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Project Report

Submitted for the Degree of B.com Honours in Accounting & Finance


Under the University of Calcutta

Title of the project


“Is attractive packaging really a necessity or eyewash?”
A study on packaging of some selected companies

Submitted by :-
Name of the candidate : Hardik Singh
Registration no. : 1017-1121-1931-16
Name of the college : The Bhawanipur Education Society College

Supervised by :-
Name of the Supervisor : Siddhartha Chattopadhay
Name of the college : The Bhawanipur Education Society College

Month & year of Submission


February’ 2018-19
Annexure – IA

Supervisor’s Certificate
This is to certify that Mr. Hardik Singh a student of B.com Honours in
Accounting & Finance of The Bhawanipur education society college under the
University of Calcutta has worked under my supervision and guidance for his/her project
work and prepared a project report with the tiltle “Is attractive packaging really a necessity
or eyewash?” A study on packaging of some selected companies which he is submitting, is
his genuine and original work to the best of my knowledge.

Signature:
Name:
Designation:
Name of the college:
The Bhawanipur Education Society

Place:
Date:
Annexure IB

Student’s Declaration
I hereby declare that the project work with the title “Is attractive packaging really a
necessity or eyewash?” A study on packaging of some selected companies submitted by
me for the partial fulfilment of the degree of B.com. Honours in Accounting & Finance in
Business under the university of Calcutta is my original work and has not been submitted
earlier to any other university/institution for the fulfilment of the requirement for any course
of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in
this report from any earlier work done by others or by me. However, extracts of any
literature which has been used for this report has been duly acknowledged providing details
of such literature in the references.

Signature:
Name:
Address:
Registration No. :
Place :
Date :
Acknowledgement

I extend my sincere gratitude to Sir Siddhartha Chattopadhay my project guide, for the
successful completion of the project. This project has given me more confidence about the
subject and various concepts of packaging.
My sincerest gratitude also extends to the family, who has taken keen interest in my project
from time to time, and encouraged me to perform the best of my ability.
Last but not the least: I would like thank everyone for their support which helped me
present the project in clear and logical exposition.
Work on this project has proved to be an enlightening experience for me.
Index

CHAPTER PARTICULARS PAGE NO.

1.1 Introduction 6
1.2 Need for study 7
Chapter 1 1.3 Objective of study 7
1.4 Research methodology 8
1.5 Literature review 9
1.6 Limitation of study 9

Conceptual framework
2.1 Scope of study 10
Chapter 2 2.2 National scenario 11
2.3 International scenario 11-12
2.4 Packaging strategy target
specific consumer groups 12
2.5 Packaging and brand
perception 13
2.6 Packaging as a multifunctional
marketing tool 13
2.7 Impact of packaging on
consumer buying behaviour 14-15
2.8 Study of packaging on some
selected companies 15-16
2.9 Study on packaging problems
faced by companies 17-20
Presentation of data, analysis and
finding
Chapter 3 3.1 Data analysis 21-27

Conclusion and Recommendation


4.1 Conclusion 28
Chapter 4 4.2 Recommendation 29

Annexure - Bibliography 30
Chapter -1
Introduction

1.1 INTRODUCTION
Packaging is the science, art and technology of enclosing or protecting products for
distribution, storage, sale, and use. Packaging also refers to the process of designing,
evaluating, and producing packages. Packaging can be described as a coordinated system of
preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains,
protects, preserves, transports, informs, and sells. In many countries it is fully integrated into
government, business, institutional, industrial, and personal use.
Packaging is a structure designed to contain a commercial product, i.e. to make it easier
and safer to transport, to protect the product against contamination or loss, degradation or
damage and to produce a convenient way to dispense the product
Consumer’s intentions to purchase packaged products depend on the degree of extent to
which consumers expect that the product will satisfy their need when they will consume it.
But there are certain situations when they haven’t even heard about the products so much
while entering into the stores, (especially in the case of new products) so the intentions to
purchase that very particular product is basically determined by what is communicated at the
point of sale. So, at the time of sale when the product is not familiar to the consumer, the only
factor that attracts consumers to purchase is Packaging.
It became a critical factor when the consumer decision making process is in progress, and
how they perceive it depends upon the communication elements, which become the key factor
to success for marketing strategies.
.
1.2 NEED FOR THE STUDY

1) My need for the study is to pave a way for an effective packaging that would open
new doors which would help to know the packaging industry better. To develop
package for a new product requires several decisions.
The first task is to establish the packaging concept, defining what the package should
basically be or do for the particular product.

2) Then decisions must be made on additional elements—size, shape, materials, color,


text, and brand mark, plus the use of any “tamperproof” devices. All packaging
elements must be in harmony and, in turn, must harmonize with the product’ pricing,
advertising, and other marketing elements.

3) Next is the engineering test to ensure that the package stands up under normal
conditions;
"Packaging” is also known as the salient salesman and has managed to enter the marketing
literature as 5.P. Packaging is the protector of the product within. It protects the product from
physical impacts such as hitting, wetting, and bruising.Packaging allows for the product to
reach the consumer in the most economic way possible and creates ease of storage.Another
important role is to provide the consumer with ease of choice and usage with the information
it holds. The weight, price, production date, use by date, ingredients, name of producer
company, usage details written on the packaging provides major convenience to the seller
and the consumer.
Packaging may inform the consumer of all the properties of the product.It is almost the
"tongue” of the product.With the development of modern age, decreasing family size and
increase in the number of single households, the production of especially portioned packaging
has increased.Packaged goods are preferred because people have limited time to eat, drink
and shop in the fast tempo of today and such goods have usage and transport ease.Therefore
in developed and developing countries, packaging consumption is higher compared to
underdeveloped countries.

1.3 OBJECTIVES OF STUDY

1) To know why there is a debate whether packaging is an eyewash or a necessity


2) To understand the need for packaging
3) To realize the right and responsibility of the customer
4) To explain the various methods used to attract customer through packaging
5) To provide such valuable information which could be an eye-opener for everyone.
6) To learn about the market of packaging to it extremes.
1.4 RESEARCH METHODOLOGY

Research Methodology is a systematic plan for conducting research. Sociologists draw on


variety of both qualitative and quantitative methods, including experiments, surveys,
participant observation and secondary data.

The study is conducted to find out how many people have the good knowledge about
packaging and are aware of their rights as a consumer.

For the purpose secondary data is been collected from internet, journal, report, research and
other techniques.

Different types of research design is available depending upon the nature of research project
availability of able manpower and circumstance.

1. Research objective -The main objective of the present research study is to examine and
analyze the effects of different packaging cues like package color, package shape, visual
product imagery (i.e. product units picture, picture of spokes character), package material,
front of Package nutritional labels, position of visual and verbal elements on the perception,
product evaluation and purchase considerations of consumers of Selected cities of Gujarat
namely Ahmedabad, Baroda, Surat and Rajkot. The study is done especially for the ready to
eat food products.

2. Research design -The research design is a blueprint for the fulfilment of objectives and
answering questions. It is master plan for specifying the method and procedure for collecting
and analysing needed information.

2. Data collection method


The source of data includes secondary data sources. I have collected the secondary data from
standard textbook, newspaper, magazines and internet sources.
1.5 LITERATURE REVIEW
This chapter presents the results of a comprehensive literature search in several aspects to
this work. The prime objective of this literature survey is to identify those variables, which
are involved in this research study about perception of packaging, that how consumer
perceive about packaging in industry and how they are influence the purchase of consumer
decision in choosing any products.
In early times, 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 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 buyers.

This increased attention to packaging coincided with socioeconomic changes taking


place around the world. As consumers become better educated and more flush, their
expectations of product, and their reliance on them increased as well. Consequently
consumer 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 increment 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.

Packaging today, is regarded, as an essential part of a successful business practice.


Package design 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.

1.6 Limitations of the study

1. Limitation of this study is that enough data in current scenario could not be collected
due to time restraint.

2. Being secondary data it could not give the clear impact as it could have been on
primary data.

3. This study gives the compact report of the total scenario which would have shown in
detail, if worked on primary data.

4. It is my first attempt to undertake such a study thus inexperience is also an obstacle


to accomplish the project in a proper way.
Chapter 2
Conceptual Framework

2.1 SCOPE OF THE STUDY

Packaging plays a key role in product success, particularly in the fast moving consumer goods
industry (Wansink and Huffman, 2001) and can affect consumers’ purchasing decisions at
the point of sale (Sara, 1990). However, relatively little has been written about packaging in
the marketing literature (Johnson, 1998; Saghir, 2002; Rundh, 2005). The purpose of this
paper is to provide a theoretical framework with which to examine how packaging contributes
to marketing in general and new product development (NPD) in particular. The paper reviews
the literature and develops a unique framework that can be used to evaluate more fully the
needs of all parties that are relevant to the development of packaging, including members of
the distribution channel. This framework aims to provide new insight into the creation of new
product opportunities through packaging development in a more systematic way than has
been evidenced in the past.
During recent decades, the importance of the packaging system and its different functions
has been increasing. Traditionally, packaging is intended as a means of protecting and
preserving goods, handling, transport, and storage of products 1. Other packaging functions
like sales promotion, customer attention and brand communication have consistently grown
in importance. It means that when a packaging developer makes a package, it needs to be
designed in order to meet the demand from a sales and a marketing perspective, and not only
from a manufacturing process and transportation network perspective.
The European Federation defines packaging as all products made of any materials of any
nature to be used for the containment, protection, delivery and presentation of goods, from
raw materials to processed goods.
Packaging is built up as a system usually consisting of a primary, secondary, and tertiary
level. The primary package concerns the structural nature of the package; it is usually the
smallest unit of distribution or use and is the package in direct contact with the contents. The
secondary package relates to the issues of visual communication and it is used to group
primary packages together. Finally, the tertiary package is used for warehouse storage and
transport shipping. Here are some take on national and international scenario on packaging.
2.2 NATIONAL SCENARIO
The Indian packaging industry, growing at an annual rate of more than 15 cent, is valued at
$ 15.6 billion (INR 85,000 crore) as in 2010-11. In the next five years, the sector is expected
to triple to around $ 60 bn. The net profit of the packaging industry spurted 104.5 percent
during Q3 FY08, against a growth of 29.5 percent in the December ’06 quarter. The large
growing middle class, liberalization and organized retail sector are the catalysts to growth in
packaging. More than 80 percent of the total packaging in India constitutes rigid packaging.
The remaining 20 percent comprises flexible packaging. There are about 600-700 packaging
machinery manufacturers, 95 percent of which are in the small and medium sector located all
over India. Indian packaging machinery imports are $125 million. The import (customs) duty
for packaging machinery is 25.58 percent for 2007-08. Germany and Italy are the latest
suppliers of packaging machinery to Indian but focus is now shifting on Taiwan, Korea and
China. Indian packaging machinery exports are rapidly growing. India’s per capita packaging
consumption is less than $15 against worldwide average of nearly $ 100. The total demand
for paper is estimated to be around 6 million tonnes, of which about 40 percent is consumed
by the packaging industry.
Laminated products including form-fill-seal pouches, laminated tubes and tetra packs are
growing at around 30 percent per year .“The packaging market in India seems set for the next
level of growth. Strong favourable demographics aside, factors such as increasing disposable
income levels, rising consumer awareness and demand for processed food, and the
multinational giants taking rapid strides in the food, beverages, cosmetics & toiletries and
pharmaceuticals space, are expected to be the key drivers of this growth story. These factors
are forcing both packaging suppliers and end-user industry to shift from bulk packaging to
retail, and unit-level and small-sized packaging. In addition, exploding organized retail
growth and newly relaxed Foreign Direct Investment (FDI) norms in retail and other sectors,
augur well for packaging market in India”. A report by Indian Association of Corrugated
Management.

2.3 INTERNATIONAL SCENARIO

Packaging Industry is growing worldwide at faster rate. The emerging retailing industries
and change in the lifestyle of the people in various countries has led to grow the packaging
industry. The World Packaging Organization Report (2010) has explored the global
packaging industry. According to the report, the global packaging industry is growing in most
of the country and developed countries have larger share in the world economy. Some of the
extractions from this report has been given here. According to report, sales of packaging are
concentrated in Asia, which accounted for 36% of the total in value terms in 2012. North
America and Western Europe totalled shares of 23% and 22% respectively. In 2012, Eastern
Europe was the fourth largest consumer of packaging with a global share of 6%, closely
followed by South and Central America with 5%. The Middle East represents 3% of the
global demand for packaging, while Africa and Australasia each have a 2% share. According
to the study, this segmentation of the market is expected to change significantly by 2018;
Asia is predicted to represent over 40% of global demand, while North America and Western
Europe lose out noticeably.

The report explores the numerous reasons for this expected growth in the world packaging
market, including technical developments, cost per package, sustainability initiatives and,
perhaps most importantly, the growth of the consumer class in the Asia-Pacific, South and
Central America, and Eastern Europe.

The growth of the global packaging industry is being driven by a number of trends, depending
on various geographical regions. Growing urbanisation, investment in housing and
construction, the development of retail chains and the burgeoning healthcare and cosmetics
sectors are driving packaging demand in China, India, Brazil, Russia and other emerging
economies. An increase in living standards and personal disposable income in the developing
regions fuels consumption across a broad range of products, with subsequent growth in
demand for the packaging of these goods.

In terms of economically developed markets, a number of key social and market trends have
been having a major impact on developments in packaging over recent years. These include:
the trends towards smaller households and accompanying rise in demand for more, smaller
pack sizes, the increasing requirement for convenience among consumers, and the growing
number of men interested in health and beauty products.

According to The Future of Global Packaging to 2018, all end-use sectors registered growth
in value terms during 2012. Medium-term forecasts for food packaging demand indicate a
potential growth rate of 3.4% on average to 2018, by which stage it will be valued at about
$284 billion. Consumption of drinks packaging over the period is projected to increase at a
rate of 3.3% on average per annum until 2018, reaching a value of $102 billion.

2.4 Packaging Strategies Target Specific Consumer Groups


Packaging strategies enable marketers to align brands with target groups of consumers. Brand
values are inferred from packaging design and this has an impact on purchase intent,
particularly when brand values are congruent with personal vales (Liman, 2009). As personal
values stem from membership of cultural and peer groups, careful attention is paid to which
values are important to the target group (De Chernatony, 2006). Tobacco industry documents
show clear segmentation with regards to groups such as young people and lower social classes
(Lowe 1997).
The value of such groups are monitored to allow packaging strategies to fit in with any
changes. For instance, value packaging becomes more prominent in times of economic
pressure (Spink, 1996).In respect to innovative packaging, it is more likely to appeal to
individuals who place greater significance on the visual aesthetics of design, and this innate
sense of design has been shown to have a strong effect on the perceived alternativeness of
the packaging and pack innovations are often appealing to youth, who are drawn to novelty
and the desire for something new. (Wakefield et al, 2002). Packaging, therefore has the
potential to increase product sales by tailoring its design to consumer preferences. On a
psychological level. Growing academic attention has been paid to how the use of visual
design factors or peripheral cues (Wansink, 2003), such as colour, shape and size of
packaging, can inherent meaning for consumers (Bottomly, 2006) and also affect their
perceptions, brand impressions, and purchase and consumption behaviour.
2.5 Packaging and brand perception
The packaging of a product isn’t just for holding the contents of the item together. It plays a
much more vital role and marketing experts spend considerable time, effort and money in
getting this aspect right. It’s a well-known fact among psychologists that what you see on the
package of a product will influence what you think of the brand and the contents and
ultimately whether it results in a purchase. If you can’t see, feel taste or hear the contents or
a product, then its packaging is all that you can go by to get an indication of what’s an offer.
Marketing professionals widely accept that packaging colour is the biggest influence on
product and brand perception. This makes sense since, colour is usually the first thing to
register in our minds as we rush around a busy market trying to make decisions on what to
buy. In fact, marketing experts to as far to say that the choice of colour can evoke certain
feelings and emotions, which are transferred onto the product or brand. Therefore,
understanding how the emotions evoked by different colours and relating these to year brand
or product is essential.
Graphic Choices: The use of graphics and typography on packaging can also strongly
influences a customer’s opinion of the product and brand. There is a huge different in terms
of styles, fronts and sizes of topography and how they are perceived.
Package Shape: The shape of a package can strongly influence how the item is perceived as
well as create interest in it. Unusual shaped packaging can work well in some circumstances
and can boost a brand’s appeals, example, using products marketed at children. But in other
cases, where consumers expert certain products to be of a standard shape, then it might only
evoke suspicion and mistrust.
Packaging materials : How a product feels in its packaging and what materials the packaging
consists of, can also form ideas amongst consumers about product and branding. Sturdy, solid
materials and well-made packagers will give the impression of reliability, trust and
confidence..
2.6 Packaging as A Multifunctional Marketing Tool
Packaging is an effective marketing medium which helps to build consumer relationships
through possession and usage. Packaging innovation, design and value packaging are used to
promote the product, distinguishing product from competitors, communicate brand values
and target specific consumer groups. These packaging strategies, together with the visual and
structural aspects of packaging design, such as colour, size and shape influence consumer
perceptions and purchase and usage behavior, and give packaging an important role at point-
of-purchase and also post-purchase. Packaging also has a close relationship with the product.
2.7 Impact of packaging on consumer buying behaviour

Many packaging elements are factors that influence the buying behaviour of consumers
such as, packaging colour, printed information, packaging material, design of wrapper,
printed information, brand image, innovation and practicality. Colours used in packaging can
help draw consumer attention. Colour of packaging is important because it used by companies
to differentiate its product from other competitors. Therefore, colors play an important role
in a potential customer’s decision-making process. Companies use different colours for
emphasizing a different mood, like, black is used for power, blue for trust, red for energy,
green for balance or organic and fresh. Colour is an essential component of packaging
because consumers expect certain type of colours for particular products (Keller, 2009).
Different colours also symbolize different meanings to consumers. For example, orange,
yellow, purple they have different meanings according to the consumer perception and
culture. According to Singh (2006) colour perceptions vary across cultures and most of the
religions are believed to have their sacred colours.
So, failing to pay attention to the design of the packaging can decrease the chances of
being visible and attractive, which can result in using sales. Labelling provides information
regarding the product category, products ingredients, and product instructions. Consumers
when making their mind whether to buy or not to buy a product they are guided not just by
the taste, but also some other extrinsic factors such as, brand awareness, labelling, price and
origin. According to Morris, J (1997) product labels help consumer to differentiate a product
more easily. Labelling helps consumers spend less time needed while searching for products
that are decided to be bought by them. Consumers under time pressure their decisions are
influenced when the package comes with a distinctive appearance that contains simple and
accurate information (Silago, and Speece, 2004). Nowadays, there are consumers that pay
more attention to label information since they are more concerned with health and nutrition
issues (Coulson, N.S., 2000). The material used in packaging is an important element which
prevents the product from any damage or loss. It is more likely that the high quality material
might attract customer more than low quality material. So, packaging material has strong
impact on buying behaviour.
According to Smith and Taylor (2004) consumers link the packaging materials is
associated by consumers with certain essential values of the product. In addition, consumer
perceptions regarding certain materials could change the perceived quality of a product
(Smith and Taylor, 2004). Hollywood et al., (2013) carried a study on milk packaging. They
tried to find out the impact of the three packaging materials, glass, plastic, and cardboard.
Most of respondents in that study agreed that the use of plastic containers were better than
cardboard and glass packaging. Ulrich R. Orth (2009) Packaging is used for identification of
the product. Play an important role in attracting the consumer. Children are likely more
sensitive in case of wrapper design. So company has to make a wrapper design which attracts
the children as well. Good and well planned designs are eye-catching and can differentiate
products on the shelves and can attract consumers more easily. So, attractive design, graphics,
colours, printed lines, different signs and symbols as well as combinations of various
materials can encourage consumers to notice and touch our product, thereby inspiring them
to try and eventually buy the product. Printed information contain all the information related
to the product quality, price, description which help to identify the brand.
According to Shah et al., (2013) labelling is one of the most visible parts of product and
an important element of the marketing mix. The information on packaging is an important
component since it can support marketing communication strategies of companies, establish
brand image and identity. There is a big consent among many scholars and practitioners about
the importance of brand image with products. An image can create value to consumers by
helping to process information; differentiate their preferred brands, facilitating buying, giving
positive feelings, and providing a basis for product extensions (Aaker, 1991). Moreover,
brand image can be defined as a unique bundle of associations within the minds of target
customers.

2.8 Study on Packaging of some selected companies

Common take on packaging by companies


In today’s scenario, most of the companies use packaging as an important marketing tool
because of the following factors:

 The packaging enables the self-service, as in the case of purchases done in the
supermarkets and retail mart the customers select the products on their own without any
assistance from the retailers. Thus, the company must design its product package in such
a way, that it is capable enough to draw customer’s attention towards it.
 It helps in increasing the consumer affluence, which means the customers are willing to
pay even more for the convenience, a0ppearance, dependability of the better packages.
 The packages help in increasing the brand recognition among the customers. As soon as
the customers see the package, they can instantly relate it to the company or brand. For
example, the Brooke Bond’s Taj Mahal Tea comes in the blue pack with an image of a Taj
Mahal on its box; this gives an identity to the brand.
 The innovative packaging also here, the company gives a unique design to its product
package with the intent to grab customer’s attention. For example, the calcium Sandoz
bottles targeted at children and women have been designed to make them attractive to the
target segment (A dog shaped bottle for kids, while a lady-shaped bottle for women).
Thus, the packaging is capable of influencing a buyer to initiate sales since the buyer comes
in contact with the package first and then after with the product.
An Article on Marketing strategy of Lays
If you run a massive food brand, how do you offer a personal touch? For the marketers at
Lay's it means giving buyers the chance to design their own bags. The potato chip brand is
launching a program in which people can create custom bags by uploading a personal picture
and phrase depicting their "favorite summer moment." Lay's will then use the digital design
to create real bags and ship them directly to the consumer, set to arrive near the Fourth of
July.
But Lay's fans will have to act fast. PepsiCo-owned Frito-Lay is capping the program at
10,000 bags. Still, that is a significant customization effort for a brand used to pumping out
countless monolithic designs.
"The packaging and [research and development] teams have invested a lot of effort to figure
out how do we do these small customized packaging runs within the complexity of the
millions of bags we produce," said Frito-Lay North America CMO Ram Krishnan.
In a separate program, Lay's is creating special bags with designs made from ultraviolet ink
that change when they are exposed to sunlight. "It is the first time I think anyone has ever
done UV-activated packaging for the consumer," Mr. Krishnan said.

Custom and unique packaging programs have emerged as a critical tool for big consumer-
packaged good brands that can no longer rely on traditional advertising to break through.
Consider Coke, which brought back its "Share a Coke" program in the U.S. this summer after
a successful run last year in which people scooped up bottles in search of their own or a
friend's name on the label.
While Coke’s effort randomly populates store shelves with packages using hundreds of popular first
names, Lay’s is putting the consumer in charge of creating their own unique bags. Lay’s execs are
counting on social media to increase the program‘s reach well beyond the owners of the 10,000
custom bags. For instance, Lay’s will send a digital image to the consumer as soon as the bag is
designed, hoping the user will share it broadly. When the bag is delivered, chances are people will
boast about them again on their social networks – at least that is the goal. “I would say we are going
to reach millions and millions of people very easily” Mr. Krishnan said. “Consumers want this two-
way conversation,” he added
2.9 Study of packaging problem faced by some companies
Here are some examples of the top packaging blunders that companies make, as well as some
potential solutions.

“Doritos chip bag”

The problem: The typical doritos chip bag is made from up to seven layers of foil and plastic.
Companies like this because these bags are light, reduce shipping volume, don’t take up much
space on a shelf, and are graphics friendly. The downside is that there’s currently no
machinery to separate these layers, so they aren’t recyclable.

“It’s not cost effective and there would be no market for the separated material,” explains
Lawrence Black, director of global business development at Waste Management, a US-based
environmental solutions provider. “It is expensive to fix and it all comes back to is there a
market for the material. If there’s not an ongoing market for the material it won’t get
recycled.”

Who does it? Multi-layered packages are popular with consumer giants, particularly snack
food manufacturers such as Frito-Lay and PepsiCo.

What is the solution? Unfortunately, there is no easy solution: according to sustainability


experts at Waste Management multi-layered packaging is considered the worst of the worst
when it comes to recycling. “When things are mixed together, you devalue the product,” says
Tom Carpenter, executive director of Waste Management’s sustainability services. “If I had
two boxes, and one is all cardboard, the other box had metal strips, the second would be too
costly to recycle.”

Consumer education can go a long way toward increasing the potential for recycling. For
example, packages with simpler multilayers, such as cereal boxes and bags, need to be
separated for recycling. Another option is “upcycling”: Consumers can wash out used bags
and reuse them for sandwich bags, or for craft projects, such as the potato chip wallet.
“Dannon single serving yogurt”
The problem: Size and material are two of the biggest factors for recyclability: in general,
the smaller a package and the greater its mix of materials, the less recyclable it is. While
consumers and businesses may think that sleek, recyclable containers are sustainable, experts
note that single-serving foods, including yogurt and coffee cups, are especially problematic.
Their small size and – in the case of yogurt cups, difficult-to-recycle plastic – tend to make
them a tough sell for recyclers.

Who does it? Most common single-serve foods, including cups of coffee, violate the material
and size rule. Yogurt, especially, is a problem – the majority of yogurt companies, ranging
from giants like Dannon and Chobani, to smaller independent producers, use packaging that
is difficult to recycle.

What is the solution? On the recycling end, advances in technology could lead to new
sorting machines and more sustainable polymers. Alternately, some companies, including
Unilever, have redesigned their packaging to make it more sustainable. On the consumer end,
many coffee chains, including Dunkin’ Donuts and Starbucks, allow customers to use
reusable coffee mugs.

Another option is compostable, biodegradable packaging. Some supermarkets, like Whole


Foods and Trader Joe’s, are increasingly utilizing compostable and biodegradeable
containers. Unfortunately, this is still uncommon. Green-conscious consumers can also opt
to purchase larger size items and transport them in reusable or washable containers.

Coca cola, Pepsi (The post-consumer plastic bottle)


The problem: While plastic bottles, which are popular with both beverage manufacturers
and consumers, have come a long way when it comes to recycling, there is still room for
improvement when it comes to the percentage of bottles that are recycled.

Who does it? Most beverage manufacturers, including Coca-Cola and PepsiCo, use PET
(polyethylene terephthalate) plastic bottles.
What is the solution? In some ways, plastic bottles are a case study in how companies can
use innovations and consumer outreach to improve a recycling problem. A 2013 report from
the National Association for PET Container Resources showed that New York’s bottle
deposit law and a rise in collections in California drove up US gross recycling rates of PET
bottles to 30.8%.

But there is still room for improvement, and companies, including both Coca-
Cola and Pepsico, have launched programs to make recycling more efficient and convenient.
Venues where plastic bottles are consumed have also gotten involved. Earlier this year, the
National Resource Defense Council released the “Guide to Composting at Sports venue” and
many of the US’s major sports arenas and venues have established programs and replaced
their trash cans with recycling bins.

Amazon, Flipkart, eBay etc ( The online purchase)


The problem: Companies and private sellers that deliver products through the mail often
over-package, putting a pre-boxed item in a second box, and sometimes even a third one.
This practice, which Dancy calls the “Russian doll” approach, is exceedingly wasteful.

Who does it? Sellers on the eCommerce network, including eBay.

What is the solution? One option is to use sustainable packing materials, rather than the
traditional styrofoam. There are numerous sustainable options, including packing materials
made from corn starch or sorghum, which can be composted. And New York-
based Ecovative design has developed fungus-based packing materials that are being used by
Dell, Crate and Barrel and Puma, among others.

Ed Kastenbaum, general manager of San Francisco-based The Packaging Store, and vice
president of the Retail Packaging Association, packs with recycled pulp instead of Styrofoam
when selling to wine shippers. Kastenbaum says that the pulp wine shippers are widely
available. The market change started more than 10 years ago & now the vast majority of wine
is shipped in this manner by wineries, wine clubs, and wine retailers.

Colgate (Toothpaste)
The problem: The small size, blended material and leftover Colgate toothpaste inside
toothpaste tubes – and other tube-based containers – make recycling almost impossible. As
for toothbrushes, their slender shape and blend of plastic and nylon bristles make them tough
to disassemble and recycle.

Who does it? Toothpaste and toothbrush manufacturers, including consumer giant Colgate-
Palmolive, manufacture these non-recyclable products.
What is the solution? Since being served with a shareholder resolution by As You Sow
(AYS) a non-profit environmental protection group in 2012, Colgate-Palmolive has been
working with AYS to create a recyclable toothpaste tube or package.

Pizza hut, Dominos, etc (The dreaded pizza box)

The problem: Pizza boxes – and many other takeout containers – are made of recyclable
materials, but when cheese or other food scraps stick to the cardboard, they are no longer
recyclable.

Who does it? Consumers and food delivery places.

What is the solution? Consumer awareness and letting consumers know that the box is
valuable. Although consumers and yes pizza companies can’t avoid the take-out pizza with
cheese attached to lid, some companies have turned to environmentally friendly solutions
including using compostable containers and specially designed recyclable-friendly pizza
boxes.
Chapter-3

Presentation, analysis and finding

3.1 DATA ANALYSIS

Data analysis has multiple facets and approaches, encompassing diverse techniques under a
variety of names, while being used in different business, science, and social science domains.
In today's business, data analysis is playing a role in making decisions more scientific and
helping the business achieve effective operation.

As volume and diversity of digitally stored data keeps growing, the importance for the
business to create a holistic picture of the customer continues to grow. In this paper, we
discuss the possibilities available to researches with four different streams of data. First we
discuss data fusion, merging of proprietary databases with market research data, which
enables appending attitudinal data to customer behaviour. Secondly best practices in
packaging available in the market and helps customer to choose a product covering every
questionable basis.

The analysis and findings that went through in making of this particular project is co-
operating with the thought that packaging industry has changed with the due course of time
for every item available on earth. It shows packaging is merely not an eyewash and totally
effective for product from the manufacturing process to sale.
Here are some finding and analysis presented :-

Why food packaging account for highest number of market share?

INTERPRETATION:

According to the survey conducted Food packaging as a market contains most part because
of the rise in the technology of food and other items with the fact that food is perishable and
therefore the packaging needs to be sustained to make it preferably fresh for the consumer.
Packaging protects against damage or contamination by micro-organisms, air, moisture and
toxins.

It prevents product spilling or leaking. Nutrition, ingredients and sell-by dates are important
not only to the consumer, but to grocery stores as well. Bar codes help stores to track
inventory and sales. Food Packaging plays such an important role in the preservation and
marketability of a product, many companies seek a contract packaging service to help them
obtain the best quality packaging available. Benefits to a co-manufacturer include cost,
speed, quality and innovation.
Survey on packaging preferred by end consumer

The survey was taken by 500 adults in the UK who were asked which packaging material
they would rather use; glass, metal, paper & cardboard or plastic. Needless to say, paper and
cardboard came up highest on the response results, for being the easiest to store, lightest in
weight, safest and most practical to use.

Why Light weight packaging is considered to be the best option?

INTERPRETATION:

UK will be using 32,850 million more rigid plastic and lightweight packs in 2017 than they
were in 2012, making these the fastest-growing segments in the UK packaging industry. The
requirement for greater convenience and cost-effectiveness will drive the use of lightweight
flexible and rigid plastic packaging with innovative pack shapes, closures and dispensers.

The key advantage of lightweight packaging is its low intrinsic weight, which ensures lower
transportation overheads and reduces the overall supply chain costs. These incremental
weight savings not only provide cost benefits, but also reduce transportation costs and overall
breakages.
Global Market Insights, Inc. adds a new Aseptic Packaging Market research report for the
period of 2018-2024 focuses on the major drivers and restraints for the global key players
providing analysis of the market share, segmentation, revenue forecasts and geographic
regions of the market.

Why the forecast of packaging market growing so fast?


INTERPRETATION:
International market research studies are prophesying rising sales in the global packaging
industry right up until 2020. However, experts also believe that this industry is facing a
transformation. They say that new demographic conditions, new customer demands, growing
purchasing powers on emerging markets and an increasing use of technical facilities are
causing many to rethink the use of packaging materials and manufacturing processes.
Many forecasts mention certain elements in one breath: convenience, sustainability,
flexibility, efficiency, counterfeit protection and traceability, while associating all these
parameters with low costs. After all, they say, these are the demands of today’s consumers –
demands that need to be met. Moreover, the so-called Fourth Industrial Revolution is
increasingly gaining ground in the everyday lives of the global population. Intelligent and
modular software systems of our digitally networked Industry 4.0 are, among other things,
ensuring transparency, safety and reproducibility for automated production processes. And
of course multi-layer packaging, made from different combinations of materials, will be
gaining in significance throughout the world. In particular, packaging experts believes that
there is considerable potential for growth in the African nations, the Middle East and Asia.
Furthermore, China and India together are apparently likely to reach around 30 per cent of
the global protective film market.
Trends driving the need for packaging

A survey of marketing and package professionals finds that the chief focus of the packaging
world will shift over the next decade from cost to sustainability. In 10 years, life-cycle
analysis and recyclability of packaging will be the most important criteria for evaluating
sustainable packaging.
What is the cause of dependence on sustainable packaging and not attractive or an
eyewash packaging which purely believes on the look?
INTERPRETATION:

Increasing consumer pressure, instigated by what is now known as the Attenborough effect,
and recent pledges from the UK government to eliminate plastic waste by 2042, have forced
brands and retailers to rethink the sustainability of their product’s packaging. Consequently,
numerous brands, including McDonald’s, Deliveroo and Iceland, have made pledges to go
plastic free or to use 100 per cent sustainable packaging.These promises are a win for a
brand’s public relations as well as the environment.

The professionals surveyed believe the sustainability trend will require an increasing focus
on life-cycle analysis (LCA) data and proof of companies' sustainability claims, driven by
consumers' "increased value for recyclability and perceived 'greenness' of packaging."
Manufacturers will need to make improvements in right-sizing packaging while minimizing
packaging failures. In 10 years, LCA and recyclability of packaging will be the most
important criteria for evaluating sustainable packaging, again overtaking cost.
Packaging as an all rounder

In today’s world packaging is not only a great source of advertising for a product but the
companies sees it in a manner that it provides various other functionality. Hence a heavy
amount is spent without blinking an eye by companies on product.
Does packaging proves to be an all-rounder and not just a source of advertisement?
INTERPRETATION :
The protective function of packaging essentially involves protecting the contents from the
environment and vice versa. The inward protective function is intended to ensure full
retention of the utility value of the packaged goods. The packaging is thus intended to protect
the goods from loss, damage and theft. Promotional material placed on the packaging is
intended to attract the potential purchaser's attention and to have a positive impact upon the
purchasing decision. Promotional material on packaging plays a particularly important role
on sales packaging as it is directly addressed to the consumer. This function is of subordinate
significance in transport packaging. While product awareness is indeed generated along the
transport chain, excessive promotion also increases the risk of theft.
The packaging materials and packaging containers required for producing packages must be
stored in many different locations both before packaging of the goods and once the package
contents have been used. Packaging thus also fulfil a storage function.. Examples are the
nutritional details on yogurt pots or dosage information on medicines. Hence proved that a
package is not just a source of advertisement but also a necessity.
Packaging machinery is primarily used by manufacturers of food and beverages, household
goods, and pharmaceuticals and medical products, which combined comprised two-thirds of
sales in 2016, according to IBIS World. During the past five years, these sectors have fared
well, recording strong post-recession growth and, in turn, creating steady demand for
packaging equipment
What is cause of sudden decline in packaging machiney manufacturing revenue?
INTERPRETATION:
End-users are increasingly looking for packaging machinery with a lighter environmental
footprint. Equipment designed to reduce the consumption of packaging materials and
ancillary products as well as machines that lower energy consumption, decrease water
usage, and cut down on the use of inks and adhesives are likely to have higher recovery
values.
Therefore there is a sudden decline in the machinery manufacturing revenue. Consumer
today is more smarter than it was before, changing and alarming situation of environment
due to packaging industry is shifting the needs and preferences of the end consumer to more
recyclable package.
Chapter 4
Conclusion and recommendation

4.1 CONCLUSION
To conclude one must say that packaging as an eyewash or a necessity would caught up
with a mixed emotion of thoughts as there was a time when it used to be an eyewash but in
modern era it’s beneficial for both the consumers and the manufacturer hence it has become
an necessity. Packaging is indispensable component of modern lifestyle. The key trends
fostering growth in developed packaged food markets are convenience, functionality and
indulgence. The real value of packaging is that the package is an integral part of the product
today. While corporate functions divide the component parts, the consumer does not
differentiate between the product, the package and the equity. They are one .Besides, food
products frequently require the general marketing approaches and techniques applied to the
marketing of other kinds of products and services.
Furthermore, the objective of all quality assurance systems exercised by food manufacturers
and processors, is to produce safe products that comply manufacturer’s specifications,
including the requirements established by governments. The outcome to prevent unsafe or
poor-quality products from reaching the marketplace. On the top of that, the companies that
are the most progressive in the management of the supply chain are expected to be the most
successful and profitable. Last but not least, companies should look forward to emerging
trends for business success.
Whatever being thought, an eyewash or an necessity but the industry itself creates 1 trillion
dollar annually which already give an indication towards a global necessity of it.
4.2 RECOMMENDATIONS

1. T h e i n f o r ma t i o n p r o v i d e d b y c o mp a n i e s o n p a c k e t , t h e f o n t s i z e i s
mu c h s ma l l e r which is not seen clearly to all therefore companies should
give it in appropriate size for clear view to all on food packet.

2. The 2nd most important thing is that in some cases abbreviation are used for few words
that is not understandable to some people. So there should be full name must
be given with abbreviation, if it is use.

3. During conversation with respondents many of them said that in some


product they were not able to find the information easily due to the information is
given in some case at the bottom of the packet, in some case at the upper side of the
packet, and sometime they did not find the information that is useful to them. So
therefore companies should try to give it at a fixed place every time which can be
found by the customer easily.

4. The information provided on the food packet should be easily visible.

5. Everything about the product should be clearly stated without any flirty words that
would distract the customer for the ultimate goal he is buying the product for.
Annexures
BIBLIOGRAPHY

BOOKS
1. Packaging an art.
2. Soul of a product.

WEBSITES
1. https://en.wikipedia.org/wiki/Packaging
2. https://www.ukessays.com/essays/education/packaging
3. https://www.entrepreneur.com/encyclopedia/packaging
4. https://www.packaging-labelling.com/

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