In this article we will discuss about:- 1. Meaning and Definitions of Packaging 2. Characteristics of Packaging 3. Need 4. Objectives 5. Functions 6. Advantages 7. Policies and Strategies 8. International Marketing and Packaging 9. Indian Exporter and Packaging 10. Common Packaging Used in International Trade.
Contents:
- Meaning and Definitions of Packaging
- Characteristics of Packaging
- Need of Packaging
- Objectives of Packaging
- Functions of Packaging
- Advantages of Packaging
- Policies and Strategies of Packaging
- International Marketing and Packaging
- Indian Exporter and Packaging
- Common Packaging Used in International Trade
1. Meaning and Definitions of Packaging:
Meaning:
In general sense packaging means wrapping of goods for the purposes of protection and convenient handling. Packaging of the product is becoming more and more important in marketing these days. An attractive packaging of a product makes it more popular among its consumers. A consumer always prefers to buy a product offered in an attractive, convenient and durable packaging. A good packaging is the representation of the creative skill of the designer and marketing knowledge of the top executives of the enterprise.
Definitions:
Some principal definitions of packaging are as under:
According to William J. Stanton, “Packaging may be defined as the general group of activities in product planning which is value designing and producing the container or wrapper for a product.”
According to Dr. R.S. Davar, “Packaging may be defined as the part and/or science concerned with the development and use of materials, methods and equipments for applying a product to a container or vice-versa designed to protect the product throughout the various stages of distribution.”
According to Mason and Rath, “Packaging is the case of containers and wrapping materials plus decoration and labelling to protect the product, to help promote its sales, and to make it convenient for the customer to use the product.”
On the basis of analytical study of above definitions, it can be concluded that packaging of a product is an art in which the container or wrapping material is used for the safe, easy and convenient distribution and consumption of a product. Packaging is meant for keeping the product safe and in good condition from the time of production till the time of consumption; for easy, safe and convenient distribution of products; for attracting maximum consumers; and for making a product different from the product of the other manufacturers.
2. Characteristics of Packaging:
Following are the main characteristics of packaging:
1. Packaging is both an art and science.
2. Packing is that group of planning activities which relate to packing material (containers and wrappers), their manufacture, designing and packing.
3. Packaging and packing differ in the sense that packing implies putting products in containers and wrappers while packaging includes their manufacturing also.
4. Activities of labelling and branding are automatically included under packaging.
5. Main objective of packaging is to deliver the product safely at the different stages and to provide the consumers facilities of their usage and assurance for their conservation.
6. It introduces the customer with the product and it enhances the image of the product.
3. Need of Packaging:
The basic need of any package is to protect its contents in transit, in storage and in use. Kind or method of packaging depends largely on the nature of the contents in terms of their value, physical composition and durability, the length of the distribution channel, the amount of handling which the container will receive and variations in climatic conditions which may be encountered between the point of manufacture and sales. Liquid products require containers made of glass or similar materials. For handling fragile articles wooden containers are used.
Packages are mainly of two types:
1. Industrial Package:
The main object of this type of packing is safety of the product. Thus, the probability of wastage and loss can be reduced to minimum. Simultaneously, it is also ensured that the product could be moved from one place to another easily. Such packaging is not used as to increase the intrinsic value of the product.
2. Consumer Package:
Consumer packaging is that kind of packaging which is used for delivering the goods to consumer. Materials used for this purpose are bottle of glass or plastic, iron box, polythene bags etc. Packaging must attract the customers.
4. Objectives of Packaging:
1. Attraction:
As far as possible, the package must possess attraction value, so that it may attract customers towards the products concerned.
2. Protection:
The second objective of packaging is to provide safety to the product. In other words, the package must protect the contents of the product until it is consumed. Package keeps the product fresh and clean. It protects the product from adverse effects of weather, temperature, dampness, insects, contamination, breakage, evaporation, leakage etc. It preserves the flavour and colour of the product. It also prevents theft and pilferage.
3. Convenience:
The consumers as well as the middlemen want packages that are easy to carry, use and dispose of. A good package facilitates easy transportation, storage, display and usage. Pouch packing is very popular nowadays due to convenience.
4. Economy:
The next important objective of packaging is economy. Here economy means economic use of the product. The consumer can extract only the quantity to be used at a time and thus, wastage can be avoided.
5. Sales promotion:
The objective of packaging is to promote the sale of the product. Whatever is written on the packing acts as advertisement and sales promotion?
6. Other Objectives:
Other objectives of packaging are as under:
(i) It improves the image of product and thus increases the profits.
(ii) It maintains the utility of package even after the product packed is consumed.
(iii) Owing to date of manufacturing and the expiry printed on the packing, the fresh or outdated products can be identified.
5. Functions of Packaging:
The main functions of packaging are as follows:
1. Protection:
This is the fundamental function of packaging. The product demands protection until it is used or consumed. Packaging provides protection from various types of damages such as damage by mechanical handling, product loss due to pilferage, contamination by dirt or dust, moisture gain or loss, chemical change etc.
2. Convenience:
Convenience in packaging is not simply a matter of customer service. Middlemen such as wholesalers, retailers, transporters and warehouse keepers demand convenience because properly packed goods require less space. Modern packaging facilitates easy handling and movement during the process of distribution.
3. Advertising:
Package is an important marketing tool particularly for consumer products such as cosmetics, chocolates, toffees and gift articles. A package performs the self-selling tasks—attract attention; tell the product features and usage; and build confidence of the product usefulness for the purpose.
4. Identification:
Packages differentiate similar products. Packaging and labelling are inseparable and are closely related to branding. Package has more significance, when the product cannot be seen by the buyer—packed milk, fruit juice etc. Buyers depend on the package label in understanding the product in the package.
5. Product Attractiveness:
The size and shape of the package, its colour, printed matter on it etc. must make the package attractive to look at. The psychological feeling is that a good package contains good quality product in it. Attractiveness is a major consideration in modern packaging. A pictorial label on the package plays a role of silent salesmen.
6. Effective Sales Tool:
A good package stimulates sales. A well-designed and attractive package invites customers. As is the product, so is the package. Many people think that a good package, taller in size, contains more quantity. Women like round or curved shape of packages. Attractive and innovated packaging has value, as many people buy the products only for the sake of containers.
7. Innovational Opportunities:
A good package is helpful in not only increasing the demand of the product but also in making the brand of the product popular. Innovation of the product gets a boost because every producer wants to attract more and more new consumers to his products and for the achievement of this purpose, he presents his products in new packages. Thus, a good package provides innovational opportunities to the producer.
8. Profit Possibilities:
Possibilities of earning more are increased if the packaging of a product is good. High prices can be realised for products that have a superior packaging as they attract the customers’ attention and this increases the sales.
6. Advantages of Packaging:
The advantages of packaging can be divided under three headings:
1. Advantages to Producers:
(i) Attraction:
Attractive and effective packaging enhances the attractiveness of the product.
(ii) Safety:
Packaging provides safety to the product. This not only saves the product but also prolongs its life.
(iii) Sales Promotion:
Attractive packaging makes advertisement and sales promotion convenient. Due to which the sales increase manifold.
(iv) Check on Adulteration:
Packaging reduces the possibility of adulteration in product.
(v) Convenient in Storage:
Packaging facilitates the storage of the product.
(vi) Enhancement of Goodwill:
Attractive and strong packaging enhances the goodwill of the firm.
2. Advantages to Middlemen:
(i) Easy Identification:
Packaging helps in the identification of the product.
(ii) Convenient in Storing:
Packaging provides facility in transporting product from one place to another.
(iii) Convenient in Storing:
Packaging also facilitates the storage of the product.
(iv) Convenient in Showing and Selling:
Packaging facilitates in showing and selling of the product.
3. Advantages to Consumers:
(i) Convenience in Carrying:
Packaging helps the consumers to take the product to their homes with ease.
(ii) Less Chances of Adulteration:
Due to packaging, the consumers get the original product. Thus the possibilities of adulteration become less.
(iii) Advice:
The printed literature along with packaging provides proper advice to the consumers.
(iv) Convenient in Identification:
Attractive packaging makes it convenient for the consumers to identify the products.
7. Policies and Strategies of Packaging:
Packaging is very important in international marketing. Some of the important packaging policies and strategies adopted by companies are as under.
1. Package Changing Policy:
It is an important question to consider whether change is to be made or not in packing manner matching with time and further if it is to be done then at what time? Generally, manufacturers do not want to change the package rather want to continue with the same package for quite a long period.
But under the following conditions the package may require change:
(i) When sales are continuously falling.
(ii) If expansion of market is needed.
(iii) If the consumer or middlemen want a change in package.
(iv) If new product is to be introduced in the market.
(v) Due to technical problem, the engineering department may face problem in continuing the existing package.
(vi) If the competitors bring new form of package.
(vii) If market conditions are changed.
(viii) If there is a tradition of changing the package from time to time.
2. Packaging Product Line:
A company has to decide whether it should use the same packaging for its same products or if the products are different, different packaging should be used. Under family packaging, the same packaging is used for all its products or some similar characteristics or indicators are used on all its packages.
The main advantage occurring from this type of packaging is that even new products get the benefit of reputation which its old products enjoyed so far. It is also necessary that those products for whom family packaging method is used, should be of the same type from the point of view of their use.
The main disadvantage of this type of packaging is that middlemen start thinking that they have stored the product of a typical brand. Even customers start thinking that a particular middleman stores the product of a specified company only. So they can turn themselves towards other products.
3. Re-Use Packaging:
Re-use packaging strategy is one wherein the manufacturers offer their products in such packages which can be re-used after the consumption of the contents. ‘Horlicks’ food-drink was offered in a glass jar which might be used as a tumbler. Similarly biscuits, wool balls etc. are presented in attractive tin-tops which are reusable. Re-use packaging stimulates repeat purchases as it offers the added benefit for the same price. In order to continue this type of consumer interest, packaging should be changed in shapes, sizes, designs, and the like.
4. Multiple Packaging:
Several units together are packed in this type of packaging. For example, shaving kit, which comprises shaving brush, shaving cream, razor, scissors, nail cutter etc.
This helps in selling new product, which otherwise, the consumer may hesitate to purchase. But, the consumer who is interested only in one or two items may not consider buying it, if he is compelled to purchase the whole package.
8. International Marketing and Packaging:
In international marketing packaging plays a very vital role. It helps to reach the product in good condition and in an attractive way, to the ultimate buyer or consumer. Modern technology has brought up new dimensions to the packaging industry. Through research and development, testing and improvement the packaging industry has reached its peak by providing safety, convenience and environmental friendly packaging to the products in home and international markets.
In international markets for packing of the product various packages such as paper boxes, wooden boxes, gelatine papers, brown papers, polythene bags, glass bottles, plastic strings, threads etc. are used. Nowadays airtight aluminium foils, waterproof paper and laminated papers, glasswool, thermocol sheets are also used as packing materials.
The materials used for packages may be of very good quality, but if the packing of the product is not proper there is no safety of the product. It is for this reason that the work of packing is considered to be very important in international marketing.
The following points must be considered in packaging for international markets:
1. Different Packaging:
Main aims of packing are to give more facility to the customer and to preserve product qualities. Also theft and adulteration are to be guarded against. Transportation and stocking goods should be easy. In international trade while packing its size, container, weather, colour of packing, language in use, design, pictures etc. are taken into account.
When sale promotion is to be made in international markets attractive packing, pictures, design, language of label that customers may understand are given attention. People of developed countries know more about quality. So they insist on air-tight packing. They also prefer disposable containers.
Educated people like printed packages. There is a lot of difference in people of developed and developing countries from points of view of education, standard of living, income etc. In developing countries many people live below poverty line. They have a liking for containers that can be used again. Due to illiteracy attractive colours, pictures and packings with trademark are preferred.
2. Packing with the Viewpoint of Importer and Exporter:
When an importer has specified special instructions about packing they should be followed. If the exporter fails to do so the importer has a right to refuse delivery. Thus, improper packing spoil relations between them.
3. Packing with Viewpoint of Insurance Company:
If packing is not of international standards or not according to importers’ instructions, the insurance company may reject claim in case of damage. Thus, parties have to suffer loss.
4. Packing with the Viewpoint of Shipping Company:
Generally shipping companies do not accept delivery of goods packed below international standards. Even if they accept goods they make endorsement “Unsatisfactory Packing” on Bill of lading. Thus, “Unclean bill of lading” is given by them.
5. Others:
Packing is more important from the point of view of marketing goods abroad. To survive in world market competition the manufacturer must pack goods in economic but strong and attractive containers. These must be such as to be easily transportable, can withstand sea storms, salty and damp weather, extremes of heat and coldness. Such packing may make a product popular in international market.
Points to be Considered by an Exporter Regarding Packaging:
1. Packaging should be done according to nature, size and shape, weight of the consignment, distance of travel etc.
2. Packaging should be done in accordance with the instructions by the importer specifically informed or made in the contract between exporter and importer.
3. Packaging should be suitable to the product and which costs less freight charges.
4. Packaging should be very carefully done, so that nothing happens to the consignment.
5. Packaging should be very strong. Durable and cushioning material should be used to protect and preserve the product and safeguard against rubbing, bumping etc. and various hazards due to frequent handling at various places.
6. Packaging should be done according to physical and chemical factors of the product. For example, some products are highly inflammable, poisonous and some may be solid, some liquid.
9. Indian Exporter and Packaging:
If Indian exporters want to preserve industrialisation and want to progress then they have to maintain international standard in packing. If international standards are not maintained, it will be considered as defective and make it difficult to stay in a foreign market. Indian exporters who desire to stay in international market have to be careful about special packing. To compete with developed nations they have to pay attention on quality and packing of the product.
To gain export markets, Indian industries have started the use of rank wrapper. For a variety of products use of stretch wrapper is gaining ground. For such packing machinery has to be imported. This technology is likely to be started in India soon. Indian industries have started use of following materials in packaging to capture the export markets.
1. Lined Carton System:
For powder and granules lined cartons are used. Now they are also used for food oils. Such packings are more popular in western countries. In boxes with coatings butter-milk, sugarcane juice etc. can be despatched. India is making progress in this direction too.
2. Moulded Plastic Cup:
Such sealed cups are utilised now. Food processing units use them for packing jam. This packing has pushed up exports of many such products.
3. Nylon Reinforced Craft Paper:
Industries who want to avoid use of wooden boxes depend on corrugated paper boxes. But for heavy articles, its use is not possible. Indian craft paper is not so strong. Hence, for about a decade efforts are on to make them stronger. Jute is used more. Cotton threads and lining are used to make boxes stronger.
4. New Polythene Foam:
For complex use and for delicate items requiring soft and flexible packing, new polythene foam has been developed in India. It has proved to be strong for fragile goods. For electronic appliances, crockery, toys etc., this has become useful.
5. Gummed Paper Tapes:
Variety of gummed paper tapes have been developed to increase strength of paper packing. Coal tar is used to make them waterproof. In recent times, gummed, strong polythene has become available. For transportation its elasticity offers safety.
6. Cushion Pad:
In recent times corrugated boxes with cushion pad which can be easily gathered have been produced. These are needed for electrical items.
For exporting plastic cardboards, drums, coated boxes, sponge-cushion, U-foam, leather case are used frequently. Some products require refrigerated containers, water proof, plastic films etc.
The Indian Institute of Packaging has specified certain packing standards. One has also to observe standards fixed by Export Inspection Council under Export Quality Control and Inspection Act and by Bureau of Indian Standards.
The problem of packing in international marketing assumes importance from many angles. In recent times problems of packing are considered keeping in view specialities and geographical situation of the countries.
10. Common Packaging Used in International Trade:
1. Vegetables and Fruits:
Vegetables and fruits are packed in wooden cases, cardboard boxes and even bamboo baskets with sack used for inner surface. For example mangoes are packed in wooden cases, whereas grapes are packed in cardboard boxes.
2. Flowers:
Flowers are packed in such a way that air flows freely into the package to keep them fresh. Since these are perishable products, they are to be kept away from heat and light.
3. Marine Products:
Marine products, fish etc. are to be packed in different way than general goods. The common way to keep them fresh is with thermocol box where sliced ice can be stored along with the product.
4. Engineering Goods:
Engineering goods are generally packed in wooden cases. The boxes should be made of good quality softwood without knots for mailing. Heavy machinery may be knocked down and packed separately depending on the size, shape and weight. Proper cushioning material shall be used to safeguard against rubbing, bumping etc. Proper chemical treatment should be given to prevent fungus growth, insect infestation etc.
5. Garments/Textiles:
For garment/textile common practice is carton packaging. It contains an inner lining with polyethylene film or waterproof paper, a corrugated box with external strapping with non-metallic material.
6. Tea:
For tea packaging commonly jute bags, corrugated cardboard boxes are used. These boxes are packed again in wooden containers to keep them fresh against moisture and gases. For retail, paper with thin aluminum foil is used for inner surface for small packs and are packed again in corrugated boxes.
7. Drugs/Pharmaceuticals:
Packaging for both solid and liquid form of drugs and pharmaceuticals are done in bottles with seal, strips, pads etc. to protect from light, heat, moisture etc. The capsules and tablets are packed in blister packs, where, plastic with wrapper made of aluminum sheets are used.