Product Packaging - Product Planning and Market Strategies, Marketing Management | Marketing Management - B Com PDF Download

Product Packaging:
Packaging is the other side of the product identification. Traditionally, the function of packaging was to protect goods. However, it is a promotional tool and the major image builder contributing to the product success. It is a point of sale display that develops a favourable consumer appeal.

‘Packing’ is a process that speaks of company’s ability to contain economically man made or natural products for shipment, storage, sale or final use. It comprises the activities of wrapping or creating the product for performing the marketing functions more easily and economically.

In simple words, packing is the act of housing the product in the packages or containers like tins, cans, bags, jars, bottles, boxes, kegs, casks, and the like. A ‘package’ is a wrapper or a container in which a product is enclosed, encased, housed or sealed.

‘Packaging’ on the other hand, deals with activities of planning and designing of different means of packing the products. What are clothes to human-beings, so are the packages for the products.

Definitions:
“Packaging is the general group of activities in designing the containers or wrappers for the products”. Professor William Stanton

“Package design is the unique combination of colours, graphics and symbols to distinguishing the products.” John Bull

“Packaging is an activity which is concerned with the protection, economy, convenience and promotional considerations”. Professor Philip

Thus, it embraces the functions of package selection, manufacture, filling and handling. It is worth noting, here, that the word ‘packing’ is more comprehensive and, hence, covers ‘packaging’. Packing is concerned with product protection while packaging with product promotion.

Objectives of Packaging:
Packaging is a market and marketing necessity, at-least five objectives can be identified so far as product packaging is concerned. These are product protection, product identification, product convenience, product profit generation and product promotion.

These points can be outlined as given below:

1. Product protection:
The primary objective of packaging is protection of products or contents. It is the package that keeps the contents fresh, clean and un-spoilt by using moisture proof, vermin-proof and damage resistant materials.

It is powerful weapon to avoid shop-lifting, stealing in shops. This protection is given to the products from their birth till their death. Thus, product is protected against the possible theft, pilferage, leakage, spilling, breakage, contamination, deterioration, evaporation and so on.

2. Product identification:
The products available in a shop on shelves must be distinguishable for easy identification. One brand is to be compared and distinguished from another. Next to brand names, packaging is another easy and convenient method to identify the products of different producers or marketers.

It is obvious that the packaging of one product is very much different from another. Thus, it becomes a means of easy identification. The size, the colour combinations, the graphics used in each package are unique that can be easily remembered and recalled.

3. Product convenience:
A packaging aims at providing maximum convenience to the purchasers, producers and distributors alike. A nicely designed product package facilitates product shipping, storage, stocking, handling and display on the part of producers and distributors. It is caused by product density.

Good packaging facilitates the ease of product use by consumers. The best examples of this kind are: tear-tape, poring spouts, squeeze bottles, aerosol cans, flip-tops pull- tubes, wrappers and the like. They increase consumer convenience to a great extent.

4. Product promotion:
Product package is a powerful promotional tool. Packaging performs good many advertising functions.

At-least four are emphasized:

(a) Self advertising package design has supreme significance as it attracts consumers.
(b) Point of purchase display when we talk of display the two possibilities are ‘window’ and ‘counter’ where the first does the work of attracting the consumers or prospects to ‘get in’ and the second one gives the comparison of ‘competitive products’ for consumer choice.
(c) Media of advertising the general appearance and the selling features created by the packaging techniques decide the product success and
(d) Product publicity free advertising is done through package-insert or flap advertising.

5. Product profit generation:
Adequate and proper packaging can be the cause for generating increased profits to the producers and distributors. Because of product density created by good packaging, it reduces costs in storage, transportation and handling.

Further, the wastes that are common in marketing process can be minimized, if not eradicated. Further, sound packaging is an effective tool of sale-promotion. All these factors are bound to contribute towards profit maximization with reduced costs and improved efficiency.

Role/Functions of Packaging:
In modern dynamic and competitive marketing conditions, the role of packaging cannot be underestimated. It has become a highly specialized activity building the fortunes of producers, extending the stay of middlemen and expanding the convenience to the consumers. The role of packaging is self evident from the specific functions it performs.

The functions of good packaging are summed up as under:

1. It protects the contents:
The basic function of packaging from the time is to protect the contents of it from damage, dust, dirt, leakage, pilferage, evaporation, watering, and contamination and so on. The intrinsic values or the properties or the quality standards are maintained intact. Thus, the contents are kept fresh, clean, un-spoilt and unaffected.

Seasonal fluctuations in demand may be smoothened out through packaging. The canning and deep freezing of some perishable products like straw berries, orange juice, and mango pulp enable all the year round consumption on the part of consumers.

2. It provides product density:
It is packaging that increases the product density. Product density implies selecting such package materials, design and shape that it helps to use the limited space in the best way. Product density improves relations with common carriers, permits better use of space in storage and usage and increases the grace and poise of arrangement.

3. It acts as promotional tool:
Good packaging can sell more easily and quickly as it works as a promotional tool. It is a ‘silent’ salesman. As a promotional tool, it does self advertising, displaying, publishing and acts as an advertising medium.

Attractive package enhances the opportunity of impulse buying. It is the package, size, design, colour combinations and graphics that decide its ability to attract the valuable attention of customers or the prospects.

4. It provides user convenience:
Convenience in storage, transportation, handling and usage the product is another requirement. Good packaging does this in greater degree. As a result the marketing functions of the transportation, storage and handling are performed with ease and without wastage.

Consumers are greatly assisted so long as the product is in usage. In fact, neat packaging has brought home reduction in inventory costs, packing costs, space and time costs.

5. It facilitates product identification:
Product differentiation is the hall-mark of these days of keen competition. This process of product differentiation is furthered by effective product identifiers; one is branding and another is packaging.

The product package identifies the product no matter where you see it, under what circumstances you see it, or when you see it.

A package is product’s personality, its reality. Product identification goes easy with distinguished packaging as it adds to its personality or image. Consumers’ confusion over the large variety need not confound them and mislead them in consumer decision making because, they go by distinctive product packaging.

6. It allows easy product-mix:
Product-mix relates to the product-lines and assortment of sizes, colours, measures, grades, and package types etc., offered by the selling house. Changes in product-mix can be possible as packaging is to influence weight, size and dimensions of the products.

Such a selected sales or product-mix will facilitate product pricing, shipping, storage, stocking, handling, display and so on, in diversified market segments.

7. It extends product life-cycle:
The package of a product may be used in an effort to extend the product life- cycle. Updating design may help to give the pack a more contemporary image.

It is increasingly difficult to come up with totally new products, but any variety of packaging innovation can be introduced which offers features of a consumer wants and willingness to pay for a form of product innovation. This can be achieved through improved convenience to not only consumers but also to wholesalers and retailers by which packages are easy to stock, price, mark, display and identify.

Essentials of Good Packaging:
The objectives and functions of packaging have clearly demonstrated the importance of packaging in modern marketing setting. To get all these benefits, the packaging must be certainly attractive, protective, economical, convenient and adjustable. Experts opine that the following points to be fulfilled by a packaging to be called as ‘good’ packaging.

Therefore, the requisites of good packaging are:

1. It should protect the contents:
By very nature, every packaging is designed to protect the contents of it against the natural and artificial factors of damage such as dust, dirt, watering, evaporation, contamination, shrinkage, thickening, leakage, spilling, pilferage, theft, fire, flood and so on.

The intrinsic values or qualities of the products are to be maintained intact. A good packaging is the means for preservation of products from possible damage or loss in value.

2. It should be attractive:
Protecting, of course, is the primary aim and function of packaging. However, it should be capable of catching the attention of on lookers or those who come in contact with it. It is an attention getter. It stands out of others.

Package design, weight, material, colour combinations, graphics, texture, topography, illustrations etc. are to be pleasing to eyes and appealing to brain.

A well designed package can make a product more alluring. Cosmetics, gourmet foods, jewellery are packed in costly packages that are finely designed of matching material. There are many customers who buy more because, they are magnate by packaging than the contents. Package attraction is so important that it generates impulse buying.

3. It should bestow convenience:
The package so designed should grant highest degree of convenience to manufacturers, distributors and consumer alike. Good packaging increases product sanitation, ease in handling, transporting, storing, and using the packages.

Today producers are giving much importance to product use facilities. Thus, tear-tape, pouring spouts, squeeze bottles, aerosol cans, flip-tops, pull-tubes has come.

Consumers are seeking packages that are easy to handle, open and close or reusable. Thus, no one likes to buy ice-cream boxes that leak or a sardine canned tins that are hard to open or cereal boxes that are hard to pour. Consumer convenience is of top importance as today’s marketing is consumer directed and oriented.

4. It should guarantee economy:
The points of protection, attraction and convenience need not be sacrificed for the economy. Economy is something that reduces not only packing and packaging expenses but also brings down other allied expenses such as transport, warehousing, tax-levies, handling.

It also has economy as good packaging wages war against the packets of wastages in the area of wrapping or catering. Cost reductions are possible through an alternative packaging form. For example, plastic pots as against glass pots for cosmetics.

The application of multi-packaging to low profit margin mass consumption food products allows more worthwhile price reduction than when one pack is sold on its own. This is of particular interest in case of premium offers. New packaging can extend the product life and reduce distribution costs. Plastic-fill bag instead of glassy bag paper bag extends life by weeks than days.

5. It should assure adjustability:
A good packaging has the ability of flexibility or is capable of being put to alternative uses. That is packing should be possible with different types of materials. Thus, plastic, metal or glass containers can be used to pack liquids, solids, pastes; granules while paper containers only solids.

It is not to undermine here paper packaging materials. If plastic, metal and glass have wider adjustability, paper packagings are known for cheapness and lightness. As far as possible, the packaging should be made to house different types of products.

6. It should be pollution free:
It is well known fact all over the world that packaging has environmental problem particularly the discarded packaging. That is why; there is trend towards recycling of packaging materials to do away with garbage.

In addition, research is continually carried out to develop new packaging materials that are bio-degradable or that minimize pollution problems. Consumable or reusable packages have been developed. Again, new materials of packaging are searched out in the light of shortages of conventional sources.

7. It should be informative:
Provision of adequate product information is another requirement. It provides information on package contents and facilitates handling for both the consumer and those associated with distribution.

It must identify the amount of product in the package, the content’s brand name and other relevant information for the consumer. Detailed labeling on packaging is a must. This information need not be in verbose form.

It can be a combination of illustration of product, specifications, features uses, instructions to handle, prices and such other details, including legal requirements. It occasionally bears news contests, sweep-takes, prizes and premier. Information supplied on package is a sales message that is essential to establish trade relations.

Types of Packages:
When one speaks of types of packaging, there can be three types namely primary, secondary and shipping. Let us know about each type.

Primary Packaging:
Primary packaging is basically done for protecting the quality of the product and protection against possible effects caused by exposure. Much depends on the type of product its form namely, Solid or liquid, solids are packed in polyethylene paper bags, hard boards, bottles both glass and plastic.

The basic idea is to protect or preserve the basic ingredients. Say, a shampoo can be packed in sachets, pouches, plastic bottles, so in the case with other liquids. Tetra-packing is done in case of soft-drinks, juice, and oil and so on.

Secondary Packaging:
Secondary packaging serves for providing quantitative convenience of the buyers and sellers. Thus Shampoo Sachets may be in straps of 10, 20, 30, 40, and 50 and so on. The bottles may be 10, or 12, or 144 units put to together. This is done for additional protection plus meeting the consumer’s dealers, convenient for exchange purpose. It also helps in storage.

Shipping Packaging:
Shipping packaging is the final packaging mainly for transportation and stocking purposes on wholesale basis. Thus, fruit juice boxes (tetra pack) may be put in cartons of 50, 100, and 200 and so on.

The care is taken to see that it helps in convenient handling of cartons in transportation and warehousing while loading and unloading to cause least damages. Here, the materials used are rugged and providing cushion in handling, storing and transportation.

The materials used for primary, secondary and shipment packages differ very much. A continuous research is going on to do away with conventional materials.

Packing Decisions:
Packaging decisions imply the series of decisions to be made to design the desired and acceptable kind of product package design for the firm. Therefore, the basic packaging strategy provides a foundation for tactical decisions.

The packaging strategy is to complement the overall product and marketing strategy. Packing is very important element of the marketing mix and its role in strategy should be defined very clearly.

Normally, following are the logical steps involved in developing a specific container design:

1. Come together:
As so many areas of the organisation are involved in the packaging decisions, all those people representing these areas should come together in the form of a committee. From within, marketing, physical distribution, manufacturing, research and development, purchasing, personnel and legal personnel and from outside the firm-advertising agencies, distributors, specialized engineers may be invited. This group should be coordinated and strongly endorsed by the top management.

2. Conduct packaging research:
Both formal and informal marketing research is needed to know the exact position of product, brand and package among the competitive offerings. Similarly, advertising and image related research may be carried out as many as package usage tests. Various tests may be conducted as engineering, visual, dealer and consumer.

3. Develop graphics and copy:
Package colour, illustrations and copy wordings must be developed in the back-ground of package sizes, design and cost. These should be consistent with overall image of the firm that desires.

4. Develop physical package:
The physical design stands for the actual design that includes shape, size, materials, colour, construction, closer and illustration. These factors make package a good silent salesman. The physical design must be functional yet reflect the product and company image desired like graphics. These package designs can be patented or trade-marked like brands. Now the container looks like meeting the needs of consumers and distributors.

In designing a new product package or redesigning the existing one, the manufacturers are to take into account the following factors:

(a) Nature of product:
The type of container to be used depends on the form and ingredients of the product. Transparent containers are most suited for attractive colour and appearance; vacuum-sealed containers for volatile ingredients; glass containers to minimize chemical reactions otherwise possible in plastic and metal packages.

(b) Costs:
The cost of packaging must be absorbed by production economies, increased sales volume or a higher price. The packaging material, label, closure as well as costs of filling, handling, distribution and breakage of package are important.

(c) Family resemblance:
If the product is one of a number of related items, it is but desirable to design the package to conform to the containers of other products in the line to assist consumer and dealer identification.

(d) Advertising value:
Unique shape, attractive design or a novel closure gives a package greater sales and advertising value. In order to get maximum advertising and display value, a package should have distinctive design and unique features.

(e) Legal requirements:
The packages must conform to the laws prohibiting the deception of consumers by the use of false bottoms, slack-fill, and other means of giving the impression that a package contains a larger quantity than the case. There are legal requirements prescribing the copy appearing on the labels of food, drug and cosmetic packages.

5. Test the design in the market:
Though package testing is part of an overall product concept test or test-marketing, special package tests must be conducted in the markets. The best way is to rely on indirect replies got through dealer’s feed- back.

The tests conducted with customers must be indirect and subtle to get more authentic reactions. Either indirect psychological tests or stores test through marketing tests (research) should yield good results.

6. Do environmental checking:
The packaging development decisions may be dictated by environmental factors such as legal forces, ecological forces and social forces. Thus, issues like consumer packaging safety, disposable packaging, and the quantity of packaging, littering, and misleading labeling and so on. This step would save the skin of the firm.

Packing Strategies:

At or a given moment of time, a company has alternative packaging policies or strategies, once it develops an agreeable packaging concept and packaging proper is going to take these alternative shapes as discussed below:

1. Family packaging strategy:
It is a packaging option in which packages of the entire product-line closely resemble one another. To put in other words, it is a kind of strategy where the major features of the packages in respect of the entire product-line look alike.

For instance, Camlin stationery products and packages have the black tiny camel on items be it an ink bottle, a compass, a gum bottle, colours. The major plus point of this strategy is that any new product in identical package enjoys the same market reputation and acceptance as the others.

This also reduces the packaging costs because of bulk-buying of materials, printing, sizes and shapes. However, such a policy has the minus point in that if the old product is a failure, the new product is more likely to fail because of same product package or the resemblance.

The distributors have a false psychological feeling that they are overstocking a particular brand or package of producer. It also affects the consumer psychology that the dealers do not stock varieties as same packages over-shadow the other packages.

2. Multiple packaging Strategy:
It is a kind of strategy wherein number of closely related but heterogeneous products used by one consumer is placed in a single package. Such a package conveys the idea of an ideal matching set that one should possess. Thus, in case of men, shirt, pant, neck­tie, kerchief, cuff-links, tie-pins, may be packed together.

In case of ladies, it may be a skirt and a top, hanky, bra and panties, a belt might be packed in one package. It may be an assorted scent collection package for men and women separately. Such a strategy is followed in India by a few companies such as Zodiac and Park Avenue.

It facilitates acceptance of a new product idea by a consumer who may normally not like to venture into buying it. This policy is a success when the items in the package are in different stages of life-cycle.

However, there is a danger of whole package being rejected through a consumer is very interested in one or two items. For instance, in case of Zodiac Company, one might like say, tie and kerchief but not other products. As he is to buy all, he will even run away from tie and kerchief.

3. Reuse packaging strategy:
Reuse packaging strategy is one wherein the manufacturers offer their products in such packages which can be reused after the consumption of the contents of it. ‘Maltova’ food-drink was offered in a glass jar which might be used as a tumbler. Amul butter and shrikand are presented in plastic jars which are reusable. Nescafe instant coffee jars can be used as lemon-set.

Similarly, assorted biscuits, sweets and coffees are presented in attractive tin-tops which are reusable as embroidery sets by house-wives. Reuse packaging stimulates repeat purchases as it offers the added benefit for the same price.

In order to continue this consumer interest, the reusable packaging should be changed in shapes, sizes, designs, colours and the like.

4. Ecological packing policy:
Use of the resources of the environment results in pollution problems. It is the social responsibility of every business house to reduce the extent of pollution of any kind in any form.

Today’s greatest concern of the society has been the pollution created by discarded packaging. It is throw away containers that have created problems. To preserve the physical environment, a company is sure to design a matching packing strategy.

The purposes of such a strategy may be returnable’ bottles and containers, use of containers that decompose over a reasonable period of time, use of light weight packaging material and arranging of packaging material and recycling it.

That is why; many manufacturers are now packaging their products in reusable containers as a means of recycling the packaging materials. Further, research is continually carried out to develop new packaging materials that are bio-degradable or that minimize pollution problems.