- 1. Introduction of Packaging 2. Definitions of Packaging 3. Meaning 4. Objectives 5. Important Aspects 6. Need 7. Functions 8. Qualities
- 9. Kinds 10. Classification 11. Types 12. Test to Check Packaging 13. Kinds of Materials Used 14. Packaging Cost 15. Considerations for Packaging Decision 16. Packaging Policies and Strategies.
Everything You Need To Know About Packaging.
- Introduction of Packaging
- Definitions of Packaging
- Meaning of Packaging
- Objectives of Packing and Packaging
- Important Aspects of Packaging
- Need of Packaging
- Functions of Packaging
- Qualities of Good Packaging
- Kinds of Packaging
- Classification of Packaging
- Types of Packages
- Test to Check the Method of Packaging
- Kinds of Materials Used for Packaging
- Packaging Cost
- Considerations for Packaging Decision
- Packaging Policies and Strategies
What is Packaging – Introduction
The history of packaging dates back to the year 1035, when a Persian traveller, visiting markets in Cairo, noted that vegetables, spices and hardware were wrapped in paper for the customers after they were sold. With the passage of time, attempts were made to use the natural materials available, such as, Baskets of reeds, wooden boxes, pottery vases, woven bags etc. However, the use of card board’s paperboard cartons was first done in the 19th century.
The Michigan State University was the first to offer a degree course in “Packaging Engineering” Since then, there has been no looking back. The packaging industry boomed as more than the content, it is the ”packaging” which attracts the attention of the buyer.
There was a revolution in Packaging in the early 20th century due to several modes of packaging designed such as Bakelite closures on bottles, transparent cellophane overwraps and panels on cartons, which increased processing efficiency and improved food safety. As additional materials such as aluminium and several types of plastic were developed, they were incorporated into packages to improve performance and functionality.
Packaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages.
In short, Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells, in many countries it is fully integrated into government, business, and institutional, industrial, and personal use.
- holding together the contents
- protecting product while passing through distribution channels.
Recently, term packaging is being used interchangeably to mean both ‘packing’ proper as well as ‘packaging’. Traditionally, ‘packaging’ referred to retail or consumer container and ‘packing’ to transport container. Consumer packaging has significant marketing implications while transport containers are more important from logistics standpoint.
materials used for packaging:
New technology allows for 360 degree shrink-wrapped labels to surround containers with bright graphics and more on-pack information, replacing paper labels glued on to cans and bottles.
What is Packaging – Definitions
Packaging means the wrapping or bottling of products to make them safe from damages during transportation and storage. It keeps a product safe and marketable and helps in identifying, describing, and promoting the product.
Different kinds of products need different kinds of packaging, for example, liquid products are packed in barrels and bottles; whereas, solid products are wrapped. The organizations use special containers for fragile products, such as glassware.
The terms packing and packaging are used synonymously but there is a certain amount of difference between the two. Packaging means covering the product itself so that it is protected from damage, leakage, dust, pollution, contamination etc. Examples – Chocolates packaged in thin sheet, milk packaged in sachets etc.
Packing means putting all the packages in a big box, container, chest, crate etc. for the purposes of storage, transportation, handling etc. Moreover the functions of packing and packaging, in the present context have gone beyond the basic expectations of protection of the product.
“Packaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use.”
Until recently packing was being considered as a minor element in the marketing mix of a product. But now it has become an integral part of the product itself. Packages act as the major means-of creating product preference. It is a vehicle by which the brand of a product is carried through the consumer. It is a powerful selling tool. Hence, it has become a highly important area of managerial decisions.
Packing and Packaging:
Packing is the process of covering, wrapping or crating goods into a package. This is done for the purpose of delivering the product.
Packaging involves designing and producing the container or wrapper for a product. The potentialities of packaging, essentially in the field of demand creation, have been widely accepted now. If is often remarked as a silent salesman. Packaging decision may affect production, distribution, research and development, sales, accounting, and finance.
Packaging is an effective selling tool. For example, Gillette Company introduced a package for keeping blades. This packaging has come to be known as – “razor blade dispenser”. This dispensing packaging not only includes space for new blades, which could easily be ejected, but contained space at the bottom of the dispenser in which old and useless blades could be kept.
What is Packaging – Meaning
Packaging is the general group of activities which concentrate in formulating the design of a package, and producing an appropriate and attractive container or wrapper for the product. Packing refers to the wrapping and crating of goods before they are transported or stored.
It is a physical action which provides a handling convenience, e.g., rice, cotton, wheat or any other agricultural produce. It is necessary to prevent flowing out of liquids and is essential to maintain freshness and quality. It can prevent the danger of adulteration.
Packaging is the subdivision of the packing function of marketing. It involves more than simply placing products in containers or covering them with wrappers. Philip Kotler defines packaging as an activity which is concerned with protection, economy, convenience, and promotional considerations.
Packaging obviously is closely related to labelling and branding because the label often appears on the package and the brand is typically on the label. A package defines the space in which a product is contained.
The package contents may be pre-measured, pre-weighted, pre-stored, pre-assembled, and then placed in a specially designed wrapper, box, carton, can, crate, bottle, jar, tube, barrel, or drum for convenient distribution.
Packing and packaging are basically done to protect the product. During the present days however these two functions have assumed several additional objectives in addition to protection.
The following are the objectives of packing and packaging:
1. To Provide Physical Protection:
Packaging of objects insures that they are protected against vibration, temperature, shock, compression, deterioration in quality etc. Packing and packaging also protect the products against theft, leakage, pilferage, breakage, dust, moisture, bright light etc.
2. To Enable Marketing:
Packing and packaging play an important role in marketing. Good packing and packaging along with attractive labelling are used by sellers to promote the products to potential buyers. The shape, size, colour, appearance etc. are designed to attract the attention of potential buyers.
3. To Convey Message:
There is so much of information about the product that a manufacturer would like to convey to the users of the product. Information relating to the raw materials used, the type of manufacturing process, usage instructions, use by date etc. are all very important and should be conveyed to the users. Manufacturers print such information on the packages.
4. To Provide Convenience:
Packing and packaging also add to the convenience in handling, display, opening, distribution, transportation, storage, sale, use, reuse and disposal. Packages with easy to carry handles, soft squeezed tubes, metallic containers, conveniently placed nozzles etc. are all examples of this.
5. To Provide Containment or Agglomeration:
Small objects are typically put together in one package for reasons of efficiency and economy. For example, a single bag of 1000 marbles requires less physical handling than 1000 single marbles. Liquids, powders, granular materials etc. need containment.
6. To Provide Portion Control:
In the medicinal and pharmaceutical field, the precise amount of contents is needed to control usage. Medicine tablets are divided into packages that are of a more suitable size for individual use. It also helps in the control of inventory.
7. To Enable Product Identification:
Packing and packaging enable a product to have its own identity. This is done by designing a unique and distinct package through the effective use of colours, shapes, graphics etc. Such identification and distinction are very essential in the present situation of intense competition and product clutter.
8. To Enhance Profits:
Since consumers are willing to pay a higher price for packaged goods, there will be higher profit realization. Moreover packaged goods reduce the cost of handling, transportation, distribution etc. and also cut down wastage and thereby increase profits.
9. To Enable Self-Service Sales:
The present trend in retailing is effective display and self-service sales. Products require effective packing for self-service sales.
10. To Enhance Brand Image:
Attractive packing and packaging in a consistent manner over a long time enhances the brand image of the product.
Important Aspects Of Packaging
In developing the marketing plan for a product, in international market, packaging is an important element. Packaging should be viewed from its promotional and protectional aspects.
- Promotional Aspect of Packaging:
Packaging of a product plays an important role in promoting the product in the international markets. With the advent of self-service starts and super markets, the package of a product serves as a ‘silent sales man’. It is capable of performing many of the salesman’s tasks.
When there is no salesman to promote the product in the stores, the package as kept on the shelf must attract the attention of the consumer, describe the product’s and producer’s features, project the confidence and make a favorable overall impression. Good packaging thus leads to improved consumer acceptance because it carries and projects various qualities of the product as well as the manufacturer.
Good packaging must reinforce the integrated marketing concept. Brand names occupy a dominant role in marketing which is popularised through advertisement. But the reminding of brand names and making brands acceptable to customers are achieved through proper packaging.
Packaging must, therefore, support and reinforce the brand identity the company is trying to build. In this way, good packaging creates demand for the product and brings large-scale production and distribution gains.
- Protectional Aspect of Packaging:
The second important aspect of packaging is its protectional aspect which it provides to the product, consumer packaging intends to offer better convenience to consumers in use and in storage.
- It protects the product from:
- Pilferage and adulteration – It cannot be adulterated with any other product unless repacked.
- Product loss – Oil, petroleum products etc. are lost if remain exposed.
- Contamination by dirt or dust, e.g., clothing, food products.
- Moisture gain or loss, e.g., cement or sugar,
- Chemical change.
- Insect attack, e.g., moth in woolen garments.
It has been estimated that good packaging increases the unit value realization approximately three times if we are able to develop and bring about retail packs for a large number of exportable items. It also increases the popularity of the product.
- Transport Packaging Protection during Transit:
The basic function of transport packaging in international marketing is to ensure that the goods will reach safely in the hands of consumers. To ensure the goods is no excuse for not bothering for damages or pilferage in transit. Good packaging is essential irrespective of the fact whether the goods are insured or not.
Improvements in packaging are needed to avoid transit losses due to environmental hazards, i.e., climate, moisture, etc. and to achieve greater speed in handling and deliveries. The materials used in packaging should be such that protect the goods from the ill-effects of moisture, gas, light, air, etc. so that goods may preserve its attributes, shape, weight, stability, fragility, rigidity, surface finish and durability etc. Thus packaging plays an important role in the storage, preservation, protection and distribution.
The type of packaging which ensures that the goods will be delivered in a good condition to the foreign buyer will vary depending upon the various factors such as-
- The product,
- The poor of destination,
- The length of the journey,
- The climate of the place of delivery and place of destination,
- Eat and measure to which the goods are subjected during the voyage,
- The loss of the importing and exporting countries regarding packaging of goods,
- Mode of handling the goods etc.
In many cases, the packaging conditions are specified in the contract itself and therefore the exporter should not be bothered about. He must adhere to the conditions laid down in the contract. Even when the importer has not laid down any condition as to packaging, it is the prime duty of the export to provide transport packaging of the type which may ensure the safe arrival of the shipment in merchandise condition and must adhere to the above factors.
- Legal Provisions:
The mandatory provisions as to packaging of the goods imported also have important bearing on the packaging of goods. Most developed countries have enacted comprehensive legislation on the type of containers, both bulk and consumer especially for food items. For example, exports of food products to the USA must conform in all respects to the provisions of the U.S. Foods and Drugs Act.
Similarly, Australia bans the imports of any packing material containing vegetable matter in order to check insect contamination of the country’s wood resources large consignments of Indian goods were repacked at the Australian Port of entry at the exporters’ cost. In 1978, the USA directed that all Indian export consignments in wooden packing’s be first fumigated before they are unloaded at U.S. ports.
The laws of the importing countries may also specify the labelling requirements to be shown on the packages imported. However, these rules may vary from country to country.
- These rules require the following information to be shown in the label:
- Name and address of the manufacturer/importer;
- Clear description of the product’s composition;
- Net weight or volumetric measurement;
- Duration of the product’s life;
- Storage conditions required after the package has been opened;
- Manufacturer’s instructions for use or preparation, if any. Factors to be considered for Package Designing.
What is Packaging – Need
1. Important Element of Marketing Plan:
Packaging is an important element in formulating marketing plan for a product.
2. Silent Salesman:
With the advent of self-service stores and super markets, package has to perform the function of a silent salesman besides traditional function of protecting the product. This means that in the absence of a salesman to promote the product in a sales store, package as kept on the shelf captures the fancy of the customer.
3. Communication with Consumer:
Product package has an important promotional function. It establishes meaningful communication with the consumer.
4. Package Designing:
It is extremely important to know the special attributes of each target market and design the product package accordingly.
Consumer packaging offers better convenience and ease to consumer in handling and carrying their products.
It protects the product from pilferage and adulteration.
7. Increased Value:
It has been estimated that unit value realization can rise approximately three times if able to develop and bring about retail packs for a large number of exportable items.
8. Other Aspects:
- It helps increase sales.
- It adds to use of a product.
- It helps in storage.
- It helps in product differentiation.
- It helps promote a product.
- It contributes to safety of a product from damage.
- It helps in branding and promoting brand loyalty.
- It may cut marketing costs and thus enhance profit/ profitability of product.
- It helps portability/transportability of product.
- It helps publicity.
9. Recent Developments/Trends:
In recent years, producers have made changes in their packaging for a few reasons, viz.:
- Maintain sales volume.
- Expand market by new packaging.
- Use packaging as a means for advertising and sales promotion.
10. Use of Packaging Machines:
- Integral Part – Packaging machines have now-a-days become an integral part of industries.
- Health consciousness, urbanization and even changing habits are some of the factors that have led to growing use of such machines.
- Food and Pharma sectors have contributed significantly in growing use of these machines.
Functions: Protection and Preservation, Containment, Communication, Convenience, Economy and Promotion Function
Packaging has a two-dimensional function. First, it must protect the product. Then it has an important promotional role.
Thus, the functions can be categorized into the following headings:
1. Protection and Preservation:
The basic function of packaging is to protect and preserve the contents during transit from the manufacturer to the ultimate consumer.
i. Most of the damage occurs in the handling process. The more frequently the products are handled in the distribution process, the greater is the need for protection. Damaged goods have to be replaced as they may cause loss and inconvenience to the seller as well as to the purchaser.
ii. Certain products, if exposed, may be lost. Powder, oil and petroleum products are examples.
iv. Contamination by dirt or dust, for example, clothing.
v. Moisture gain and loss, for example, cement.
vi. Chemical change, for example, metal corrosion.
vii. Insect attack, for example, moths in clothing.
Most products must be contained before they can be moved from one place to another. To function successfully, the .package must contain the product. This containment function of packaging makes a huge contribution to protect the environment. A better packaging helps to maintain the quality of the product and reachability of the product in the consumer’s hand without spillages. It gives better image to the organization.
A major function of packaging is the communication of the product. A package must communicate what it sells. When international trade is involved and different languages are spoken, the use of unambiguous and readily understood symbols on the distribution package is essential.
It helps in appropriate communication to the consumer about the product, how to use it and other utility information. Packaging protects the interests of consumers. Information includes quantity, price, inventory levels, lot number, distribution routes, size, and elapsed time since packaging, colour, merchandizing and premium data.
i. Properly packed goods require less space.
ii. Easy methods could be suggested to take goods out from a pack and keep the rest intact.
Package provides various economies, both to the producers and the consumers.
i. Loss in quantity is prevented thereby avoiding the monetary loss also.
ii. Creates an opportunity to communicate with the customers.
6. Promotion Function:
i. Self-service – The package must be and capable of performing many of the sales tasks. It must attract attention, describe the products’ features, give consumer confidence and make a favourable overall impression.
ii. Consumer affluence – The prestige of a product is maintained with the help of proper packaging. Good packaging is capable of projecting various qualities of the product as well as that of the manufacturers.
iii. Integrated marketing concept – Brand names now occupy a dominant role in marketing. The brand names are popularized through advertisement but the reminding of brand names and making the brands acceptable to consumers are achieved through packaging.
iv. Innovational opportunity – Packaging is capable of bringing large-scale gains.
Packages also perform a large and increasing variety of other individual, functions.
Some of these functions are:
i. To assemble and arrange the contents in the desired form.
ii. To identify the contents, the brand and the maker. (Product differentiation is perfected through this function).
iii. To provide a suitable product mix including size, weights, prices, grades and packages.
iv. To facilitate retailer’s functions.
v. To facilitate transporting, storing and warehouse handling.
vi. To enable the display of contents.
vii. To encourage repurchase.
viii. To help in complying with legal requirements.
ix. To provide opportunity and space for advertising.
What is Packaging – 14 Essentials/Qualities of Good Packaging
1. Attractive Appearance – That is, attracts customers attraction, creates his interest in product and creates positive image of product.
2. Convenient for Storage and Display including storage in lesser space.
3. Safety of Goods, that is, security or protection of goods from damage, spoilage, breakage, insects, rodents etc.
4. Product Description be shown on Package.
5. Recognizable – Package must be recognizable.
6. Eye-Appeal of package.
7. Transport Economies – Packaging should allow economies in transport.
8. Uniformity and Consistency.
9. Convenience in Transport Handling e.g., provided with hooks, handles, grippers etc.
10. Able to withstand hazards of transport e.g., tilting, throwing, pulling, pushing, rolling etc.
11. Amenable to quick examination of contents; for example in case of export, import by customs authorities.
12. Easy to dispose off after opening of goods.
13. Proper and Adequate Marking.
14. Proper instructions like –
‘This side up’, ‘Fragile’
‘Handle with Care’
What is Packaging – Kinds of Packaging on the Basis of Nature
Kinds or methods of packaging will depend largely on the nature of the contents in terms of their value, physical composition and durability.
The length of the distribution channel, the amount of handling which the container receives, and variations in climatic conditions encountered between the points of manufacture and sales are also to be taken into account.
For example, products in liquid form require containers made of glass or similar materials. For fragile articles, wooden containers are used.
On the basis of nature, packaging is classified into the following:
i. Family packaging – A package of a particular manufacturer, packed in an identical manner is known as family packaging. The shape and colour, the materials used for packaging will be similar for all the products in such cases.
ii. Reuse packaging – Packages that could be used for some other purposes after the goods have been consumed is known as reuse packaging.
iii. Multiple packaging – It is the practice of placing several units in one container. This helps to introduce new products and increase sales.
iv. Transport packaging – The product entering into the trade needs to be packed well enough to protect against loss or damage during handling, transport and storage, for example, fiberboard, wooden crate, etc.
v. Consumer packaging – This packaging holds the required volume of the product for ultimate consumption and is more relevant in marketing, for example, beverages, tobacco, etc.
What is Packaging – Classification
While formulating packaging policies and strategies, it is important for marketers to develop a packaging concept around which these are to be formulated. A packaging concept is a description of product package and the functions it is supposed to perform in respect of that particular product. The conceptualisation of package involves determining package functions and developing an appropriate mix of these functions so as to attain product objective. For example, in case of Zodiac neckties and hand-kerchiefs package visibility was defined as the basic packaging concept and therefore, rigid plastic package was developed.
Classification of Packaging:
1. Family Packaging:
The product of a particular manufacturer when packed in an identical way is known as family packaging. The shape, colour, size etc. of packaging will be similar for all his products. Family brands are made meaningful by using family packaging, also. In such cases packaging methods, material used for packaging the appearance etc. will be one and the same for all the products of a manufacturer.
2. Re-Use Packaging:
Packaging that could be used for some other purposes by the consumers after the packed goods have been consumed is known as re-use packaging. This aspect increases the sales value of the product considerably.
3. Multiple Packaging:
It is the practice of placing several units in one container. This helps to introduce new products and increase the sales.
The various aspects of packaging are now treated as a management activity.
The following are the problems encountered in packaging:
(a) Cost of packaging
(c) Kinds of designs
(e) Re-use purpose
IN spite of its various advantages, packaging has been subjected to criticism. One among them is that it adds cost. To some extent this complaint holds goods. It is true that packaging expenses definitely increase the price. But the benefits derived are sufficient to compensate the increase in cost. For example some medicines which we buy are to be consumed at once. Their preservation is very important. Only a good package can render this service. So long as the product is capable of absorbing the packaging cost proportionately this criticism cannot be accepted.
In considering some of the more sophisticated uses of packaging the protective aspects of packaging should not be disregarded.
Attention is therefore drawn to the following hazards against which packaging should provide a defense:
1. Insect Attack, e.g. months in clothing.
2. Mould, e.g. in canned foods, paints.
3. Flavor loss or change.
4. Chemical change, e.g. mental corrosion, coffee rancidity.
5. Moisture Gain and Loss – Many products have an optimum moisture content, e.g. cement, ceramic paints, frozen foods.
6. Contamination by Dust or Dirt – Clothing, food and fine machinery are obvious examples of products liable to damage in this way.
7. Pilferage – Loss through pilferage can be quite high-especially if there are many handling points.
8. Product Loss – Liquids and powders are highly susceptible to loss, e.g. powder leakage, liquid evaporation.
9. Damage by Mechanical Handling – Most damage occurs in the handling process and, the more frequently product are handled in the distribution process, the greater is the need for protection. One of the advantages of the liner rain and other container transport development is that they will result in less damage through handling. Damaged goods have to be replaced and are likely to cause loss and inconvenience to seller and purchases. Often slightly damaged products may not be returned, but may inhibit repeat purchase.
What is Packaging – 4 Important Types (With Package Forms and Material Used)
1. Consumer Package:
It holds the required volume of a product for ultimate consumption and is within the means of a buying household. In other words, the consumer has the option to purchase the pack size which he considers adequate for the consumption of his family over a length of time and which does not involve extra investment during that period.
2. Bulk Package:
It is the opposite of consumer package. It is either for the industrial consumer’s use or for loose dispensing. The bulk package also often requires an outside package in which it is transported and which is sometimes referred to as a transit package or an outer container.
3. Industrial Package:
This packaging provides protection to the spare parts, semi-finished and finished products during each phase of the manufacturing process, and also during transportation and storage.
4. Dual use Package:
It has a secondary usefulness of a package after its original contents have been used. For example, plastic bottles, sacks in which groceries are packed, etc.
Packages are often selected on prima facie grounds of cost, common industrial practices, type of the product, quality of product, conditions of display, likely consumer appeal.
Packages may be in the form of tin plate cans, cardboard containers, polythene bags, paper or cloth or gunny bags, wooden boxes, teak chests, squeeze bottles, collapsible tubes, aerosol cans, aluminium foils, clear film wrappings, plastic container, etc. Colour may be used to identify sizes, models, flavours and qualities.
The true economy of packaging lies in the total packaging operation—filling, sealing, storing, handling and distribution. The most common packaging materials are metal, glass, wood, paper, cardboard, plastic, cloth, jute and cellophane.
A wide variety of packaging material is used according to the availability, possible shortages, competition, economy, transport worthiness, and shelf life. Packaging involves selection of materials, manufacturing, filling and handling of finished packages.
Consumer problems with packaging:
1. The buyer cannot judge the contents of the package by its mere appearance unless it is transparent.
2. The consumer cannot check the volume of the contents, unless he opens the packet.
3. Packages may be deceptive and contain wrong or misleading information/illustration.
4. Many of the common materials used for packaging are hazardous to human health and pollute the environment.
What is Packaging – Mathematical Tests to Check the Method of Packaging
There are various mechanical tests to check the method of packaging.
i. Drop test – This test helps to measure the ability of the container to provide protection to its contents and to withstand rough handling.
ii. Vibration test – This test is used to determine the ability of the container to withstand vibration and the protection offered by materials used for interior packing.
iii. Compression test – This test is carried out, generally, on empty containers, to measure the ability of the container to resist external compressive loads applied to faces or applied to diagonally opposite edges or corners.
iv. Inclined impact test – This test helps to study the extent of damage in a way of crushing, breaking, cracking, distortion and shifting during handling, storage and transport which occurs to the container and its contents.
v. Rolling test – This test helps to evaluate the overall strength of the container and the cushioning material provided inside.
vi. Drum test – This test helps to evaluate loaded shipping containers with respect to general overall durability and the protection afforded to the contents against certain hazards of handling and shipment.
Various climatic tests are available to check the effect of various climatic factors on packaging:
i. Rain test – This test is conducted in a simulated rain condition to assess its impact on the test area for two hours.
ii. Sand and dust test – This test evaluates the resistance of a package to the penetration of sand and dust.
iii. Salt spray test – This test evaluates the resistance of a package to corrosion by salt spray and if serves as a general standard for corrosion.
The following points need to be taken into consideration while packaging:
i. Cost of packaging.
iii. Kinds of designs.
AIDA formula is applicable in packaging decisions too.
This formula represents the following four basic requirements.
A—Attention, that is, getting the attention of the public.
I—Interest, that is, creating an interest over the product.
D—Desire, that is, and creating desire to purchase the product.
A—Action, that is, compelling the consumers to take action (that is, purchase).
Engineering tests are necessary to know whether the package will withstand handling. Visual tests are done to prove its attractiveness. Dealer tests and consumer tests are also conducted to assure favourable response from these two groups.
In spite of its various advantages, packaging has been subjected to criticisms. One among them is that it adds to cost. It is true that packaging expenses definitely increase the cost. But the benefits derived are sufficient to compensate the increase in the cost.
For example, the medicine which we buy is not consumed at once. Its preservation is very important. Only a good package can render this service.
What is Packaging – Kinds of Materials Used for Packaging
Earthenware – It is an old method of preserving products of liquid nature.
China jars – They are used where protection is required against light and corrosive action.
Wooden boxes – They prevent breakage due to rough handling.
Cardboard containers – These are mostly used in specialist goods which are not bulky.
Straw baskets – These are meant for keeping vegetables.
Gunny bags – Gunny bags are popular for packing goods like rice, grains, sugar, cement, white and colour washing materials, etc. Gunny bags cannot give protection to the goods.
Glass – Glass is used to pack liquid products. It affords protection against the action of most of the chemicals.
Tin containers – Tin containers are used to pack liquid and solid products. They are light and strong.
Plastic containers – Plastic containers are gaining extreme popularity. Plastic containers are used to pack liquid and solid products. It involves low cost, good appearance, convenience and ability for reuse.
Paper bags – Paper bags are used to pack products which are in solid form. They are commendable. But their limitations are that the freshness of the product cannot be preserved.
Cellophane paper – Cellophane is a good substitute for paper as packing material. It protects the contents from moisture, but it cannot protect the products against harmful effects of light.
Cushion materials Cushioning is that part of packaging, which protects the article from damage due to shock and vibration.
The main functions of cushioning materials are:
i. Shock protection against vibration.
ii. Protection against abrasion.
iii. Protection of grease-proof and water-proof barriers at the point of contact with solid blocks.
iv. Protection of moisture vapours barriers at points of contact with sharp edges of the article itself.
v. Protection of small projections.
vi. Filling of void space in the container.
What is Packaging – Packaging Cost
The most important aspect of packaging is the packaging cost.
Packaging cost includes the following:
Material cost – It means the cost of the pack and quality control cost.
Storage and handling cost of empty packages – This includes the handling cost of bulky packages, heavy materials of construction, drums, etc.
Packaging operation cost – This includes the cost involved in operations like cleaning the package, product filling, closing, labeling, unitizing, stenciling, handling cylindrical drums, etc.
Storage of filled packages – This includes the cost incurred to shift the goods from one form of packaging to another.
Transportation cost of filled packages – This involves the transportation cost by sea, air, etc.
Loss and damage cost – It is related to the loss and damage during operation, transportation, delivery, etc.
Insurance cost – It varies depending on the vulnerability of package.
Effect of packages on sales – The package that influences the sales.
Obsolescence cost -This cost is incurred when changes in the packaging materials, packages and labels happen.
Package developmental cost – This includes the evaluation cost, pilot test cost, field testing cost, consumer research cost, feedback cost, final trial cost, etc.
What is Packaging – Considerations for Packaging Decision: Package Design, Package Cost, Package Size and Package Test
A decision taken in respect of packaging of a product is known as packaging decision. When a producer wants to take a decision in respect of packaging of a product, he has four main points for considerations to take the decision.
These considerations are as follows:
(1) Package Design:
The very first decision taken by a producer in regard to packaging of a product is to decide the design of packaging.
Decision of design of packaging includes following five decisions –
(i) Which type of material will be used for packaging?
(ii) What will be the design of packaging?
(iii) What colours will be used on packaging?
(iv) What will be the matter printed on packaging?
(v) What will be the brand name and trade mark on packaging?
In addition to the decision on above questions, the design of packaging is determined keeping in view the convenience of consumers and middlemen. The design of packaging must be such that it may facilitate the activities of storage, transportation, and distribution. Other factors affecting the decision of design of packaging are — nature of product, cost of packaging, size of packaging, legal restrictions, advertisement, etc.
(2) Package Cost:
While taking any decision on packaging of a product, the cost of package plays an important role. The package must be selected only after considering the cost of package and its effect on the price of product.
(3) Package Size:
Very important decision in respect of packaging is to decide the size of packaging. The size of packaging differs from product to product, producer to producer and time to time. In addition to it, a single product is offered by a single producer to the consumers at a single time in different sizes of packaging. The size of package depends upon the nature of product and the quantity generally purchased by consumers. As different consumers buy a product in different sizes, it is advisable that the product must be packed in the packages of different sizes.
(4) Package Test:
When a package is decided for a product, the efforts are made to test it so that it may be assured that the package will meet the requirements of consumers.
There may be four types of test for this purpose:
(i) Technical Test – Technical test is the test carried out with the purpose of testing whether the package design is proper or not for the safety of product?
(ii) Middlemen Test – This test is carried out with the purpose of testing the suitability of package from the point of view of middlemen.
(iii) Consumer Test – Consumer test of package aims at testing the package with a view whether it will be liked by the consumers or not?
(iv) Appealing Test – This test, tests the package whether it looks attractive or not? If a package is approved in all the four tests, it is finally decided and if a test fails at any stage, it is disapproved.
What is Packaging – Policies and Strategies
A company can follow any one of the following policy options in respect of product packaging.
It can make periodic changes in the product package in order to achieve one or more of the following purposes:
(a) It can be the management’s decision to provide more product protection and make it user friendly. For example- a ‘milkmaid’ condensed milk container is very difficult to open. But the same product called “Mithai Mate” from Amul was introduced with an easy to open aluminium container. Similarly, biscuits in gift packs are packed well, all biscuits are packed separately so as to maintain the crispness.
(b) Sometimes, changes in packaging may be introduced to correct defects in the package itself. For example- leakage in containers after opening, difficulty in opening, and wrong use of the containers for packing after the product is over, (like containers being used for storing lubricating oil). Another example – edible oil used to be packed in aluminium containers which were difficult to open. But now edible oil is available in one kg plastic bags or plastic bottles.
(c) Innovations in packing material may also necessitate product package changes. For example- instead of plastic, aluminium or tin, companies are now using eco – friendly packing materials. Some cities like Ooty have banned the use of plastic by imposing a fine of Rs. 200, due to the environmental problem it creates.
(d) Lastly, a package change may be necessitated due to an innovative promotion program. For example- the Cavincare group did an innovative marketing effort for its ‘Chik’ shampoo. According to the Cavincare group’s Chief Executive Officer, Mr. Ranganathan, the key to success was not manufacturing, but marketing and distribution. His innovate marketing strategy in 1980, to return five shampoo sachets and get one Chik shampoo free, had been an instant success.
This is a type of packaging strategy in which the various packages of the entire product line closely resemble each other or alternatively major features of the various packages in the entire product line closely resemble each other. For example- Arun Ice-cream’s vanilla and butter scotch flavors come in one packet.
The advantage of this strategy is that a new product in an identical package enjoy the same market reputation and acceptance as the others. Another example of family packaging is the different products of “Cadbury” that are available in a single gift packet. This type of packaging also helps to reduce packaging expenditure.
But its disadvantage is that, if the reputation of the older products is bad then the reputation of the new product will also be affected. Similarly, customers may also feel that slow moving items are being pushed along with the fast moving items in a single pack.
This packaging is a strategy in which marketers offer products in such a package, which may be reused for other purposes, once the product has been exhausted or taken out. For example- Boost, Horlicks, Bournvita, Nescafe, Jams, etc. are sold in glass jars which can late be used for storing things. Similarly, ice-creams like Joy, Kwality or Arun are also sold in plastic containers which can be reused for other purposes.
Re-use packaging stimulates repeated purchases as it offers an additional benefit for the same price.
Multiple packaging is a strategy in which a number of heterogeneous products used by one consumer are placed in a single package. For example- a facial cream, talcum powder, eyeliner, lipstick, mirror, comb etc. are placed in a single package. This helps the company increase sales and promote new items along with existing items. The company once obtains acceptance for good products, new products, slow moving items, etc. will get promoted at the same time.
4. Ecological Packaging:
This type of packaging has evolved due to environmental pollution ecological packaging includes the following:
(a) Avoidance of plastic for packaging.
(b) Use of containers that decompose over a reasonable period of time.
(c) Use of eco-friendly packaging material, and
(d) Use of light weight packaging material.