Dujak, D., Ferenčić, M., Franjković, J. – Retail ready packaging – what’s in it for food manufacturers?

Dujak, D., Ferenčić, M., Franjković, J. – Retail ready packaging – what’s in it for food manufacturers?

Assist. Prof. Davor Dujak, PhD
Faculty of Economics in Osijek
Josip Juraj Strossmayer University of Osijek
Trg Ljudevita Gaja 7, Osijek, Croatia
Phone: +385 31 22 44 60
E-mail: ddujak@efos.hr

Martina Ferenčić, M.Sc.
Podravka d.d.
Ante Starčevića 32, Koprivnica, Croatia
Phone: +385 65 30 87
E-mail: martina.ferencic@podravka.hr

Jelena Franjković, mag.oec.
Faculty of Economics in Osijek
Josip Juraj Strossmayer University of Osijek
Trg Ljudevita Gaja 7, Osijek, Croatia
Phone: +385 31 22 44 43
E-mail: jelenaf@efos.hr

Scientific paper

Abstract

Process of concentration in retail market, as well in Croatia as in other European countries, has insured for retailers stronger negotiating position in fast moving consumer goods supply chain, especially in food chain. Retailers have initiated retail supply chain management – a lot of different cost efficiency processes in food supply chain which they were able to force with their suppliers, usually with the absence of an equitable distribution of savings that this collaboration enables. One of these is development of retail ready packaging for food products, designed from manufacturers’ side with main intention to reduce in store labour cost for stacking products on shelves. Goal of this paper is to investigate if food manufacturers can, and how, turn retail ready packaging into their own advantage instead of looking to this trend only as a factor that causes partly higher production cost.

Paper analyses supply chain and marketing aspects of change from ordinary packaging to retail ready packaging. Questionnaire study in Croatian food manufacturing companies was conducted, that revealed some potential for improvement of manufacturing echelon of supply chain when it comes to retail ready packaging. On-line questionnaire was distributed to all Croatian food manufacturing companies that manufacture products sold in retailing.

Research has shown positive connection between size of a company and degree of its retail ready adoption, as well as between start of significant RRP implementation and entrance of foreign retail chains in Croatia. RRP influence three kinds of costs for manufacturers, and main benefits of RRP for manufacturers are focused on shelf visibility, product image and relationships with retailers.

Regarding research limitations, study was conducted only in Croatian companies, and sample does not cover equally all branches of food industry. Regional survey would give a clearer view on retail ready packaging relationships in international food supply chains.

Paper clearly indicates contemporary relationships between retailers and manufacturers in food supply chain regarding retail ready packaging, where retailers demonstrate all their capabilities drawn from retail supply chain management. Additionally, paper argues that there is a good possibility for manufacturers to use advantages of retail ready packaging mostly from its advertising function as well from certain supply chain possibilities.

Key words: retail ready packaging, food supply chain management, food production industry, food retail trends

Last Update: June 17, 2016  

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June 15, 2016   651    BLMM 2014