Packaging

 

1.0 INTRODUCTION

 The demand of some products these days is a function of its packaging. Some products are highly demanded by consumers, not because of their performance, but due to their attractive packages.

Nowadays, consumers want self-service with minimum time wastage. Packaging is one of the marketing tools that marketing executives use to attract, to promote and to protect their products. In this note, we will discuss/examine what packaging is, reasons for packaging, functions of packaging and other features of packaging.

These days, packaging is synonymous with contents/services offered. Hence, millions of naira is spent by marketing executives to produce packages for their products. Some companies’ products fail not because of their products performance, but because the packages are defective. All these and others are examined in this note.

2.0 OBJECTIVES

 On completion of this note, you should be able to:

·         define and explain what packaging is

·         give reasons for packaging

·         explain functions of packaging argue

·         against packaging in our environment.

 3.0 MAIN CONTENT

 3.1 Packaging

Packaging has been variously defined in both technical and marketing literature. One of the most quoted definitions is, packaging is the art, science and technology of preparing goods for transport and sale. Kotler (1997:458) defines packaging as including the activities of designing and producing the container or wrapper for a product.

Stanton (1981) also agrees with this definition when he defines it as “the general group of activities in product planning that involves designing and producing the container or wrapper for a product.” An understanding of the packaging industry is necessary to fully appreciate the packaging revolution that has occurred in the consumer and industrial goods sectors. The packaging industry consists primarily of two distinct segments – firms which manufacture the packaging materials and the marketing research agencies which conduct specialized packaging research, generally for packaging development and adoption.

 Newer materials are constantly emerging in the packaging field and in many cases, which have eliminated or threatened the older materials, such as wood and steel, because of the relative cost advantage or better performance characteristics. The important packaging materials today are: . 

3.2 Reasons for Packaging

There are various reasons for packaging, among these are:

 (1) Packaging is used to protect the contents of the product from spoilage or wastage. Packages ensure that consumers receive the products in good condition and then derive the best benefit from them. This protective package is referred to as the primary package.

(2) Packages can also be used as a form of promotion. The primary package can be so designed as to attract customers to the product. Some of the packages can be used after the main content has been used up. Designs, sites and colors of packages can also be employed as means of promoting the product at their points of sale.

(3) Packaging may implement a company’s marketing programme. Packaging helps to identify a product and thus may prevent substitution of competitive goods. A package may be the only significant way in which a firm can differentiate its product. In the case of convenience goods or industrial operating supplies, for example, most buyers feel that one well known brand is about as good as another. Retailers recognize that effective protection and promotion features in a package can cut their costs and increase sales.

(4) Management may package its product in such a way as to increase profit possibilities. A package may be so attractive that customers will pay more attention to get the special package even though the increase in price exceeds the additional cost of the package. Also, an increase in ease of handling or a reduction in damage losses will cut marketing costs, again increasing profit.

3.3 Functions of Packaging

Packaging provides the following functions:

(1) Protection: This is the one which is the oldest and most basic. The primary function is to protect the products from environmental and physical hazards to which the product can be exposed, in transit from the manufacturer’s plant to the retailer’s shelves and while on display on the shelves. The specific types of hazards against which protection has to be sought would obviously vary from product to product. It is however possible to identify the principal hazards which are almost universal. These are:

(a)Breakage/damage due to rough mechanical or manual handling during transportation.

(b) Extremes of climatic conditions which can lead to melting, freezing, etc.

(c)Contamination either bacterial or non-bacterial, such as by dirt or chemical elements.

(d) Absorption of moisture or odours of foreign elements.

(e)Loss of liquid or vapour.

(2) Appeal: The package is increasingly being used as a marketing tool, especially in certain types of consumer products such as perfumes or several other gift articles. The importance is also substantially due to the changed structure of retail business, especially the emergence of self-service stores.

In the case of consumer products, the package serves as a silent salesman. This is true irrespective of whether the product is a luxury, semi-luxury or an ordinary everyday use product. The following characteristics have been identified to help a package perform the self-selling tasks:

(a)The package must attract attention.

(b) The package must tell the product industry.

(c) The package must build confidence.

(d) The package must look clean and hygienic.

(e)The package must be convenient to handle.

(f)The package must reflect good value.

Packaging, however, is of greater importance in the case of certain specific types of articles. Industry-wide studies in several countries showed that packaging costs in the cosmetics industry far outrun those of other industries. This excessively high incidence is not due to the packaging which is required for the protective function, but for making the product attractive, a status symbol and ego-satisfying. Other products, such as chocolates in gift packs also are instances where packaging performs a basic marketing function by making the products more appealing.

Consumer research on packaging has basically concentrated on two aspects which are presumed to have an influence on consumer purchase decisions. The first one is color and the second is the package or container design.

Almost all researchers have come to the conclusion that each color has its own distinct characteristics and, therefore, has to be used in the package so that there is no mismatch between what is expected of the package and the color used in the packaging. One additional problem in this area is that nationals in different countries display divergent color preferences, due to their diverse socio-cultural-religious backgrounds.

Similarly, research has been carried out on the desirable properties of a container. Slender, cute containers are often used for beauty-care products for the feminine sex, as these are expected to create an appropriate image of the product.  Graphics and logo-types are also important in designing and conveying the total product image. There are several accepted promotional packaging techniques. Some of these are:

Money-off Pack: A ‘flush’ in distinctive color is superimposed on the package, announcing the specific price discount being offered. This is the most widely used form.

Coupon-pack: A coupon, either as a part of the package or placed separately in the package, of a certain value can be redeemed after the purchase of the product.

Pack-in-premium: A premium, i.e. the gift, is packed within the original product, e.g. a handkerchief. Premium-package: A specially made package having either a re-use or prestige value. Instant coffee packed in drinking glasses having closures is an example of the first type. The set of audio cassettes of Tagore songs released by the gramophone company of India in 1986 which was presented in a specially designed wooden box is an example of the second type.

Performance: This is the third function of a package. It must be able to perform the task for which it is designed. This aspect becomes crucial in certain types of packaging. For example, an aerosol spray is not only a package but also an engineering device. If the package does not function, the product itself becomes totally useless.

Convenience: The package must be designed in a way which is convenient to use. The important point to be appreciated however is that it should be convenient, not only to the end-users, but also to the distribution channel members, such as wholesalers and retailers. From their standpoint, the convenience will relate to handling and stocking of packages. The specific attributes they would seek in a package in this context are:

The package must be convenient to stock.

·         The package must be convenient to display.

·         The package does not waste shelf-space.

·         The package retains its looks during the shelf-life.

·         The master packages/cartons are easy to dispose of.

 Because of the increasing concern with solid-waste disposal, the last factor has assumed importance in developed countries. However, from the standpoint of domestic or institutional end-users, convenience would refer to the use of the package, such as opening and closure of the package, the repetitive use value, disposability, etc.

Cost Effectiveness: The package finally must be cost-effective. Packaging cost as a percentage of product cost varies dramatically from one industry to another. It is important to appreciate that while analyzing packaging costs, it is not enough to consider only the cost of package. This is only one, though the most important, element of the total costs associated with packaging. Cost in this chain consists of: Package costs incurred in inward delivery to the factory when the product is purchased from outside. Storage and handling costs of the empty packages. Storage costs of the filled packages. Transport cost for distributing filled packages. Insurance cost for the transit period, etc. 

3.2 The Growth of Packaging Usage

There are several factors responsible for the growth of packaging usage globally. Among them are:

(1) Self-service: An increasing number of products are sold on a self-service basis in supermarkets and discount houses. Kotler (1997) reported that in an average supermarket, which stocks 15,000 items, the typical shopper passes by some 300 items per minute. Given that 53% of all purchases are made on impulse, the effective package operates as a five-second commercial. The package must perform many of the sales tasks. It must attract attention, describe the product’s features, create consumer confidence, and make a favorable overall impression.

(2) Consumer Affluence: Rising consumer affluence means consumers are willing to pay a little more for the convenience, appearance, dependability and prestige of better packages.

 (3) Company and Brand Image: Companies are recognizing the power of well-designed packages to contribute to instant recognition of the company or brand. The Campbell Soap Company estimates that the average shopper sees its familiar red and white can 76 times a year, creating the equivalent of US$26 million worth of advertising.

(4) Innovation Opportunity: Innovative packaging can bring large benefits to consumers and profits to producers. For example, toothpaste pump dispensers have captured 12% of the toothpaste market because, for many consumers, they are more convenient and less messy.

 3.3 Legal Dimensions of Packaging

While managing the packaging function, constant attention needs to be given to the various regulations that the government has laid down in this respect. Government regulations are many and encompass areas such as the use of specific packaging materials for certain products, consumer protection, transportation of hazardous cargo, etc.

The most pervasive among these is the regulation relating to the information a manufacturer is obliged to provide in the package on the product itself. This is commonly known as labelling requirement and covers a host of commodities. Principal among these are food products, cosmetics and pharmaceuticals.

Statutory requirements relate generally to:

(a)Net weight, when packed.

(b) Date of manufacture.

(c) Date of expiry.

(d) Maximum retail price including or excluding local taxes.

(e)Directions for use, including dosage requirements.

(f)Directions for storage.

 3.4 Criticisms of Packaging

Packaging is in the socio-economic forefront today because of its relationship to environmental pollution issues. Perhaps, the biggest challenge facing packagers is how to dispose of used containers, which are a major contributor to the solid-waste disposal problem. However, consumers’ desire for convenience conflicts with their desire for a clean environment.

Other socio-economic criticisms of packaging are:

·         Packaging depletes our natural resources. This criticism is offset, to some extent, as packagers increasingly make use of recycled materials. 

·         Packaging is excessively expensive – cosmetic packaging is often cited as an example here. But even in seemingly simple packaging, beer, for example, half the production cost goes for the container. On the other hand, effective packaging reduces transportation costs and losses from product spoilage.

·         Health hazards occur from some forms of plastic packaging and some aerosol cans although government regulations have banned the use of several of these suspect packaging materials. 

4.0 CONCLUSION

Packaging is becoming increasingly important as sellers recognize the environmental pollution issues, as well as the marketing  Opportunities involved in packaging. Packaging is another crucial aspect of marketing which plays an important role in determining the success of a product. Marketing decisions such as those related to pricing and distribution are not so obviously critical from the customers’ viewpoint, simply because they is not so aware of them, but the implications of your packaging decision are obvious since the customer confronts it face-to-face. There are so many instances of good products having failed because of poor packaging. A good packaging must protect the contents stored inside it, be attractive to the customer, be convenient to handle, store and use and perform the functions required of it. The Nigerian market is today flooded with exciting new types of packaging materials which have replaced the traditional packages. These new packaging materials have made it possible to market products such as water, beer, foods, and snacks.  

5.0 SUMMARY

In this note, we discussed packaging, the functions, rationale for packaging, etc. as a marketing tool that marketing executives use to increase sales and profits.  

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