Importance of Product Packaging in Marketing

by Kristie Lorette, Demand Media

How product packaging plays a role in marketing and purchase decisions.

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Whether youre getting ready to create packaging for a product youre selling or youre considering changing the packaging of an
existing product, you may be wondering if the appearance of a products package is important. Many product providers may think
that the product and its performance is more important than what the packaging looks like, but the product packaging can play a
role in the success or failure of the sales of the product.

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Function
The purpose of product packaging is to protect the product from damage. Product packaging not only protects the product during
transit from the manufacturer to the retailer, but it also prevents damage while the product sits on retail shelves. Most products
have some form of packaging. For example, soups must have a container and package while apples may have packaging for
transport but not to sell the product from the produce department of the local grocery store.

Attraction
How a product is packaged may be what attracts the consumer to take a look on the product as is sits on store shelves. For this
reason, many companies conduct extensive research on color schemes, designs and types of product packaging that is the most
appealing to its intended consumer.

Related Reading: Perfume Packaging Ideas

Promotion
Packaging also plays an important role for portraying information about the product. Outside packaging may contain directions on
how to use the product or make the product.

Facilitates Purchase Decision

Packaging may also contain ingredients and nutritional information about the product. This information can help to sell the
product because it allows potential customers to obtain the necessary information they need to make a purchase decision.
Information contained on a package may propel the reader to buy the product without ever having to speak to a store clerk.

Differentiation
Packaging can also differentiate one brand of product from another brand. Because the product packaging can contain company
names, logos and the color scheme of the company, it helps consumers to identify the product as it sits among the competitions
products on store shelves. For example, as a shopper walks through the coffee aisle of the local grocery store, the bright orange,
pink and white packaging of the Dunkin Donuts coffee brand may be easily recognizable for the consumer to grab on his way by
the coffee shelf. The shopper may identify with the company brand, which propels them to buy the product. If the product
packaging changes, it may alter the brand perception of the company, which doesnt mean that the consumer would not still
purchase the product, but it may delay the purchase until the person is able to identify the product according to its new packaging.
Important functions of packaging are given below:

(i) Product Identification:

Packaging serves as an identification of the product. A product is packed in special
sized, coloured and shaped container for keeping its difference from the products of
competitors. For example, the yellow and black coloured pack of KODAK ROLL tells
itself of its producer.

Image Courtesy : dcgwest.com/services/portfolio/DCG_Packaging_LR-12.jpg

(ii) Product Protection:

The main function of packaging is to provide protection to the product from dirt, insects,
dampness and breakage. For example, the products like biscuit, jam, chips, etc., need
to be protected from environmental contact. That is why they are tightly packed.

(iii) Convenience:
Packaging provides convenience in the carriage of the product from one place to
another, in stocking and in consuming. For example, the new pet bottles of COKE
makes the carriage and stocking easier. Similarly, the pack of FROOTI provides
convenience in its consumption.

(iv) Product Promotion:

Packaging simplifies the work of sales promotion. Packing material in the house
reminds the consumers constantly about the product. In this way, the packaging
performs the role of a passive salesman. Consequently, it increases the sales.

Packaging and advertising were virtually unknown. Today packaging is a massive, lucrative industry and often
it is the way the packaging looks that persuades the shopper to buy the product inside it.

THERE ARE SIX MAIN REASONS WHY PACKAGING DEVELOPED AND IS IN USE TODAY

1. To protect a product from damage or contamination by

micro-organisms and air, moisture and toxins.
The product must be protected against being dropped,
crushed, and the vibration it suffers during transport. Delicate
products such as fruits need to be protected by a rigid package
such as a laminated container.
The product most also be protected against the climate
including high temperatures, humidity, light and gases in the
air.
It must also be protected against micro-organisms, chemicals,
soil and insects.
2. To keep the product together, to contain it (i.e. So that it
does not spill).
Some shapes cannot be easily packaged, for example, certain
vegetables. However, there are methods of getting around this
problem. Suppliers of canned vegetables such as carrots have
developed a particular type of plant that yields carrots that are
straight and smaller than the normal variety. These fit into
cans. Some products such as fruit juices and sausages need to
be contained in packages that hold them together and are
sealed to prevent spillage and loss.

3. To identify the product.

Packaging is the main way products are advertised and
identified. To the manufacturer the package clearly identifies
the product inside and it is usually the package that the
customer recognises when shopping.
Advertising is very important when a manufacturer launches a
new or existing product. The package, through its colour
scheme or logo, is what is normally identified by the
customer.
The package will also contain important information including
ingredients and sell by date.

4. Protection during Transport and Ease of Transport.

A package should be designed to make it easy to transport,
move and lift. A regular shaped package (such as a cuboid)
can be stacked without too much space between each package
being wasted. This means that more packages can be
transported in a container of a lorry. Unusually shaped
packages can lead to space being wasted and this can be costly
if thousands of the same package are been transported.

5. Stacking and Storage.

In supermarkets and shops it must be possible to stack
packages so that space is not wasted on the shelves. Lost
space on shelves is looked up on a lost opportunity to sell to a
customer. Also, the package must be designed in such a way
that all the important information can be seen by a potential
buyer, especially the product name. The next time you visit
the supermarket look carefully at the shape of the packages.
They are usually the same rectangular / cuboid shape. It is the
selection of colours and shades that determine whether the
product inside is regarded as a quality, sophisticated or cheap
item. Often packages are stacked on top and alongside each
other to reduce wasted space. The shape and form of the
package determines how efficiently they can be stacked or
stored.
 6. Printed Information.
Information that is useful to consumers and companies such as
Supermarkets, is printed on packaging. This includes,
ingredients, sell by dates, price, special offers, manufacturers
address, contact information, product title, barcode and more.

The bar code is extremely useful to the shop selling the

product. When the barcode is scanned, the computer system
automatically determines if the product needs reordering.
Also, the price of the product appears at the till.

Why Is Quality Important for a Business?

by Ian Linton, Demand Media

Quality contributes to customer satisfaction and loyalty.

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Managing quality is crucial for small businesses. Quality products help to maintain customer satisfaction and loyalty and reduce
the risk and cost of replacing faulty goods. Companies can build a reputation for quality by gaining accreditation with a
recognized quality standard, such as ISO 9001, published by the International Organization for Standardization.

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Customer Expectations
Your customers expect you to deliver quality products. If you do not, they will quickly look for alternatives. Quality is critical to
satisfying your customers and retaining their loyalty so they continue to buy from you in the future. Quality products make an
important contribution to long-term revenue and profitability. They also enable you to charge and maintain higher prices.

Reputation
Quality influences your companys reputation. The growing importance of social media means that customers and prospects can
easily share both favorable opinions and criticism of your product quality on forums, product review sites and social networking
sites, such as Facebook and Twitter. A strong reputation for quality can be an important differentiator in markets that are very
competitive. Poor quality or a product failure that results in a product recall campaign can create negative publicity and damage
your reputation.

Related Reading: Why Is It Important for Businesses to Practice Quality Control?

Meeting Standards
Accreditation to a recognized quality standard may be essential for dealing with certain customers or complying with legislation.
Public sector companies, for example, may insist that their suppliers achieve accreditation with quality standards. If you sell
products in regulated markets, such as health care, food or electrical goods, you must be able to comply with health and safety
standards designed to protect consumers. Accredited quality control systems play a crucial role in complying with those standards.
Accreditation can also help you win new customers or enter new markets by giving prospects independent confirmation of your
companys ability to supply quality products.

Costs
Poor quality increases costs. If you do not have an effective quality control system in place, you may incur the cost of analyzing
nonconforming goods or services to determine the root causes and retesting products after reworking them. In some cases, you
may have to scrap defective products and incur additional production costs to replace them. If defective products reach customers,
you will have to pay for returns and replacements and, in serious cases, you could incur legal costs for failure to comply with
customer or industry standards