Maximizing your return on the Cost Of Manufacturing

Actually making the product is the largest cost for many manufacturing companies but over time what marketing asks of the product spec gradually increases the cost per unit. Our client was concerned that they had reached a stage where features built into the product and packaging no longer had value to the consumer.

Working with the Marketing and Manufacturing teams we set about understanding, at a truly granular level, which product and pack features had value and drove equity in the brands. What did each physical element actually contribute in terms allowing brands to compete and ideally, positively differentiate themselves from the competition

An extensive qualitative programme of research was conducted across several countries to identify all the attributes that appeared to contribute towards quality perceptions. This was taken down to a micro level e.g. firmness of the product filling, how much should it give when squeezed – level to which the logo should be embossed on the pack – etc.

The results were presented using an adapted Kano model which identified which attributes/levels fell into the key categories – Must Have – Sign of Quality – Differentiates – Nice but Worthless! Even from this initial analysis the client team made changes to the production spec to reduce wastage by not spending money on features with little value and investing in enhancements that did have value.

The client took this project forward on a big scale – quantifying the result across the main global markets and developing a maximum ROI production template for each of its brands.