Explain Packaging and Labelling.

We will discuss various aspects of packaging form its objectives, functions, and packaging decisions.
Packaging and the need/objectives of good Packaging –

Packaging is the process of designing and producing the wrapper or container of the product. With customer preferences and choices given priority amidst competition, packaging holds high importance in influencing customers to buy the product. Packaging is always a first point of contact with the product. It has to create a favourable impression on the customer to try the product.

Today customers look for variety when buying a product because of which there is emergence of supermarkets and shopping malls where customers can choose a product of their choice by personally inspecting it rather than depending on a salesman. Different kinds of materials are used for packaging depending on the product characteristics – wooden boxes, earthenware, gunny bags, cardboards, glass, Tin, Tetra packs, plastic, etc.

Below are the reasons that an organisation invests in good packaging strategy-
1) Self-service – in the era of self service, packaging on the product identifies and markets a product. When a customer visits a supermarket he/ she will see a number of products from different manufacturers. Most of the time the customer buys a product basis the attractiveness of the product packaging. A well packaged product creates a favourable overall impression and influences the buyer to try the product.

2) Convenience for both manufacturer and customer – the product should be easily stored and transported over a maximum period possible without any damage. The manufacturing plants are usually at one place to achieve economies of scale. After the manufacturing, the product needs to be distributed in different regions and this poses a threat of damage to the product during transportation and storage. A right packaging protects the product from such threats. Similarly, consumers buy a reasonable stock to serve the purpose of using it for a certain period. For example, milk packaged in tetra pack stays longer. Similarly food items with air tight packaging last longer at home.

3) Safety and handling information – most of the government regulations make it mandatory for manufacturers to give detailed information about the product. For example, keep away from children, nutritional information, etc. A detailed information of safety, how to use, expiry date, grading (water bottles have grades from 1 to 5), etc. help a customer make favourable decision.

4) Shelf-space – When most of the stores provide self-service to customers, packaging is considered as a 5 sec. advertising to influence customer interest.

5) Brand awareness – A well designed package enables recognition of the company’s brand.

6) Innovation opportunity – Innovative packaging wrappers or containers if reusable excite and interest consumers. If packaging is done using material that is less harmful to the environment and easy to dispose, it benefits the organisation’s brand image. Similarly companies use package containers that can be later used by customers to store items at home.

Depending on the quantity the packaging has to be done as per the demand.

Packaging elements –
An organisation has to decide on packaging elements as part of it packaging strategy. These are – 1) Size, 2) Shape, 3) Material, 4) Colours, 5) Texture, and 6) Brand mark.
The above elements are utilised to ensure the intended functions of packaging are met. Packaging concepts outline what the packaging should be and how it should perform.

Functions of Packaging/ Packaging concepts and Packaging strategy decisions
Some marketers consider packaging as a 5th “P” of marketing mix; the other 4P’s being product, place, price, and promotion. But most of the marketers take packaging as part of the product strategy.

Since packaging forms an integral and important part of marketing strategy in today’s era, we will list the functions of packaging below –

1) Offer superior protection – It should protect the product from deterioration, and increase the life of the product during storage and transportation.

2) Aid new product strategy – many times packaging forms integral part of new product strategy. For example, liquid soaps are sold in easy to use dispensers, Colin is sold in spray bottles. Fast food manufacturers package food products such that the buyer doesn’t needs to serve the food items in plates, etc. Containers themselves serve the purpose of plates, etc.

3) Easy handling for consumer – A good package makes it easy not only to handle but also to store the product. It keeps the product clean and adds to convenience in storage at home.

4) Aid distribution – Packaging can assist is opening up new distribution channels like vending machines. Distributors pay close attention to various packaging characteristics like easy stacking, price marking, protection during transport and storage, and easy for customers to handle and open.

5) Support pricing strategy – package size and materials used for the packaging are often part of pricing strategy. For example, using a plastic container instead of glass container, reducing the size of a soft drink from 300 ml to 275 ml to reduce costs. Similarly, expensive packaging indicates a premium product and high price.

6) Serves as a promotion tool – packaging should be attractive. It should interest consumers via its elements like shape, colour, texture, brand mark, etc. Key product features and quality should be highlighted on packaging. It should clearly highlight how the product is different and better than the others of the same category.

7) Convey descriptive and persuasive information – It should provide information on directions for use, misuse, ingredients, warranties, guaranties, benefits, nutritional value, etc. according to the product category. This helps in self-promotion of the product.

Packaging Decisions that an organisation takes as part of packaging strategy –
• Packaging decisions involve inputs from all the different departments of the organisation (marketing, engineering, finance, etc.) as well are the external sources like distributors, research firms, information on competitors, etc.

• Environmental factors should also be considered during packaging strategy development like target market’s natural environment, legal issues, package safety, etc.

• Once the purpose of the packaging is outlined via inputs from product manager and other sources, the decision is taken on the other elements of packaging like material, colours, texture, brand image, illustrations, etc.

• All the elements selected should be incorporated to meet the purpose of packaging such as protection as well as a promotion tool, etc.

• At the next stage the packaging should be tested. Engineering tests may be carried out to check the durability, etc. of the packaging. Image related tests are conducted to check the legibility of script, etc.

• Next step involves market testing such as distributor feedback, etc. Packaging often is part of Product development strategy.

• Once the organisation receives a positive result from the tests conducted, the go ahead is given for final packaging.

Labeling and its functions.
Label is a slip found on the container which gives all information about the product and its manufacturer. It helps a customer in comparing different products basis the information given on the labels. It can be a simple tag or a designed graphic on the packaging. For example information about the contents, price, batch number, manufacturer, expiry date, nutritional information, grade, etc. Basis this information, the customer can easily make a decision of buying the product. This helps not only the buyers but also the resellers of the products. The resellers have information readily available to answers customers questions. And, when all the relevant information is available on the label, the reseller doesn’t needs to invest in salesman, staff, etc. at their stores for customer education.

The manufacturers are sometimes required to put the specific details on the label because of legal constraints or policies of the different geographical locations.

Labelling helps in the following ways-
(a) In identification of the product for example brand image on the tag.

(b) Highlights the features/ information of the product- grade, size, usage instruction, ingredients, expiry, etc. Grade assigned to a product via label helps a customer assess its quality without trying it. Customers can check information on the label like its date of manufacture and place of manufacture as well.

(c) Encourages manufacture of quality products

(d) It promotes the product – (attractive graphics, etc.). It helps in getting attention of the customer by means of attractive graphics, detailed and valuable information about the product which stands as a mark of a quality product.

(e) It protects the customer – it has all the valuable information about the expiry dates, quality and quantity details, maximum sales price. This helps the customer from buying a fake product, as well as the price above which the retailers, etc. cannot charge the customer for the product.

(f) In identifying the product from a replica or a fake product.