Chapter 1

  Find Out More“We can save you 12%
of your annual print costs”
For FMCGs with more than 10,000 skus, that could mean
over €30 million savings per annum.
  Find Out More“Could we be saving
you millions?”
By rationalising the number of inks used to print
your packaging.
  Find Out More“9 out of 10
 Marketers”
 
Can't tell the difference between our harmonised
work and previous un-harmonised designs
  Find Out More“So you think your brands
are colour harmonised?
Think again”
Ink reduction is not the same as colour harmonisation.
  Find Out More“Visible savings that
don’t compromise
your brands”
Quality is the very essence of what we do.
  Find Out More“A patented process from
a consultancy you can
trust”
LFH is a Top 10 UK Design Consultancy
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Boost Shareholder Value

Cut costs, raise profits, satisfy shareholders

Cost-savings mean little if a positive impact on your bottom line is outweighed by a negative impact elsewhere in the business. That’s basic business sense.

Chapter 1 extracts visible and measurable cost-savings from within your supply chain – without compromising the quality or value of your brands which customers trust.

Its unique technology has resulted in the award of a European Patent in 2011 for ‘printing process’ innovation. Chapter 1 represents technology you can trust, from a consultancy you can trust.

 

Let the numbers speak for themselves

A FMCG giant invited LFH to work on some of its most valued powerbrands across its food, oral care and household categories.

After LFH applied its Chapter 1 technology to more than 1,500 SKUs, this FMCG achieved annualised savings of €5 million per year.

This means that an FMCG with a brand portfolio of 10,000 SKUs could easily save €30 million per year.

And with a P/E multiple of 17 (the FTSE 250 average), this could mean more than 1/ 2 billion of enhanced shareholder value added to your company.

With a rapid payback and high ROI, shareholders and board directors will be equally happy.

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A Powerful ROI

Visible cost savings without compromise

Complexity and inefficiency are two of the biggest drains on company profitability.

To make it worse, they can be hard to eradicate because they are often disguised as ‘operational necessity’ or ‘technical limitations’.

But when it comes to your print packaging process, regardless of the claims your current print management agency (PMA) may make, there is a much more efficient way to get the results you need.

It’s called Chapter 1 – and it means you will be able to realise substantial savings from your print supply chain quickly.

Your incumbent PMA, like any business, is trying to maximise its profits. Complexity and inefficiency in your current processes is bad news for you, but great for their business model, because they get to charge you for having to do more work.

 

"Simplify to amplify" savings

LFH’s patented Chapter 1 solution is all about achieving simplification and efficiency in your total print process – that means inks, substrates, packaging types and even print processes. This means that economies of scale can be applied to your print supply chain - with all the cost benefits this entails.

Chapter 1 also leads to more ‘right first time’ decisions, which means an improved speed to market. That is all good news for global brand owners – but bad news, perhaps, for incumbent PMAs.

 

Real savings NOW, not later

Chapter 1 can realise visible cost savings of up to 12% of our clients’ annual print budgets.

For FMCG companies with more than 10,000 SKUs, that is a significant sum saved every year.

With payback in as little as three months, Chapter 1’s ROI statistics comfortably beat the most demanding FMCG internal investment hurdles.

Take a look at our case studies, spanning various FMCG sectors, to see at first hand the potential value of Chapter 1 to your business.

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Guaranteed Quality

Seeing is believing – realise your vision with Chapter 1

As a brand manager, there is nothing more frustrating than seeing your carefully-crafted designs roll off the press looking lifeless because colour quality has been sacrificed to save money.

Sometimes they are not produced as you expected, because no one can control a process using a hundred plus inks.

With Chapter 1, quality is the very essence of the product, alongside the huge economic benefits it delivers.

Accurate colour reproduction is at the very heart of Chapter 1’s design. Unlike rival colour harmonisation packages, which have a generic and fixed six or seven colour palette, Chapter 1 has no such restrictions on reproducing brand colours – perfectly.

 

Nine out of ten is a great result

How accurate is Chapter 1’s colour technology? When FMCG giant Unilever adopted the technology, nine out of ten of its marketers couldn’t tell the difference between new and original packaging. The quality is that good.

Less ink, less cost, same vibrant colours

How can Chapter 1 boast such high quality when it’s harmonising a hundred or more inks down to a core six or seven?

The answer lies in LFH’s ‘connected expertise’ approach closely aligned to our patented process. We are an integrated design-to-production consultancy that puts brands at the heart of everything we do.

By selecting a relevant colour palette, based on the audit of your designs and supply chain, Chapter 1 can optimise your entire packaging process.

With a huge database of colour palettes and profiles, the flexibility to drop-in colours and print accurate proofing on any substrate, Chapter 1 is quickly becoming the brand owners’ choice for quality packaging printing without paying a premium.

Big business is already taking note. Already Unilever has entrusted its power-brands to Chapter 1 technology, saving money without jeopardising brand value.

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Are Your Colours Harmonised?

Ink reduction is NOT the same as harmonisation

When asked, most brand owners believe that they have already ‘colour harmonised’. Chances are, they haven’t.

 

No wonder printing’s so expensive...

Sun Chemicals, the world’s number one producer of inks for packaging, has more than 25,000 different inks in its portfolio.

You only need six or seven inks to print a single piece of packaging – but you can easily use over 100 different inks to print a complete brand range.

Using more inks directly leads to added complexity.

1. Print management agencies (PMAs) have to juggle multiple inks.

2. Engravers have to create cylinders and plates for each different colour used.

3. Printers have to spend time changing inks between each print run.

This complexity and additional work burden means only one thing – extra costs. That’s great news for all your existing print process suppliers – but not so good for you, because your company is the one footing the bill.


Has YOUR print management got the blues?

Take the case of ‘reflex blue’. The ink is prominent on the packaging of many household goods because it is perceived to convey safety and effectiveness.

For such a prominent, brand-driven colour, you may expect there to be one standard ink, consistent across different SKUs. But you’d be wrong. We’ve seen one company use more than 20 different reflex blues in a brand range – purely because of poor quality control.

Chapter 1 enables brand owners to cut through this unnecessary complexity to achieve rapid, ongoing and visible cost savings.

What’s the difference between reduction and harmonisation?

Most companies that believe they have colour harmonised are in fact only rationalising complexity around the edges.

When a brand owner’s PMA reduces the number of different reflex blues in a brand range down to a single instance, this is still only ink reduction – NOT colour harmonisation.

Similarly, cutting a range down from 100+ inks to 50 inks is reduction – not harmonisation.

True colour harmonisation comes from rationalising a brand range – typically 150+ brands & variants using 100+ inks – and reducing these inks down to only six or seven. Only then can they leverage substantial cost savings via economies of scale.

That’s the Chapter 1 approach.


A final word about your existing PMAs

It’s easy to see why your incumbent PMA may not share LFH’s appetite for reducing complexity in the supply chain.

Who can blame them? Why cannibalise their lucrative business model? And if the same PMA is also in the inks business, you’ll see why real, effective colour harmonisation may not be at the forefront of their minds.

That’s why LFH, as an independent consultancy, is best placed to advise you on real colour harmonisation for your brands.

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Economics of Chapter 1

Economies of scale trigger great ROI

Chapter 1 is about simplifying and streamlining.

It’s about rationalising your packaging ink palettes from 100+ down to only six or seven key inks.

This can save up to 12 per cent of your annual printing costs, with no discernible alteration in the visual impact of your brands.

Printing costs are a large part of the total cost of getting a product onto supermarket shelves.

Simply put, complexity and inefficiency at the printing stage inevitably means more costs.

The costs of printing a single unit of product packaging comprise:

1. The costs of the material (or substrate) used to hold the product

2. The ink used to print the designs onto the substrate

3. Warehousing and transport

4. A fixed-cost allocation to cover the printing press, plates and related costs

Each printing press represents millions of Euros in fixed costs. This means the ‘per unit’ fixed-cost allocation can be a major component of the total cost of a single piece of packaging – typically between 40% and 60%.

It follows that the larger the output from a printing press the lower the ‘per unit’ fixed cost (and vice versa). Any process that therefore allows a printer to increase production from his fixed-cost press will bring prices down.

Win-win-win for shareholders, brand owners and printers

Chapter 1 increases press output because it provides a fixed and constant set of inks for printing a broad range of brand packaging (almost 500 brand SKUs in one example).

This means far fewer set ups and wash-downs between print runs - good news for your printer and good news for you.

We have seen wash-downs and set-ups that have taken up to half a day each, a monumental loss of printer efficiency. Chapter 1 reduces this downtime and increases output.

Chapter1 can deliver press capacity improvements of up to 40% - and the resulting economies of scale benefits can be shared between the printer and brand owner.

And further savings can be achieved through the use of fewer cylinders and plates - because less inks are being used.

 

Annual savings overcome internal investment hurdles

Our experience across a broad range of successful projects shows that between €710 and €6,000 can be saved each year per stock keeping unit (SKU) converted.

For multi-brand owners with 5,000+ SKUs across their portfolio, that could represent an annual potential saving of up to €30 million per year – ROI metrics which comfortably pass most FMCG internal investment hurdles.

By integrating Chapter 1 into your systems, we’ll deliver faster, less costly packaging without sacrificing any quality.

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Green Business

Decrease your costs and increase your sustainability

Businesses are under increasing pressure from both consumers and legislators to be more environmentally aware and run their operations in a more sustainable way.

By its very nature, the printing and packaging industry has traditionally used a lot of resources – substrate, ink, chemicals, electricity and water.

The challenge for our generation of technicians and innovators is to use these resources more efficiently and find more environmentally sensitive ways of produce high quality packaging.


A new Chapter for your green agenda

Many of the more obvious ‘green business’ options are already being used. Companies are using less packaging and reducing the bulk and weight of their materials. But once that’s done, what other steps can be taken?

The good news is that by harmonising your colour palette, reducing your ink use and cutting the amount of chemical wash-downs required by presses, Chapter 1 enables you to immediately, dramatically and measurably improve your resource efficiency.

A greener, leaner solution for your packaging

Anyone who’s seen a printing press in action will know how inefficient the process is.

Waste is created at every step of the process:

1. Changing over packaging designs and palettes

2. Giving chemical baths to the press between 'runs'

3. Frittering away power during wind-down and speed-up periods

4. Sacrificing substrate during 'set-up' time

But with Chapter 1, the common ink palette means there is no need to change ink between design changes. As a result, fewer chemicals wash-downs are needed and the set-up time is far quicker.

As a bonus, Chapter 1 solutions generally avoid the use of black ink, which is harmful to the environment due to its high graphite content – graphite being a key contributor to carbon dioxide.

Chapter 1 is one green solution which, thanks to its money-saving ability, will certainly please your company’s CFO as well.

 

       

Could you be saving millions on colour management?

Your packaging is important – it’s what holds, protects and promotes your Brands. But in all likelihood, you’re paying too much for its printing.

Explore our website further to learn how you could save millions of Euros every year, by using Chapter 1, our patented colour harmonisation system.

 

16th February 2012 "LFH Wins 2012 DBA Design Effectiveness Award for Unilever 'colour harmonisation' project"
Financial Times 16/7/2011 Chapter1 is; " a technological breakthrough that could take LFH into another league"
News In Brief Global FMCG declares Chapter 1 - number 1, for both cost-savings and quality.
News In Brief "Chapter1 granted a European Patent 25th July 2011 (Application number: 11003687.8)"
LFH Illuminating Brands, 203 Eversholt Street, London NW1 1BU - Telephone +44 (0)207 383 5600