News

CLARION RESEARCH AND DEVELOPMENT - A HEDGE IN INFLATIONARY TIMES

May 2008

During the first quarter of 2008 the Rand weakening against the Euro has seen the cost of some imported raw materials increase by as much as 35-40%.

This coupled with local cost increases has seen finished product increase by as much as 30%. The implication is that Clarion clients and there brands are driven to more cost effective supplier and product options as they seek to retain their competitive positions and market share.

In this environment the Clarion "New Product Development Driver Team" is challenged to bring not only product alternatives but also changed production procedures to market. This team meets on a regular basis and has a list of projects under development.

Recently an economical Cash Mat was developed and delivered to British American Tobacco and has proved to outlive its three-month Clarion guarantee by up to six months. Flowing from this development a more permanent Cash Mat with an interchangeable message feature was developed and tested. The first use of this option has proved highly effective.

Famous Brands who have enjoyed huge success with Clarion's Thermo chromic "If it's not Red (Hot) you get it Free" promotion for Debonairs, ran the risk of a 40% price increase on this product. But the Clarion Driver Team has come up with a solution that works for both Debonairs and Clarion.

Materials, inks and coatings are currently being tested in the Clarion Lab and some announcements will be made shortly.

During May a number of alternatives to existing products will be launched including top coatings with enhanced weathering capabilities, laminates with improved UV light resistance and a range of more cost effective digital printing inks.

A much improved petro-chemical resistant pump decal for the oil industry is also to be launched. In respect of finished products an option to the customer loyalty card is available as well as some very interesting marketing ideas suited to putting a positive spin on the energy crisis.

In these times a continuing programme of sourcing, testing and reviewing of Clarion's supply chain is an imperative. By casting the net wider alternative products of the same performance criteria have been found holding cost increments below the 20% mark.