Packaging

• Author: Thomas Baird
• Pages: 577-579

Page 577

Product packaging used to be regarded as a rather utilitarian marketing activity whose functions were to protect the product and to provide a convenient way to transport and store the product along the marketing channel. Since the late twentieth century, packaging has evolved into one of the more important marketing tools to enhance sales of a product. Product packaging, including the labels on the package, is the last opportunity to influence the purchase decision of the consumer at the point of purchase.

Supermarket shelves are cluttered with multiple brands competing for the attention of shoppers. Some estimates are that the average consumer passes approximately 300 items per minute during a shopping trip to the supermarket. Depending on the product category, up to 70 percent of all brand purchase decisions are made at the point of purchase. Thus, the product package should be considered one of the most important components of a marketing effort. As such, it should be designed to attract the attention of the consumer and promote the sale of the product.

Product packaging can be defined as all the activities that:

are involved in developing and producing the covering(s) and/or container(s) that provide protection for the product;

facilitate product handling and storage;

assist in the marketing and promotional efforts; and

enhance the use of the product by the consumer.

The U.S. Department of Agriculture (USDA) estimated that over 8 cents out of every consumer food dollar was spent on packaging. In fact, many "companies spend more on packaging than on advertising" (Hoffman, 2006, p. 299). In 2004 the total global market for consumer packaging exceeded $350 billion, with a growth rate of about 4 percent annually over the previous ten years. With $98 billion in sales, North America accounted for 28 percent of the market. Food and beverages accounted for approximately 70 percent of all consumer packaging.

Most consumer products, large and small, require some packaging. Refrigerators and other large appliances are normally shipped in a cardboard carton to protect the finish of the unit, and may include internal packing material to protect the mechanical components. On the other hand, small screws are packaged in small plastic boxes or plastic pouches. Some packaging requires minimal information (refrigerator carton), some have selected informational copy (bread), and others have a significant amount of marketing promotional design and copy...