ATLANTA — Nypro Packaging isn't out for the quick-hit, fast buck.
Far from it, according to Joe Stodola, vice president of global business development for the plastic packaging maker, a unit of Jabil Circuit Inc.
That means that Nypro Packaging can spend years cultivating a relationship with a brand owner before winning business. And while the upfront investment of time and resources can be significant, so can the payoff.
“We look to establish a relationship that's broader than just the procurement. We're looking to establish a relationship that gets into some level of engineering or technology or marketing and R&D,” Stodola said.
“One big brand at a time is how we've grown,” he said. “We look for the brand that is going through some redefinition process and is starting to put up people and funds to make a project real because they want to pivot somehow.”
The growing sophistication of store brands and their on-shelf look means that established national brands now are facing more challenges and the need to differentiate themselves, Stodola said.
“You are looking to find those individuals who have defined a need and show them why going with unique and different is better than a stock approach,” he said. “The premise of our business model from the start is to be focused on brands and brands only to help them differentiate themselves to sell more.”
The 2008 economic downturn put pressure on brand names as more and more people looked to store brands to help their money stretch further. National brands still enjoy 75 percent of the market in the United States, compared with 25 percent for store brands. But store brands are growing at twice the pace of national brands, Stodola said.
“As the consumer goes, they are having trouble differentiating what is a store brand, or what we used to call a private label, and what's a national brand,” Stodola said.
That's where the injection molding company can help.
“The first moment of truth is you have to be visually compelling. You have to stand out so that the consumer grabs it, and if they grab it, the data said that eight out of 10 times, 80 percent, they will put it in the cart and buy it,” he said. “The second moment of truth is the package functions well so that it adds value to the brand at the best case and at the worst case it doesn't detract from the brand.”
Times have changed when it comes to marketing products, the vice president said.
“It's not as easy as running an ad campaign on national television and having consumers buy your products anymore,” Stodola said, adding that younger consumers “learn about things way differently.”
Nypro Packaging will not be a brand owner's cheapest option. “But they get what they pay for. ... We are able to look people in the eyes and say if you want to make a change, we'll take care of your brand,” he said.