Meaning 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 design, evaluation, and production of packages.
Packaging….Packaging has an enormous impact on each brandssuccess, as it directly impacts the many purchasedecisions that are made at the point-of-sale, and canalso influence customer satisfaction and likelihood ofre-purchase.However, many companies lack consistent andconsumer-driven processes for guiding packagingdecisions, and either forgo packaging researchaltogether or use it inappropriately. As a result, theymake unnecessary packaging changes, or fail toinvest in new packaging systems that could drivesales.
Packaging Research Package graphics and copy are critical marketing variables in many product categories, particularly for non-advertised or under-advertised brands in self-serve shopping environments. The package on a retail shelf is the last opportunity to influence consumers before they decide to buy. It’s the final sales pitch at the “moment of truth,” when the brand-choice decision is made. The better the package design and copy, the greater is the likelihood that consumers will choose that brand. Any new package design, or significant change in an existing package, should always be subjected to the scrutiny of objective consumer research.
Procedure of Packagingresearch Package Optimization Package Screen Package Check Package TestCustom/Ad Hoc Packaging Research Shelf Impact Qualitative Research
Package Optimization Once the basic variables of effective packaging for a brand are identified through qualitative research, PackageOpt™ is a research method to help create prototype packaging concepts, using choice-modeling experiments. Different brand name treatments, messages, themes, illustrations, imagery, colors, layouts, etc., can represent thousands of possible package designs. Each respondent usually sees five to 10 scenarios (i.e., combinations of variables). PackageOpt™ tests subsets of all of these possible combinations to predict the effectiveness of every possible set of elements. The top 10 or top 15 packaging concepts are identified for additional package testing, beginning with PackageScreen
Package Screen A low-cost packaging research system to evaluate early-stage packaging ideas and concepts in batches of 10 to 20 at a time. The package design process typically begins with the creation of a large number of "rough" or early-stage designs. The research objective is to identify the package designs that resonate with consumers, so that creative efforts can be focused on further development of the better designs. PackageScreen® is our Internet-based system to accomplish this winnowing taskWorking A representative sample of 200 to 300 target audience consumers are recruited from our Internet panel. These participants are invited to come to our encrypted Webserver and view the early-stage package designs. Each respondents sees all of the package designs one at a time (front panel only) on his/her computer monitor, in randomized order. Then each person views the package designs a second time and answers a series of questions about each design. The answers to the survey are fed into a mathematical model to calculate an overall score for each design. The highest-rated designs are recommended for further development.
PackageCheck A proprietary Internet-based, monadic packaging research pretesting system to evaluate early-stage packaging ideas. The next step in the design process is to learn more about the better designs so that further improvements can be made. PackageCheck® provides this diagnostic feedback.Working A representative sample of target-audience consumers are recruited to visit our website and view each package design. The respondents see only one package design (i.e., a monadic test) and then answer a series of questions about their reactions, including a series of open-ended questions. The report includes answers to standard questions, compared to Decision Analysts action standards, as well as verbatim responses to open-ended questions. The verbatim detail is valuable to creative teams as they strive to improve the graphic design, as well as the copy, on the package. A typical Package Check study is based on 75 completed interviews.
PackageTest A comprehensive, Internet-based packaging research system to evaluate finished (or near-finished) package designs. As packages near the end of the design process, a more complete evaluation is required, with comprehensive measurements to assess all of the important elements of package designWorking A representative sample is recruited from one of our worldwide Internet panels, and qualified respondents are invited to evaluate the package design. Recommended sample size is 300. Respondents first see the packages front panel, and later view the other panels. The research design is monadic (i.e., no respondent evaluates more than one package design). Then the respondents complete a battery of questions and diagnostic ratings about the package. The report includes answers to standard questions, as well as the coded responses to all open-ended questions, along with our analysis and interpretation. Our SellingPower™ mathematical model, based on a number of key variables, calculates an overall score for the package design and compares it to our action standards
Custom/Ad Hoc Packaging Research Shelf Impact Regardless of the method of testing, one of the focal points of package research is the shelf impact or attention value of the package in the context of competitive packages. Does the consumer notice the package on the shelf? Can the consumer quickly identify the brand? Is the package appealing enough that the brand gets considered for purchase? To evaluate shelf impact, we typically create representative displays of the test package in a competitive environment. The test package is rotated within the display. The displays (with the rotations) are shown to a representative sample of consumers. The respondents are questioned about what they see and what they understand as the length-of-time exposure increases. This methodology helps determine the visibility (or attention value) of a test package, relative to competitive packages. The attention value and brand registration of every package design are constant focal points of Decision Analyst‟s research.
Qualitative Research Before a new package is designed (or redesigned), qualitative research is always recommended. The understanding produced by the qualitative research helps in the package design process, and helps identify the critical variables to include in the quantitative package testing later on. Qualitative research is also valuable in learning how to improve preliminary designs, before those designs go into quantitative screening and testing. Depth interviews are especially valuable for exploring package graphics and copy. What is the package communicating? What is the package failing to communicate? Is the package registering the brand name? What impressions of the brand are conveyed by the package? What elements or symbols on the package are most appealing? Most noticeable? What package elements or symbols resonate with consumers? What about the colors? What are they communicating? What information is missing? Does the consumer have unanswered questions? How does the package compare to competitive packages? And, based on the packages alone, which brand would they choose and why? The consumer‟s reactions to every detail of package graphics and copy are explored in the depth interview
key measurement in Packagingresearch ◦ Attention value of the package design ◦ Purchase intent and “share of market” versus competitive packages ◦ Expected purchase frequency ◦ Brand fit or compatibility ◦ Image projected by the package design ◦ Pricing expectations related to the package design
Dangers for Established Brands In the final evaluation of new package designs for an established brand, great care must be taken to ensure that the new package design is not so radical as to break “continuity” with existing consumers. We have seen radical new package designs trigger precipitous declines in a brand‟s market share. The greater a brand‟s market share, the greater the risks associated with a radical change in package design. If a brand has a tiny market share, the downside risks of a new package design are much lower. Any radical change in package design for an established brand should be supported with massive advertising, as though a totally new product were being introduced.
Finally, if a brand is not adequately supported with media advertising, the packaging must play a greater role in the brand‟s marketing. Without advertising support, the face of the package must be thought of as the principal advertising medium. This makes packaging research even more important, because the package has to carry the preponderant burden of marketing the brand. An optimal package can create positive momentum for a brand. Major competitive packages change from time to time, however, and destabilize the product category, so package designs must be updated periodically and the whole research cycle must be repeated. Packaging is a moving target. Winning the competitive battle at the final point of purchase, the ultimate moment of truth, is the promise and potential of good packaging research.
LEVELS OF PACKAGING Packaging Levels
PRIMARY PACKAGING The customer actually handles the product in its primary packaging. This level of packaging may be the one that the consumer sees. It is kept till it is opened or throughout the product‟s life.Examples
SECONDARY PACKAGING The Secondary packaging provides information to the consumer about the product. Additional layers of protection that are kept till the product is ready for use. Examples
TRANSPORTATION PACKAGING It Refers to the further packaging components necessary for :- Storage, Identification, Protection against damage and Durability.
Innovation in packaging
How to plan before packagingMarketers charged with the task of launching a newproduct or refreshing the look of an established brandshould conduct research to:Understand how consumers shop the product category and what rolepackaging plays in purchase decisionsUnderstand brand and product perceptions and how deeply rooted theyare Identify unmet needsUnderstand how the new packaging departs from consumers’ expectationsand what visual elements can be used to preserve brandidentity Assesshow the new packaging will stand out in a clutteredenvironment among competitor brandsTest different packaging concepts and evaluate the effectiveness ofgraphic elements and label information in adding uniqueness andencouraging purchase intent
NECESSITIES OF PACKAGING Packaging is a very important marketing strategy to glamorize your product in order to attract the consumer‟s attention. Sometimes packaging is so important that it cost more than the product itself in order to lure the consumers to buy it. Most consumers judge a product by its packaging before buying. So it is logical to say attractive packaging is crucial in order to get the first time buyers to buy your products. Packaging should definitely be included in the 4 major P’s of marketing (Product, Place, Promotion and Price).
FUNCTIONS OF PACKAGING Product Identification:- Packaging greatly helps in identification of products. Product Protection:- Packaging protects the contents of a product from spoilage, breakage, leakage, etc. Facilitating the use of product:- Packaging should be convenience to open, handle and use for the consumers. Product Promotion:- Packaging is also used for promotional and attracting the attention of the people while purchasing.
The purposes of packaging Physical protection – The objects enclosed in the package may require protection from, among other things, mechanical shock, vibration, electrostatic discharge, compression, temperature, etc. Barrier protection – A barrier from oxygen, water vapor, dust, etc., is often required. Permeation is a critical factor in design. Some packages contain desiccants or Oxygen absorbers to help extend shelf life. Modified atmospheresor controlled atmospheres are also maintained in some food packages. Keeping the contents clean, fresh, sterile and safe for the intended shelf life is a primary function. Containment or agglomeration – Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils.
Information transmission – Packages and labels communicate how to use, transport, recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and chemical products, some types of information are required by governments. Some packages and labels also are used for track and trace purposes. Marketing – The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package graphic design and physical design have been important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display. Convenience – Packages can have features that add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, dispensing, reuse, recycling, and ease of disposal
IMPORTANCE OF PACKAGING
Increase Sales through Better Packaging This is about the success of combo meals at the fast food restaurants. Before I tell you how you can apply this to any business, I will summarize some key concepts from the study. 1. The customer ordered the combo meal even if there was not a price discount. 2. The customer ordered less food when there were no combo meals offered on the menu. What were the benefits to the customer if there was not a price discount? The customer valued the convenience of ordering the whole meal with one request, i.e. ” I will have the number 3″. You can see that the customer appreciated this convenience, because they ordered less food when they had to read the menu and make individual choices.
New packaging leads to 25% increase inWahoo Premium Ale sales Western Australia’s Gage Roads Brewing Co. has reported a 25% year-on-year increase in Wahoo Premium Ale sales, since the introduction of O-I’s Vortex™ bottle and changes to the beer’s label and secondary packaging. In June last year, Gage Roads became the first company in Asia Pacific to launch the new internal embossed Vortex bottle, featuring distinctive grooves on the inside of the bottle’s neck while providing a smooth exterior for easy labelling. Gage Roads Brewing Co.’s CEO, John Hoedemaker, said the changes to Wahoo Premium Ale’s packaging had a significant impact on sales.
“The introduction of the Vortex™ bottle and colour changes to the brand‟s label and secondary packaging had a positive impact on sales,” said Mr Hoedemaker. “We‟re delighted this innovation in glass packaging has led to more consumers experiencing Wahoo and its award winning great taste.” “The Vortex™ bottle was one of the biggest packaging innovations in 2011 and it‟s no surprise that it helped achieve a great sales result for Gage Roads and its Wahoo Premium Ale,” said O-I Oceania „s Vice President Sales and Marketing, Jacqueline Moth. The Gage Roads Wahoo Vortex™ bottle was designed in Melbourne and is manufactured at O-I‟s Sydney plant. Other internal embossing designs are available to customers wishing to explore this unique branding opportunity.
Heinz is at it again. They have found another way to revamp their ketchup packaging, this time on a smaller scale. We all have been in the situation involving those frustrating and hard to open ketchup packets. Well Heinz has developed a solution to that problem by introducing their Dip & Squeeze packaging. Not only can you peel back the label and dip food into the ketchup, it can also be squeezed out easily by tearing off the top. Also there is no need to grab handfuls of packets because one Heinz Dip & Squeeze holds three times as much ketchup as the traditional packet. The new packaging allows for consumers to enjoy the convenience as well as ease of use. Heinz released their Dip & Squeeze ketchup in 2010 and since then they have traveled 5500 miles on a road trip to provide consumers with a chance to try the new ketchup packaging and listen to their feedback. Heinz has received an overwhelming amount of positive feedback, which has helped bring the Dip & Squeeze ketchup packaging to consumers nationwide.
Coca-Cola has made fridge friendly packaging for its 12 packs. The packaging design is slimmer making it easy to store in the fridge and takes up less room. The packaging is also designed to dispense after one can gets taken out. These examples are just a few of the cupboard to fridge packaging designs that are present. Keep your eyes open for other packaging designs that have left the cupboard and moved to the fridge.
The Heinz® Fridge Door Fit™ bottle launched in 2006 offering storage flexibility – which increased ketchup consumption by 68% - is a good example of how packaging can drive sales. Consumers may not be aware they have this type of needs until they see a solution. In this case new brain connections sprout and with them new expectations about a product or a whole product category are born.