Evolution of Packaging

AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY
SYNOPSIS
Packaging has been one of the most important tools at the disposal of the product manufacturer to make its product stand out in the shelf. Beyond shelf appeal, packaging has also provided protection and containment for the contents. However, until recently there have been few revolutionary uses of technology to enhance these capabilities or to add to them. But this is changing. Advancements in technologies across various domains including the biosciences, nanotechnology and printable electronics are enabling a new generation of packaging. This packaging provides a new level of functionality for the whole packaging system, taking packaging beyond a simple covering, into a form that can truly be called smart. The opportunities presented by this new kind of packaging are extremely diverse, ranging from new tracking and ID capabilities, through the ability to reduce health risks from food and pharmaceuticals, to the possibility of creating entirely new brands. This report is concerned with analyzing and quantifying these opportunities at every level of the value chain. When is packaging smart? Packaging can be broadly categorized into the following types passive, active, intelligent, and smart. Passive packaging refers to the traditional packaging that involves the use of a covering material, characterized by some inherent insulating, protective or ease-of-handling qualities. The most common example of this type of packaging is a simple plastic bag and it is the type of packaging that everyone is most familiar with. Active packaging entails the concept of the package reacting to various stimuli to keep the internal environment favorable for the products. A typical example would be a packaging with oxygen scavenger (an oxygen scavenger can absorb oxygen inside a package to increase the shelf-life of the item). Both food and electronics use this type of packaging and, again, it is widely used. Well over 90 percent of all packaging is either active or passive in the sense that we use the terms here. Intelligent packaging refers to the concept of making innovations in the design of packaging that renders it more useful for the consumer. By way of example, intelligent
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY packaging would include the packaging of automobile oil, where the very packaging structure makes it convenient for the user to pour oil into his automobile without getting his hands dirty. Thus, intelligent packaging refers to increasing the functionality of the package by simply changing the structure of the package, without the addition of any technology. Smart packaging on the other hand refers to packaging that is made much more functional and useful; it involves the use of technology that adds features such that packaging becomes an irreplaceable part of the whole product. Smart packaging performs additional functions, responds to stimuli generated by the environment or from the product being packaged, and reflects the change in a manner that makes the product more convenient and useful for the consumer or firms in the supply chain. Smart packaging relies on the use of chemical, electrical, electronic, or mechanical technology, or any combination of them. Types of smart packaging: Based on a survey of the literature, NanoMarkets believes that there are two broad (and overlapping) categories of smart packaging. The first type of smart packaging is specifically focused on integrating the packaging into some kind of IT system for inventory or sales management, etc. This kind of smart packaging typically employs RFID or Electronic Article Surveillance (EAS) technology and turns an otherwise conventional packaging into smart packaging, allowing it to be traced through the value chain or through the exit-doors of a retail store. The second type makes use of a variety of technologies to make the packaging inherently smart. This may also involve RFIDs or EAS, but goes further than this to include a plethora of technologies ranging from those that provide self-heating capabilities, through those that indicate the freshness of a product, to those that provide instructions and pricing on a small integrated screen. This kind of smart packaging can further be categorized in terms of technological complexity. This division of smart packaging can be made in terms of whether it utilizes a single technology or whether it uses a combination of two or more of them. Though the current smart packaging relies on the use of both types of solutions, there is increasing focus on innovations that utilize multiple technologies. Exhibit 1-1 illustrates single technology usage along with examples. Exhibit 1-2 illustrates some multiple technology usage, also along with
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY examples. Some of the examples provided have not yet been commercialized, but are expected to be in the next couple of years. Exhibit- 1-1 Single Technology Usage Packaging Technology Example of Packaging Mechanical Electrical Electronic Chemical Liquid shoe polish Battery indicators Talking pizza boxes Company Kiwi Duracell Mangia Media, Inc.
Moisture-free packaging Appleton
Source: NanoMarkets
INTRODUCTION
What is Packaging? In general terms, packaging is the container that is in direct contact with product itself, which holds, protects, preserves and identifies the product as well as facilitating handling and commercialization. More specifically, and following, there are three types of packaging: y Primary packaging is in direct contact with the product, such as perfume bottles. y Secondary packaging contains one or more primary packages and serves to protect and identify them and to communicate the qualities of the product. It is normally discarded when the product is used or consumed. Following the previous example, this would be the cardboard box that contains the perfume bottle. y Finally, tertiary packaging, which contains the two previous ones and its function, is to distribute, unify and protect products throughout the commercial chain. This would be the cardboard box that contains several bottles. In marketing literature, packaging is considered to form part of the product and the brand. So, for example, for packaging is a product property or characteristic, whereas for Olson and Jacoby (1972) packaging is an extrinsic element of the product, that is to say, it is attribute that is related to the product but that does not form part of the physical product itself. Price and brand are also extrinsic elements of the brand and; these are the most important extrinsic values when it comes to deciding what products to buy. Keller (1998) also considers packaging to be an attribute that is not related to the product. For him it is one of the five elements of the brand together with the name, the logo and/or graphic symbol, the personality and the slogans. Packaging is presented as part of the buying and 4
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY consuming process, but often it is not directly related to the ingredients that are essential for the product to function. The view that Zeithaml (1972) sustains lies halfway between these two positions. He considers packaging to be both an extrinsic and intrinsic attribute (an intrinsic attribute is one that cannot be changed without altering the physical composition of the product). For example, if we refer to the non-drip top, packaging is an intrinsic attribute; but if we refer to the information that appears on the label, packaging is an extrinsic attribute. From the managerial point of view, in order for packaging to suitably develop its functions, the structural and graphic design of the packaging and even the optimum size of the pack will be subject to market research undertaken by the company and the positioning that the company wants the product to occupy in the market. So, packaging is, without doubt, specifically related to the strategic decisions of the marketing mix and, therefore, to positioning decisions. From the consumer perspective, packaging also plays a major role when products are purchased: packaging is crucial, given that it is the first thing that the public sees before making the final decision to buy. This function has increased with the arrival and popularization of self-service sales systems, which have caused packaging to move to the foreground in attracting attention and causing a purchase. Prior to this, it had remained behind the counter and only the sales attendant came between the consumer and the product. Self-service has transferred the role of informing the customer from the sales assistant to advertising and to packaging. This is why packaging has been called the "silent salesman", as it informs us of the qualities and benefits that we are going to obtain if we consume a certain product. In the current self-service economy, packaging provides manufacturers with the last opportunity to persuade possible buyers before brand selection.
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Therefore, all the packaging elements, including texts, colors, structure, images and people/personalities have to be combined to provide the consumer with visual sales negotiation when purchasing and using the product. This becomes even more crucial when the data contributed by Clive Nancarrow et al. (1998) is taken into consideration: nine out of ten purchasers, at least occasionally, buy on impulse (Welles, 1986) and unplanned food shopping articles can account for up to 51 per cent of purchases (Phillips and Bradshaw, 1993). Why is packaging an important tool of communication? Packaging could be the most important communication medium for the following reasons: - It reaches almost all buyers in the category; - It is present at the crucial moment when the decision to buy is made; and - Buyers are actively involved with packaging as they examine it to obtain the information they need. In this situation, it is essential to communicate the right brand and product values on packaging and to achieve a suitable aesthetic and visual level.
EVOLUTION OF PACKAGING
A study of the evolution of packaging is inextricably linked to the evolution of consumption habits. In the rural society, which prevailed until the industrial revolution of the 19th century, packaging was as rudimentary as the living conditions of the time. Packaging was often standardized and could be used for a number of different purposes: transporting food, wood or tools. It was more about receptacles than about packaging, a role they did not fulfill with much success. The role of packaging was just to ensure the conservation and transportation of products but there were considerable losses of resources. The individual was not a consumer but a user of resources that were essential for survival.
The industrial revolution gave a considerable impetus to the need for packaging. Mass production and developments in modes of transport created new needs. We moved from a society where trade was limited and each community produced goods it needed to a society where activities became more and more specialized. Products were no longer used by their producer or his or her immediate neighbors, but were now transported, sold and consumed. New manufacturing procedures and transport conditions determined the forms that packaging should take. That is how barrels evolved especially adapted for sea transportation, as well as boxes that were easy to move and store.
The packaging of products had the principal aims of protecting them and facilitating their transport, making them available to more people. Retailers would then simply unpack products before selling them. Individual packaging was not yet used and no real thought had been given to packaging as a means of communication or as a sales tool. Products were packaged and then sold in bulk. Shopkeepers handled the products, weighing them and wrapping them individually, with little concern for hygiene, while their customers watched
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY carefully to make sure they were getting what they asked for. Modern society as we know it was still in an embryonic stage. The second packaging revolution came after the Second World War, parallel to the development of the post-war economy. After having been used to serve the needs principally of the product (protection) and then the producer (transportation), packaging began to focus on the needs of the consumer. Distribution systems were in the process of changing radically, from open markets and small local grocery stores to supermarkets. From then on, packaging was used for each individual product, so that it was ready to be picked up from the shelf and taken away by the consumer. The era of self-service had begun thanks to packaging of pre-packed products. Products were pre-packed. Another consequence of this new method of consumption was that information about the product could be printed on the packaging. After all, the shopkeeper was no longer able to convey the necessary information in a large supermarket. Consumption rose considerably, as did the population. This was the age of the baby boom, which was twinned by a consumption boom, packaging being the precondition for the modern retail trade.
Packaged products soon became a much-desired commodity and packaging had to adapt to the latest trends. It is no coincidence that the mass introduction of plastic packaging dates from this era. Packaging was to emerge as an industry, and was automated to keep up with the accelerating pace of developments. Demands for quality began to rise, thus making ever-greater demands on state-of-the-art technologies.
The increasing importance placed on the individual and the increase of working women made it once again necessary for packaging to find a means of surpassing itself. Consumption became mobile, people were on the move and time was precious. Packaging faced up to this new challenge by means of vacuum-packed
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY food, using materials that could withstand the impact of being taken out of the deep-freezer to be popped into a microwave. As if this growing complexity was not enough, consumption also became more global. Products made on the other side of the world had to be able to arrive in our shops in perfect condition. Packaging had to be made even more resistant, protective, and easily transportable. The (provisional) end of this story is evident in our shops and daily lives. Our supermarkets are able to offer ever more exotic products, our household appliances have sometimes traveled many kilometers before reaching our homes, and our fridges are filled with convenience foods.
Packaging has played a key role in this.
PACKAGING AS A TOOL OF BRANDING

Have you ever heard someone sneeze and say, I need a Kleenex? Then, the individual frantically searches for the nearest box of tissue, but does not realize that he or she has become a victim of product branding. The term Kleenex is a brand name of tissue manufactured by the Kimberly-Clark Corporation, yet most people associate Kleenex with any brand of tissue. Similarly, when a shopkeeper writes Canon Xerox available here, he does not realize that Xerox is not a product but a brand name. The idea that one product, such as Kleenex or Xerox, can dominate the perception of so many consumers, this idea is referred to as branding; the idea that a product or manufacturer has a distinctive name. Fully leveraging the power of company brands is contingent on the establishment of meaningful dialogue that develops into true relationships with the customer. Solidifying customer relationships takes time and true marketing strategy. The development of a strong corporate and brand identity, delivered and messaged with consistency, has to be rooted in a marketing plan that is truly reflective of corporate differentiating values. This research discusses the power of branding by introducing the concept of using packaging as a vital tool in creating a memorable product brand. Packaging presents an integral part of every company's brand communications to the customer. Since virtually every product and service in the marketplace is packaged, it is absolutely crucial that companies "get it right." Nothing communicates the brand and its values like packaging. At a time when products enjoy widespread distribution in multiple channels, among an increasing number of competitors on a global scale, packaging goes a long way to selling the product.
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This circle shows different communication tools used to convert brand identity into brand meaning Package Designers Must Think Brand A case study, which brings this out the best, is the Heinz packaging which had labels on the bottle with funny messages. A mass brand with a brilliant concept. Packaging designs for Heinz Tomato Ketchup by Leo Burnett highlights a growing integration of packaging design and advertising. Burnett, Chicago, led Heinz towards the brave decision to replace the product name with witty copy lines in praise of Ketchup such as "14 Billion French Fries cant be wrong" "Not Green" and "Your Hot Dogs will Thank U". The font was not much bigger than Heinz and the different SKUs range of tomato ketchup packs, brought advertising and packaging design together. With engaging copywriting, this client understood its audience, with humorous and direct brand benefit oriented messages. Bill Schroeder, director of design services for Tipping Sprung states, A quiet revolution has changed package design. Designers are now creating packages that
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY are not merely memorable, but are also part of a brand (Schroeder & Sprung). Todays packaging designers must design packages that exemplify the brands promise and values (Schroeder & Sprung). This includes packaging graphics, structure, pictures, typography, and materials that help communicate the branding efforts. This is clearly visible the way Heinz creatively used its packaging.
Heinz Award winning Packaging
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PACKAGING AND POSITIONING

If we examine exactly what the term "positioning" is understood to mean, there are studies that sustain that its origins lie in an article by Al Ries and Jack Trout published in the magazine Industrial Marketing in 1969. Other articles published in the magazine Advertising Age in 1972 under the title The age of positioning, which served to extend and disseminate the term, followed this. According to these authors, positioning has its origins in product packaging (the concept was called product positioning). This literally meant the shape of the product, the size of the package and its price in comparison to the competition. At that time, these authors announced the start of a new age: "The age of positioning", which recognized the importance of the product and the image of the company, but, above all, it underlined the need to achieve a position in the mind of the consumer. Positioning starts with a product, but it does not refer to the product; rather it refers to what can be done to the mind of the probable clients or persons that are to be influenced, that is to say, how to position the product in their minds. Once the positioning plan has been completed (and the company knows how it wants to present itself to the market with respect to its competition), the company implements a plan of action through the construction of a suitable marketing mix. In this way, it can be said that the positioning of a product induces its marketing mix (pricing policy, place, products and promotion) (Aaker, 1996). Later on, marketing mix elements (product, price, distribution and advertising) reach consumers and contribute to determining the desired product positioning in the minds of consumers ([17] Maggard, 1976). If we focus on "communication" activities, the sequence should be the following: A positioning decision identifies the product characteristics that should be stressed in the marketing mix, particularly in its communication campaign. In other words, positioning guides communication action plans ([1] Aaker, 1996).
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY That is to say, the origin is a positioning strategy, which provides a base for several decisions to be consequently followed. If instead of centering on communication activities, we pay attention to "product" decisions, we can see that it is composed of several elements. One of these elements is packaging, which is becoming an increasingly important factor for several reasons. These are summarized by Underwood et al. (2001) and Underwood (2003). The first reason that these authors propose is that, when faced with reduced advertising budgets, brand building expenses are reduced in the traditional mass media and communication efforts are concentrated on sales promotions and on point of sale communications. Second, for perishable goods there is an increase in the purchasing decisions made directly in the shop (according to the Henley Centre, 73 per cent of purchasing decisions are made at the point of sale). Similarly, managers are increasingly recognizing that packaging can create differentiation and identity, above all in relatively homogenous perishable consumer goods. And finally, the proliferation of the number of brands in the market and the varied offer that purchasers find at the point of sale force there to be an increase in efforts to achieve effective differentiation. The peculiarity of packaging as a marketing element lies in the fact that it often accompanies the use or consumption of products and, therefore, the possibility of transmitting brand values and product characteristics increase. With regard to this aspect the characteristics of a product - its positioning - are permanently transmitted over seven stages: y y y y y y y Point of sale; Transporting the product home; Home storage; Opening; Serving the product for consumption; Re closing or putting away; and Disposal.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Packaging plays a major role in communicating brand personality by means of several structural and graphic elements: y Graphic components: color packaging, typography, the graphical shapes used and the images introduced; and y Structural components: shape, size of the containers and the materials used to manufacture them. In the following discussion there are different positioning strategies with different packages in terms of different assortment of various graphic components (results of Importance of visuals to the consumers: a focus group interview results).
PACKAGING AND BRAND PERSONALITY

Packaging the brands personality & Integrating Marketing Communication The package communicates both emotional & functional benefits to the customer and should be in line with the brand personality. E.g. a pink color of the package reflects the personality of the brand as feminine, soft, young girl. In The Visionary Package, branding and packaging consultants Herbert Meyers and Richard Gerstman argue that package design is the same as the branding of products and product lines (Palgrave, New York, 2005). This picks up from an idea first proposed by the late package designer Walter Landor in the middle of the last century.
Walter's overriding view was that everything you project into the world goes toward creating your brand. Each little piece is of equal importance, equal weight, and has to be appropriate to the audience it is reaching or the message it is trying to promote. As per Richard Gerstman packaging is branding
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY The brand identity in itself is much more than just a logo. The brand identity is a lot of things, which eventually lead to what can be called as brand promise and the reason people buy a brandvalue, acceptance and loyalty. The package reflects that. It identifies the product and the brand, and promotes the confidence in the brand. But there are others who seem to disagree. This school of thought believes Packaging and branding are different things, Packaging is only one expression of the brand. In many product categories, it is a very important element and may even be the primary way people interact with the brand but one should start with a brand definition, one that really connects with people on a deep level. Packaging should then be used to reinforce that definition. Those who use a package design to define the positioning of a brand usually get into trouble as they apply the brand in other media. But if analyzing both the viewpoints shows that they are dovetailing than diverging. Their differences, as well as their reconciliation, can be traced to the fact that for many years packaging designers treated the package as having a personaa face projected by the package that facilitated consumer interaction but which was distinct from the true brand personality. Modern packaging had the effect of allowing consumers to minimize their human interactions in the marketplace, just as the human persona had the effect of reducing social intimacy: y Consumers could get information from package labels that they had previously relied upon shopkeepers for. y Shopping became less time-consuming and less of an emotional drain when shoppers no longer felt compelled to share personal information with the grocer each time they visited his store.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY y Packages were especially attractive to people newly arrived in cities because labeled packages could often be trusted more than could unknown shopkeepers.
Over time, the ability to trust packages gave way to consumer confidence in them, and trust became less of a selling point. Manufacturers instead began targeting the emotions of consumers in an attempt to promote new sales. Breakfast foods, for example, were now marketed to make parents feel good when serving them to their children. But the bedrock of these emotional marketing appeals remained the confidence the consumers retained in the packages. As a need for building long-term branding strategies was recognized, packaging designers like Walter Landor argued that the brand personality expressed by the package should be the same personality that reached the consumer through other media. In order to achieve this goal, the ephemeral packaging persona had to give way to an expression of brand personality. A consistent projection of the brand's personality in the package, and wherever else the brand was encountered, was far more reassuring to the consumer than a persona that was constantly changing. There are now more ways than ever for brands to make contact with consumers. Modern marketing strategies, for example, may rely heavily on public relations, direct mail, email, the and wherever else the brand was encountered, was far more reassuring to the consumer than a persona that was constantly changing. The branded package no longer holds the upper hand but is now a part & medium of the integrated mass communication. The ever changing persona of the brand is a sum total of all the communications & most importantly packaging as this is most tangible proof of the brands personality. Not all corporate packaging strategies reflect the level of integration.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY In terms of communication, however, modern packages are inherently bundles of contradictions. They engage us consciously and unconsciously. They are physical structures but at the same time they are very much about illusion. They appeal to our emotions as well as to our reason. But such contradictions must be reconciled at the point of purchase. The well-designed package does just this. When we need to make shopping decisions quickly, we yield to our emotions. If a familiar then reinforces our initial favorable emotional response to a package, confidence-inspiring brand logo, we will have all the more reason to make the purchase. For this sort of synergy to occur, however, the package design and brand personality must converge. Anything less and the package are persona non grata.
EXAMPLES
Amazon.com One can recognize the Amazon brand on the Internet because they have their own color scheme. The layout that they use is very recognizable. One could say that's the Amazon package. Of course, the other package is the package you receive when you order a book. That other package happens to be a nondescript cardboard box with only the logo in black to distinguish it from other brown boxes.
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FedEx does a better job of packaging integration. When one goes to his or her office, the first thing one sees on their desk is the FedEx package. It's so recognizable. It is in coordination with all the other marketing communication. The packet of Marlboro carries the cowboy image which reinforces the image of it being macho & masculine The use of black & neon colors by AXE deodorant for its packaging makes it mysterious, playful & wild.
The personality of the perfume Echo by Davidoff is classic & sensuous, the look of the ad makes one feel surrendered to the Greek god in the picture & the packaging of the bottle reinforces that image it is of dusk color by the sea in color with different shades & a picture of a man with vulnerable sensual expression in his eyes looking through the bottle. The bottle inside is made completely of glass through which one can see sea blue color.
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The bottle of cool water deep fixes in space the movement of wave, suggesting both the elemental power of the ocean and the still intensity of its depth. The cool water is deeply masculine, fresh, elegant & a new transparent facet for modern masculinity. Powerful, elegant strong yet serene is the brand personality of cool water
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CASE STUDY
Asian paints Existing brand personality y y y Current brand personality was warm but fuzzy Didnt have the kind of sharpness that one expects in a leader It also lacks certain desirable values in terms of contemporariness and global outlook y In this environment, risk of Asian paints losing the high ground
Desired brand personality y y y y y y y y Male, 28 years; Contemporary education and skills Pioneering and path breaking Experiment and adventurous Individualistic, succesful, has quality Global outlook but is an Indian Sociable and has integrity Kind of person who takes complete responsibility for what he does Always on time; he is a friend, pholosopher and guide to people who are known to him Change in Visual identity y A revamp undertaken in the entire packaging and the overall visual identity of the brand y y A new packaging to give it image of being contemporary and international Described as innovative, friendly, trendy and fresh, the logo features red and yellow colors denoting warmth, and the letter `p' in the form of a brush stroke.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY y The "drip" effect is also used in the packaging, to give it a "family feel." Gattu, the lovable mascot, continues to appear on the packaging.
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PACKAGING AS A DIFFERENTIATING FACTOR

Distinctive packaging designs create strong associations with the particular brand. The leading industry pays much attention to the packaging as the success of a product and therefore of business depends a lot on it. The packaging is the final touch in the long process of product creation. It is a means of communication with the customer both on intellectual and emotional levels. It can attract attention, arouse interest and desire to buy something and it often bonds customer to a product for long years. In a country traditionally driven by advertising, such as the United States, the way is wide open for packaging to become more sophisticated and prominent, as it has done in the UK. Although U.S. design managers and brand owners have a vast territorial area within which to promote their brand message, regardless of advertising, the ultimate purchasing decision is often made at point of purchase. This point is where design can really hold its own to create the point of differentiation. Indeed, this has been emphasized over the last 5-10 years with a huge shift in where brand owners are choosing to spend their money. It's not that the above-the-line mass marketing and advertising is "dead," clearly not, but that the below-the-line stalwarts, such as design, are increasingly making their presence felt in the marketing mix.
Packaging is one of the most important variables of [consumer] marketing, says Gerardo Saporosi, president of Franchising Group and vice-president of the Argentine Association of Marketing. Its usually more important than advertising campaigns. Some products have no advertising budget but they sell very well because of the way they look.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY According to John Hudson, coordinator of the graduate business school at the University of Palermo, packaging is an excellent way to achieve differentiation (as in the perfume industry, for example.) Example In the case of Red Bull, there is no doubt that the product is clearly differentiated from the typical soda because of its aluminum cans that have unique, smaller dimensions. He also developed an exterior design with two colors blue and silver that is very easy to distinguish from other cans. Maricos Parachute is a good example of that with its new convenient packaging for winters, it used packaging as a Point of Differentiation.
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LOCALIZED PACKAGES
PACKAGING
OR
GLOBALIZED
Global marketing for packaged goods involves greater product and brand differentiation. When a brand owner seeks to please at a local level it risks losing its global consistency. From high-touch to high tech, international brands are struggling to achieve economies of scale with packages and products that would successfully appeal to an increasingly global clientele. In 2003, McDonald's announced that all of its restaurants30,000 in over 100 countrieswould soon be adopting the same brand packaging for menu items. According to a company press release, the new packaging would feature photographs of real people doing things they enjoy, such as listening to music, playing soccer, and reading to their children. McDonald's global chief marketing officer was quoted as saying, "It is the first time in our history that a single set of brand packaging, with a single brand message, will be used concurrently around the world." Two years later, the company appeared to backpedal when it announced plans to localize nutritional value charts on its packages. To the extent that international brands appeal to global tastes, worldwide packaging strategies might be expected to show signs of convergence, especially as consumer tastes around the world become more homogeneous. But there is little evidence that this is happening. Computer manufacturer HP strives to convey brand personality on packages that may need to accommodate text in as many as eight local languages. Fast-moving consumer goods companies, for their part, have hardly been more successful in finding global solutions to their packaging needs. Unilever standardizes some branded products while localizing others. Procter & Gamble adjusts branding strategies across borders. P&G markets its brands in Asia under the company brand name, but in Europe and the US, the product brands are not blatantly branded as P&G brands.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Herbert Meyers, co-author of The Visionary Package, says he was astonished on a recent trip to China to see the range of toothpaste offerings there. "The Colgate packages carried such a variety of promotional copy, all right next to each other on the same shelves, that they, in my view, made no sense at all," he says. "Different packages promoted MaxFresh Breath Strips,' Sensitive Breath Strips, ' Advanced Whitening,' Total plus Whitening,' White Teeth in 14 Days,' and Maximum Cavity Protection.'" Adds Meyers, "If I was looking for Colgate toothpaste there, I wouldn't know which to choose." The current high level of product differentiation in China may be reminiscent to some in the United States of the 1980s, when American corporations were busy extending their product lines to address every perceptible customer preference. In a 20-month period during 1989 and 1990, for example, Procter & Gamble introduced 90 new products. By 1994, Colgate and Crest each offered more than 35 types and packages but this situation didn't last. As the manufacturers realized the power of packaging. Each package had to be different in order to sell otherwise it leads to self-cannibalization. The brand strategy is absolutely identical everywhere in the world of Nivea & LOreal. It is a rule. And the products are created to be global, (which means) one name, one concept, one formula, one packaging, and hence one communication worldwide.
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PACKAGING AND PURCHASE DECISIONS

The package's overall features can underline the uniqueness and originality of the product. In addition, quality judgments are largely influenced by product characteristics reflected by packaging. If it communicates high quality, consumers assume that the product is of high quality. If the package symbolizes low quality, consumers transfer this low quality perception to the product itself. The package communicates favorable or unfavorable implied meaning about the product. Underwood et al. (2001) suggest that consumers are more likely to spontaneously imagine aspects of how a product looks tastes, feels, smells, or sounds while they are viewing a product picture on the package. Consumer decision-making can be denned as a mental orientation characterizing a consumer's approach to making choice (Lysonski et al, 1996). This approach deals with cognitive and affective orientations in the process of decision-making. Four main packaging elements potentially affect consumer purchase decisions, which can be separated into two categories: visual and informational elements. The visual elements consist of graphics and size/shape of packaging, and relate more to the affective side of decision-making. Informational elements relate to information provided and technologies used in the package, and are more likely to address the cognitive side of decisions. Most FMCG are low involvement products. In low involvement, "consumers do not search extensively for information about the brands, evaluate their characteristics, and make a weighty decision on which brand to buy" (Kotler et al, 1996, p. 225). One reason for this is low risk (Chaudhuri, 2000; Mitchell, 1999), i.e. these products are simply not very important. The lack of substantial evaluation often results in the inability to distinguish much difference among leading brands (McWilliam, 1997). A common result is relatively weak "habit" brand loyalty. Thus, when consumers find a brand, which meets their standards, they tend to stay "satisfied" with it, especially, if they are constantly reminded of
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY the brand. But they are not very committed, and substitute easily when it is not available. Such habit loyalty is fairly common in the West, e.g. IGD (2002a) notes that about one-third of women shoppers, and slightly fewer men, buy food products through habit. It is also quite common in Asia. Survey data indicate that packaging plays a strong role in reminding consumers about the, i.e. it helps to reinforce habit loyalty. Some observers, though, note that not all consumers view grocery shopping as a low involvement activity. Beharrell and Denison (1995) show a range of involvement among European consumers. Those with higher involvement tend to be more strongly branded loyal, including willingness to postpone purchase or go to another store if the brand is not available. In Asia, about 20-40 percent of consumers for most FMCG shows this level of loyalty, and will postpone or search rather than simply switch to a substitute (Speece, 1998, 2003). Clearly, consumer use of packaging elements is quite an important issue for low involvement products - generally, informational elements require more mental effort to process than do visual elements, which evoke more of an emotional response. Some consumers are not willing to put forth this small effort, and products, which is of truly low involvement for them. Others may consider the product more carefully, so that involvement level might shift the package elements, which are most critical. The results of a focus group study supported the propositions that in general, y Visual elements of the package influence choice of the product to a great extent, and graphics and color are frequently the major influence. y Attractive packaging generates consumer attention by breaking through the competitive clutter. y Picture vividness has the most positive impact for products with lower levels of involvement. 28
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY y However, informational elements are becoming increasingly important and influence choice. y The participants tended to judge food product performance by reading the label if they were considering products more carefully. Appropriately delivered information on packaging generates strong impact on the consumers' purchase decision. This information reduces the uncertainty and creates product credibility. Clearly, packaging is an important marketing tool for products, but the four elements of packaging stimulate purchase decisions differently. Consumer evaluation of packaging elements changes as the perceived risk of the consumption situation increases, and marketers need to know the importance of the various attributes to best communicate through the package. Visual elements, graphics and size/shape, positively influence choice more in the low involvement situation, while informational elements tend to play a key role in higher involvement decision-making. Time pressure similarly changes how consumers evaluate products at the point of sale, partly by reducing ability to give attention to informational elements. Again, marketers must communicate effectively through the packaging.
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COMMUNICATION HIERARCHIES IN PACKAGING

Clear, concise brand communications are an important part of this strategy, and should be carefully designed into every product and every product's packaging. Communication hierarchies are first rooted in brand identity. To be effective, they should then be carried into packaging to provide visual and emotional triggers in the customer. Packaging can be used as a means of building and cementing consumer relationships. Emotionally connecting consumers to a brand is essential. Connecting consumers to a product through Enjoyment is powerful, bringing favorable associations to mind at the point of sale, motivating purchase. Then, when the brand promise is fulfilled in the consumer's mind, brand loyalty begins to take root. Extensive research must be done before packaging is developed, to uncover the brand's chief assets. While some assets are overt, others might be dormant, or remain uncovered. Consumer-based research into the brand experiences that impact their perception and decision-making should then be assessed. The ensuing package design solution can then honestly and directly communicate brand values, and hopefully, create an emotional connection with the consumer. One of the most challenging aspects of establishing a communication hierarchy for products or services that are complex is the organization of the information hierarchy in the packaging. So much packaging the consumer is faced with at the retail shelf presents an overwhelming amount of technical information, that the customer simply hasn't the time or inclination to read it, thus losing the sale and the opportunity to build a relationship with that customer. It also makes packaging look cluttered and unappealing, no matter how well designed it is. Only pertinent, significant information should be utilized in packaging, and it should be presented in a specific way. Simple, clean, customer friendly messages go a long way with today's busy consumer. Clear differentiating product features and benefits also make the brand and its products the clear choice among myriad competitors.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY . Communication Hierarchy: Steps y Present the brand identity and its attributes prominently to the customer, and present them in a consistent manner on every package. y Identify the brand and product by leveraging its unique logo and color system. y Create new packaging structures, if appropriate, to make the product more visible and appealing to the customer. Make certain the new packaging structures are viable for all applicable retailer plan-o-grams. y Bring out the significant emotional assets of the brand, assist in cuing purchase motivation, and begin the process of customer relationship building. y Make the shopping and sales experience enjoyable, informative and easy for the busy customer. y Sell the product on its own meritswithout the assistance of retail sales personnelby delivering key product information points in a clear, concise manner. y Differentiate the product and brand from all of its competitors in multiple retail channels. y y y Are consistent from product to product under the brand umbrella. Are easily identifiable in a global marketplace. Are cost-effective vs. cheap to produce.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY PACKAGING DESIGN Elements & equities The elements of a package are the specific components or pieces that constitute the total package - such as colors, packaging structures, shapes, typefaces, icons, framing devices and appetite-appeal vignettes. Shes got great legs." "His eyes are steely." "She looks just like my aunt." We hear comments like this all the time and do not generally think of them as examples of element isolation. But that is exactly what they are - a focus on specific pieces of an overall identity that contribute uniqueness,
distinctiveness, familiarity or appeal. When the topic is packages rather than people, the elements change but their importance remains the same. In order for the package to communicate effectively, y It must have key elements working together to convey the brand's positioning. y They must be distinctive & identifiable in seconds among a crowded gathering of other packages trying to do the same thing. y Singularly or in combination, these elements must generate the equivalent of the `great eyes' comment: They must elicit recognition, interest and appeal. If they succeed, they contribute to the package's overall equity.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Package equity is a distinctive element that is recognized and correctly linked to the brand because it effectively communicates the brand's positioning. A good example of package equity is the Coca-Cola bottle we are all familiar with. Most consumers correctly identify and link that image to the cola brand, even when the bottle is the only thing they are shown. Element may or may not represent equities of a package. Interestingly, elements are not linked to just the package. They can appear in other forms or media used by the brand. For example, Microsoft's Windows icon is an element that appears on its packaging, and also in the brand's advertising and promotional material, as well as on some competitor's products as an indication of compatibility.
Visual elements Graphics and color Graphics includes layout, color combinations, typography, and product photography, all of which create an image. For low involvement, there is a strong impact from marketing communications, including image building, on consumer decision-making. Evaluation of attributes is of less importance in low involvement decisions, so graphics and color become critical. For many consumers in low involvement, the package is the product, particularly because impressions formed during initial contact can have lasting impact. As the product attribute which most directly communicates to the target consumer, the design characteristics of the package need to stand out in a display of many other offerings.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Many consumers today shop under higher levels of perceived time pressure, and tend to purchase fewer products than intended. Products often appear to be chosen without prior planning, representing a form of impulse buying. A package that attracts consumers at the point of sale will help them make decisions quickly in-store. As the customer's eye tracks across a display of packages, different new packages can be noticed against the competitors. However, eye movement does not necessarily mean attention. When scanning packages in the supermarket, the differential perception and the positioning of the graphics elements on a package may make the difference between identifying and missing an item. In psychology research, brain laterality results in an asymmetry in the perception of elements in package designs .The recall of package elements is likely to be influenced by their lateral position on the package, as well as by factors such as font style, size, and color. Recall is better for verbal stimuli when the copy is on the right hand side of the package, and better for non-verbal stimuli when it is on the left hand side. This may imply that, in order to maximize consumer recall, pictorial elements, such as product photography, should be positioned on the left hand side of the package. Consumers also teach color associations, which lead them to prefer certain colors for various product categories. Using color as a cue on packaging can be a potentially strong association, especially when it is unique to a particular brand. However, people in different cultures are exposed to different color associations and develop color preferences based on their own culture's associations. Simply taking the colors of a particular logo, package, or product design from one market to another should only be done under a thorough understanding of how colors and color combinations are perceived in each location).
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY The focus group interview was conducted to determine the most important graphic variables in the use of: y y y y Color; Typography; Shapes; and Images.
In order to have a complete vision of the alternatives that can be used with these four components, interviewee heterogeneity was sought. The profile of the eight designers is: - Gender: Women - 62 per cent; Men - 38 per cent. - Age: 20-30 - 37 per cent; 30-40 - 38 per cent; 40-50 - 25 per cent. - Education: Primary education - 13 per cent; higher studies - 87 per cent. As a result of this several alternatives were selected for each of the four key variables. A dossier showing a range of simulated packaging was prepared for the 46 consumers that agreed to participate in the experiment. The profile of the 46 consumers is: - Gender: Women - 57 per cent; Men - 43 per cent. - Age: 20-30 - 85 per cent; 30-40 - 15 per cent. - Education: Primary education - 7 per cent; higher studies - 93 per cent. This packaging represented each one of the four selected graphic variables (color, typography, shape and image) in the different alternatives obtained in the previous qualitative phase. So, for example, for the "color" graphic element six prototypes were prepared. In the first, related to the 36
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY "brightness" variable, two packaging alternatives were presented: one in a dark color (less brightness) and the other in a light color (more brightness). In the second, related to the "saturation" variable, two packaging alternatives were presented: one with a saturated or bright color and the other with a non-saturated or dull color. In the third prototype, relating to the "temperature" variable packaging in warm colors (red, orange and yellow) and packaging with cold colors (green and blue) were shown. Finally, for the variable "shade", packaging in three types of colors was presented: y y y Black/white; Blue/green; and Yellow/orange/red.
These simulations were repeated for the other three graphic variables (typography, shape and image) . The complete prototype dossier was shown to the interviewees and they were asked to relate the positioning strategies proposed to the graphic variables that best represented them. This procedure was done with a sample of 46 consumers. The experiment was done according to the following three-stage sequence: One of the positioning strategies presented was explained. For example: "Product 'A' is positioned as reasonably and affordably priced. People say the price is OK". The following is used to present the case to be solved: "From this selection, choose the packaging that seems most suitable for product 'A', taking its characteristics into account". The simulated packaging alternatives were shown and the subject chose the one that seemed most suitable. The sequence was repeated for the reaming six positioning typologies.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Finally, the number of times that each graphic variable was associated to each positioning strategy was calculated. The defining graphic variables for each strategy were obtained by frequency counting. Statistical techniques The seven product positioning strategies have been represented from the consumers' standpoint. For this purpose, multidimensional scaling has been applied. The idea is that the packaging attributes that are situated close to a particular positioning strategy on a perceptual map correctly represent this positioning strategy. Four maps have been obtained with multidimensional scaling based on the data obtained related to: y y y y Alternative packaging colors; Alternative packaging typography; Alternative packaging graphical forms; and Alternative packaging images
Results Each positioning strategy is associated with particular packaging dimensions as follows: Top category positioning, prestige status, directed to the upper classes: Color: Cold, Dark, Black. Typography: Any. Graphic form: None. Image: Picture, Product. Accessible product, reasonable price positioning: Color: Light, White.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Typography: Serif, Sans serif. Graphic form: Any. Image: Illustration, Person. Positioning based on durability, guarantee and safety: Color: Red. Typography: None. Graphic form: Straight line, Vertical, Straight outline, Symmetrical, One element. Image: Picture, Product. Positioning based on refined, sober and elegant aesthetics: Color: Cold, Dark, Black. Typography: Bold, Expanded, Upper case, Large, and Roman. Graphic form: None. Image: None. Positioning based on country of origin, patriotism: Color: Red. Typography: None. Graphic form: Straight line, Vertical, Straight outline, Symmetrical, One element. Image: None. Positioning based on excellence, high price, variety: Color: Cold, Dark, Black. Typography: Any. Graphic form: Straight line, Vertical, Straight outline, Symmetrical, One element. Image: None.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Non-selective positioning, for the middle classes, based on noble principles: Color: Any. Typography: None. Graphic form: Horizontal, Oblique, Circle, Curve, Wavy outline, Asymmetrical, Several elements. Image: Any.
HOW MEANINGFUL ARE COLORS How meaningful is color in extending a company's brand identity in the packaging of its products and services? Just take a look around. Imagine, if you would, that the words "Coca Cola" did not appear anywhere on the product's can. No logotype. Just the signature red package with white swirl. Would you still recognize the product? We're betting that just about everybody-everywhere on earth-would. Color is an essential part of our lives. Color has context for specific demographics, based on genders, age groups and ethnic groups. Corporations hire design consultancies that employ their own expertise, and collaborate with color organizations to assist them in the successful communication of their brand messages. Jill Morton, the principal consultant at Colorcom, a color consultancy with offices in New York and Honolulu, writes: "Marketing research indicates that over 80% of visual information is related to color. In other words, color conveys information. It identifies a product or a company, as well as the quality of the merchandise and much more. The right color is indeed worth a thousand words."
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY And, when a brand needs revitalization, the issue of packaging and color are again reviewed, and necessary changes are made to contemporize, or better extend the brand message. Every aspect of brand management strategy is geared toward building a relationship with the consumer; one in which there is positive and on-going interaction with that brand and its assets. Color, when applied to packaged products, must relate to the brand, category and demographic being targeted. In fact, the brand's packaging must be a synergistic part of he overall brand expression continuum. Color in package design, when effectively conceived and executed, should leverage the assets of brands, and extend brand communications. Color communicates. The goal for competent brand identity and package design consultants is to build brand equity. This cannot be achieved without building brand recognition and trust with a targeted demographic. Color is a tool that must be used to assist global corporations in packaging their products or services to achieve these ends.
Examples a) A firm that specializes in brand identity and package design in the toy or entertainment industry, for example, should have a thorough understanding of consumer and category trends as well as consumer response at retail. When a corporate client requires package design for a toy product, the following steps should be taken The product's brand identity has to be given first consideration. An understanding of toy product categories and the current category players is essential. Audits must be conducted to confirm that information, and analysis of the competition is a crucial component of the process.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Honing in on how kids in a particular age group interact with packaging and color, especially with gender-specific toys, is revealing. The goal here is two-fold: y To extend the client's product's brand identity meaningfully through the packaging of its products, and to position those products as category leaders. If they already are category leaders, periodic brand revitalization work makes certain they remain well ahead of their competitors. y To create trusted, enduring relationships between the corporate client's products and their target audience. b) Packaging project in the high volume beverage category for the Campbell Soup Company on its V8 Splash Smoothies beverage product. The targeted demographic consisted of women, aged 35+ years of age, who are interested in purchasing beverages for their refreshment, as well as their nutritional value. The target also included a multi-cultural audience, including Hispanics and African Americans. Research determined that strong, vibrant color would have great appeal for this demographic, and that a bottle cap in periwinkle would signify health benefits to mature women. End result? A powerful brand presence and strong sales in a saturated beverage marketplace. c) Dove the bathing bar by Unilever, when it was introduced during the great depression, the color white, which soothed peoples minds in the War and economic depression.
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PACKAGING SIZE AND SHAPE

Package size, shape, and elongation also affect consumer judgment and decisions, but not always in easily uncovered ways. Consumers appear to use these things as simplifying visual heuristics to make volume judgments. Generally they perceive more elongated packages to be larger, even when they frequently purchase these packages and can experience true volume. This implies that disconfirmation of package size after consumption may not lead consumers to revise their volume judgments in the long term, especially if the discrepancy is not very large. Different sizes also appeal to consumers with somewhat different involvement. For example, low price for some low involvement products, such as generics, is made possible through cost savings created by reduced packaging and promotional expenses. Generics are usually packaged in larger sizes, which communicate to consumers who are specifically looking for good deals. Such consumers find the low price of the generics, in the right size of packaging, offers excellent value for money. In addition, this could imply that when product quality is hard to determine, as with generics, the packaging size effect is stronger. Informational elements Product information Image issues and visual response less influence the behavior of consumers toward products characterized by high involvement; in such cases consumers need more information. Written information on the package can assist consumers in making their decisions carefully as they consider product characteristics. However, packaging information can create confusion by conveying either too much information or misleading and inaccurate information. Manufacturers often use very small fonts and very
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY dense writing styles to pack extensive information onto the label, which lead to poor readability and sometimes confusion. Mitchell and Papavassiliou (1999) suggest that one way consumers reduce confusion from information overload is to narrow down their choice sets. Reducing choice alternatives and evaluative attributes decreases the probability that they will be confused by excessive choice and information overload. This strategy could apply to more experienced consumers, because heavy users potentially look at fewer brand alternatives. In other words, experience makes consumers selectively perceptive and restricts the scope of their search. This is effectively a form of brand loyalty, brought about because consumers do not necessarily want to continue reading labels every time they buy a particular product. Many consumers appreciate food labeling, but are not satisfied with standard formats. For example, UK survey data indicates that nearly twothirds of consumers now read food labels, but one-third want to see clearer labeling. Other research in the UK also shows that many consumers find the format prescribed in law for both voluntary and compulsory labeling difficult to use. In another recent survey, 90 percent of people agreed that nutritional information panels should be laid out in the same way for all food products so that they are easy to understand quickly. While not all consumers use it, the trend seems to be toward increasing attention to such label information. Partly concerns about food safety and nutritional health drive this trend, but it is also driven by the gradually increasing consumer sophistication. During Thailand's recent recession, for example, consumers were loathed to sacrifice living standards, but they did have to watch budgets more carefully. They began evaluating products more carefully to make sure they were worth the prices charged. Whatever be the reasons, more highly involved consumers evaluate message
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY information, relying on message argument quality to form their attitudes and purchase intentions. On the other hand, packaged food products remain low in involvement for many consumers. In general, consumer acquisition of low involvement products is often done without carefully examining brand and product information. The lack of commitment and attention implies that information on the package carries relatively less value with consumers who view packaged food as low involvement products. 5.4.2. Packaging technology Technology developed for packaging comes directly from the current trends in products and consumer behaviors. Powerful retailers also seek greater responsiveness and flexibility from manufacturers, including packaging, to satisfy consumers who are more demanding and sophisticated. Customers are often prepared to pay slightly more for enhanced product value, indicating desire for more quality. However, product and packaging development also constrained in creating products that fully meet the consumer and channel criteria. Such constraints might be categorized as ingredient, processing, and cost restraints. Innovation must respond and develop new products that are more efficiently produced, packaged for a longer shelf life, environmentally friendly, nutritionally responsive to each of the emerging segments of society, and meet maximum food safety requirements. Technology embodied in the package plays a big role in this, making it somewhat of a special form of informational element. In addition to its technical role, packaging technology also conveys information which is often linked to the consumer's lifestyle. Therefore, in order to survive in high growth, competitive markets, technology becomes very important for developing packaging, materials, and processes.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY It is clear from the review of literature that the importance of packaging development is high, as packaging plays a major role in consumer decisions of fast moving packaged food products. Earlier research, however, is not very extensive, and has not looked very carefully at differences in how packaging elements are used for decisions based on levels of involvement and time pressure.
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PACKAGE DESIGN TESTING

Why? It is well documented that packaging has a direct impact on sales, most notably in influencing many purchase decisions that take place at the point-of-sale. Research studies also repeatedly find that innovative packaging systems are very powerful in their ability to differentiate brands, justify price premiums, and increase brand loyalty. A new shape, material, or dispensing system can give a product in any category new life. Just as often, however, potentially valuable packaging innovations are not implemented. These missed opportunities are often rooted in the fact that marketers and engineers "speak different languages" and approach packaging from nearly opposite perspectives. Packaging engineers tend to consider packaging primarily in terms of its functionality and to focus on rational benefits (easier to open, etc.). Brand managers tend to think primarily in terms of return on investment (ROI) and focus on incremental costs and sales revenue. Since many packaging innovations require significant up-front
investments or incremental costs-per-unit, they often into a "roadblock" of sorts. Engineers can demonstrate that the new system provides a functional benefit, but they can't provide marketers with the "evidence" of increased sales revenue that they need to justify an investment. Consumer research can "bridge this gap" and help companies make informed packaging development and investment decisions, and help gauge the business value of new packaging innovations Packaging systems should be developed to reinforce core brand attributes, as per the long-term brand strategy of the company, and the heritage the brand enjoys with its customer. In fact, the core customer's perception of
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY the brand, as time goes by, should be researched and monitored. This kind of research is not meaningfully engaged by most companies, and yet, customer perception has the single most powerful impact on the brand. With core brand perception strong and intact, packaging can be contemporized to update the overall brand image to keep it potent with the existing customer, while attracting a new generation of consumers. It can also be extended to all new products under the brand umbrella. When packaging systems are properly researched and developed, three key achievements occur:
y y
Brand identity and brand image are strengthened. Clear, concise and consistent communication hierarchiesthat effectively communicate with the customer--are established. These can be applied to all future line extensions as well as all product revitalization plans.
Significant emotional assets that are brought to the fore assist in developing customer relationships that will cue further purchases of the brand, cementing brand loyalty.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY How?
If you ask a person directly if he or she would pay more for a new and better package, the answer will usually be "No." However, if you introduce the better packaging at a slightly higher price, people will often be willing to pay more
When new packaging concepts are first developed, they benefit greatly from qualitative research, often in-depth discussions with a small number of target customers, which provides the insight needed to identify and address concerns.
Conversely, quantitative research--surveys with hundreds of people--is inherently less diagnostic, and it typically leads companies to declare winners and losers, and to simply discard the latter. In a recent example, a new packaging structure for liquid soap was strong on a functional level, but had a shape that suggested a lower-end product. If survey research would have been conducted, this idea would have simply been rejected. However, the qualitative research setting allowed us to pinpoint the source of the problem and guide refinements that "saved" the idea.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY In fact, the way companies test new ideas can also stifle innovation by killing ideas before they are fully developed and refined. Here, the problem is often rooted in what we call "the rush to judgment." Given the costs of creating functional prototypes, companies are eager to gather numerical "evidence" before investing further in a concept. This leads them to present new concepts to customers through drawings and written explanations, which rarely produce the same depth of feeling from customers as a functional package. When performed well, focus groups can be valuable in providing initial direction and narrowing down a wide range of options, but focus groups is not an appropriate tool for documenting the added-value or the business impact of a packaging innovation. For this reason, survey research is needed to justify investments in new packaging systems and guide final "go/no-go" decisions.
The full impact of new packaging
Of course, the value of quantitative research is tied directly to its comprehensiveness. Specifically, it is important that survey research document all the potential benefits of a new/proprietary structure. A new packaging system can influence shoppers on three levels:
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An innovative and own able shape can generate value, even if it does not provide a functional benefit. The
L'Oreal shampoo packaging provided immediate
differentiation on shelf--and allowed the brand to embody fun in a category driven by child appeal.
Increased Shelf Impact/ Visibility: The difficulty of breaking through shelf clutter should not be underestimated: Our PRS EyeTracking studies have shown that even when shoppers are directly considering a category, over one-third of the brands displayed are ignored completely. However, a unique, engaging structure can help ensure that a product consistently draws shoppers' consideration and drives impulse purchases.
Enhanced Product Perceptions & Brand Imagery (Before Use): Two recent examples illustrate how shape influences product perceptions. In one we found that Dove's taller thinner package for women's antiperspirant suggested a more "feminine" and "clean" product than those of competitors packaged in thicker and more uniform packages., even though it did not provide a
rational/functional advantage. An own able structure or delivery system can also provide a powerful link to brand heritage or relevant imagery. In a recent study, we found that a certain shape conjured up customers' memories of old milk bottles, and linked to their nostalgia for "simpler times" in a consistently positive way.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY y Functionality and Satisfaction (After Use): A new structure that provides functional benefits can lead to an improved usage experience, increased customer satisfaction, and ultimately to stronger brand preference and loyalty. However, it is important to remember that only people who use the product will experience the functional benefits. In other words, unless a packaging innovation is clearly visible and/or well communicated, it may not contribute significantly to business value. In order to document all of these potential sources of value, a comprehensive packaging study should simulate both the shopping and the usage experience. Moreover, it should measure a packaging system's shelf visibility and impact on product perceptions before usage.
Linking to business value Ultimately, to provide "evidence" that a new packaging system will provide business value, it is necessary to simulate the introduction of the new system and document its impact on shoppers' decisions. For this reason, the single most important principle is to evaluate each new packaging innovation on a monadic basis, in the context of competitive packaging. In other words, one large group, or cell, of target shoppers should encounter the current packaging in the context of primary competitors, and be asked to evaluate each package and make a purchase decision. Another matched group of target shoppers should encounter the new/ proposed packaging in the identical competitive context, and go through an identical interview process. By comparing data across these two groups, a study can document the impact of a packaging innovation on consumers' attitudes (implied product
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY perceptions, brand imagery, perceived functionality, anticipated pricing, etc.) and, more importantly, on their preferences/purchase decisions. In other words, a study can isolate and measure the impact of a packaging innovation along two measures directly related to business value: y y The impact on preference vs. competition (market share); The ability to justify a higher price without losing share (pricing).
These measures allow marketers to translate functional benefits into an informed estimate regarding the economic impact of a packaging change. Specifically, they allow marketers to address the primary questions on their mind: "If we introduce the new package without changing the price,
will we pick up enough market share to justify the investment?" "Will we will be able to pass along the additional cost per unit without losing any market share?" Conversely, the most misleading findings come from studies in which companies attempt to project the added-value of a new packaging system by asking people directly about how much more they would pay for a particular benefit. Unfortunately, pricing is perhaps the single area in which customers are least likely to be honest with interviewers. In other words, if you ask a person directly if he or she would pay more for a new and better package, the answer will usually be "No." However, if you introduce that better packaging system at a slightly higher price, you may very well find that people do not notice the difference, or are actually willing to pay more. Ultimately, innovation in packaging is a combination of commitment and process. The exceptional companies recognize the potential value of
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY proprietary packaging, and they invest the time and resources needed to properly develop and fully assess new concepts.
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PACKAGE REDESIGNING
Redesigning a package to increase sales can be a huge risk for most companies. In most circumstances a packaging engineer is hired to create, design and implement the most cost effective package for a product. This consistent concern of package costs can hinder the marketability of a product and ultimately hold back potential sales. Although cost considerations are an important part of any business, there are other factors that need to be addressed before making a final decision on a package. In todays markets, consumers enjoy having options and, with supermarkets carrying an abundance of products, options are what consumers will get. With all these options available, marketers must discover new ways to embed a memorable product brand into the minds of the consumer. At times, package redesign can provide a memorable brand.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY There are three reasons companies should consider package redesign as an option: contemporary appeal, greater visual impact, and reinforcement or upgrade. Contemporary appeal will be discussed first. As times change, so do consumer trends. To keep up with this constant change product brands and packaging must also change to continually meet the needs of the next generation consumer. Innovative packaging structures and graphics can play an enormous responsibility in keeping a product up-to-date. Even products with old-fashioned appeals must sustain a modern-day affiliation with consumers. The second reason is greater visual impact. When a customer enters a store, he or she is immediately exposed to a variety of products and package styles. Without realizing it, the consumer constantly judges the quality of the products based on the appearance of the package itself. Packaging is the manufactures primary line of defense against competitors and the final appeal. A smart package design can give a product a better visual shelf presence and separate itself from the competition. Finally, the third reason for companies to consider packaging redesign is brand reinforcement or upgrade. With thousands of new products entering the market each year, it is important to remind consumers new is not always better. It is necessary to reinforce a products brand principles by designing a package that reinsures consumers of values such as quality, reliability, and innovation. This leads to brand revitalization in many cases. brand
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CASE STUDY
Landor Creates New Packaging and Identity for PJ Smoothies
About PJ Smoothies Each PJ Smoothie packs in two portions of pure fruit so they are supercharged with fine ingredients, supplying you vital vitamins making you well on the way to the government recommendation of five fruit and vegetable portions a day. The Pete and Johnny (PJ) brand was born on 14th October 1994 through the entrepreneurial efforts of Harry Cragoe and Patrick Folkes. The Redesigning Landor Associates' London office has created the new packaging and brand identity for PJ Smoothies, the UK's original smoothie brand, which was acquired by PepsiCo UK in 2005. Landor was appointed noncompetitively in July 2005 as a result of the consultancy's existing relationship with PepsiCo UK, producing award-winning work on brands such as Walkers and Tropicana. 57
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Currently being shipped to UK retailers, the new design is part of a major investment programme that will also include TV advertising, Direct Marketing, Sampling, On-line and In-store activity. The aim is to position PJ Smoothies as the accessible brand in a bid to transform the elitist, niche smoothie market into a mainstream choice for consumers. Most consumers are unsure about what a smoothie is and perceive little product differentiation between brands, so educating consumers about the product via an appealing brand personality is essential. Landor strategists worked with the PJ Smoothies brand team and other agency partners to define a relevant and differentiated brand personality with unique tone of voice that could come to life at all consumer touch-points. In a market characterised by pack designs that focus on either fruit photography or 'stark' illustrations, Landor developed a truly differentiated typographic design route for PJ Smoothies which 'heroes' the delectable flavours in a way that brings to life its lively, outgoing and straightforward personality. The handcrafted 'fruity' type, natural colours and overall design simplicity underline the purity of the product held within. The subtle fruit illustrations add a level of friendliness unparalleled in this market. The logo has been modernised and simplified to give it more authority and make it easier to use off pack. The back of pack (BoP) is used as a reinforcement of the brand's personality and focuses on explaining what a smoothie is in a visually playful way, linking back into the overall communication idea 'Want fruit, drink fruit? '. The pack therefore becomes integrated with other marketing channels through consistent messaging. The result? A pack design that infects people with enthusiasm has a good sense of humour that is open and universal. It is open and approachable,
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY rather than elitist or cynical. And it tells it how it is, simplifies rather than complicates. In short: lively, outgoing and straightforward. Landor continues to work with PepsiCo UK on a variety of design programmes for Walkers, Quaker, Tropicana and Pepsi.
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BRAND REVITALIZATION AND PACKAGING

Three Kinds of Revitalization y Revitalization can require the rebranding of a company from the inside out. y Revitalization can involve updating the brand's products and product attributes with better, demanded features. y Revitalization can require repackaging for a more contemporary brand image to appeal to new generations of consumers. Myriad CPG (consumer packaged goods) brands are constantly being revitalized, and repackaged, to contemporize them for new generations of consumers and to ensure companies' continuing growth in equity. Food and FMCG brands are masters at revitalization. Examples When sales slowed on the venerable 40-year-old Head & Shoulders shampoo brand, P&G decided to revitalize. Consumers can still purchase the classic formula, or meet more cosmetic-oriented needs with reformulated SKUs that guarantee extra fullness, dry scalp care, or intensive treatment. With its revitalization, P&G now says that Head & Shoulders has broader appeal among more consumers. The CPG giant also designed contemporary packaging, reduced package size, and set a higher price point for additional anti-dandruff ingredients to give the repositioned heritage brand the same presence as a salon formula line rather than that of a basic, utilitarian product. Snack food giant Frito lay revitalized its product line recently by eliminating Trans fats (in the form of hydrogenated oils). The company then revitalized the packaging of its extensive line to make the "0 grams Trans Fats" very prominent on the upper right hand corner of every 60
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY product package. Touting the use of whole grains in a number of its products helps the company fulfill its commitment to deliver tasty snacks that are more healthy and nutritious. Hanes entered the supermarket scene as revenues from its sales in department stores were declining. Rather than use its pre-existing brand, the company unveiled an old product in clever new packaging, using an unorthodox name which stuck in the customers minds. Leggs achieved spectacular sales and domination of its category. Had Hanes relied on a more conventional approach, it is unlikely the company would have achieved the same degree of success.
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CASE STUDY
Tobaby: Brand Revitalization Background Tobaby is a well-known skin care/cosmetics brand in Guangzhou, China, recognized as reliable and a good value. Facing increased competition from local and international brands, Tobaby needed to broaden their customer base and expand beyond Guangzhou and China. Research results revealed that consumers found the packaging unattractive, dated and not reflective of the quality of the products. Landor was brought in to rejuvenate the brand and enhance the stylish and contemporary attributes of Tobaby. Challenge The butterfly symbol of the old identity was proprietary to Tobaby, but the visual expression was cluttered and unfriendly. Landor needed to strengthen the basic identity, while retaining the butterfly imagery. Tobaby has various product lines, from basic skin care to UV protection and hair care. Each has its own look but is designed to resemble leading international brands. The packaging program required a simple, clear communication standard that projected Tobaby's own personalityyouthful, lively and stylish. Landor's Solution
Landor created a new identity that leverages existing equities by using an agile, delightful butterfly icon, and by introducing a more refined, elegant logotype. A system of basic applications such as business card, newsletter and in-store signage was launched to support the new look of Tobaby products. The initial packaging focus was on the flagship skin care lines H2O, UV Whitening and Eye Cream. Using color to differentiate the product lines and maximize shelf impact, the new packaging reinforces the quality of the brand and displays a modern, youthful appearance.
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CONTEMPORIZING RIGHT WAY
THE
PACKAGING
THE
CPG companies feel the pressure to repackage with more frequency now than in years past. It's important to keep product packaging contemporary to appeal to core customers, while attracting new ones: y It is vital to retain brand heritage and equity. The strengths of the mature brand should be leveraged when repackaging. y Consumer research uncovers the brand drivers, some of which are latent when products have been in the marketplace for decades. y Research enables the brand identity/package design expert to make certain the brand and product core assets and differentiators are firmly in place. Since a brand's packaging is its most enduring and accessible brand communication vehicle, it must convey the brand experience through the package design system. The brand's packaging must be a synergistic part of the overall brand expression continuum. Recognizable, trusted brands in visually appealing, stimulating packaging have a distinct advantage in a sea of product sameness, in category after category. Bottom line: Periodic corporate brand revitalization is an essential component of brand management. Product revitalization gives new relevance to what could have been perceived as tired, aging consumer goods. Finally, revitalized packaging allows a CPG company to communicate its realigned core brand, prioritize its communication hierarchies and share its core assets fully with customers, creating an emotional bond.
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PACKAGING OR ADVERTISING : WHAT COMES FIRST

Is packaging primarily a direct sales vehicle or is it a form of advertising, image management, and long-term brand-building? Traditionally, advertising has led the creative communication for the brand marketing campaign, with packaging design being a smaller and more isolated component of the brand development. We all know the distinctive red and white "uniform" associated with the Coca-Cola brand packaging, but it was undoubtedly the "It's the real thing" advertising campaign in the 1980s that cemented Coke's place in the hearts and minds of the consumer, making the brand a global success.
The creative power shift
Today, brands across every sector are facing an increasingly competitive brand landscape and an increasingly cynical consumer. Today's consumers do not want the "hard sell" and tend to disregard mass brand communications such as advertisingin favor of more personalized messaging mediums such as word-of-mouth recommendations and community marketing initiatives.
Like these initiatives, package design has the power to connect with the consumer to communicate a brand's message on a more physical and individual level. It's time for the full potential of package design as a brand and business asset to be fully recognized and realized.
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Consumer connection To understand this creative shift and the evolving brand-marketing picture, we need to start by studying consumers and their motivation for buying. From recent media and industry sources, we know that today's consumers do not want to be explicitly marketed to and the blatant "hard sell" of advertising is turning them off. But, they are, of course, still buying brands.
What is attracting them to brands today? Research has shown that they are looking for that something extra-not to just buy, but to buy into brands. We have found that they are more inner-directednot motivated by mass advertising or peer pressurebut they are looking for a more intimate offering and a way to co-create the brand (to imbue a sense of personal authorship and individual expression). They are buying to express rather than impress. They want a more intimate and physical relationship with brands just as they would expect from people. Intimacy and individuality are undoubtedly at odds with the one-size-fits-all ethos that defines advertising. In addition, some recent advertising has become so clever and aspirational that (although we can appreciate the creativity) it forges a divide and sense of disassociation rather than pulling us closer to the product being promoted. The size of the United States and the breadth of media channels pushing advertising only add to this fragmentation of advertising. The design industry now has the opportunity to educate, inspire and excite brand owners and shift the creative mindset in line with the changing consumer landscape.
In the current climate, packaging design is effective simply because, more than any other medium, it stays true (both physically and metaphorically) to the product. It is the key interface between brand and consumer as it can
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY connect on a physical, spiritual and sensory level to create that all- important ingredient to guarantee brand success: desire.
Design and desire
To be successful, every brand needs to retain and build desire, but with desire being a continually evolving force, this is not easily attainable. With today's discerning consumer desiring the personal, the intimate and the individual, brands need to look at ways to build these elements into their brands and to create this desire. Above all, brands need to help the buyer buy rather than the seller sell.
Design is having the vision to make something substantially better for the consumer, and packaging design is the key medium for tapping into today's desire and communicating it in a way that the consumer believes. It can convey a host of messages that appeal to the sensibilities of different consumers through written or visual language, and by considering all the elements of packaging design such as naming, graphics, structure and texture. A successful package design will balance these key components to allow the individual respect, knowledge, connection, freedom and contradiction in all their choices; creating desire by allowing them to be both part of the overall brand experience and to create an individual interpretation.
With brands and businesses ever more accountable, we need to be able to prove that design creates desire and, ergo, sales success. While industry awards and methods of measuring audience reach with an ad campaign are all viable indicators of creative business success, moving a product off shelf relies first and foremost on the power of packaging design. It is tangible.
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CASE STUDY
Green and Blacks
The following case study demonstrates how brand can leverage design as an integral, and accountable, part of the brand marketing campaign.
Green & Black's was launched by a husband and wife team in 1991. The bittersweet cocoa taste and organic credentials had instant niche appeal but the brand never progressed beyond a 1% market share. Pearlfisher started work with the brand, in its earliest days, at the end of the '90s. In 2002, Green & Black's asked Pearlfisher to reposition it from a worthy brand to a luxury and mainstream brand. The five-step creative brief said the following: y To allow Green & Black's to operate in the premium sector, an emerging market with intensifying competition y To reposition the Green & Black's brand from worthy organic to luxury premium chocolate (leading on taste with organic a supporting, rather than a primary, reason to purchase) y To create desire for dark chocolate in a milk-chocolate-dominated world y To enhance shelf standout and make Green & Black's a must-stock brand for mainstream retailers and supermarkets y To meet an ambitious sales target of 17m by the end of 2004
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Pearlfisher created a strategically led visual identity. The dark brown color clearly communicated intense flavor first, while the gold typography of the logo acted as a cue to the brand's premium status. Although still part of the logo, organic was now seen as a supporting differentiation rather than a lead message. The shift of emphasis gave the brand a clear product-led positioning that acted as a solid foundation for all other activity.
The packaging design set the new strategy in motion and was the inspiration for the advertising and PR campaigns with the images used in those disciplines building on the style of the new packaging, rather than the other way around. The advertising theme, "Ah, that's what chocolates supposed to taste like," followed the packaging stance that presented the essence of the brand as intensity of taste.
Results
Sales rose from 4.5m to 23m in 2004, and total sales of the chocolate bars (70 percent of total brand sales last year) rose 400 percent since the relaunch period. The total Green & Black brand now has a retail value of 50 million and, on a rolling MAT basis, is growing at 50 percent year on year.
Beyond bars, the new packaging look was extended across the rest of the
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY product portfolio including ice cream, drinking chocolate, biscuits and gift confectionery. Green & Black is now viewed as a premium high-quality chocolate brand rather than just an organic chocolate. Green & Black's marketing director, Mark Palmer, has commented, "There is no doubt in my mind that the packaging design has led the change and been the single biggest factor in the growth, and the success in the UK has paved the way for a similarly impressive entry into the U.S. market." Sales in the United States now represent 10 percent of the companies turnover. Indeed, G&B's is actually the fastest-selling chocolate in leading natural food stores such as Whole Foods Market.
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PACKAGING DOMINATES COMPETITION

Competitive Strategy (Porter) y Strategy is concerned with identifying how you intend to meet your corporate objectives y Competitive Strategy involves positioning a business to maximize the value of the capabilities that distinguish it from its competitors. Packaging can be a major component of the marketing strategy--giving a product a competitive advantage. a small company in the south, with the debut of Chik shampoo in the service package format (1 Re. sachets) paved ways to capture the rural market with innovative & smaller packets whereas the big giants HLL & P&G had not even thought of rural India as an important market. By communicating a products most believable and desirable attributes through packaging, customers are likely to purchase the product as least once. Then, if the product itself is worthy of repurchasing by the customer, brand loyalty will soon be established and sales will increase. Packaging is a unique brand communicator. While tangible, it can deliver the intangibles of the brand like nothing else since the customer can see it, touch it and be engaged by it in a physical manner. It can also speak to the heart, not just the mind, of the customer. Dry packaging that dutifully lists features and benefits alone seeks out an intellectual response. That prompts the customer to think and employ reason: Should I purchase this brand vs. the other brands here? It does not, however, elicit a prompt decision. Decision-making is a process. On the other hand, packaging that unabashedly appeals to the emotions of the customer, leads to action. The structure, typography, use of color and symbolism that evoke an emotional response stop the customers in their 70
AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY tracks. We humans are emotional beings and if brands do not align themselves within our human experience, or touch us in an emotive way, why would they have any appeal to us? A good packaging in the shelf amongst all the competing brands will associate & engage the customer & hence will help the company dominate the competition.
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PACKAGING DRIVES SALES

There is no question that marketing and branding are important parts of any business. The way products are marketed can and will vary between industries depending on the target market. Nonetheless, the goal of marketers remains the same for all businesses. That goal is to increase sales by creating a memorable advertising campaign, product/service, or creative package to gain market share in their respected industries. Research shows that 85% of the shopping in a modern retail outlet is on impulse where packaging, labeling & shelf positioning are the driving factors and within shorter and shorter time frames. E.g. HLL`s skin care business posted a 22 per cent growth in 2002, propelled by Power Brands , Fair & Lovely and Ponds skin applications, each posted double digit growth, with innovative products, appropriate packaging and effective advertising, despite a declining market.
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EXCLUSIVE CONSUMER SURVEY

Heres proof that the package is a strong influence and your department should get more development dollars. To view the influence of packaging on purchase decisions from a new angle, The Consumer Network asked a national cross section of its shopper panel how much influence packaging had on their buying decisions relative to the influence of price, brand, freshness and specific item preferences. The question was repeated for 25 product categories, from candy to whole fruits and vegetables. The survey format was triggered by a shopper who called the Networks attention to a phenomenon she called brand overload. To her, brands had become like politicians at election season, promising a lot but not really delivering. Other consumers have had similar comments: Many shoppers said that brands have let them down in the last few years. Buying trusted brands is no longer the shortcut to health and satisfaction. Todays shoppers are being asked to consider more options and deal with more products and more information than ever before.
Todays shoppers might have more insight about their buying decisions than they are being given credit for. The survey prompted some respondents to think about how they shopped at different times and places; some to talk about how they shopped differently with family members; and some to learn more about themselves as shoppers. One respondent said, This survey was a learning experience about me. Another said, I had fun trying to watch myself shopping in these categories in order to fill this out. The survey asked respondents to consider packaging in every category and to consider brands in two ways: one, the influence of specific items they
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY liked or were in the habit of buying, such as Diet Coke; and two, the influence of the brand itself, such as Coca Cola. Some respondents had trouble making that distinction, but most respondents enjoyed it. The high level of respondent involvement gives the influence ratings an extra level of meaning. On the other hand, since it includes only five influencers, it has some major limitations. Some would-be respondents returned blank surveys because their primary influencers werent included: I am mostly looking to buy organic and natural in almost all of these categories so this survey doesnt apply to me. How the survey was conducted The questionnaire took the form of a "purchase influence matrix. Responses were tabulated based on the first 600 completed responses. Among these tabulated responses, approximately 150 were in the 20-34 age group, 200 each were in the 35-49 and 50-74 age groups, and 50 were in the 75+ group. Respondents were asked to rate each influencer using a 5-point scale ranging from 1 as No influence on purchase decision to 5 as Great influence. Ratings were done independently, so each category could have multiple 5s, multiple 4s, and so on. The percentages reflect the average rating given to each influence. (This was based on ratings of 2, 3, 4 and 5. We did not include 1s because they did not represent an influence.) Each specific influence (packaging, price, brand, freshness and specific item preferences) was counted as one fifth of the overall purchasing decision, with the influences adding up to roughly 100%. For example, if all respondents in the candy category had given a 5 rating to packaging and a 4 rating to the remaining influencers, packaging would have scored 24% for the candy category.
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How packaging ranks in 25 product categories CATEGORY PACKAGING PRICE BRAND PRODUCT FRESHNESS Cleaning First aid Cut fruit Ketchup Pills/Tablets Cut veggies Cheese Frozen entrees Soup Cat food Crackers Ice cream Sauce Dog food Soft drinks Cereal Cookies Juice Mayonnaise 22.3% 20.9% 20.5% 19.4% 19.4% 19.3% 19.2% 18.6% 18.1% 18.0% 17.7% 17.7% 17.7% 17.6% 17.5% 17.5% 17.5% 17.4% 17.1% 25.2% 24.3% 20.9% 21.8% 23.0% 23.8% 21.8% 23.1% 19.0% 23.2% 21.5% 23.3% 23.0% 23.4% 22.6% 22.7% 21.5% 23.2% 21.7% 22.4% 21.0% 14.8% 20.1% 19.0% 14.7% 19.4% 20.8% 22.6% 19.3% 21.0% 21.0% 20.8% 23.4% 22.4% 21.6% 19.6% 19.7% 23.0% 19.8% 19.1% 17.9% 20.6% 18.8% 17.1% 17.7% 18.1% 19.4% 21.1% 19.0% 18.2% 19.4% 19.3% 19.7% 20.7% 17.9% 18.1% 18.9% 10.4% 14.7% 25.9% 18.2% 19.8% 25.1% 22.1% 19.4% 18.1% 18.3% 20.9% 19.8% 19.1% 17.7% 17.8% 19.9% 23.6% 21.6% 19.3%
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Chips Milk Meat Candy Whole veggies Whole fruit
16.9% 16.7% 16.1% 16.0% 15.7% 11.7%
22.2% 22.9% 24.1% 21.7% 25.5% 25.2%
20.0% 18.9% 16.8% 20.6% 14.0% 11.5%
18.7% 18.0% 18.5% 20.5% 18.5% 19.1%
22.1% 23.6% 24.6% 21.2% 26.4% 25.1%
Source: The Consumer Network More than 90% of the respondents rated the influence of packagingas well as price, brand, freshness and specific item preferencein each category they tackled. More than 80% rated the influence of the specific item as well as the brand in most categories. And 10% of the respondents left the specific item column out of their ratings. All of the respondents were able to differentiate packaging from brand or price, and most respondents influence rating relationships between packaging, brand and price changed in each category. Some gave packaging high influence ratings in some categories and brand high influence in others, while some said price ruled their purchases in most categories packaging matters. The findings show that consumers are acknowledging the influence of packaging on their purchases. Packages influence trumped brands influence in three categories, including pills/tablets. Packaging was rated as more influential than specific product preference in seven categories, including cheese and frozen entrees. Also, in seven
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY categories, specific product preference was rated as having more influence than brand. Brands held the top-rated influence position in only three of the 25 categories included in this study. One respondent commented, When buying Kraft or Bayer meant buying the good stuff, buying was easier. Now it may mean paying more than you should. In most categories, price was rated as the most influential. In most categories included in this study, brands were rated less influential by younger than by older consumers. Packaging was rated more influential by younger respondents than by older respondents even though older respondents, especially those 75+, are more likely to have trouble opening, reclosing and pouring. The closeness of the packaging to the brand influence ratings suggests that packaging has gained influence as brands have been extended, stretched and weakened. The findings also suggest that brand marketers should look for more opportunities to use packaging for brand building. Considering the ratio of money spent on advertising to the money spent on packaging, the findings of this survey suggest that spending on packaging may have a higher, long-term return. For the last century, changes in the way consumers perceived convenience are what drove whole categories to change. Convenience is a moving target that was once defined by condensed soup and Ivory Soap. Campbells Soup has been able to partially update the convenience of its condensed soups with pop-top lids, but Procter & Gamble hasnt found a way to make a place for its once-flagship Ivory Soap in 21st Century lifestyles. The ease of finding floating soap in cloudy bathwater is a weak selling point in a time of quick power-showers.
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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY Todays consumers are on information (and product) overload. With miles of choices lining the shelves, more consumer demands are working their way into product packaging and purchase decisions, and each product category works differently. Brands are often still considered to reflect product quality, but now, consumers depend just as much on packaging to fulfill their entire product needs in a single hit.
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CONCLUSION
Packaging is not just about a providing a neat & tidy setup to certain products. its about creating an image a television channel also is packaged d better and more glamorous it looks the more it sells(TRP), a newspaper has its packaging in terms its positioning like The Hindu the Chennai based national English daily which is positioned as the serious hard core journalism with no frills attached, the color of paper supports the same positioning it is all black & white with less of commercials, same holds true for almost everything the banks ICICI revamped the entire look of its branches to come across as a friendly & approachable bank, the retail stores, etc. What looks good sells may not be totally true but what is good and looks ugly sells is also not true so a good quality product has to come in attractive packages to sell. Today packaging not only has practical functions, but also greatly influences the choice of a customer to buy this or that. The leading industry pays much attention to the packaging as the success of a product and therefore of business depends a lot on it. The packaging is the final touch in the long process of product creation. It is a means of communication with the customer both on intellectual and emotional levels. It can attract attention, arouse interest and desire to buy something and it often bonds customer to a product for long years. Hence a brand manager who does not include packaging communication mix is making a big mistake. in the brands marketing
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Real Results Marketing Brand Communications Matrix
Size of transaction Large
Brand Influenced communications can provide significant differentiation. Other factors can be as important or more important
Brand Irrelevant Brand communications cannot influence the Purchase decision
Small
Brand Incidental There may be a minor role for brand communications. Brand Driven E.g., packaging Branding and brand may influence a communications is the primary purchasing driver of value differentiation decision (perception of better quality, more-forthe-money, etc.)
Emotional
Purchase Driver
Rational
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REFERENCES:
1. Phillip Kotler : Marketing Management 2. Kevin Keller : Strategic Brand management 3. David Aaker : Building Strong Brands 4. Al Ries & Jack Trout : 22 Immutable Laws of Branding & excerpts from their interview in the magazine 4Ps 5. Marketing Communication : ICFAI university publication 6. Herbert Meyers & Richard Gertsmen: The Visionary Package 7. Michael Porter : Competitive Strategy 8. Patrick De Pelsmacker & Bergh Joeri Van den Geunes Maggie : Marketing Communication 9. Article by Bagman of Cantley 10. Articles in www.brandmarketprofs.com 11. Articles in www.brandchannel.com 12. Cases in www.landorportoliocase.com 13. Articles in www.knowledge@wharton.com 14. Articles in www.hindubusinessline.com 15. Scholarly articles ,cases & surveys given in http.Proquest.umi.com(digital library) 16. Articles in www.agencyfaqs.com 17. Articles in www.exchange4media.com 18. Articles in www.aaa.org 19. Articles in www.brandweek.com 20. All about ads show episode Impact of colors, NDTV
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Evolution of Packaging

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Moisture-free packaging Appleton

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Packaging has played a key role in this.

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PACKAGING AS A TOOL OF BRANDING

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Per s Con ona l ta c t Country

Of Origin Me ing Com dia r tis ve men Ad t

Heinz Award winning Packaging

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PACKAGING AND POSITIONING

PACKAGING AND BRAND PERSONALITY

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PACKAGING AS A DIFFERENTIATING FACTOR

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PACKAGING AND PURCHASE DECISIONS

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COMMUNICATION HIERARCHIES IN PACKAGING

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PACKAGING SIZE AND SHAPE

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PACKAGE DESIGN TESTING

AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY How?

The full impact of new packaging

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L'Oreal shampoo packaging provided immediate

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AMITY INRENATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY

BRAND REVITALIZATION AND PACKAGING

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CONTEMPORIZING RIGHT WAY

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PACKAGING OR ADVERTISING : WHAT COMES FIRST

The creative power shift

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Design and desire

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PACKAGING DOMINATES COMPETITION

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PACKAGING DRIVES SALES

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EXCLUSIVE CONSUMER SURVEY

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Chips Milk Meat Candy Whole veggies Whole fruit

16.9% 16.7% 16.1% 16.0% 15.7% 11.7%

22.2% 22.9% 24.1% 21.7% 25.5% 25.2%

20.0% 18.9% 16.8% 20.6% 14.0% 11.5%

18.7% 18.0% 18.5% 20.5% 18.5% 19.1%

22.1% 23.6% 24.6% 21.2% 26.4% 25.1%

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