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CHAPTER V

PACKAGING STRATEGIES

Most commercial packaging serves two basic functions viz., protecting the

product from damage during shipping, and promoting the product to the ultimate

consumer. Some common types of packaging include shipping cartons, containers for

industrial goods, and bags, boxes, cans, and other holders for consumer products.

Packaging is of great importance to both sellers and buyers of products. It can prevent

spoiling, breakage, tampering, or theft; enhance convenience in use or storage; and

make products easier to identify. A significant improvement in packaging can even

create a "new" product by expanding the ways in which it can be used, and thus its

potential markets.

Prior to World War II, packaging was used primarily to surround and protect

products during storage, transportation, and distribution. Some packages were

designed with aesthetic appeal and even for ease-of-use by the end consumer, but

package design was typically left to technicians. After the World War II, however,

companies became more interested in marketing and promotion as a means of enticing

customers to purchase their products. As a result, more manufacturers began to view

packaging as an integral element of overall business marketing strategies to lure the

buyers.1

1 http://www.reference forbusiness.com/

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This increased attention to packaging coincided with socioeconomic changes

taking place around the world. As consumers became better educated and relatively

affluent, their expectations of products and their reliance on them increased as well.

Consequently, consumers began to rely much more heavily on manufactured goods

and processed food items. New technologies related to production, distribution, and

preservatives led to a massive proliferation in the number and type of products and

brands available in industrialized nations. Thus, packaging became a vital means of

differentiating items and informing inundated consumers.

Rapid post-war economic expansion and market growth waned during that

period, forcing companies to focus increasingly on luring consumers to their product

or brand at the expense of the competition. Package designing became a marketing

science. And, as a new corporate cost-consciousness developed in response to

increased competition, companies began to alter packaging techniques as a way to cut

production, storage, and distribution expenses. Furthermore, marketers began to view

packaging as a tool to exploit existing product lines by adding new items and to pump

new life into maturing products.

Today, good package design is regarded as an essential part of successful

business practice. Since many potential customers first notice a new product after it

arrived on the shelves of a store, it is vital that the packaging provides consumers with

the information they need and motivate them to make a purchase. But packaging

decisions involve a number of tradeoffs. While making a product visible and

distinctive may be the top priority, for example, businesses must also comply with a

variety of laws regarding product labelling and safety. Protecting products during

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transport is important, but businesses also need to keep their shipping costs as low as

possible. It will be appropriate to learn the factors in packaging decision as most of

them are listed below.

5.01 Factors in Packaging Decisions

Packaging decisions are important for several reasons as follows.2

(i) Protection – Packaging is used to protect the product from damage during
shipping and handling, and to lessen spoilage if the product is exposed to air
or other elements,

(ii) Visibility – Packaging design is used to capture customers’ attention as they

are shopping or glancing through a catalog or website. This is particularly
important for customers who are not familiar with the product,

(iii) Added Value – Packaging design and structure can add value to a product. For
instance, benefits can be obtained from package structures that make the
product easier to use while stylistic designs can make the product more
attractive to display in the customer’s home,

(iv) Distributor Acceptance – Packaging decisions must not only be accepted by

the final customer, they may also have to be accepted by distributors who sell
the product for the supplier. For instance, a retailer may not accept packages
unless they conform to requirements they have for storing products on their
shelves,

(v) Cost – Packaging can represent a significant portion of a product’s selling

price. For example, it is estimated that in the cosmetics industry the packaging
cost of some products may be as high as 40 per cent of a product’s selling
price. Smart packaging decisions can help reduce costs and possibly lead to
higher profits,

(vi) Expensive to Create - Developing new packaging can be extremely expensive.

The costs involved in creating new packaging include: graphic and structural
design, production, customer testing, possible destruction of leftover old
packaging, and possible advertising to inform customer of the new packaging,

2 “Principles of Marketing, Part 7; Product decision, www.

knowthis.com/principles_of_marketing_ tutorials.

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(vii) Long Term Decision – When companies create a new package it is most often
with the intention of having the design on the market for an extended period of
time. In fact, changing a product’s packaging too frequently can have negative
effects since customers become conditioned to locate the product based on its
package and may be confused if the design is altered and

(viii) Environmental or Legal Issues – Packaging decisions must also include an

assessment of its environmental impact especially for products with packages
that are frequently discarded. Packages that are not easily bio-degradable
could draw customer and possibly governmental concern.

5.02 Package Design

Consumer packaging serves to contain and communicate. A product's

"packaging mix" is the result of several requirements that determine how a package

accomplishes those two basic functions. A designer may create a fantastic package

that would perform excellently in the marketplace, but if the company cannot find a

way to produce the package cost-effectively, the design is useless. Among the most

important considerations in this realm is production line speed. If a container is too

long, wide, or short, it could significantly slow the speed of the production machines.

Similarly, if the top or spout of a container is too small or is oddly shaped, the product

may not flow easily into the package. A package must protect the product, be

adaptable to production-line speeds, promote or sell the item, increase the product's

density, help the consumer use the product, provide reusable value to the user, satisfy

legal requirements, and keep packaging-related expenses low. The functional

requirements and or sales requirements are two classes of package design criteria.

5.03 Functional Requirements

Package design must meet five groups of functional criteria: in-home, in store

(or warehouse), production, distribution and safety, and legal. In-home requirements

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usually dictate that packaging be convenient to use and store, remind users when and

what to repurchase, reinforce consumers' expectations of the product, and tell them

how to safely and effectively use the product. In addition, increasing numbers of

consumers expect packaging to be recyclable and environmentally sensitive.

In-store the criteria of packaging attract attention on the shelf, instill

confidence in the buyer, identify the product or brand and differentiate it from the

competition, communicate benefits and uses, and entice customers to actually

purchase the item. The product must also be easy for retailers to store and stock on the

shelves or the floor, and simple to process at a check-out counter or other final point

of distribution. For instance, packaging that is oddly shaped and takes up a large

amount of space may draw attention, but it may also be shunned by mail-order sellers

concerned about shipping costs or by space-conscious store retailers. Production

demands, the third group of functional criteria influencing packaging, are primarily

based on cost.

Packaging considerations related to distribution and safety are important and

numerous. If an unacceptable portion of the goods are damaged during storage,

transportation, or distribution, the package has failed. Likewise, if the package injures

the user, future sales could be lost or the company could be liable for damages. As a

result, packaging engineers face numerous technical considerations that have a

residual impact on the final look and feel of the package. For instance, packages must

be able to withstand the pressure of several other crates stored on top of them. They

must also be able to resist moisture, adapt to temperature changes, and withstand

rough handling. From a cost standpoint, packages must also be designed to suit

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standardized transportation requirements related to weight, size, and durability.

Finally, they should be designed so that the bar code on the package is easily scanned.

Furthermore, on safety side, packages should ideally be designed to handle normal

use by consumers. Examples of packages that may result in harm to consumers

include: those with sharp edges, such as some pull-top canisters; glass containers; and

heavy item boxes which might break when the consumer is carrying them or cause

strain or injury to the consumer when picked up or set down. The fifth basic group of

functional packaging requirements relate to laws and legislation. For instance, some

laws require that potentially dangerous goods, such as gasoline or drugs, be stored in

specially constructed containers. Other laws forbid producers from misrepresenting

the quality or quantity of a product through misleading packaging. Perhaps the most

influential class of laws that affect packaging, however, is that related to labelling.

5.04 Product Labelling

A label is the text printed on a product package or, in the case of items like

clothing, attached to the product itself. Legally, labels include all written, printed, or

graphic material on the containers of products that are involved in interstate

commerce or held for sale. The main body of legislation governing packaging and

labelling is the Fair Packaging and Labelling Act of 1966. It mandates that every

product package or label should specify on its "principal display label" (the part of the

label most likely to be seen by consumers) with the following information:

(i) the product types,

(ii) the producer or processor's name and location,
(iii) the quantity (if applicable) and
(iv) the number and size of servings (if applicable).

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Furthermore, several restrictions apply to the way that the label is displayed.

Other information required by the act relates to specific foods, toys, drugs, cosmetics,

furs, and textiles. For instance, under the act, labels for edible products must provide

sodium content if other nutritional information is shown. It must also show

ingredients, in descending order from the one of highest quantity to the one of the

least quantity. Certain food items, such as beef, may also be required to display

qualitative "grade labels" or inspection labels. Likewise, "informative labelling" may

be required for products such as home appliances. Informative label requirements

mandate information about use, care, performance capability, life expectancy, safety

precautions, gas mileage, or other factors. Basically, the new laws require most food

labels to specify values such as calorie and cholesterol content, fat and saturated fat

percentages and sodium levels.

5.05 Sales Requirements

In additional to functional requirements, product packaging should be

designed in a way that will appeal to buyers. The four principal merchandising

requirement areas are:

(i) Apparent size,

(ii) Attention drawing power,
(iii) Impression of quality and
(iv) Brand-name readability.

Apparent size entails designing packaging to look as large as possible without

misrepresenting the actual contents. This objective can be achieved by ensuring that

the panels or dimensions of the package most likely to be viewed by the consumer are

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the largest, and that the product or brand name is shown on the most visible areas in

large letters. In addition, the package can be made to look larger by using solid

colours and simple, bold designs free of borders, superfluous art work, and

unnecessary print. The pretense of largeness is particularly important for packages

containing commodity items, such as rice, driveway salt, and canned fruit or

vegetables.

Attention drawing power refers to the aesthetics and obtrusiveness of the

package design. Depending on the product and the goals of the marketers, the package

may be made to appear attractive, exciting, pure, soft, scary, intriguing, or to evoke

some other emotion. In most cases, though, the product is displayed on the front of the

package in the form of a picture, art, or see-through window. In addition, bright

colours, glossy stock, obtrusive carton displays, and other elements can garner

positive attention if used prudently.

A quality impression is an important sales requirement for packaging because

items that are perceived to be of low quality are usually assumed to be a poor value,

regardless of price. Examples of packaging mistakes that convey low quality or poor

value include factors like faded lettering or colours, tacky designs or strange typeface,

outdated pictures and designs, and cheap construction.

Readability is the fourth basic sales requirement for successful package

design. This element is of paramount importance for products like breakfast cereal

that are shelved next to several competing brands and products. If the package

attempts to convey too many messages, it will likely fail to connect with the

consumer. Because of the mass of buying choices, buyers typically do not take time to

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absorb messages on packaging, with the possible exception of high-priced specialty

items. Among other guidelines, letters or logos should be large and printed in the

same type style as that used in complementary print and television advertising. The

requirement of readability contributes to the difficulty in packaging completely new

products.

5.06 Models of Packaging Design and Problem Thereof

The researcher has displayed some popular designs used in food products,

which are self-explanatory, as given below.

i) Packaging Design for the Frozen ii) Packaging Design for on Agro
Sugarless Pies and Cakes Line Foods
of Products3

iii) Packaging Design for iv) Food Package Design for

Cheese and Jam Products Hawaiian Punch Products

3 http://www.google.co.in/imgres?q=frozen+food+packaging=design&hl

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v) Packaging Design for vi) Packaging design for a Range

Stouffers Fry Bistro Entrée of Stir Frozen Ready Meals
Products

vii) Packaging Design for viii) Food Package Design for

Most Traditional Chocolates Brand of Forzen food in
Portugal

ix) Food Packaging x) Food Packaging for Case

Steamers Products

xi) Packaging Design for a Range xii) Package Design for Beverage
of Rice and Milk Products based Frozen Ready Meal

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xiii) Foods Package design xiv) Package Design for

for Samosa Meals Fruits

xv) Creative Packaging xvi) Packaging Design

Design for Beverage for Coffee Powder

All the above indicate that the packaging materials are normally either

recycled or disposed each models brings out a new form of packing to attract the

customer. Packaging, as any other industrial activity, has both positive and negative

impacts on the environment. The negative impact includes the exploitation of

resources use, and the ecological effect of packaging relates to wastes and emissions.

In a well knit society, these negative effects shall not be neglected. The effectiveness

and efficiency of packaging shall be supervised and our consumption habits shall be

examined.

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TABLE 5.01

Problems Attributed to Packaging (Co)

Strongly Opinion Strongly

Sl. Agree Disagree Std.
Agree Received Disagree Mean
No. Particulars Deviation
No. % No. % No. % No. % No. %
1. Pollution 225 45.00 174 34.80 51 10.20 38 7.60 12 2.40 4.12 1.029
2. False Information 98 19.60 219 43.80 90 18.00 87 17.40 6 1.20 3.63 1.023
3. Reduces Space Utility 98 19.60 202 40.40 113 22.60 67 13.40 20 4.00 3.58 1.070
4. Environmental
154 30.80 212 42.40 72 14.40 51 10.20 11 2.20 3.89 1.024
Hazardous
5. Increases the Cost 173 34.60 208 41.60 59 11.80 40 8.00 20 4.00 3.95 1.069
6. Too Much Of
112 22.40 172 34.40 115 23.00 78 15.60 23 4.60 3.54 1.134
Packaging
7. Lack Of Innovation &
93 18.60 186 37.20 105 21.00 84 16.80 32 6.40 3.45 1.158
Modernization
8 Lack of Incentives for
Technology 70 14.00 166 33.20 149 29.80 91 18.20 24 4.80 3.33 1.076
Upgradation
Source: Primary Data, 2011 * Friedman test = 474.190 * For 500 samples p<0.001

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50

45
45 43.8
42.4
41.6
40.4
40
37.2

34.8 34.6 34.4

35
33.2

30.8
29.8
No. of Respondents

30
Strongly Agree
Agree
25 Opinion Received
22.6 23
22.4 Disagree
21 Strongly Disagree
19.6 19.6
20 18.6
18 18.2
17.4
16.8
15.6
14.4 14
15 13.4
11.8
10.2 10.2
10
7.6 8
6.4
4.6 4.8
5 4 4
2.4 2.2
1.2

0
Pollution False Information Reduces Space Environmental Increases the Cost Too much of Lack of Innovation Lack of Incentives
Utility Hazardous Packaging & Modernization for Technology
Upgradation

Source: Primary Data, 2011. Fig 5.01 Problems Attributed to Packaging

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The disposed materials of such models pose a big problem to the community

as well as environment. It is universal that packaging creates certain environmental

problems. The researcher seriously thought about it and studied this during the survey

of Consumer and packing organization. Further, it was confirmed by the researcher

during the survey and the survey results are presented in Table 5.01 and 5.02.

5.06.01 Problems Attributed to Packaging – Consumer Point of View

Any packaging activity should be associated with certain problems directly or

indirectly affecting the consumers. And so, there will be a sort of likes and dislikes as

the case may be with those consuming lot. The researcher wanted to highlight this

aspect as given below in Table 5.01 and 5.02.

The most important part of the study is to assess the public opinion regarding

the post purchase problems of packaging materials. The researcher has carefully

listed eight direct and indirect problems as listed in Table 5.01. They are pollution,

misleading information, reduced space utility, environmental hazards, increased cost,

too much of packaging, lack of innovation and modernization, and lack of incentives

for technology upgradation. According to the study conducted, 45 per cent of the

respondents “strongly agree” that pollution was the major problem of packaging

materials, besides 34.8 per cent respondents simply “agreeing” to it. Put together it

works out to 79.8 per cent (399 out of 500) respondents. While 10.2 per cent of

respondents reserved the opinion towards pollution, yet another 10 per cent either

disagree or strongly disagree to that. The researcher is of the opinion that it is the

consumers’ lack of awareness for not being able to give any opinion.

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According to the study conducted 34.60 per cent of the respondents “strongly

agree” that the increase in the cost was the second major problem of packaging

materials, besides 41.60 per cent respondents simply “agreeing” to it. Put together, it

works out to 76.2 per cent (381 out of 500 respondents). While 11.8 per cent of

respondents reserved the opinion towards increases the cost, yet another 12 per cent of

them stated either “disagree” or “strongly disagree’.

According to the study conducted, 30.80% of the respondents “strongly agree”

that environmental hazardous was the third major problem of packaging materials,

besides 42.40 per cent respondents simply “agreeing” to it. Put together it works out

to 73.3 per cent (366 out of 500 respondents). While 14.4 per cent of respondents

have reserved the opinion towards environmental hazardous, yet another 12.4 per cent

either “disagree” or “strongly disagree” to that.

As per the survey, 22.40 per cent of the respondents “strongly agree” that too

much of packaging was the fourth major problem of packaging materials, besides

34.40 per cent respondents simply “agreeing” to it. Put together works out to 56.8 per

cent (284 out of 500 respondents). While 23 per cent of respondents reserved the

opinion towards environmental hazardous yet another 20.20 per cent either “disagree”

or “strongly disagree” to that. The researcher thought that lack of awareness for not

being able to giving any opinion.

As per the study, 19.60 per cent, 19.60 per cent, 18.60 per cent, 14 per cent of

the respondents “strongly agree” that misleading information, reduces space utility,

lack of innovation and modernization and lack of incentives for technology

upgradation was the next major problems of packaging materials respectively,

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besides 43.80 per cent, 40.40 per cent, 37.20 per cent and 33.20 per cent respondents

simply “agreeing” to it respectively. Put together it works out to 63.1 per cent,

61 per cent, and 56.8 per cent 47.20 per cent of the respondents respectively. While

18 per cent, 22.60 per cent 21 per cent and 29.80 per cent of respondents reserved the

opinion towards misleading information, reduces space utility, lack of innovation and

modernization and lack of incentives for technology upgradation, yet another

18.60 per cent, 17.40 per cent, 23.00 per cent and 23 per cent “disagree” or “strongly

disagree” to that.

The above attributes are analyzed in a group on the basis of priority given by

the consumers on 8 variables, for which the Friedman test has been applied as the

significant ‘p’ value indicates that priority differs among 8 attributes. Hence, the

Friedman multiples comparison result shows that 1,5 vs 4 vs 2,3 6,7 vs 8 vs 9. i.e.,

the consumer has given first priority to packaging creates pollution and second to

increase the cost of the product. Further, too much of packaging, false information,

reduction of space utility and lack of innovation and modernization are placed in the

third group of classification while the lack of incentives for technology and

upgradation in the fourth group, which is has lesser importance in the minds of the

consumer relating to problems caused by packaging.

It could be concluded from the above table that the consumers are more aware

of the fact that the packaging creates pollution problems. They identified that the

increase in cost of product as another problem while very few opined that lack of

incentives for technology and upgradation as yet another problem faced by packaging

industry, and no consumers had given any attributes other than this as a major

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problem relating to packaging. So, the majority of opinions confirm the fact that most

of the packaging materials today are pollutants.

H 0: There is no significant uniform association between the respondents opinion

on the problems attributed to packaging.

Test used c2” test

TABLE 5.01 h Chi-static

Calculate Table Degree of Significance

Factor Inference
Chi- Value Value Freedom Level
Problems
Attributed to 47.4190 26 8 .001 Rejected
Packaging

Inference: The calculated c2 value is greater than the table value at 1 per cent level of

significance. Therefore the null hypothesis is rejected. So, it is concluded that there

is a significant uniform association between the respondents opinion on problems

attributed to packaging.

TABLE 5.02
Problems Attributed to Packaging (IO)

Sl. Total Mean

Particulars Rank
No. Score Score
1. Pollution 159 3.38 IV
2. False Information / Deception of Consumer 143 3.31 VI
3. Reduces Space Utility 163 2.98 IX
4. Environmental Hazardous 162 3.40 III
5. Increases the Cost 141 3.38 IV
6. Too much of Packaging 144 2.94 X
7. Energy Cost 146 3.00 VIII
8. Lack of Innovation and Modernization 165 3.04 VII
9. Shortage of Trained Manpower 167 3.44 II
10. Lack of Incentives for Technology Upgradation 190 3.48 I
Source: Primary Source 2011. IO: Industrial Organisation

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5.06.02 Problems Attributed to Packaging – Industry Point of View

Problems attributed to packaging with a mean score between 3 and 4 may be

considered as acute and need immediate attention of the sample industries and that of

the governments. ‘Lack of incentives for technology upgradation’, ‘shortage of

trained manpower’, ‘environmental hazardous’, ‘increase the cost’, ‘pollution’, ‘false

information’, ‘energy cost’, and ‘reduced space utility’, are brought under this

category. Foremost efforts are to be initiated and implemented by all in the packaging

units to overcome these problems.

Packaging problems with a mean score between 2 to 3 may be considered to

be moderate. Problems falling under this category are such as ‘too much of

packaging’ and ‘energy cost’. The industrial units and government and other related

institutions should initiate and speed up for setting right all these lacunae.

H 0: There is no significant relationship between the size of the units and their

problems attributed to packaging.

The Table 5.02 h shows the Pearson’s correlation for the problems attributed

to packaging cost and the size of the units where the p value is more than 0.05 level of

significance, and it is negatively correlated further in following factors namely

pollution, false information, environmental hazardous, increase the cost, too much

packaging cost, energy cost, lack of innovation and shortage of trained manpower.

Therefore, the null hypothesis is accepted. Hence, it is concluded that there is no

significant relationship between the size of the units and their problems attributed to

packaging.

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TABLE 5.02 h

Pearson Correlations

Environmental
Information

Increase the

Shortage of
Hazardous

Innovation

Manpower
Packaging
Too Much

Incentives
Pollution

Trained
Lack of

Lack of
Factors

Reduce

Energy
Space
False

Cost

Cost
Test

Size of
the Pearson Correlation -.021 -.098 .023 -.250 -.158 -.162 -.180 -.084 -.086 .221
Unit

Sig. (2-tailed) .910 .580 .897 .154 .371 .359 .307 .637 .630 .209

N 40 40 40 40 40 40 40 40 40 40

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So, it is quite natural that some strategies need to be evolved so as to put a full

stop to the problems created by the packaging materials disposed. This aspect is

studied above:

5.07 Packaging Strategy

One of the most critical roles for packaging is promoting products. Indeed, just

as ease-of-use and readability are elements of the strategic packaging mix, packaging

is an important part of a company's strategic marketing mix. Most packages for

consumer products are designed for one of three purposes:

(i) to improve the packaging of an existing product,

(ii) to add a new product to an existing product line and
(iii) to contain an entirely new product.

Redesign of packaging for existing products may be prompted by several

factors. Many times, a company may simply want to breathe new life into a maturing

product by updating its image or adding a new feature to the package, such as an

easy-pour spout. Or, a company may redesign the package to respond to a competitive

threat, such as a new product that is more visible on the shelf. Other strategic reasons

for package redesign are: changes in the product; economics, which may require less

or more expensive packaging; product line restructuring; alterations in market

strategy, such as aiming the product at a different age group; trying to promote new

uses for a product; or legal or environmental factors that lead to new materials or

technology. Even small packaging changes for established brands and products

typically require careful consideration, since a great deal of money is often at risk if a

company alienates or confuses customers.

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The second reason for package redesign is to extend a product or brand line. In

these instances, the packaging strategy usually reflects an effort to closely mimic the

established brand or product, but to integrate the benefits of the new feature into the

existing package in such a way that customers will be able to easily differentiate it

from other products in the line. The chief risks inherent in packaging for extensions

are that the new package will confuse customers or frustrate retailers.

The third impetus for package design is the need to generate housing for an

entirely new product. This is the most difficult type of packaging to create because it

often requires the designer to instill consumer confidence in an unknown product or

brand, and to inform the buyer about the product's uses and benefits. Packaging for

products and brands that are entirely new to the marketplace are the most challenging

to develop. In contrast, packaging for goods that are entering established product

categories require less education, but they must overcome established competition. A

common packaging strategy for such products entails mimicking the packaging of

leading products, which helps to assure the buyer that the product is "normal". An

important part of the product decision making process surrounds the packaging of the

product. An effective packaging strategy can contribute to the firm’s competitive

advantage

While evolving the strategy the producers may have to face certain challenges,

even in a favourable market conditions. After globalization, the environment more

like “buyers market” where the challenges faced by packaging units are many. So

the researcher wanted to enquire about it and brought out the results in Table 5.03.

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TABLE 5.03

Challenges Faced By the Packing Industry (Co)

Strongly Opinion Strongly

Sl. Agree Disagree Std.
Agree Received Disagree Mean
No. Particulars Deviation
No. % No. % No. % No. % No. %
1. Lack of Technology & 162 32.40 212 42.40 63 12.60 55 11.00 8 1.60 3.93 1.015
Innovation

2. Lack of Information 94 18.80 237 47.40 94 18.80 63 12.60 12 2.40 3.68 .996

3. Lack of Product 142 28.40 194 38.80 84 16.80 67 13.40 13 2.60 3.77 1.082
Development

4. Lack of Market 122 24.40 191 38.20 94 18.80 77 15.40 16 3.20 3.65 1.103
Development

5. Lack of Packaging 122 24.40 202 40.40 87 17.40 70 14.00 19 3.80 3.68 1.103
Development

6. Lack of Consumer 127 15.40 160 32.00 82 16.40 103 20.60 28 5.60 3.51 1.228
Preference Research

7. Lack of Consumer 142 28.40 194 38.80 89 17.80 64 12.80 11 2.20 3.78 1.062
Awareness

8 Lack of Government & 102 20.40 192 38.40 110 22.00 76 15.20 20 4.00 3.56 1.096
Institutional Support
Source: Primary Data, 2011 % percentage *Friedman test= 65.072 *for 500 samples p<0.001

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50
47.4

42.4
40.4
40 38.8
38.2
38.8 38.4

32.4 32
No. of Respondents

30 28.4 28.4
Strongly Agree
Agree
24.4 24.4
Opinion Reserved
22 Disagree
20.6 20.4
Strongly Disagree
20 18.8 18.8 18.8
17.4 17.8
16.8 16.4
15.4 15.4 15.2
14
13.4
12.6 12.6 12.8
11

10

5.6
3.8 4
3.2
2.4 2.6 2.2
1.6

0
Lack of Lack of Lack of Product Lack of Market Lack of Lack of Lack of Lack of
Technology & Information Development Development Packaging Consumer Consumer Government &
Innovation Development Preference Awareness Institutional
Research Support

Source: Primary Data, 2011. Fig. 5.02 Challenges Faced By the Packing Industry

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5.07.01 Challenges Faced By the Packing Industry – Consumer Point of View

As long as manufacturers supplied goods directly to the consumers within

their easy reach, didn’t bother about quality packing. When they wanted to out reach

far off consumers, advanced packaging methods and materials were introduced.

Globalization of economy in India brought about revolutionary changes in the field of

packing and packaging. Above all, more importance is given now a days to modern

packing, rather than product improvement, misleading the consumer that any

improvement in packaging products with that of core product itself. In this process of

improvement in packing and packaging today, the manufacturers come across many

problems as listed in Table 5.03.

The researcher wanted to study the awareness level of consumers of these

problems. The details are given in the Table.5.03. 374 respondents out of 500

(74.8 per cent) i.e. almost three-fourth of them stated that they are aware of these

problems and agreed lack of technology and absences or innovation are major ones.

While 162 respondents strongly agreed to these factors, 212 simply agreed. Lack of

product development, lack of market development, absence of packaging

development, lack of consumer preferences research, lack of consumer awareness and

inadequate government and institution support were strongly agreed or agreed by

67 per cent, 62.6 per cent, 64.8 per cent, 44.4 per cent, 67.2 per cent and 58.8 per cent

respectively. So, the level of awareness of consumers of these problems of packaging

is considerable and those strongly disagree and simply disagree towards such of these

problems either because they are ignorant of them (or) they are lacking interest in

knowing about it. The researcher is of the view that the non-committal attitude of

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some respondents, who reversed their opinion, may be because of their limited

interest in the subject matter of discussion.

Moreover, Friedman nonparametric test has been applied to know the

consumers’ awareness on priority among the 8 variables relating to the challenges

faced by the industry as the significant “p” value in the table indicates the priority

differs between the 8 attributes. The Friedman multiple comparison test result shows

that 1, 7, 3, 5 vs 4, 2, 8, 6 i.e., the consumers had given first group of choice to the

awareness on challenges faced by the industry on lack of technology and innovation,

product development, consumer awareness and packing development while giving

second priority to lack of market development, information on problems, government

and institutional support and consumer preference research.

From the above fact, it may be concluded that there has been a significant

challenge faced by the packaging industry towards development of technology

innovation, consumer awareness and packing product development and packaging

development in line with product as well as in the consumers expectations.

H 0: There is no significant uniform association between the respondents opinion

on the challenges faced by packaging industry.

Test used c2” test

TABLE 5.03h Chi-static

Calculate Table Degree of Significance

Factor Inference
Chi Value Value Freedom Level
Challenges Faced by
Packaging Industry 65.072 24.322 7 .001 Rejected
Packaging

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Inference: The calculated chi value is greater than the table value at 1 per cent level

of significance. Therefore, the null hypothesis is rejected. Hence, it is concluded that

there is a significant uniform association between the respondents’ opinion on

challenges faced by packaging industry packaging.

5.07.02 Challenges Faced By the Packing Industry – Industry Point of View

In the contemporary society, packaging plays very essential role in reaching

the product to the doorsteps of consumers. To achieve this, various challenges are to

be faced by the packaging industries. The researcher made a study about this and

enquired the sample units. The Table 5.04 lists out the various challenges faced by

packaging industries as per the survey conducted.

Challenges with mean score between 3 and 4 may be considered as danger and

needed utmost attention of the packaging units and that of the Government. Lack of

government and institutional support, lack of consumer awareness, lack of consumer

preference research, lack of product development, lack of information about market,

lack of infrastructure, lack of warehousing, lack of packaging development, are listed

under this category. Foremost efforts are to be initiated and implemented by all the

sample units for their developments. Packaging challenge with mean scores between

2 and 3 may be considered as moderate. Under this category comes the challenge such

as ‘lack of technology and innovation’.

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TABLE 5.04

Challenges Faced by Packaging Industry (IO)

Sl. Total Mean

Rank
No. Particulars Score Score
1. Lack of Technology and Innovation 54 1.13 IX

2. Lack of Information about Market 161 3.35 V

3. Lack of Infrastructure 159 3.31 VI

4. Lack of Warehousing 157 3.27 VII

5. Lack of Product Development 163 3.40 IV

6. Lack of Packaging Development 154 3.21 VIII

7. Lack of Consumer Preference Research 165 3.44 III

8. Lack of Consumer Awareness 178 3.71 II

9 Lack of Government and Institutional Support 186 3.88 I

Source: Primary data, 2011. IO = Industrial Organisation

The packaging unit needs to reach many consumers so as to bring about

revolutionary changes in the field of packaging. In fact and packaging has to face the

various challenges in a positive way. So that it can further strengthen itself as well as

future markets.

5.08 Evolution of Coca-Cola Packaging Design4

The researcher has highlighted the different packaging designs used at various

stages of a product and it will be varying from time to time, depending upon the

4
http://coolpho.blogspot.com/2010/11/evolution_of_cocacola_bottle_design_html.

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trends, lifestyles and preferences of a consumer with latest technology development.

With an example of Coca-Cola product the various evolution of packaging design has

been presented here.

Everyone can recognize a coke can at fifty feet. It is an American icon. Coke

has roots that dig deep. They first began bottling this giant of colas in 1886 in the

backyard of a pharmacist in Atlanta Ga. John Pemberton is the man that brewed this

concoction for the first time. Coke was sold like beer out of a tap until 1894 when the

owner began first putting the concoction into bottles. With the creation of the glass

bottle the creation of packaging for Coke–Cola first began.

The first packaging changes were not for sales, it was to protect against

forgeries. Competition for packaging would be different and it was felt that people

should be able to discern in the dark by feel if it was the real thing or not.

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In 1977 Coke finally trademarked the bottle shape and the terms Coke-Cola

and Coke. The year 1977 also saw the invention of 2liter bottles. It was in 1960 that

Coke began using cans, until then only cans for drinks were only used in the armed

forces.

Since then Coke has played with a variety of packaging concepts to harden

their brand. In fact, in a lot of advertising classes, one of the projects is to design a

concept brand of soda.

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The presentations below deals with various aspects namely, bottling, design,

name and how to market a new brand of soda use Coke as an example with different

packaging designs.

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Coke is always re-inventing its packaging brand and have used glass, plastic,

cans and are seeking new and greener ways to package its product. They also

introduce special bottles and cans to mark special dates and events.

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5.08.1 Shortcomings of Packaging Organization

There is no end to evolution. It passes through several stages. At each stage

there will be some bottlenecks or short comings. It will be appropriate at this stage to

highlight the shortcoming in packing and packaging yet to be addressed any packing

units in the study area. The study results are given in the Table 5.05.

TABLE 5.05

Shortcomings of Packaging Organization (IO)

No. of
Sl. No Response Total
Shortcomings Industries
No. (50)
No. % No. %
1. Lack of Innovation and
17 34 33 66 50
Modernization
2. It Does Not Use Innovative
24 48 26 52 50
Packaging to Cross Borders
3. Strategies for the Growth of the
19 38 31 62 50
Industries is Lacking
4. Urgent Need to Develop Low
Cost Indigenous Packing 23 46 27 54 50
Solutions
5. There is a Shortage of Trained
Manpower in the Packaging 16 32 34 68 50
Field
Source: Primary Data, 2011. IO = Industrial Organisation

There are many challenges faced by packaging industries, particularly when

they try to satisfy international markets. It could be assumed that they are able to

satisfy Indian consumers, it cannot be true once they go overseas. This is because of

certain shortcoming associated with this packaging units in India so of now. The

researcher thought about it ant attempted in table 5.05 which lists out various

shortcomings that are faced by the packaging industries.

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Out of the 50 sample industries 17 (54 per cent) opined that ‘lack of

innovation and modernization’ was the big problem faced by them and 33 (66 per

cent) did not respond to this question at all. 24 (48 per cent) out of 50 of the sample

industries opined that they does not ‘use innovative packaging separately for overseas

markets’ and 26 (52 per cent) did not respond to it. 19 (38 per cent) of the sample

industries suggested that ‘strategies for the growth of the industries is lacking’ and

31(62 per cent) of the sample units did not recommend this. 23 (46 per cent) of the

sample industries opinioned that ‘urgent need to develop low cost indigenous packing

solution’ to be one of the shortcomings faced by them and 27 (54 per cent) do not

gave any opinion about it. 16 (32 per cent) of the sample units suggested that ‘there is

a shortage of trained manpower in the packaging field’ and the remaining 34

(68 per cent) did not respond to it at all.

5.08.2 Test for Packaging Standards

It is all more important to reverse the present situation by sincerely attempting

to overcome the existing problems. The packaging industries can attain a better future

as and when the existing problems are addressed to the best interest of every one

involved in it.

So as to overcome the above, the packing units may have to follow certain

tests for ensuing packing standards. The researcher enquired about it and the survey

results are given in Table 5.06.

Packaging is a science, art and technology of enclosing or protecting products

for distribution, storage sale and use. The packaging industries have to follow certain

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prescribed rules and regulations regarding type of materials to be used, nature of

quality, contents of non-toxic elements etc. While ensuring packaging standards,

various tests are conducted by the industries. The researcher thought about it and

asked the sample units and the survey results are shown in Table 5.06. The

researcher studied the tests under two headings, namely, is mechanical tests and

climatic tests. In mechanical test, various tests are listed out such as drop test,

vibration test, compression test and rolling test.

TABLE 5.06

Various Tests for Ensuring Packaging Standards (IO)

Sl. No. of
Particulars Percentage
No. Industrial Units

A) Mechanical Tests:

1 Drop Test 32 64

2 Vibration Test 17 34

3 Compression Test 18 36

4 Rolling Test 18 36

5 Drum Test 20 40

B) Climatic Tests:

6 Rain Test 22 44

7 Sand Dust Test 17 34

8 Salt Spray Test 4 8

Source: Primary Data, 2011. IO = Industrial Organisation

Note: The total exceeds the actual sample size on account of multiple responses received.

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Out of 50 sample units 32 (64 per cent) of them conducted drop test to ensure

the packaging standards. Drop tests help to measure the ability of the container and

inside packing materials to provide protection to its contents and to measure the

ability of the container to withstand rough handling. Out of 50 sample units 17

(34 per cent) of them conducted vibration test to ensure the packaging standards. This

test is to determine the ability of the container to withstand vibration and the

protection offered by materials used for interior packing. Out of 50 sample units

18(36 per cent) of them conducted compression test to ensure the packaging

standards. This test is carried out, generally, on empty containers, to measure the

ability of the container to resists external compressive loads applied to faces or

applied to diagonally opposite edges or corners.

Out of 50 sample units 18 (36 per cent) of them conducted rolling test to

ensure the packaging standards. Rolling test helps to evaluate the overall strength of

the container and the cushioning material provided inside and any failure of the

content. Out of 50 sample units 20 (40 per cent) of them conducted drum test to

ensure the packaging standards. Drum test helps to evaluate loaded shipping

containers with respect to general overall durability and for the protection afforded to

the contents against certain hazards of handling and shipment.

Climatic tests include tests such as rain test, sand dust test and salt spray test.

Out of 50 sample units 22(48 per cent) of them conducted rain drop test to ensure the

packaging standards. Rain drop test is conducted in a simulated rain condition to

assess its impact on the test area for two hours. Out of 50 sample units 17

(34 per cent) of them conducted sand dust test to ensure the packaging standards.

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Sand dust test is to evaluate the resistance of a package to the penetration of sand and

dust. Out of 50 sample units 4(8 per cent) of them conducted salt spray test in order

to ensure the packaging standards. This test is to evaluate the resistance of a package

to corrosion by salt spray and to serve as a general standard for corrosion.

Based on the type of material used and the nature of the product suitable test

have been conducted to ensure that various packaging standards are followed.

5.08.3 Types of Designs in Packaging Industry

Based on the above results, the packing units follow certain designs packing as

studied by the researcher in Table 5.07. The results are self explanatory.

Packaging industries have to follow different types of designs of packaging to

suit the particular item of product. The researcher studied about different types of

design pattern used for production by the packaging industries, namely sustainable

design-with high cost, economy design-with average cost, and ordinary design-with

low cost.

Sustainable design of packaging with high cost gives the product long life

extension, reusable, high quality maintenance etc., Example Horlicks (health drink

beverage) comes in rigid plastic container, with same weight, contents also available

in refill carton pack which can be an example of Economy design of packaging with

average cost that gives the product life extension, immediate usage and of course

cannot be reused. A packaging industry can follow sustainable design of packaging

and also economy design of packaging.

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TABLE 5.07

Types of Designs in Packaging Industries (IO)

Sl. No. of Industrial

Particulars Percentage
No. Units

1 Sustainable Design ---High cost 22 44

66
2 Economy Design --- Average cost 33
56
3 Ordinary Design---Low cost 28

Source: Primary Data, 2011. IO = Industrial Organisation

Note: The total exceeds the actual sample size on account of multiple responses received.

The third type of design of packaging is ordinary design with low cost gives a

product simple protection, not reusable, even does not give complete information

about the direction of usage, method of disposable, ingredients etc., Example Atta

flour coming in white plain plastic bags and sugar coming in plain plastic bags etc.,

mostly sold by sub-urban and rural retailers.

The researcher has attempted to seriously analyze the sample units. The

surveys results were shown in Table 5.07. Out of 50 sample unit 22 (44 per cent) of

them follow sustainable type of packaging design with high cost. Out of 50 sample

units 33 (66 per cent) of then were following economy design of packaging which

average cost and Out of 50 sample units 28 (56 per cent) of them were adopting

ordinary design of packaging at low cost.

It is concluded that packaging industries need to follow appropriate type of

design of packaging to suit their products in order to fulfill the needs of the ultimate

consumers.

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5.09 Points to Consider for Developing a Packaging Strategy5

Making Sure that the Packaging is Unique: The packaging must stand out from the

crowd and be different from your competitors.

Making Sure that Packaging Performs the Function Required: Part of the firms

packaging strategy may be to make the packaging a functional part of the product.

The packaging, therefore, encourages the consumer to interact with the product. If it is

a food product, the packaging must also preserve the product for a period of time. The

packaging must also be safe and tested to make sure that consumers can safely use it.

Many users give up using the product if the packaging of it makes it difficult for the

consumer to access and use the product.

Making Sure that Packaging Promotes their Product and Brand: Packaging

must be designed in such a way that it promotes the benefits of the product and

promotes the product brand. The brand name must be clearly visible, and the benefits

of the product should be clear for the consumer to see.

Making Sure that Packaging is Identifiable and It Reinforces the Brand: When

the product sits on the shelf of the retailer the packaging must stand out and be

identifiable by the consumer. The packaging of the product must reinforce not just the

product brand but also the corporate brand. This is really important as consumer who

walk down an aisle of a shop recognize a product through its packaging strategy and

will often pick up a product without double checking their purchase. Although not a

separate part of the marketing mix having a good packaging strategy is an essential

part of the marketing strategy of a firm. A good strategy will comprise of the

5 www.learmarking.net/packagingstrategies.htm.

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packaging being unique, functional, promotes the brand, reinforces the brand and is

easily identifiable by the consumer.

5.10 Ten Strategies for Successful Packaging6

There’s an old saying: “You can lead a horse to water but you can’t make it

drink.” This is a perfect packaging metaphor, because the fundamental truth is that the

final purchasing decision is made at the shelf edge in store. Many businesses make the

mistake of thinking that advertising and sales promotion is what drives the customer’s

decision-making process.

The truth is, no matter how much time and money their marketing team spends on

promoting their product or how much effort their sales team puts into getting their

product listed in the key retail outlets, if their pack fails to deliver at point of sale

because it doesn’t look good then all that investment spent elsewhere is largely

wasted. The ten strategies help the packaging industries to make use of most of all

that advertising and promotional work and set people reaching out for their pack on

the shelves.

1. Making their Product Stand Out

It has to recognize that our products are competing for a few short seconds of

attention. In any one supermarket there are around 40,000 different products on

display and the average shopper spends no more than an hour in store during their

weekly shop. The first and most important rule, therefore, is to get their product

noticed – it must stand out rather than blend in.

6 www.computerarts.co.ut/features/10-strategies-successful-packaging.

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2. Breaking the Convention

Think about breaking the rules of a category. Innocent is perhaps an often and

overused example but still a great one. When it launched into the highly colourful

category of soft drinks, it went with a very white pack as opposed to the category

norm of using pictures of fruit with similarly vibrant fruity graphics. Finally, shape is

the first thing the human eye recognizes, so unique packaging shapes are a great way

to help your product stand out.

3. Products with Purpose

The brands big and small need to have a clear purpose beyond price and

demonstrate that they are good corporate citizens.

4. Add Personality

Building on the idea of leveraging a brand’s authenticity, the next step is to

bring packs to life with a strong personality (what we call ‘authentic attitude’). In

short, think about language and imagery that helps to tell an engaging story rather

than just being matter of fact. Filthy is a new brand of highly indulgent chilled

chocolate desserts and its name gives consumers permission to be unashamedly

naughty.

5. Feel-Good Factor

People live in a frightening world, a world of anxiety fuelled by the media’s

exposure of terrorism, food scares, global warming, child abuse and abduction. An

antidote for this is to make people smile and/or remind us of the time when life

appeared to be safer. Anything you can do to make your designs resonate with today’s

anxious consumer will give you an advantage. Competitors may well copy your

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product specification, but it’s much more difficult to copy how your brand makes a

customer feel. So packs that bring a smile to faces are the order of the day.

6. Keeping it Simple

With so much to say about health, nutrition, cooking or usage instructions on

their products and yet a desire to cut back on the amount of packaging, the key is to

keep things simple. Going back to the principle of ‘standout’, make sure they don’t

compromise legibility by overcomplicating packs with too many messages. In a

one-second world, less is definitely more.

7. Tiered Branding

The own-brand strategy designed to ensure that their stores provide customers

with products that meet their everyday needs in every way. The new own brand

hierarchy involves three distinct tiers: cheapest on display, mid tier and premium tier.

The mid-tier proposition, “An important element of the new offer is the use of a

product advocate” – real customers and colleagues who appear on the packs to

highlight the key benefits of the product and give reasons to buy.

8. The Cost of Transport

Retailers and consumers are ever more obsessed with the green agenda.

There’s nothing new about recycling, but there are a number of new dimensions to

green packaging that relate to transport. In simple terms, the challenge is to ‘ship less

air’. In other words, they need to make sure their packaging is as minimal as possible

because the more products they can get on a pallet, fewer trucks will need to be on the

road. As well as saving on Carbon di-oxide emissions, these measures also save on

transport costs.

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9. Speed to Shelf

If there are 40,000 different packs in a store then every second counts in the

delivery and stocking process. Just think how many man-hours per day they would

save by making their outer shipping case also their ‘display on shelf’ case. If company

can save a retailer just 10 seconds per pack in its time to decant from warehouse to

shelf, company will also certainly gain grace and favour too.

10. Protect Yourself

If company has a good product at a good price, the competition will try to

mimic their success. Hence the company has to make sure its register, patent and

everything it can possibly protect. And if companies have followed the strategies on

these pages, they will almost certainly have protectable equity in their packaging.

So, it could be concluded that the strategy plays an vibrant role in the packing

and packaging industry to the best of benefits of all the parties involved in it, viz.

producers marketers and the consumer, leave alone the packing units. Even the

export market deprives such an attention from the above parties. This was further

enquired by the researcher and the results are given in Table 5.08 which explains

itself.

In the context of globalization scenario, packaging is to cross borders, which

require variety of packaging for the same product. The researcher has made a study

about it and presented the survey results in the Table 5.08, according to which shows

the particulars as to different export markets require different packaging for the same

product. Nearly 48 (96 per cent) of the sample units out of a total of 50 said in the

affirmative that different export markets require different packaging for the same

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product and a few units of 2 (4 per cent) out of 50 said in the negative that

different export markets did not require different packaging for a same product. It is

concluded that varieties of packaging for the same product may be implemented based

on the countries’ economic condition, standard of living, life-style of people, their

culture and capacity of purchasing power of the people.

TABLE 5.08

Variety of Packaging for the Same Product (IO)

Yes No
Particulars Total
No. % No. %
Different Export Markets
Require Different
50
Packaging for a Same 48 96 2 4
Product
Source: Primary Data, 2011. IO = Industrial Organisation

On the whole, this part of the thesis is devoted to analyze and highlight the

nature, importance and scope of packaging strategies in the recent context, taking the

cue from coco cola. The overall inference is that changing the strategy is mainly for a

better future of any commodity on sale with regard to packing and packaging. Also

an attempt has been made to analyze the views of manufacturers on packing and

packaging and based on which useful recommendations have been made. The

suggestions listed by the researcher need proper attention on the part of the producers

so that the entire environment could be taken care of. Thus, the researcher has

brought out a detailed study on various factors influencing packaging in the ensuing

chapter.

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