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Packaging:
Packaging means wrapping of goods before they are transported or
stored or delivered to a consumer. On the other hand, packaging is the sub-
division of the packaging function of marketing. Packaging has been defined as
“an activities which is concerned with protection, economy, convenience and
promotional consideration. Many marketers have called packaging as fifth P,
along with Ps i.e price, product, place and promotion. Thus, packaging is one
among the activities of designing and producing the container or wrapper for a
product. The wrapper or the container is called package.
Thus, packaging brings out salient aspect of packaging. These are:
a. It has help in the physical handling
b. storing and transportation and sale of the products packaged.
c. Packaging as a function consists of two distinct elements,
(1) the positive aspects, viz; the science and technology
related to package design, selection of packaging materials
etc and
(2) the behavioural aspects viz, the art of product design
which is associated with consumer motivation research,
buying research, etc.
Function of Packaging:
1) Protection
This is the one which is oldest and most basic. The primary function is to
protect the products from the environmental and physical hazard to which
the product can be exposed to, in transit from the manufacturer’s plant to
the retailer’s shelve and while on display on the shelves. Following is the
universal packaging:
Breakage/damage due to rough mechanical or manual handling
during transportation
Extremes of climate condition which can lead to melting, freezing
Contamination, either bacterial or non-bacterial, such as by dirt or
chemical elements.
Absorption of moisture or odours of foreign elements.
Loss of liquid or vapour
Pilferage during transit or storage.
2) Appeal
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The package is increasingly being used as a marketing tool, especially in
certain types of consumer product such as perfumes or several other gift
articles etc.
In case of consumer products, package serves as a silent salesman. This is
true irrespective of the whether the product is a luxury, semi-luxury or an
ordinary everyday product. The following characteristics have been identified
to help a package perform the self-selling task:
The package must attract attention
The package must tell the product story
The package must build confidence
The package must look clean and hygienic.
3) Perform
This is the third function of a package. It must be able to perform the
task for which it is designed. This aspect becomes crucial in certain types
of packaging. For example, an aerosol spray is not only a package but
also an engineering device. If the package does not function, the product
itself becomes totally useless.
4) Convenience:
The package must be designed in a way which is convenient to use.
Convenient not only to the end-users but also to the distribution
channels members, such as wholesaler and retailers. The specific
attributes they would seek in a package in this context are:
The package must be convenient to stock
The package must be convenient to display
The master package/cartons are east to dispose of.
5) Cost-effective:
The package finally must be cost-effective. Package cost as a percentage
of product cost varies dramatically from one industry to another, from
less than one percent in engineering industry to more than 10 percent in
the cosmetic industry. It is important to appreciate that while analyzing
packaging costs, it is not enough to consider only the costs of package.
This is only one, though the most important element of the total cost
associated with packaging. Cost in this chain consists of:
Package cost incurred in inward delivery to the factory when the
product is purchased from outside.
Storage and handling costs of the empty package
Filling costs, including quality control and handling of filled package.
Storage cost
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Transportation cost
Loss due to breakage/spoilage/spillage of the product.
Labelling
Labelling is a part of the product, which carries verbal information about the
product or the seller. It may be a part of a package, or it may be a tag attached
directly to the product. Label may be a small slip or a printed statement. The
producer gives necessary information to the consumers through the label. The
act of attaching or tagging the label is known as labelling. The labels are of
three types:
a) A brand Label: it is simply popularising the brand name of the product. It
gives only the brand names. For example, clothing label and soap labels
like those on Lux, Dove, Olay and others.
b) A Grade Label: it identifies and emphasis the quality standard or grade
as A,B,C or 1,2,3 etc. in other words, it identify the quality. For example,
the USHA is a brand manufacture of various fan qualities such as deluxe,
continental, and prime.
c) A Descriptive Label: it gives written or illustrative objective information
about the use, care, performance and other features of the product. It is
descriptive which shows manufacturing address, composition,
nutritional value and other detail about the product.
Functions of Labelling
The significant functions of product labels can be mentioned below:
i. Product Identification
The primary function of labelling is to make products more identifiable. It
enables customers to clearly know what particular product they are buying by
rightly adding product information. As such customers do not confuse between
substitute products.
ii. Grading
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Labelling helps to categorize different products in different grades. Simply, the
product can be graded as A grade, B grade, and C, or D by one could stand
against the other products in quality and customers can also know what level
of quality products they are buying.
iii. Consumer Protection
Labelling helps customers to get informed about accurate information about
the products before making a purchasing decision. A good product label
protects customers from any deception or fraud from the sellers. If the seller
attaches anything other than the manufacturer’s label the customer can file
against him if he had been involved in the deception activities.
iv. Legality Fulfilments
An unforgettable function of labelling is that it makes firms free from legal
obligations. Product labelling is compulsory in every nation. Here, the company
may include legal information such as product quality grade, quality
certifications, allergy information, statutory warning (e.g. smoking is injurious
to health), etc.
v. Enhance Marketing Programs
Product labelling also enhances marketing programs of the firm like branding
and packaging. As an important element of marketing, it makes more
identifiable the product in the market and promotes different sales
promotional tools by easing customers’ understanding of products. An
effective product label may attract more potential customers and makes more
sales for the firm.
