Need for Packaging:

Even after a product is developed and branded, it is important to adopt

strategies for other product-related aspects of the marketing mix.

One such product feature — and a strategic one for some products is
packaging, which consists of all the activities of designing and
producing the container or wrapper for a product.

A package is the actual container or wrapper. Thus packaging is a

business function and a package is an item.

A package is basically an extension of the product offered for sale. In

many situations the packaging may be more important than the
product it contains.

Packaging involves decisions about labels, inserts, instructions for

product use, graphic design, as well as decisions about the sizes and
types of physical containers for individual product items with the outer
package.

Objectives for Packaging:

Three main objectives of packaging are: 
1. Protection:
The basic objective of packaging for industrial goods such as
components and machinery is to protect the product while in transit.
But packaging for consumer goods has a broader aim.
2. Cognizability:
It is not enough for packaging to protect the product. Since the product
is meant for sale in final form to the ultimate customers, it must also
make the particular brand recognisable and appealing to buyers. This
is very important in the case of packaged foodstuffs and other
frequently purchased items from supermarkets and self-service stores.
Here several brands of a product are displayed next to one another on
the shelves, and it is important that the colour and design of a
package attract the attention of the customers and thus play a major
part in promotional strategy.

ADVERTISEMENTS:

The packaging lends charm to the product and reinforces the brand
name. If the packaging does not induce the consumer to pick the com-
modity’s brand in this situation, then all previous promotional efforts to
differentiate these brands are wasted. Thus, packaging is an aid to
advertising.

3. Shortage and usage:

Packaging also facilitates the storage and use of products. Thus
packages may be so designed as to conduce to the ease of handling
by consumers and by members of the channel of distribution.

Functions of Packaging:
A package design is supposed to attract attention and convey an
easily identifiable image. It must tell consumers what the product is
and why they should buy it.

In short, packaging provides:

(i) A containment function

(ii) A protection-in-transit function

(iii) A storage function

(iv) A usage facilitation function

(v) A promotion function.

Firstly, packaging protects the product on its way to the consumer. A

package protects a product during shipment. Furthermore, it can
prevent tampering with products—notably medications and food
products — in the warehouse or the retail store.

Secondly, it provides protection after the product is purchased.

Compared with bulk (that is, unpackaged) items, packaged goods
generally are more-convenient, cleaner, and less susceptible to losses
from evaporation, spilling, and spoilage.
Thirdly, it becomes a part of company’s trade, marketing, wholesaling
and retailing programme. A product must be packaged to meet the
needs of wholesaling and retailing middlemen.

Fourthly, it becomes a part of a company’s consumer marketing

programme. Packaging helps identify a product and thus may prevent
substitution of competitive products.

All these suggest that developing and designing a package is not

unlike designing the product itself. The package designer must be as
buyer-oriented as the product designer.

Advantages of Packaging:
Ultimately, a package may become a product’s differential advantage
or at least a significant part of it. Today, with its marketing significance
fully recognised, packaging is a major factor in the competition for
customers. Therefore, full responsibility and authority for packaging
should be with a firm’s marketing department.

Recent developments have prompted even greater attention to

packaging. Due to shortage of shelf space, it is not easy for
manufacturers to get their products displayed in a retail outlet. If other
marketing-mix elements are comparable, retailers are likely to
purchase and display products having attractive functional packaging.
Furthermore, the widespread use of self-service selling means that the
package must do the selling job at the point of purchase. In addition,
the public’s growing concerns about safeguarding products until they
are purchased must be considered in packaging. Once the product is
purchased, the package may still play a role. Many food products are
now packaged so that they can go straight from the shelf or freezer
into an oven.

Continuing developments call for management’s scrutiny. We see new

packaging materials replacing traditional ones — uncommon shapes,
attractive look and other new features. All are intended to provide
benefits to retailers and/or consumers and, as a result, selling points
for marketers.

Disadvantages of Packaging:
However, packaging creates the following problems:
1. Packaging exhausts natural resources.

2. Packaging is too expensive.

3. Some forms of plastic packaging are health hazards.

4. Packaging is deceptive.

5. Used and discarded packaging contributes significantly to the

consumer protection problem.