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    Online Exclusives

    Personalized packaging gives brands a boost

    HP explores how a new generation of customers value digitally-printed products.

    Personalized packaging gives brands a boost
    Personalized packaging gives brands a boost
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    Greg Hrinya, Associate Editor01.23.19
    With purchasing decisions changing among multiple generations of consumers, HP has taken a deep dive into the value of digitally-printed labels and packaging. In a webinar held on January 23, 2019, Jose “Pepe” Gorbea, EMEA brand owner at HP, detailed HP’s research in the field of personalization and how brands can benefit in the future.

    Gorbea, who boasts more than 20 years of experience with marketing, innovation, digital printing and sales, believes personalized printing can create stories to further connect with consumers. HP is taking the lead, attempting to transform its methodology from a tech-centric approach to a brand-centric approach.

    “We’re looking into how HP can help create unique brand stories to touch customers individually,” said Gorbea. “What we really want to understand is the why and the how. What are the core human motivations and needs? And we’re beginning to innovate with personalization and customization. We want our technology to translate into growth for your brands.”

    HP is focused on driving growth in digital printing, which currently accounts for 10% of the printing market. “Our strategy is to drive personalized storytelling at scale by supporting brands across their consumer journey to accelerate growth,” he adds. “This can happen with labels and packaging all the way to billboards.”

    In 2019, brands need to overcome multiple obstacles to connect with consumers. With a distrust in media, intrusion from various social media platforms, and an overall oversaturation of information being thrust at consumers, it is hard to penetrate a message.

    According to Gorbea, only 1/10 of millennials buy a product because of online advertising. The main driver is past experiences, which account for 42% of the motivation to buy. Researching a product makes up 16% while word of mouth comprises 11%. In other words, it’s hard to become relevant and influence a consumer to buy a product, especially as 30% of consumers have actively enabled ad blocking. Additionally, each person will experience more than 200 interactions with digital content per day.

    Gorbea stated that by 2021, the value of the personalized gift market is expected to reach $31 billion, which is up 55% from 2016. Moreover, 70% of shoppers are willing to pay an extra 10% for personalized products.

    “There is clear evidence to show that the desire for personalization is shared by all consumer generations, with millennials and GenZ leading the charge,” said Gorbea.

    The more consumers are involved with the brand story, the more they are willing to engage and share with others. With millennials and Generation Z dictating so much of the market, HP has identified key sources of emerging demands for personalized items.

    According to HP, the six key drivers for personalization are:
    1. Fingerprinting
    2. Flying your flag
    3. Letting it all hang out
    4. Permission to indulge
    5. Bringing bonds to life
    6. Mindful materialism
    Fingerprinting is when a product becomes an extension of the customer, while flying your flag involves the showcasing of hidden identities–whether they be rock music or a passion for sports. The remaining drivers allow consumers to indulge in products that are unique and important to them. Mindful materialism, for example, highlights causes that are important to consumers such as reducing carbon footprint or instituting sustainability practices.

    In Scotland, soft-drink provider Irn-Bru utilized HP to provide personalized labels featuring Scottish kilts on soda bottles. Representing pride in Scottish communities, the soft drink provider gained 10 points in the market with the campaign.

    Lays targeted millennials with its #Smilewithlays project, focusing on individually printed bags of potato chips. In China, Oreo’s customized packaging, through a partnership with Alibaba, made e-commerce a viable channel. The customized bags of Oreos led consumers to spend 2-3 times more money than what they would have paid on traditional packaging in the store.

    In Mexico, Trident used digital printing to put different Mexican locations on packs of gum to promote tourism. In this campaign, Trident gum gained media attention through digital printing, making for an engaging and profitable endeavor.

    HP has instituted a system to work with brands to better develop their own campaigns. The HP Personalization Pinwheel is a proprietary framework that allows for tailored recommendations for clients with commercial potential.

    “We’re trying to get past the image that HP only does names on a Coca-Cola bottle,” explained Gorbrea. “We want you to have your own unique strategic solution, and this is how we add value. This pinwheel is to help develop strategic decisions through digital print.”

    HP will explore these ideas further at an event at the company’s Experience Center in Barcelona, Spain. Brands and industry creatives are invited to attend the HP event from March 6-7, 2019, with registration due by February 22. For North American customers, HP boasts an equally impressive facility with its Graphics Arts Experience Center for the Americas in Alpharetta, GA.
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