PACKAGING

Product packaging used to be regarded as a rather utilitarian marketing activity whose functions were to protect the product and to provide a convenient way to transport and store the product along the marketing channel. Since the late twentieth century, packaging has evolved into one of the more important marketing tools to enhance sales of a product. Product packaging, including the labels on the package, is the last opportunity to influence the purchase decision of the consumer at the point of purchase.

Supermarket shelves are cluttered with multiple brands competing for the attention of shoppers. Some estimates are that the average consumer passes approximately 300 items per minute during a shopping trip to the supermarket. Depending on the product category, up to 70 percent of all brand purchase decisions are made at the point of purchase. Thus, the product package should be considered one of the most important components of a marketing effort. As such, it should be designed to attract the attention of the consumer and promote the sale of the product.

Product packaging can be defined as all the activities that:

are involved in developing and producing the covering(s) and/or container(s) that provide protection for the product;
facilitate product handling and storage;
assist in the marketing and promotional efforts; and
enhance the use of the product by the consumer.

The U.S. Department of Agriculture (USDA) estimated that over 8 cents out of every consumer food dollar was spent on packaging. In fact, many "companies spend more on packaging than on advertising" (Hoffman, 2006, p. 299). In 2004 the total global market for consumer packaging exceeded $350 billion, with a growth rate of about 4 percent annually over the previous ten years. With $98 billion in sales, North America accounted for 28 percent of the market. Food and beverages accounted for approximately 70 percent of all consumer packaging.

Most consumer products, large and small, require some packaging. Refrigerators and other large appliances are normally shipped in a cardboard carton to protect the finish of the unit, and may include internal packing material to protect the mechanical components. On the other hand, small screws are packaged in small plastic boxes or plastic pouches. Some packaging requires minimal information (refrigerator carton), some have selected informational copy (bread), and others have a significant amount of marketing promotional design and copy (branded cookies).

Often a given product will have several layers of packaging each with different functions. The product's primary container is the immediate package that holds the product (such as the plastic tube that contains the toothpaste). The primary container may then be placed in a secondary package for easier stacking, promotional communication, and display on merchandising shelves (the colorful box that holds the tube of toothpaste). Finally, there is the shipping carton—usually corrugated boxes—which will hold a quantity of the products for easy identification, transportation, handling, and storage (six-dozen

boxed tubes of toothpaste to a carton). It is easy to see that, in some cases, the cost of packaging a product (toothpaste) may far exceed the value of the actual product (the paste).

FUNCTIONS OF PACKAGING

Packaging is designed to serve one or more of several functions: product protection; easy and efficient handling and storage; providing useful identification and information; and contributing to the marketing and promotional efforts. Products need to be protected from rough handling, the environment, and spoilage. Most products need to move through a marketing channel from the end of the production line to the home of the final consumer. A number of different people and machines will physically handle (or mishandle) the product as it flows through the channel, which will likely involve loading and unloading, transporting, storing, and stocking the product on the vendors' shelves. The shipping containers must be designed to withstand all of the rough handling to which a package and product may be exposed.

The environment poses other dangers to products. Light (which affects milk and beer), moisture (chips and dried soups), temperature (ice cream and meats), and excessive movement (soft drinks) are a few of the environ-mental concerns for certain products. Another major concern is to protect the product from tampering and, in some cases, shoplifting.

Size, weight, dimensions, and stackability are just a few of the factors that need to be considered in designing packaging for easy and efficient handling of the product. Some automated product handlers have limitations that may influence the package dimensions or weight. How efficiently the product uses allotted space in the tractor trailer can reduce shipping costs. How much space a product uses and how easy it is to stack on the shelf may determine if a retailer carries certain products. These are just a few of the logistical concerns that need to be considered when creating the packaging for a product.

Certain basic identification and information will need to be included on the various layers of packaging required for a product. The shipping cartons will need to identify such things as the product, the brand/company, the quantity, handling instruction, and any dangers associated with handling the product. The primary package and/or the secondary package, if that is what the consumer sees on the shelf, will need information such as: the brand name; quantity; contents or ingredients; suggested usage and instructions for use; any legally required information; "use-before" dates; and the Universal Product Code.

Finally, the marketing and promotional function should definitely be considered in designing the primary product packaging. This function is concerned with two characteristics of the package: attracting attention and the marketable attributes of the product. It is vital that the product's package attract the attention of shopping consumers. The use of color, shape, size, and graphic design are some of the common elements used to attract attention.

There are four situations when the ability of the package to attract the attention of shoppers is beneficial. In some cases the design, particularly the color graphics, allows for more efficient shopping by consumers who are looking for a brand they normally purchase. Shoppers do not initially read brand names, but rather they look for the familiar package and then confirm the brand name (such as Tide in the bright orange box). Being able to find preferred brands quickly will significantly reduce the chance of shoppers buying competing brands.

The second situation is when the package design is recognized from previous exposure of the consumer to promotional advertisements. Seeing the package on the shelf could cause consumers to consciously, or subconsciously, recall a favorable attitude toward the product and increase the likelihood of purchasing the product. It is also a common occurrence that the shopper wants to buy a given item but is not familiar with any of the brands. The package then becomes the primary source of informational and promotional communications, with the brand selection being based on the package. The fourth situation is the pure impulse purchase. In this case shoppers had not considered buying the product until the package attracts their attention and they are enticed to purchase the product.

In addition to drawing the attention of the shopper, the package itself may have attributes that significantly increase the attractiveness of buying a given brand. These are attributes that make the product easier to transport, store, and use, such as multiunit packaging; package dimensions that fit in the refrigerator door or on standard height shelves; and packaging which is easy to open, resealable, reusable, microwaveable and/or pourable. Some consumers also have a strong preference for environmentally friendly packaging that is recyclable or biodegradable. Any of these features may persuade a shopper to purchase a given brand of a product and should be considered when designing product packaging.

SEE ALSO Marketing; Promotion

BIBLIOGRAPHY

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