The Importance Of Packaging, Its Role and Significance - Term Paper Example

 Branding and Packaging Introduction As ‘First Impression is the Last Impression’, so when we see any product placed in a shop or superstore and whether we familiar with or not, then its packaging may create a Hello or Horn effect for this good and influences our buying decision. Infect it’s a presentation which say Yes or No to any product although we are able to check beneath this pack. This modern marketing formula in the form of packaging and presentation progressing hand-in-hand, and making an effective combination to persuade consumers and increase sales.     The basic concept of packaging developed millenniums ago when the only motto was to store, supply and preserve the edibles and other commodities in a wooden box, clay pots and leather bags. This concept was further enhanced and in the early 19th century, with the beginning of modern industrialization; tin, plastic and glass were framed into modish canes, jars and bottles to promote and protect stuff. And now, Packaging has been simultaneously comprised into science, art and technology.   In this modernized and globalize era, Packaging just not only remains a tool of enclosing and protecting a product, but more widely, it has become a mean of preservation, sale and promotion. Nowadays, the sales and production of a commodity is correlated with the quality of packaging and advertisement. So, manufacturers are more concentrating on this new marketing strategy and influencing the buyers’ behavior.  In this article, we will discuss thoroughly about the importance of packaging, its role and significance. Also, the contribution of packaging in successful branding will also be assessed. The role of packaging Packaging was always an important part of marketing and selling products. Consider a product lying on a shelf of a store in plain cover besides other products in beautifully colored, eye-catching packing displaying its name in bold fonts, which one is likely to gain attention of the shoppers. The key for marketing and selling products is to grab as much attention of the costumers as possible and packaging plays a vital role here. Packaging is the enclosing of a product to present it for sale. It is to prepare the products for transportation, storage and most essentially to compliment the products’ marketing and selling. Packaging is a tool of promoting brand identity and establishing a market for it. Functions of packaging Marketers give immense value to packaging and consider it crucial player in the promotion of the brand. A truly attractive packaging has the power to convert the target market to actual buyers of the product. Functions of packaging can be identified as follows, 1. Contain the product 2. Preservation 3. Communicate with the costumers 4. Promote the brand Contain the product All products demand to be packed such that there is no possibility of their spillage or spoilage till it reaches the consumer. Organizations are keen to emphasize on the packaging of products so that the quality of the product is maintained and the product safely reaches the market. This also strengthens the credibility of the brand. Preservation Preservation and protection is absolutely essential and is strongly reviewed by manufacturers. Exposure to heat and cold, dust, air, moisture and contaminants present in the environment are fatal for the quality of the products. Proper packaging ensures that the product remains in exactly the same condition as it was manufactured throughout the time of its transportation, storage and consumption. Example “Pharmaceutical manufacturers have to package their medicines before they can be sent out for distribution. The type of packaging will depend on the formulation of the medicine. We will look at a case study of putting tablets into 'blister packs' Case study: blister packaging tablets 'Blister packs' are a common form of packaging used for a wide variety of products. They are safe and easy to use and they allow the consumer to see the contents without opening the pack. Many pharmaceutical companies use a standard size of blister pack. This saves the cost of having to make different tools and of having to change the production machinery between products. Capsules can also be packaged in a similar way.  Sometimes the pack will be perforated so that individual tablets can be detached. This means that the expiry date and the name of the product have to be printed on each part of the package. The blister pack itself must remain absolutely flat as it travels through the packaging processes, especially when it is inserted into a carton. This poses interesting problems for the designers. Extra ribs are added to the blister pack to improve its stiffness.” Communicate with Costumers Packing is the face of the product; it communicates each information important for the costumers. Packing conveys information regarding the contents, size, weight, usage of the product enclosed cautions (for inflammability, fragility and any potential harmfulness etc) and also information of the manufacturers. In case of distribution of products in different countries packaging includes the information in different languages to be understood by every consumer. To further eliminate the factor of misunderstanding universally used symbols are used. Organizations strive to leave no chance for the consumers to misunderstand the purpose and usability of the products. Promote the Brand Packaging is an extremely important tool for the promotion of products. Foremost aim of marketers is to design such packing for their products that not only attracts costumers but communicate the value of the product to them. What matters for the consumers are look and attractiveness as well as easy portability of products? Organizations nowadays focus on every aspect that how the consumers perceive different products and what they expect from them. Conclusion Discussion about different roles of packaging makes us draw the conclusion that organizations focus on this aspect as keenly as it focuses on manufacturing. Packaging is essential for the distribution, quality maintenance and consumer attraction and no product can work without emphasis on safe, eye catching and handy packaging. Theoretical basis supporting the importance of branding Packaging and Advertising Jennifer Acevedo - editor-in-chief of “Brand Packaging” "Advertising, if you can even get the consumer to view it these days, is fleeting, but packaging exists on the shelf -- at the point where the consumer is making the final purchasing decision – and continues to promote the brand once consumers take it home and throughout its use cycle." "Traditionally, marketers have viewed packaging as part of the product development process rather than as part of promotion." According to her packaging play an equally important role to lure the buyers towards a product as advertising. But packaging is the direct interaction of the product with the costumers and strongly influences the costumers’ decision of purchasing the product. She adds that initially marketers considered packaging only a part of developing the product but it has emerged as an integral part of promotion of products. Packaging has earned itself immense importance over the years. David Ogilvy – founder (Ogilvy & Mather Advertising Agency) “The Obligation of Advertising is to sell” This statement also reflects on the idea & importance of packaging in a sense that the elements over which video/ image advertising focuses have packaging on top of the list & most of the time the whole advertising & promotional campaign is based on the packaging & the design philosophy behind it. Mr. Bernd Schmitt - Director of the Centre on Global Brand Leadership at Columbia University, New York. "Packages are creating an experience for the customer that goes beyond the functional benefits of displaying and protecting the object." As we discussed various functions of packaging earlier, it is important to realize that packaging is much more than simply wrapping or containing the product. It is about presenting the product to the customers and persuading them to purchase the product. The key is to satisfy the customers, brand’s survival relies on customer satisfaction. Packaging compliments brand personality “The package communicates both emotional and functional benefits to the buyer and should be in line with the brand’s personality” says Randall Frost, a freelance writer based in Pleasanton, California, is the author of The Globalization of Trade. Every product is bound to develop a personality of it which helps it establish itself as a brand. Packaging is a part of the brand personality and so marketers are careful to design the packaging as such that it compliments the product and enhances the value of the product. Packaging ensures the consumers that they can rely on the quality and purpose of the product. The colors, fonts, information printed and every aspect of the packaging must display the proper feel of the product. Diverging views for packaging Gerstman, Chairman Emeritus of Interbrand US "Packaging is branding. The brand identity in itself is much more than just a logo. The brand identity is a lot of things, which eventually lead to what I call that brand promise and the reason people buy a brand—value, acceptance and loyalty. The package reflects that. It identifies that product and the brand, and promotes the confidence in the brand." Darrel Rhea, Principal and CEO of the branding and packaging consultancy Cheskin "Packaging and branding are different things. Packaging is only one expression of the brand. In many product categories, it is a very important element and may even be the primary way people interact with the brand…. One should start with a compelling brand definition, one that really connects with people on a deep level. Packaging should then be used to reinforce that definition. Those who use a package design to define the positioning of a brand usually get into trouble as they apply the brand in other media." Above are quoted two diverging views about packaging, one considers it as branding while another says mixing both the things or considering them as one is a mistake done by marketers as packaging may be considered a part of branding but it can never be branding itself. Brand development is a vast topic and includes everything from idea of the brand to market of it and anything in between, packaging contributes to this process of brand development and marketing but it is true that it cannot be solely relied upon, but should be used rationally so that it positively adds to the success of any product. Specific branding mistakes that have been made and lessons learned from them Brand name of a product has become more precious than anything in the modern business world. The Factories, newspapers, steamships, real estate are not that much expensive as compare to the world renowned brand names of a products. Brands like; COCA-COLA costs 90 billion dollars, MARLBORO 31 billion dollars, KODAK 10 billion dollars and MICROSOFT 70 billion dollars. This is ten times greater than the value of tangible assets (real estate, machinery, transport, etc) of the same companies. Brand name is well worth of the money known as intellectual property. There is huge willingness of consumers to buy products of famous brands. Let us try to define this phenomenon, Brand name constantly confused with the trademark. Brand is the notion of legally-oriented products of any producer, while Trade Mark is the sign of ownership of a brand. If a Trade Mark of a brand is simply registered, then you need to create a brand, position it, maintain it and manage it. A small mistake of famous branding goods can even ruin the company. Therefore, to avoid doing such adventures, the introducer of any brand should take in account the following top ten principle of branding as mention below. 1. Name An ideal name should carry positive associations as it must be pleasant to the ear, memorable and easy to pronounce, not only in the country of its origin, but also throughout the world, Examples are as: BMW, SONY, NIKE, FORD, PEPSI, etc. 2. Idea Idea for a specific brand should be as clear as possible in order considering the target audience, not abstract, but concrete. The idea must be focus on the basis for further strategy for progressing goods or services. Your product should attract people. If the idea is unique then it is easier to understand, accept and believe the brand. 3. Unique In world market there are a large number of brands, and each year they are increasing. For producers of branded goods the most fundamental question is how to make sure that consumers have chosen the brand. To do this, first and foremost thing for a producer of branded goods, they must understand that what does brand means to consumers. For example, stopping at McDonald's, the consumer already knows in advance how long it will take a lunch, how much he will pay, what flavor and emotional sensations were experienced. Referring to an unknown fast-food restaurant, the consumer can only guess about this.  4. Appearance Modern goods and many services are quite complex, and the buyer usually does not understand the intricacies of their origin. So the buyers make a choice without wasting time on study characteristics of the brand, based on impressions of the product. Therefore it is necessary to add impressions, emotional images which are associated with the brand. The physical appearance of a brand must be acceptable by the buyers. 5.  Communication A well designed communication system not only B2B but with the end consumer in relation with a branded products or services get benefits over its competitors in the market. It is only a tool to explain why consumers should choose this brand and in which situation. 6. Not to keep in touch with the consumers Verbal marketing a tool for advertising the brand of a company get queries ,opinions from the existing or prospective customer about quality and reliability of the brand as well as providing a company brochure and flyers to them.  7. Mission Even professionals from advertising companies often write that the brand is an image of product in the minds of consumers, this is not true. To believe in the brand, responsible for it and to guard its purity all employees of such holding company of brand should act as safeguard for their branded goods including porter to the general director. Indifference to the brand at every level, it is contagious, and sooner or later, sicken the consumers. The brands should be built only on the mission; it is a great devout system and network marketing for the companies. Brand without the Mission is not a brand. 8. Management We must not mix the brand with the product. Specific product has its life cycle and after that it dies, but the brand can live forever. Examples of longevity brands are well known: Lowenbrau Beer brand was first introduced in 1383. It survived a lot by plague, war, and the fall of federalism, the discovery of America, the rise and fall of entire nations. Thomas J. Lipton began selling tea under his name in 1889 and popularized it in Britain during the reign of Queen Victoria. Tea under the brand Lipton is still popular - in fact, he survived in the British Empire. One of the most powerful to date brand is Coca-Cola, introduced in 1886. It helps the brand to live long enough to good governance - the creation of individual features of the brand, verify that the individual traits are not adjusted for the sake of tactical advantage, as well as preparing crisis management plans for the brand, if necessary. So we have to follow a professional job with the brand. 9. Distribution Brand should be available (ideally: at any time, anywhere, as COCA-COLA).Identify distribution channels. No matter how much they may be, they may be more. Think again. Distribution is critical. Distribution is an essential part of the brand.   10. Insufficient knowledge where a successful brand get started Victorious branding always starts its popularity inside the company. Because the company’s people know very well about their brand. In branding, there is a principle called "principle of position of branding" – it is in the first position inside a company, which has already taken their position in the minds of consumers, so it is very difficult to deny this point: IBM - Computers, drinks - Coca Cola, Therefore, if you are able to create a brand then be first in a row - go for it!   Case Study of Tropicana Tropicana is an American based company producing fresh juices, orange juice in particular, since 1947. The company was acquired by Pepsi Co. in 1998 and various developments have been made to improve the quality and production of the fruit drink. In the beginning of 2009, a newly designed orange-juice package was introduced, but unfortunately it had to be junked with in few weeks of its launching and discouraged buying behavior from consumers. Figures showed a steep fall in the demand of newly designed packaging which was about 20% and cost millions of dollars’ loss to the brand2. In January 2009, Peter Arnell, CEO of Arnell Group (The marketing & branding agency of Tropicana) announced that they are switching back to the previous version of package. He tried to make a clean breast through these arguments: “We thought it would be very important to take this brand and bring it or evolve it into a more current or modern state … Historically, we always show the outside of the orange. What was fascinating was that we had never shown the product called the juice. There was a strong drive to bring a big messaging onto the carton where the biggest single bill boarding was”. Peter Arnell admitted that their customers loved with orange-and-straw icon that had a fascinating look. On the other side, critics said that the new-junked design had only illustrated the inner liquid which was store brand alike. So people rejected it because of repulsive appearance and drained characters on it. Conclusion In this article, we thrashed out the significance and the affirmative role of packaging in successful branding and marketing of a product. This concept was further enriched on theoretical roots, developed by various prominent and expert marketers. Moreover, different case studies of globally known brands gave a positive illustration to our debate and affirmed the idea of admirable packaging. High-quality packaging enhanced the physical & barrier protection, containment, security, convenience and most importantly its labeling created a new source of marketing and image of a finished good. Concluding the above discussed content, we reached to the bottom line that this new marketing phenomena not only maintaining quality of a product but additionally it is creating a source of attraction to the costumers and ultimately increasing the sales. Taken as a whole, packaging integrated into our daily life from a candy to an expensive electronic appliance. References Bain, F.L. An evaluation of the functions of packaging and their relations to marketing. University of Montana., 1978. Baker, M.J. The marketing book. Butterworth-Heinemann, 2003. Brassington, F., & Pettitt, S. Essentials of Marketing. Trans-Atlantic Pubns, 2007. Calver, Giles. What is packaging design? Rotovision, 2004. Czinkota, M.R., & Ronkainen, I.A. International marketing. Cengage Learning, 2007. 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