that,

increasingly, forms of versioning and/or personalization are being taken down to even the local

level, tailoring brands to the needs and wants of local customer groups—cities, neighborhoods

and even specific stores.

Lower total applied costs. Cost-per-thousand-thinking tends to lower profitability compared

to a total applied cost approach that takes into consideration the sum of all the costs

associated with every activity of the supply stream . A label solution that relies solely on unit

pricing can overshadow other more important considerations such as timing or inventory costs.

For more in-depth information on this topic, please request a copy of our white paper,

Understanding the Total Applied Cost of Label Procurement.

Creating the Right Technology Response to Lifecycle Management The digital revolution is impacting our lives and businesses at an accelerated pace as the following chart

illustrates.

Technology Adoption Rate Accelerates

Label solutions are no exception. Many product marketers still tend to regard print technologies as old

school. In truth, digital dominates every phase of the label production process from collaborative

electronic workflows through sophisticated digital printing systems that enable variable data-driven

information on the package.

According to Hewlett-Packard, manufacturers of the HP Indigo digital printing systems, digital printing

provides a number of advantages as shown in the diagram above.

Page 5: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

3

Abstract Every product has a certain lifecycle that spans from introduction to decline. Product development teams

pay close attention to all the phases because the handling of each can have a significant effect on

business performance. An accurate analysis and understanding of a product’s lifecycle can help a

company:

• Realize when it’s time to introduce and withdraw a product from a market

• Know its position in the market compared to competitors

• Understand the product’s success or failure

Different members of the team have different concerns and responsibilities, but collectively they are all

striving for the same outcome—maximizing performance throughout each phase with the greatest

possible cost efficiencies.

For example, research and development is constantly driving product innovation throughout the product

lifecycle, while package engineering looks for stability related to the process and materials used as

lifecycle shifts occur. Supply chain professionals seek consistency in sourcing that ensures delivery won’t

be negatively impacted. Likewise, marketers increasingly realize the complexities of effectively managing a

product lifecycle.

Labels and Flexible Packaging, once considered to be incidental components of the lifecycle, are gaining

more attention for a variety of reasons, but primarily because new technologies are enabling solutions that

complement the various lifecycle phases.

Understanding and successfully managing a product’s lifecycle requires strategic thinking at each phase.

Opportunities to make and lose money abound, while the challenges become ever greater with the

proliferation of SKUs and speed of change in today’s marketplace.

How a product is promoted, priced, distributed or modified can vary significantly throughout its lifecycle.

The objective of this white paper is to demonstrate how the product development team can apply solid

cost- and time-effective solutions to every phase of the product lifecycle.

Label and Flexible Packaging Solution ConsiderationsRegardless of the lifecycle phase, there are some packaging considerations that are generally important to

marketers. These include your label/flexible packaging program’s ability to:

Accelerate time to market. Speed tends to dominate today’s new product development, so your

label program must be flexible to respond to production requirements. It helps to assign a tangible

dollar value to a week’s delay to grasp the cost at stake. That can help you make a decision on

whether to use a production method with a higher cost per thousand but with a faster turnaround

to generate more sales. “In today’s ‘speed of thought’ mentality, getting your product to market first

is absolutely critical to your sales and profit success (think Apple’s iPad 3),” according to Robyn M.

Sachs, president of RMR & Associates, which specializes in new product launches.

Respond quickly to consumer demand. No one is a perfect forecaster of market demand and it

can change quickly, especially (though not exclusively) at the initial stages. You need access to a

variety of production methods and adequate capacity to be able to respond.

Accommodate last minute changes. Lots of things can happen late in the game when you’re

introducing a new product, or within any phase for that matter. Technologies, systems and the

mindsets of your partners can play an important role in the flexibility and nimbleness of your

label/flexible packaging solutions.

Support just-in-time manufacturing. Product development teams work hard to ensure that all

product components are synchronized for precisely timed manufacturing, packaging and

distribution. Shortcomings are usually costly, and product labels and packaging need to be

available when and where they are needed.

Accommodate zero, reduced or exact inventory. There’s an ever greater awareness of

inventory costs, whether or not a company is using just-in-time manufacturing. The best label

solutions minimize or eliminate inventory while maintaining responsiveness to demand.

Improve supply chain management. Good product lifecycle management means managing the

extended supply chain through every phase. This often requires consolidating label/flexible

packaging sources for better pricing, to encourage continuous improvement and to gain the

intimate teamwork needed for optimum control and performance.

Incorporate sustainability. Consumers are increasingly concerned about the environmental

footprint of your product and its packaging. A sustainable label solution goes well beyond

substrates to include the entire manufacturing, inventory and distribution processes.

Provide versioning and/or personalization. Consumers expect products that speak to

them, and label/packaging solutions need to be able to offer whatever level of versioning and/or

personalization fits the particular lifecycle phase. For example in the mature laundry detergent

category, Proctor & Gamble (P&G) sells seven different brands in the U.S. The reason is that

different people want varying combinations of benefits from the products they purchase.

Consumers use laundry detergents to get their clothes clean. But they also want other things

from their detergents, such as economy, fabric softening, bleaching power, strength or

mildness, more or fewer suds, and fresh smell are only a few of those features. The point is that

people have different priorities for each benefit. Thus, there are segments of laundry detergent

buyers, and each segment seeks a special benefit combination. In response, companies create

or acquire separated brands for the same product to expand their customer base. In other

market categories, they may be able to offer versioning of a single brand. The point is that,

increasingly, forms of versioning and/or personalization are being taken down to even the local

level, tailoring brands to the needs and wants of local customer groups—cities, neighborhoods

and even specific stores.

Lower total applied costs. Cost-per-thousand-thinking tends to lower profitability compared

to a total applied cost approach that takes into consideration the sum of all the costs

associated with every activity of the supply stream . A label solution that relies solely on unit

pricing can overshadow other more important considerations such as timing or inventory costs.

For more in-depth information on this topic, please request a copy of our white paper,

Understanding the Total Applied Cost of Label Procurement.

Creating the Right Technology Response to Lifecycle Management The digital revolution is impacting our lives and businesses at an accelerated pace as the following chart

illustrates.

Technology Adoption Rate Accelerates

Label solutions are no exception. Many product marketers still tend to regard print technologies as old

school. In truth, digital dominates every phase of the label production process from collaborative

electronic workflows through sophisticated digital printing systems that enable variable data-driven

information on the package.

According to Hewlett-Packard, manufacturers of the HP Indigo digital printing systems, digital printing

provides a number of advantages as shown in the diagram above.

AWT Labels & Packaging • White Paper

Page 6: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

Abstract Every product has a certain lifecycle that spans from introduction to decline. Product development teams

pay close attention to all the phases because the handling of each can have a significant effect on

business performance. An accurate analysis and understanding of a product’s lifecycle can help a

company:

• Realize when it’s time to introduce and withdraw a product from a market

• Know its position in the market compared to competitors

• Understand the product’s success or failure

Different members of the team have different concerns and responsibilities, but collectively they are all

striving for the same outcome—maximizing performance throughout each phase with the greatest

possible cost efficiencies.

For example, research and development is constantly driving product innovation throughout the product

lifecycle, while package engineering looks for stability related to the process and materials used as

lifecycle shifts occur. Supply chain professionals seek consistency in sourcing that ensures delivery won’t

be negatively impacted. Likewise, marketers increasingly realize the complexities of effectively managing a

product lifecycle.

Labels and Flexible Packaging, once considered to be incidental components of the lifecycle, are gaining

more attention for a variety of reasons, but primarily because new technologies are enabling solutions that

complement the various lifecycle phases.

Understanding and successfully managing a product’s lifecycle requires strategic thinking at each phase.

Opportunities to make and lose money abound, while the challenges become ever greater with the

proliferation of SKUs and speed of change in today’s marketplace.

How a product is promoted, priced, distributed or modified can vary significantly throughout its lifecycle.

The objective of this white paper is to demonstrate how the product development team can apply solid

cost- and time-effective solutions to every phase of the product lifecycle.

Label and Flexible Packaging Solution ConsiderationsRegardless of the lifecycle phase, there are some packaging considerations that are generally important to

marketers. These include your label/flexible packaging program’s ability to:

Accelerate time to market. Speed tends to dominate today’s new product development, so your

label program must be flexible to respond to production requirements. It helps to assign a tangible

dollar value to a week’s delay to grasp the cost at stake. That can help you make a decision on

whether to use a production method with a higher cost per thousand but with a faster turnaround

to generate more sales. “In today’s ‘speed of thought’ mentality, getting your product to market first

is absolutely critical to your sales and profit success (think Apple’s iPad 3),” according to Robyn M.

Sachs, president of RMR & Associates, which specializes in new product launches.

Respond quickly to consumer demand. No one is a perfect forecaster of market demand and it

can change quickly, especially (though not exclusively) at the initial stages. You need access to a

variety of production methods and adequate capacity to be able to respond.

Accommodate last minute changes. Lots of things can happen late in the game when you’re

introducing a new product, or within any phase for that matter. Technologies, systems and the

mindsets of your partners can play an important role in the flexibility and nimbleness of your

label/flexible packaging solutions.

Support just-in-time manufacturing. Product development teams work hard to ensure that all

product components are synchronized for precisely timed manufacturing, packaging and

distribution. Shortcomings are usually costly, and product labels and packaging need to be

available when and where they are needed.

Accommodate zero, reduced or exact inventory. There’s an ever greater awareness of

inventory costs, whether or not a company is using just-in-time manufacturing. The best label

solutions minimize or eliminate inventory while maintaining responsiveness to demand.

Improve supply chain management. Good product lifecycle management means managing the

extended supply chain through every phase. This often requires consolidating label/flexible

packaging sources for better pricing, to encourage continuous improvement and to gain the

intimate teamwork needed for optimum control and performance.

Incorporate sustainability. Consumers are increasingly concerned about the environmental

footprint of your product and its packaging. A sustainable label solution goes well beyond

substrates to include the entire manufacturing, inventory and distribution processes.

Provide versioning and/or personalization. Consumers expect products that speak to

them, and label/packaging solutions need to be able to offer whatever level of versioning and/or

personalization fits the particular lifecycle phase. For example in the mature laundry detergent

category, Proctor & Gamble (P&G) sells seven different brands in the U.S. The reason is that

different people want varying combinations of benefits from the products they purchase.

Consumers use laundry detergents to get their clothes clean. But they also want other things

from their detergents, such as economy, fabric softening, bleaching power, strength or

mildness, more or fewer suds, and fresh smell are only a few of those features. The point is that

people have different priorities for each benefit. Thus, there are segments of laundry detergent

buyers, and each segment seeks a special benefit combination. In response, companies create

or acquire separated brands for the same product to expand their customer base. In other

market categories, they may be able to offer versioning of a single brand. The point is that,

increasingly, forms of versioning and/or personalization are being taken down to even the local

level, tailoring brands to the needs and wants of local customer groups—cities, neighborhoods

and even specific stores.

Lower total applied costs. Cost-per-thousand-thinking tends to lower profitability compared

to a total applied cost approach that takes into consideration the sum of all the costs

associated with every activity of the supply stream . A label solution that relies solely on unit

pricing can overshadow other more important considerations such as timing or inventory costs.

For more in-depth information on this topic, please request a copy of our white paper,

Understanding the Total Applied Cost of Label Procurement.

Creating the Right Technology Response to Lifecycle Management The digital revolution is impacting our lives and businesses at an accelerated pace as the following chart

illustrates.

Technology Adoption Rate Accelerates

Label solutions are no exception. Many product marketers still tend to regard print technologies as old

school. In truth, digital dominates every phase of the label production process from collaborative

electronic workflows through sophisticated digital printing systems that enable variable data-driven

information on the package.

According to Hewlett-Packard, manufacturers of the HP Indigo digital printing systems, digital printing

provides a number of advantages as shown in the diagram above.

Years from first commercialization to sale of 100 million units

TelegraphFixed line telephones

Digital fixed lineCarphone

Analog mobileDigital mobileSmartphones

CalculatorMainframe

Mini-computerDesktop PC

Notebook PCPDA

Smartphones

RadioB&W TVColor TVCRT TVLCD TV

PhonographCassette

CDMP3

1850 1870 1890 1910 1930 1950 1970 1990 2010

Page 7: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

DESIGN LAUNCH REPLENISH PHASE OUT REDESIGN

5

Digital Techniques Help Inform the ConsumerMobile barcodes, which are special two-dimensional barcodes that consumers scan with their

smartphones, can provide valuable additional information at the point of sale or use, while making

your label interactive. Mobile barcodes enable access to many types of information including URLs,

product and service information, product videos and almost any other type of data. They’re great in a

new product introduction for connecting consumers to video demos, testimonials and other content

that would help in the decision-making process.

Studies show that all age demographic groups, including those 55+, are increasingly using mobile

barcodes as smartphone usage rapidly expands. Still the prime categories trend younger, with 35 to

44-year-olds demonstrating the most usage, followed closely by those 25-34 and 18-24. A report from

Mobio Identity Systems that looked at gender shows that 68 percent of mobile barcode users are

female. The report suggests that women show a higher interest in the ease of collecting information on

products and services, which is the number one use of mobile barcodes, as well as entering contests

and making purchases using theirs smartphones.

Digital label solutions can also be customized to a specific customer group, such

as a user demographic, with special regional offers that would appeal to a consumer

group. A US Postal Service Diary study concluded a personalized color marketing

message can lead to three times the interest in the product and increase

your response rate.

Influence of Digital Printing Systems on Product Lifecycle Management

Yet for all the advantages digital technology now brings to product lifecycle management, many of the best

solutions blend different technologies to create the optimum solution for each phase. There are often times

when flexography or digital print makes the most sense. The key to a well-conceived solution is to use the

technologies to support one another in meeting market demand within your business objective parameters.

There are also technologies and techniques that go beyond the printing process itself in providing the ideal

label for each product lifecycle phase. Here is an overview of the traditional product lifecycle phases with

ideas about how your label and flexible packaging solutions can contribute to greater management

effectiveness.

Product Introduction Phase

Overview: This is a high-risk phase where many products fail. Competition may

be minimal or non-existent, but profits may be as well. Sales usually grow slowly,

and production costs are high because of low volume and the sometimes

frequent product modifications needed as you respond to market feedback.

Marketing costs are also high as you develop product awareness, inform

consumers about the potential benefits and employ intensive personal selling to

channel partners.

Solution: Digital printing usually makes the most sense during product introduction for a number of

reasons. To begin with, digital systems feature fast turnarounds and are especially well-suited to producing

shorter runs economically. But their biggest advantage at this phase might be flexibility. With no printing

plates involved and true on-demand capabilities, digital systems are able to easily and cost-effectively

change labels as product modifications might occur and can minimize or sometimes even eliminate

inventory requirements. Digital technologies also can be calibrated to appear like flexo to make the process

interchangeable based on run quantity. The net result of the label quality will look consistent using digital or

traditional label print methods.

It’s also important that your packaging and labels should meet your pricing strategy. Some product

marketing teams adopt a penetration pricing strategy that features a low initial price with the idea of

increasing trials and generating high sales volumes and revenues. Others use a skimming pricing strategy

that sets a high initial price with the objective of recouping development and marketing costs more quickly.

They aim at less price sensitive customers and early adopters. Higher-end electronic products like

smartphones and tablet computers are good examples of this strategy.

From a packaging and label standpoint, it’s particularly important with skimming price strategies that your

presentation is consistent with a premium product.

Product Growth Phase

Overview: This is the phase that every new product marketer hopes to reach.

Sales are growing nicely and profits are healthy (in fact, they tend to peak),

though the product’s success encourages many competitors to enter the

market and causes prices to fall. But on the positive side, development costs

have been recovered and high sales volumes tend to bring about economies of

scale that help compensate for lower prices. From a marketing standpoint,

gaining wider distribution is important, particularly toward the end of this phase,

because companies want to dominate points of sale and provide more people

with opportunities to buy. Thus, heavy brand advertising with an emphasis on

differentiating the brands tends to occur. Clearly a company with a highly

recognized brand such as Apple provides an advantage when other

competitors enter the market.

Solution: Increased volumes typically bring flexo package printing technologies into play. Even though

digital technologies are constantly improving and reaching upward in their volume capabilities, they are still

not competitive for longer run lengths. But this is also a phase where it’s easy to get sloppy because sales

are high. You still need to pay close attention to controlling package inventory and maximizing your

inventory turns. Past studies from InfoGroup, a data and marketing services company, point to 17 percent

to 34 percent obsolescence rates for print materials.

Generally it makes more sense to move as far as possible toward a demand-based solution—that

counteracts forecast uncertainty. This strategy incorporates both digital and conventional print platforms

that minimize inventory levels while maintaining a high degree of responsiveness. These business models

also include interacting with real-time customer production demand, establishing minimum/maximum

inventory by part and agreeing to number of weeks of inventory that can be produced and held.

Product Maturity Phase

Overview: This is the longest of the four phases,

with some products lasting over 100 years. Sales

continue to grow during this phase but at a lower rate

as the market approaches saturation. Marginal

competitors begin to drop out as prices and profit

margins fall, and companies need to be careful to

avoid price wars. The emphasis becomes more on

product style as opposed to function, and annual new

model introductions are common. This is also a period

when marketers tend to extend product lines to

increase customer choice while reaching a broader

market (including new global markets), improving

profits and gaining greater market share. Generally the

mature phase requires heavy promotions to both

channel partners and consumers. A good example of

extending base consumer products includes marketing bleach in different scents and package sizes vs.

one choice with limited packages. During earlier phases, there was only one choice in the bleach category.

Solution: The whole concept of line extensions creates challenges for your package solution. You may be

offering a broader range of sizes, or perhaps several different quality levels (good, better, best) to reach end

customers at various price points. All of this adds complexity to your label requirements and further makes

the case for having access to flexo and digital print platforms. Moving from platform to platform also means

that your supplier needs a high level of color management expertise to ensure that your color reproduction

is consist regardless of the printing technology employed.

In addition, you might consider reinvigorating your product by making it more ecologically sensitive. That

move should include your packaging and labeling for a consistent message about your environmental

commitment. You not only want to note any environmentally related product change on your packaging or

label, but also ensure that those elements are produced with sustainable practices. These can include your

choices of substrates to the manufacturing practices and environmental certifications of your label supplier.

The maturity phase might also lead certain product manufacturers to an entirely different package concept.

For example, many marketers are thinking outside the can, bottle and box as they move to pouches. The

beauty of the pouch is that it provides lower packaging and shipping costs at a time when competition is

rising and profits are tightening, but also gives the product a more sustainable container in which to

distribute the product.

AWT Labels & Packaging • White Paper

Page 8: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

Influence of Digital Printing Systems on Product Lifecycle Management

Yet for all the advantages digital technology now brings to product lifecycle management, many of the best

solutions blend different technologies to create the optimum solution for each phase. There are often times

when flexography or digital print makes the most sense. The key to a well-conceived solution is to use the

technologies to support one another in meeting market demand within your business objective parameters.

There are also technologies and techniques that go beyond the printing process itself in providing the ideal

label for each product lifecycle phase. Here is an overview of the traditional product lifecycle phases with

ideas about how your label and flexible packaging solutions can contribute to greater management

effectiveness.

Product Introduction Phase

Overview: This is a high-risk phase where many products fail. Competition may

be minimal or non-existent, but profits may be as well. Sales usually grow slowly,

and production costs are high because of low volume and the sometimes

frequent product modifications needed as you respond to market feedback.

Marketing costs are also high as you develop product awareness, inform

consumers about the potential benefits and employ intensive personal selling to

channel partners.

Solution: Digital printing usually makes the most sense during product introduction for a number of

reasons. To begin with, digital systems feature fast turnarounds and are especially well-suited to producing

shorter runs economically. But their biggest advantage at this phase might be flexibility. With no printing

plates involved and true on-demand capabilities, digital systems are able to easily and cost-effectively

change labels as product modifications might occur and can minimize or sometimes even eliminate

inventory requirements. Digital technologies also can be calibrated to appear like flexo to make the process

interchangeable based on run quantity. The net result of the label quality will look consistent using digital or

traditional label print methods.

It’s also important that your packaging and labels should meet your pricing strategy. Some product

marketing teams adopt a penetration pricing strategy that features a low initial price with the idea of

increasing trials and generating high sales volumes and revenues. Others use a skimming pricing strategy

that sets a high initial price with the objective of recouping development and marketing costs more quickly.

They aim at less price sensitive customers and early adopters. Higher-end electronic products like

smartphones and tablet computers are good examples of this strategy.

From a packaging and label standpoint, it’s particularly important with skimming price strategies that your

presentation is consistent with a premium product.

Product Growth Phase

Overview: This is the phase that every new product marketer hopes to reach.

Sales are growing nicely and profits are healthy (in fact, they tend to peak),

though the product’s success encourages many competitors to enter the

market and causes prices to fall. But on the positive side, development costs

have been recovered and high sales volumes tend to bring about economies of

scale that help compensate for lower prices. From a marketing standpoint,

gaining wider distribution is important, particularly toward the end of this phase,

because companies want to dominate points of sale and provide more people

with opportunities to buy. Thus, heavy brand advertising with an emphasis on

differentiating the brands tends to occur. Clearly a company with a highly

recognized brand such as Apple provides an advantage when other

competitors enter the market.

Solution: Increased volumes typically bring flexo package printing technologies into play. Even though

digital technologies are constantly improving and reaching upward in their volume capabilities, they are still

not competitive for longer run lengths. But this is also a phase where it’s easy to get sloppy because sales

are high. You still need to pay close attention to controlling package inventory and maximizing your

inventory turns. Past studies from InfoGroup, a data and marketing services company, point to 17 percent

to 34 percent obsolescence rates for print materials.

Generally it makes more sense to move as far as possible toward a demand-based solution—that

counteracts forecast uncertainty. This strategy incorporates both digital and conventional print platforms

that minimize inventory levels while maintaining a high degree of responsiveness. These business models

also include interacting with real-time customer production demand, establishing minimum/maximum

inventory by part and agreeing to number of weeks of inventory that can be produced and held.

Product Maturity Phase

Overview: This is the longest of the four phases,

with some products lasting over 100 years. Sales

continue to grow during this phase but at a lower rate

as the market approaches saturation. Marginal

competitors begin to drop out as prices and profit

margins fall, and companies need to be careful to

avoid price wars. The emphasis becomes more on

product style as opposed to function, and annual new

model introductions are common. This is also a period

when marketers tend to extend product lines to

increase customer choice while reaching a broader

market (including new global markets), improving

profits and gaining greater market share. Generally the

mature phase requires heavy promotions to both

channel partners and consumers. A good example of

extending base consumer products includes marketing bleach in different scents and package sizes vs.

one choice with limited packages. During earlier phases, there was only one choice in the bleach category.

Solution: The whole concept of line extensions creates challenges for your package solution. You may be

offering a broader range of sizes, or perhaps several different quality levels (good, better, best) to reach end

customers at various price points. All of this adds complexity to your label requirements and further makes

the case for having access to flexo and digital print platforms. Moving from platform to platform also means

that your supplier needs a high level of color management expertise to ensure that your color reproduction

is consist regardless of the printing technology employed.

In addition, you might consider reinvigorating your product by making it more ecologically sensitive. That

move should include your packaging and labeling for a consistent message about your environmental

commitment. You not only want to note any environmentally related product change on your packaging or

label, but also ensure that those elements are produced with sustainable practices. These can include your

choices of substrates to the manufacturing practices and environmental certifications of your label supplier.

The maturity phase might also lead certain product manufacturers to an entirely different package concept.

For example, many marketers are thinking outside the can, bottle and box as they move to pouches. The

beauty of the pouch is that it provides lower packaging and shipping costs at a time when competition is

rising and profits are tightening, but also gives the product a more sustainable container in which to

distribute the product.

Page 9: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

7

Influence of Digital Printing Systems on Product Lifecycle Management

Yet for all the advantages digital technology now brings to product lifecycle management, many of the best

solutions blend different technologies to create the optimum solution for each phase. There are often times

when flexography or digital print makes the most sense. The key to a well-conceived solution is to use the

technologies to support one another in meeting market demand within your business objective parameters.

There are also technologies and techniques that go beyond the printing process itself in providing the ideal

label for each product lifecycle phase. Here is an overview of the traditional product lifecycle phases with

ideas about how your label and flexible packaging solutions can contribute to greater management

effectiveness.

Product Introduction Phase

Overview: This is a high-risk phase where many products fail. Competition may

be minimal or non-existent, but profits may be as well. Sales usually grow slowly,

and production costs are high because of low volume and the sometimes

frequent product modifications needed as you respond to market feedback.

Marketing costs are also high as you develop product awareness, inform

consumers about the potential benefits and employ intensive personal selling to

channel partners.

Solution: Digital printing usually makes the most sense during product introduction for a number of

reasons. To begin with, digital systems feature fast turnarounds and are especially well-suited to producing

shorter runs economically. But their biggest advantage at this phase might be flexibility. With no printing

plates involved and true on-demand capabilities, digital systems are able to easily and cost-effectively

change labels as product modifications might occur and can minimize or sometimes even eliminate

inventory requirements. Digital technologies also can be calibrated to appear like flexo to make the process

interchangeable based on run quantity. The net result of the label quality will look consistent using digital or

traditional label print methods.

It’s also important that your packaging and labels should meet your pricing strategy. Some product

marketing teams adopt a penetration pricing strategy that features a low initial price with the idea of

increasing trials and generating high sales volumes and revenues. Others use a skimming pricing strategy

that sets a high initial price with the objective of recouping development and marketing costs more quickly.

They aim at less price sensitive customers and early adopters. Higher-end electronic products like

smartphones and tablet computers are good examples of this strategy.

From a packaging and label standpoint, it’s particularly important with skimming price strategies that your

presentation is consistent with a premium product.

Product Growth Phase

Overview: This is the phase that every new product marketer hopes to reach.

Sales are growing nicely and profits are healthy (in fact, they tend to peak),

though the product’s success encourages many competitors to enter the

market and causes prices to fall. But on the positive side, development costs

have been recovered and high sales volumes tend to bring about economies of

scale that help compensate for lower prices. From a marketing standpoint,

gaining wider distribution is important, particularly toward the end of this phase,

because companies want to dominate points of sale and provide more people

with opportunities to buy. Thus, heavy brand advertising with an emphasis on

differentiating the brands tends to occur. Clearly a company with a highly

recognized brand such as Apple provides an advantage when other

competitors enter the market.

Solution: Increased volumes typically bring flexo package printing technologies into play. Even though

digital technologies are constantly improving and reaching upward in their volume capabilities, they are still

not competitive for longer run lengths. But this is also a phase where it’s easy to get sloppy because sales

are high. You still need to pay close attention to controlling package inventory and maximizing your

inventory turns. Past studies from InfoGroup, a data and marketing services company, point to 17 percent

to 34 percent obsolescence rates for print materials.

Generally it makes more sense to move as far as possible toward a demand-based solution—that

counteracts forecast uncertainty. This strategy incorporates both digital and conventional print platforms

that minimize inventory levels while maintaining a high degree of responsiveness. These business models

also include interacting with real-time customer production demand, establishing minimum/maximum

inventory by part and agreeing to number of weeks of inventory that can be produced and held.

Product Maturity Phase

Overview: This is the longest of the four phases,

with some products lasting over 100 years. Sales

continue to grow during this phase but at a lower rate

as the market approaches saturation. Marginal

competitors begin to drop out as prices and profit

margins fall, and companies need to be careful to

avoid price wars. The emphasis becomes more on

product style as opposed to function, and annual new

model introductions are common. This is also a period

when marketers tend to extend product lines to

increase customer choice while reaching a broader

market (including new global markets), improving

profits and gaining greater market share. Generally the

mature phase requires heavy promotions to both

channel partners and consumers. A good example of

extending base consumer products includes marketing bleach in different scents and package sizes vs.

one choice with limited packages. During earlier phases, there was only one choice in the bleach category.

Solution: The whole concept of line extensions creates challenges for your package solution. You may be

offering a broader range of sizes, or perhaps several different quality levels (good, better, best) to reach end

customers at various price points. All of this adds complexity to your label requirements and further makes

the case for having access to flexo and digital print platforms. Moving from platform to platform also means

that your supplier needs a high level of color management expertise to ensure that your color reproduction

is consist regardless of the printing technology employed.

In addition, you might consider reinvigorating your product by making it more ecologically sensitive. That

move should include your packaging and labeling for a consistent message about your environmental

commitment. You not only want to note any environmentally related product change on your packaging or

label, but also ensure that those elements are produced with sustainable practices. These can include your

choices of substrates to the manufacturing practices and environmental certifications of your label supplier.

The maturity phase might also lead certain product manufacturers to an entirely different package concept.

For example, many marketers are thinking outside the can, bottle and box as they move to pouches. The

beauty of the pouch is that it provides lower packaging and shipping costs at a time when competition is

rising and profits are tightening, but also gives the product a more sustainable container in which to

distribute the product.

AWT Labels & Packaging • White Paper

Page 10: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

Influence of Digital Printing Systems on Product Lifecycle Management

Yet for all the advantages digital technology now brings to product lifecycle management, many of the best

solutions blend different technologies to create the optimum solution for each phase. There are often times

when flexography or digital print makes the most sense. The key to a well-conceived solution is to use the

technologies to support one another in meeting market demand within your business objective parameters.

There are also technologies and techniques that go beyond the printing process itself in providing the ideal

label for each product lifecycle phase. Here is an overview of the traditional product lifecycle phases with

ideas about how your label and flexible packaging solutions can contribute to greater management

effectiveness.

Product Introduction Phase

Overview: This is a high-risk phase where many products fail. Competition may

be minimal or non-existent, but profits may be as well. Sales usually grow slowly,

and production costs are high because of low volume and the sometimes

frequent product modifications needed as you respond to market feedback.

Marketing costs are also high as you develop product awareness, inform

consumers about the potential benefits and employ intensive personal selling to

channel partners.

Solution: Digital printing usually makes the most sense during product introduction for a number of

reasons. To begin with, digital systems feature fast turnarounds and are especially well-suited to producing

shorter runs economically. But their biggest advantage at this phase might be flexibility. With no printing

plates involved and true on-demand capabilities, digital systems are able to easily and cost-effectively

change labels as product modifications might occur and can minimize or sometimes even eliminate

inventory requirements. Digital technologies also can be calibrated to appear like flexo to make the process

interchangeable based on run quantity. The net result of the label quality will look consistent using digital or

traditional label print methods.

It’s also important that your packaging and labels should meet your pricing strategy. Some product

marketing teams adopt a penetration pricing strategy that features a low initial price with the idea of

increasing trials and generating high sales volumes and revenues. Others use a skimming pricing strategy

that sets a high initial price with the objective of recouping development and marketing costs more quickly.

They aim at less price sensitive customers and early adopters. Higher-end electronic products like

smartphones and tablet computers are good examples of this strategy.

From a packaging and label standpoint, it’s particularly important with skimming price strategies that your

presentation is consistent with a premium product.

Product Growth Phase

Overview: This is the phase that every new product marketer hopes to reach.

Sales are growing nicely and profits are healthy (in fact, they tend to peak),

though the product’s success encourages many competitors to enter the

market and causes prices to fall. But on the positive side, development costs

have been recovered and high sales volumes tend to bring about economies of

scale that help compensate for lower prices. From a marketing standpoint,

gaining wider distribution is important, particularly toward the end of this phase,

because companies want to dominate points of sale and provide more people

with opportunities to buy. Thus, heavy brand advertising with an emphasis on

differentiating the brands tends to occur. Clearly a company with a highly

recognized brand such as Apple provides an advantage when other

competitors enter the market.

Solution: Increased volumes typically bring flexo package printing technologies into play. Even though

digital technologies are constantly improving and reaching upward in their volume capabilities, they are still

not competitive for longer run lengths. But this is also a phase where it’s easy to get sloppy because sales

are high. You still need to pay close attention to controlling package inventory and maximizing your

inventory turns. Past studies from InfoGroup, a data and marketing services company, point to 17 percent

to 34 percent obsolescence rates for print materials.

Generally it makes more sense to move as far as possible toward a demand-based solution—that

counteracts forecast uncertainty. This strategy incorporates both digital and conventional print platforms

that minimize inventory levels while maintaining a high degree of responsiveness. These business models

also include interacting with real-time customer production demand, establishing minimum/maximum

inventory by part and agreeing to number of weeks of inventory that can be produced and held.

Product Maturity Phase

Overview: This is the longest of the four phases,

with some products lasting over 100 years. Sales

continue to grow during this phase but at a lower rate

as the market approaches saturation. Marginal

competitors begin to drop out as prices and profit

margins fall, and companies need to be careful to

avoid price wars. The emphasis becomes more on

product style as opposed to function, and annual new

model introductions are common. This is also a period

when marketers tend to extend product lines to

increase customer choice while reaching a broader

market (including new global markets), improving

profits and gaining greater market share. Generally the

mature phase requires heavy promotions to both

channel partners and consumers. A good example of

extending base consumer products includes marketing bleach in different scents and package sizes vs.

one choice with limited packages. During earlier phases, there was only one choice in the bleach category.

Solution: The whole concept of line extensions creates challenges for your package solution. You may be

offering a broader range of sizes, or perhaps several different quality levels (good, better, best) to reach end

customers at various price points. All of this adds complexity to your label requirements and further makes

the case for having access to flexo and digital print platforms. Moving from platform to platform also means

that your supplier needs a high level of color management expertise to ensure that your color reproduction

is consist regardless of the printing technology employed.

In addition, you might consider reinvigorating your product by making it more ecologically sensitive. That

move should include your packaging and labeling for a consistent message about your environmental

commitment. You not only want to note any environmentally related product change on your packaging or

label, but also ensure that those elements are produced with sustainable practices. These can include your

choices of substrates to the manufacturing practices and environmental certifications of your label supplier.

The maturity phase might also lead certain product manufacturers to an entirely different package concept.

For example, many marketers are thinking outside the can, bottle and box as they move to pouches. The

beauty of the pouch is that it provides lower packaging and shipping costs at a time when competition is

rising and profits are tightening, but also gives the product a more sustainable container in which to

distribute the product.

Page 11: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

9

Product Decline Phase

Overview: A long-term drop in sales usually signals the decline phase,

and this condition tends to force many competitors out of the market.

In some instances, only specialty companies will continue to offer the

product. The length of the decline phase is determined by how quickly

consumer tastes change or how rapidly consumers adopt a substitute

product. To avoid a product’s complete withdrawal, some marketers

extend the life by seeking alternative, lower-cost production techniques

or locations, and selling to cheaper markets that may not have been

attractive enough during the other stages. Typically, research and

development and retooling of the product also begin during this phase of the product lifecycle.

Solution: Since the decline phase generally involves the product gradually losing market share, product

marketing can get caught holding an excessive inventory investment that negatively impacts the product P&L.

A purely demand-based, digital printing solution eliminates inventory and obsolescence costs while providing

the lowest cost for small production quantities of labels. You can also focus on optimum run quantities for

efficient production and a no frills approach that includes lower cost substrates.

ConclusionThere are tremendous benefits for a company that understands the phases a product may experience when

launched into the marketplace. For those products that live beyond the introduction phase, there are many

opportunities to apply a range of strategies and tactics that can significantly influence performance and

whether the product progresses to the next phase.

Part of those strategies and tactics involve the label and packaging solution. Today’s technologies contribute

to more efficient product lifecycle management by providing many more options for labels and flexible

packaging solutions that are demand-based, improve flexibility, enable version changes, provide

personalization options , increase speed to market and maintain consistent high quality across platforms.

About AWT Labels & PackagingAWT Labels & Packaging provides labels, converting and flexible packaging that enhance brand identification

with proven reliability and superior quality. Our customers tell us they do business with us because of our

responsiveness, expertise, and the fact that we are easy to do business with.

AWT Labels & Packaging also provides the creativity necessary to streamline and add flexibility to any phase

of the product lifecycle. We produce products that perform according to your expectations and our proven

knowledge and experience promotes and protects brands. At AWT Labels & Packaging, innovative solutions

and commitment to quality help ensure accuracy, creativity and performance while helping our customers

stay on time, on target, and on budget.

AWT Labels & Packaging believes that your label is more than just ink on paper. It is a potential problem

solver and a solution to lower total applied costs. We take pride in not only providing top-quality printing, but

also in the number of solutions or services we can offer.

Our Label Management services include: • Dedicated service teams

• Real time Inventory management

• In-house research and development

• In-house prep

• In-house digital plate making

• Expertise in Label substrates and Flexible Packaging structures

• Customer Portal Access for job tracking, and other reporting needs

• Technical assistance in application

• Technical expertise in specific markets and raw materials

• EDI ordering

• UL/CSA & CE portfolio of certified materials

What’s more, we perform at our very best in developing customized, integrated service programs that achieve

the lowest total applied costs. Contact us today for a free consultation.

According to John Kalkowski of Packaging Digest, food manufacturers receive dual benefits of 10-15 percent

cost savings and doubling the average shelf life from one year to two. Pouch solutions are being used by product

marketers ranging from grass seed and shampoo to pet food, snacks, side dishes and many more. Some

companies see the lower-cost pouch as a way to compete with private brands and to maintain market

dominance as families migrate to discount retailers and alternative format stores.

In addition, pouch packaging has tremendous ecological benefits in space-saving alone. One truck filled with

flexible packaging would require up to 10-20 additional trucks for the same product in rigid packaging. Yet the

product presentation can be unique and upscale, based upon the unique structures now available.

AWT Labels & Packaging • White Paper

Page 12: The New Relationship of Packaging to the Product Lifecycle New Relationship of Packaging to the Product Lifecycle A White Paper Published by AWT Labels & Packaging Provide versioning

Product Decline Phase

Overview: A long-term drop in sales usually signals the decline phase,

and this condition tends to force many competitors out of the market.

In some instances, only specialty companies will continue to offer the

product. The length of the decline phase is determined by how quickly

consumer tastes change or how rapidly consumers adopt a substitute

product. To avoid a product’s complete withdrawal, some marketers

extend the life by seeking alternative, lower-cost production techniques

or locations, and selling to cheaper markets that may not have been

attractive enough during the other stages. Typically, research and

development and retooling of the product also begin during this phase of the product lifecycle.

Solution: Since the decline phase generally involves the product gradually losing market share, product

marketing can get caught holding an excessive inventory investment that negatively impacts the product P&L.

A purely demand-based, digital printing solution eliminates inventory and obsolescence costs while providing

the lowest cost for small production quantities of labels. You can also focus on optimum run quantities for

efficient production and a no frills approach that includes lower cost substrates.

ConclusionThere are tremendous benefits for a company that understands the phases a product may experience when

launched into the marketplace. For those products that live beyond the introduction phase, there are many

opportunities to apply a range of strategies and tactics that can significantly influence performance and

whether the product progresses to the next phase.

Part of those strategies and tactics involve the label and packaging solution. Today’s technologies contribute

to more efficient product lifecycle management by providing many more options for labels and flexible

packaging solutions that are demand-based, improve flexibility, enable version changes, provide

personalization options , increase speed to market and maintain consistent high quality across platforms.

About AWT Labels & PackagingAWT Labels & Packaging provides labels, converting and flexible packaging that enhance brand identification

with proven reliability and superior quality. Our customers tell us they do business with us because of our

responsiveness, expertise, and the fact that we are easy to do business with.

AWT Labels & Packaging also provides the creativity necessary to streamline and add flexibility to any phase

of the product lifecycle. We produce products that perform according to your expectations and our proven

knowledge and experience promotes and protects brands. At AWT Labels & Packaging, innovative solutions

and commitment to quality help ensure accuracy, creativity and performance while helping our customers

stay on time, on target, and on budget.

AWT Labels & Packaging believes that your label is more than just ink on paper. It is a potential problem

solver and a solution to lower total applied costs. We take pride in not only providing top-quality printing, but

also in the number of solutions or services we can offer.

Our Label Management services include: • Dedicated service teams

• Real time Inventory management

• In-house research and development

• In-house prep

• In-house digital plate making

• Expertise in Label substrates and Flexible Packaging structures

• Customer Portal Access for job tracking, and other reporting needs

• Technical assistance in application

• Technical expertise in specific markets and raw materials

• EDI ordering

• UL/CSA & CE portfolio of certified materials

What’s more, we perform at our very best in developing customized, integrated service programs that achieve

the lowest total applied costs. Contact us today for a free consultation.

BibliographyBernier, Gary, “Everything That Can Become Digital Will Become Digital,” Hewlett-Packard event presentation, 2012.

Kerin, Roger A., Hartley, Steven W. and Rudelius, William, Marketing: The Core, McGraw-Hill/Irwin, New York, New York, 2007.

Sachs, Robyn M., “How to Effectively Launch New Products,” RMR Marketing Advisor Newsletters (www.rmr.com).

York, Emily Bryson, “Picking the Pouch,” Chicago Tribune, March 6, 2012.

AWT Labels & Packaging • 600 Hoover St. NE • Suite 500 • Minneapolis, MN 55413 Phone 612.706.3700 • Toll Free 800.424.4154 • www.awtlabelpack.com