Why packaging is an important business marketing strategy? Packaging is a strategic marketing tools for your business. High demand of some goods and products these days is the function of packaging. Some products are highly demanded by consumers, not because of their qualities, but due to their attractive packages.
You should be aware that there are several factors responsible for the growth of packaging usage globally. Among them are:
- Self-service: An increasing number of products are sold on a self- service basis in supermarkets and discount houses. It has been reported that in an average supermarket, which stocks 15,000 items, the typical shopper passes by some 300 items per minute. Given that 53% of all purchases are made on impulse, the effective package operates as a five-second commercial. The package must perform many of the sales tasks. It must attract attention, describe the product’s features, create consumer confidence, and make a favourable overall impression.
- Consumer Affluence: Rising consumer affluence means consumers are willing to pay a little more for the convenience, appearance, dependability and prestige of better
- Company and Brand Image: Companies are recognizing the power of well-designed packages to contribute to instant recognition of the company or brand. The Campbell Soap Company estimates that the average shopper sees its familiar red and white can 76 times a year, creating the equivalent of US$26 million worth of
- Innovation Opportunity: Innovative packaging can bring large benefits to consumers and profits to producers. For example, toothpaste pump dispensers have captured 12% of the toothpaste market because, for many consumers, they are more convenient and less messy.
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Most Quoted Definitions of Packaging
Packaging has been variously defined in both technical and marketing literature. One of the most quoted definitions of packaging is, packaging is the art, science and technology of preparing goods for transport and sale. It has been defined as the activities of designing and producing the container or wrapper for a product.
Packaging is regarded as all the activities of designing and producing the container for a product. Packaging might include three levels of materials such as primary packaging, secondary packaging and shipping packaging. Also, packaging has been defined as the general group of activities in product planning that involves designing and producing the container or wrapper for a product. It creates convenience and promotional value. The package is the buyer’s first encounter with the product and is capable of turning the buyer on or off.
What is the Packaging Industry?
An understanding of the packaging industry is necessary to fully appreciate the packaging revolution that has occurred in the consumer and industrial goods sectors. The packaging industry consists primarily of two distinct segments firms which manufacture the packaging materials and the marketing research agencies which conduct specialized packaging research, generally for packaging development and adoption.
Newer materials are constantly emerging in the packaging field and in many cases, which have eliminated or threatened the older materials, such as wood and steel, because of the relative cost advantage or better performance characteristics.
Why Packaging is an Important Business Marketing Strategy?
You need to know that there are various reasons for packaging. This guide will analyse why packaging is an important part of your business marketing success?:
1. It protect the product from spoilage or wastage
Packaging is used to protect the contents of the product from spoilage or wastage. Packages ensure that consumers receive the products in good condition and then derive the best benefit from them.
This is the one which is the oldest and most basic. The primary important is to protect the products from environmental and physical hazards to which the product can be exposed, in transit from the manufacturer’s plant to the retailer’s shelves and while on display on the shelves. The specific types of hazards against which protection has to be sought would obviously vary from product to product.
2. Packaging helps to identify a product
Packaging may implement a company’s marketing program. The most common reason why packaging is an important business marketing strategy is, packaging helps to identify a product and thus may prevent substitution of competitive goods. A package may be the only significant way in which a firm can differentiate its product. In the case of convenience goods or industrial operating supplies, for example, most buyers feel that one well-known brand is about as good as another. Retailers recognize that effective protection and promotion features in a package can cut their costs and increase sales.
3. Its a form of promotion
Packaging can also be used as a form of promotion. The packaging of a product can be so efective to attract customers to the product. Some of the packages can be used after the main content has been used up. Designs, sites and colours of packages can also be employed as means of promoting the product at their points of sale.
4. Package serves as a silent salesman
Packaging is increasingly being used as a marketing tool, especially in certain types of consumer products such as wine and perfumes or several other product. The importance is also substantially due to the changed structure of retail business, especially the emergence of self-service stores. In the case of consumer products, the package serves as a silent salesman. This is true irrespective of whether the product is a luxury, semi-luxury or an ordinary everyday use product.
5. Increase profit possibilities
The management of a business may package its product in such a way as to increase profit possibilities. A package may be so attractive that customers will pay more attention to get the special package even though the increase in price exceeds the additional cost of the package. Also, an increase in ease of handling or a reduction in damage losses will cut marketing costs, again increasing.
