This pack of new Baco EasyCut cling film found on my latest shopping trip shows how innovation doesn't have to be "big I" innovation: revolutionary, discontinuous iPad-like change.
Growth comes not only from "thinking outside the box"; it also comes from "little i" innovation and thinking inside the box, literally in the case of the Baco brand.
Not the sexiest of posts I know. But an important one nonetheless!
1. There is no such thing as a commodity
You can't get more basic and boring than clingfilm, right? Surely there is nothing you can do with it. Well, Baco show that that is, excuse my French, a load of old bollocks. They've taken this basic category and managed to innovate within it. With Easy Cut you pull out the cling film and then by closing the lid back down, you cut off the piece you want cleanly and easily.
Baco have followed the principle of being "simply better" that I posted on here. They have looked at the product category and how its used, and come up with a way of improving it. My guess is that they have spent some time watching people use clingfilm in home, as they have perfecytly captured the clingfilm frustration we experience in the Taylor family in their brilliant tagline: "Cut out the tearing and swearing in your kitchen".
Core extensions that add real value, like this one, offer a chance to premiumiuse your brand and make more profit, by charging a price premium that more than covers the added cost. It looks to me like Baco have got this half right with Easy Cut.
The dispenser itself costs £4 for 40m of clingfilm, over double the price per m of normal Baco clingfilm. To note, the standard Baco stuff is a measerly 2% more expensive than own label. Hopefully for Baco, the added unit cost of the dispenser is recouped in the price, making it more profitable.
What is surprising is that the EasyCut re-fill is 18% cheaper per m than the standard Back product. I would have expected it to be at least the same price. The box and the clingfilm are the same size, unlike stuff like laundry detergent when a re-fill comes in a smaller, cheaper pack that you expect to pay less for.
In conclusion, Baco Easy Cut is a great example of thinking inside the box to do what marketing is supposed to do: make everyday life a little better.