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Investing in Innovation During Economic Downturn is Important Factor in Securing Growth

Posted on: Tuesday, 9 June 2009, 09:00 CDT

WOODLAND HILLS, Calif., June 9 /PRNewswire/ -- Silgan Containers' commitment to research has uncovered that investing in innovation and marketing during an economic downturn is an important factor in securing current and future growth.

A recent Frost & Sullivan survey finds that the primary factors shaping innovation and product development strategy are the global economic downturn (33% of survey respondents) and the increasing need for innovation (48%).

The survey sought to better understand the key challenges facing innovation and product development executives in North America in 2009.

Respondents identified that two of the most pressing challenges facing their job are generating and maintaining a pipeline of commercially viable innovations (21%) and identifying and developing breakthrough innovation ideas (13%).

Buy-ology, published last fall, points out that brands investing in marketing during a recession tend to gain market share, even when the recession ends. Written by Martin Lindstrom, the book is based on a three-year study of thousands of volunteers using the latest brain scanning technology to determine consumer reaction.

In an analysis of the 1990-1991 recession, Penton Research Service, Coopers and Lybrand, in conjunction with Business Science International, found that better performing businesses focused on a strong marketing program enabling them to solidify their customer base, take business away from less aggressive competitors and position themselves for future growth during the recovery.

"The data shows that food manufacturers can drive growth by continuing innovation efforts," said Carolyn Takata, director of marketing, Silgan Containers.

As the leading U.S. manufacturer of food cans, Silgan Containers continues to support brand owners by partnering to develop value-added metal packaging innovations.

Via its Sculptured Metal(SM) technology, Silgan Containers is offering food manufacturers a way to capitalize on product messaging. Shaped metal cans create memorable and recognizable branding. Innovative, shapely designs support brand positioning and brand strengths, and can be coupled with a complimentary color to contemporize metal packaging and the products they contain.

Technologies have evolved in recent years which have enabled shaped can production efficiencies and quality -- in both aluminum and steel -- to compare favorably with traditional containers. Both premium-niche and high-volume shaped cans continue to enter the global marketplace monthly. In many cases, these launches are achieving sales increases through product differentiation and enhanced functionality.

Additionally, two quantitative research studies from Ipsos have shown that end type can affect a brand's share and that it is often one of the top considerations in a purchase decision. Silgan's line of Quick Top(R) easy-opening convenience ends help meet that objective.

"We are continuously working on improving the function, convenience, utility and differentiation of metal cans. Pushing the innovation envelope helps to add value to our customers' product," Takata concludes.

Silgan Containers, a subsidiary of Silgan Holdings, is the largest manufacturer of metal food containers in North America, with approximately half of the U.S. unit volume in 2008 and net sales of $1.79 billion. Silgan's partnership approach, supported by quality, service, technology, low-cost producer position, strategically-located geographic locations and extensive consumer research, is the cornerstone of its strong customer relationships.

Silgan Containers manufactures and sells steel and aluminum containers and ends that are used primarily by processors and packagers for food products, such as soup, vegetables, fruit, meat, tomato based products, coffee, seafood, adult nutritional drinks, pet food and other miscellaneous food products. For more info visit: www.silgancontainers.com.

Media Contacts: Sophia Dilberakis SD Communications (312) 787-5800 sophiad@att.net

SOURCE Silgan Containers

Source: PR Newswire

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