SIG’s QR connected pack solution boosts Brazilian dairy producer's sales by six percent

27 Jul 2018 --- Brazilian dairy producer Languiru has achieved a six percent spike in milk sales thanks to a promotion pilot which allows consumers to scan QR codes via their smartphones to unlock coupons and prizes. Each milk carton, including chocolate milk (Chocolan), is printed with a unique QR code accessible by a SIG-developed app, enabling Languiru to reward customer loyalty and better understand the behavior of consumers. The SIG technology has proved popular, with more than 12,000 codes generated every hour.

“Consumers today are extremely connected and are looking for brands they can identify with. Digital promotions make it possible to connect directly with consumers, customized to the intended target group and tailored to the respective target group, their preferences or their location,” Ricardo Rodriguez, President & General Manager, SIG Americas, tells FoodIngredientsFirst. “In addition, the tool and digital promotions help brands to better understand consumer needs. It makes it possible to collect relevant consumer data, to analyze purchasing behavior and to identify preferences.”

“With the generated data it is possible to identify purchasing patterns of the customers, for example, what is bought and where. In this way, future sales campaigns and targeted actions can be planned more precisely, directly at the point of sale. It is also possible to obtain and store master consumer data. Personal data is treated confidentially. The database generated is analyzed on a consolidated basis, according to geographical areas. The consumer can choose to stay in touch with the brand and receive regular information about new products and offers,” he adds.

The connected consumer
This year, a sales promotion pilot using individual QR codes on every SIG carton pack was trialed in southern Brazil by Languiru, one of the largest dairies from the state of Rio Grande do Sul, with some impressive results. QR codes were used on all cartons of Languiru milk, including chocolate milk (Chocolan), with more than 12,000 codes generated every hour, connecting the consumer with product data via their smartphone.

Consumers in store said it was easy to download the Languiru app, developed by SIG, and liked that the milk was from the local region. Their children were reportedly delighted with the emoji cushions they were able to redeem with the coupons and took them into school to show to their friends and teachers. Those shoppers buying the largest volume of milk gained the most cushions and they were extremely popular, leading to a 6 percent growth in sales for this milk and chocolate milk brand. Prizes included bicycles, smartphones and shopping vouchers.

Interestingly, 94 percent of participants were android phone users and just 6 percent apple users with 71 percent of those using the code women, including 56 percent in the 19-30 age group and 35 percent in the 31-60 age group.

“In Brazil, the majority of the population uses the android system. According to the International Data Corporation (IDC), 95.1 percent of smartphones sold in 2017 had the Android system, 4.9 percent were equipped with IOS,” Rodriguez explains.

Tailor-made promotions
Dirceu Bayer, President of Cooperativa Languiru, says: “SIG’s solution not only provides a 1:1 connection with our final consumers, but also opens up opportunities for tailored made raffle promotions with our retailer partners. The giveaway promotion ‘Bought, looked, won’ fully met expectations and improved our relationship with our customers. Through the use of this technology, we can learn more about our consumers, providing valuable information for commercial and marketing teams.”

Languiru’s latest digital promotion is the next stage in making best use of the integrated Connected Pack Solution, designed by SIG and Siemens, which collects product quality data at every stage of the product journey, from the beginning of industrialization process of the raw material to the supermarket shelf, and stores all information in one database.

The dairy concept “Qualidade do inicio ao fim”, which translates as “Quality from beginning to end,” was the basis for Languiru to engage with consumers who can access all important data, from production dates to quality analysis. The QR code has become Languiru’s quality stamp, resonating in other products and categories within the portfolio. This builds on the established inline monitoring system and vast data collection, which ensures efficiency in both production and logistics.

Monitoring operations and logistics 
“QR codes on cartons mean our consumers are able to trace products from their industrialization right to the shelf,” says Euclides Andrade, Managing Director of Cooperativa Languiru. “Besides that, we benefit from detailed end-to-end value chain performance monitoring, which enables us to improve operations and logistics. SIG understood our demands and developed a tailor-made solution for Languiru that demonstrates our quality and adds value to our brand.”

A further advantage of this new technology is that it is linked directly to the Languiru production lines. This maximizes the dairy plant’s overall efficiency and cuts operational and investment costs by using a specific information intelligence tool known as Power BI. The power of a single QR code is substantial in enabling track and trace from plant to store shelf.

“The first digital promotion with Languiru was very successful – both for Languiru and for Brazilian consumers. SIG’s Connected Pack solution enables us to meet individual customer requirements with tailor-made solutions that ensure greater food safety and traceability, but also optimize logistics and drive growth through digital marketing and digital promotions. A number of additional projects are already in the planning stage,” Rodriguez concludes.

Read more about connected packaging technologies here.

By Joshua Poole