Marketing is competitive and as processes and markets change, so does the power structure and ability to create value for customers. It looks as though contract packaging companies are coming of age and are able to provide manufacturers and brands with superior results in packaging and overall channel fulfillment.
The role of packaging in marketing and in creating an edge at point of sale has never been more important than it is now. And, surprise! it’s the contract packaging companies who are delivering that competitive edge. Contract packagers are the rising stars of the retail marketing channel.
Recently, Coregistics, an Atlanta-based food packaging company purchased Cano Packaging Corp located in Illinois to allow the company to better access and dominate POP packaging services in 5 new markets in the US. The real value in the acquisition was the power of a contract packaging firm to grow Coregistics sales revenue. The company is ambitious and expects revenues to rise to $500 million.
Cano has 250 employees operating out of their 180,000 sf facility… The company plans to expand to 1,000 employees in 1 million sf of operations space within 3 years. “We will explode that over the next 2 years,” The company expects to make an impact in Chicago in both size of facility and employees.”
Contract packaging is changing which is why most marketers are unclear about what it is and how it fits into the marketing mix. The truth is, contract packagers are evolving and their role is uncertain. Contract packaging companies are uniquely positioned in the value channel and can extend their offerings to deliver more value. From creative packaging design to last minute variable print differentiation, these companies are evolving beyond the assembly and co-packing functions.
Contract Packaging Services
- Execution – fast turnaround of display manufacturing
- Assembly – just in time production and copacking
- Variable Printing – last minute product differentiation
- Sustainable Packaging – Shrink wrap/blister cards save on cartoning costs
- Warehousing – ensuring product is ready and packagable to be shipped fast
- Distribution – shipping in right quantity to specific distributors/retailers
Ravenshoe Group located in Markham for instance, provides extensive design, marketing, and fulfillment services for major pharmaceutical brands. They’re an all-in-one point of contact for these brands, thus delivering new efficiencies and capabilities within the value chain. The vertical channel is more tightly integrated, better managed, and allows greater flexibility for manufacturers who are experiencing production delays and other issues that can raise the cost of a retail sales campaign.
Sometimes it is all about streamlining and saving money. Other times, it’s about conducting a much better marketing effort. Ravenshoe for instance, has extensive printing, assembly, and warehousing services that create customized POP campaigns. From display design to short run production and shipping, Ravenshoe offers better flexibility.
Now contract packaging companies are more like full service marketing fulfillment companies who deliver cost savings, relieve channel management problems, and generate innovative solutions within their scope. Those innovations might be impossible when several different providers are used. When it’s all under one roof, supply chain management is improved.