Co-packing. What does it stand for?

Moscow 21 сен 2009 г.

Common co-packing that we got used to is now getting a versatile importance for FMGG companies. Like almost all the trade technologies co-packing is a Western invention having become the most effective implement from the point of view of investment refund into the product promotion.
It is the very problem of today, as in the time of   economic downturn the traditional instruments are not the most effective ones:
TV ads are of very high price, moreover 60% of the customers’ decisions are made right at the shop counter.
Promo-action can’t be less expensive, as with the promo-staff hiring it includes:

  1. Promo-stuff payment, BLT agent fee
  2. Promo-spot rent payment
  3. Expenses including  POS Materials production and developing the concept of promo-action
  4. Promo-stuff training

Summing up promo-action with the trained staff and BLT agent involved turns out to be so expensive that even the market leaders can afford only a few  hours at the weekend for that.

As far as the discount transmission is concerned it turns finally out to be not an attractive price for the customers, but a hidden retailer’s margin.

Thus, co-packing is an affordable  and effective instrument for all those involved in the FMCG market, even for those companies with limited budget for advertising and promotion.
Co-packing meets the following requirements:

  1. Customer’s contact with the new product by attaching a small sample of it to the product that the customer is already familiar with
  2.  Sales growth as a result of multipack packaging (5+1 etc.)
  3. Gift at a purchase, i.e. a souvenir attached to the regular sku
  4. Extra, non-regular links on the packaging
  5. Gift sets of several complementary products, which are of greatest demand especially during the holiday periods and are of high  popularity among the  beauty companies.

Thus, co-packing is an additional instrument  for marketing. And from the point of view of  product promotion and the effective sales instrument the importance of co-packing is quickly increasing.    

Co-packing organization and maintenance at your own factory is by no means  a complicated and expensive thing, as large-production factories are oriented towards rapid flow and velocity. The today’s market and its requirements are very  changeable: you can have an urgent need for multipacks today, and for gift sets tomorrow.  As a result, you get a  constant staff changing, various equipment and technology usage. 
But there is nothing to worry about co-packing, as there is a simple solution for that: you can easily involve a professional co-packer.
A professional co-packer of today means:
- Organization of your own production on a level with the highest worlds standards
- Outer services at the client’s site – it is important because of the logistics expenses
- Versatile equipment availability
- Urgent staff extension availability
- Rapid response to the order volume increase
-  Large warehouses availabilty

Welcome to our «Co-packing Center» and we will make your product even better!