Automotive Chemical Company Taps into Flat Market with Barex Bottle
Gold Eagle Co., a leading automotive chemical company that produces more than 100 automotive products, is utilizing new packaging to seize what it considers a golden opportunity.
With the introduction of its premium line of vehicle sealers in sleek, vibrant new bottles, the Chicago-based manufacturer has taken advantage of the chemical resistance and design flexibility of Barex barrier resin from BP Amoco to create innovative packaging that withstands the oil-based new product inside.
According to the Car Care Council (Port Clinton, Ohio), more than 50 million gallons of vehicle fluids leak into the U.S. environment each year, yet less than 10% of U.S. car owners use sealers to stop leaks. Gold Eagle's new No-Leak brand of sealers is aimed at the country's aging stock of automobiles, where the company sees an opportunity to grow this traditionally small, flat product category through eye-catching packaging.
Since the release of the product in January, the strategy seems to be working. "Almost every retailer we've presented the No-Leak line to has ordered it. That includes several we've never been able to sell to before," says Marc Blackman, Gold Eagle's vice president of sales and marketing.
Opening consumers' eyes
Gold Eagle's products, which are free of harmful aromatics, safely stop leaks and can eliminate the need for costly repairs. However, the company says that only a limited number of consumers are aware of sealers as a way to stop a car from leaking fluid.
To help consumers learn about the benefits of its safe, premium sealers, Gold Eagle worked with Chicago design firm Source Inc. to create a package with a strong point-of-sale presence. The high gloss and colorability of Barex resins played a major role in generating an appealing package.
In addition to offering excellent clarity in a bottle, Barex resins also excel at creating gloss and holding intense color, says Carmen Melillo, BP Amoco's director of sales and marketing for Barex resins. "Gold Eagle really leveraged those strengths," says Melillo.
The No-Leak line of four sealers — which includes engine, transmission, power steering and cooling system — comes with color-coded bottles and labels to help the consumer identify the source of the leak and choose the right product. Other than color differences, the Barex bottles all have the same overall look, along with an easy-grip, easy-pour shape.
"We want to help retailers increase awareness of sealers by stocking the four No-Leak products together," says Blackman. "Tucked away among other engine products or cooling system products, a sealer doesn't make much of a statement. As a group, our brightly colored, glossy bottles certainly do."
Finding right resin
To create the premium No-Leak line, Gold Eagle created a formulation with a high concentration of proprietary ingredients. "We faced a hurdle in finding a plastic resin to meet marketing's design criteria and to contain our high-strength product," says Michael Profetto, Gold Eagle's technical director.
Tests with other resins failed. In one test, the product bled through the bottle and attacked the label's adhesive. In another, the bottle itself was destroyed. Barex resin passed the company's rigid compatibility tests, easily containing the product through 90 days at 130°F.
Although Barex resins can be processed on the same equipment used to fabricate most other plastics, the manufacturing of this intricate bottle was inconsistent with the rest of Gold Eagle's high-density polyethylene (HDPE) blow-molding operation. The company sought BP Amoco's help in finding an outside converter with experience using its Barex resins.
"We had a very tight deadline for producing the bottles and wanted to be sure we found a company with the technology, experience, quality and commitment to our timetable," says Jim Licquia, purchasing agent for Gold Eagle.
Fabricating challenges
Gold Eagle selected Silgan Plastics (Port Clinton, Ohio) to produce the bottle. Its design poses fabricating challenges, with its large offset neck and sharp angles. Using the same equipment as it uses to run polyvinyl chloride (PVC), Silgan was able to produce the bottles in tests.
"The formability of Barex resins makes it possible to create bottles with unusual, finely detailed designs," says Melillo. "At the same time, it's possible to have thinner walls because of the stiffness and high density of Barex resins."
Gold Eagle first came up with the idea for a premium line of sealers in May 1999. Recognizing the opportunity, the company followed a compressed timeline to formulate, package and deliver the product to market as quickly as possible. Less than 10 months later, by the third week of January, the company began shipping its No-Leak line.
Gold Eagle reports that in the few months the product has been available, the acceptance among buyers and the start of reorders suggest that the product will be a success.
The company acknowledges that the package design produced a higher cost package than for its other automotive fluids, but the premium nature of the product allows retailers to charge a premium price, garnering two to three times the margin they do for lower cost products.
For more information:
BP Amoco, Tel: 630-961-7762.
Silgan Plastics, Tel: 419-635-2144
Source Inc., Tel: 312-236-7620
Edited by Bill Noone