Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
NAGINDAS KHANDWALA COLLEGE
OF COMMERCE, ARTS AND MANAGEMENT STUDIES MALAD (WEST)
A
A PROJECT REPORT ON :
“Role of Packagin...
ACKNOWLEDGEMENT
It was an immensely pleasurable experience in working on this project on the Topic -
Role of Packaging in ...
(2)
Index
Contents: Page No:
1. Introduction to Packaging 5 - 13
2. Packaging Industry: 14 - 19
 History
 Overview
 Maj...
(3)
Contents: Page No:
12. Packaging as a Medium to Increase Sales 39 - 44
13. Trends of Packaging 45 - 47
14. Case Study:...
(4)
1. INTRODUCTION
“JO DIKHTA HAI WOH HI BIKTA HAI”
The earlier approach to marketing was simple enough: make sure the pr...
5
SHOW YOUR PRODUCTS TO CUSTOMERS :
Buyers spend lots of energy in buying and developing the merchandise before it
finally h...
Meaning :
Packaging is the science, art and technology of enclosing or protecting products
for distribution, storage, sale...
History :
From the very earliest times, humans consumed food where it was found. Families
and villages made or caught what...
8
Paper and Paper Products :
One way of placing packages into categories is to describe them as flexible, semi
flexible, or ...
Glass:
Although glass-making began in 7000 B.C. as an offshoot of pottery, it was first
industrialized in Egyptian 1500 B....
Metals:
Ancient boxes and cups, made from silver and gold, were much too valuable for
common use. Metal did not become a c...
Plastics:
Plastic is the newest packaging material in comparison with metal, glass, and paper.
Although discovered in the ...
A Review:
From containers provided by nature to the use of complex materials and processes,
packaging has certainly change...
2. PACKAGING INDUSTRY
A. History :
In preindustrial society, packaging of food was far from being unknown. It was used
for...
Canning :
Two individuals in England are given credit for applying and improving Appert's
invention, Bryan Donkin and Pete...
15
B. Overview :
The global packaging industry is approximately a $433 billion market. The domestic
packaging market, which i...
Indian Packaging Scenario:
1) Indian Packaging Industry is worth Rs. 2, 00,000 crores with growth rate varying
from 5% in ...
C. Major Players in the Market :
1. Flexible Packaging:
a. Industry :-
 Consists of typically multilayered laminated shee...
3. Polyester Films:
a. Industry:
 Market around Rs. 850 crores (US $ 195 mn.)
 First segment to enter packaging
 Initia...
3. PACKAGING TYPES
Protecting goods is very important. Food, electronics, clothes, furniture and other
consumer goods all ...
 Textile Packaging:
There are some goods that are best protected by textiles. For example, there are
custom-made textile ...
4. FUNCTIONS OF PACKAGING
1. Protective Function :
The protective function of packaging essentially involves protecting th...
22
3. Promotion Function :
Promotional material placed on the packaging is intended to attract the potential
purchaser's atte...
5. PACKAGING AND MARKETING
Thousands of new products are introduced every year, more than 15,000 to be exact.
How can your...
.
Sales :
The entire focus of a marketing department is to strategize methods to sell the
company's products. Branding and...
25
6. WASTE MANAGEMENT OF MATERIAL
USED IN PACKAGING
Package development involves considerations for sustainability, envir...
potential to contaminate emissions and ash from incineration. Packages should not be
littered.
26
7. OVERVIEW OF FMCG INDUSTRY
The FMCG industry manages consumer packaged goods production, distribution to
marketing. The ...
FMCG eyes 15% growth this year :
The Rs. 96,000 crore FMCG industry is expected to witness a lot of action in 2012.
With t...
Indian Competitiveness and Comparison with the World Markets:
The following factors make India a competitive player in FMC...
8. Marketing Strategies adopted by FMCG
Marketing strategy is a process that can allow an organization to concentrate its
...
FMCG PRODUCT LINE
31
9. ROLE OF PACKAGING IN FMCG PRODUCTS
The importance of packaging design as a vehicle for communication and branding
is gr...
Examples of FMCG generally include a wide range of frequently purchased
consumer products such as toiletries, soap, cosmet...
33
The Relevance of Packaging as a Marketing Tool:
Never underestimate the importance of packaging. The way that consumers re...
34
1. The Point Of Sale :- The 1st Moment Of Truth
The importance of making an impact at the point of sale cannot be underest...
2. Usage :- The 2nd Moment of Truth
Unlike advertising exposure which can be relatively brief, packaging continues to
buil...
10. FACTORS INFLUENCING PACKAGING DECISIONS
Packaging decisions are important for several reasons including:
1. Protection...
37
11. PACKAGING EXPENDITURE
Packaging is often criticized on the grounds of cost and of being a waster of natural
resources ...
12. PACKAGING AS A MEDIUM TO INCREASE SALES
“Catching consumer’s attention is the first step in making the sale”
Packaging...
39
4. Innovation :-
Novelty has exceptionally strong appeal. An innovative pack can even make "new
products" out of famili...
40
Increase Sales with Functional Packaging:
The next time you buy a product, consider the work that goes into its
packagi...
41
The Importance of Packaging:
Packaging is a very important marketing strategy to glamorize your product in order
to attrac...
CASE STUDY :
Bru : Happiness Begins with Bru
Brand : Bru
Company : Hindustan Unilever
Bru is a power brand from the HUL's ...
43
Bru is positioned on the theme of happiness. The brand has the tagline “Happiness
begins with Bru ". The positioning an...
44
13. TRENDS IN PACKAGING
Consumers' tastes and preferences are changing rapidly, whilst consumption patterns
are seeing a r...
Data monitor predicts a multi-dimensional shift in food packaging in India in the next
five years. Advanced packaging tech...
Packaging Trend: The Future Outlook
The packaging industry is going under transformation almost everyday and new
technolog...
14. CASE STUDY : COCA COLA
Introduction:
As the world's largest manufacturer, distributor, and marketer of nonalcoholic
be...
Branding and Packaging of Coca Cola
Branding:
From the Three A s to the Three P s‟ ‟
Coca-Cola used to focus its strategy ...
Packaging:
The Coca-Cola bottle is probably the most easily recognized containers in the
world. It was described by the 'P...
15. SURVEY ON : CONSUMER BEHAVIOR
TOWARDS PACKAGING OF FMCG PRODUCTS
51
Formulating the Research Problem:
“Understanding Consumer Behavior towards
the Packaging of FMCG products”
Objective of th...
52
Significance of the Study :
The aim of this survey is to find the role of packaging on consumer buying
behavior. The ba...
100 respondents of 4 age groups.
53
Sample Design:
The sample design for the survey is classified according to the age; total 100
respondents are selected for...
16. Questionnaire Analysis and Research
Findings
1. Does packet of a product influence your buying behaviour?
Yes No Somet...
 Bar Diagram:
56
2. What is your priority towards packaging?
Protective Packing Eco- Friendly Packing
Attractive Packing All of Above
Respo...
 Bar Diagram:
58
3. Do you switch your brand due to change in packaging of existing
brand?
Yes No Sometime‘s
Response:
 Tabular representa...
 Bar Diagram:
60
4. Which of the following aesthetic factor attracts you towards the
purchase of the product?
Color Shape & Text & Graphics...
5. Select the parameter of packaging due to which you prefer to buy the product?
Convenience Material Use Aesthetic (color...
 Bar Diagram:
63
RECOMMENDATIONS
 Brand is important and its strategy is in consideration in the units. Product
packaging is valuable for ...
17. CONCLUSION
Results of research on role of packaging on consumer‘s buying behavior stipulated
following conclusions:
 ...
 It has revealed that elements of package are the most important for
consumer‘s purchase decision. For a major part of co...
 According to my research, I found out that most consumers like the product
quality after they purchased their desired pa...
18. Bibliography
Web Sites:
http://en.wikipedia.org/wiki/Packaging_and_labeling
http://www.indiapackagingshow.com/
http://...
19. Annexure
Questionnaire:
Survey on: “Consumer Behavior towards
Packaging of FMCG Products”
Name:
Age Group: 15-21 21-35...
4. Which of the following aesthetic factor attracts you towards the purchase of the product?
Color Shape & Size Text & Gra...
Role of Packaging in sales of FMCG products
Role of Packaging in sales of FMCG products
Role of Packaging in sales of FMCG products
Role of Packaging in sales of FMCG products
Role of Packaging in sales of FMCG products
Role of Packaging in sales of FMCG products
Role of Packaging in sales of FMCG products
Role of Packaging in sales of FMCG products
Upcoming SlideShare
Loading in …5
×

Role of Packaging in sales of FMCG products

24,426 views

Published on

BMS Black Book 100 marks research project
Topic : Role of Packaging in sales of FMCG products
(inclusive of case study and survey Questionnaire)

Published in: Data & Analytics
  • ⇒ www.HelpWriting.net ⇐ This service will write as best as they can. So you do not need to waste the time on rewritings.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THE BOOK INTO AVAILABLE FORMAT (New Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://urlzs.com/UABbn } ......................................................................................................................... Download Full EPUB Ebook here { https://urlzs.com/UABbn } ......................................................................................................................... Download Full doc Ebook here { https://urlzs.com/UABbn } ......................................................................................................................... Download PDF EBOOK here { https://urlzs.com/UABbn } ......................................................................................................................... Download EPUB Ebook here { https://urlzs.com/UABbn } ......................................................................................................................... Download doc Ebook here { https://urlzs.com/UABbn } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THE can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THE is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBOOK .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, CookBOOK, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, EBOOK, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THE Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THE the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THE Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • If you’re struggling with your assignments like me, check out ⇒ www.WritePaper.info ⇐. My friend sent me a link to to tis site. This awesome company. After I was continuously complaining to my family and friends about the ordeals of student life. They wrote my entire research paper for me, and it turned out brilliantly. I highly recommend this service to anyone in my shoes. ⇒ www.WritePaper.info ⇐.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I thought car auctions were only for dealers and I saved more than I expected. Thanks for showing me how to do it. ✤✤✤ https://url.cn/krOAnJTk
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • If u need a hand in making your writing assignments - visit ⇒ www.HelpWriting.net ⇐ for more detailed information.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Role of Packaging in sales of FMCG products

  1. 1. NAGINDAS KHANDWALA COLLEGE OF COMMERCE, ARTS AND MANAGEMENT STUDIES MALAD (WEST) A A PROJECT REPORT ON : “Role of Packaging in sales of FMCG products” IN PARTIAL FULFILMENT OF BACHELOR OF MANAGEMENT STUDIES (BMS) ACADEMIC YEAR 2014-2015 SUBMITTED BY SANCHIT GANGAR TY BMS, ROLL NO 515 (SEMESTER V) UNDER THE GUIDANCE OF PROF. RAMNATH NATESAN IYER SUBMITTED TO UNIVERSITY OF MUMBAI
  2. 2. ACKNOWLEDGEMENT It was an immensely pleasurable experience in working on this project on the Topic - Role of Packaging in sales of FMCG products. However, my efforts alone could not have been sufficient for completion of this project. Invaluable advice & suggestion from large number of people have gone into this project. I am extremely grateful to all these people who have helped me in collecting valuable information & helping me in completion of project. The foremost among them in my guide and our Prof. Ramnath Natesan Iyer whose constant corrective guidance & motivation enabled a focused effort towards completion of the project. I am also very grateful to my parents for being extremely supportive in the endeavour of mine.
  3. 3. (2) Index Contents: Page No: 1. Introduction to Packaging 5 - 13 2. Packaging Industry: 14 - 19  History  Overview  Major Players in the Market 3. Packaging Types 20 - 21 4. Functions of Packaging: 22 - 23  Protective Function  Sales Function  Promotion Function  Service Function  Guarantee Function 5. Packaging and Marketing 24 - 25 6. Waste Management of Material used in packaging 26 7. Overview of FMCG Industry 27 - 29 8. Marketing Strategies adopted by FMCG 30 - 31 9. Role of Packaging in FMCG 32 - 36 10. Factors Influencing Packaging Decisions 37 11. Packaging Expenditure 38
  4. 4. (3) Contents: Page No: 12. Packaging as a Medium to Increase Sales 39 - 44 13. Trends of Packaging 45 - 47 14. Case Study: Coca Cola 48 - 50 15. Survey on: 51 - 54 - Consumer Behaviour towards Packaging of FMCG Products‖  Statement of the Problem  Objective of the Study  Hypothesis  Significance of the Study  Methodology  Sample Design 16. Questionnaire Analysis and Research Findings 55 - 64  Tabulation  Pie-Diagram  Interpretation  Recommendation 17. Conclusion 65 - 67 18. Bibliography 68 19. Annexure: 69 - 70  Questionnaire  Terminology
  5. 5. (4) 1. INTRODUCTION “JO DIKHTA HAI WOH HI BIKTA HAI” The earlier approach to marketing was simple enough: make sure the product is visible - on store shelves and through mass media advertising - and it will more or less sell itself. With the evolution of modern retail, though, the emphasis is shifting to in-store displays and promotions - probably also because for the first time, the space for such initiatives is available. But manufacturers no longer have the last word on what will happen at the store. "Modern trade has a significant say in promotions, perhaps because it offers far superior results with a much faster lead time," says Future Group's Mall. Cadbury India's Sethi points out that retailer are more open to brand promotions and displays - including posters, gondolas and danglers - when manufacturers back up their ideas with shopper insights. "There will be a shift from traditional media to increased communication at the point of purchase," he says. Initiatives that help grow the category as a whole are particularly welcome, say analysts, since that boosts the retailers' revenue. And many FMCG companies are predicting that spends on promotion, in-store and point of purchase displays will increase significantly from the present 20-30 per cent share of the marketing budget. Consumer goods companies need to make several changes - in strategy and in attitude - if they are to achieve the same level of success with organized retail as they have with traditional formats. Printing barcodes on their products would probably be a good place to start.
  6. 6. 5
  7. 7. SHOW YOUR PRODUCTS TO CUSTOMERS : Buyers spend lots of energy in buying and developing the merchandise before it finally hits the stores. Sometimes, however, it is forgotten that one very critical aspect is the way the product is presented to customers in the store and overlook issues such as packaging and in-store display. The importance of the saying “JO DIKTA HAI WOH BIKTA HAI” cannot be overestimated. Proper display and presentation can make all the difference between achieving or not achieving sales targets. Remember the following: 1. Visual Merchandising: Be involved in the planning of the in-store presentation of your merchandise. Adequately plan the MDQ‘s (Minimum Display Quantities). 2. Communicating Ideal presentation standards: Effectively communicate to the store staff on how the merchandise should be displayed and the ideal presentation standards. This could be by way of talking to sales staff directly, sending mail before the merchandise arrives at the stores or making a detailed manual at the beginning of each season. Remember to look for ways in which the job of the sales staff can be made easier by improving packing and display methods of the product. 6
  8. 8. 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 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. The wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote and otherwise make the product marketable and keep it clean. Packaging is more than just your product's pretty face. Your package design may affect everything from breakage rates in shipment to whether stores will be willing to stock it. For example, "display ability" is an important concern. The original slanted-roof metal container used for Log Cabin Syrup was changed to a design that was easier to stack after grocers became reluctant to devote the necessary amounts of shelf space to the awkward packages. Other distribution-related packaging considerations include:  Labeling: You may be required to include certain information on the label of your product when it is distributed in specific ways. For eg, labels of food products sold in retail outlets must contain information about their ingredients and nutritional value.  Opening: If your product is one that will be distributed in such a way that customers will want to--and should be able to--sample or examine it before buying, your packaging will have to be easy to open and to reclose. If, on the other hand, your product should not be opened by anyone other than the purchaser--an over-the- counter medication, then the packaging will have to be designed to resist and reveal tampering.  Size: If your product must be shipped a long distance to its distribution point, then bulky or heavy packaging may add too much to transportation costs.  Durability: Many products endure rough handling between their production point and their ultimate consumer. If your distribution system can't be relied upon to protect your product, your packaging will have to do the job. 7
  9. 9. History : From the very earliest times, humans consumed food where it was found. Families and villages made or caught what they used. They were also self-sufficient, so there was little need for packaging of goods, either for storage or transportation. When containers were needed, nature provided gourds, shells, and leaves. Later, containers were fashioned from natural materials, such as hollowed logs, woven grasses and animal organs. As ores and chemical compounds were discovered, metals and pottery were developed, leading to other packaging forms. Packaging is used for several purposes:  Contain products, defining the amount the consumer will purchase.  Protects products from contamination, from environmental damage and from theft  Facilitate transportation and storing of products.  Carry information and colorful designs that make attractive displays. For each product's needs, there are good packaging solutions. Though packages are often taken for granted, they are the result of many years of innovation -- in some cases accidental. A brief review of the more popular packaging developments is included in this fact sheet:
  10. 10. 8
  11. 11. Paper and Paper Products : One way of placing packages into categories is to describe them as flexible, semi flexible, or rigid. Flexible packaging includes the paper sacks that dog food comes in, the plastic bags that hold potato chips and the paper or plastic sacks in which we carry home our purchases. An example of semi-flexible packaging is the paperboard boxes that cereal, many other food products, small household items, and many toys are packaged in. For many non-food items, the packaging is made more rigid by formed packing materials that slip inside the box and hold the product and its accessories or components in place. Forms of rigid packaging include crates, glass bottles, and metal cans. Cloth or paper may be the oldest forms of flexible packaging. 9
  12. 12. Glass: Although glass-making began in 7000 B.C. as an offshoot of pottery, it was first industrialized in Egyptian 1500 B.C. Made from base materials (limestone, soda, sand and silica), which were in plentiful supply, all ingredients were simply melted together and molded while hot. Since that early discovery, the mixing process and the ingredients have changed very little, but the molding techniques have progressed dramatically. At first, ropes of molten glass were coiled into shapes and fused together. When the blowpipe was invented by the Phoenicians in 3000 B.C., it speeded production. Colors were available from the beginning, but clear, transparent glass was not discovered until the start of the Christian era. The split mold, which was developed in the 17th and 18th centuries, further provided for irregular shapes and raised decorations. As techniques were further refined in the 18th and 19th centuries, prices of glass containers continued to decrease. Owens invented the first automatic rotary bottle making machine, patented in1889. Suddenly, glass containers of all shapes and sizes became economically attractive for consumer products, glass containers dominated the market for liquid products. As a type of "rigid packaging," glass has many uses today. High weight, fragility and cost have reduced the glass markets in favor of metal and plastic containers. Still, for products that have a high quality image and a desire for high flavor or aroma protection,glass is an effective packaging material. 10
  13. 13. Metals: Ancient boxes and cups, made from silver and gold, were much too valuable for common use. Metal did not become a common packaging material until other metals, stronger alloys, thinner gauges and coatings were eventually developed. One of the "new metals' that allowed metal to bemused in packaging was tin. Tin is a corrosion- resistant metal, and ounce-for-ounce, its value is comparable to silver. . The term 'tin can' referred to a tin-plated iron or steel can and was considered a cheap item. Today many still refer to metal cans as 'tin cans'. In 1764, London tobacconists began selling snuffing metal canisters, another type of today's "rigid packaging." But no one was willing to use metal for food since it was considered poisonous. The safe preservation of foods in metal Containers were finally realized in France in the early1800s. In 1809, General Napoleon Bonaparte offered 12, 000 francs to anyone who could preserve food for his army. By 1866 the first printed metal boxes were made in the United States. Although commercial foils entered the market in 1910, the first aluminum foil containers were designed in the early 1950s while the aluminum can appeared in 1959. 11
  14. 14. Plastics: Plastic is the newest packaging material in comparison with metal, glass, and paper. Although discovered in the 19th century, most plastics were reserved for military and wartime use. Plastics have become very important materials and a wide variety of plastics have been developed over the past 170years.Several plastics were discovered in the nineteenth century: styrene in 1831, vinyl chloride in1835, and celluloid in the late 1860s. However, none of these materials became practical for packaging until the twentieth century. Styrene was first distilled from a balsam tree in1831, but the early products were brittle and shattered easily. Germany refined the process in 1933 and by the 1950s Styrofoam was available worldwide. Insulation and cushioning materials as well as foam boxes, cups and meat trays for the food industry became popular. In the interim, polyethylene film wraps were reserved for the military. In 1933, films protected submarine telephone cables and later were important for World War II radar cables and drug tablet packaging. Other cellophanes and transparent films have been refined as outer wrappings that maintain their shape when folded. Originally clear, such films can now be made opaque, colored or embossed with patterns. One of the most commonly used plastics is polyethylene terephthalate (PETE). This material only became available for containers during the last two decades with its use for beverages entering the market in 1977. By 1980, foods and other hot-fill products such as jams could also be packaged in PETE. 12
  15. 15. A Review: From containers provided by nature to the use of complex materials and processes, packaging has certainly changed. Various factors contributed to this growth: the needs and concerns of people, competition in the marketplace, unusual events (such as wars), shifting lifestyles, as well as discoveries and inventions. Just as no single cause influenced past development, a variety of forces will be required to create the packages of the future, but a very important factor will always be consumer choice. Ultimately, only the packaging that our society demands is produced. We choose by the products we purchase. Current packaging designs are beginning to incorporate recyclable and recycled plastics but the search for reuse functions continues. 13
  16. 16. 2. PACKAGING INDUSTRY A. History : In preindustrial society, packaging of food was far from being unknown. It was used for food storage at home and for transport from the production place, the farm, or workshop to the local or regional market. Examples are the transport of cereals or flour in bags, tea in wooden boxes or tinplate canisters, and oils in jars. At the household level, people salted meat and pickled vegetables and preserved them in jars. In groceries at the end of the nineteenth century, most commodities were still unpacked and sold in bulk. Products such as tea, coffee, sugar, flour, or dried fruits were weighed out in front of the customer and wrapped in paper or put into a bag. In major cities in the 1880s, the milkman came around with a dipper and can to deliver milk, which was often dirty. Origin of Modern Packaging and Canning: Early methods of sealing jars included waxed paper, leather, or skin, followed by cork stoppers and wax sealers. The beginning of modern food technology started with the experiments of the French confectioner Nicolas Appert (1750-1841). In 1795, the French government offered a prize of 12,000 francs to anyone who could find a way to preserve food because Napoleon Bonaparte needed to provide the military with a safe food supply. (The requirements of providing adequate food supplies for armies and navies have been of great significance in the history of modern packaging and food preservation.) After fourteen years of experimentation, Appert developed a method for preserving foods by heating. The food, meat, or vegetables, was first cooked in open kettles and placed in glass jars. After removing as much air as possible, the jars were carefully sealed with corks wired in place and then submersed in boiling water. In 1810 Appert published his prize-winning essay on food preservation and the French emperor Napoleon awarded the 12,000-franc prize to him. 14
  17. 17. Canning : Two individuals in England are given credit for applying and improving Appert's invention, Bryan Donkin and Peter Durand. Bryan Donkin, an associate of John Hall's at his Dartford Iron Works, realized in 1811 that iron containers could be used instead of the fragile glass, and in 1812 the factory began to produce canned food such as meat. In 1810, Peter Durand patented the use of metal containers, which were easier to make and harder to break than glass jars. He covered iron cans, which were prone to rust, with a thin plating of tin (which is not adversely affected by water), and invented the "tin can." By 1813, Durand was selling canned meat to the Royal Navy. The British admiralty bought these foods as part of the medical stores for distribution to sick men as well as to supply expeditions. By 1819 canning had arrived in the United States, but no one wanted canned food until the Civil War started. In 1821, the William Underwood Company in Boston introduced commercial canning in the United States. For a long time, people regarded canned foods with suspicion, and for good reasons. In the middle of the nineteenth century, the foods produced by the canning industry were as likely to spoil as not because of inadequate heating techniques. Then, beginning in 1868, first in the United States and later in Europe, handmade cans were replaced by machine- cut types. The new technology made it possible for giant meat-canning firms like P. D. Armour to emerge in Chicago and Cincinnati. Under difficult circumstances, people learned that canned foods such as condensed milk can be tasty and nourishing. The invention of practical can openers at the end of the nineteenth century made cans easier to open, making them even more convenient for consumers. In the early twentieth century, the heavy cans were replaced by those made of lighter materials, and manufacturers could stress that their products were hygienically processed. As food technology advanced, numerous chemical additives were developed to control or speed up food processing and to increase the keeping quality of canned foods.
  18. 18. 15
  19. 19. B. Overview : The global packaging industry is approximately a $433 billion market. The domestic packaging market, which is the major focus of this report, represents approximately 29%, or $124 billion of the global market. The industry consists of four general segments classified by material type: paper and board, plastics, glass and metal. The largest segments of the industry are paper and board and plastics, which account for 36% and 35%, respectively, of the global packaging market. The packaging industry is a large, fragmented market with thousands of competitors. While packaging companies serve a variety of markets, the largest end markets for packaging products are food and beverage. Food packaging accounts for approximately 40% ($175 billion) of all packaging applications. Beverages represent approximately 18% or $80 billion. These end markets are stable, non- cyclical, steadily growing markets that are attractive, regardless of the economic climate. The growth rate of the packaging industry is primarily driven by growth rates and market trends within various end markets. Growth rates vary from a low of 3.2% for beverages to a high of approximately 5% for health care products. The largest end market, food, has historically grown at slightly less than 4% annually. While the beverage market has generally been a low growth market, the bottled water sub segment of the beverage market has recently achieved very strong growth. Due to FDI in retail sectors, the Retail Sector in India is expected to grow by 20 % in the next 10 years. These developments will give a boost to all the sectors, Packaging Industry in particulars and open up tremendous opportunities in the packaging Industry. 16
  20. 20. Indian Packaging Scenario: 1) Indian Packaging Industry is worth Rs. 2, 00,000 crores with growth rate varying from 5% in some sectors to as much as 20% in Sectors like Flexible Packaging, compared to 3% in developed countries. 2) Most of the basic raw materials needed for Packaging Industry such as Paper, Board, Plastic, Glass, Metal and others are available in abundance. 3) Packaging Machinery Sector involved in making Packaging Converting Machines, Product Packaging Machines and allied equipments have adopted modern technology are exporting the machines even to developed economies of the world. 4) Over 40% of Export is done by small and medium Sector Industries where Packaging Industry has its major presence. 5) A number of State of Art Package Converting and Manufacturing plants have been set up in the country; some of them are exporting to developed countries. 17
  21. 21. C. Major Players in the Market : 1. Flexible Packaging: a. Industry :-  Consists of typically multilayered laminated sheets or a combination of various subtracts such as polymers, aluminum fibers and paper.  Market around Rs. 2000 crores (US $ 465 mn.)  Laminated sheets are generally a combination of polyester films, BOPP, Polyethylene, etc. Others - metallic packaging, co-extruded fibers, lamination.  BOPP and polyester film are major raw materials - account for 60% of the raw materials cost. b. Players :-  Paper Products, Akar Group (Akar Laminates, Sharp Industries, Vishnu Vijay Packers, Orient Press, India Foils, Flex Industries, RT Packaging, Mukund Flex Pack, etc. 2. Films: a. Industry :  Market around Rs. 400 crores (US $ 90 mn.).  Polypropylene is the basic raw material for BOPP films.  India‘s share of the world market of 2 mntpa (million tones per annum) is very low <5% b. Players :  Segment dominated by Cosmo Film (14500 T) and Gujarat Propak (11500T).  Others - Sharp Industries, Max India, Supreme Oriented Films, MM RubberCo., Hindustan Adhesives, etc. 18
  22. 22. 3. Polyester Films: a. Industry:  Market around Rs. 850 crores (US $ 195 mn.)  First segment to enter packaging  Initially polyester films were imported  Now packaging polyester films are made from polyester films which are in turn made from Di methyl terepathalate (DMT), Purified Terapathalic Acid (PTA) or Mono ethylene Glycol (MEG) b. Players:  Garware Polyester was the first to set-up a unit in 1981  Major players in this sector are Garware Polyester, Polyplex Corporation,  Ester Industries, Venlon Polyester, Siltap Chemicals, Jindal Polyester, Jalpac India, Amco Vinyl, etc 4. Laminate Tubes : a. Industry :- 1. Market around Rs. 750 crs. (US $ 175 mn.). 2. Tubes are of two types - laminate tube and seamless tube. 3. Laminate tube comprises of 5 layer printed laminate where as a seamless tube body comprises mono or multi layered extruded. 4. Seamless tubes (no seam in the tube) was first introduced in 1996. 5. Properties of these tubes can be varied by using a variety of polymers - HDPE, LDPE, HMHDPE, etc. 6. Popularly used in cosmetic, dentrifice, pharmaceuticals, etc. b. Players  Sector dominated by Essel Packaging.  Others - Paper Products; Akar Laminates . 19
  23. 23. 3. PACKAGING TYPES Protecting goods is very important. Food, electronics, clothes, furniture and other consumer goods all come in packaging meant to protect them during transportation and storage. There are different types of packaging solutions and materials. Packaging can be standard or custom made, for instance.  Paper and Carton Packaging: Paper and carton packaging is used for different types of goods (food, electronics, toys, shoes, kitchenware and even other packaging materials). Paper and carton packaging companies produce wrapping paper, inflated paper, sheets, boxes, tubes, pallets, interlayer‘s, corners edges and custom protective systems (depending on the dimension and shape of the packed good, the carton is cut and modeled to fix and protect the product). Paper can be used to laminate other materials in order to make them stronger. There is also anticorrosive paper that can be used to wrap goods or to laminate other materials.  Film Packaging: There are multiple types of films used in the packaging industry, most commonly polyethylene (PE), polypropylene (PP), polyolefin and polyvinyl chloride (PVC) films. The films usually come on a roll and are used to wrap goods, cover goods, protect boxes and make other packaging products (such as bags, tubes, bubble wrap and sheets). Films can be used for lamination, printed or perforated. They can be anticorrosive, antistatic, shrinkable or non shrinkable, and slippery or non slippery.  Foam Packaging: Foam used for packaging can be produced on a roll or in sheets of different thicknesses. The foam is used to wrap goods or make bags (usually laminated with high-density PE), corners, edges and custom systems. The corners and edges are used to protect flat glass, furniture and sharp edges. Foam can be cut and modeled on the product's shape to fix and protect it. It can be antistatic and has good insulation properties. 20
  24. 24.  Textile Packaging: There are some goods that are best protected by textiles. For example, there are custom-made textile insertions used in the automotive industry to protect car parts during transportation. The textile insert is put on a metal frame that fits into a metal container. There is also textile material used for box covers.  Plastic Boxes and Containers: Multiple types of plastic boxes and containers are used in all industries. For example, in the food industry there are plastic containers for goods like ketchup, yogurt, milk and juices. Plastic boxes are mainly used for transporting goods and are reusable. They can be stacked, folded when empty to save storage space and recycled.  Packaging Systems: Packaging companies offer different types of systems that can be divided into two categories: special solutions and packaging machines. The special solutions are used for valuable products that don't have a regular, simple shape. For example, parts of airplanes or expensive decorative glass objects need special solutions to be packed. The goods fit perfectly into the packaging and are protected against damages. Packaging machines are used for wrapping (wrapping the stretch film on the pallet), strapping (applying and sealing straps on boxes), sealing (with tape for boxes and with heat for films) and shrink wrapping (applying PVC or polyolefin film on products or boxes). There are also machines that inflate film, paper and instant foam.  Other Types: Adhesive tapes are also considered packaging materials, as they help seal boxes. They are usually made out of PE or PP film that has acrylic or solvent glue applied to it and that can be printed on. Strapping tapes are usually applied on boxes or pallets. They are made out of PE or PP and can be printed with one color. The standard colors are black and clear for PP and green for PE. 21
  25. 25. 4. FUNCTIONS OF PACKAGING 1. Protective Function : 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. In addition, packaging must also reliably be able to withstand the many different static and dynamic forces to which it is subjected during transport, handling and storage operations. The goods frequently also require protection from climatic conditions, such as temperature, humidity, precipitation and solar radiation, which may require "inward packaging measures" in addition to any "outward packaging measures". The outward protection provided by the packaging must prevent any environmental degradation by the goods. The packaging must furthermore as far as possible prevent any contamination, damage or other negative impact upon the environment and goods. 2. Sales Function : The purpose of the sales function of a package is to enable or promote the sales process and to make it more efficient. It is rightly said that packaging works as silent, salesman. It catches the attention of customers, who pick up the product, go through its description and are induced to purchase the product. Self service is becoming more and more common in the field of shopping, where the customer picks up the product himself and makes its payment on the counter. Packaging in these circumstances promotes the sales.
  26. 26. 22
  27. 27. 3. Promotion Function : 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. 4. Service Function : The various items of information printed on packaging provide the consumer with details about the contents and use of the particular product. Examples are the nutritional details on yogurt pots or dosage information on medicines. The package may also perform a further function once the contents have been used (e.g. storage container, toy). 5. Guarantee Function : By supplying an undamaged and unblemished package, the manufacturer guarantees that the details on the packaging correspond to the contents. The packaging is therefore the basis for branded goods, consumer protection and product liability. There are legislative requirements which demand that goods be clearly marked with details indicating their nature, composition, weight, and quantity and storage life. 23
  28. 28. 5. PACKAGING AND MARKETING Thousands of new products are introduced every year, more than 15,000 to be exact. How can your product compete, not only with established brands but with the plethora of new products that are being introduced? The answer of course is THE PACKAGING. The right packaging with the right message will rise above the competitive landscape. But how many companies understand the value behind packaging as a marketing tool ? Most just look at as a way to convey the product or recycle tired images and product packaging that doesn't work. Rank these attributes for your product and then the nearest competitive product or a product that you recently purchased that was outside your normal buying pattern.  Is it new and innovative ?  Is it fulfilling a need ?  Is it easy to use and convenient ?  Is it a good value ?  Does it make the consumer happy ?  Does it inspire consumer trust and loyalty ?  Is it safe and secure ?  Does it compel you to want to know more ?  So how does your product stack up in solving a consumer want or need ?  Would your package make someone desire to take a closer look ? Branding and packaging are two of the most important components of marketing. Branding is a term used to describe the name, description and design of a product. Branding differentiates a company's product from their competition. Packing is a marketing tool used to reflect the brand. A company uses packaging to sell the product inside. The colors, fonts, descriptions and logo are designed to drive consumers to buy the product. 24
  29. 29. . Sales : The entire focus of a marketing department is to strategize methods to sell the company's products. Branding and packaging are two of the most effective ways to do this. Advertising, the company website and product packaging must all present a cohesive brand or image. In successful brand campaigns, customers recognize the company's product packaging and purchase because they identify with the brand. Branding : When a company brands a product, they determine its "personality." Creating a brand that is instantly recognizable and perceived positively is the ultimate goal. Branding integrates components such as color, style and visual imagery to distinguish a company's products from the competition. Developing logos, slogans and tag lines are all ways that marketers communicate a specific brand. Slogans : One of the most effective methods of branding is the use of slogans. Companies often identify a specific characteristic that sets their product apart from the competition. For example, Nike has effectively marketed both their logo and slogan "Just do it" into an easily recognized brand. Packaging : Packing is designed to capture a customer's attention and it can directly effect whether they buy the product or not. Innovation and creativity come into play when it comes to packaging. A well-marketed product is packaged in a way that compels the customer to pick it up and take a closer look, descriptions and graphics must be clear. Company Image : Branding and packaging are created by a company. While these efforts are used to market products, they in turn market the company itself. Branding reflects the image that the company seeks to project. For example, IBM takes on a more conservative, well-established corporate image while Apple brands itself as a hip and cutting edge company. These images reflect the market that the company has identified as target customers.
  30. 30. 25 6. WASTE MANAGEMENT OF MATERIAL USED IN PACKAGING Package development involves considerations for sustainability, environmental responsibility, and applicable environmental and recycling regulations. It may involve a lifecycle assessment which considers the material and energy inputs and outputs to the package, the packaging process, the logistics system, waste management, etc.  Prevention : Waste prevention is a primary goal. Packaging should be used only where needed. Proper packaging can also help prevent waste. Packaging plays an important part in preventing loss or damage to the packaged-product. Usually, the energy content and material usage of the product packaged are much greater than that of the package.  Minimization : The mass and volume of packaging can be measured and used as one of the criteria to minimize during the package design process. Usually reduced packaging also helps minimize costs. Packaging engineers continue to work toward reduced packaging.  Reuse : The reuse of a package or component for other purposes is encouraged. Returnable packaging has long been useful for closed loop logistics systems. Inspection, cleaning, repair are often needed. Some manufacturers re-use the packaging of the incoming parts for a product as packaging for the outgoing product.  Recycling : Recycling is the reprocessing of materials into new products. Emphasis is focused on recycling the largest primary components of a package: steel, aluminum, papers, plastics, etc. Small components can be chosen which are not difficult to separate and do not contaminate recycling operations.  Energy recovery : Waste-to-energy and Refuse-derived fuel in approved facilities are able to make use of the heat available from the packaging components.  Disposal : Incineration and placement in a sanitary landfill are needed for some materials. Certain states within the US regulate packages for toxic contents, which have the
  31. 31. potential to contaminate emissions and ash from incineration. Packages should not be littered. 26
  32. 32. 7. OVERVIEW OF FMCG INDUSTRY The FMCG industry manages consumer packaged goods production, distribution to marketing. The Indian FMCG industry is the fourth largest industrial sector that has stayed recession-resilient and shows signs of bright future. The Fast Moving Consumer Goods (FMCG) industry primarily deals with the production, distribution and marketing of consumer packaged goods, i.e. those categories of products that are consumed at regular intervals. Examples include food & beverage, personal care, pharmaceuticals, plastic goods, paper & stationery and household products etc. Global leaders in the FMCG segment are Sara Lee, Nestlé, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc. Performance : In India, the FMCG industry is the fourth largest sector with a total (organized) market size of over US$15 billion, as per ASSOCHAM, and can be classified under the premium and popular segments. The premium segment (~25%) caters mostly to the higher/upper middle income consumers while the price sensitive popular or mass segment (~75%) consists of consumers belonging mainly to the semi-urban or rural areas that are not, and cannot afford to be, brand conscious. The market growth over the past 5 years has been phenomenal, primarily due to consumer’s growing disposable income which is directly linked to an increased demand for FMCG goods and services. Indeed, it is widely acknowledged that the large young population in the rural and semi-urban regions is driving demand growth, with the continuous rise in their disposable income, life style, food habits etc. On the supply side, the wide availability of raw materials, vast agricultural produce, low cost of labor and increased organized retail have helped the competitiveness of players. According to the recent reports by Zeus Consulting, India's FMCG industry has so far been resilient to the slowdown in the economy and a dip in consumer. 27
  33. 33. FMCG eyes 15% growth this year : The Rs. 96,000 crore FMCG industry is expected to witness a lot of action in 2012. With the economy showing signs of revival, the industry is expected to register a 15% growth in 2012 as compared to the previous year. Despite the rise in input costs, FMCG industry is likely to sustain its robust growth momentum aided by increased rural incomes, taxation benefits and gradual shift from the unorganized sector/regional players. Scope of the Sector : The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs. 56,500 crores in 2005 to Rs 1,00,000 crores in 2014. 28
  34. 34. Indian Competitiveness and Comparison with the World Markets: The following factors make India a competitive player in FMCG sector:  Availability of raw materials: Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage.  Labor cost comparison: Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets.  Presence across value chain: Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc. 29
  35. 35. 8. Marketing Strategies adopted by FMCG Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive. A marketing strategy should be centered on the key concept that customer is the main goal. SWOT Analysis Strategy:  Strengths: 1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector  Weaknesses: 1. Lower scope of investing in technology and achieving economies of scale, especiallyin small sectors. 2. Low exports levels.  Opportunities: 1. Untapped rural market 2. Rising income levels i.e. increase in purchasing power of consumers 3. Large domestic market- a population of over one billion. 4. Export potential 5. High consumer goods spending  Threats: 1. Removal of import restrictions resulting in replacing of domestic brands 2. Slowdown in rural demand 3. Tax and regulatory structure 30
  36. 36. FMCG PRODUCT LINE
  37. 37. 31
  38. 38. 9. ROLE OF PACKAGING IN FMCG PRODUCTS The importance of packaging design as a vehicle for communication and branding is growing in competitive markets for packaged FMCG products. This research utilized a focus group methodology to understand consumer behavior toward such products. The challenge for researchers is to integrate packaging into an effective purchasing decision model, by understanding Consumer‘s behavior towards the packaging of FMCG products. Packages also deliver brand identification and label information like usage instructions, contents, list of ingredients or raw materials, warnings for use and directives for care of product. “Packaging is the container for a product - encompassing the physical appearance of the container and including the design, color, shape, labeling and materials used” Packaging has a huge role to play in the positioning of products. Package design shapes consumer perceptions and can be the determining factor in point-of- purchase decisions which characterize the majority of shopping occasions. In recent years the marketing environment has become increasingly complex and competitive. A product‘s has strong potential to engage the majority of the target market. This makes it an extremely powerful and unique tool in the modern marketing environment. Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. 32
  39. 39. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG may also include pharmaceuticals, consumer packaged food products and drinks. Some of the best known examples of Fast Moving Consumer Goods companies include: Nestlé, Hindustan Unilever, Procter & Gamble, Coca-Cola, Pepsi, Wilkinson and Mars. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental - as opposed to luxurious - needs.
  40. 40. 33
  41. 41. The Relevance of Packaging as a Marketing Tool: Never underestimate the importance of packaging. The way that consumers react to unbranded products that packaging plays a huge role in reinforcing consumer perceptions. Packaging helps to drive the way consumers experience a product. Yet, we spend little time researching the connections between packaging and the direct experience of the product. What relevance does packaging have in the marketing world of today? Reaching the target market : In recent years the marketing environment has become increasingly complex and competitive. Although advertising can be a highly effective, reaching the entire target market for most products is generally not a feasible prospect. Media fragmentation has meant that it is becoming increasingly difficult and expensive to reach and communicate with customers and potential customers, forcing marketers to adopt more innovative means of reaching their target market. Winning at the First and Second Moment of Truth: Packaging‘s dual role is what makes it a truly unique marketing tool. The packaging has to provide consumers with the right cues and clues - both at the point of purchase and during usage. 1. The first moment of truth is about obtaining customers attention and communicating the benefits of the offer. 2. The second moment of truth is about providing the tools the customer needs to experience the benefits when using the product.
  42. 42. 34
  43. 43. 1. The Point Of Sale :- The 1st Moment Of Truth The importance of making an impact at the point of sale cannot be underestimated. A recent Point of Purchase Advertising Institute (POPAI) survey in the UK found that over 70% of all purchasing decisions are made in-store at the point of purchase. a. Cutting through the clutter - actually getting the consumer to notice/see the product b. Communicating marketing information c. Stimulating or creating brand impressions d. Providing various brand cues :  Value  Quality  Safety The most brilliant and creative packaging is useless unless it is seen. Creating a powerful shelf presence so that the brand stands out from the crowd and is actually noticed is the first and most vital step for any product on a shelf. What this fact illustrates is that today‘s consumers have to sift through a vast amount of products to choose what they want and not surprisingly they end up ignoring most of what they pass. To generate initial consideration, two things are key :- i. Shelf placement - ensuring that your product is placed on the shelf in the area most likely to be seen by customers. ii. Packaging that creates a visual contrast 35
  44. 44. 2. Usage :- The 2nd Moment of Truth Unlike advertising exposure which can be relatively brief, packaging continues to build brand values during the extended usage of the product and can drive brand equity and loyalty. After purchase, packaging plays both a functional and a marketing role. i. Functional Role : From a functional perspective, packaging is often part of the usage/consumption experience not only is it a means of providing any necessary information, but it can also form part of the actual product and provides functional benefits. If packaging is unwieldy it can hamper the relationship with the brand. For instance if it breaks easily, doesn‘t fit in the fridge, can cut the consumer, etc., the experience with the product can be negative. ii. Marketing Role - Brand Identity and Differentiation : As the only part of the marketing communication that the consumer takes home, Packaging plays a key role in communicating and reinforcing brand values over time. Packaging has the power to make, but also to break brand relationships. Although a non-favorable advertisement might be quickly forgotten, poor packaging provides a continual reminder of the brand‘s perceived failing. Likewise, favorable packaging can be a means of continually reinforcing the brand‘s appeal. 36
  45. 45. 10. FACTORS INFLUENCING PACKAGING DECISIONS Packaging decisions are important for several reasons including: 1. 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. 2. Visibility : Packaging design is used to capture customer’s 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. Packaging designs that standout are more likely to be remembered on future shopping trips. 3. 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. 4. 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. A retailer may not accept packages unless they conform to requirements they have for storing products on their shelves. 5. Cost : Packaging can represent a significant portion of a product‘s selling price. Developing new packaging can be extremely expensive. Smart packaging decisions can help reduce costs and possibly lead to higher profits. 6. Long Term Decision: When companies create a new package it is most often with the intention of having the design for an extended period of time. Changing a product‘s packaging frequently can have negative effects since customers may be confused if the design is altered. 7. Environmental or Legal Issues: Packaging decisions must also include an assessment of its environmental impact. Packages that are not easily bio-degradable could draw customer and possibly governmental concern. Also, caution must be exercised in order to create packages that do not infringe on intellectual property, such as copyrights, trademarks or patents, held by others.
  46. 46. 37
  47. 47. 11. PACKAGING EXPENDITURE Packaging is often criticized on the grounds of cost and of being a waster of natural resources and energy. The food packaging industry has always been anxious to conserve resources due to economic pressures. This has been achieved by using less packaging material, or by turning to cheaper, more abundant materials. In addition, recycling and package reuse/refilling schemes have been introduced voluntarily to save materials and energy and to protect the environment. Prices of packaging materials such as aluminum foil, Kraft paper, and adhesives for corrugated boxes and packaging plastics have increased up to 25% forcing companies such as Marico and Dabur to talk price hike in a marketplace where increasing prices and cutting advertising spends could prove fatal. FMCG companies, working with extremely low margins after absorbing most of last year‘s rise in raw material prices and higher logistics costs due to fuel price hike, are also exploring innovation in packaging and hedging materials to retain profitability. Packaging costs typically account of 8-10% of the total costs in a FMCG company.Increase in packaging costs has put pressure on FMCG companies which are already working with low margins. Prices of packaging materials such as Kraft paper, adhesives for corrugated boxes, aluminum foil and packaging plastics have increasedThis has put pressure on companies to either increase the price of processed food and some other products or to absorb the cost which would affect their margins. 38
  48. 48. 12. PACKAGING AS A MEDIUM TO INCREASE SALES “Catching consumer’s attention is the first step in making the sale” Packaging plays an important role as a medium in the marketing mix, in promotion campaigns, as a pricing criterion, in defining the character of new products, as a setter of trends and as an instrument to create brand identity and shelf impact in all product groups. The top ten requests about packaging :- Good starting points for improvements, changes, innovations which optimize the features of packaging that determine buying decisions and thus generate new market potential can be summarized in consumer's top ten requests about product packaging : 1. Eye-catching appearance :- A distinctive, unmistakable and eye-catching appearance is a signal at the POS to which all consumers and particularly the younger ones respond positively. Whatever stands out clearly in the monotonous competitive environment, whatever is surprising scores points with the consumer. 2. Design, shape and color :- The purpose of well-considered design, creative printing and finishing is to entice the consumer to devote attention to the pack and its contents at the POS. Aesthetics and attractiveness are major distinctive features and are in fact essential in some product segments, beautiful packaging design is of central importance Consumers like to buy agreeably designed and decorative products. 3. Functionality :- Functional aspects are the basis for all successful packaging and for thus greater product success too. Product and aroma protection, hygiene and tightness, environmental responsibility and practical handling in both use and storage are important here
  49. 49. 39 4. Innovation :- Novelty has exceptionally strong appeal. An innovative pack can even make "new products" out of familiar ones. Unusual solutions, functional new developments and originality not only set design trends but also boost sales. Material :- What is printed on board is read particularly willingly, while what is packaged in board sells particularly well. Sustainability, easy disposal and, great design variety are particular features of the material. 6. Efficient communication :- The packaging is the credible medium at the point of sale and is consulted willingly and intensively. This makes it an efficient means of communication. If several of his senses are appealed to as well, he can be persuaded particularly successfully. 7. Multisensory appeal :- Anyone who approaches consumers via several of his senses attracts greater attention, intensifies perception and stimulates interest in buying. Packaging that can be felt, smelled and heard as well as looked at wins the customer's favour. So much so that he is willing to pay a higher price for this multisensory appeal. 8. Appropriateness :- For the product Packaging is considered to be an important indicator of quality. The quality of the product therefore has to be communicated by good packaging and not just by promises of quality made in the text on the packaging. A credible "overall work of art" is created as a result, in which the contents and the packaging are coherent and the consumer is convinced by their consistency. 9. Value Packaging :- It is an excellent way to communicate sophistication, class and value. This makes it an ideal strategic option for expressing premium positioning as well as being the instrument of choice when a product needs to be upgraded or a brand needs to be revitalized. Products in classy packaging are particularly popular presents too. 10. Additional benefits :- Successful packaging not only combines what is pleasant with what is functionally useful but also provides additional benefits. For example, as a gift or for presentation, with entertaining components or simply by making it possible to continue using the
  50. 50. 40 Increase Sales with Functional Packaging: The next time you buy a product, consider the work that goes into its packaging. There are several aspects that make up the packaging, but often consumers do not realize the amount of thought that goes into the design, manufacture, and role it plays in marketing. Prior to the advent of the modern supermarket and department store, manufacturers shipped merchandise in bulk containers such as barrels, sacks, and tubs. Retail merchants repacked the contents into smaller, more convenient packs to meet customer needs. With the growth of mass merchandising and self-service, manufacturers realized the value of packaging as a marketing tool. Today, it is a vital part of a firm's product-development strategy; a package may even be an integral part of product itself, for instance, the aerosol spray can for insecticide. The Changing Role of Packaging: Product packaging has evolved in its role in marketing strategy. For many years, packaging received little, if any consideration as part of the product. It merely provided a storage function. Then, when marketers understood that brand associations related to packaging are held by consumers. Thus, packaging became part of brand building efforts, with notable examples being Coke's contour bottle. Today, packaging takes on an even more prominent role and can actually be a point of differentiation. Packaging can enable product use in different situations product easier to use (e.g. Heinz ketchup in bottles designed for refrigerator doors), or shape a brand image that can command a price premium.
  51. 51. 41
  52. 52. The Importance 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. Packaging should definitely be included in the 4 major P‘s of marketing. 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. Without attractive packaging, who would buy it in order to try it? Your first step to enter the market is crushed if the packaging is ugly. Converting first time buyers into loyal customers should be the main goal of your business and packaging is the door to it. Role of packaging on consumer buying behavior: I have no doubt whatsoever that packaging influences consumer behaviour. The question, however, asks whether the degree to which packaging influences consumer behaviour is significant. This makes for a more interesting debate. If we consider packaging as a communications medium, which we surely must as companies spend as much money developing innovative new packaging solutions as they do on many other elements of the marketing mix, in order for it to be successful it must deliver on both a functional and an emotional level. Content without creativity is just plain boring, but creativity in the absence of content is simply noise. Given the choice of two options, one with an easy-to-open, re-sealable container, the other that takes 10 minutes and a tool box to extract the product, I know which one I'd go with. On a simpler level, the physical state of packaging influences our buying behavior. If we are looking to purchase an unfamiliar product, packaging can play an important role - what information does the packaging contain, in what language? A lack of familiarity with a product leads to an increased level of risk associated with the purchase - clearly labeled contents with an image of the contents can help offset the risk. 42
  53. 53. CASE STUDY : Bru : Happiness Begins with Bru Brand : Bru Company : Hindustan Unilever Bru is a power brand from the HUL's stable. A brand which pioneered the instant coffee category in Indian market in 1969 is also an example of many successful marketing practices. According to HUL. Bru is the market leader in coffee segment with a value share of 46.9 %. HLL decided to phase out Dilkush and Cafe brands. It then consolidated the coffee brands under the Masterbrand Bru. Bru before becoming the family brand was positioned as a coffee that tasted just like filter coffee. But after the elevation to master brand, Bru took the positioning around happiness. Bru was synonymous for instant coffee and had an astounding 21% market share in the first year of launch itself. All these years, the brand has been fighting for the numerous positions with Nestle whose iconic Nescafe brand was the market leader. But in 2008, the brand pushed Nescafe to the second position. The Success factor is: 1. Innovation in Product 2. Innovation in Packaging 3. Aggressive Advertisements Nestle lost out because of lethargy. The company failed to consistently invest in its Nescafe brand. HUL's marketing acumen is vivid in the rise of Bru as the market leader. It has never stopped innovating for this new brand. Bru was able to give new offerings to customers on a regular basis. One of the successful new products was the cappuccino packs. The new flavor gave the brand a new thrust in the market. The new flavors even prompted hardcore tea lovers to try out these flavors. The best part was that these cappuccino was available in single serve sachets which prompted consumers to test the flavors. Another innovation was the cold coffee. Bru launched the cold coffee variants which again captured the attention of the consumers. The coffee section is full of various flavors and packs of Bru which itself creates a positive vibration for the brand.
  54. 54. 43 Bru is positioned on the theme of happiness. The brand has the tagline “Happiness begins with Bru ". The positioning and communication has been consistent with the brand's promise of kick starting one's day with a Bru. For the Bru Cappuccino, it had roped in the Bollywood Director Karan Johar to endorse the brand. Another critical factor that aided Bru's success was the innovation in packaging. The brand made the entry barrier low by launching small affordable SKUs. There are single serve and large packs at different price points making the brand affordable. Recently the brand has yet again come out with a customer centric innovation in the form of a flavor lock. Most of the customers worry about losing the flavor of coffee powder once the pack is cut open. The flavor lock is a plastic clip which will lock the flavor from escaping. More than actually locking the flavor, the lock gives a psychological belief that the flavor will not be lost. This little plastic lock also gives more convenience to the home maker. Typically when buying powders in packs home makers have to transfer the powder to a container to preserve it for long. This lock effectively eliminates the need for such a container. Bru is a brand which has reached the commanding position following methodologically all the critical elements for marketing success : customer centric innovation, aggression and new product development.
  55. 55. 44
  56. 56. 13. TRENDS IN PACKAGING Consumers' tastes and preferences are changing rapidly, whilst consumption patterns are seeing a radical shift. As a result, marketers have to respond to this changing environment. Innovation in product packaging is central as they offer benefits beyond just being a medium to withstand storage and distribution challenges. Riding on the rapid shift in consumer graphics and spectrum in India, food packaging emerged as the new value differentiator for the FMCG companies in India. In the last couple of years, Indian FMCG sector has been marked with receding margins on the back of steep increase in the input prices as well as aggressive price competition at the retailing front. Consumers have become more informed, discerning and price sensitive. Their lifestyle transformed and lifestages have become much more complex and overlapping. As consumers have become more mobile and crunched for time, they have started seeking a number of auxiliary benefits such as convenience of consumption and usage. The 'Great Indian Retail Revolution', initiated at the break of the current century, has gained momentum all along the first decade. The organized retailing industry in India is at the threshold of mass adoption. The advent of organized retailing has also brought about the 'shelf war' amongst the FMCG manufacturers. India is seen somewhere at the middle of the evolution stage in terms of food packaging when compared with the developed economies such as Japan, Germany and the US. Data monitor analyzed the global scenario in the past one year to assess various packaging trends across the globe. Their analysis revealed four prominent trends driving the packaging innovations :- a) convenience of usage b) freshness and improved shelf life c) sustainable and environment-friendly d) packaging as a tool to position and promotes the brand. 45
  57. 57. Data monitor predicts a multi-dimensional shift in food packaging in India in the next five years. Advanced packaging techniques and concepts such as aseptic packaging and retort-able packages, although coming into existence, are yet to make a mark in India. However, with the consistent rise in the adoption of 'Ready to Eat/Drink' products amongst Indian consumers, it is expected to be only a matter of time before Indian FMCG market would be filled with products using advanced packaging technologies, primarily aimed at enhancing the shelf life of the products and to offer additional convenience to the consumers in terms of storage, consumption and portioning. Traditionally, product packaging has not been seen as a vehicle to promote the brand while it is changing now. For example Kissan Jams, targeted at the kids segment, is now using tube packages with catchy graphics to appeal the target audience. 46
  58. 58. Packaging Trend: The Future Outlook The packaging industry is going under transformation almost everyday and new technologies that are better than before are taking their place. Consumer behavior, product demand and the current level of global warming are all going to have a direct impact on the future of packaging The future of the packaging market is certainly looking bright. Following are some of the key trends that if implemented are going to keep this industry on its prime :- The Convenience for Society: Convenience seem to have emerged as an important characteristic in life of the people. Various changes in the societal outlook viz, structure of the family, number of working women rising, longer working hours and increase in commuting time, have also contributed to the need for convenience. Thus, the need for those kind of packaging, that enables the adult as well as children to open them, has risen. Also the future will see a great rise in the kind of packaging that allows one to indulge in multitasking, Health and Nutrition: With the people becoming more and more cognizant about their health viz obesity, low carbohydrate, less fat etc. , the manufacturers are deemed to introduce packaging that delivers the various information regarding the product in a convenient, easy to read manner. Green Trends: With the rate of green house emissions touching the skies, there is an urgent need to change the packaging trends that have been followed. The fact that even the people have become more sensitive towards the need of green technology, will surely helped in making the future of packaging more eco friendly. 47
  59. 59. 14. CASE STUDY : COCA COLA Introduction: As the world's largest manufacturer, distributor, and marketer of nonalcoholic beverage concentrates and syrups, operating in more than 200 countries, the firm supplies many products in addition to its flagship brand. These include fruit-based and other carbonated beverages tailored to local tastes as well as newer variants of the main brand, such as Diet, Cherry, and Vanilla Coke. Although carbonated beverages represented 85 percent of worldwide sales volume in 2002, increased market share for the Coke products Dasani bottled water, PowerAde sports drink, and Minute Maid orange juice have demonstrated growth in the noncarbonated sector. History of Coca Cola: Coca Cola, re-branded India in 1993, after having withdrawn from the country in the late 1970‘s in the wake of Foreign Exchange Regulation Act (FERA) of 1973. India has the world‘s largest middle class, secondly to China. Coca cola cited this as an opportunity. Coca Cola was the leading Soft drink brand in India Coke‘s acquisition of local popular Indian brand including Thumps up Maaza, Citra, and Gold spot provided not only physical manufacturing, bottling and distribution asset but also strong consumer preference. In 2000 the company launched the Kinley water brand and in 2001 Shock energy drink. 48
  60. 60. Branding and Packaging of Coca Cola Branding: From the Three A s to the Three P s‟ ‟ Coca-Cola used to focus its strategy on the three A‘s: availability, acceptability, and affordability. While these provided for tremendous growth, they also led to lowered entry barriers. Today, Coca-Cola‘s mantra is the three P‘s: preference, pervasive penetration, and price-related value. The Power of Brand Accessibility If you were another soft drink company, you might define your competitive frame of reference as the cola market or the soft drink market or even the beverage market. But Coke thinks of its business and its market share in terms of share of human liquid consumption. This makes water a competitor. Coca-Cola is Serious about Brand Building Each month, Coca-Cola tests 20 brand attributes with 4,000 consumers to measure movement. The company also compensates (bonus and other compensation components) a large portion of its senior managers based on brand preference. One Final Coca-Cola Fact A recent Coca-Cola annual report reported that the second most recognized expression in the world after “OK” is “Coca-Cola” 49
  61. 61. Packaging: The Coca-Cola bottle is probably the most easily recognized containers in the world. It was described by the 'Pop' artist Andy Warhol as, the 'design icon of the decade'. The smooth, organically shaped bottle was originally conceived in the early 1900's. It was a time when both the packaging and the actual Coca-Cola product was being imitated. In response to this the company, in 1916 set a brief , which was to find: 'A CocaCola bottle which a person will recognize as a Coca-Cola bottle even if he feels it in the dark. The Coca-Cola bottle should be shaped that, even if broken, one could tell at a glance what it was'. The bottle shown below is the 192ml size bottle. It is still sold in many countries throughout the world today. The bottle design was re-launched in Britain as recently as 1997. Coca-Cola conducted research which confirmed that consumers still preferred to drink Coca-Cola from a glass bottle. Bottling/Packaging Trends of Coca Cola: Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows. 50
  62. 62. 15. SURVEY ON : CONSUMER BEHAVIOR TOWARDS PACKAGING OF FMCG PRODUCTS 51
  63. 63. Formulating the Research Problem: “Understanding Consumer Behavior towards the Packaging of FMCG products” Objective of the Study:  Important attribute in our research Convenience, Materials, Aesthetic, Information.  To find out these Attributes affect Consumer Behavior Significantly.  Is there any significant difference between the Variables as there is change in Products?  To find out the Consumer Attitude towards the new Packaging of Preserved Products.  Is Packaging Influence Consumer to switch from one to another Brand?
  64. 64. 52 Significance of the Study : The aim of this survey is to find the role of packaging on consumer buying behavior. The basic purpose of behind it is to find out how such factors act behind the success of packaging. According to this research I try to find the positive relationship between independent variable and dependent variables. For collecting the data I will use the questionnaire. The significance of the study, its delimitation and limitations are discussed. The consumer buying behavior is dependent variable. The packaging is the most important factor. Packaging elements like Packaging color. Background Image, Packaging Material, Font Style, Design of wrapper, Printed Information and Innovation is taken as predictors. Due to increasing self-service and changing consumer’s lifestyle the interest in package as a tool of sales promotion and stimulator of impulsive buying behavior is growing increasingly. So package performs an important role in marketing communications, especially in the point of sale and could be treated as one of the most important factors influencing consumer‘s purchase decision. Literature analysis on question under investigation has shown that there is no agreement on classification of package elements as well as on research methods of package impact on consumer‘s purchase decision. By this article we seek to reveal elements of package having the ultimate effect on consumer choice. Taking into consideration that package could be treated as a set of various elements communicating different messages to a consumer; the research model was developed and tested in order to reveal impact of visual and verbal package elements on consumer‘s purchase decisions. Methodology: The methodology for the survey on Consumer Behaviour towards Packaging of FMCG Products is the Questionnaire method where in questionnaire are answered by
  65. 65. 100 respondents of 4 age groups. 53
  66. 66. Sample Design: The sample design for the survey is classified according to the age; total 100 respondents are selected for the survey out of which 25 respondents are selected from each age group. Age Groups Respondents 15-21 25 21-35 25 35-50 25 50+ 25 Pie-representation: 54
  67. 67. 16. Questionnaire Analysis and Research Findings 1. Does packet of a product influence your buying behaviour? Yes No Sometimes Response :  Tabular representation: Age Group Yes No Sometimes 15-21 22 0 3 21-35 23 0 2 35-50 18 5 2 50+ 13 10 2  Description: From the above results we can say that there is a high degree of impact of packaging on consumer behaviour. Out of the 100 respondents 76 says that they get influenced by the packaging of the product. The packaging have a greater impact on the age group of 15- 21 and 21-35. However the rest of the higher age group sometime‘s tends to change the product due to packaging 55
  68. 68.  Bar Diagram: 56
  69. 69. 2. What is your priority towards packaging? Protective Packing Eco- Friendly Packing Attractive Packing All of Above Response :  Tabular representation: Age Group Protective Eco- Friendly Attractive All of the Packing Packing Packaging above 15-21 3 4 13 5 21-35 3 5 8 9 35-50 8 5 5 7 50+ 6 7 2 10  Description : A consumer wants that packaging of the product should be a mixture of a matrial that should be eco-friendly and the main aim of packaging should be the protection of the inner goods. The age group between 15-21 wants that particular product packaign shoud be attractive The age group between 21-35 wants attractive as well a sence of environement is there in these group because of which they demand for a eco-friendly packaging. The age group between 35-50 and above 50 wants a mixture of all the factors and have lesser say on attractive packaging and have a focus on the protection that packaging should provide them. 57
  70. 70.  Bar Diagram: 58
  71. 71. 3. Do you switch your brand due to change in packaging of existing brand? Yes No Sometime‘s Response:  Tabular representation: Age Group Yes No Sometime‘s 15-21 8 5 12 21-35 5 6 14 35-50 3 11 11 50+ 4 13 8  Description: There is a lesser degree of a consumer to change their brand due to change in the packaging of the existing products. In the age group of 15 -21 these factor has relatively higher impact, these age group people tends to change their brand if they find change in the packaging of their existing brand and can switch to other brands which have attractive packaging. 59
  72. 72.  Bar Diagram: 60
  73. 73. 4. Which of the following aesthetic factor attracts you towards the purchase of the product? Color Shape & Text & Graphics Size Response:  Tabular representation: Age Group Colors Shape & Size Text & Graphics 15-21 11 8 6 21-35 8 9 8 35-50 5 15 5 50+ 6 11 8  Bar Diagram: 61
  74. 74. 5. Select the parameter of packaging due to which you prefer to buy the product? Convenience Material Use Aesthetic (color, shape, Information size) Response:  Tabular representation: Age Group Convenience Material Use Aesthetic (color, Information shape, size) 15-21 3 7 12 3 21-35 5 5 7 8 35-50 8 5 4 8 50+ 10 6 3 6  Description : While framing a packaging strategy these question should be addressed by the management of the organization. These factor or parameters add on to the marketing competitive edge for the products. Different Age group have there likings and have different taste, the age group of 15 - 21 wants that a packet should be attractive through its color, shape and size. 62
  75. 75.  Bar Diagram: 63
  76. 76. RECOMMENDATIONS  Brand is important and its strategy is in consideration in the units. Product packaging is valuable for brand equity, product differentiation, market segmentation, new product introduction, pricing, promotion etc. Brand name using plan implementation must be effective in the units.  All the marketing units pay attention for good packaging. They accept that poor packaging is one of the causes of product failure in the market. It is necessary to set the packaging standard and to implement accordingly for better protection and promotion of a product.  Consumer new product manufacturers mostly use the label in their products. Basically they describe that made it, where it was made, when it was made, what it contains, how to use it etc. Further they believe that the consumers are properly guided by label to use the products. The information given in the label and its value have to be highlighted while promoting the product in the market. It must also be more useful technically.  I do believe that culture difference does have an impact on company’s initiatives to design the product package, for instance, during our research; the choices of packaging colors are quite different between the West and Far East. Thus, we think that it is important for international companies to take a consideration of culture differences when they design the product package. 64
  77. 77. 17. CONCLUSION Results of research on role of packaging on consumer‘s buying behavior stipulated following conclusions:  Package could be treated as one of most valuable tool in today‘s marketing communications, necessitating more detail analysis of its elements and an impact of those elements on consumers buying behavior.  Appropriate and vivid picture or packaging color which delivers them a happy feeling, or an easy handle/open/dose/dispose package shape. All these elements contribute each important effort to catch consumer’s attention and interest. Besides each element’s single function, we think that a good combination of those elements may let the product more eye-catching and attractive.  The impact of package and its elements on consumer‘s purchase decision can be revealed by analyzing an importance of its separate elements for consumer‘s choice. For this purpose main package‘s elements could be identified: graphic, color, size, form, and material of packaging are considered, wrapper design, printed information, innovation while product information, producer, country-of- origin and brand are considered as important ones. Moreover, the impact of package elements on consumers purchase decisions should be evaluated depending on the consumer‘s involvement level, time pressure or individual characteristics of consumers.  Empirically testing the research model proposed, package elements having the ultimate effect on consumer choice in a case of different products from group of convenience goods were determined: 65
  78. 78.  It has revealed that elements of package are the most important for consumer‘s purchase decision. For a major part of consumer’s a size and material are the main visual elements, while product information is also the main verbal elements when purchasing milk and washing-powder.  Results of analyzing the impact of package elements on consumers purchase decisions depending on level of involvement correspond with those of theoretical studies and let us stating that visual elements of package have relatively stronger influence on consumer‘s purchasing when they are in the level of low involvement, in opposite to those who are in the level of high involvement.  Packaging has a better reach than advertising does, and can set a brand apart from its competitors. It promotes and reinforces the purchase decision not only at the point of purchase, but also every time the product is used. Packaging in different serving sizes can extend a product into new target markets or help to overcome cost barriers. Packaging can even drive the brand choice (especially in the context of children‘s products).  Research into packaging has found that different packaging cues impact how a product is perceived. Often the packaging is perceived to be part of the product and it can be difficult for consumers to separate the two (the concept of gestalt). Aspects such as packaging color, typography, illustrations and graphics can influence how a product is perceived. 66
  79. 79.  According to my research, I found out that most consumers like the product quality after they purchased their desired packaged products. Based on those facts, we can not say there is a 100% equal relationship between good package and good product quality, but there is a positive thinking and trend about well-designed package shows high product quality. As a matter of fact, people are becoming more and more demanding; packaging has been gradually shown his important role in a way to serving consumer by providing information and delivering functions. With its different functionality to ease and to communicate with consumers, there is no doubt about increasingly important role of packaging as a strategic tool to attract consumers‘ attention and their perception on the product quality. 67
  80. 80. 18. Bibliography Web Sites: http://en.wikipedia.org/wiki/Packaging_and_labeling http://www.indiapackagingshow.com/ http://packnomics.com/Where_s_The_Money_.html http://www.indianmba.com/Faculty_Column/FC337/fc337.html http://www.brandchannel.com/papers_review.asp?sp_id=1492 http://gdpackaging.wordpress.com/2010/03/01/introduction-to-packaging-design-article/ http://www.packagingtoday.com/ http://www.print-packaging.com/education.htm http://www.cosmetic-packaging-manufacturers.com http://www.wasteonline.org.uk/resources/InformationSheets/Packaging.htm Books:  Keller, K. L. (2003). Strategic brand management: Building, measuring and managing brand equity, 2nd ed., Englewood Cliffs, NJ: Prentice-Hall.  Kotler, Ph. (2003) Marketing management, 9th ed. Upper Saddle River: Prentice-Hall. 68
  81. 81. 19. Annexure Questionnaire: Survey on: “Consumer Behavior towards Packaging of FMCG Products” Name: Age Group: 15-21 21-35 35-50 50+ Gender: Male Female Occupation: 1. Does packaging of a product influence your buying behavior ? Yes No Sometimes 2. What is your priority towards packaging? Protective Packing Eco- Friendly Packing Attractive Packing All of Above 3. Do you switch your brand due to change in packaging of existing brand ? Yes No Sometimes 69
  82. 82. 4. Which of the following aesthetic factor attracts you towards the purchase of the product? Color Shape & Size Text & Graphics 5. Select the parameter of packaging due to which you prefer to buy the product? Convenience Material Use Aesthetic(color, shape, size) Information 70

×