Partnerships Make Visual Design More Efficient and More Effective

By Bill Goodwin

K'NEX partnered with Goodwin and found an effective and cost-efficient solution for their package design needs, elevating the quality in meaningful and consistent ways.

We all know how important it is to capture kids at shelf level. With so much competition for the expendable dollar, every means of communicating to kids' attention and their caregivers needs to be maximized.

Savvy manufacturers as well as retailers are recognizing the value that on-target visual branding can deliver. These same manufacturers also know they do not have to own a visual and branding capability in house—just how to find one, leverage one, and manage one to their benefit. Effective outsourcing means the manufacturer can reduce costs internally and focus on their core capabilities while utilizing a qualified partner to provide the resources and creativity needed to enhance the company's branding and packaging strategies.

Laying a new foundation

Through an innovative strategic sourcing partnership between Goodwin and the K'NEX toy company, we have been able to demonstrate the value of this philosophy firsthand. K'NEX not only realized the rewards of increased sales, better customer loyalty, and repeat purchase through effective branding, the company also realized a return on investment. This added benefit is a direct result of K'NEX being able to stay focused on its core competencies while allowing us to do what we do best.

Prior to the strategic partnership with K'NEX, we had been working together on a project-by-project basis like the majority of toy manufacturers. Unfortunately, there can be problems with this project-by-project outsourcing system that so many manufacturers use. Working with multiple agencies does not lead to strategic, uniform branding as there are so many parties involved in the process.

Finding the right piece

K'NEX decided it would be more effective to have one team responsible for the package design and branding of all their toy lines. "Our first strategy was to develop a design team in-house; however, that would have required a huge initial investment, extensive training, and organizational overhaul," says Marc Balara, creative director at K'NEX.

To find the best sourcing for their products, K'NEX sent out a request for proposal to the three firms they had been working with. "The Goodwin team had the right vision and the ideal company size to handle our volume of projects and stay on budget," says Balara. Now Goodwin is seen as K'NEX's in-house team—but with outside offices.

Having worked this closely together, we are able to anticipate challenging and busy periods for K'NEX, such as Toy Fair, and prepare ahead of time. In addition, we can react quickly and efficiently when K'NEX decides to launch a new product or line extension because we have an understanding of their brand, their goals, and their personalities.

One concern some manufacturers have about using one source is that the package designs may become stale. Though package design and branding become streamlined and more relevant to their consumers, creativity does not need to be sacrificed.

This strategic sourcing initiative allowed K'NEX to experience a 50% reduction in package design costs in the first year. "It also has saved us a lot of time," said Balara. "We no longer have to send out a request for proposal, listen to presentations, and make a decision." Ultimately, finding one effective strategic source for packaging design affords a company like K'NEX access to not only best-in-class capabilities, but also to the outside creativity and vision specialists can provide to help them present a stronger more meaningful brand to their target audience.