Packaging is crucial for a product as it is the integral part of the product itself. Most products bought by consumers are packaged.
In fact, packaging is so important in marketing the product that it is one of the 8Ps of Marketing Mix. The reason why packaging is a part of the extended Marketing Mix is due to its varied functions.
What is packaging?
Packaging refers to the ways in which a product is presented to the consumer.
It is usually the physical container or wrapping for a single product or its content. For example, most jewelers offer a special wrapping service while electronic devices are sold in a box.
Task 1: Your company called BabyBaby Ltd. looks for a new design for the packaging of the milk they produce. The milk is for babies and there are a few proposals for the new design. You need to choose both the shape and the color of the new package.
Packaging is also used for promotion and selling appeal. The design and materials used to package products may influence customers’ buying decisions. Simply speaking, packaging sends the message to consumers.
Ugly designed products with poor quality packaging may negatively influence customers so they think that the product inside is not very good. Beautifully designed products with high quality imaginative packaging may positively influence customers so they think that the product include is very good.
Therefore, packaging has three basic functions to:
- Protect the product.
- Inform about the product.
- Promote the product.
Main functions of packaging
The following functions of packaging are both for the business and customers. Packaging can perform the following roles:
- Protect and contain the product. Packaging helps to carry the product and protects it against damage during transportation and distribution. Packaging also preserves the product in the warehouse or on the shelf. Also, boxes can be stacked on top of each other not only to make distribution safer and faster, but also save space. Overall, packaging makes the distribution of products easier.
- Provide information about the product. Depending on the product, information for consumers might include details about contents ingredients, nutrition, cooking instructions, weight and function, assembly instructions, contact information, and so on. Labeling can be used to provide legal information (health warnings on cigarette packs), nutritional information (about calories on packaged food products) and promotional information (competitions on breakfast cereal boxes).
- Promote the brand or the business. Packaging supports the image of the product that is why businesses should highlight both the logo and brand name on the packaging. A brand can be visually recognized from packaging. Customers perceive quality packaging with a quality product that is why packaging t has a profound impact on customer perceptions of a product or brand.
Example 1: Toys 'R' Us uses its own branded wrapping paper. Coffee shops such as Starbucks use disposable cups advertising their brand name. GAP uses shopping bags to incorporate the name of the business.
- Encourage impulse buying. Packaging can be used to unplanned purchases as it can facilitate quick recognition of the product through packaging, logo, color and shape. The unique appearance of the product packaging can be crucial gaining a customer’s attention and developing interest. Goods sold in supermarkets often have eye-catching packaging to entice customers to buy the product. Thus, packaging helps customers to quickly recognize the product among other products.
- Act as a form of product differentiation. Firms want people walking into a store to notice the packaging from a distance as something that stands out on the shelf. So, shape, color, graphic, etc. all ‘appeal to the eye’ as consumers relate to some colors better than others and shape can be a major influence in purchasing decisions. Having different packaging for a product can boost sales. However, customers can become ‘tired’ of non-standard packaging. Some companies can add value through free gift-wrapping services offered by retailers during holidays to sway customers away from competitors who do not offer such a service.
Example 2: Many of us recognize products by their packaging such as Kellogg's Corn Flakes. What surrounds a product is a space where the firm can promote all the little things that make the product different from competitors.
In principle, packaging of a product should perform most of the aforementioned functions.
Additional functions of packaging
Other purposes of packaging which are also important in helping to market and sell the product include:
- Provide additional utility. Some packaging might be reused once the product has been used up, e.g. glass bottles can be used as flower vases and jars can be used as storage containers. Also, packages made of paper, glass or wood can be recycled and used again in the future.
- Preserve product quality. Packaging can keep the content of the product fresh once the packaging has been opened, e.g. keeping the freshness of coffee beans, tea leaves or breakfast cereals.
How to decide on suitable packaging?
These are the factors that need to be considered when deciding on appropriate packaging for a product:
- Weight and shape: These can affect cost of distribution.
- Protection: Against light, heat and dust.
- Convenience: Easy to handle during transportation and movement.
- Design: Eye-catching and distinguishable.
- Information: About ingredients, how to use, etc.
- Environmental factors: Use ecofriendly materials.
Advantages of packaging
The quality of materials, design and colors used in packaging of products has a very supportive role to play in the promotion of a product. Distinctive packaging can help the firm to form the basis of a promotional theme which will affect people’s moods by things such as color, texture and appearances.
Example 3: Coca-Cola is using bright red color for its cans which is a feature of advertisements for the product. Pepsi is instantly recognizable with its blue cans.
Also, some products maintain a distinct difference from other products through packaging; hence it is also a form of product differentiation. Especially, when a product’s design, functions or features cannot be easily differentiated from others on the market. In this situation, businesses can use packaging to entice customers to buy the product.
Additionally, packaging and repackaging can be used as one of the extension strategies in the Product Life Cycle.
Disadvantages of packaging
Packaging generates an additional cost which ultimately increases the final price of the product. Customers are the ones who ultimately pay for the privilege of attractive packaging. For elastic products, business must not spend too much money on packaging as this may increase the price above the level consumers are willing to pay. Expensive and wasteful packaging may add unnecessarily to costs that could reduce a product’s price competitiveness.
Marketing may also create excessive packaging causing environmental damage. With increasing pressure of environmental pressure groups, packaging may be seen as wasteful may triggering negative consumer reactions. For this reason, the use of recycled and recyclable materials in packaging should be encouraged.
As packaging does affect costs, prices, customer perceptions and consumer demand, selling products with cheap and ugly packaging will destroy any quality image that the company is attempting to establish.
Recent trends in packaging
- Recycling. As consumers are becoming more aware of environmental issues, businesses have started using recycled materials in their packaging and make the packaging itself recyclable.
- Repurposing. Some of the current packaging can be used to revolutionize the sale and promotion of other products. For example, wine can be sold not only in glass bottles, but also in cans or boxes to avoid potential damage.
In summary, good packaging readily gets consumer attention through the use of color, shape, size, etc. Nowadays packaging is increasingly used to give a special identity for the product to differentiate it from competitors’ products.
As with all other aspects of marketing, packaging decisions must be connected with the overall marketing objectives of the business for the product in question.
