Packaging Decisions

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Packaging Decisions

• Module- vii
• By Srikanth Venkataswamy

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Module VII Packaging Decisions

• Importance of Packaging in Marketing
• Packaging as an Art
• Packaging Concept
• Packaging and Product Differentiation
• Science and technology of Packaging
• Packing Notes and Packing Lists
• Trends in Packaging Machinery
• Functions of Packaging
• Packaging Strategies
• Legal Aspects of Packaging
• Cost Effectiveness of Packaging
• Social Aspects of Packaging

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Importance of Packaging in Marketing

• Packaging
• Packaging is an important
  component of the total product personality .
• The Package performance three essential roles
• Giving protection to the product
• Giving information about the product
• Adding to its aesthetics and sales appeal

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Importance of Packaging in Marketing

• Traditionally, Packaging was intended to protect
  the product-
• To prevent deterioration en-route.
• To facilitate handling at various points of
  distribution.
• In later Years, Packaging also became a major
  tool in the promotion of the product.
• The material of package, the colour, the shape
  and the size of the package, its finish, the
  labeling on it, the possibility of reuse etc
• can build in the total sale appeal of the
  product.

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• Marketers are providing Value addition to the
  products and greater benefits to the customer
  through the packaging route

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What is Packaging?

• Packaging is the enclosing of a physical object,
  typically a product that will be offered for
  sale.
• Packaging can be defined as the wrapping material
  around a consumer item that serves to contain,
  identify, describe, protect, display, promote,
  and otherwise make the product marketable ,keep
  it safe clean. 
• Packaging is the outer wrapping of a product.

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What is Packaging?

• Kotler defines packaging as
• "all the activities of designing and producing
  the container for a product."
• Package is the process of making available the
  product in its intend form Of use from the
  producer to the consumer across different Levels
  of transfer. Prof Srikanth Venkataswamy

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Packaging Functional Requirements (Functions of
Packaging)

• 1. Protection and preservation 2. Containment
  
• 3. Communication

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Packaging Functional Requirements (Functions of
Packaging)

• 1. Protection and preservation
• A basic function of package is to protect and
  preserve the contents during transit from the
  manufacturer to the ultimate consumer.
• It is the protection during transport and
  distribution
• From climatic effects (heat and cold, moisture,
  vapour, drying atmospheres) from hazardous
  substances and contaminants and from
  infestation.
• Protection is required against transportation
  hazards spillage, dirt, ingress and egress of
  moisture, insect infection, contamination by
  foreign material, tampering pilferage etc.
• A package should preserve the contents in
  'Factory Fresh' condition during the period of
  storage and transportation, ensuring protection
  from bacteriological attacks, chemical reaction
  etc.

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Packaging Functional Requirements (Functions of
Packaging)

• 2. Containment
• 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 protecting
  the environment.
• A better packaging help to maintain the quality
  of the product and reach-ability of the product
  in the consumer's hand without spillages It gives
  better image to the organization.

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Packaing Functional Requirements (Functions of
Packaging)

• 3. Communication
• 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,
  readily understood symbols on the distribution
  package is essential.
• It is the interest further that to get
  appropriate communication to the consumer about
  the product, how to use it and other utility
  information's.
• Packaging protects the interests of consumers.
  Information includes quantity price inventory
  levels lot number distribution routes size
  elapsed time since packaging colour and
  merchandising and premium data.

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Packaging and Product Differentiation
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What is Product Differentiation

• What is Product Differentiation ?
• The product differentiation definition states
  that it is the process by which a product is
  distinguished from others, so that it appeals
  more to the target audience.
• Other than distinguishing the product from
  its competitors, this process should ensure the
  product is distinct from all other products the
  company offers.
• Product differentiation gives the product or
  service an edge over rival products.
• It highlights unique aspects of the products as
  and also generates value for the product in the
  eyes of the buyer, which should be any
  manufacturer's ultimate goal.
• Ex product mix, Product Features Product
  awareness reputation, distribution channels,
  Packaging ,Advertising, services,timing etc
• When the buyer perceives, a difference is when he
  will remember the product and buy it, thereby
  resulting in higher sales for the company.

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• Product differentiation can sometimes be done
  without modifying or altering the product or its
  features.
• This can be done by adopting an attractive or
  unique packaging, or by opting for a unique
  advertising campaign which registers itself in
  minds of the customer.

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Basic Differentiation

• A) In Protecting the Product
• Reduce costs due to breakage.
• Protect the product in transit for example
  breakable or perishable items such as perfume,
  light bulbs or food.
• Protect the product on the shelf from theft,
  damage or tampering (i.e., pharmaceuticals or
  CDs).
• B) In Promoting the Product
• Complement other promotional activities.
• Communicate information core benefits, why to
  buy testimonials, Internet addresses and
  toll-free telephone numbers, for products like
  tools or software.
• Display the product attach to display hardware
  or stand upright as with gloves or cell phones.

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Value Differentiation

• C) Provide Additional Value and Differentiation
• To provide increased purchase justification.
• Dispense the product ease of use or the size of
  recommended portions, as with spray paint, hair
  care products, etc.
• Preserve the product seal and reseal
  perishables. Examples are food products and
  cleaning supplies.
• Offer consumer safety warn of hazards due to
  improper use of dangerous substances (such as the
  information on cigarette packaging) or design
  considerations (such as Beverage can opening
  mechanism).
• Serve other uses containers that can be used for
  other after-purchase purposes. Film canisters
  might carry a couple days vitamins or aspirin in
  a backpack. A current foldable bicycle ships and
  travels in a suitcase, which then converts into a
  trailer to be pulled behind the bike.

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Generic Differentiation

• Retail products purchased on an impulsive basis
  depend heavily on packaging to communicate
  information and encourage a buy decision.
• Music CDs, perfume, and software are examples
  of this.
• An increasing number of products are purchased
  without the assistance from a store employee,
  magnifying the opportunity and impact of the
  package.
• Well-designed packages offer a promotional tool
  and convenience value to the user. This can
  result in another form of product
  differentiation.
• Packaging can offer after-purchase value to store
  the product, or be used for other uses.

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Differentiation on shelf

• A custom carton shape that works together with
  mouth-watering photography to create product
  differentiation on shelf.
• This is significant because private-label
  packaging generally features stock components and
  typically relies on strong photography and vivid
  color reproduction to ramp up the graphic
  intensity while also minimizing costs.

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Design Differentiation

• Competitors Design

• Design Differentiation

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Process Differentiation
Egg Packaging
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Usage Differentiation

• Usage Differentiation

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Packaging Machines

• Cartoning
• Case Erect / Pack / Seal
• Coding / Marking
• Form / Fill / Seal
• Filling, liquid viscous
• Labeling Machines
• Palletizing/Depalletizing
• Adhesive application
• Aseptic packaging
• Bagging fill/seal
• Blister / sealing / skin equipmet

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• Blow molding
• Capping
• Checkweigh / counters
• Container handling/orienting
• Converting equipment
• Conveying / accumulating / lane dividers
• Feeding / inserting / collating
• Filling, dry
• Filling, tube
• Fill / seal, cup / tub / tray
• Flow wrappers
• Induction sealing
• Inspection (machine vision, X-ray)

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• Multipacking
• Overwrapping
• Pouching
• Robotics
• Shrink wrapping
• Shrink banders / sleevers
• Strapping / banding
• Stretch wrapping
• Testing / measurement
• Thermoforming equipment
• Unscrambling / orienting
• Vacuum packaging

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• Types Packaging Materials
• Closures
• Containers
• Flexible Packaging
• Labels
• Shrink Film / Labels
• Adhesives
• Bags, pre-made
• Blisters / clamshells / thermoforming
• Bulk (IBC's, drums, pails, etc.)
• Carded packaging

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• Cases / trays / corrugated
• Cups / tubs / trays / foodservice
• Desiccants
• Lidding
• Paperboard / Paper
• Pouches
• Protective packaging
• Reclosable packaging
• Resins / pigments / additives
• Stretch film
• Tape
• Tubes

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Legal Aspect of Packaging

• The Indian Regulatory System falls under the
  category of compulsory legislations formulated by
  the various ministries and voluntary standards
  framed by various organizations to serve the
  country. The National Regulatory System is shown
  in Table 1.
• The Packaging Laws and Regulations for food
  products are mainly covered under
• The Standards of Weights and Measures Act, 1976
  and the Standards of Weights and Measures
  (Packaged Commodities) Rules, 1977 (SWMA).
• The Prevention of Food Adulteration Act, 1954 and
  the Prevention of Food Adulteration
• Rules, 1955 and its first amendment, 2003 (PFA).
• The Fruit Products Order, 1955 (FPO)
• The Meat Food Products Order, 1973 (MFPO)
• The Edible Oil Packaging Order, 1998
• The Agmark Rules

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Important Legal Aspects of Packaging

• The Act also specifies the base units for
• Length Metre
• Mass Kilogram
• Time Second
• Electric Current Ampere
• Thermodynamic Temperature Kelvin
• Luminous Intensity Candela
• Base Unit of Numeration International form of
  Indian numerals
• Declaration

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Declaration on Packaged Commodities for
Interstate Trade or Commerce

• In The Standards of Weights Measures Act (SWMA)
  Chapter IV (section 39),
• The Act stipulates that for interstate trade or
  commerce of commodities in packaged form,
  intended to be sold or distributed, every
  commodity in packaged form has to bear upon it,
  on a label securely attached to it, a definite,
  plain and conspicuous declaration of
• Identity of the commodity in the package
• Net quantity, in terms of the standard unit of
  weight or measure, of the commodity in the
  package
• Where the commodity is packaged or sold by
  number, the accurate number of commodity
  contained in the package
• The unit sale price of the commodity in the
  package
• The sale price of the package.

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Additional requirements

1. Every package should bear the name of the
   manufacturer and also of the packer
   ordistributor.
2. The statement as to the net weight, measurement
   or number of the contents should nothave any
   expressions, which tend to qualify such weight,
   measurement or number.(Exceptions to this are
   commodities which may undergo changes in weight
   or measuredue to climatic variations examples
   bread, soap, etc. where the qualifying
   statementwhen packed may be added to the net
   weight or measure).

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• Where the retail price of a commodity is stated
  in any advertisement, the net quantity ornumber
  of the commodity must be conspicuously declared
  in the advertisement alongwith the price.
• A package containing a commodity, which is
  filled less than the prescribed capacity ofsuch
  package cannot be sold or distributed except
  where it is proved that the package isso filled
  with a view to
• giving protection to the contents of the package
  or
• meeting the requirements of machines used for
  enclosing the contents of such packages.

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• The Central Government may, by rules, specify
  reasonable variations in the net contents
• of the commodity in a package as may be caused by
  the method of packing or the
• ordinary exposure which may be undergone by the
  commodity after it has been
• introduced in the market place.
• This very comprehensive and far-reaching Act has
  put an end to the state of near anarchyin the
  trading of packaged goods. The clearly specified
  requirements in the Act have
• also provided a challenge to packaging
  development experts and label copy specialists
• who have to include statutory and promotional
  copy in the limited space available on
• labels and on packages themselves. However
  irksome they may appear, the provisions
• of this Act are welcome because they offer to the
  consumer a measure of protection
• which is not so apparent in many other legal
  requirements.

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Label Declarations

• Label Declarations
• In the SWMA Rules, the declaration to be made on
  every retail package has been detailed.
• The declarations are to be made with respect to
  the following
• The name and address of the manufacturer or where
  the manufacturer is not the packer, the name and
  address of the manufacturer and packer.
• The common or generic names of the commodity
  contained in the package.
• The net quantity in terms of the standard unit of
  weight or measure, of the commodity contained in
  the package or where the commodity is packed or
  sold by number, the number of commodity contained
  in the package.
• The month and year in which the commodity is
  manufactured or pre-packed. (Provided that for
  packages containing food articles, the provisions
  of the Prevention of Food Adulteration Act (PFA),
  1954 (37 of 1954) and the rules made thereunder
  shall apply).
• The retail price of the package.
• The retail sale price of the package.

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• Where there is undue proliferation of weight,
  measure or number in which any commodity is being
  sold and such undue proliferation impairs, in the
  opinion of the Government, the reasonable
  ability of the consumers to make a comparative
  assessment of the prices after considering the
  net quantity or number of such commodity, the
  Government may prescribe standard quantities or
  numbers for any commodity.

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• Universal boxes and packaging material can be
  used for the product basically for
  multi-locational companies
• Alternate materials can be used
• Execessive packaging to be avoided
• Use pre printed boxes/ wrappers It can save cost
  on printing
• Automation on packing machines can also help
  reducing packaging cost
• Packaging cost  have substantial  contribution on
  product costing above mentioned  steps could
  reduce cost of packaging

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Social Aspect Of Packaging
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Green Packaging

• What is Green Packaging?
• Green packaging is not just about reducing the
  amount of packaging but takes package design,
  processing, disposal conditions and the entire
  product lifecycle into consideration. Some of
  characteristics of sustainable packaging include
• Minimizing the amount of packaging used (weight
  and volume)
• Minimizing the energy used for production and
  transportation of goods
• Using packaging that can be reused again, such as
  bottles and refillable ink cartridges
• Using recycled and recyclable materials
• Using biodegradable materials

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Costs minimization

• Providing protection from mechanical damage
• Increasing shelf life of product
• Easy handling of items during transportation
• Advertisement and messages from Manufactures
• Legal declarations on packs for consumers Read
  more http//www.articlesbase.com/business-ideas-a
  rticles/packaging-cost-reduction-ideas-1816930.htm
  lixzz14xUPh17G

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• Following steps can results in savings
• Alter dimensions of the primary /secondary
  packaging as per the product
• Change the product dimensions as per the
  secondary packaging which would result in better
  handling and optimum use during stacking and
  loading an container
• Thickness of the material used in packaging can
  be reduced with trials on breakages can be done
  and items are approved thus the tested material
  are safe during transit .
• Preformed boxes /cartons can be used rather than
  employing labor to prepare in house