Packaging Decisions

Packaging Decisions

Many products offered to the market have to be packaged. Some marketers have called packaging a fifth I', along with price, product, place and promotion. Most marketers, however, treat packaging as an element of product strategy.

packaging Packaging includes the activities of designing and producing the container or

The activities of designing and

wrapper for a product. Packaging performs a vital function for most products. It producing the container protects goods from being damaged before you buy them, helps keep, for example,

or wrapper for a foodstuffs hygienic and fresh, and is often necessary for labelling and information

product

reasons.

564 • Chapter J.3 Brands, Products, Packaging and Services

Although the primary function of the package was to contain and protect the product, in recent times, many factors have made packaging an important marketing tool. An increase in self­service means that packages must now

perform many sales tasks ­ from attracting attention, to describing the product, to making the sale. Companies are realizing the power of good packaging to ereate instant consumer recognition of the company or brand. For example, in an average supermarket, which stocks 15,000 to 17,000 items, the typical shopper passes by some 300 items per minute, and 53 per cent of all purchases are made on impulse, hi this highly competitive environment, the package may be the seller's last chance to influence buyers. Research shows that a sizeable chunk of buyers can be swayed at the last minute from buying their cat's favourite tin of tuna bites if their eye is caught by a well­designed, competitive brand, Manufacturers must use pack design ­ shape, graphics and texture ­ to project their brand values and differentiate them in an overcrowded market.

Innovative packaging can give a company an advantage over competitors, Perrier and Grolsch used creative packaging to differentiate the product and have enjoyed good market results, Coca­Cola and Jack Daniels whisky bottles are so distinctive and have such strong identity with their brands that the packaging d each product not only says it all, but also has become a classic. Equally, the first companies to put their fruit drinks in airtight foil, paper cartons (aseptic pack­ ages) and tamper­proof' packaging, and their toothpastes in pump dispensers, also attracted many new customers.

To counter own­label imitators, brand manufacturers use innovative pack­ aging to differentiate and protect their brands. For example, Nestle relaunched its market­leading peanut butter brand Sun­Pat with a new peanut­shaped jar and Hip­top lid to counteract own­label products. The company also obtained new trademark and design registrations which offered protection for its new

packaging.

Developing a good package for a new product requires making many deci­ sions. The first task is to establish the packaging concept. The packaging concepl

Individual Product Decisions • 585

states what the package should be or do for the product. Should the main func­ tions of the package be to offer product protection, introduce a new dispensing

method, communicate certain qualities about the product, the brand or the company, or something eise? Decisions, then, must be made on package design

that cover specific elements of the package, such as size, shape, materials, colour, text and brand mark. These various elements must work together to support the product's position and marketing strategy. The package must he consistent with the product's advertising, pricing and distribution.

After selecting and introducing the package, the company should check it regularly in the face of changing consumer preferences and advances in tech­ nology. In the past, a package design might last for 15 years before it needed changes. However, in today's rapidly changing environment, most companies must recheck their packaging every two or three years. 22

Keeping a package up to date usually requires only minor but regular changes ­ changes so subtle that they may go unnoticed by most consumers. But some packaging changes involve complex decisions, drastic action and high cost. Whether the changes are minor or major, marketers must weigh the costs of change against the risks, on the one hand, and, on the other, the impact on consumer perceptions of the value added by the new packaging and the extent of fulfilling marketing objectives. For example, in 1996 Pepsi spent $500 million on

revamping the Pepsi packaging ­ it changed the colour from red to blue ­ but survey results revealed that this had done little to arouse attention or dent rival Coca­Cola's supremacy. Only half of all fizzy­drink buyers had noticed the change and only 18 per cent who had noticed the change thought that it made the pack­

aging more attractive. 33 In making packaging decisions, the company also must

heed growing environmental concerns about packaging and make decisions that serve society's interests as well as immediate customer and company objectives. However, determining just what serves the best interests of consumers and society can sometimes be tricky (see Marketing Highlight 13.4).