June 13th, 2007 · Number 11
 

FEATURE: Direct Mail Response Rates Reveal Hispanic Marketing Insights

Vertis Communications announced the results of its proprietary Customer Focus® OPINIONES survey, which revealed that of the Hispanic adults surveyed who read direct mail, 64% have responded to direct mail advertising in the past 30 days, compared to just 46% of the general U.S. population. Additionally, the 2007 study findings revealed that 72% of U.S. Hispanic adults surveyed who speak English at home read direct mail advertising, compared to 69% who speak only Spanish at home and 58% who speak Spanish inside and out of the home.

"We are finding that while more Hispanics are reading direct mail advertising than non-Hispanics, a majority of these readers are primary English speakers, even when at home with their families," says Jim Litwin, vice president of market insights at Vertis Communications. "However, findings also reveal that direct mail response rates are higher among those who primarily speak Spanish inside the home, indicating the need for marketers to continue creating bilingual marketing pieces. U.S. direct mail is predominantly English, so when Hispanics do see bilingual pieces in their mailboxes that speak their language, the urge to respond is significantly higher."

Looking across direct mail response rates, the 2007 study findings revealed that 70% of Hispanic adults who speak only Spanish at home have responded to direct mail advertising in the past 30 days, while 60% of Hispanics who speak English at home have responded. Furthermore, of the total Hispanic adults who have responded to direct mail items in the past month, 31% have done so by visiting the sender's Web site, while 27% visited the nearest store location, and 15% called an 800 number listed on the mailing.

The Vertis Communications Customer Focus® OPINIONES study, which surveyed respondents via telephone, also revealed the following:

Hispanic Adults More Likely to Make Purchases Through Direct Mail

• 75% of Hispanic adults living in the United States have made a purchase through direct mail, compared to 62% of the non-Hispanic U.S. population
• Findings also show of the 75% of Hispanics who have made direct mail purchases, 14% first learned about the offering from television, compared to 9% of non-Hispanic adults
• Additionally, 19% of Spanish speaking Hispanics who've purchased through direct mail, first learned of the offering via television, compared to 11% of at-home English speaking Hispanics

Interests in Direct Mail Vary by Hispanic Country of Origin, but Retail Direct Mail Popular Throughout

• Of all Hispanic adults surveyed that read direct mail, 48% of non-Mexican Hispanics indicated they read direct mail regarding books, clubs or music, compared to 39% of those surveyed with Mexican heritage who indicated they read similar direct mail items
• Whereas 29% of non-Mexican Hispanics surveyed read direct mail advertising for financial services or institutions, just 20% of people with Mexican heritage indicated they read this type of financial direct mail
• Additionally, 20% of non-Mexican Hispanics read direct mail items from telecommunications companies, compared to 10% of Mexicans
• While readership for other forms of direct mail varies, retail direct mail remains popular throughout, with 69% of Mexicans and 70% of non-Mexican Hispanics surveyed indicating they read retail direct mail

'Gift with Purchase' a Strong Direct Mail Incentive When Targeting Hispanics

• Of the Hispanic adults surveyed who read retail direct mail, 43% indicated they've responded to direct mail advertisements that offer a gift with purchase, compared to just 31% of the non-Hispanic population
• It seems Mexican retail direct mail readers are less responsive to discounts off one single item, as 50% indicate they have responded to direct mail items offering this incentive, compared to 65% of non-Mexican Hispanics who have responded to a similar direct mail offer
• However, non-Mexican Hispanics surveyed who read retail direct mail seem more responsive to coupons, with 69% indicating they've responded to coupon direct mail offers, as opposed to 56% of Mexicans surveyed

About Customer Focus OPINIONES - Customer Focus is Vertis Communications' proprietary annual study tracking consumer behavior across a wide variety of industry segments (financial, credit cards, insurance, retail, automotive) and media such as direct mail marketing. The survey was first conducted in 2006 and, in subsequent years, has been expanded and modified to identify emerging consumer behavior patterns and track shifts in consumer practices and motivations.

The survey of 500 Hispanic adults (conducted via phone by one of the nation's leading field research companies in August/September 2006) measures both general and industry-specific shopping trends, and Vertis provides the significant data as a value-added service to its clients.

DESIGN FORUM: Is Branding With Tamper-Evident Seals Just Overkill?

Gold Peak Iced Tea which has a large tamper-evident seal with graphic brand reinforcement. This approach would seem to add to the brand's lifestyle appeal.

We asked a panel of experts three pertinent questions:

• "Are tamper-evident seals a good opportunity to reinforce the brand?"
• "For what categories is this an advisable strategy?"
• "Is there another brand exposure strategy you would advise instead?"

Ted Mininni, president, Design Force, Inc., Marlton, NJ
Any and all packaging design elements present good opportunities to extend the brand if properly utilized. In this case, Gold Peak Iced Tea uses a longer seal with leaf design in gold to further extend its brand identity. The identity appears on a gold cartouche on the label with a scene depicting "the good life." All these elements subtly point to Gold Peak's appeal as a premium brand.

The tamper-evident seal reminds us of the seals on the necks of bottles of fine wines. In fact, glass carafe-shaped clear bottles show the rich golden colors of the teas, adding to brand perceptions of premium quality.

Reinforcing brands' assets and promises such as enjoyment, lifestyle aspirations, or luxury on every inch of the packaging denotes a great use of real estate, and a powerful tool to get consumers' attention on the shelf.

Dan Matauch, president of Flowdesign Inc., Detroit, MI
Yes, I do believe it is a good idea to reinforce branding on the tamper-evident seal if it fits within the overall package design. The more subtly you can do this, the better. You don't want the capsule or tamper-evident seal to overpower the label.

I think this is an advisable strategy for all categories. If the package has a minimalist design, you may want to have the capsule or tamper-evident seal completely clean, though. Another technique is embossing the brand logo onto or into the package. This is almost always very effective on glass and plastic bottles.

Scott Power, managing principal of Man One Design, Los Angeles, CA
From a design standpoint, sometimes less is more. And sometimes more is more. Regardless, tamper-evident seals should be viewed as a design element and one part of the whole package design. To that end, tamper-evident seals should be considered strategically and purposefully integrated (or not) into the package design.

If seals are left unconsidered during the packaging design process, they risk diluting the overall look and feel of the package by shrouding a cool closure design once they are applied or fail to reinforce the brand or communicate a key message. Now, from a communications standpoint, what role and to what extent a tamper-evident seal should play is up to the brand manager and packaging designer to figure out.

To help decide, ask if "designing" the seal will add value to the brand and its consumers. Remember, just because we can do it, doesn't necessarily mean we should. Sometimes more is less.

Bob Aretz, principal and creative director, Paragraph, Philadelphia, PA
Branded tamper evident seals aren't a bad idea when it comes to reinforcing the brand. Any white space is a good opportunity to tell the story, and branded seals obviously say more than clear plastic.

In the case of Gold Peak, they're decorative and they're minimal, and they reinforce the idea of real-brewed tea (which I think is how Gold Peak describes itself). As a collection, they raise my expectations of what I'd imagine is inside. Honestly, I wonder about the message on the lid. I think it could tell the brand's story and drive home a safety message simultaneously.

I see other opportunities in this area. It's a very interactive medium. The space could be used to drive promotions or enhance the experience of the product.

David Kendall, principal and creative director of Kendall Ross brand development + design, Seattle, WA
Great package design is about making customers feel comfortable about the buying decision. Safety is a key part of this buying process. Creating and designing elements that address this concern is an important part to success on the shelf.

The safety seal or capsule design can also be an opportunity to create stronger brand recognition through color, messaging or other graphic elements in addition to the safety. So rather than just warning consumers with the self evident message of "Do not use if tampered...," I believe package designers should engage them with design that both reassures as well as entices them. Why not use this requirement as an advantage to building the brand?

DESIGN: Spectrum Brands Honored with Nine Graphic Design USA Awards

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Spectrum Brands, packaging is paramount to a product's success. Because the company does little advertising on most of its brands, the product package must tell the story. "Our work speaks for itself because it has to," says Brian Schultz, division vice president and creative director at Spectrum Brands Home and Garden DesignCenter.

With more than a dozen employees, the DesignCenter handles production and design work for packaging, displays and other POP, advertisements, product Web site, catalogs, and even for Spectrum Brands NASCAR sponsored programs. The DesignCenter creates design standards for all products, essentially becoming the "brand ambassadors" of all Spectrum Brands Home and Garden products.

The DesignCenter recently received nine awards at the annual American Inhouse Design Awards, presented by Graphic Design USA. These Awards honor inhouse designers and teams within corporations, media companies, non-profits, educational and government institutions.

For the 2007 Awards, more than 4,000 entries were received, and the Spectrum Brands products receiving the honors were: Schultz® Premium Mulch with Weed Stop®; Schultz® African Violet Potting Soil Plus™ and Seed Starter Plus™ Potting & Planting Mix; Hot Shot® Fogger; Cutter® Lemon Eucalyptus repellent; Hot Shot® Ultra Clear Roach Gel; Expert Gardener® Organic Potting Mix; Repel® BiteMD™ & Cutter® BiteMD™; Rayovac® Rechargeable Hybrid Battery; Schultz® Garden Soil.

STRUCTURE: BERICAP Develops a "Vinegar" Version of Galileo II Closure

The Galileo II closure is a two-piece, flip-top closure weighing 3 g. The base, which is the sealing element between bottle and closure, is made of Polyethylene, while the over-cap is made of transparent Polypropylene. Thus, color combinations are possible, giving the bottle a modern and contemporary look, due partly to the transparency of the over-cap. The closure adds value to the package, providing for product differentiation on the shelves.

Incorporated to the closure are two independent tamper-evidence seals. The consumer needs to first break the over-cap seal before being able to remove the pull-up ring, which eventually breaks the second seal. This second seal opens four small holes which act as flow regulators. The vinegar can thus freely be dosed, either by droplets, sprinkles or even be "showered" over the salad, depending on how much the consumer presses onto the bottle.

The challenge for BERICAP was on one hand to create the second seal formed by the four independent membranes to be tight to hold internal pressure created by Nitrogen dropping; and on the other hand to easily break once lifting the pull-ring. Due to the recent trend of ever increasing PET resin costs, BERICAP conceptualized a new and lighter neck finish. Potential PET resin savings are substantial, translating into a more economic package. Aiming at innovation, consumer convenience, and appeal as well as cost reduction, the Brazilian Vinegar market leader Alimentos Castelo adopted the Galileo II closure to enhance the contemporary look of its new bottle.

IDEA: Inventors Have a Solution to Keep Insects Out of Beverage Cans

As seen often in newspapers and on TV, a lot of people get stung in their mouth after drinking from a beverage can every year. It is a big problem especially for children, because they usually don't pay attention when drinking from a beverage can. A new "safety sieve" might be just a small part, but the results might be much more important.

A lot of solutions for this problem are on the market, but all of them are either too complicated to produce or customers must change their habits. This leads to high costs or a non-acceptance of the customers.

The newest anti-insect can invention is from XION GbR out of Rostock, Germany, has U.S. patent number US6,755,315 B1, and is the first idea to solve this problem without any changes in the opening mechanism. The idea is, to place a specially formed piece of tin over the opening of the can during the production process. Together with the opening ring it will be fixed by means of a rivet.

The sieve openings are variable and big enough to let the drink get out, but small enough to prevent bees and wasps from getting into the can. The invention can allow for small corrections normally found in can production. For more, visit www.antiinsectcan.de.

ANNOUNCEMENTS:

 Anthony P.D. MacLaurin Named President and CEO of FiberMark
FiberMark recently announced the appointment of Anthony P.D. MacLaurin as president and chief executive officer. Mr. MacLaurin comes to FiberMark with 30 years of packaging industry experience, 21 years of which have been in leading executive roles.

Mr. MacLaurin most recently was President/CEO of Vitex Packaging Group. He also served as the Executive Vice President of U.S. CAN's International Division. Prior to that, Mr. MacLaurin ran several divisions of Rexam PLC, the London-based packaging conglomerate, including successful stints as President of Rexam Healthcare Flexibles, as well as eight years of leadership as President of Rexam DSI (Decorative Specialties International).

In welcoming Mr. MacLaurin to FiberMark, Tom Weld, chairman of FiberMark's board of managers, says, "We are pleased to have Anthony on board with his reputation for leadership, innovation, and results."

MacLaurin will assume responsibility for all FiberMark North American and European operations focusing on innovation and growth opportunities for both FiberMark and its customers. MacLaurin states: "This is an exciting time for FiberMark which has a strong balance sheet, an excellent team of managers, many new products, and an organization that is more customer-focused than ever before."

 Toray Plastics Appoints First American Executive Vice President
Toray Plastics America, Inc., North America's only manufacturer of precision-performance, value-added polypropylene, and polyester films, announces the appointment of Richard Schloesser to the position of executive vice president. Schloesser, a 17-year veteran with Toray Plastics (America), Inc., is the first American in the Japanese company's history to be appointed to that position.

In his new role as executive vice president, and as part of Toray Industries' new Localization Program, a global growth strategy that calls for locally based management, Schloesser will provide unified American leadership to Toray Plastics (America), Inc., which includes the Torayfan® Division (polypropylene) and Lumirror® Division (polyester), and to the Virginia based Toray Plastics (America) PEF Division (olefin foams).

Schloesser has served as Senior Vice President and General Manager of the Torayfan Division since 2002. He began his tenure with Toray Plastics (America), Inc. in 1990 as a Sales and Marketing Manager of that division and eventually held positions as Vice President of Sales and Marketing and Senior Vice President of Sales and Marketing. Prior to joining Toray Plastics (America), Inc., Schloesser was with Exxon Mobil, including 13 years with the company's oil business and 10 years with the films division.

"We are honored by Rick Schloesser's dedication, enthusiastic leadership, extraordinary expertise, and the countless contributions he has made to the company and are very pleased to announce this well-deserved, historic appointment," says Kojiro Maeda, president, Toray Plastics (America), Inc.

 Axilone USA promotes Jacques Cohen to President of Axilone USA
Robert Bapt, CEO of Axilone Group, announced that Eric Bigotte President of Axilone USA will be leaving the group at the beginning of June to pursue other opportunities. Newly appointed president Jacques Cohen has been with the Ileos Group for more than 10 years in various capacities including v.p. of sales and marketing and president of other Ileos-affiliated companies.

Axilone is supplier of caps, closures, compacts and lipsticks cases to the fragrance, cosmetics, and health and beauty sectors markets. Based in Europe, U.S., and China, Axilone is positioned to respond to the global needs of its customers.

Ileos is a leading supplier of packaging to the fragrance, cosmetics, and pharmaceutical industry, with 3000 employees. ILEOS's subsidiaries Alliora, Axilone, Socoplan, Flexpaq, Packart, Pixxent, Rotanotice & Seufert generate a turnover of 245 million euros in 2006.

RESOURCE: Microwaveable Packaging Technologies, Economics, and Markets 2006 to 2011

Kraft Foods' macaroni and cheese is a great example of the revolution taking place today in the market for microwaveable products and packaging. Kraft Foods expanded from its original product to a microwaveable product to a microwaveable product with microwaveable packaging.

This is a detailed study of the North American microwaveable packaging industry. This 255 page study includes analyses of the technologies, economics, and markets of microwaveable packaging. The "Market" section examines North American drivers, trends, and projections through 2011. Packaging projections are segmented in this study by: end-use; distribution method; cooking/heating method; material; packaging format.

The Technology section examines current and future developments including: breathable patches; packaging materials; physics of microwave heating; packaging format; vents; susceptors. Learn how new technology makes it possible and practical to cook fresh meats in microwaveable packaging. The study is $4,500 for one copy, and $500 for extra copies. Call 1-952-898-2000 or visit www.allied-dev.com.