Micro-business
Labelling in Australia
Presented by: Michael Trigwell, Taverner Research
Date:
08 February 2011
Presented by: Michael Trigwell & Justin Lewis, Taverner Research
Date: 17 February 2016
Project reference: 4951
agenda
methodology
1. Phase 1: N=18 depth interviews conducted in July 2015 to
inform the development of the questionnaire for Phase 2
2. Phase 2: N=135 online surveys completed
•
N=122 free find from online sources
•
N=13 through promotion on Avery’s Facebook page
•
Data collection between 12 November and 15 December
2015
3. Screening criteria
•
Must own a product based micro-business (Current:
N=44)
•
Planning to start a product based micro-business within
the next 24 months (Planners: N=91)
4. The results of Phase 1 were mostly confirmed in Phase 2,
therefore the findings from Phase 1 can also be read as being
indicative of the attitudes and behaviours of Current microbusiness owners
key objectives
1. Identify the key marketing, sales and promotional channels
being used by micro-businesses
2. Understand the current packaging and labelling solutions
being used by retail style micro-businesses
3. Identify the current challenges/barriers faced by microbusinesses in terms of packaging and labelling
4. Explore the interest and appeal of DIY and DIFM options
5. Determine the characteristics most likely to qualify a microbusiness to need/want to utilise the Avery suite of products
Who Was
Surveyed?
DEMOGRAPHICS & BUSINESS PROFILE
Current
%
Planners
%
18-24 years
16
15
25-34 years
43
46
35-44 years
16
20
Age range
45-54 years
16
14
55-64 years
5
3
65+ years
5
1
Main Reason for Starting/Wanting to Start a Micro-business
77
47
43
Current
Planners
23
5
Current
%
Planners
%
Male
25
47
Female
75
53
Gender
Financial reasons
Interest/hobby
4
Family/Friends
encouragement
Other
Location Business is Based or Planned to be Based
100
Supplementary or Main Income
69
Supplement part time income
Supplement full time income
Main source of income
Current
Planned
75
62
Current
16
13
Planners
29
9
5
25
Based at home
3
Based at commercial Based somewhere else
space
4
Don't know
SAMPLE SPECIFICATIONS – CURRENT BUSINESS OWNERS
%
Number of items
typically sold per month
%
Only the respondent
84
0
2
Less than 1 year
11
2-5
14
1-10
39
1-2 years
21
6-10
2
11-20
16
3-5 years
10
More than 10
0
25-50
20
6-10 years
2
51+
23
More than 10 years
0
Number of employees
Current Product Offerings
How long has the business
been established
%
Mean number of items sold per
month
49
Premium
product
18%
Unusual/
niche
product
41%
Product with
widespread
appeal
41%
Products Sold
41
25
11
Clothing &
Accessories
Food
9
Jewellery
7
Candles
5
Health & Beauty
2
Cosmetics
Other
Marketing,
Promotion &
Distribution
micro-businesses are engaged
with online channels
SALES CHANNEL USED OR PLANNING TO USE
89% online – current owners – 3.2 channels used per business
81% online – planning to own – 2.4 channels expected to be used
48
48
42
45
47
42
Current
Planners
28
25 25
23
25
20
22
14
11
5
Online through
Facebook
Through online Online through
Stall in a
Your own store
marketplaces your own website farmer/weekend
market
Online through
Instagram
Someone else's
store
Online through
someone else's
website
2
3
Other
PROMOTIONAL CHANNELS USED OR PLANNING TO USE
93% online – current owners – 2.6 channels used per business
75% online – planning to own – 3.6 channels expected to be used
Facebook
61
Instagram
36
23
Your own blog
43
33
16
17
Commenting on other blogs
16
Promotional materials (e.g. fridge magnets)
Twitter
14
Letter box drops
14
Cold calling
8
11
Paid online marketing or advertising
11
Trade fairs or conferences
7
Directory listings (i.e. yellow pages)
7
Newspaper advertisements
2
Other social media
2
3
25
Current
31
Planners
31
11
Online forums
Other
80
22
44
8
19
11
11
Packaging
Used
95%
of current microbusiness owners
package their own
product
PACKAGING AND LABELLING: CURRENT MICRO BUSINESSES
Number of items
typically sold monthly
%
One to Four
55
Five or More
45
Packaging Style
48
30
23
14
7
Packaging for Products
I create my own packaging and package the
product myself
I purchase pre-made packaging and package
the product myself
I have someone else package the product or
buy the product already packaged
2
Home-made
Professional
Organic/
environmentally
friendly
Classic
Glitzy
High impact
Family
Packaging Method
50
5%
7
36
36%
16
59%
16
7
Plastic/ see through
bag
Cardboard box
Glass/ plastic jar/
container
Other
Paper bag
Product
Labelling
Look and feel of the
packaging and
labelling is very
important to…
73% current
89% planning
WHY LOOK/FEEL OF LABELLING & PACKAGING CONSIDERED VERY IMPORTANT
“Because the final
product represents
your professionalism
and quality”
“It makes a more
professional
impression on the
buyer”
“Brings more sales if
the product stands
out”
“People buy with
their eyes”
“Professional looks
make or break a
product”
“Beautiful packaging
helps sell the
product”
“People judge
products based on
looks”
“It’s the impression it
creates that
matters”
WHY LOOK/FEEL OF LABELLING & PACKAGING NOT CONSIDERED IMPORTANT
“Product efficacy is
of primary
importance”
“My product sells
itself before it is
packaged… that
doesn’t add anything
to my customers”
“Labels are often
passed by, it’s the
product that
matters”
“The quality of the
products will
determine success”
“The item sells
regardless of the
labelling”
LABELLING APPROACHES CONSIDERED
Planners more geared towards outsourcing
59
Current
55
Planners
46
36
29
25
14
14
11
3
2
Designing and printing Using a printing company Contacting/contracting a
my own labels
designer
Enlisting help from
family/friends
Other
2
Nothing
68%
of current microbusiness owners use
labels or tags
METHODS OF LABELLING USED
Current micro-business owners started out using a full DIY solution,
however a small proportion have graduated away from this approach.
Those who have changed how they label their products (n=7) do so
because they now had the financial means or they wanted a more
professional or polished look.
-7
Current approach used
Approach first used by current owners
Approach planners expect to use
39
35
32
32
31
32
25
18
13
11
13
9
8
2
Design labels and print myself
Unprompted – Current Use
- n=5 I make them myself
- n=4 Vistaprint
- n=2 Officeworks
- n=1 Avery from Officeworks
Design myself and have
someone else print
Someone else designs the
label and I print the labels
myself
Someone else designs the
Do not use/ not planning on
label and prints them for me
using labels
25%
of current micro-business
owners said they had ever
used an Avery solution to
label their products
My labels must
have…
Brand/logo
Product name or description
Business contact details
150+
Mean number of labels printed per
month amongst those who use labels
Number of labels printed/ pay to
have printed per month
%
1-10
30
11-50
23
51-100
17
101+
27
Design
Expertise
CHALLENGES TO PACKAGING AND LABELLING THE PRODUCT
Affordability and professional look and feel are the main challenges
faced by micro-business owners and those planning a microbusiness.
43
Current
34
Planners
35
32
23
24
23
19
18
16
11
17
13
11
7
7
5
Affordability
Want them to look
more professional
The time taken to
Not happy with the
apply the labels takes look of the labels
me away from other
areas of my business
Wish the labels were Wish the labels were Have issues keeping
Difficult to
more customizable
more customizable up with demand (need communicate my
(look)
(size)
a larger scale solution) vision/design/look to
the designer/printer
Other
ASSISTANCE WITH LABEL DESIGN
Planners are more likely to expect they’ll get assistance with their
labelling, while the reality according to those who run microbusinesses is that half of them did it themselves
Current
Planners
50
46
30
25
18
18
17
7
18
7
1
Family/friends helped
design
Paid a designer
Paid some other
professional
Paid for online design
tools/software
Other
None, have done
everything myself/not paid
REASONS FOR SEEKING ASSISTANCE WITH LABEL DESIGN
Affordability and professional look and feel are the main challenges
faced by micro-business owners and those planning a microbusiness.
Current
Planners
65
45
32
27
24
27
18
5
Professional designer
Had been in a similar position/ Skills/ experience in using online Had contacts within the design
starting up
design tools
industry
5
5
Other
DIY & DIFM
Appeal
INTEREST, APPEAL, ADVANTAGES AND DRAWBACKS IN DIY LABEL SOLUTIONS
Drawbacks to Using DIY Labelling
Interest in DIY Printing
Current
50 53
Extremely interested
Neither interested or uninterested
Not at all interested
Planners
Current
57
45
50
9
14
12
Planners
51
55
Very appealing
Neither appealing on unappealing
Not at all appealing
Planners
59
48
Current
55
45
Planners
Cheaper
Somewhat appealing
Somewhat unappealing
43
7 5
47
Very appealing
Neither appealing on unappealing
Not at all appealing
Produce labels
as needed
222
Other
70
61
44
Appeal of DIY Printing
Current
70 67
7 2
Somewhat interested
Not very interested
49
Advantages to DIY Labelling
65
9
3
Final look would be My lack of expertise Would take too
Not cost effective
less professional in design/material much time needed
creation
for other areas of
the business
73
32
Extremely interested
Neither interested or uninterested
Not at all interested
34 34
Somewhat interested
Not very interested
Produce small Can change your Have more
Have more
quantities/runs label frequently control over the artistic freedom
look of the final
product
53
Somewhat appealing
Somewhat unappealing
32
12
21
INTEREST, APPEAL, ADVANTAGES AND DRAWBACKS IN DIFM OPTION
Drawbacks to Using DIY Design but Paying for Printing
80
Interest in DIY Design but Paying for Printing
Extremely interested
Neither interested or uninterested
Not at all interested
75
Current
Somewhat interested
Not very interested
Planners
Current
11
45
25
2
16
48
38
36
33
26
14
Cost/expensive
Have to wait
Extremely interested
Neither interested or uninterested
Not at all interested
Planners
25
48
15
9 2
Would not know who to Have less control over
use/what type of
the look of the final
company
product
Advantages to DIY Design but Paying for Printing
Appeal of DIY Design but Paying for Printing
Very appealing
Neither appealing on unappealing
Not at all appealing
61
Current
54
Somewhat appealing
Somewhat unappealing
Planners
Current
41 40
Somewhat interested
Not very interested
18
45
16
5
16
36
30
23
27
Very appealing
Neither appealing or unappealing
Not at all appealing
23 23
9
Planners
Achieve a more Saves me time
Have the
Have more
Have more
professional
to dedicate to
expertise of artistic freedom control over the
looking final
other areas of professionals in
look of the final
product
the business
that area
product
Other
24
40
Somewhat appealing
Somewhat unappealing
21
9
7
Other
Information
PERCEIVED BARRIERS TO BUSINESS SUCCESS
Time, competition and marketing are the biggest barriers current
micro-business owners face
64
49
52
45
45
44
43
Current
Planners
30
24
14
2
Amount of time I can Competition in the same Exposure and marketing My own experience in
Looking
Poor labelling solution
dedicate to the business
market
reach
running a business
unprofessional/products
appear poorly presented
3
2
Other
PERCEIVED SUCCESS OF BUSINESS: CURRENT MICRO-BUSINESSES
Despite these challenges, many micro-businesses are reported being
successful.
Exceeding initial expectations/goals
Performing poorer than expected
20
Meeting initial expectations/goals
Had no expectations
43
23
14
FUTURE GOALS OF CURRENT MICRO-BUSINESS OWNERS
9 out of 10 current micro-business have plans and goals to grow
their business
73
61
52
11
Increase revenue/income
Increase my customer base
Increase my number/variety of
offerings (i.e. new product lines)
Have no formal goals/plans for
growth
NETWORKS OF INFLUENCE
Current owners are more likely to have relied on their own
experience, while those planning a micro-business expect more help
from family/friends and others already operating businesses
45
44
41
Current
Planners
31
27
20
23
18
18
18
14
5
Own experience in the
industry
Family/friends involved in Resources from a previous Owner/operators of other
similar product production business I was involved with
similar businesses
Entrepreneurial group
Other
EQUIPMENT OWNED
While the majority of current micro-business owners and those
planning to start a business have the equipment to DIY label their
products, there’s still 1 out of 10 who do not
93
90
89
82
Current
Planners
57
48
32
34
22
18
12
Computer/Laptop
NETT Printer
Inkjet printer (Colour)
Laser printer (Colour)
Inkjet printer (B&W)
16
Laser printer (B&W)
Summary &
Conclusions
Planners have Different Expectations
The majority of those planning on starting a micro-business had quite different
expectations than those who are already running a business. These unrealistic
views could either lead to them not starting their business or provide an opportunity
for Avery to work with this group to ready them for the future.
Having a Product to Graduate to Is Important
As expected current micro-business owners have indicated either graduating away
from a DIY labelling approach, or have indicated that time is something they do not
have a lot of. To avoid losing those who adopt a DIY solution, Avery should consider
how they can provide a more integrated solution where labels and packaging are
integrated. This could be done either by extending into providing pre-labelled
packaging for micro-business owners or partnering with those who already provide
packaging.
A Professional Look Is Important
While the DIY approach provides benefits, to appeal to this target market it has to
come across as being professional as well. DIY is fine, so long as it doesn’t look
DIY. The labelling of products assists in the selling of the product according to most.
Presented by Michael Trigwell & Justin Lewis
Presented by: Michael Trigwell, Taverner
Research
Taverner
Research 17 February 2016
Date:
08 February 2011 * All image rights owned by Shutterstock