Purpose of Packaging throughout Supply Chain, Types of Packaging - Literature review Example

Institution : xxxxxxxxx Title : Packaging Tutor : xxxxxxxxxx Course : xxxxxxxxxx @2012 Literature review Introduction Packaging plays a major role in distribution and sale of commodities to final consumers. It is currently being observed as an essential component of modern life style and a way of doing business. Packaging has been developed past its initial function as a simple way of product protection to a key marketing strategy that develops on shelf appeal, provides product information and establishes brand image and awareness. It is an integral part of current marketing operation that embraces every phase of activities entailed in the transfer of goods and services from the producer to the consumer. Several studies have therefore been conducted to evaluate the concept of packaging. Definition of packaging Arens (1996), in his studies, defines packaging as a container for a commodity. According to Arens (1996), packaging entails the physical appearance of the container such as the design, color, labeling, shape and materials used. Other researchers consider packaging as an integral part of commodity component of 4 P’s of marketing, which are product, place, price and promotion. Researchers such as Keller (2007), view packaging as an aspect that is not product related. Keller (2007) highlights that packaging is among the five elements of the brand. These elements include the name, the logo or graphic symbol, the slogans and the personality. Packaging therefore can simply be defined as a material that wraps consumable items. It is meant to contain, identify, protect, promote, describe and make the commodity clean and marketable. It is through this definition that several purposes for packaging throughout the supply chain can be identified. Purpose of packaging throughout the supply chain From the study conducted by Prof. Kumar (2006) on the role of packaging in marketing product and organization, it is evident that there are many purposes for packaging. The study illustrates that one of the main purposes for packaging is to preserve and protect the contents when transporting the commodity from the manufacturer to the final consumer. Products are normally protected from climatic impacts, hazardous substances contaminants and infestation. The climatic effects that products are normally protected against include heat, cold, moisture, vapor and drying atmospheres. Dorf & Kusiak (1994)argues that products should be packaged so as to protect them against transportation hazards spillage, ingress and egress of moisture, dirt, insect infection, tampering pilferage and contamination by foreign material. Packaging therefore should preserve the commodities in a fresh condition when transporting or storing them. Packaged products are normally free from bacteriological attacks and chemical reactions. Nilson and Ostrom (2005) highlights that packaging is an essential part of a commodity that not only provides functional purpose but also communicates the product’s information and brand character. Packaging needs to be functional, that is, it should protect the commodity during storage, shipment and when being used. Packaging functions do always base on customer convenience, both in terms of ease of use and ease of access. In addition to provision of functional information concerning the use and identity of the product, packaging also provides a promotional purpose. Packaging attracts and maintains attention of the consumer so as to involve them with the commodity. A package should communicate what it sells. It should communicate well to the consumers about the product, the usage and other usefulness information. This therefore normally gives a manufacturer a strong medium of communication. Types of packaging Prof. Kumar (2006), suggest two different types of packaging, which are transport packaging and consumer packaging. According to him transport packaging is a type of packaging that is normally done on products on transit. It is believed that any product entering the market should be packed well so as to protect it against damages when being handled, transported and even stored. Good examples of transport packaging are fiberboard and wooden crates. For effective packaging, products to be transported need to follow a number processes. These processes can be summarized in the following flow chart. Consumer packaging on the other hand is a type of packaging that is normally done on products intended for final consumption. This type of packaging normally holds the needed amount of the commodity for final consumption. Consumer packaging is very essential in marketing. Products such as beverages and tobacco are normally packed using this type of packaging. Therefore, consumer packaging can either be a can, a bag, a box, or even shrink wrap (Judge 2010). In addition to the two packaging types, Judge (2010) highlights that another packaging type is group packaging. According to judge (2010), group packaging is highly practiced in grocery stores. Group packaging is a way of grouping several amounts of food products for easy management. This kind of packaging is common among store personnel and those who do always restock their shelves. In order to effectively package the product by either method, it is essential for package designers to consider several factors when designing a package. Factors to consider when designing packaging Patsula (2007) suggests eighteen factors to consider when designing a package. These factors include art and beauty needs, availability of packaging equipment, the image of the company, competitive pressure, consumer requirements, distribution and shipping requirements, environmental concerns, future tendencies in marketing, government controls and regulations, industrial standards, professional package designers input, labeling needs, marketing requirements, desired messages, budget for packaging, methods of production, product requirements, the needs for wholesalers and retailers. Other factors that should be considered when designing a package include the content’s protection, sales appeal, innovational opportunity, attainment of consumer influence and self service. Importance of standardization According to United Nations Industrial Development Organization (2006) standardization is beneficial to various sectors of the society. Standardization benefits manufacturers in several ways. Manufacturers benefit a lot from standardization since it rationalize the process of manufacturing, eliminate or minimize inefficient material or labor, minimize inventories of raw material and final products. It also minimizes the cost of manufacturing. Standardization is important to customers since it ensures that goods purchased and services received are of good quality. It also offers better value for money. Standardization assists in solving any disputes that might arise with supplies. To traders, standardization offers workable foundation for approval or rejection of commodities. It also minimizes delays that might arise from incorrect or incomplete materials or products specification. The environmental implication of packaging Levy (2000) argues that packaging is an essential tool of optimal resource utilization. It is believed to have positive environmental impacts. The positive impacts of packaging include safe product delivery to the customer while conserving the designed and processed usage. Packaging plays an essential role in saving natural resources. It prevents both the product and labor waste. By preventing the product from contamination, packaging also prevents the environment from being polluted by the product. Differences between packaging design for In-Transit and packaging for Display According to Goodwin & Young (2010), packaging design for In-transit provides important business and environmental benefits as compared to packaging for display. Packaging design for In-transit is usually developed in such a way that it protects the commodity from contamination when being transported, thus protecting the environment from being polluted by the products. Different from display packaging design, In-transit packaging design usually ensures that a product can be contained for a long period and through a long distance. The ability to transport a product anywhere usually promotes trade. Though costly, as compared to display packaging, in-transit packaging is normally designed in such a way that minimal damages can be experienced. With in-transit packaging design, there is always enough product protection throughout the distribution channel. Conclusion From the discussion, it is clear that Packaging can simply be defined as a material that wraps consumable items. It is also clear that there are various purposes for packaging throughout the supply. Packaging does not only provide functional purpose but also communicates the product’s information and brand character. The main types of packaging are transport packaging, consumer packaging and group packaging. It is illustrated in the discussion that there are various factors to consider when designing a package and that Standardization is beneficial to manufacturers, consumers and traders. Packaging has positive environmental impacts. In-transit packaging design and display packaging design differ in a number of ways. References ARENS, W. F. (1999). Contemporary advertising.Boston, Irwin /McGraw-Hill. GOODWIN, D., & YOUNG, D. (2010).Protective packaging for distribution: design and development. Lancaster, Pa, DEStech. LEVY, G. M. (2000).Packaging, policy, and the environment.Gaithersburg, Md, Aspen Publishers. Nilsson, J &Ostrom, T. (2005).Packaging as a Brand Communication Vehicle. Retrieved from< http://articles.submityourarticle.com> 16th March 16, 2012. PATSULA, P. J. (2002). Successful business planning in 30 days: a step-by-step guide for writing a business plan and starting your own business. [Arlington, Tex.?], Patsula Media. Prof. Kumar, D. (2006). Role of Packaging in Marketing Product and Organisation.Retrieved from< http://www.indianmba.com> 16th March 2012. KELLER, K. L. (2007). Strategic brand management: building, measuring, and managing brand equality. Harlow, Prentice Hall. United nations Industrial Development Organization .(2006). Role of standards.A guide for small and medium-sized enterprises. Retrieved from 16th March 16, 2012 Read More