| HOME DEPOT CUSTOMERS RECEIVE A MIRACLE PACKAGE
Primarily an institutional supplier, Miracle Sealants opens up new retail business thanks to new fluorinated bottles and sleeve labels.
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| Miracle Sealant's new home-improvement retail
products come in this two-layer teal-pigmented bottle with a sleeve
label. |
At retail, it's often said that when Wal-Mart talks,
manufacturers listen. The same is true for Home Depot for
those who make home improvement products. However, a couple
of years ago, Miracle Sealants, an Arcadia, CA-based maker
of chemical products to preserve and protect marble, stone,
and tile, became a reluctant supplier for Atlanta-based Home
Depot.
That's because Miracle Sealants, a family-owned company
that served the commercial and institutional market, didn't
want to jeopardize its franchise with contractors and installers.
Of course, it was their reputation for high-quality products
for contractors that made Miracle Sealants so attractive
to Home Depot.
First, the manufacturer began to package its products for
Home Depot under the retailer's own brand name. Then
the retailer began to pressure the manufacturer for more
attractive packaging that would appeal to the consumer.
“Our company had always grown due to our products,
not our packaging,” explains Albert P. Salvo, vice
president and head of marketing at Miracle Sealants. “We'd
always put our products into white bottles that had a very
industrial look. Our feeling was that contractors didn't
want packaging frills; they'd prefer a discount on
the price instead. So we never spent any more on packaging
than we had to.”
To respond to the retailer's demands, Miracle Sealants
called on Airopak, the molder of its fluorinated containers
for help. Airopak is a unit of PVC Container Co. (Eatontown,
NJ). Eventually, Airopak's Manchester, PA, plant installed
new equipment that allowed the supplier to produce new teal-pigmented
containers in sizes from pints to gallon F-style bottles.
But the project had a tight timetable. Home Depot wanted
the new containers for the home improvement industry's
biggest exposition two years ago. That meant that, from concept
to finished bottles, Airopak and Miracle Sealants had just
six months.
Total repackaging
If the Salvo family had initially been
reluctant to move into retail distribution, they proved they
weren't
shy about making changes. “Early on, we made a marketing
decision to not sell our existing line of products at retail,” Salvo
explains. “We wanted to remain loyal to our existing
clientele. So we developed a new line of products, not ‘industrial-strength' like
our professional line, along with different price points.
We didn't just change packaging, we also expanded the
product line, based on meetings with buyers, reps, and the
retailer.”
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| The company also redesigned its professional line of
products in a coextruded blue bottle now decorated with a sleeve label.
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Some of the new automotive retail chains provided the inspiration
for Salvo and his staff. They closely examined the packaging
for motor oils and similar products that led them to develop
a family appearance for all their products and sizes. Once
the bottle color was selected, the sleeve-label graphics
were designed in-house. Because the label is printed on a
clear substrate, the printing didn't have to match
the bottle color.
“We wanted to come up with a look that quickly communicated
our brand and the product function—without the consumer
having to read a lot of copy,” Salvo points out. And
the buyers from Home Depot were also involved. “The
packages and label graphics were ‘co-approved,'” Salvo
says. “Our rep took the designs to them before we went
ahead.”
New equipment for coextrusion
Although Airopak had enjoyed
Miracle Sealants' business
for more than a decade, it recognized the challenge of fluorinating
pigmented bottles. Monolayer high-density polyethylene bottles
fluorinated in-line were fine, but the company knew it would
need to coextrude the tinted bottles with the color on the
outside layer and natural HDPE for the inside treated layer.
The plant was well equipped to provide those in the pint
and quart sizes, but it lacked coextrusion capability for
the F-style gallon bottles.
The plant had to retrofit a new coextrusion head and a new
extruder to its existing blow-molding line for gallons. “This
was the same style of coex head we already employed on our
other equipment for the smaller sizes,” says Alan Wood,
Airopak's vice president for sales and marketing. He
declined to identify the manufacturer of the coextrusion
head or the extruder.
In fact, with the head, the company added two new extruders,
so that it could not only make two-layer bottles, but also
add a window stripe, a feature not used by Miracle Sealants.
Wood notes that Airopak makes the outer pigmented layer
thicker than the natural one inside. This provides the opacity
the manufacturer requires, and the fluorination process doesn't
require more than a thin layer to bolster the barrier properties
for solvent-based products packaged in plastic bottles.
The bottles could have been treated in an off-line post-treatment
process; but because this is applied to the outside of the
bottle, it can dull the bottle's finish and cause some
color inconsistency. Plus, according to Wood, the increased
production step adds converting cost.
Despite the new bottle's additional layer, Wood reports
that Airopak has been able to maintain the same bottle weights
as before from the same bottle molds; the 1-gal size, for
example, weighs 150 g. “So the only cost increase is
for the colorant,” Wood points out.
New professional bottle, too
Shortly after the manufacturer
committed to the new retail bottle, it also decided to repackage
the professional line
of products. “We hadn't made any changes to this
product line since its inception many years ago,” Salvo
reports. “So we decided to upgrade the packaging for
our commercial products, too.”
For this line, the company chose a deep blue bottle color
that Airopak produces by the same coextrusion and in-line
fluorination process. Although the bottles were originally
spot labeled, they have just been converted to sleeve labels
as well. However, the label graphics have a more industrial
look. Salvo says that all of Miracle Sealants' products
are packaged at a network of contract packagers around the
country that then ship finished cases of product to one of
two company warehouses.
“Since the package change, we've increased our
sales both in retail and commercial markets,” he says
confidently. “But we'd never let the retail part
of our business become too large. We wouldn't want
that part of the business to control what we do.”
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