Chapter 1
INTRODUCTION
1.1 Introduction
The packaging industry is actually a collection of industries involving raw material production
(paper, plastics, metals), the conversion of raw materials into forms ready used for package
applications (coating, laminating, printing), product/package design (foods, pharmaceuticals,
cosmetics, chemicals), distribution and logistics (warehousing, distribution, transportation) and
end-of-life-cycle processing (recycling, reusing, water-to-energy).
Legal issues
Consumer behavior and point of sale
Economic factors
Social culture issues
Technology
Production manufacturing
Competitors
Distribution channels
Regional trends
Ecology environmental concerns
The fast moving consumer goods (FMCG) industry is important within the UK economy. FMCGs
are low-priced items that are used with a single or limited number of consumption occasions
(Baron etal., 1991) and are also sometimes referred to as consumer packaged goods or
groceries. FMCG is composed of three major product segments: food, beverage and household
(Key Note, 2006a). This industry employs 3.2 million people in the UK, which represents 16% of
the total workforce.
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The fast moving consumer goods (FMCG) industry is important within the global economy.
FMCGs are low-priced items that are used with a single or limited number of consumption
occasions and are also sometimes referred to as consumer packaged goods or groceries. FMCG
is composed of three major product segments: food, beverage and household (Key Note,
2006a). This industry employs 3.2million people in the UK, which represents 16% of the total
workforce.
It is responsible for £125 billion of consumer expenditure and contributes over 8% of GDP
(Bourlakis and Weightman, 2004). The leading UK supermarket FMCG retailers are among the
largest and most concentrated in the world in terms of retail floor space, net sales and market
share (Kuipers, 1999).
Packaging is the science, art and technology of enclosing or protecting products for
distribution, storage, sale, and use. Packaging also refers to the process of designing,
evaluating, and producing packages. Packaging can be described as a coordinated system of
preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains,
protects, preserves, transports, informs, and sells. In many countries it is fully integrated into
government, business, institutional, industrial, and personal use.
Packaging is 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 example, 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, for instance--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.
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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.
In my intern report, I tried to explore the total production process of Astech limited. The
information or data collected from several source of company.
Primary sources
Major source of information is taken from engineers, production manager, HR manager, supply
chain head, machine operator of Astech Ltd. Some information are collected by questionaries’
method and informal survey.
Secondary sources
Some data are gathered by using company website and online sources. I have also collected
some production related information from the workers of Astech Ltd.
Changing your packaging can have a variety of effects on your sales, costs, brand and retail store
placement. Some business change their packaging as a proactive strategy to increase sales, while others
do so to cut costs. Before you make a change in your product’s box, can or container, review the various
results that might occur and their impact on your bottom line.
1. Promotion
If your product sits on a shelf with many other competing products or in an aisle with hundreds of other
products, changing the color, size, shape or other features of its packaging can make it stand out for
consumers. Visit retail stores where your product is sold to see how it’s displayed and how it competes
with other products for attention. Adding temporary messages -- such as a price discount, contents
increase, health benefit or product award -- inside an attention-grabbing graphic can help you send a
targeted marketing message.
2. Footprint
Sophisticated retailers calculate the square inches a product takes up on its shelves and the revenue the
product generates per square inch. If you use a large box to get consumers’ attention, your footprint
might take up shelf space a retailer could use for two other products that, when combined, generate a
larger profit. Discuss with your retailers their desire for larger or smaller product packaging based on
their desire to create attention or generate higher profits based on shelf space.
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3. Green Effect
If you reduce the amount of materials you use in your packaging or use recycled materials, you can
advertise this to your advantage. Environmentally conscious consumers might be willing to spend more
to buy a product that uses less energy and fewer natural resources to produce. Review your customer
demographics and conduct a survey or focus group to determine if going green with your packaging will
increase your sales.
4. Graphics
The graphics on your packaging can convey messages or evoke feelings in consumers, based on the
images and colors you use. Different shades of blue are considered cool, relaxing colors, while reds,
oranges and yellows are seen as hot or exciting. Children respond to cartoons and drawings. Photos of
people using your product can create empathy or reassurance. Some businesses test-market packaging
by selling the same product in different packages in different locations to determine which graphics
work best.
5. Price
One of the four cornerstones of the marketing mix is price. Reducing your packaging costs lets you
reduce your selling price, if that’s important to your brand and profit strategy. If you choose to sell at a
higher price to create a higher perceived value, a sturdier or larger package can send the message to
consumers that the contents are more valuable.
This report is based on the thesis program where I have reviewed the basic manufacturing
process of different types of plastic packaging. It also contains uses of various mechanical and
electrical equipment which are used to manufacture plastic packaging. It also contains other
relevant information about Astech Limited which we have gathered during my thesis .
In spite of being employee of Astech Limited, there were some limitations and obstacles I have
faced during preparing this report. The main difficult part was to collect necessary information
from other department because lack of mutual understanding.
To collect primary data some individuals did not show interest while trying for interviewing
them. Along with these, there were some other major limitations which I have faced while
collecting the information. The can be pointed out as below:
Time limitation was a major constraint to gather the data.
Some of the employees were no willing to share information regarding the company as the
company follows a strict code of conduct.
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Misleading Labels: Often, products have words such as “fat free,” “low-fat,” or “organic” on the
labels. The labels could mislead the customer into thinking something that may not be the case.
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Pepsi Ad in Canada: In Canada, all product labels must appear in both official languages: English
and French.
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Colors
Colors also have different meanings in different cultures. For example, in Egypt, the country’s
national color of green is considered unacceptable for packaging, because religious leaders
once wore it. In Japan, black and white are colors of mourning and should not be used on a
product’s package. Similarly, purple is unacceptable in Hispanic nations because it is associated
with death.
Customs and Taboos
All cultures have their own unique set of customs and taboos. It is important for marketers to
learn about these so that they will know what is acceptable and what is not for their marketing
programs.
Aesthetics
The term aesthetics is used to refer to the concepts of beauty and good taste. The phrase,
“Beauty is in the eye of the beholder,” is a very appropriate description for the differences that
exist between cultures. For example, Americans believe that suntans are attractive, youthful,
and healthy. However, the Japanese do not. These key differences apply to labels and branding
as well.
Placement
How the product is distributed is also a country-by-country decision influenced by how the
competition is being offered to the target market. Using Coca-Cola as an example, not all
cultures use vending machines. In the United States, beverages are sold by the pallet via
warehouse stores. In India, this is not an option. Placement decisions must also consider the
product’s position in the market place. For example, a high-end product would not want to be
distributed via a “dollar store” in the United States. Conversely, a product promoted as the low-
cost option in France would find limited success in a pricey boutique.
Effective global advertising techniques do exist. The key is testing advertising ideas using a
marketing research system proven to provide results that can be compared across countries.
The ability to identify which elements or moments of an ad are contributing to that success is
how economies of scale are maximized.
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Chapter 2
Literature Review
Packaging Strategies
From the marketing perspective, packaging strategies can have a significant impact on brand
awareness, brand recognition, expectations management, and as a conduit of information
between the organization and the user. Marketing, branding, and packaging must align on
messaging, value proposition, and communication to accomplish the following:
Value Proposition
The primary purpose of packaging from a marketing perspective is to underscore why a user
would purchase a given product. This could be extremely simple, such as a description of what
the product is. This could also be emotional, communicating what the product stands for. For
example, perhaps an informed consumer wants to buy locally sourced food. A smart marketing
strategy for organizations focused on local production would be to highlight this in big letters
on the package.
Brand Recognition
Another important purpose of packaging for marketers is the capacity for building recognition
of the brand. When you see a red can of soda with cursive writing, you almost immediately
associate it with Coca-Cola. This is strategic on behalf of the company. It builds recognition,
which can lead to loyalty.
Brand Awareness
Slightly different than recognition, building brand awareness is all about the opportunity to be
memorable. Creating packaging that will draw the attention of a consumer will increase that
brand’s ability to convert the customer both in this instance, and in later instances. For
consumers, their attention is a much desired commodity for organizations. Packaging is an
opportunity to accomplish this.
Expectations
A key component of effective marketing is ensuring the consumer gets what they expect (and
preferably a bit more). This way, the association of the consumer is a positive one when
considering the organization, relative to what they had expected. Packaging allows for simple
strategies in this regard, such as stating on the package that batteries aren’t included, or that a
given accessories isn’t compatible with certain types of smart phones.
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Co-branding
Another interesting and useful strategy within packaging is co-branding. Simply put,
organizations often collaborate, and can benefit from sharing this collaboration. Ben and Jerry’s
ice cream uses a ton of different ingredients, many of which may be another organization’s
brand. Heath bar in Ben and Jerry’s, for example, could be co-branded on the package.
Symbols and Icons
Packaging is a visual representation of a product, and can benefit from established and
trustworthy markings of certain attributes. For example, a 100% organic symbol on a box of
cereal would indicate to the user that an external third party verified and approved of the
cereal manufacturer’s production process. Using recognizable symbols and icons can build trust
between the organization and the consumer.
Product Labeling
Labels serve to capture the attention of shoppers as well as provide useful information
regarding the product.
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To be fit for purpose, packaging must protect and preserve. Plastic packaging performs this
function particularly well and provides many other advantages for consumers, suppliers and
society. Plastic is:
Resource efficient: plastic packaging saves packaging mass, energy and greenhouse gas
(GHG) emissions. Without it, we would use 2-3 times more resources.
Source: The impact of plastic packaging on life cycle energy consumption and
greenhouse gas emissions in Europe: Executive Summary July 2011, Bernd Brandt and
Harald Pilz
Safe: plastic is shatter resistant, containers do not break when they are dropped or
knocked over, this makes them particularly useful for certain environments, such as the
bathroom, around children, at the pool, by the beach or on the go.
Hygienic: plastic keeps products free from contamination. This is particularly useful for
medical packaging as packaging can be filled and sealed hygienically without any human
intervention. (e.g. sterile syringes).
Light weight: plastic packaging is lightweight and can take up less space than
alternatives, which means lighter loads for planes and trucks and lower emissions.
Secure: plastic can be sealed shut or moulded into a safety mechanism (e.g. child proof
locks on medication)
Durable: because plastic packaging is so durable, plastic packaging can be very thin. This
means it uses fewer resources and takes up less space for transport which means fewer
trucks, trains or planes are needed to transport it.
Versatile: plastics can be transformed in many different ways. They can be blown,
injected or thermo moulded. This means it can be used to package pastas and sauces. A
variety of decorative effects and colors are also available.
Recyclable: plastic packaging can be recycled many times to create new products, the
rates of recycling and the number of different plastics that are recycled in the UK been
increasing.
From airtight wraps to shelf stable bottles and containers, plastic packaging plays a key role in
delivering a safe food supply, from farm to table and is a material of choice for freezing foods
for longer term storage. Plastics have also driven innovations in packaging design. For example,
modified atmosphere packaging helps preserve food freshness by capturing a reduced-oxygen
air mixture in a plastic package. This technique can extend a product’s shelf life by slowing the
growth of bacteria.
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In the United States, the Food and Drug Administration regulates the safety of food-contact
packaging, including plastics used in contact with food. Many plastics, such as polystyrene and
polyethylene, have been used in food packaging for decades. All food-contact packaging
materials must pass FDA’s stringent approval process—the agency must find them safe for use
in a specific packaging application—before they can be put on the market.
Food and Beverage packaging is among the most recycled packaging and we see increasing
recycling rates for bottle and containers every year.
Bottles
A recent national study found that more than 90% of Americans can recycle plastic bottles in
their communities. Over 3.0 billion pounds of plastic bottles (for beverages, household
cleaners, detergents, etc.) were recycled in the U.S. in 2015. Today nearly 32% of plastic bottles
are recycled. (full report here).
Containers
Recycling of non-bottle plastic packaging containers (dairy tubs, deli containers, lids, etc.)
reached nearly 1.3 billion pounds in 2015, four times the amount recycled in 2007. A recent
study found that more than 60% of Americans now can recycle these rigid containers , so
product labels can identify these containers as “recyclable,” which is expected to help further
increase recycling rates.
Few sectors value beauty, design and function as much as the cosmetic packaging industry.
From high-end luxury cosmetics to everyday personal care products, plastics play a major role
in delivering products to market.
Modern Luxury
In the 18th and 19th centuries, perfumes, fine creams and other high-end personal luxuries
were almost exclusively packaged in glass and ceramic. However, the advent of hi-tech specialty
resins has enabled designers to create unusual shapes, specialty colors and delivery
mechanisms with plastics. Whether it’s sparkling clear, durable, diamond-faceted containers or
copper-hued, satin-finish flexible tubes, plastics enable lightweight, durable and attractive
packaging solutions.
Personal Care
For personal care products, plastics are a material of choice for manufacturing shatterproof and
“no-spill” bottles, jars and tubs, caps and closures. Flexible pouches and tubes allow for
improved product evacuation, which can reduce waste, while maintaining visibility. Plastics also
enable innovations like compact and portable packaging, which is a growing consumer trend.
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Sustainability Outlook
As brand owners increasingly look to reduce the amount of material, plastics
deliver unparalleled benefits in terms of allowing for the design of lighter weight packaging
solutions using less material overall. Increasingly, packaging designers look for ways to use
recycled content, design for recyclability where it makes sense, and include helpful recycling
guidance on product labeling.
The adaptability of plastic packaging allows it to meet a variety of needs for consumer goods.
As packaging moves from design phase through recovery/disposal, the varying types of plastics
and their unique properties enable many of the choices made along the way: color, weight,
size, shape, utility, printing, protection and so on.
Plastics help bring home more product with less packaging. Plastic packaging in general is
lightweight and strong—different plastics can be molded, extruded, cast and blown into
seemingly limitless shapes and films or foams. This resourcefulness often delivers while using
minimal resources, creating less waste, consuming fewer resources and creating fewer
CO2 emissions than alternative materials. Plastics make packaging more efficient, which
ultimately conserves resources.
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4.2 Packaging
As we know first impressions go a very long way in how people perceive anything. This is the same
idea that companies implement via their packaging. The outer appearance of the product (the
package) is the first thing a potential customer will see, and so it can be a great marketing tool for
the product.
In fact, the package of a product serves multiple practical purposes as well. Let us take a look at
some of the uses and functions that it serves.
Protection: The first and the most obvious use of packaging is protection. It physically
protects the goods from damage that may be caused due to environmental factors. It is the
protection against breaking, moisture, dust, temperature changes etc.
Information Transmission: Packaging and labeling are essential tools to inform the customer
about the product. They relay important information about directions for use, storage
instructions, ingredients, warnings, helpline information and any government required
warnings.
Convenience: Goods have to be transported, distributed, stored and warehoused during their
journey from production to consumption. Packaging will make the process of handling goods
more convenient for all parties involved.
Security: To ensure that there is no tampering with the goods packaging is crucial. The
package of a product will secure the goods from any foreign elements or alterations. High-
quality packages will reduce the risk of any pilferage.
(Source: standuppouches)
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Effective packaging can actually help a company attract consumers to their product. It can be the
tool that sets apart their product in a vast sea of options that the consumer has at their disposal. A
good packaging can actually add to the perceived value of a product.
There are some effective techniques one can use to ensure that your product package is a great
marketing tool for your product. Let us take a look at some elements that you can incorporate into
a package to make it more effective.
Capturing Attention:
One important aspect of a package is that it must draw the attention of a potential customer when
it is sitting on a shelf. It does not have to be the loudest or brightest package, but it must be unique
in some way. Sometimes simplicity could be what sets it apart. Other factors could be the shape,
the colour scheme or even the texture of the package.
recognizable brands should not change a thing because many successful brands that changed
their logo, colors or packaging have seen a sort of backlash from shoppers after making a big
change.
Packaging and branding are two of the most important aspects that go into marketing, and
should be strategized thoughtfully. In a world that revolves around brands, it’s important to
determine how your business will stand out. Packaging and branding help build a concise brand
personality, attract new customers and keep loyal customers. Here are things to consider when
getting started.
Visual Aesthetic
What does your brand’s logo look like? What type of fonts do you use? What colors best
represent your brand?
Take the time to build a thoughtful and detailed visual description of your brand. Explore what
best resonates with your business in all of these visual aspects. A brand identity is lifelong, and
not something that should be changed regularly. A consistent brand image can establish your
credibility and will initially spark interest from consumers. The most powerful brands in the
world remain consistent with brand colors, logos and identity.
Gain color inspiration from websites such as Pantone + Pinterest.
Fig:Packaging
In a competitive marketplace, packaging is so much more than just placing your product in a
box — it’s an opportunity to “wow” your customer! Make opening your package an experience.
Showing your customers that you went the extra mile will make a great impression. This can be
done in small but impressive gestures such as a thank you card, or creating eye catching
exterior packaging design.
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So, why do these details matter so much? They help you stand out from the crowd.
Creating a brand that truly resonates with your mission will ultimately give you the individuality
you need to succeed. Consistency in branding and packaging fosters brand recognition. Who
doesn’t want more of that?
A great example of a company dominating branding is Glossier, the skincare/cosmetics line
loved by millions all over the globe. Why do they do so well? Not because they have the best
cosmetics, but because their packaging is more than bubble wrap and a cardboard box. It looks
like a gift, rather than any other item purchased online. The brand includes stickers and a thank
you card with every online purchase. These details matter, and sets them apart from their
competitors.
We specialize in creating customized packaging as well as branding services. Elevate your
marketing strategies with Anthem Branding.
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Chapter3
Company Profile
Astech :
Astech Limited, incorporated in 1988, has been in the business of plastics conversion and
manufacturing of quality plastic products for the past 32 years. We are a one-stop-shop for all
plastic packaging related products, from the designing stage right through to the-end-product.
Astech acquired sufficient technology & experience that helps it to stay ahead of competition.
Our track record of meticulous supplies to formidable Multinational Companies bears
testimony to our commitment to excellence, Zero defects and dot-on-time delivery I throw
myself down among the tall grass by the trickling stream and as I lie close to the earth, a
thousand unknown plants are noticed by me: when I hear the buzz o f the little world among
the stalks and grow familiar with the countless indescribable forms of the insects and flies, then
I feel the presence of the Almighty, who formed us in his own image, and the breath.
What We Do :
Product Range :
High-end Plastic Injection molding machines.
Multi Head blow molding machines (IBM).
Injection Blow molding machines.
Multi-layer parison controlled Blow molding machines.
Full auto Pad Printing machines.
Multi-color, high speed UV bottle printing machines.
Full auto precision Labeling Machines.
Auto cap folding/closing machines.
Hot stamping/Silver ribbon cap/decoration and hot foil decoration.
Production Facility :
Plastic bottles and containers for FMCG Personal Care products (cosmetics, lotion, shampoos),
Lubricants, Paints etc.
Bi-layer coextruded bottles (for personal care products, specially Shampoos & Body Lotions).
Three-layer coex bottles (for agro chemical & pesticide) Caps and closures (flip-top caps, pullout
safety caps, child safety caps, tamper-proof caps).
Lubricant and Paint containers, buckets and jars.
Multi-color, high speed UV bottle printing machines.
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Factory Building :
Multi level, RCC building with a gross 150,000 floor area, fully forced ventilated, well lit, clean,
dust-free congenial working atmosphere.
Chapter 4
Packaging is a key part of the marketing plan for any business that makes or sells products. A product’s
package can be the selling point for many consumers by delivering a sense of quality while also
reflecting the product’s brand image. It is critical in retail sales, where the right packaging design can
attract the consumer's eye and make the product stand out next to a rack of the competitor's product.
Consumer Behavior
Color and design in packaging can have a noticeable effect on shopping behaviors, writes Consumer
Reports.org. Color is often used in packaging to attract attention, but colors also must be taken in the
context of the product’s marketing goals. For example, children’s cereal packaging has many bright
colors that attract their eyes, health-focused cereals will have more whites and pastels to project a
softer, more adult image. Brands with strong color patterns should incorporate them into the packaging
design.
Branded Packaging
Customers will associate a brand’s image with how its product is packaged. Technology products often
come in sleek and unique packaging to reinforce the image of innovation that the company’s brand aims
to project. Beverages may have unique bottle designs and the packaging for a food product could
feature a design that makes it easier to eat. The brand image that the product’s packaging promotes
should differentiate it from competitors, which can be difficult when the products are similar.
Color Patterns
Similar types of products will often adopt similar packaging color and design. Black, silver and gold are
often used for luxury products. White is a popular color for packaging cleaning products, and lavender
can create the feeling of spiritualism to attract buyers of new-age products. Brands that aim to present
an edgy look will often pair bright colors with black, which also implies an appearance of energy and
sophistication, according to the Design Force website.
Secure Packaging
Packaging can affect the consumer’s experience by keeping the product secure. Sturdy, secure
packaging can prevent the product from breaking during shipping, which not only will help prevent
costly returns, but also boost perceptions of quality in your customers' eyes. Companies with products
that target environmentally conscious markets will want to consider sustainability in packaging. Using
creative design along with recycled and biodegradable materials in product packaging will reinforce
consumer’s good feelings about the product. However, it should be an authentic effort, as poor product
packaging could create feelings of distrust in consumers over being “green-washed.”
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One of the most important elements in the Marketing mix is Promotions. And lately, packaging
has become a strong element of the Marketing mix. Some say it should fall under Promotions
because it helps in attracting attention for the product. Others say, it serves a much higher
purpose then only promotions and hence the argument is that packaging can become the 5th P
of the marketing mix. Nonetheless, we feel the role of packaging is very important in Marketing
and sales.
Here are a set of crucial roles that packaging plays in an organization or for the product.
Thus, when products are sold in large quantity and you cannot have a salesman for each
customer, the role of packaging is to convey the information to the customer. Below is an
example of a Maggi packet, where it specifies how to make maggi and also gives additional
information of the beneficial nutrition to be found in Maggi and specifically, the harmful
nutrients which are not there in Maggi.
2) Information as a safeguard –
Packaging information can also be used as a means to safeguard the company. In case someone
sues the company for information not provided, and that information is already printed on the
packet, then the company can raise it hands and say that the information was already provided.
Here’s a funny take. If you have seen the FRIENDS episode where Ross comes to know that
condoms are effective only 97% of the time, you can see the hilarity that follows. And yes, the
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condom company is safe even if someone gets pregnant. Because they have clearly written that
they are effective only 97% of the time. Get the gist how packaging can save you?
4) Utility – Besides being attractive and promoting the product, another utility that packaging
serves is in safeguarding the product. Protection of the product, carrying it safely, not allowing
damage of the product, transportation of the product are all examples of the utility and the role
that packaging plays. Even basic things like Milk and Grocery items like Salt and Sugar come
packaged because ultimately you don’t want ants or other pests reaching these products. So at
a base level, the utility of packaging is to safeguard the product. Utility of the product can be
increased by changes in packaging design. Baby sippers, bottles, storage containers are all
designed nowadays to increase the utility of the product.
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6) Brand recognition – A special mention needs to be given for the brand recognition and the
role packaging plays in it. There is a very small brand in India known as “Balaji” chips and
wafers. Let me tell you, the fight that Balaji is giving to Lays and other chips is astounding. And
the yellow colored packaging plays a major role in the push of the chips brand. It is distinct, and
even on highways, when people want to munch on something, the packaging is observed from
a long way across, thereby bringing an impulsive push for the brand.
If we discuss it at local levels then Balaji is good, but it will be wrong to not praise the packaging
of Lays as well. The bright blue color, its usage in their promotions, and the chips on the cover
have made Lays a favorite snack all across. In a larger format, look at Haldirams, Gems, M&M’s
or any other such FMCG products and you will see how they package their products attractively
for the delight of their consumers. Kitkatpackages its products in red and inside is a Silver foil. It
specifically promotes the tearing apart of the silver foil and how to break the kitkat inside. This
is majorly to drive brand recognition and bring acceptance in the market for the products.
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7) Differentiation – A key role of packaging is differentiation. A look at the brand Sunsilk will tell
you exactly how packaging can differentiate between products. Each Sunsilk shampoo is made
by a different hair expert and the objective of each Sunsilk shampoo is different as well. One of
them will be for Anti dandruff, whereas other will be for hair fall and yet other will be for
smoothening the hair etc etc. In that, there would be a matching conditioner also.
Consequentially, all you have to do is go to the supermarket and buy the pink Sunsilk shampoo.
Or you can buy the black or golden one. Your brand and the packaging color becomes clear in
your mind that “this is what you want”. Have another look at Tide (Orange), Rin
(Blue), Ariel (Green) or surf excel (Navy Blue, Green and orange). All of them are soaps. But if
one of them is your favorite, you will be able to spot it right across the super market.
8) Promotions – Ever seen the deal of 1 + 1 free? Or any other bundled offer? That you buy a
soap and you get a shampoo free? You buy a shaving kit and you get so many blades free? Well,
these below the line promotions are majorly dependent on the packaging that goes along with
the product. Besides this, there are other ways to package a product to use it for promotions of
the company. Like instead of sending plastic bags like other E-
commerce players, Amazon always sends its products in cardboard boxes to keep it safe. As a
result, Snapdeal (in India) recently launched its own variant of the box with the tagline “Unbox
life” and the box was a beautiful red color and smaller units were delivered in this red box.
Similarly, various other below the line promotional methods can be used while packaging a
product.
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9) Decision making – Finally, the main role of packaging is in consumer decision making.
Packaging is the final salesman on the frontier. You spend a lot on advertising, branding,
marketing and sales and you got the customer inside the showroom and in front of a line of
products. Many a times, the decision taken by the consumer is influenced a lot by the
packaging of the product. Hence many times, you will find that books pay a lot of attention to
the cover photo. This is because authors understand the age old philosophy that many people
buy a book based on its cover. As a result, it directly influences the consumers decision making
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Chapter 5
design are applied to the surface of the package and often to the point of sale display. Most
packaging is designed to reflect the brand's message and identity.
Permanent, tamper evident voiding label with a dual number tab to help keep packaging secure
with the additional benefit of being able to track and trace parcels and packages
Portion control – Single serving or single dosage packaging has a precise amount of contents to
control usage. Bulk commodities (such as salt) can be divided into packages that are a more
suitable size for individual households. It also aids the control of inventory: selling sealed one-
liter bottles of milk, rather than having people bring their own bottles to fill themselves.
Branding/Positioning - Packaging and labels are increasingly used to go beyond marketing to
brand positioning, with the materials used and design chosen key to the storytelling element of
brand development.
30
packaging when used to combine smaller packages, or tertiary packaging when used to
facilitate some types of distribution, such as to affix a number of cartons on a pallet.Symbols
used on packages and labels.
ht
Fig:A bar code on a tin of condensed milk.
Many types of symbols for package labeling are nationally and internationally standardized. For
consumer packaging, symbols exist for product certifications (such as
the FCC and TÜV marks), trademarks, proof of purchase, etc. Some requirements and symbols
exist to communicate aspects of consumer rights and safety, for example the CE marking or
the estimated sign that notes conformance to EU weights and measures accuracy regulations.
Examples of environmental and recycling symbols include the recycling symbol, the recycling
code (which could be a resin identification code), and the "Green Dot". Food packaging may
show food contact material symbols. In the European Union, products of animal origin which
are intended to be consumed by humans have to carry standard, oval-shaped EC identification
and health marks for food safety and quality insurance reasons.
Bar codes, Universal Product Codes, and RFID labels are common to allow automated
information management in logistics and retailing. Country-of-origin labeling is often used.
Some products might use QR codes or similar matrix barcodes. Packaging may have
visible registration marks and other printing calibration and troubleshooting cues.
Shipping container labeling
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"Print & Apply" corner wrap UCC (GS1-128) label application to a pallet load.
Technologies related to shipping containers are identification codes, bar codes, and electronic
data interchange (EDI). These three core technologies serve to enable the business functions in
the process of shipping containers throughout the distribution channel. Each has an essential
function: identification codes either relate product information or serve as keys to other data,
bar codes allow for the automated input of identification codes and other data, and EDI moves
data between trading partners within the distribution channel.
Shipments of hazardous materials or dangerous goods have special information and symbols
(labels, placards, etc.) as required by UN, country, and specific carrier requirements. On
transport packages, standardized symbols are also used to communicate handling needs. Some
are defined in the ASTM D5445 "Standard Practice for Pictorial Markings for Handling of Goods"
and ISO 780 "Pictorial marking for handling of goods".
Flammable liquid
Explosives This way up
5.3 Packaging development and design can be viewed in four different ways:
The packaging industry is actually a collection of industries involving raw material production
(paper, plastics, metals), the conversion of raw materials into forms ready used for package
applications (coating, laminating, printing), product/package design (foods, pharmaceuticals,
cosmetics, chemicals), distribution and logistics (warehousing, distribution, transportation) and
end-of-life-cycle processing (recycling, reusing, water-to-energy).
Legal issues
Consumer behavior and point of sale
Economic factors
Social culture issues
Technology
Production manufacturing
Competitors
Distribution channels
Regional trends
Ecology environmental concerns
The fast moving consumer goods (FMCG) industry is important within the UK economy. FMCGs
are low-priced items that are used with a single or limited number of consumption occasions
(Baron etal., 1991) and are also sometimes referred to as consumer packaged goods or
groceries. FMCG is composed of three major product segments: food, beverage and household
(Key Note, 2006a). This industry employs 3.2 million people in the UK, which represents 16% of
the total workforce.
Packaging affects many areas of the company which can each be of benefit to each other. To
this end THIMM Consulting has created a concept workshop, in which we involve all areas and
departments in the concept development in order to combine the requirements. For instance,
the purchasing department often wants to negotiate a reasonable price, marketing uses
packaging as a communications tool, in the production department packaging must run
smoothly over the machines to ensure a smooth production process and in logistics cost-
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effective storage and sustainable shipping and transportation must be feasible. Each company
department therefore contributes to a cross-departmental packaging concept. In order to avoid
time-consuming meetings and costly organization, our kick-off workshop is the best possible
support for you in this process.
Our "Phase ZERO" workshop is used as a quick start for analyzing a packaging problem. Before
the workshop THIMM Consulting will carry out store checks and Best Practice analyses. The
criteria here will differ from department to department. Material costs are an important factor
for every company and in this context we must also take disposal costs, replacement costs for
tools or artwork and process costs into account. As regards distribution transportation stability
is an important criterion therefore packaging has to ensure requirements-specific protection up
to the POS. This also includes inbound storage costs, operational handling and outbound pallet
utilization. Retailers and consumers, packaging materials, packaging technologies and
sustainability, etc. are other aspects to be included in the evaluation criteria. These criteria are
then specified, evaluated and weighted with the complete team within the context of the value
analysis and according to established procedures. This analysis includes your existing packaging
in a comparison with new developments.
The value analysis is the cornerstone for the packaging development. Using the value-analysis
grid, the THIMM Consulting packaging engineers develop the packaging overnight. This
teamwork saves significant costs and time.
The analyzed requirements and functions are processed directly into the packaging planning.
One important source of information for the packaging engineers is the nature of the product
as this will enable them to convey the resulting requirements onto the packaging. The early
packaging planning phase must take account of packaging properties (e.g. load-bearing product
or non-load bearing product), packaging processes (automated or manual) and packaging
volumes (continuous or action-related) and incorporate them into the development. The means
of transportation used leads to different logistics requirements. For example, a cardboard box
shipped nationally by HGV on a pallet requires different technical limit values to a plastic
transport container that is shipped by sea over many long weeks by container to China.
Packaging planning is the preliminary work for the actual packaging design. The packaging
material and packaging aids are specified and initial packaging types are determined.
THIMM Consulting plans the packaging independently of materials and is therefore supplier-
neutral. Paper-based materials (corrugated cardboard, solid board, paper) as well as plastics
and films, foam, wood and metal are all used as materials. Different padding and cushioning
35
materials (air cushions, corrugated cardboard padding, cushion foam / cushion foam parts,
fixing foam, etc.) are planned in as required.
Computer-aided design (CAD) software applications are used to design packaging. The most
common applications include ArtiosCAD (Esko) and Impact CAD (Arden Software). They are
used to design boxes of solid board, corrugated cardboard packaging, cushion foam,
intermediate layers of hollow chamber profiles, pouches made of transparent materials, POS
displays etc. in both 2D and 3D.
Our packaging development using the example of corrugated cardboard packaging: All the
information ascertained during the packaging planning flows into the design. The FEFCO
catalogue is used to determine the packaging type and variant. The number and arrangement
of the products within packaging depends both on the product itself and on its later intended
use. For example, in shelf-ready packaging (SRP) products are positioned differently to pure
transport packaging because they support the presentation of the products in the retail outlet.
The arrangement of the products is important to ensure the best possible volume utilization
level within the packaging. A poor volume utilization level leads to more pallets and storage
spaces, increased usage of packaging materials as well as higher transport volumes and thereby
to avoidable costs! In order to ensure the economic placement of the defined packaging unit on
the load carrier, an orientation towards ISO modular dimensions is recommended.
The design drawings developed for packaging and displays can be output in 2D and 3D. 2D
drawings are essential for prototyping, the next step in the process. 3D drawings are used for
visualization, testing and approval purposes.
A cutting plotter is used to create a prototype of the developed packaging from a material
sheets (e.g. corrugated cardboard, solid board, HCP). The packaging developers send the CAD
data via the software interface to the plotter. Cut lines and score lines of the later tool are
simulated and slotting, punch-outs and/or perforation lines are inserted. The plotted packaging
sample is then folded manually by the developer and stuck if necessary. The prototypes built
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can also be used as a one-off pieces and for very short print runs. In most cases it is a sample
for approval by customers.
We recommend that your packaging master data be stored in a packaging database. This will
enable you to ensure that specifications, technical drawings and packing instructions are
available at all times. Find out here about our data management concepts.
International standards and testing standards are part of everyday life in the packaging
industry. Testing options cover packaging materials, corrugated cardboard packaging, load
carriers and load units. You can ensure the resistance of your packaging against static, dynamic
and climatic stresses with our packaging tests.
The fundamental aim of companies with large packaging volumes should be to have an
overview of the entire packaging range from the outset of the packaging development
phase. The development of clear packaging construction standards is just as much a focus as
the creation of the technical pre-requisites for the creation of packaging specifications. An
additional cornerstone here is the definition of processes for packaging tests. This package
improves both packaging performance and costing. And this is where we need to start.
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New-Product Development
Product diversification – the compass to which a firm manages market segments on the basis of
its multiple products in a competitive global marketplace - has been one of the most widely
adopted marketing strategies for opening new markets and gaining market shares (Qiu,
2014:86). As stated previously, the choice of a portfolio of products for this reason, is a central
factor which influences a company’s chances of success. Therefore, companies must continually
search for ways to improve the array of products in their portfolios in order to achieve
organizational goals (Miguel, 2008: 10). Within this context, an effective portfolio management
is about making the strategic choice, inter alia – on which new product the business will invest
(Cooper, R. G.; Edgett, S. J. & Kleinschmidt, 1999: 333). So, picking the right new product
projects is cited as the key to maintain the business’s competitive position (Cooper, R.
G.;Edgett, S. J. & Kleinschmidt, 1999: 350; Nijssen & Frambach, 2000: 121; Tzokas; Hultink
&Hart, 2004: 619). Before investing in a new product, first, the company has to find out
whether the sales, costs and profits of the future product fit with the company’s objectives.
Therefore, within the opportunity identification the business generates, investigates, compares
and selects product ideas. The best ideas than must be transformed in product concepts
(Rochford, 1991:287, Sharma, 2013: 128). Recent research (Tzokas; Hultink &Hart, 2004: 620)
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has shown that the further new-product development (NPD) process is based on a series of
development stages, as illustrated in Figure 2. Nevertheless, new-product development is risky,
and many new products fail (Markovitch; Steckel; Michaut; Philip & Tracy, 2015: 825). To
prevent this, a successful NPD requires either Product mix width, Product mix length &
Product mix deptha customer-centered or team-based effort. For instance, to get its new
products to the market more quickly to save time and increase effectiveness, (Sethi, Smith &
Park, 2001: 77) suggest a team-based NPD approach. Under this approach, company
departments work closely together in cross-functional teams. Also considering customer’s
influence during the initial stages of the product development process, the companies must
strive to involve customers in the product innovation to offer a compelling customer value
proposition (Sethi, Smith & Park, 2001: 78).
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41
With this caveat in mind, the 52% Bulls eye private-label failure rate found in this study is in
marked contrast to the apocryphical 90%–95% FMCG failure rates reported by Cooper (1994)
and prophesised in Ernst & Young LLB/Progressive Grocer (1997). It also contravenes the
findings of the EPI project (Ernst & Young/ACNielsen, 1999a); either the failure rate is
significantly lower than EPI and/or the Bulls-eye portfolio was composed of more highly
innovative product concepts than attributed to private-label by that study. It is therefore
concluded that either (a) 90%–95% failure rates in the FMCG industry are folklore (b) private
label success rates are generally better than those for branded products or (c) retailer
aspiration of private-label success is generally lower than manufacturer aspiration of success
for its branded products, as reflected in their respective measurement criteria.
There is clearly a need to conduct future research to clarify these points. There is also a need to
validate NPD performance levels within the UK FMCG industry more generally, including the
issue of fully developed but un-launched products. However, the immediate future research
will be to complete the two remaining phases of the SANPD project. First, a baseline
performance questionnaire will be created and sent to the SANPD group to establish NPD
performance at the individual project level of granularity. Analysis of the resultant data along
with the findings reported in this paper will be used to confirm the factors that most strongly
influence this performance level and hence redesigned the Bulls-eye NPD process accordingly.
This will then be rolled out to the ASDA private label supply base and studied longitudinally.
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Transport packaging needs to be matched to its logistics system. Packages designed for
controlled shipments of uniform pallet loads may not be suited to mixed shipments
with express carriers.
An example of how package design is affected by other factors is its relationship to logistics.
When the distribution system includes individual shipments by a small parcel carrier, the
sorting, handling, and mixed stacking make severe demands on the strength and protective
ability of the transport package. If the logistics system consists of uniform palletized unit loads,
the structural design of the package can be designed to meet those specific needs, such as
vertical stacking for a longer time frame. A package designed for one mode of shipment may
not be suited to another.
With some types of products, the design process involves detailed regulatory requirements for
the packaging. For example, any package components that may contact foods are
designated food contact materials. Toxicologists and food scientists need to verify that such
packaging materials are allowed by applicable regulations. Packaging engineers need to verify
that the completed package will keep the product safe for its intended shelf life with normal
usage. Packaging processes, labeling, distribution, and sale need to be validated to assure that
they comply with regulations that have the well being of the consumer in mind.
Sometimes the objectives of package development seem contradictory. For example,
regulations for an over-the-counter drug might require the package to be tamper-
evident and child resistant: These intentionally make the package difficult to open. The
43
intended consumer, however, might be handicapped or elderly and unable to readily open the
package. Meeting all goals is a challenge.
Package design may take place within a company or with various degrees of external packaging
engineering: independent contractors, consultants, vendor evaluations, independent
laboratories, contract packagers, total outsourcing, etc. Some sort of formal project
planning and project management methodology is required for all but the simplest package
design and development programs. An effective quality management system and Verification
and Validation protocols are mandatory for some types of packaging and recommended for all.
The packaging industry is actually a collection of industries involving raw material production
(paper, plastics, metals), the conversion of raw materials into forms ready used for package
applications (coating, laminating, printing), product/package design (foods, pharmaceuticals,
cosmetics, chemicals), distribution and logistics (warehousing, distribution, transportation) and
end-of-life-cycle processing (recycling, reusing, water-to-energy).
Legal issues
Consumer behavior and point of sale
Economic factors
Social culture issues
Technology
Production manufacturing
Competitors
Distribution channels
Regional trends
Ecology environmental concerns
The fast moving consumer goods (FMCG) industry is important within the UK economy. FMCGs
are low-priced items that are used with a single or limited number of consumption occasions
(Baron etal., 1991) and are also sometimes referred to as consumer packaged goods or
groceries. FMCG is composed of three major product segments: food, beverage and household
(Key Note, 2006a). This industry employs 3.2 million people in the UK, which represents 16% of
the total workforce.
45
If you’ve ever gone through the packaging development process, you know how many variables
and unknowns there are to coordinate. The project can quickly leave you feeling like you’re
wrestling a three-headed monster. Once you knock out one area, several others rear their ugly
heads causing you to have to keep forging ahead with a swinging sword.
Although difficult, there are a few best practices you can implement to make this process more
bearable.
Here are 10 of our favorite ways to design a package and its various components and still meet
your product’s brand and operational requirements today and in the future.
1. Coordinate Suppliers
From the packaging material supplier to the machinery suppliers and contract fillers, you are
juggling a lot of critical tasks from the outside world. This can make communication a nightmare
if you don’t get everyone on the same page early on.
Loop in your suppliers from the start. This will help you reduce risks and ensure critical
requirements, such as label design specifications, handling, and label application, are followed.
in the long run if they don’t provide additional added value like an inventory program or a
broader expertise like a general contractor would.
6. Minimize Renovations
Are you renovating, or changing your packaging design? If so, you’re going to run into a variety
of problems with designers, label producers, and other suppliers. Minimize the need for any
container renovations by planning a bulk change on the entire brand portfolio at once. This
way, you won’t need to go through multiple iterations and can get everything updated in one
fell swoop.
7. Keep Customer-Centric
It’s easy to get caught up in the details that you forget to focus on the customer when designing
your label and producing your product. This is dangerous. Every attribute of your product
should enhance the customer’s end experience. From making your container easy to grab and
hold to offering answers to customer questions on your labels, it’s important to keep the
customer at the forefront of all your decisions.
While designing your prototypes and deciding on containers or labels, remember your
constraints.
Do you have required information, such as nutrition facts, that you must disclose on your
labels?
Does your manufacturer have certain regulations about container size or shape you must
follow?
Do you have to go through specific tests before your product shape, size, and label can be
approved?
Is your label design printable?
Understand what constraints you’ll face during the process so you can prepare yourself for
success in the future instead of setbacks.
10. Consider All Channels
Every channel where you’ll be offering your product (grocery stores, drug stores, hotel chains,
etc.) has a different strategy. One channel might sell using smaller packaging while another
focuses on selling bulk supplies. One channel might sell only using photographs of the products
while another sells in an environment where the customer can pick up and feel the product
before buying.
Know all of your channels while you plan your process so you can plan your strategy
accordingly.
1. Coordinate Suppliers
From the packaging material supplier to the machinery suppliers and contract fillers, you are
juggling a lot of critical tasks from the outside world. This can make communication a nightmare
if you don’t get everyone on the same page early on.
Loop in your suppliers from the start. This will help you reduce risks and ensure critical
requirements, such as label design specifications, handling, and label application, are followed.
48
6. Minimize Renovations
Are you renovating, or changing your packaging design? If so, you’re going to run into a variety
of problems with designers, label producers, and other suppliers. Minimize the need for any
container renovations by planning a bulk change on the entire brand portfolio at once. This
way, you won’t need to go through multiple iterations and can get everything updated in one
fell swoop.
7. Keep Customer-Centric
It’s easy to get caught up in the details that you forget to focus on the customer when designing
your label and producing your product. This is dangerous. Every attribute of your product
should enhance the customer’s end experience. From making your container easy to grab and
hold to offering answers to customer questions on your labels, it’s important to keep the
customer at the forefront of all your decisions.
8. Keep the Process in Mind
As you start making decisions, don’t lose sight of the overall process. Each step will need to
feed into the other. Work hard to assemble an efficient supply chain among your suppliers and
distributors from the get go so you’re not trying to widen process bottlenecks once everything
gets going.
9. Remember Your Constraints
While designing your prototypes and deciding on containers or labels, remember your
constraints.
Do you have required information, such as nutrition facts, that you must disclose on your
labels?
Does your manufacturer have certain regulations about container size or shape you must
follow?
Do you have to go through specific tests before your product shape, size, and label can be
approved?
Is your label design printable?
Understand what constraints you’ll face during the process so you can prepare yourself for
success in the future instead of setbacks.
10. Consider All Channels
Every channel where you’ll be offering your product (grocery stores, drug stores, hotel chains,
etc.) has a different strategy. One channel might sell using smaller packaging while another
focuses on selling bulk supplies. One channel might sell only using photographs of the products
while another sells in an environment where the customer can pick up and feel the product
before buying.
Know all of your channels while you plan your process so you can plan your strategy
accordingly.
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Changing your packaging can have a variety of effects on your sales, costs, brand and retail
store placement. Some business change their packaging as a proactive strategy to increase
sales, while others do so to cut costs. Before you make a change in your product’s box, can or
container, review the various results that might occur and their impact on your bottom line.
6. Promotion
If your product sits on a shelf with many other competing products or in an aisle with hundreds
of other products, changing the color, size, shape or other features of its packaging can make it
stand out for consumers. Visit retail stores where your product is sold to see how it’s displayed
and how it competes with other products for attention. Adding temporary messages -- such as
a price discount, contents increase, health benefit or product award -- inside an attention-
grabbing graphic can help you send a targeted marketing message.
7. Footprint
Sophisticated retailers calculate the square inches a product takes up on its shelves and the
revenue the product generates per square inch. If you use a large box to get consumers’
attention, your footprint might take up shelf space a retailer could use for two other products
that, when combined, generate a larger profit. Discuss with your retailers their desire for larger
or smaller product packaging based on their desire to create attention or generate higher
profits based on shelf space.
8. Green Effect
If you reduce the amount of materials you use in your packaging or use recycled materials, you
can advertise this to your advantage. Environmentally conscious consumers might be willing to
spend more to buy a product that uses less energy and fewer natural resources to produce.
Review your customer demographics and conduct a survey or focus group to determine if going
green with your packaging will increase your sales.
9. Graphics
The graphics on your packaging can convey messages or evoke feelings in consumers, based on
the images and colors you use. Different shades of blue are considered cool, relaxing colors,
while reds, oranges and yellows are seen as hot or exciting. Children respond to cartoons and
drawings. Photos of people using your product can create empathy or reassurance. Some
businesses test-market packaging by selling the same product in different packages in different
locations to determine which graphics work best.
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10. Price
One of the four cornerstones of the marketing mix is price. Reducing your packaging costs lets
you reduce your selling price, if that’s important to your brand and profit strategy. If you
choose to sell at a higher price to create a higher perceived value, a sturdier or larger package
can send the message to consumers that the contents are more valuable.
Packaging is a key part of the marketing plan for any business that makes or sells products. A
product’s package can be the selling point for many consumers by delivering a sense of quality
while also reflecting the product’s brand image. It is critical in retail sales, where the right
packaging design can attract the consumer's eye and make the product stand out next to a rack
of the competitor's product.
Consumer Behavior
Color and design in packaging can have a noticeable effect on shopping behaviors, writes
Consumer Reports.org. Color is often used in packaging to attract attention, but colors also
must be taken in the context of the product’s marketing goals. For example, children’s cereal
packaging has many bright colors that attract their eyes, health-focused cereals will have more
whites and pastels to project a softer, more adult image. Brands with strong color patterns
should incorporate them into the packaging design.
Branded Packaging
Customers will associate a brand’s image with how its product is packaged. Technology
products often come in sleek and unique packaging to reinforce the image of innovation that
the company’s brand aims to project. Beverages may have unique bottle designs and the
packaging for a food product could feature a design that makes it easier to eat. The brand
image that the product’s packaging promotes should differentiate it from competitors, which
can be difficult when the products are similar.
Color Patterns
Similar types of products will often adopt similar packaging color and design. Black, silver and
gold are often used for luxury products. White is a popular color for packaging cleaning
products, and lavender can create the feeling of spiritualism to attract buyers of new-age
products. Brands that aim to present an edgy look will often pair bright colors with black, which
also implies an appearance of energy and sophistication, according to the Design Force website.
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Secure Packaging
Packaging can affect the consumer’s experience by keeping the product secure. Sturdy, secure
packaging can prevent the product from breaking during shipping, which not only will help
prevent costly returns, but also boost perceptions of quality in your customers' eyes.
Companies with products that target environmentally conscious markets will want to consider
sustainability in packaging. Using creative design along with recycled and biodegradable
materials in product packaging will reinforce consumer’s good feelings about the product.
However, it should be an authentic effort, as poor product packaging could create feelings of
distrust in consumers over being “green-washed.”
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Plastic molding using casting is the simplest method as plastic manufacturing as it requires the
least amount of complex technology. Plastic is simply heated so it turns into a fluid, and then
transferred into a mold. The plastic is left to cool and the mold is removed. This process can be
used for intricate shapes and is performed under low pressure.
Injection molding of plastic creates high-quality three-dimensional objects that can be
commercially reproduced. The injection molding process begins by melting plastic in a hopper.
The melted, liquid plastic is injected into a tightly closed, chilled mold. The plastic quickly takes
the shape of the surrounding mold. Once it has completely set, the mold is opened to release
the plastic object. The mold can generally be used many times before needing to be replaced.
Plastic items such as yogurt cups, butter tubs, plastic toys and bottle caps use the injection
molding process.
Blow molding is a process used for making hollow objects such as piping or milk bottles. In the
blow molding plastic manufacturing process, plastic is heated until molten. The liquid, molten
plastic is injected into a cold mold. The mold has a tube set within it, which has a particular
shape when inflated. While the plastic is molten, air is blown into the tube and the plastic is
formed around the tubing. The plastic is left to cool and removed from the mold.
Compression molding of plastic is the most labor-intensive type of molding process. Since
compression molding is more complicated, it is typically only used for large-scale production
purposes rather than mass production. For example, boat hulls and car tires are made using the
compression molding method. Molten plastic is poured into a mold. Then a second mold is
pressed into it. This squeezes the plastic into the desired shape before the plastic is left to cool
and removed from the mold.
Toys, shipping drums, storage tanks and consumer furniture made of plastic are all made using
rotational molding. In this method, liquid plastic forms each object as it is added to the mold
from the inside. Two mechanical arms hold the mold in place. The arms constantly rotate the
mold at the same level, while molten plastic is placed inside. As the mold turns, the plastic
coats the inside of the mold to create a new hollow, plastic object.
Molding or moulding (see spelling differences) is the process of manufacturing by shaping
liquid or pliable raw material using a rigid frame called a mold or matrix. This itself may have
been made using a pattern or model of the final object.
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A mold or mould is a hollowed-out block that is filled with a liquid or pliable material such
as plastic, glass, metal, or ceramic raw material. The liquid hardens or sets inside the mold,
adopting its shape. A mold is the counterpart to a cast. The very common bi-valve molding
process uses two molds, one for each half of the object. Articulated moulds have multiple
pieces that come together to form the complete mold, and then disassemble to release the
finished casting; they are expensive, but necessary when the casting shape has complex
overhangs.
Blow molding is a specific manufacturing process by which hollow plastic parts are formed and
can be joined together: It is also used for forming glass bottles or other hollow shapes. In
general, there are three main types of blow molding: extrusion blow molding, injection blow
molding, and injection stretch blow molding. The blow molding process begins with melting
down the plastic and forming it into a parison or, in the case of injection and injection stretch
blow molding (ISB), a pre-form. The parison is a tube-like piece of plastic with a hole in one end
through which compressed air can pass.
The parison is then clamped into a mold and air is blown into it. The air pressure then pushes
the plastic out to match the mold. Once the plastic has cooled and hardened the mold opens up
and the part is ejected. The cost of blow molded parts is higher than that of injection-molded
parts but lower than rotational molded parts
History
The process principle comes from the idea of glassblowing. Enoch Ferngren and William Kopitke
produced a blow molding machine and sold it to Hartford Empire Company in 1938. This was
the beginning of the commercial blow molding process. During the 1940s the variety and
number of products was still very limited and therefore blow molding did not take off until
later. Once the variety and production rates went up the number of products created soon
followed.
The technical mechanisms needed to produce hollow bodied work pieces using the blowing
technique were established very early on. Because glass is very breakable, after the
introduction of plastic, plastic was being used to replace glass in some cases. The first mass
production of plastic bottles was done in America in 1939. Germany started using this
technology a little bit later, but is currently one of the leading manufacturers of blow molding
machines.
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In the United States soft drink industry, the number of plastic containers went from zero in
1977 to ten billion pieces in 1999. Today, even a greater number of products are blown and it is
expected to keep increasing.
For amorphous metals, also known as bulk metallic glasses, blow molding has been recently
demonstrated under pressures and temperatures comparable to plastic blow molding.
Extrusion blow molding
The preform mold opens and the core rod is rotated and clamped into the hollow, chilled blow
mold. The end of the core rod opens and allows compressed air into the preform, which inflates
it to the finished article shape.
After a cooling period the blow mold opens and the core rod is rotated to the ejection position.
The finished article is stripped off the core rod and as an option can be leak-tested prior to
packing. The preform and blow mold can have many cavities, typically three to sixteen
depending on the article size and the required output. There are three sets of core rods, which
allow concurrent preform injection, blow molding and ejection.
Advantages: It produces an injection molded neck for accuracy.
Disadvantages: only suits small capacity bottles as it is difficult to control the base centre during
blowing. No increase in barrier strength as the material is not biaxially stretched. Handles can't
be incorporated.
Injection stretch blow molding process
This has two main different methods, namely Single-stage and two-stage process. Single-stage
process is again broken down into 3-station and 4-station machines. In the two-stage injection
stretch blow molding process, the plastic is first molded into a "preform" using the injection
molding process. These preforms are produced with the necks of the bottles, including threads
(the "finish") on one end. These preforms are packaged, and fed later (after cooling) into a
reheat stretch blow molding machine. In the ISB process, the preforms are heated (typically
using infrared heaters) above their glass transition temperature, then blown using high-
pressure air into bottles using metal blow molds. The preform is always stretched with a core
rod as part of the process.
Advantages: Very high volumes are produced. Little restriction on bottle design. Preforms can
be sold as a completed item for a third party to blow. Is suitable for cylindrical, rectangular or
oval bottles. Disadvantages: High capital cost. Floor space required is high, although compact
systems have become available.
In the single-stage process both preform manufacture and bottle blowing are performed in the
same machine. The older 4-station method of injection, reheat, stretch blow and ejection is
more costly than the 3-station machine which eliminates the reheat stage and uses latent heat
in the preform, thus saving costs of energy to reheat and 25% reduction in tooling. The process
explained: Imagine the molecules are small round balls, when together they have large air gaps
and small surface contact, by first stretching the molecules vertically then blowing to stretch
horizontally the biaxial stretching makes the molecules a cross shape. These "crosses" fit
together leaving little space as more surface area is contacted thus making the material less
porous and increasing barrier strength against permeation. This process also increases the
strength to be ideal for filling with carbonated drinks.
Advantages: Highly suitable for low volumes and short runs. As the preform is not released
during the entire process the preform wall thickness can be shaped to allow even wall thickness
when blowing rectangular and non-round shapes.
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Ø The second stage – the growth phase – is entered by the new product when the market is
satisfied and the demand is increased. In this space, sales volume will start climbing quickly. The
new growing market alerts the competition’s attention and thus, it is necessary to differentiate
the products from the competitor’s ones, for example in tweaking the products by adding new
features.
Ø The product falls into the third stage – the maturity space – when a product’s sales growth
starts to slow down and sales volumes level off due to the growing strength of competitors
using promotional means. At this point, the firm must extend the product’s life through move
up and down pricing in relation to the competition pricing policies (Sharma, 2013: 123-129).
Alternatively, as shown in Figure 4, (Fenech & Tellis, 2016: 54) propose a new substitute
product for the dive in the penetration of a current successful product.
Ø During the final phase of the PLC – the decline stage – the market for a product will start to
decline, sales fall off and profits drop. It is considered often as the beginning of the end for a
product. At this point, the firm must decide on a serious strategy either on harvest, drop or
maintain the product. To extend the product’s life, the firm picks the harvest strategy in which
various costs like promotion and advertising or R&D will be reduced and product attributes will
be changed to aim a short-run profit increase. On the other hand, it may make sense to delete
the product from the portfolio within the dropping strategy. Lastly, in it hopes of moving the
product back to the growth phase, the company may decide on maintain his product by
repositioning it (Sharma, 2013: 123-129). P&G has done this with several brands, including Mr.
Clean and Old Spice (Kotler & Armstrong: 299).
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Chapter 6
Sometimes we don’t pay any attention at all to a package. We rip it open without giving it much
thought. Yet on an unconscious level, there are so many cues and messages being
communicated to us, that we aren’t thinking about how the package influenced our
purchase decision. Packaging is a powerful element influencing why we purchase but often it
fades into the background as if it were an afterthought.
#1 PROTECTION
#2 PRESERVATION
Packaging can help extend the shelf life of food and beverage through consistent control of
atmosphere. Shelf stable meat snacks or EMAP (equilibrium modified atmospheric packaging).
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#3 IDENTIFICATION
What’s in the package? What are you buying. Can the package play a role in cleverly
communicating what is for sale or what the store sells? Ear buds for iPods. Paperclips for
Staples.
#4 EASE OF USE
Packaging can help make opening easier or to make it portable or lightweight. Soup tubes are a
recent innovations starting to show some thinking outside of the can.
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#5 POSITIONING
The package can help frame a products value, meaning or purpose. When I gave my wife a new
computer for her birthday, there was a sense of reverence and excitement opening this Mac
Air. She never had that experience opening a Dell or Gateway.
#6 VALUES
It can help connect with an important consumer value like protecting the environment like
weight glass, cork made of sugar cane or a water bottle made from recycled plastics and
alternative materials.
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#7 DIFFERENTIATION
The package can be a core element of how a brand is differentiated versus its category. Doug
van Praet writes extensively about this idea in his book Unconscious Branding – How can you
disrupt the pattern? Travaglini’s Gattinara shaped bottle is so easy to remember that I can ask
my 86 year old Mom to get it for me at the store and she will be able to easily pick it off the
shelf. Same is true for the pink sweetener
Sweet n’ Low.
#8 CONNECTION
It can transport the purchaser/user to an emotional state, place or set of feelings. Corona takes
you to the beach with their bottle-wrapped branding.
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#9 BRAND
It can offer cues (sound, visual, aroma) that signal and establish connection to a brand’s
essence. Sun Chips had a bag that was biodegradable and very loud and noisy. It didn’t succeed
with adults but kids loved it. Dr. Pepper’s flip top can lid makes a distinctive pop that is different
than Coke and Pepsi. And Nike Air is wrapped – in air.
How are you using packaging to innovate, differentiate and shift the conversation in your
category? When you choose one package format, structure
or material over another, you have made an intentional
branding choice.
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Conclusion
The aim of any company of the FMCG industry should be to satisfy the needs and wants of their
customers with their product offering. Therefore, selecting the right products to sell is essential,
as selling the wrong products can result in loss of profit and/or customer value. It is thus
important for the businesses to have a strategy, when selecting the correct products to offer as
businesses that historically show product strategic focus, perform substantially better over
extended periods of time than businesses that do not. In order to achieve the strategy of a
product, the literature highlights the significance of individual product, product line and
product mix decisions, NPD and PLC to realize a successful product strategy. Furthermore, the
impact of product strategy on customer satisfaction has been highlighted. Yet, implementing
these aspects in the strategy comes along with the disadvantage of being time-consuming and
risky.
Apart from this, marketers should be aware of ethics, public policy issues and regulations
during the set of new product strategies. In respect to this, mimicking offering strategies of
pioneers of the market with an imitation strategy, is not sustainable for FMCG firms. They
should rather focus on product diversification when developing product strategies.
sustainable packaging
Package development involves considerations of sustainability, environmental responsibility,
and applicable environmental and recycling regulations. It may involve a life cycle
assessment which considers the material and energy inputs and outputs to the package, the
packaged product (contents), the packaging process, the logistics system, waste management,
etc. It is necessary to know the relevant regulatory requirements for point of manufacture, sale,
and use.
The traditional “three R’s” of reduce, reuse, and recycle are part of a waste hierarchy which
may be considered in product and package development.
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 (contents). Usually, the energy content and material
usage of the product being packaged are much greater than that of the package. A vital
function of the package is to protect the product for its intended use: if the product is damaged
or degraded.
Minimization (also "source reduction") – The mass and volume of packaging (per unit of
contents) can be measured and used as criteria for minimizing the package in the design
process. Usually “reduced” packaging also helps minimize costs. Packaging engineers continue
to work toward reduced packaging.
Reuse – Reusable packaging is encouraged. Returnable packaging has long been useful (and
economically viable) for closed loop logistics systems. Inspection, cleaning, repair and recover
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often needed. Some manufacturers re-use the packaging of the incoming parts for a product,
either as packaging for the outgoing product or as part of the product itself.
Recycling – Recycling is the reprocessing of materials (pre- and post-consumer) 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. Packages can sometimes be designed to
separate components to better facilitate recycling.
Energy recovery – Waste-to-energy and Refuse-derived fuel in approved facilities make use of
the heat available from incinerating the packaging components.
Disposal – Incineration and placement in a sanitary landfill are undertaken for some materials.
Certain US states regulate packages for toxic contents, which have the potential to contaminate
emissions and ash from incineration and leachate from landfill. Packages should not be littered.
Development of sustainable packaging is an area of considerable interest to standards
organizations, governments, consumers, packagers, and retailers.
Sustainability is the fastest-growing driver for packaging development, particularly for
packaging manufacturers that work with the world's leading brands, as their CSR (Corporate
Social Responsibility) targets often exceed those of the EU Directive.
Packaging is a significant issue from a strategic perspective, with impacts ranging from the first
impression consumers will have to environmental policy to cost-cutting. How a firm packages a
product is therefore a key topic across various disciplines, with the potential to increase
revenues, decrease costs, and maintain alignment with environmental policies and legislation.
Packaging Waste Hierarchy: Through utilizing minimal and reusable packaging, costs can be
lowered while consumers receive the value of having less of a negative impact on the
environment.