PDF on Role Of Packaging in International Marketing

1. ROLE OF
PACKAGING IN
INTERNATIONAL
MARKETING
SUBMITTED BY
Asawari. S. Pisal
T.Y. BBA – IB
Seat No. - 1461

2. INDEX Introduction
Objectives
Theorotical Background
India's Paper and Packaging
Industry
An Overview on Packaging
Industry of USA
Conclusion

3. INTRODUCTION
International marketing is the application of marketing principles by industries in one or more than
one country. It is possible for companies to conduct business in almost any country around the
world, thanks to the advances in international marketing.
In simple words, international marketing is trading of goods and services among different
countries. The procedure of planning and executing the rates, promotion and distribution of
products and services is the same worldwide.
In recent times, companies are not restricted to their national borders, but are open for
international marketing. With the increasing change in customers’ demands, choices, preferences
and tastes, the economies are expanding and giving way to more competitive marketing. Thus,
organizations need to respond rapidly to the demands of the customers with well-defined
marketing strategies.
Many companies believe that their targets are limited if they only concentrate on a single market
like the U.S. Market and Global marketplace is competitive. Thus, to enrich their market presence
such companies are always on a lookout for better opportunities worldwide.
International marketing simply means the sale and purchase of products and services in a market
that acts as a platform for several other markets. Companies from different countries attempt to
draw customers by advertising their products and services on the same platform.

4. OBJECTIVES
To understand what is packaging
To understand the types of packaging
To gain knowledge about the use and importance of packaging
To know the various advantages of proper packaging
To get to know the different importance of standardized
packaging
to now the basic difference between Packing and Packaging
To present the Role of Packaging in International Marketing
Objectives of this Report are -

5. THEORETICAL BACKGROUND
Packaging is the act of enclosing or protecting the product using a container to aid its distribution,
identification, storage, promotion, and usage.
According to Kotler –
Packaging is a marketing issue because a product must arrive in good condition and because in the
consumer market, in particular, the design of packaging can influence buying behaviour. Thus, packaging
can have an important role to play in the successful entry into a market.
The key points to understand in relation to the performance of packaging are:
The behaviour of each product must be evaluated and understood under the conditions it will be exposed
to
The facilities at the destination must be researched: ports of embarkation and debarkation, points of final
delivery, handling equipment and methods used, customs of the trade, weather, politics, storage facilities
Closures or seals can make all the difference between success and failure
If there is a weakness, export exposure may find it at the end, and the entire effort will have failed
"Packing constitutes all the activities of designing and producing the container for a product."
1.
2.
3.
4.

6. Contains the product
Protects the product
Aids product handling and usage
Differentiates the product and makes it stand out
Forms a part of product marketing strategy
Provides customer convenience
Acts as a communication medium
Adds to the aesthetic value
Importance Of Packaging
Often considered as an essential marketing subset, packaging forms the core distribution, storage, and sales tool
that can be a part of the product itself or an external container made of varied materials.
Packaging is an essential element both for the seller and the customer. While the seller use it as a tool to
distribute, store, and promote; the customer uses it as an important identification and usage tool.
Functions of packaging include
1.
2.
3.
4.
5.
6.
7.
8.
Types of Packaging
1. Primary Packaging
2. Secondary Packaging
3. Tertiary Packaging

7. PACKAGING LOGISTICS
A package should be designed to provide optimal storage, sales, and subsequent waste management efficiency.
Good packaging affects material handling in terms of load stability, stackability, and compatibility with different
forms of mechanization and automation. The choice of a packaging system is a complicated task, and it should
be based on market considerations, performers involved in the process logistics, and environmental
requirements.
PACKAGING SCORECARD
Packaging is also essential for shippers and materials managers closely tied to warehouse and transportation
efficiency functions. Good packaging can positively impact layout and design and overall warehouse
productivity.
DISTRIBUTION PACKAGING
Distribution packaging is distinct from consumer packaging in that, in most instances, distribution packaging is
used for the large-scale shipment of materials or components to be used in the manufacture of other products.
These are typically shipped in multiple quantities and are seldom labelled for use by the consumer.
Difference Between Packing and Packaging
In simple terms, packing just involves wrapping the product, while packaging also consists of the branding
aspect.

8. It protects the product from any physical harm and damage.
It helps increase sales as it adds to the aesthetic value of the product.
It keeps the product hygiene by preventing adulteration and hampering.
Some specialized packaging also prevents the products from going bad.
While packaging forms an important element of a product, it comes with its own disadvantages. These are:
Packaging can be deceptive and may trick the customer into getting a wrong perception of the product.
It adds to the cost. Packaging can add to the cost of the product, which the customer eventually bears.
It adds to the waste that can turn hazardous, especially if it is plastic.
Packaging Advantages
Packaging Disadvantages
ISO Standards for Packaging
ISO standards are internationally recognized specifications for products, services and systems. They are put in place
to ensure quality, safety, and efficiency, so they are clearly important to the packaging industry.
There are several overarching ISO standards which are important in the packaging industry, as well as specific
standards related to packaging within particular industries where regulations are more stringent.
ISO 9001
ISO 9001 is an important quality management standard for many businesses. For packaging manufacturers, it gives a
clear signal to customers that you are able to make ISO-quality packaging. It means that your company runs a fully
integrated quality management system, and your management team can use the ISO 9001 standard’s eight quality
management principles to drive optimal performance across your business.

9. Be the difference between your products arriving safely or getting damaged
Generate more sales
Positively affect the reputation and success of your packaging company
ISO 14001
ISO 14001 demonstrates a company’s commitment to the environment. Environmental impact is a key concern
for many packaging companies, and the ISO 14001 accreditation supports environmental best practice. It means
that companies are actively looking for ways to reduce waste through efficient working processes, designing
packaging with minimal material usage, and using recycled and recyclable materials where possible.
There are also more specific ISO standards relating to packaging within particular industries. For example:
The ISO 15378 standard relates to primary packaging materials specifically for medicinal products. This standard
provides particular requirements for the application of ISO 9001 with reference to good manufacturing practice
(GMP). It helps medicinal packaging companies to reduce the risk of safety hazards and product contamination,
and ensure product effectiveness and longevity.
ISO 13127 is relevant to companies who manufacture child-resistant packaging. It includes mechanical test
methods for reclose able packaging systems.
ISO 13274 relates to transport packaging for dangerous goods. For example, it includes plastics compatibility
testing for packaging and intermediate bulk containers (IBCs).
Benefits to Packaging Companies of Holding ISO Accreditations
Quality is an important requirement for many packaging companies, and ISO accreditations support quality
objectives. Adhering to ISO standards can:

10. Help you exceed customer expectations
Reduce costs through lean and efficient production management
Provide a fully optimised solution to a packaging design brief
Help you meet packaging regulations and legislation
Solve problems in your workflows and boost productivity
Bring an independent perspective to production

11. INDIA’S PAPER AND PACKAGING INDUSTRY
The paper and packaging sector in India is growing rapidly and has significant potential for future
expansion. The industry was valued at $50.5 billion in 2019 and is anticipated to reach $204.81 billion by
2025, registering a CAGR of 26.7% from 2020 to 2025. The growth in the sector is being driven by a surge in
e-commerce, food processing, pharmaceuticals, FMCG, manufacturing industry and healthcare sector.
Additionally, numerous government initiatives including 'Make in India' had a positive impact on the
packaging industry. The paper and packaging industry is currently the fifth largest sector in the Indian
economy and has the potential to achieve pricing levels that are about 40% cheaper compared to European
regions.
The Indian packaging sector has distinguished itself with its exports of flattened cans, printed sheets and
components, crown cork, lug caps, plastic film laminates, craft paper, paper board and packaging
machinery. The packaging segment with the fastest growth includes laminates and flexible packaging,
particularly PET and weaved sacks.
India uses paper as a major source of packaging. The paper industry accounts for 5% of global production.
Demand for paper continues to rise for the packaging of FMCG products and ready-to-eat food. Packaging-
grade paper accounts for 55% of the main types of paper produced domestically in the paper and
paperboard industry.

12. Set up guidelines and certain requirements for design and material of packaging used
Promote the process of moving in bulk quantities
Focus on promotion of centralised industrial activity by encouraging application of necessary and
sophisticated infrastructure such as specialised logistic parks with appropriate facilities as well as packaging
labs to work on designs and carry out tests
Encourage processes to reduce packaging waste by establishing material recovery facilities (MRFs)
Support domestic business to manufacture sophisticated packaging materials
Develop training facilities and certified programmes of the highest order to maintain availability of skilled
labor
Growing Exports of Packaging Material
India is emerging as a key exporter of packaging materials in the global market. The export of packaging
materials from India grew at a CAGR of 9.9% to US$ 1,119 million in 2021-22 from US$ 844 million in 2018-19. The
US remains the major export destination for the packaging industry, followed by the UK, the UAE, Netherlands,
and Germany.
Government Initiative
The government has launched the National Packaging initiative which focuses on the following measures to
promote the sector:

13. An Overview on Packaging Industry in USA
Among the careers available in this industry are packaging designers and graphic designers, who create an
appealing package from the prototype that will be used as the final marketing link between the item inside
and the potential consumer. The most common types of packaging are those made of paper and board or
rigid plastic.
Once the package design is complete, engineers who are experts in industrial, mechanical, or electrical
engineering determine how to efficiently and economically produce the package in mass quantities. As
packaging machines have become more automated and packaging operations more complex, the use of
industrial engineers trained specifically in packaging operations has increased. Computer specialists and data
processing staffs play important roles, and computers have become critical in solving complex problems in
packaging design. Other industry employees include packaging machinery technicians who assist engineers
and production workers who assemble machinery and monitor its operation.
Salespeople sell the packaging materials or packaging machines to manufacturing companies. Many supply
firms employ specialists who can assist the salespeople, including experts in printing, graphic arts, and
structural packaging design. Basic manufacturers of raw materials, such as plastic resins and metal sheet and
foil, also employ packaging technologists to assist their customers.

14. Packaging has pragmatic origins, arising from the need for processed products to be transported and stored
with no damage. For centuries, packaging was as simple as cloth bags, wood boxes, or crates. Most food was
sold in bulk from which the grocer would scoop out the quantity needed and put it in another bag.
It was not until the Industrial Revolution in the late 18th century that packaging became an important tool for
marketing. At that time, so many new products were being manufactured that the consumer had a variety of
choices. Often the package determined whether one product would be purchased over another.
A package is the last link in product communications, and on the crowded shelves of a store, it must serve as
a "silent salesperson" that conveys the image of the product and the company that produces it. The
contribution that packaging makes to the product, however, goes considerably beyond this billboard
function. A package is expected to be functional, too. It must adequately protect the product up to the point
of sale and beyond, and should provide consumers with easy opening and closing features. This is true not
only of consumer-type packages but also of containers used in industrial and military situations as well.
The American consumer is particularly oriented toward self-service. The average U.S. supermarket carried
about 33,055 items in 2018, the most recent data available according to the Food Marketing Institute. While
the consumer wheels the shopping cart around, each product receives only a fraction of a second of the
shopper's attention. It is therefore extremely important that the shape, colour, and graphic image are unique
enough to generate attention and encourage purchase.
Packaging is an important element in the U.S. economy. The industry grosses more than $170 billion a year
and the flexible packaging industry employs nearly 80,000 workers, with many employed in the food and
beverage industry. More than half of all packaging produced is for food.

15. CONCLUSION
International marketing is the application of marketing principles by industries in one or more than one
country. It is possible for companies to conduct business in almost any country around the world, thanks to
the advances in international marketing.
Packaging is the act of enclosing or protecting the product using a container to aid its distribution,
identification, storage, promotion, and usage.
According to Kotler –
"Packing constitutes all the activities of designing and producing the container for a product."
Types of Packaging
1. Primary Packaging
2. Secondary Packaging
3. Tertiary Packaging
ISO standards are internationally recognized specifications for products, services and systems. They are put in
place to ensure quality, safety, and efficiency, so they are clearly important to the packaging industry.
ISO 9001 is an important quality management standard for many businesses. For packaging manufacturers, it
gives a clear signal to customers that you are able to make ISO-quality packaging.
The ISO 15378 standard relates to primary packaging materials specifically for medicinal products. This
standard provides particular requirements for the application of ISO 9001 with reference to good
manufacturing practice (GMP).
India is emerging as a key exporter of packaging materials in the global market.

16. THANK YOU