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Retail vs Club Stores
Document:
Expanding a product from just the retail market into the club store market requires an extensive amount of consideration. Through this project scenario, DewyGlo considers the qualifications to extend into club stores with their moisturizer. This project uses Olay's packaging system for their moisturizer to practice considerations for expansion.
Primary Packaging Tub
This tub includes three components: acrylic tub, PP insert, and chrome finished cap.
Retail Primary and Secondary Package
The acrylic tubs are sold in a reverse tuck carton to protect the tub. The tub is considered primary packaging while the carton is secondary packaging.
Retail Secondary Packaging
RSC holding 12 reverse tuck cartons. This package is placed on a uniform pallet and sent to distributors.
Club Secondary Packaging
Trap blister packaging that holds two acrylic tubs.
Club Secondary Packaging
These display cartons hold six trap blister packages and are placed directly on the pallet.
Retail Package Pallet Configuration
A uniform pallet, GMA 48"x 40" with no overhang, is sent to distributors. This configuration holds 120 RSCs placed in four directions indicated by the different colors.
Club Pallet Configuration
Moisturizer is sold directly off the shipped pallet. There are four outer facing display carton sides making the pallet 360° shoppable. The pallet used is a block double face 48" x 40" pallet and can hold 80 display cartons with a total of 480 trap blisters. Following Costco's pallet requirements, there is 3" of underhang.
Shelf Presence of Retail Packaging
Shelf Presence of Club Packaging
Bill of Materials for Retail Product Packaging System (PPS)
This bill of materials goes through the entire PPS totaling the cost per one pallet for retail stores at $5,306. This does not include the moisturizer.
Bill of Materials for Club PPS
This bill of materials goes through the entire PPS totaling the cost per one pallet for club stores at $6,040. This does not include the moisturizer.
Retail Packaging TOPS Analysis
This analysis showcases the most efficient loading of the reverse tuck cartons into additional secondary packaging, tertiary packaging, and pallet. Then the pallets are loaded onto a typical semi-truck.
Club Packaging TOPS Analysis
This analysis shows the efficient packaging of the trap blisters into further packaging and truck loading formation.
Production and Filling Line Diagram
After filling and closing the primary tub, the production line is split into two depending on producing for club or retail stores. They come back together to be palletized.
Machinery Needed for Packaging Production Line
The total cost for machinery needed to produce both retail and club PPS is $527,689.
Retail Packaging Cost per Truckload
The total cost per truckload is $265,047 with 44 pallets loaded.
Club Packaging Cost per Truckload
For club PPS, the total cost per truckload is $189,477. The truckloads for club and retail are the same at 44 pallets.
Life Cycle of Primary Packaging
These life cycles start at the transformation of raw materials and packaging manufacturing going through filling and palletizing and ending at the consumer phase.
Life Cycle of Club Secondary Packaging
Life Cycle of Retail Secondary Packaging
ISTA Test Sequence
This test sequence is for a Type A package in the ISTA Series 6. The test is performed on a palletized load.
Return on Investment Calculations
Given research on top brands in the beauty industry, the return on investment was calculated to be roughly 0.19 years.
Primary Packaging Tub
This tub includes three components: acrylic tub, PP insert, and chrome finished cap.
Retail Primary and Secondary Package
The acrylic tubs are sold in a reverse tuck carton to protect the tub. The tub is considered primary packaging while the carton is secondary packaging.
Retail Secondary Packaging
RSC holding 12 reverse tuck cartons. This package is placed on a uniform pallet and sent to distributors.
Club Secondary Packaging
Trap blister packaging that holds two acrylic tubs.
Club Secondary Packaging
These display cartons hold six trap blister packages and are placed directly on the pallet.
Retail Package Pallet Configuration
A uniform pallet, GMA 48"x 40" with no overhang, is sent to distributors. This configuration holds 120 RSCs placed in four directions indicated by the different colors.
Club Pallet Configuration
Moisturizer is sold directly off the shipped pallet. There are four outer facing display carton sides making the pallet 360° shoppable. The pallet used is a block double face 48" x 40" pallet and can hold 80 display cartons with a total of 480 trap blisters. Following Costco's pallet requirements, there is 3" of underhang.
Shelf Presence of Retail Packaging
Shelf Presence of Club Packaging
Bill of Materials for Retail Product Packaging System (PPS)
This bill of materials goes through the entire PPS totaling the cost per one pallet for retail stores at $5,306. This does not include the moisturizer.
Bill of Materials for Club PPS
This bill of materials goes through the entire PPS totaling the cost per one pallet for club stores at $6,040. This does not include the moisturizer.
Retail Packaging TOPS Analysis
This analysis showcases the most efficient loading of the reverse tuck cartons into additional secondary packaging, tertiary packaging, and pallet. Then the pallets are loaded onto a typical semi-truck.
Club Packaging TOPS Analysis
This analysis shows the efficient packaging of the trap blisters into further packaging and truck loading formation.
Production and Filling Line Diagram
After filling and closing the primary tub, the production line is split into two depending on producing for club or retail stores. They come back together to be palletized.
Machinery Needed for Packaging Production Line
The total cost for machinery needed to produce both retail and club PPS is $527,689.
Retail Packaging Cost per Truckload
The total cost per truckload is $265,047 with 44 pallets loaded.
Club Packaging Cost per Truckload
For club PPS, the total cost per truckload is $189,477. The truckloads for club and retail are the same at 44 pallets.
Life Cycle of Primary Packaging
These life cycles start at the transformation of raw materials and packaging manufacturing going through filling and palletizing and ending at the consumer phase.
Life Cycle of Club Secondary Packaging
Life Cycle of Retail Secondary Packaging
ISTA Test Sequence
This test sequence is for a Type A package in the ISTA Series 6. The test is performed on a palletized load.
Return on Investment Calculations
Given research on top brands in the beauty industry, the return on investment was calculated to be roughly 0.19 years.
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