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Packaging Decisions


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Title: Packaging Decisions

Packaging Decisions
  • Module- vii
  • By Srikanth Venkataswamy

Module VII Packaging Decisions
  • Importance of Packaging in Marketing
  • Packaging as an Art
  • Packaging Concept
  • Packaging and Product Differentiation
  • Science and technology of Packaging
  • Packing Notes and Packing Lists
  • Trends in Packaging Machinery
  • Functions of Packaging
  • Packaging Strategies
  • Legal Aspects of Packaging
  • Cost Effectiveness of Packaging
  • Social Aspects of Packaging

Importance of Packaging in Marketing
  • Packaging
  • Packaging is an important
    component of the total product personality .
  • The Package performance three essential roles
  • Giving protection to the product
  • Giving information about the product
  • Adding to its aesthetics and sales appeal

Importance of Packaging in Marketing
  • Traditionally, Packaging was intended to protect
    the product-
  • To prevent deterioration en-route.
  • To facilitate handling at various points of
  • In later Years, Packaging also became a major
    tool in the promotion of the product.
  • The material of package, the colour, the shape
    and the size of the package, its finish, the
    labeling on it, the possibility of reuse etc
  • can build in the total sale appeal of the

  • Marketers are providing Value addition to the
    products and greater benefits to the customer
    through the packaging route

What is Packaging?
  • Packaging is the enclosing of a physical object,
    typically a product that will be offered for
  • 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 ,keep
    it safe clean. 
  • Packaging is the outer wrapping of a product.

What is Packaging?
  • Kotler defines packaging as
  • "all the activities of designing and producing
    the container for a product."
  • Package is the process of making available the
    product in its intend form Of use from the
    producer to the consumer across different Levels
    of transfer. Prof Srikanth Venkataswamy

Packaging Functional Requirements (Functions of
  • 1. Protection and preservation 2. Containment
  • 3. Communication

Packaging Functional Requirements (Functions of
  • 1. Protection and preservation
  • A basic function of package is to protect and
    preserve the contents during transit from the
    manufacturer to the ultimate consumer.
  • It is the protection during transport and
  • From climatic effects (heat and cold, moisture,
    vapour, drying atmospheres) from hazardous
    substances and contaminants and from
  • Protection is required against transportation
    hazards spillage, dirt, ingress and egress of
    moisture, insect infection, contamination by
    foreign material, tampering pilferage etc.
  • A package should preserve the contents in
    'Factory Fresh' condition during the period of
    storage and transportation, ensuring protection
    from bacteriological attacks, chemical reaction

Packaging Functional Requirements (Functions of
  • 2. Containment
  • Most products must be contained before they can
    be moved from one place to another.
  • To function successfully, the package must
    contain the product. This containment function of
    packaging makes a huge contribution to protecting
    the environment.
  • A better packaging help to maintain the quality
    of the product and reach-ability of the product
    in the consumer's hand without spillages It gives
    better image to the organization.

Packaing Functional Requirements (Functions of
  • 3. Communication
  • A major function of packaging is the
    communication of the product.
  • A package must communicate what it sells. When
    international trade is involved and different
    languages are spoken, the use of unambiguous,
    readily understood symbols on the distribution
    package is essential.
  • It is the interest further that to get
    appropriate communication to the consumer about
    the product, how to use it and other utility
  • Packaging protects the interests of consumers.
    Information includes quantity price inventory
    levels lot number distribution routes size
    elapsed time since packaging colour and
    merchandising and premium data.

(No Transcript)
Packaging and Product Differentiation
What is Product Differentiation
  • What is Product Differentiation ?
  • The product differentiation definition states
    that it is the process by which a product is
    distinguished from others, so that it appeals
    more to the target audience.
  • Other than distinguishing the product from
    its competitors, this process should ensure the
    product is distinct from all other products the
    company offers.
  • Product differentiation gives the product or
    service an edge over rival products.
  • It highlights unique aspects of the products as
    and also generates value for the product in the
    eyes of the buyer, which should be any
    manufacturer's ultimate goal.
  • Ex product mix, Product Features Product
    awareness reputation, distribution channels,
    Packaging ,Advertising, services,timing etc
  • When the buyer perceives, a difference is when he
    will remember the product and buy it, thereby
    resulting in higher sales for the company.

  • Product differentiation can sometimes be done
    without modifying or altering the product or its
  • This can be done by adopting an attractive or
    unique packaging, or by opting for a unique
    advertising campaign which registers itself in
    minds of the customer.

Basic Differentiation
  • A) In Protecting the Product
  • Reduce costs due to breakage.
  • Protect the product in transit for example
    breakable or perishable items such as perfume,
    light bulbs or food.
  • Protect the product on the shelf from theft,
    damage or tampering (i.e., pharmaceuticals or
  • B) In Promoting the Product
  • Complement other promotional activities.
  • Communicate information core benefits, why to
    buy testimonials, Internet addresses and
    toll-free telephone numbers, for products like
    tools or software.
  • Display the product attach to display hardware
    or stand upright as with gloves or cell phones.

Value Differentiation
  • C) Provide Additional Value and Differentiation
  • To provide increased purchase justification.
  • Dispense the product ease of use or the size of
    recommended portions, as with spray paint, hair
    care products, etc.
  • Preserve the product seal and reseal
    perishables. Examples are food products and
    cleaning supplies.
  • Offer consumer safety warn of hazards due to
    improper use of dangerous substances (such as the
    information on cigarette packaging) or design
    considerations (such as Beverage can opening
  • Serve other uses containers that can be used for
    other after-purchase purposes. Film canisters
    might carry a couple days vitamins or aspirin in
    a backpack. A current foldable bicycle ships and
    travels in a suitcase, which then converts into a
    trailer to be pulled behind the bike.

Generic Differentiation
  • Retail products purchased on an impulsive basis
    depend heavily on packaging to communicate
    information and encourage a buy decision.
  • Music CDs, perfume, and software are examples
    of this.
  • An increasing number of products are purchased
    without the assistance from a store employee,
    magnifying the opportunity and impact of the
  • Well-designed packages offer a promotional tool
    and convenience value to the user. This can
    result in another form of product
  • Packaging can offer after-purchase value to store
    the product, or be used for other uses.

Differentiation on shelf
  • A custom carton shape that works together with
    mouth-watering photography to create product
    differentiation on shelf.
  • This is significant because private-label
    packaging generally features stock components and
    typically relies on strong photography and vivid
    color reproduction to ramp up the graphic
    intensity while also minimizing costs.

Design Differentiation
  • Competitors Design
  • Design Differentiation

Process Differentiation
Egg Packaging
Usage Differentiation
  • Usage Differentiation

Packaging Machines
  • Cartoning
  • Case Erect / Pack / Seal
  • Coding / Marking
  • Form / Fill / Seal
  • Filling, liquid viscous
  • Labeling Machines
  • Palletizing/Depalletizing
  • Adhesive application
  • Aseptic packaging
  • Bagging fill/seal
  • Blister / sealing / skin equipmet

  • Blow molding
  • Capping
  • Checkweigh / counters
  • Container handling/orienting
  • Converting equipment
  • Conveying / accumulating / lane dividers
  • Feeding / inserting / collating
  • Filling, dry
  • Filling, tube
  • Fill / seal, cup / tub / tray
  • Flow wrappers
  • Induction sealing
  • Inspection (machine vision, X-ray)

  • Multipacking
  • Overwrapping
  • Pouching
  • Robotics
  • Shrink wrapping
  • Shrink banders / sleevers
  • Strapping / banding
  • Stretch wrapping
  • Testing / measurement
  • Thermoforming equipment
  • Unscrambling / orienting
  • Vacuum packaging

  • Types Packaging Materials
  • Closures
  • Containers
  • Flexible Packaging
  • Labels
  • Shrink Film / Labels
  • Adhesives
  • Bags, pre-made
  • Blisters / clamshells / thermoforming
  • Bulk (IBC's, drums, pails, etc.)
  • Carded packaging

  • Cases / trays / corrugated
  • Cups / tubs / trays / foodservice
  • Desiccants
  • Lidding
  • Paperboard / Paper
  • Pouches
  • Protective packaging
  • Reclosable packaging
  • Resins / pigments / additives
  • Stretch film
  • Tape
  • Tubes

Legal Aspect of Packaging
  • The Indian Regulatory System falls under the
    category of compulsory legislations formulated by
    the various ministries and voluntary standards
    framed by various organizations to serve the
    country. The National Regulatory System is shown
    in Table 1.
  • The Packaging Laws and Regulations for food
    products are mainly covered under
  • The Standards of Weights and Measures Act, 1976
    and the Standards of Weights and Measures
    (Packaged Commodities) Rules, 1977 (SWMA).
  • The Prevention of Food Adulteration Act, 1954 and
    the Prevention of Food Adulteration
  • Rules, 1955 and its first amendment, 2003 (PFA).
  • The Fruit Products Order, 1955 (FPO)
  • The Meat Food Products Order, 1973 (MFPO)
  • The Edible Oil Packaging Order, 1998
  • The Agmark Rules

Important Legal Aspects of Packaging
  • The Act also specifies the base units for
  • Length Metre
  • Mass Kilogram
  • Time Second
  • Electric Current Ampere
  • Thermodynamic Temperature Kelvin
  • Luminous Intensity Candela
  • Base Unit of Numeration International form of
    Indian numerals
  • Declaration

Declaration on Packaged Commodities for
Interstate Trade or Commerce
  • In The Standards of Weights Measures Act (SWMA)
    Chapter IV (section 39),
  • The Act stipulates that for interstate trade or
    commerce of commodities in packaged form,
    intended to be sold or distributed, every
    commodity in packaged form has to bear upon it,
    on a label securely attached to it, a definite,
    plain and conspicuous declaration of
  • Identity of the commodity in the package
  • Net quantity, in terms of the standard unit of
    weight or measure, of the commodity in the
  • Where the commodity is packaged or sold by
    number, the accurate number of commodity
    contained in the package
  • The unit sale price of the commodity in the
  • The sale price of the package.

Additional requirements
  1. Every package should bear the name of the
    manufacturer and also of the packer
  2. The statement as to the net weight, measurement
    or number of the contents should nothave any
    expressions, which tend to qualify such weight,
    measurement or number.(Exceptions to this are
    commodities which may undergo changes in weight
    or measuredue to climatic variations examples
    bread, soap, etc. where the qualifying
    statementwhen packed may be added to the net
    weight or measure).

  • Where the retail price of a commodity is stated
    in any advertisement, the net quantity ornumber
    of the commodity must be conspicuously declared
    in the advertisement alongwith the price.
  • A package containing a commodity, which is
    filled less than the prescribed capacity ofsuch
    package cannot be sold or distributed except
    where it is proved that the package isso filled
    with a view to
  • giving protection to the contents of the package
  • meeting the requirements of machines used for
    enclosing the contents of such packages.

  • The Central Government may, by rules, specify
    reasonable variations in the net contents
  • of the commodity in a package as may be caused by
    the method of packing or the
  • ordinary exposure which may be undergone by the
    commodity after it has been
  • introduced in the market place.
  • This very comprehensive and far-reaching Act has
    put an end to the state of near anarchyin the
    trading of packaged goods. The clearly specified
    requirements in the Act have
  • also provided a challenge to packaging
    development experts and label copy specialists
  • who have to include statutory and promotional
    copy in the limited space available on
  • labels and on packages themselves. However
    irksome they may appear, the provisions
  • of this Act are welcome because they offer to the
    consumer a measure of protection
  • which is not so apparent in many other legal

Label Declarations
  • Label Declarations
  • In the SWMA Rules, the declaration to be made on
    every retail package has been detailed.
  • The declarations are to be made with respect to
    the following
  • The name and address of the manufacturer or where
    the manufacturer is not the packer, the name and
    address of the manufacturer and packer.
  • The common or generic names of the commodity
    contained in the package.
  • The net quantity in terms of the standard unit of
    weight or measure, of the commodity contained in
    the package or where the commodity is packed or
    sold by number, the number of commodity contained
    in the package.
  • The month and year in which the commodity is
    manufactured or pre-packed. (Provided that for
    packages containing food articles, the provisions
    of the Prevention of Food Adulteration Act (PFA),
    1954 (37 of 1954) and the rules made thereunder
    shall apply).
  • The retail price of the package.
  • The retail sale price of the package.

  • Where there is undue proliferation of weight,
    measure or number in which any commodity is being
    sold and such undue proliferation impairs, in the
    opinion of the Government, the reasonable
    ability of the consumers to make a comparative
    assessment of the prices after considering the
    net quantity or number of such commodity, the
    Government may prescribe standard quantities or
    numbers for any commodity.

  • Universal boxes and packaging material can be
    used for the product basically for
    multi-locational companies
  • Alternate materials can be used
  • Execessive packaging to be avoided
  • Use pre printed boxes/ wrappers It can save cost
    on printing
  • Automation on packing machines can also help
    reducing packaging cost
  • Packaging cost  have substantial  contribution on
    product costing above mentioned  steps could
    reduce cost of packaging

Social Aspect Of Packaging
Green Packaging
  • What is Green Packaging?
  • Green packaging is not just about reducing the
    amount of packaging but takes package design,
    processing, disposal conditions and the entire
    product lifecycle into consideration. Some of
    characteristics of sustainable packaging include
  • Minimizing the amount of packaging used (weight
    and volume)
  • Minimizing the energy used for production and
    transportation of goods
  • Using packaging that can be reused again, such as
    bottles and refillable ink cartridges
  • Using recycled and recyclable materials
  • Using biodegradable materials

Costs minimization
  • Providing protection from mechanical damage
  • Increasing shelf life of product
  • Easy handling of items during transportation
  • Advertisement and messages from Manufactures
  • Legal declarations on packs for consumers Read
    more http//

  • Following steps can results in savings
  • Alter dimensions of the primary /secondary
    packaging as per the product
  • Change the product dimensions as per the
    secondary packaging which would result in better
    handling and optimum use during stacking and
    loading an container
  • Thickness of the material used in packaging can
    be reduced with trials on breakages can be done
    and items are approved thus the tested material
    are safe during transit .
  • Preformed boxes /cartons can be used rather than
    employing labor to prepare in house
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