Micro-business Labelling in Australia Presented by: Michael Trigwell & Justin Lewis, Taverner Research Date: 17 February 2016 Project reference: 4951 Presented by: Michael Trigwell, Taverner Research Date: 08 February 2011

agenda Methodology Key objectives Who was surveyed Marketing, promotion & distribution Packaging used Product labelling Design expertise DIY and DIFM feedback Summary & conclusions

methodology Phase 1: N=18 depth interviews conducted in July 2015 to inform the development of the questionnaire for Phase 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 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) 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 micro- business owners Group 1 – MUST meet ALL criteria below – will continue through survey S1=1 S2=2 S3=1 S4=1-3 S5=4-5 S6=2-3 S7=1   Group 2 – MUST Meet 4 or 5 of the following criteria – will continue through survey

key objectives Identify the key marketing, sales and promotional channels being used by micro-businesses Understand the current packaging and labelling solutions being used by retail style micro-businesses Identify the current challenges/barriers faced by micro-businesses in terms of packaging and labelling Explore the interest and appeal of DIY and DIFM options Determine the characteristics most likely to qualify a micro-business to need/want to utilise the Avery suite of products

Who Was Surveyed?

DEMOGRAPHICS & BUSINESS PROFILE Age range Current % Planners 18-24 years 16 15 25-34 years 43 46 35-44 years 20 45-54 years 14 55-64 years 5 3 65+ years 1 Main Reason for Starting/Wanting to Start a Micro-business Gender Current % Planners Male 25 47 Female 75 53 Location Business is Based or Planned to be Based Supplementary or Main Income Q8S;Q7S;Q4S For Q8S – used value in average column in Q (rounded to nearest integer)

SAMPLE SPECIFICATIONS – CURRENT BUSINESS OWNERS Number of employees % Only the respondent 84 2-5 14 6-10 2 More than 10 Number of items typically sold per month % 2 1-10 39 11-20 16 25-50 20 51+ 23 How long has the business been established % Less than 1 year 11 1-2 years 21 3-5 years 10 6-10 years 2 More than 10 years Mean number of items sold per month 49 Q8S;Q7S;Q4S For Q8S – used value in average column in Q (rounded to nearest integer)

Marketing, Promotion & Distribution Q8S

micro-businesses are engaged with online channels Q13S Q45 – The question is asking different things (plans vs current practice – should not put the 2 on the same chart?) 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 Q13S Q45 – The question is asking different things (plans vs current practice – should not put the 2 on the same chart?)

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 Q14S Q46

Q8S Packaging Used

95% of current micro-business owners package their own product Q13S Q45 – The question is asking different things (plans vs current practice – should not put the 2 on the same chart?) of current micro-business 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 Q3;Q4;Q5;Q6

Product Labelling

73% current 89% planning Look and feel of the packaging and labelling is very important to…

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” “Professional looks make or break a product” “Brings more sales if the product stands out” “Beautiful packaging helps sell the product” Q31 “People buy with their eyes” “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” “The quality of the products will determine success” “Labels are often passed by, it’s the product that matters” “The item sells regardless of the labelling” Q31

LABELLING APPROACHES CONSIDERED Planners more geared towards outsourcing Q8;Q7

68% of current micro-business 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 Q9; Q40 Q10,Q10B,Q11 have the same base n=30 (put onto same chart) Unprompted – Current Use n=5 I make them myself n=4 Vistaprint n=2 Officeworks n=1 Avery from Officeworks

25% of current micro-business owners said they had ever used an Avery solution to label their products

Product name or description Business contact details Brand/logo Product name or description Business contact details My labels must have… Q14 N=30/Q41 n=91 Intervals from Q leaves certain numbers out – perhaps change to adjacent intervals (e.g., 1-10,11-50)?

Number of labels printed/ pay to have printed per month 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 Q14a N=44 Intervals from Q leaves certain numbers out – perhaps change to adjacent intervals (e.g., 1-10,11-50)?

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 micro-business. Q15;Q42

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 micro-businesses is that half of them did it themselves Q16;Q43

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 micro-business. Q17;Q44

DIY & DIFM Appeal

INTEREST, APPEAL, ADVANTAGES AND DRAWBACKS IN DIY LABEL SOLUTIONS Drawbacks to Using DIY Labelling Interest in DIY Printing Advantages to DIY Labelling Appeal of DIY Printing Q18;Q19;Q21;Q22

INTEREST, APPEAL, ADVANTAGES AND DRAWBACKS IN DIFM OPTION Drawbacks to Using DIY Design but Paying for Printing Interest in DIY Design but Paying for Printing Advantages to DIY Design but Paying for Printing Appeal of DIY Design but Paying for Printing Q23;Q24;Q26;Q27

Other Information

PERCEIVED BARRIERS TO BUSINESS SUCCESS Time, competition and marketing are the biggest barriers current micro-business owners face Q28

PERCEIVED SUCCESS OF BUSINESS: CURRENT MICRO-BUSINESSES Despite these challenges, many micro-businesses are reported being successful. Q29 N = 44

FUTURE GOALS OF CURRENT MICRO-BUSINESS OWNERS 9 out of 10 current micro-business have plans and goals to grow their business Q5S Base n=44

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 Q32

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 Q32

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 Taverner Research 17 February 2016 * All image rights owned by Shutterstock Presented by: Michael Trigwell, Taverner Research Date: 08 February 2011