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Modern Packaging Magazine - September 1958 - Return to Main Search
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Text Summary via OCR:

fact: While their sales were nearly doubling, these companies, on the average, were nearly tripling the plowback of sales dollars into package research. Average investment of these companies for this type of research in 1947 was only 0.11% of sales, as against 0.34% of the increased sales of 1957. Dollar-wise, it appears that these companies are spending about five times as much for packaging research today as they did in 1947.

Against this clear picture of research payoff for a minority of companies, there is a confused and discouraging report from a majority of the packagers whose companies were covered by the Modern Packaging survey.

Only 96 of the 1,074 companies contacted were able to give reasonably complete answers to the questions. This 9% segment contrasts with 20 to 25% on previous Modern Packaging surveys on other subjects going to a similar list of companies. Yet, the response is in line with a pre-test of this survey, made by personal interviews, which showed that although eight out of 10 companies were aware of packaging research and used it to some extent, only one in 10 was sufficiently posted on the nature and cost of such research to be able to answer all or most of the questions. Research in packaging in 90% of the companies, therefore, appears to be a haphazard business.

Few firms use all of the basic forms of packaging research even on the occasions when they are developing a new package. Questioned as to their latest package developed for a new product or an existing product, less than two-thirds (59.4%) indicated that they used physical or chemical research

on protective and handling qualities. Less than half (42%) used preliminary consumer research to test visual reactions to design and color. Less than half (42%) used consumer-preference research to test preferences for completed proposed packages. And finally, less than half (44%) followed through with market testing to check their sales of the new vs. the old package.

In view of the investments involved in packaging and its critical effect on sales today, it is surprising to find that apparently 40% of packagers apply no physical or chemical research to a new package (either in their own companies or through outside agencies or suppliers); 58% use no consumer research, and 56% will introduce a package with no prior market testing.

Among the companies studied, original package development is much more apt to be done by company personnel than by outside specialists. The majority (85.5%) cited their own resources in connection with their latest package development, although it was apparent that in some cases both company and outside resources were used. Packaging suppliers were credited with at least some of the development work in 53% of the cases; advertising agencies in 28%, and professional designers in 27%.

When the proposed package reached the point of testing on laboratory, consumer and merchandising aspects, company facilities also scored well ahead of outside services in all cases.

If it is true, as indicated by returns from those able to give figures, that the average packager is spending almost one-third of 1% of the sales dollar

Consumer-preference research

on packaging is used by less than half (42%) of companies replying to a question as to how their latest package was developed for a new or existing product.