Image of gravure among brand owners - follow up to the 2001 GfK study October 2006
Table of Content Page 1 2 3 GfK at a glance 3 Study design 3 Results 2001 8 4 Choosing the printing technique 10 5 The Image of Rotogravure vs. Flexo-printing 23 5.1 5.2 Rotogravure 24 Flexo-printing 32 5 Globalization 43 6 Developments 46
1 GfK at a glance
[ GfK at a glance ] Key Features Core business Pure market research player delivering information services to major global players in the services, media, consumer goods and healthcare industries. 4 Market position Largest market research company in Germany and 4th in the world. Sales 937.3 million EUR in 2005 Increase on the previous year: 40%
2 Study Design
[ Study design ] Background & Objectives Background On behalf of ERA, had already been commissioned in 2001 with a study to evaluate the image of rotogravure in Germany. At the time it was expected that flexoprinting would become continuously more important compared to rotogravure. It was the aim of the prevailing study to reveal current tendencies and possible changes in the image of rotogravure and in addition, to extend fieldwork also to Turkey and the Ukraine. 6 Objectives Target group: How has the image of rotogravure and flexo-printing actually been affected compared to the expectations in 2001? Which factors influence the perception of rotogravure respectively flexo-printing? Decision makers of manufacturers of well-known branded products or private labels who are responsible for choosing the printing technique for their product packaging.
3 Results 2001
[ Results 2001 ] Summary 8 Image Rotogravure Very high quality; but expensive and somewhat inflexible Image Flexo-printing Of poorer quality; but more innovative, less expensive, more flexible and offering more potential for future development regarding quality Expectation Requirements on flexibility will rise Flexo-printing will become increasingly more important
4 Choosing the Printing Technique
[ Choosing the printing technique ] Relevant influence factors 10 Quality Costs Print shop Material/format Time Cold sealing Chemical residues Number of colors Company s attitude towards values
[Choosing the printing technique ] The most important influence factors: Quality Better color gradients It truly grades down to 0. Accuracy The screen is much finer. Luscious colors Due to the size of the saucers the amount of applied color can be varied. 11 Consistency The first print looks like the last. Number of colors For rotogravure actually I need less colors because I can mix more. Quality Reliability If I know that they use a good rotogravure print machine I can sleep comfortably. Higher resolution If you look at a flexo-printing sample you can see the single dots. As if you would compare a polaroid picture with a studio shot. Authenticity of colors If the color has the number 185 high quality implies that the result comes close to this number.
[Choosing the printing technique ] The most important influence factors: Costs Basically depends on the print run: Must be reasonable compared to the value of the product: 12 We produce just in time. Thus, we only print small numbers for which rotogravure will always be more expensive. For a very small run we use digital print - the single print is more expensive but there are no preparation costs. Costs The costs for making a cylinder are much higher for rotogravure. But it is much more durable. Thus, rotogravure is less expensive when a high number is needed. It is our goal to make money with the product. We would never endanger a popular product. Even if we have a smaller print runs we always rely on rotogravure. If we are not sure how a product will be accepted we will never invest in a rotogravure cylinder. You can switch later on if necessary. You will not choose an expensive packaging for a cheap product.
[Choosing the printing technique ] The most important influence factors: Print shop 13 Core factors: Service,reliability and quality of a print shop cooperation preferably with known print shops Also important: Age of the machines A new flexo-machine might possibly deliver better results than an old rotogravure machine. Often: Contracts with print shops Print shop Preference for big, internationally acting print shops Knowledge and skills of the printers and engravers are extremely important So I realized that virtually anything could be done but it required a cool technician. Smaller and younger (inexperienced) print shops are avoided despite better prices Young companies cannot provide an adequate service quality.
[Choosing the printing technique ] Arguments for using... 14 Rotogravure High quality: Finer grading, better color gradients; brilliant colors, metallic colors Low price at high print runs Reliable Consistent Flexo-printing Less expensive at mid to small print runs For polyethylene (plastic bags/ freezing bags) For simple motifs, few colors Shorter handling time
[Choosing the printing technique ] Regional distinctions Turkey Strong focus on quality - price clearly taken as an indicator for quality The lower the costs the poorer the quality Self-perception as 3rd world country with clear separation from India and China Our standard, our mentality and culture is slightly lower than in the rest of Europe Both Chinese and Indian markets are extremely low quality markets Europe as ideal - they visit exhibitions in Europe Spirit of imitation Flexible adjustment of the flexo-machine seen as an advantage, as they can intervene without interrupting the printing process We do it the Turkish way Ukraine Regular tendering New awareness that a packaging design should be appealing Germany Longer rotogravure tradition The higher variability of the flexo-machines is seen as a disadvantage as it implies unreliability 15
5 The Image of Rotogravure vs Flexo-printing
[ Image ] 17 Rotogravure
[ Image ] Spontaneous associations with rotogravure 18 Premier league Expensive Color gradients Authenticity of colors Quality Costs High fix costs Technology Reliability Cylinder High technology
[ Image ] Mr. Rotogravure today - a more reliable and stronger personality than in 2001 But also: Reliable 19 Serious, takes his job serious Accepted, strong personality Handsome, dapper Prudent Slow, inflexible, cloddish Someone who knows what he says. someone you can trust
[ Image ] The Rotogravure Car today - still a Mercedes 20 Reliability Size Quality Premium class It gives you what you want at the end of the day
[ Image ] 21 Flexo-printing
[ Image ] Spontaneous associations with flexo-printing Potato printing Flexo has always been a cheap printing technique Poorer resolution Lower quality, less refined Flexible Dynamic Flexo has strongly developed in the recent years The pressure in the market compels you to further developments 22 The expert sees the difference at once Traditional It has been around for a longer time. We have always worked with flexo in the past Must and will continue to develop further but will never reach the quality of rotogravure
[ Image ] Mr. Flexo today - less reliable and attractive as in 2001 23 Faster More flexible Less reliable Less handsome and dapper More capricious You must be more careful with him because I know that he can t keep his promises
[ Image ] The Flexo Car today - the same class as in 2001 24 Mainstream car Less appealing Smaller Lower quality Lower prestige But also More aggressive Faster Sells better Modernized
[ Image ] The image of rotogravure and flexo-printing 25 Rotogravure Flexo-printing The high quality, high tech and reliable but also expensive and somewhat inflexible printing technique for high ambitions. The flexible, fast and inexpensive but also somewhat unreliable and inferior printing alternative.
[ Image ] Flexo-printing changes 26 Flexo has - objectively seen - improved with respect to quality But the Image of flexoprinting has rather deteriorated Rotogravure scores by reliability and consistency
6 Globalization
[ Globalization ] Globalization effects 1 28 Unbeatably cheap Outsourcing to Asia Only an alternative for very price sensitive companies Difficult and tedious communication Of course they only follow orders but nothing else. It takes time until you get a proof from China. Unreliability Mentality problems Low to unpredictable quality Image We like to highlight that we print in Germany.
[ Globalization ] Globalization effects 2 29 Central purchase General tendency to international purchases Effects on the choice of the printing technique not yet certain The company s attitude towards value remains decisive Standardization among print shops The standardization among print shops increases and is generally appreciated It gets observed that more and more print shops merge Some years ago we used to work together with 6 print shops, now there is just one left without us switching. There is some criticism that there is no equal investment across all production plants (new machines are only available in some locations)
7 Developments
[ Developments ] Actually perceived developments 31 Needs towards flexibility and speed have increased enormously If an order was expected to be carried out in 10 days in the past, it is now expected to be ready within 5 days. The profit depends on the speed of printing. No clear tendency to even smaller print runs: Diversification has reached its peak in some sectors There is limited space for our entire range in the supermarket. Growing companies produce growing print runs Motif modifications in detail happen more often Especially in the private label sector there are permanent requests for modifications, the quality frequently suffers. Increasing quality needs are met by both techniques: For the consumer there is often no visible difference between rotogravure and flexoprinting but flexo-printing is less consistent But at the end of the day it is our eyes that perceive this.
[ Developments ] Expectations towards rotogravure 32 The expectations towards rotogravure prevail Shorter handling time More competitive price also for smaller print runs (lower fix costs, machines that are more narrow)
Thank you very much for your attention.