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Case study notesThis case study explores how Halford’s investigated a poor-performing product category, namely, motor oil, and, largely through packaging design, developed a hugely successful business. The packaging-design changes introduced were later copied by the brand leaders in the industry, namely, Castrol and Mobil. Case study questions1. Discuss how Halfords used packaging as a strategic tool. The firm commissioned the international design group Pentagram with a brief to redevelop its brand of motor oil. This would probably involve redesigning the container, relabelling it and repositioning it in the market. Pentagram decided to look closely at the possibility of considerably improving the dispensing of oil from the container into the engine. Further studies revealed that the problem seemed to centre on the inability to accurately direct the flow of oil. In addition, the handle for the container is in line with the spout, helping to direct flow of oil. The issue of labelling was solved simply by offering three types of motor oil. A premium-grade oil for most 16-valve petrol engines, a diesel-grade for diesel engines and one for standard-grade. The three different oils were offered in three different colours, making them different and distinguishable on the shelf. The final container also incorporated a viewer for oil level. 2. Should Halfords have explored the possibility of developing a new brand of motor oil? Though this was a possibility, the cost would have been much higher and there is limited evidence of success of retailers developing brands other than their own store brands. Moreover, the Halfords brand was acceptable and could be used to develop a successful product. 3. Use the attributes in Table 13.2 to explore whether more radical packaging could be developed for this product category. 1. Dispensing handle and directing pouring; 2. Storage time limit device on storage; 3. Stability discolouring warning if product is unstable; 4. Handling ease of carrying; 5. Opening/resealing screwcap; 6. After use to be used as a useful storage container; and 7. Disposal improve ease of disposal, e.g. ability to screw into a ball 4. Arguably this was a product whose sales were declining and could have been dumped. Can you think of any other ‘mature’ products that could benefit from an investment in packaging design? Virtually all mature products can benefit from an investment in packaging and branding investment. Indeed, there are some famous FMC food products that have been reinvigorated through new packaging such as Branston Pickle, now offered in a single squeeze sachet; Heinz Tomato Ketchup, now offered in a plastic squeeze bottle; and many more. 5. Use CIM (Figure 1.9) to illustrate the innovation process. Natural sciences cycle Many innovations are applications of existing technology; in such cases, this part of the framework may not be used. In this case, there is no new science. This is such a case. Indeed, there is limited technical innovation in this case. There is new design only. Integrated engineering cycle As with so many innovations, this is where most of the technical effort takes place. In this case, there was little new technology. There is new design only. Differentiated services cycle During this phase, the technology is adapted to meet specific needs of customers. In this case, it is the design of a new package that forms the centre part of the innovation process. This part of the innovation process is the most significant in this case. The external design agency: Pentagram set up a series of consumer focus groups to try to explore the issues that influence purchase and to explore how consumers use the oil. Pentagram decided to look closely at the possibility of improving considerably the dispensing of oil from the container into the engine. The final container also incorporated a viewer for oil level. All these packaging attributes propelled the Halfords brand up the sales league, and many of the leading manufacturer brands have been forced to incorporate them into their own brand.
This cycle can often involve negotiations with regulators or governments. This case clearly illustrates the value of packaging and labelling in product development. The motor oil itself remained unchanged, but the packaging and labelling of the oil were considerably altered, enabling Halfords to reposition its oil as a slightly more upmarket store-brand oil.
Sometimes this can be a single individual; in this case, it was a combination of the Halfords product development team and the external design agency. Case study notesThe case study has been updated. This case study explores the remarkable success of eBay and illustrates how continuous development of its new services has enabled it to remain the world’s leading auction site and deliver extraordinary financial results for investors. Ms Whitman, CEO has transformed eBay from a purely domestic group that held auctions in 300 categories into a global enterprise, operating in 18 countries and offering 16,000 categories. She has expanded the range of goods sold from mainly collectibles – Beanie Babies dolls accounted for 8 per cent of items sold at the time of the IPO – to include used cars, motorcycles, computers, time-share holiday homes and even golf tee-off times. A Gulfstream corporate jet has been sold on eBay for $4.9 million. However, eBay risks alienating its customers and the whole eBay community by introducing fixed-price sales. IBM is now its biggest customer. This move away from auction and onto mainstream sales goes against the principles on which eBay was established. The purchase of Skype raises many opportunities. Will eBay block potential in the adult market – an area where a great many developers see potential? Especially when history teaches us that from the VCR industry to the Internet, the adult industry has been at the forefront of developing technologies and markets. Download 187.23 Kb. Share with your friends:
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