These days most of the items we buy come in attractive packages. A pack of cookies, instant noodles, detergent powder and so on. What makes the product packaging so special? Why would a company invest its valuable resources to make packaging better? We will learn all about them in this article.
We know the 4Ps of marketing as Product, Price Place and Promotion. The importance of packaging is such that it is considered as the 5th pillar of the marketing mix.
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What is packaging
The terms ‘Packaging’ and ‘Packing’ are often being used interchangeably.
Traditionally ‘Packaging’ implies, the unit of retail or consumer container and ‘Packing’ to transportation of the same, via containers.
Very importantly, consumer packaging has marketing connotations while those containers are more important from a logistics perspective.
Good packaging is the representation of the designer’s creative skill and the product per se.
Marketing and sales knowledge is generally, a good to have attribute, of the manufacturer’s team.
The development of attractive packaging is the sum total of the talents of the designer, the researcher, and the engineers, from a technical point of view. And from a brand’s perspective, the advertising department, the marketing experts of the said field, the sales department and the top management.
Definition of packaging
Prof. Kotler defines packaging as “all the activities of designing and producing the container for a product.” 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 and keep it clean.
“Packaging is the container for a product – encompassing the physical appearance of the container and including the design, color, shape, labeling and materials used” (Arens, 1996).
William J. Staunton has defined the term as, “Packaging may be defined as the general group of activities in product planning which involves designing and producing the container or wrapper for a product”. Thus packaging is a brand activity that requires careful consideration by the management. It includes activities for the development of containers or wrappers.
Packaging as a marketing tool
Effective packaging can actually help a company in ways more than one. It attracts consumers to its product. It also can be a handy tool that makes the product stand above the competition. There are a lot of brands vying for the customers to buy them. If observed closely, good packaging can enhance the perceived value of a product.
There are some effective techniques one can use to ensure that the product package is a great marketing tool for your product.
Let us take a look at some elements that a brand can incorporate to make the product into a complete package, a package worth considering.
Crystal clear Brand and Product Names
It is absolutely crucial that it grabs attention. So that the packaging clearly and aptly mentions the brand name.
It is pretty obvious that a customer will not buy a product if they are unaware of its ownership. The product they are buying should resonate with the brand and its image. Displaying the brand name with the product name is a good branding strategy which reinforces decision making.
Targeted design
The company should be absolutely clear with respect to its target customer. They need to be clear on whom the packaging is designed to attract and why.
For example, if the target audience is youth, then the design can be trendy and modern.
However, if my target customers are senior citizens, then the design should be clear, bold and specific.
Designing the packaging for the target audience is, of course, a complex task, but certain criteria can be followed.
Importance of packaging
Physical protection
The objects in the package should be protected from damage. So among many other factors, it may require protection from shock of mechanical or electrical nature, vibrations, electromagnetic interference, temperature or humidity.
Say, a package contains fragile items such as glass and crockery and if they are not packaged well with proper cushioning chances of getting damaged in transportation are very high.
A customer is not expected to receive a damaged item. Hence if the package contains exactly what he/she has ordered without a single scratch, the customer will be delighted with the service. A very positive signal indeed. If not then a dissatisfied customer.
Information transmission
Packages should be labeled well to communicate how to handle them. Transport, recycling, or disposal of the package or product need to be mentioned. Especially with pharmaceuticals, food, medical, and chemical products, there is certain information that is required by governments. Norms should be followed to the T.
On the other hand, in some packages, unique identifiers also are used for tracking and tracing purposes.
Marketing
The packaging and labels on them also work as a “bait“. It can be used by the marketing department to encourage potential buyers to purchase the product.
An attractive graphic design and physical design go a long way in attracting customers. Over time, they have constantly evolved. Appropriate communication and graphic design pertaining to brands are applied to the surface of the package. And in many cases, the point of sale display also plays a very crucial role in this.
Convenience
No one wants to carry items in their hands. Imagine carrying 10 raw eggs from a store to your home.
So, packages add convenience they are not a feature but a necessity that we have. Talk about distribution, handling, stacking, opening, and re-closing. Not to leave, display, sell, dispense, reuse, recycle, and ease of disposal.
Protection
Works as a barrier to keep them away from oxidation, water vapor, dust, etc. It is often required to be protected from these environmental factors.
A factor called permeation is very critical in package design.
Some packages contain desiccants a substance to sustain the state of dryness. In simple words, it wards off humidity.
Obviously, it helps extend the shelf life of such products.
A modified environment or controlled environment is maintained for some varieties of food items this will ensure that the contents remain fresh, clean and safe for consumption. Needless to say, it is intended to increase the shelf life of the product.
Security
Packaging can play an important role in reducing security risks.
Packages can be made with improved tamper resistance material to deter or prevent inadvertent human tampering.
They also can have a tamper-evident feature, this will help indicate that the package had been tampered with. Most importantly, packages should be designed to help in reducing the risk of pilferage.
Packaging Strategies
Brand awareness is an important factor from the marketing perspective.
So the packaging strategies will have a meaningful impact on brand awareness, and brand recognition.
More importantly expectations management. A luxury brand is expected to have luxury packaging. For example, expensive perfumes come in unique and elegant bottles.
The flow of information from the organization to the end-user. The package carries the brand’s image.
Components like branding, and packaging must align with marketing objectives. The messaging, value proposition and communication to accomplish the greater goals.
They are –
Value Proposition
From the marketing point of view, we have understood its primary purpose, is to highlight why a user would be interested and purchase a given product and not from the competitor?
This could be a simple task, like writing the description of what to expect inside.
This could enhance the emotional quotient. Eliminate confusion or conflict by communicating all about the product
For example, an informed consumer is interested in buying locally sourced food items.
Therefore, a smart marketing strategy for the brands is to focus on local production. And effectively, highlight relevant information in big letters on the package itself.
Brand Recognition
Another important purpose of packaging.
In marketing, it is essential to improve the recognition of the brand.
When we see a red can with cursive writing, most likely a person would almost immediately relate it to Coca-Cola.
Now, this is a real strategy in the play. So the company this way builds recognition, which can lead to brand loyalty.
Brand Awareness
Technically is a bit different from brand recognition.
To build brand awareness means an opportunity to be memorable.
Creating packaging that will grab the attention of a consumer is bound to increase that brand’s ability to convert the customer.
It all works both in this particular instance and also in later instances.
Packaging- a way to grab attention
A consumer, and his/her attention is a coveted asset for organizations.
Packaging is an excellent opportunity to accomplish the same.
Expectations
The key ingredient of effective marketing is to ensure a consumer gets what they expect. However, it is recommended that brands should not aim to meet the expectations but exceed them.
This is the most effective way to increase brand association. And also association with the consumer will be a positive one.
When we consider the organization, with respect to what consumers had expected, the organization should be proactive in meeting them.
The packaging does make the strategy work in tandem with the brand’s mission statement. Say a brand wants to be known as customer-centric. Mentioning small things like this package doesn’t come with batteries goes a really long way. This ensures a customer doesn’t “feel” cheated, they expected batteries but were not provided with them.
Similarly, a given accessory is not compatible with certain types of phones.
Co-branding
Another effective and stimulating strategy within the packaging is co-branding. When organizations collaborate with another organization and benefit from each other’s brand recognition. This enhances trust with the customer and works for both the collaborating brands.
Nina Ricci and Ladurée’s partnership is an excellent example of this.
Symbols and Icons
As we all know, the packaging is a visual representation of the container of the product.
So, they can benefit from established and trustworthy markings (or certifications) of the product or of certain attributes.
For example, a 100% organic symbol on a box of cereal. What does this indicate?
To the user, it says that an external third party has verified and approved the production process of the cereal manufacturer.
Using these recognizable symbols and icons elevates trust between the brand and the consumer.
Product Labeling
Labels often serve to capture the attention of shoppers. They also provide useful information regarding the product.
Ingredients, manufacturing and expiry date, etc.
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How to package services?
Companies need to constantly monitor the services offered by their competitors. Based on the data-driven approach, like data from customer surveys, complaints, and suggestions, the management can determine the types of services to offer.
What kind of services to offer and what sort of price to be charged.
For example, consumers are very reluctant to purchase an electronic device such as a home theatre system, that can only be serviced by sending it to the factory.
Not only that, paying the courier service and a high repairing charge by the customer themselves is a recipe for failure.
The brand Maytag, however, has been very effective in selling its appliances. Even with service packages with a local repair. Although they offer a wide range of supportive services.
Examples of packaging in marketing
Nike Air
Product packaging design for Nike air. What an awesome way to project your favorite Nike Air.
This product favors the clients to identify the product’s specialty and demonstrates why the product is rather amazing!
Smirnoff Caipiroska
Comes in a clever peelable bottle, a subtle way to mention that the drink may be a bit fruity. Designed by JWT Brasil.
Conclusion
Packaging is an amalgamation of practicality and technology as well as it is an art to look after the products while distributing, storing and selling.
It also works as a visual stimulant. So much so that it is considered as 5th P of marketing. A brand not only should make better products but invariably focus on packaging them well to delight the customer once it reaches them.