INTRODUCTION

STATEMENT OF THE PROBLEM

This study will primarily investigate consumer behaviour towards packaging of FMCG products.

It is about all those factors that must be considered while designing a package which induces a consumer
to buy, also keeping in mind what the consumers will pay for and how it will benefit them;
simultaneously keeping a track of the environmental consequences of the packaging material used.

Thus, the research is titled The Role of Packaging in the Sale of FMCG Products.

OBJECTIVES OF THE STUDY

The main objectives of this study are:
1. To find out if Packaging influences a consumer to shift from one brand to another
2. To find out which aesthetic factor attracts the consumer towards the purchase of an FMCG
product
3. To find out whether the reusability of a package influences a consumer to buy an FMCG product
4. To find out the impact of an 'eco-friendly' package on the consumer

HYPOTHESIS FOR THE STUDY

1. Packaging does not influence a consumer to shift from one brand to another
2. 'Color, texture and contrast' is not an important aesthetic factor that attracts consumers towards the
purchase of an FMCG product
3. Paper is the most preferred packaging material in the 21st century
4. Consumers will prefer innovative packaging each time in case of preserved products
5. Consumers are not willing to pay more for eco-friendly products

RESEARCH METHODOLOGY: METHODS AND TOOLS

RESEARCH METHODS
Primary as well as Secondary research was employed in this project.
Primary research is the first hand research that the researcher collects, by interacting with the sample
population and the conclusions and analysis he/she draws from the data that has been obtained.
Primary research in this project involved interacting with 61 consumers to know, understand and
comprehend the influence of packaging on their buying behaviour and their individual views on ecofriendly packaging.
Secondary research is the background research done by the researcher on already existing information
regarding the topic.
This helps the researcher in determining whether previous research papers have been written on that
particular topic and if and how new ground on that particular topic can be covered. It also helps the
researcher in building a base for the questions to be asked to the sample population and to construct an
informative questionnaire and ask all the right questions.
Secondary research in this project involved reading and examining various research papers, journals and
books written on or related to The Role of Packaging on the Sale of FMCG Products.

DATA COLLECTION METHODS

Quantitative Data: Surveys
This method captures information through the input of responses to a research instrument containing
questions (such as a Questionnaire). Information can be input either by the respondents themselves (E.g.:
An Online Survey) or, the researcher can input the data (E.g.: a phone survey, a one-on-one survey, a mall
intercept, etc).
The main methods for distributing surveys are via a website, postal mail, phone, or in person. However,
newer technologies are creating additional delivery options including through wireless devices, such as

smart phones and technologies wherein the information gets recorded in real time and can be viewed and
intercepted very easily through pie charts and bar graphs.

Surveys for this study were conducted via one-on-one personal interviews with consumers at their
households or workplaces.
Most consumers were forthcoming with their responses and displayed significant interest and
involvement.

Qualitative Data Collection

Qualitative data collection requires researchers to interpret the information gathered, most often without
the benefit of statistical support. If the researcher is well trained in interpreting respondents comments
and activities, this form of research can offer very good information. However, it may not hold the same
level of relevancy as quantitative research due to the lack of scientific controls with this data collection
method.
For example, a researcher may want to know more about how customers make purchase decisions. One
way to do this is to sit and talk with customers using one-on-one interviews. However, if the interview
process allows the researcher to vary what questions are asked (i.e., not all respondents are asked the
same questions), then this type of research may lack controls needed to follow a scientific approac

SAMPLING
Survey Started: July 2015
Survey Completed: october 2015
Geographical Area Covered by the Survey: Across Mumbai Suburban and City.
Definition of the Population:
The survey was done for consumers who indulge in the buying process and make purchases for
themselves.
Sample Size : 61 Respondents.

LIMITATIONS OF THE STUDY

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1. The paucity of time and resources was the major constraint.

2. The sample size was limited.
3. The sample was taken from the population residing in Mumbai only. Thus the results are not
applicable to the whole of India.
4. Non co-operation of some respondents has also affected the research results.
5. Being an opinion survey, a lot of subjectivity is involved in the study.
6. The possibility of respondents being biased cannot be ruled out.
7. The limited knowledge of the respondents regarding the topic may hamper the true conclusion of
the study.

JO DIKHTA HAI WOH HI BIKTA HAI

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The earlier approach to marketing was simple enough: make sure the product is visible - on store
shelves and through mass media advertising - and the product will sell itself. With the evolution of
modern retail, the emphasis is shifting to in-store displays and promotions - probably also because for
the first time, the space for such initiatives is available.
But manufacturers no longer have the last word on what will happen at the store. Modern trade has a
significant say in promotions, perhaps because it offers far superior results with a much faster lead
time.
Sunil Sethi from Cadbury India points out that retailer are more open to brand promotions and
displays - including posters, gondolas and danglers - when manufacturers back up their ideas with
shopper insights. "There will be a shift from traditional media to increased communication at the point
of purchase," he says.
Initiatives that help grow the category as a whole are particularly welcome, say analysts, since that
boosts the retailers' revenue. And many FMCG companies are predicting that spends on promotion,
in-store and point of purchase displays will increase significantly from the present 20-30 per cent
share of the marketing budget.
Consumer goods companies need to make several changes - in strategy and in attitude - if they are to
achieve the same level of success with organized retail as they have with traditional formats. Printing
barcodes on their products would probably be a good place to start.
SHOW YOUR PRODUCTS TO CUSTOMERS
Buyers spend lots of energy in buying and developing the merchandise before it finally hits the stores.
Sometimes, however, it is forgotten that one very critical aspect is the way the product is presented to
customers in the store and overlook issues such as packaging and in-store display.
The importance of the saying JO DIKTA HAI WOH BIKTA HAI cannot be overestimated. Proper
display and presentation can make all the difference between achieving and not achieving sales
targets.
Remember the following:
1. Visual Merchandising: Be involved in the planning of the in-store presentation of your
merchandise. Adequately plan the MDQs (Minimum Display Quantities).
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2. Communicating Ideal Presentation Standards: Effectively communicate to the store staff on how
the merchandise should be displayed and the ideal presentation standards. This could be by way of
talking to sales staff directly, sending a mail before the merchandise arrives at the stores or making
a detailed manual at the beginning of each season.
Remember to look for ways in which the job of the sales staff can be made easier by improving
packing and display methods of the product.

Visual Merchandising by Milo

Success Factors for Visual Merchandising

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INTRODUCTION TO PACKAGING
MEANING OF PACKAGING
Packaging is the science, art and technology of enclosing or protecting products for distribution,
storage, sale, and use.
Packaging also refers to the process of design, evaluation, and production of packages.
Packaging can be described as a coordinated system of preparing goods for transport, warehousing,
logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells. In
many countries it is fully integrated into government, business, and institutional, industrial, and
personal use.

The wrapping material around a consumer item that serves to contain, identify, describe, protect,
display, promote and otherwise make the product marketable and keep it clean is a package.
Packaging is more than just your product's pretty face. Your package design may affect everything
from breakage rates in shipment to whether stores will be willing to stock it. For example, "display
ability" is an important concern.

DISTRIBUTION-RELATED PACKAGING CONSIDERATIONS:

Labeling: You may be required to include certain information on the label of your product
when it is distributed in specific ways. For example, labels of food products sold in retail
outlets must contain information about their ingredients and nutritional value.

Characteristics of a Good Labeling

Opening: If your product is one that will be distributed in such a way that customers will want
to--and should be able to--sample or examine it before buying, your packaging will have to be
easy to open and to close again.
If, on the other hand, your product should not be opened by anyone other than the purchaser-an over-the-counter medication, for instance--then the packaging will have to be designed to
resist and reveal tampering.

Easy to open Dettol packages

Size: If your product must be shipped a long distance to its distribution point, then bulky or
heavy packaging may add too much to transportation costs.

Different Packaging Sizes of Amul Ice-cream

Durability: Many products endure rough handling between their production point and their
ultimate consumer. If your distribution system can't be relied upon to protect your product,
your packaging will have to do the job.

HISTORY OF PACKAGING
From the very earliest times, humans consumed food where it was found. Families and villages made
or caught what they used. They were also self-sufficient, so there was little need for packaging of
goods, either for storage or transportation. When containers were needed, nature provided gourds,
shells, and leaves. Later, containers were fashioned from natural materials, such as hollowed logs,
woven grasses and animal organs. As ores and chemical compounds were discovered, metals and
pottery were developed, leading to other packaging forms.
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Packaging is used for several purposes:

Carries the products and defines the amount the consumer will purchase.
Protects the products from contamination, environmental damage and theft
Facilitate transportation and storing of products.
Provides relevant information and colorful designs that make attractive displays.

Some of the most popular packaging developments are:

Paper and Paper products
Glass
Metals
Plastic

PACAKGING INDUSTRY
INTRODUCTION
In preindustrial society, packaging of food was far from being unknown. It was used for food storage
at home and for transport from the production place, the farm, or workshop to the local or regional
market.
Examples are the transport of cereals or flour in bags, tea in wooden boxes or tinplate canisters, and
oils in jars. At the household level, people salted meat and pickled vegetables and preserved them in
jars.
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In groceries at the end of the nineteenth century, most commodities were still unpacked and sold in
bulk. Products such as tea, coffee, sugar, flour, or dried fruits were weighed out in front of the
customer and wrapped in paper or put into a bag.
In major cities in the 1880s, the milkman came around with a dipper and can to deliver milk, which
was often dirty.

ORIGIN OF MODERN PACKAGING AND CANNING

Early methods of sealing jars included waxed paper, leather, or skin, followed by cork stoppers and
wax sealers. The beginning of modern food technology started with the experiments of the French
confectioner Nicolas Appert (17501841).

In 1795, the French government offered a prize of 12,000 francs to anyone who could find a way to
preserve food because Napoleon Bonaparte needed to provide the military with a safe food supply.
(The requirements of providing adequate food supplies for armies and navies have been of great
significance in the history of modern packaging and food preservation.) After fourteen years of
experimentation, Appert developed a method for preserving foods by heating.

The food, meat, or vegetables, was first cooked in open kettles and placed in glass jars. After
removing as much air as possible, the jars were carefully sealed with corks wired in place and then
submerged in boiling water.
Appert chose glass for the container because he believed that it was air that caused the spoilage
glass is a material least penetrated by air. It is of importance to note that, in Appert's time, it was not
known that micro-organisms caused food to spoil. The processes involved in food spoilage were not
understood until the second half of the nineteenth century.
In 1810 Appert published his prize-winning essay on food preservation and the French emperor
Napoleon awarded the 12,000-franc prize to him. Within a year, an English version appeared in
London, and the new method of preserving food in glass spread quickly to other countries.
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CANNING:
Two individuals in England are given credit for applying and improving Appert's invention, Bryan
Donkin and Peter Durand.
Bryan Donkin, an associate of John Hall's at his Dartford Iron Works, realized in 1811 that iron
containers could be used instead of the fragile glass, and in 1812 the factory began to produce canned
food such as meat. In 1810, Peter Durand patented the use of metal containers, which were easier to
make and harder to break than glass jars. (The glass jars used by Appert frequently broke.) He covered
iron cans, which were prone to rust, with a thin plating of tin (which is not adversely affected by
water), and invented the "tin can." By 1813, Durand was selling canned meat to the Royal Navy. The
British admiralty bought these foods as part of the medical stores for distribution to sick men as well
as to supply expeditions.
By 1819 canning had arrived in the United States, but no one wanted canned food until the Civil War
started. In 1821, the William Underwood Company in Boston introduced commercial canning in the
United States. For a long time, people regarded canned foods with suspicion, and for good reasons.
In the middle of the nineteenth century, the foods produced by the canning industry were as likely to
spoil as not because of inadequate heating techniques. Then, beginning in 1868, first in the United
States and later in Europe, handmade cans were replaced by machine-cut types. The new technology
made it possible for giant meat-canning firms to emerge in Chicago and Cincinnati.
The product, however, was packed in big, thick, clumsy red cans and was not very appetizing.
The American Gail Borden was a pioneer in food canning. In 1856 he successfully produced
sweetened condensed milk in cans and was granted a patent on the process. With financial support,
the New York Condensed Milk Company was established in 1857. The demand for condensed milk
was at first limited, but during the American Civil War (18611865) it was introduced on a large
scale.
The Civil War contributed significantly to the popularization of canned foods in general. The army
had to be fed and the government contracted with firms to supply food. Under difficult circumstances,
people learned that canned foods such as condensed milk can be tasty and nourishing. The invention
of practical can openers at the end of the nineteenth century made cans easier to open, making them
even more convenient for consumers.
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For many years, however, the flavor of most canned food left much to be desired. On the other hand,
it should be realized that products such as canned peas and salmon were usually sold to people living
on the American prairies or in the urban slums in Great Britain, most of whom had never eaten the
fresh product. In addition, losses due to spoilage caused by microorganisms remained high.
It was not until the end of the nineteenth century that research carried out at Massachusetts Institute of
Technology made a substantial contribution to improving the keeping quality, nutritional value, and
taste of food products preserved in cans and glass.
In the early twentieth century, the heavy cans were replaced by those made of lighter materials, and
manufacturers could stress that their products were hsygienically processed and, therefore, safer to eat
than the traditionally unpackaged products that had been sold in bulk. As food technology advanced,
numerous chemical additives were developed to control or speed up food processing and to increase
the keeping quality of canned foods.
Originally, the nutritional value of food preserved by canning was not high, mainly due to the length
of time required by the heating techniques. From the 1920s onward, however, the nutritional value of
canned foods gradually approached that of the fresh product, thanks to modern food technology.
Finally, in the 1960s, Reynolds and Alcoa companies succeeded in making all-aluminum cans out of
one piece of metal, thereby solving the problem of the weight of the cans; only the lid needed to be
attached (Clark, 1977). At the same time, the invention of the rip-off closure and the pop-top lid on
aluminum cans made them even more convenient, and made can openers unnecessary. For consumers,
the choice between fresh or canned food became largely a question of taste, convenience, and
preference.

OVERVIEW OF THE PACKAGING INDUSTRY A GLOBAL AS WELL AS

INDIAN PERSPECTIVE
The annual turnover of Indian packaging industry will touch $ 32 billion by 2025 from the present $
24.6 billion, said Union Minister of State for Commerce and Industry, E M Sudarsana Natchiappan.
"In the world scenario, the total turnover of packaging industry is about $ 550 billion where Indian
share is about $ 24.6 billion per annum.

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"The annual growth rate of this sector is about 15 per cent per annum. Natchiappan said after laying
foundation stone of new educational complex and international packaging centre.
As per the Mckinsey report, there will be ten times increase of middle class population by 2025 in
India which will further trigger the consumption of packaging material and thus, the packaging
industry will grow further, he said, adding that the country needs more packaging professionals.
If you look at packaging design in rural India, its very compelling as everything is natural. India can
become a technology transfer driven country by rejuvenating the use of agricultural by-products for
packaging. India has the potential to be a world leader in packaging and innovation going forward

PACKAGING TYPES
Protecting goods is very important. Food, electronics, clothes, furniture and other consumer goods all
come in packaging meant to protect them during transportation and storage. There are different types
of packaging solutions and materials. Packaging can be standard or custom made, for instance.
Paper and Carton Packaging:
Paper and carton packaging is used for different types of goods (food, electronics, toys, shoes,
kitchenware and even other packaging materials). Paper and carton packaging companies
produce wrapping paper, inflated paper, sheets, boxes, tubes, pallets, interlayers, corners,
edges and custom protective systems (depending on the dimension and shape of the packed
good, the carton is cut and modeled to fix and protect the product). Paper can be used to
laminate other materials in order to make them stronger. There is also anticorrosive paper that
can be used to wrap goods or to laminate other materials.
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Paper and Carton Packaging

Film Packaging:
There are multiple types of films used in the packaging industry, most commonly polyethylene
(PE), polypropylene (PP), polyolefin and polyvinyl chloride (PVC) films. The films usually
come on a roll and are used to wrap goods, cover goods, protect boxes and make other
packaging products (such as bags, tubes, bubble wrap and sheets). Films can be used for
lamination, printed or perforated. They can be anticorrosive, antistatic, shrinkable or non
shrinkable, and slippery or non slippery.

Film Packaging
Foam Packaging:
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Foam used for packaging can be produced on a roll or in sheets of different thicknesses. The
foam is used to wrap goods or make bags, corners, edges and custom systems. The corners and
edges are used to protect flat glass, furniture and sharp edges. Foam can be cut and modeled
on the product's shape to fix and protect it. It can be antistatic and has good insulation
properties.

Foam Packaging
Textile Packaging:
There are some goods that are best protected by textiles. For example, there are custom-made
textile insertions used in the automotive industry to protect car parts during transportation. The
textile insert is put on a metal frame that fits into a metal container. There is also textile
material used for box covers.
Plastic Boxes and Containers:

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Multiple types of plastic boxes and containers are used in all industries. For example, in the
food industry there are plastic containers for goods like ketchup, yogurt, milk and juices.
Plastic boxes are mainly used for transporting goods and are reusable. They can be stacked,
folded when empty to save storage space and recycled.

Plastic Containers

Packaging Systems:
Packaging companies offer different types of systems that can be divided into two categories:
special solutions and packaging machines.
The special solutions are used for valuable products that don't have a regular, simple shape.
For example, parts of airplanes or expensive decorative glass objects need special solutions to
be packed. The goods fit perfectly into the packaging and are protected against damages.
Packaging machines are used for wrapping (wrapping the stretch film on the pallet), strapping
(applying and sealing straps on boxes), sealing (with tape for boxes and with heat for films)
and shrink wrapping (applying PVC or polyolefin film on products or boxes). There are also
machines that inflate film, paper and instant foam.
Other Types:
Adhesive tapes are also considered packaging materials, as they help seal boxes. They are
usually made out of PE or PP film that has acrylic or solvent glue applied to it and that can be
printed on. Strapping tapes are usually applied on boxes or pallets. They are made out of PE or

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PP and can be printed with one color. The standard colors are black and clear for PP and green
for PE.

FUNCTIONS OF PACAKGING
The basic functions of packaging are to protect, distribute, inform, attract and sell. However, here
you face a special challenge: how to combine beauty and practicality? How to convey the vital
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product promise in a superbly aesthetic way and at the same time optimize all those functions
necessary for a profitable business?
The choice of material is crucial: durability, weight, formability, color, texture, touch and feel, costs,
filling line requirements, source reduction and other ecological aspects. In primary packaging, glass
and plastic are the predominant options but not the only ones.
In secondary packaging, paperboard carton is the clear winner with superb performance across all
packaging functions.
The heart of the matter, however, is not the material but how to use it. Theres no end to what
innovation can do better functionality from product protection to user convenience, new designs,
forms and packaging concepts, even totally new business models. Therefore, promoting
innovativeness is the key ingredient in the service palette.
Billions of pounds are spent on packaging food and other items each year. Sixty percent of all
packaging is for food products. At the beginning of the 20th century most food was sold loose. It was
weighed and measured out and placed in bags or directly into the shoppers bag to carry home.
Packaging and advertising were virtually unknown. Today packaging is a massive, lucrative industry
and often it is the way the packaging looks that persuades the shopper to buy the product inside it.

FUNCTIONS

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 Protective Function:
The protective function of packaging essentially involves protecting the contents from the
environment and vice versa. The inward protective function is intended to ensure full retention
of the utility value of the packaged goods. The packaging is thus intended to protect the goods
from loss, damage and theft. In addition, packaging must also reliably be able to withstand the
many different static and dynamic forces to which it is subjected during transport, handling
and storage operations. The goods frequently also require protection from climatic conditions,
such as temperature, humidity, precipitation and solar radiation, which may require "inward
packaging measures" in addition to any "outward packaging measures".
The outward protection provided by the packaging must prevent any environmental
degradation by the goods. This requirement is of particular significance in the transport of
hazardous materials, with protection of humans being of primary importance. The packaging

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must furthermore as far as possible prevent any contamination, damage or other negative
impact upon the environment and other goods. The inward and outward protective function
primarily places demands upon the strength, resistance and leak proof properties of transport
packaging.

Sales Function:
The purpose of the sales function of a package is to enable or promote the sales process and to
make it more efficient. It is rightly said that packaging works as silent, salesman. It catches the
attention of customers, who pick up the product, go through its description and are induced to
purchase the product. Self service is becoming more and more common in the field of
shopping, where the customer picks up the product himself and makes its payment on the
counter. Packaging in these circumstances promotes the sales.
Promotion Function:
Promotional material placed on the packaging is intended to attract the potential purchaser's
attention and to have a positive impact upon the purchasing decision. Promotional material on
packaging plays a particularly important role on sales packaging as it is directly addressed to
the consumer. This function is of subordinate significance in transport packaging. While
product awareness is indeed generated along the transport chain, excessive promotion also
increases the risk of theft.
Service Function:
The various items of information printed on packaging provide the consumer with details
about the contents and use of the particular product. Examples are the nutritional details on
yogurt pots or dosage information on medicines. The package may also perform a further
function once the contents have been used (e.g. storage container, toy).
Guarantee Function:
By supplying an undamaged and unblemished package, the manufacturer guarantees that the
details on the packaging correspond to the contents. The packaging is therefore the basis for
branded goods, consumer protection and product liability. There are several legalislative
requirements to be followed in every country with respect to packaging.

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Highlighted below are the common requirements in India as per The Standards of Weights and
Measures Act, 1976:

The name and address of the manufacturer or where the manufacturer is not the packer.
The name and address of the manufacturer and packer.
The common or generic names of the commodity contained in the package.
The net quantity in terms of the standard unit of weight or measure, of the commodity
contained in the package or where the commodity is packed or sold by number, the

number of commodity contained in the package.

The month and year in which the commodity is manufactured or pre-packed.
The retail price of the package.

PACAKGING AND MARKETING

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Thousands of new products are introduced every year, more than 15,000 to be exact. How can your
product compete, not only with established brands but with the plethora of new products that are
being introduced? The answer of course is THE PACKAGING. The right packaging with the right
message will rise above the competitive landscape.
But how many companies understand the value behind packaging as a marketing tool? Most just look
at it as a way to convey the product or recycle tired images and product packaging that doesn't work.
Understanding the complexities of how a package reaches out to a consumer is one of the most
important things to understand. Communicating that message on product packaging is a time
consuming and difficult challenge.
The answer derives from understanding what the consumer wants from their product packaging.
A good way to assess this problem is to look at yourself and how and where you shop? What compels
you to look at a new product? What drew you to pick it up and take a closer look?
Your answer may be different from that of another member of your family or a significant other but
the message is the same. You were intrigued enough by whatever ever that made you pick up the
product and take a closer look. That's half the battle won because your product will never sell if
someone doesn't pick it up in the first place.

Here are a few questions to ask yourself about your package. Remember think from the consumers'
perspective not from the manufacturers.
Is it new and innovative?
Is it fulfilling a need?
Is it easy to use and convenient?
Is it a good value?
Does it make the consumer happy?
Does it inspire consumer trust and loyalty?
Is it safe and secure?
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 Does it compel you to want to know more?

How does your product stack up in solving a consumer want or need?
Would your package make someone desire to take a closer look?
Remember it's the package talking here. It's the one doing the work marketing what's inside to the
customer. That's what you need to drill in your brain about your package - why buy me?
Evaluating or developing product packaging with the consumer in mind is your first step in creating a
package that markets all the products attributes to the ultimate decision maker the customer.
Don't get concerned if your package doesn't do all of the above. It only takes one unique attribute that
will intrigue a consumer to take a closer look. Of course the more needs you can fulfill the better
"connection" to the consumer. The "consumer connection" is what you are trying to create. So think
outside the typical behavior and solve the hidden need that will make a consumer buy your product
and not competitors.
Packaging is a complicated intricate process. Understanding it requires time and consideration. Its
not just about getting the product there. Its also about getting the product to SELL.
Branding and packaging are two of the most important components of marketing. Branding is a term
used to describe the name, description and design of a product. Branding differentiates a company's
product from their competition. Packing is a marketing tool used to reflect the brand. A company uses
packaging to sell the product inside. The colors, fonts, descriptions and logo are designed to drive
consumers to buy the product.
Sales:
The entire focus of a marketing department is to strategize methods to sell the company's products.
Branding and packaging are two of the most effective ways to do this. Once a brand has been
determined, methods are employed to sell the product. Advertising, the company website and product
packaging must all present a cohesive brand or image. In successful brand campaigns, customers
recognize the company's product packaging and purchase in part because they identify with the brand.

Branding:

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When a company brands a product, they determine its "personality." Creating a brand that is instantly
recognizable and perceived positively is the ultimate goal. Branding integrates components such as
color, style and visual imagery to distinguish a company's products from the competition. Developing
logos, slogans and tag lines are all ways that marketers communicate a specific brand.
Slogans:
One of the most effective methods of branding is the use of slogans. Companies often identify a
specific characteristic that sets their product apart from the competition. The slogan becomes a key
component in all marketing efforts, including packaging. For example, Nike has effectively marketed
both their logo and slogan "Just do it" into an easily recognized brand.
Packaging:
Packing is designed to capture a customer's attention and it can directly affect whether they buy the
product or not. Innovation and creativity come into play when it comes to packaging. A well-marketed
product is packaged in a way that compels the customer to pick it up and take a closer look, at which
point product descriptions and graphics must be clear.
Packaging Tools:
Colors, fonts, descriptions and logos are the tools that are used in packaging design. Companies
market their brands by creating a specific "look and feel" to their product's packaging. A customer
must feel comfortable enough with the presentation of the company's brand to want to purchase the
product.
Company Image:
Branding and packaging are created by a company. While these efforts are used to market products,
they in turn market the company itself. Branding reflects the image that the company seeks to project.
For example, IBM takes on a more conservative, well-established corporate image while Apple brands
itself as a hip and cutting edge company. These images reflect the market that the company has
identified as target customers.

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IBM Packaging

Apple Packaging
Brand Identity and Differentiation:
As the only part of the marketing communication that the consumer takes home, packaging plays a
key role in communicating and reinforcing brand values over time. Packaging has the power to make,
but also to break brand relationships.
A key example of the latter, is a case cited by Hofmeyr and Rice, where a change in pack design
contributed towards a drop in a leading beer brands market share by more than 20% in the space of
just one year. Nothing other than the packaging had changed the product itself had not changed in
any way. The pack change, although not dramatic (the same style but with lighter coloring) led to a
perception that the beers quality had been compromised and that it was now weaker. This caused
many previously loyal consumers to lose faith in the brand and to move to the brands stronger
competitors instead. This is a clear example of the power of bad packaging. Although a non-favorable
advertisement might be quickly forgotten, poor packaging (if it remains with the brand throughout its
usage cycle) provides a continual reminder of the brands perceived failing.
Likewise, favorable packaging can be a means of continually reinforcing the brands appeal.
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Bear Beer which was Darker in Color

Hogshead Beer which was Lighter in Color

27

WASTE MANAGEMENT OF MATERIALS USED IN PACKAGING

Package development involves considerations for sustainability, environmental responsibility, and
applicable environmental and recycling regulations. It may involve a lifecycle assessment which
considers the material and energy inputs and outputs to the package, the packaged product (contents),
the packaging process, the logistics system, waste management, etc. It is necessary to know the
relevant regulatory requirements for point of manufacture, sale, and use.
The traditional three Rs reduce, reuse, and recycle are part of a waste hierarchy which may be
considered in product and package development.

Waste Management Hierarchy

Prevention:
Waste prevention is a primary goal. Packaging should be used only where needed. Proper
packaging can also help prevent waste. Packaging plays an important part in preventing loss or
damage to the packaged-product (contents). Usually, the energy content and material usage of
the product being packaged are much greater than that of the package. A vital function of the
package is to protect the product for its intended use: if the product is damaged or degraded,
its entire energy and material content may be lost.
28

 Minimization/Source Reduction:
The mass and volume of packaging (per unit of contents) can be measured and used as one of
the criteria to minimize during the package design process. Usually reduced packaging also
helps minimize costs. Packaging engineers continue to work toward reduced packaging.
Reuse:
The reuse of a package or component for other purposes is encouraged. Returnable packaging
has long been useful (and economically viable) for closed loop logistics systems. Inspection,
cleaning, repair are often needed. Some manufacturers re-use the packaging of the incoming
parts for a product, either as packaging for the outgoing product or as part of the product itself.
Recycling:
Recycling is the reprocessing of materials (pre and post consumer) into new products.
Emphasis is focused on recycling the largest primary components of a package: steel,
aluminum, papers, plastics, etc. Small components can be chosen which are not difficult to
separate and do not contaminate recycling operations.
Energy recovery:
Waste-to-energy and refuse-derived fuel in approved facilities are able to make use of the heat
available from the packaging components.
Disposal:
Incineration and placement in a sanitary landfill are needed for some materials. Certain states
within the US regulate packages for toxic contents, which have the potential to contaminate
emissions and ash from incineration and leach ate from landfill. Packages should not be
littered.
Development of sustainable packaging is an area of considerable interest by standards
organizations, government, consumers, packagers, and retailers.
Sustainable packaging must meet the functional and economic needs of the present without
compromising the ability of future generations to meet their own needs.

29

OVERVIEW OF FMCG INDUSTRY

The FMCG industry manages consumer packaged goods - production, distribution to marketing. The
Indian FMCG industry is the fourth largest industrial sector that has stayed recession-resilient and
shows signs of bright future.
The Fast Moving Consumer Goods (FMCG) industry primarily deals with the production, distribution
and marketing of consumer packaged goods, i.e. those categories of products that are consumed at
regular intervals.
Examples include food & beverage, personal care, pharmaceuticals, plastic goods, paper & stationery
and household products etc.
30

The industry is vast and offers a wide range of job opportunities in functions such as sales, supply
chain, finance, marketing, operations, purchasing, human resources, product development and general
management.

FMCG & SMCG Products

India is a consumer driven market, with consumer spending in the country projected to more than
double by 2025. These days, the Indian consumer segment, broadly categorized into urban and rural
markets, is attracting marketers from across the globe.

Global corporations see India as a key market for the future. The growth in the country's consumer
market is largely driven by a young demographic and rising disposable income. If India sustains its
current pace of growth for the foreseeable future, average household incomes will likely triple over
the next twenty years and the country will become the world's fifth largest consumer economy by
2025, as per a study by the McKinsey Global Institute (MGI).
The Government of India has also played a significant role in the growth of the Indian consumer
segment. It has brought about policies which have attracted foreign direct investment (FDI) and
consequently boosted economic growth.
Market size

31

India has the potential to become the world's largest middle class consumer market with an aggregated
consumer spend of nearly US$ 13 trillion by 2030, as per a report by Deloitte titled 'India matters:
Winning in growth markets'.
Driven by growing incomes and increasing affordability, the consumer durables market is projected to
expand at a compound annual growth rate (CAGR) of 14.8 per cent, from US$ 7.3 billion in FY12 to
US$ 12.5 billion in FY15.

Online retailing, both direct and via marketplaces, will grow threefold to become a Rs 50,000 crore
(US$ 8.26 billion) industry by 2016, driven by a 50-55 per cent per year growth over the next three
years, as per rating agency CRISIL. The growth of internet retail is also expected to boost offline
retail stores.

Urban markets account for the major share (65 per cent) of total revenues in the consumer durables
sector in India. Demand in urban markets is likely to increase for non-essential products such as LED
TVs, laptops, split ACs and beauty and wellness products. In rural markets, durables like refrigerators
as well as consumer electronic goods are likely to witness growing demand in the coming years as the
Government of India plans to invest significantly in rural electrification.

Demand growth is likely to accelerate with rising disposable incomes and easy access to credit.
Increasing electrification of rural areas and wide usability of online sales would also aid growth in
demand.
Future Prospects:
The only threats to this strong growth trajectory remain the high portion of unorganized trade, the
limited distribution network of new entrants and the pressure on profit margins due to increasing
competition. But these are likely to be of diminished importance as proportion of organized trade
increases and players invest in improving distribution. Going forward, the industry prospects remain
attractive, and new graduates can hope to leverage the training and on-the-job learning at the leading
players in various functional roles, across the metros as well as the interior heartlands of India.
32

Scope of the Sector:

The Indian FMCG sector is the fourth largest sector in the economy. A well-established distribution
network, intense competition between the organized and unorganized segments characterizes the
sector.
Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery
categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector
witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then.
Growth Prospects:
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG
market is something no one can overlook. Increased focus on farm sector will boost rural incomes,
hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will
improve their supply chain.
FMCG sector is also likely to benefit from growing demand in the market. Because of the low per
capita consumption for almost all the products in the country, FMCG companies have immense
possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if

they are able to take the consumers to branded products and offer new generation products, they
would be able to generate higher growth in the near future.

Increase in the urban population, along with increase in income levels and the availability of new
categories, would help the urban areas maintain their position in terms of consumption. At present,
urban India accounts for 66% of total FMCG consumption, with rural India accounting for the
remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG
categories such as personal care, fabric care, and hot beverages.
In urban areas, home and personal care category, including skin care, household care and feminine
hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that
processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.
33

Indian Competitiveness and Comparison with the World Markets:

The following factors make India a competitive player in FMCG sector:
Availability of raw materials:
Because of the diverse agro-climatic conditions in India, there is a large raw material base
suitable for food processing industries. India is the largest producer of livestock, milk,
sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and
fruits & vegetables. India also produces caustic soda and soda ash, which are required for the
production of soaps and detergents. The availability of these raw materials gives India the
location advantage.
Labor cost comparison:
Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in
the world, after China & Indonesia. Low labor costs give the advantage of low cost of
production. Many MNC's have established their plants in India to outsource for domestic and
export markets.
Presence across value chain:
Indian companies have their presence across the value chain of FMCG sector, right from the
supply of raw materials to packaged goods in the food-processing sector. This brings India a
more cost competitive advantage. For example, Amul supplies milk as well as dairy products
like cheese, butter, etc

34

Growth of FMCG Industry over the years

MARKETING STRATEGIES ADOPTED BY FMCG

35

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the
greatest opportunities to increase sales and achieve a sustainable competitive. A marketing strategy should
be centered on the key concept that customer is the main goal.
SWOT Analysis Strategy:
Strengths:
a) Low operational costs
b) Presence of established distribution networks in both urban and rural areas
c) Presence of well-known brands in FMCG sector
Weaknesses:
a) Lower scope of investing in technology and achieving economies of scale, especially
in small sectors
b) Low exports levels
Opportunities:
a) Untapped rural market
b) Rising income levels i.e. increase in purchasing power of consumers
c) Large domestic market- a population of over one billion.
d) Export potential
e) High consumer goods spending
Threats:
a) Removal of import restrictions resulting in replacing of domestic brands
b) Slowdown in rural demand Tax and regulatory structure

FMCG MARKETING STRATEGY IN RURAL INDIA

Rural Marketing in India is still about a van campaign, a badly-made commercial, a few painted walls and
the occasional participation in village mandis and melas.
But then, "rural" means different things to different people: from 500,000 people for consumer durables,
to less than 50,000 for fast-moving consumer goods.
Still, it is heartening to note the increasing awareness of the importance of rural markets - or, at least, of
companies wanting to move beyond urban boundaries.
According to estimates by the Rural Marketing Agencies Association of India, the total budget for rural
marketing is only about Rs 500 crores (Rs 5 billion), compared to the over Rs 13,000 crores (Rs 130
billion) allotted to mass media.

36

This is grossly inadequate to cover the huge potential for different products in rural markets. Of course,
clients' reluctance to spend big money for bigger results in rural markets is because there are no standard
performance yardsticks for judging the efficacy of the rural marketing efforts.
Companies like Cavin Kare (Chik Shampoo, Meera Herbal Powder, Fairever Cream and so on), Anchor
(100 per cent vegetarian toothpaste), Ghadi detergent powder and Power soap are proof that regional
brands can become brands to reckon with. And don't forget Nirma, the most enduring example of a brand
that began as a regional player and is now a giant.

What did these products do that was so different? Most of them identified a segment that was vacant in
terms of product and area of operation. They all started in small, concentrated markets, appealing to the
local ethos and aspirations of the targeted area.

Their communication, be it a simple radio spot or a wall painting or a theatre film, touched a chord in the
target audience. And, most importantly, their policies were flexible and they could adopt to fast changing
marketing situations.
What should companies do to step up their payback from rural marketing efforts? Here are some steps
that should help.
People power:

Total commitment from top leadership, keeping in mind that rural marketing is a long-term
relationship, is imperative - the successes of Hindustan Unilever and ITC are proof of this
statement.
But even more important is the need for a dedicated task force. Rural marketing efforts need
special mindsets, which many of the urban-oriented management graduates who are at the
helm of affairs at most organizations do not possess.
A separate marketing and sales vertical headed by people with passion and commitment to
rural marketing and supported by a field team that can face the rough and tough of the vast
country-side with courage and conviction is a must.
37

The best bet is to recruit students from specialized institutes such as the Indian Institute of
Rural Management, or at least, management graduates who have studied the subject as an
elective.
Many of these are students from small towns, people with fire in their bellies who want to
prove themselves in big companies and have no issues about working in smaller markets. Pay
them well - remember and discuss the path their careers are likely to take in the organization.
And send them out in the field only after thorough training.
Ensure the consistency of the team involved in any project, until the completion of a specific
task.
Goals are good
Early on in the campaign, define your objective: is it a tactical effort to achieve increased sales
in specific areas during a specific time, or do you want to build a strong equity for your brand
in rural India?
Experience with FMCG companies shows that they are more interested in the first choice.
Most of them have previously appointed vendors who implement the company's ideas blindly,
be they van campaigns or below-the-line activities.
There is very little effort to tailor whatever communication is made in such efforts, to suit the
local audience or fit it with the overall campaign efforts in the mass media.
This invariably leads to less than satisfactory results in terms of awareness of the brands and
long-term impact of the efforts in the targeted markets. If you are interested in the second
alternative, a comprehensive brand building strategy in rural India, with both short term and
long term goals, is a must.

Know your customers

A good place to begin is studying the mindset of your customers, so you can create a
customized plan of action. All too often, clients insist their knowledge of their customers
(based on studies of urban India) is enough on which to base an action plan. Our experience
shows that the attitudes, aspirations and fears of rural customers, with regard to products and
brands, are very different from their urban counterparts.
Research can give you invaluable ideas for new product development as well as new methods
of reaching your target audience. The refrigerator with standby power for 12 hours, pressure
38

cookers with two handles and a radio with key-winding mechanism are all the result of
research.
More and more companies turn to the local mandis to sell their products. While mandis offer
opportunities to target consumers from several villages at one place, and to that extent make
your effort cost-effective, ensure that the people who patronize these mandis are the kind who
will buy your brand.
Ensure availability
It is a task of physically reaching your product to over 600,000 villages, most of them without
motorable roads. But it's not really as nightmarish as it is made out to be, at least keeping in
mind the present goals of marketing companies in rural India.
We've all heard about the shampoo sachets that are available in even the smallest villages.
How does that happen? It's a direct result of rising aspirations, fuelled by television
commercials. The consumer demands the product from the local shopkeeper, who then buys
the products from the nearest feeder markets.
Which means if you can ensure distribution to the feeder markets in towns or villages with
populations of 10-15,000, youve already taken the first step towards reaching your target
customer?
Studies also indicate that rural consumers prefer to shop for durables such as televisions,
automobiles and appliances in the nearest big town or city. So, if your products are in towns
with populations of 50,000, you're closer to the rural consumer than you would have thought.

39

ROLE OF PACKAGING IN FMCG

The importance of packaging design as a vehicle for communication and branding is growing in
competitive markets for packaged FMCG products.
The challenge for researchers is to integrate packaging into an effective purchasing decision model,
by understanding consumers behavior towards the packaging of FMCG products.
When consumers search for and process information in-store, the product's package can contain
relevant and useful information for the consumer. Product packaging forms the end of the 'promotionchain' and is close in time to the actual purchase and may therefore play an important role in
predicting consumer outcomes.
Packages also deliver brand identification and label information like usage instructions, contents, and
list of ingredients or raw materials, warnings for use and directives for care of product.
Packaging is the container for a product encompassing the physical appearance of the container
and including the design, color, shape, labeling and materials used
Packaging has a huge role to play in the positioning of products. Package design shapes consumer
perceptions and can be the determining factor in point-of-purchase decisions which characterize the
majority of shopping occasions.

40

In recent years, the marketing environment has become increasingly complex and competitive. A
products packaging is something which all buyers experience and which has strong potential to

engage the majority of the target market. This makes it an extremely powerful and unique tool in the
modern marketing environment.
In addition to its benefits in terms of reach, some marketers believe that packaging is actually more
influential than advertising in influencing consumers, as it has a more direct impact on how they
perceive and experience the product.

In most cases, the experience has been that pack designs are more likely to influence the consumer
perception of the brand.
For products with low advertising support, packaging takes on an even more significant role as the
key vehicle for communicating the brand positioning.
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are
products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG
products is relatively small, they generally sell in large quantities, so the cumulative profit on such
products can be large.
Examples of FMCG generally include a wide range of frequently purchased consumer products such
as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as
other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG
may also include pharmaceuticals, consumer packaged food products and drinks.
Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market
dip, because they generally satisfy rather fundamental - as opposed to luxurious - needs.

The Relevance of Packaging as a Marketing Tool:

Never underestimate the importance of packaging. Marketers often measure consumer brand
perceptions and ignore the pack. Yet we know from the way that consumers react to unbranded
41

products that packaging plays a huge role in reinforcing consumer perceptions. Packaging helps to
drive the way consumers experience a product. Yet, we spend little time researching the connections
between packaging and the direct experience of the product (Rice and Hofmeyr, 2000, Commitmentled Marketing, pg 216). Before one can assess or question the current thinking regarding packaging
research (and whether the research into packaging suitably reflects its value within the marketing
mix), one must first assess whether packaging as a marketing tool really justifies more attention.

FACTORS INFLUENCING PACKAGING DECISIONS

Packaging decisions are important for several reasons including:

Protection:
42

Packaging is used to protect the product from damage during shipping and handling, and to
lessen spoilage if the package is exposed to air or other elements.
Visibility:
Packaging design is used to capture customersattention as they are shopping or glancing
through a catalog or website. This is particularly important for customers who are not familiar
with the product and in situations, such as those found in grocery stores, where a product must

stand out among thousands of other products. Packaging designs that standout are more likely
to be remembered on future shopping trips.
Added Value:
Packaging design and structure can add value to a product. For instance, benefits can be
obtained from package structures that make the product easier to use while stylistic designs
can make the product more attractive to display in the customers home.
Distributor Acceptance:
Packaging decisions must not only be accepted by the final customer, they may also have to be
accepted by distributors who sell the product for the supplier. For instance, a retailer may not
accept packages unless they conform to requirements they have for storing products on their
shelves.
Cost:
Packaging can represent a significant portion of a products selling price. For example, it is
estimated that in the cosmetics industry the packaging cost of some products may be as high as
40% of a products selling price. Smart packaging decisions can help reduce costs and
possibly lead to higher profits.
Expensive to Create:
Developing new packaging can be extremely expensive. The costs involved in creating new
packaging include: graphic and structural design, production, customer testing, possible
destruction of leftover old packaging, and possible advertising to inform customer of the new
packaging.
Long Term Decision:
43

When companies create a new package it is most often with the intention of having the design
on the market for an extended period of time. In fact, changing a products packaging too
frequently can have negative effects since customers become conditioned to locate the product
based on its package and may be confused if the design is altered.
Environmental or Legal Issues:
Packaging decisions must also include an assessment of its environmental impact especially
for products with packages that are frequently discarded. Packages that are not easily biodegradable could draw customer and possibly governmental concern. Also, caution must be
exercised in order to create packages that do not infringe on intellectual property, such as
copyrights, trademarks or patents, held by others.

44

PACKAGING AS A MEDIUM TO INCREASE SALES

Catching consumers attention is the first step in making the sale
Packaging plays an important role as a medium in the marketing mix, in promotion campaigns, as a
pricing criterion, in defining the character of new products, as a setter of trends and as an instrument
to create brand identity and shelf impact in all product groups.
A central conviction held by the packaging industry: that the shopper appreciates and in fact explicitly
wants to receive stimulation for the buying decision he is making when standing in front of the
supermarket shelf, often even preferring this to other forms of communication. He is keen to be
informed and inspired, tempted and pampered by surprising and persuasive functions, emotions and
sensual impressions.

THE TOP TEN REQUESTS ABOUT PACKAGING

Even though the consumer is not dissatisfied with the packaging available on the market, he would
still like to be tempted by functional and attractive packaging ideas, by multisensory appeal and
creative design - preferably with packaging ideas made from board. He acknowledges additional
benefits and appeal and is even willing to pay an extra charge for them. Good starting points for
improvements, changes, innovations which optimize the features of packaging that determine buying
decisions and thus generate new market potential can be summarized in consumers' top ten requests
about product packaging:

1. Eye-catching appearance:
A distinctive, unmistakable and eye-catching appearance is a signal at the POS to which all
consumers and particularly the younger ones respond positively. Whatever stands out clearly in
the monotonous competitive environment, whatever is surprising scores points with the consumer.
Special effort makes a special impression - and is allowed to cost more too.
45

Design, shape and color:

The purpose of well-considered design, creative printing and finishing is to entice the consumer to
devote attention to the pack and its contents at the POS. Aesthetics and attractiveness are major
distinctive features - and are in fact essential in some product segments: beautiful packaging
design is of central importance in the cosmetics and confectionery product groups. Consumers like
to buy agreeably designed and decorative products.

Functionality:
Functional aspects are the basis for all successful packaging which contributes to overall higher
product success. Product and aroma protection, hygiene and tightness, environmental
responsibility and practical handling (in both use and storage) are just as important here as ideas
that improve comfort such as closure mechanisms, portioning, see through windows displays,
etc.

4 Innovation:
Novelty has exceptionally strong appeal. An innovative pack can even make "new products" out
of familiar ones. Unusual solutions, functional new developments and originality not only set
design trends but also boost sales!
5

Material:
What is printed on board is read particularly willingly, while what is packaged in board sells
particularly well. Sustainability, easy disposal and, above all, great design variety and potential are
particular features of the material. Popular with consumers, particularly high appeal and many
other advantages too.

Efficient communication:
The packaging is the credible medium at the point of sale and is consulted willingly and
intensively. This makes it an efficient means of communication and, in addition, one that gets
closer to the consumer than all others. If several of his senses are appealed to as well, he can be
persuaded particularly successfully.

Multisensory appeal:
Anyone who approaches consumers via several of his senses attracts greater attention, intensifies
perception and stimulates interest in buying. Packaging that can be felt, smelled and heard as well
as looked at wins the customer's favor. So much so that he is willing to pay a higher price for this

multisensory appeal.
46

Appropriateness:
For the product Packaging is considered to be an important indicator of quality. The quality of the
product therefore has to be communicated by good packaging and not just by promises of quality
made in the text on the packaging. A credible "overall work of art" is created as a result, in which
the contents and the packaging are coherent and the consumer is convinced by their consistency.

Value Packaging:
It is an excellent way to communicate sophistication, class and value. This makes it an ideal
strategic option for expressing premium positioning - as well as being the instrument of choice
when a product needs to be upgraded or a brand needs to be revitalized. Products in classy
packaging are particularly popular presents too.

10 Additional benefits:
Successful packaging not only combines what is pleasant with what is functionally useful but also
provides additional benefits. For example, as a gift or for presentation, with entertaining
components or simply by making it possible to continue using the packaging for something else
after the product has been consumed.

RESEARCH FINDINGS AND ANALYSIS OF DATA

1. Do you identify a brand through its packaging?
47

o Yes
o No

Image is important in our society. The image that brands project is critical to their success, and those
images must be conveyed by packaging-the ultimate touch point for consumer product brands. If the
packaging doesnt appeal to the consumer, why would the brand or product (too much space) appeal.
Consumers identify with the brands that match the perceptions of their lifestyles. The role of the package
designer has expanded from being a researcher, marketer and communicator to that of an image maker.
This may sound simple but it has actually added to the complexity surrounding the development of
successful packaging.
While analyzing the data, I realized that 91.8% of the sample identified a brand through its packaging,
while 8.2% did not.

2
o
o
o

Is your buying decision influenced by packaging?

Often
Sometimes
Never

Stand at the end of an aisle in the supermarket or large retail store. Can you, while scanning hundreds of
items, pick out a few that are instantly recognizable from that vantage point? Now, ask yourself what it is
48

about specific products that make them quickly identifiable from the myriad other products in the retail
environment. There has to be something unique about the packaging of those products that makes them
stand out.
What my survey highlighted was that 9.8% of the people are often influenced by the packaging for
consumer buying, 8.2% are never influenced and 82% are sometimes influenced.

3 Does Packaging influence you to switch from one brand to another?

o Yes
o No

Remember that todays savvy consumer wants to be associated with a certain lifestyle and wants to be
associated with the products that fit that profile. Consumers will be motivated to purchase products that
project the right image for them. Packaging will have to do increasingly more work to sell brand and
product, creating image and consumer perception in the process, as retail environments become more
crowded with offerings. When products meet with consumer expectations, time after time, consumers will
not only become loyal customers, they will generally spread the word about how wonderful these
products are to their circle of family and friends.
However, on the contrary to the above research findings, 50% of the sample does not switch from one
brand to another on account of packaging, while 50% are influenced by packaging to switch from one
brand to another

o
o
o
o

4 What factors according to you describe a good package?

Package should be Protective
Package should be Eco-friendly
Package should be Convenient
All the above

49

While analyzing the results, I found out that 19.7% of the respondents felt that the package should be
protective, 13.1% of the respondents felt that the package should be eco-friendly, 4.9% of the respondents
felt that the package should be convenient and 62.3% respondents said all of the above.
5
o
o
o
o

Which of the following aesthetic factor attracts you towards the purchase of an FMCG

product?
Color, Texture and Contrast
Shape and Size
Cultural References
Emotional Response

Packaging has an important role in marketing. It protects the product and helps in sales promotion. So, the
container or cover, design of packaging, color, size etc. should be suitable to the nature of product. It also
should be convenient, attractive, economical, communicative etc. Only good and effective packaging can
protect the product, keeps safe from declining its quality, it makes adulteration impossible. Good
packaging also increases prestige, brand loyalty and promotes sales.

Majority of the respondents (56.7%) said that color, texture and contrast attracted them towards the
purchase of an FMCG product, 11.7% said shape and size mattered, 3.3% are affected by cultural
references and 3.3% felt an emotional response.

Do you deliberately purchase a product whose package has a reusable value?

50

o Yes
o No

The Indian consumer always wants to make maximum use of the amount that he is spending. Therefore
also, some consumers deliberately purchase a product whose package has a reusable value. However, the
results have shown that majority do not have that thinking in mind.
49.2% respondents deliberately purchase a product whose package has a reusable value, while 50.2%
respondents made no such deliberate purchase.

7 Select the most preferred packaging material that you would opt for:
o Paper
o Glass
o
o
o
o
o

Aluminium
Fiberboard
Plastic
Steel
Any other, Specify

The most widespread types of packaging material are paper, glass, aluminium, fiber board, plastic and
steel.

51

 The use of plastic as packaging material tops the list with 23%, brings so many advantages for
instance plastic is light weighted, long lasting and easily available material. The cost of plastic is a
bit cheaper as compare to aluminum and steel.

Paper is preferred by 41% of respondents. It is one of the most extensively used packaging
materials, because of it being light in weight, cheap in price and easily available.

The use of Glass, as Packaging Material has almost been given up, especially for food items,
clearly indicated by only an 9.8% response.

Aluminium, voted by 8.2% respondents is commonly used in packaging of food items, such as in
cans of soft drinks and in tin packed provisions as foil to protect foodstuff from decomposition by
preventing access of oxygen.

Steel being the least popular with 3.3% is being used as packaging material for foods, beverages
and paints as well as aerosols.

Fiberboard is a paper-based material consisting of a fluted corrugated sheet and one or two flat
linerboards was voted by 9.8% respondents.

o
o
o
o

8 Your attitude towards the new packaging of preserved products

Will always prefer innovative packaging
Does not like the frequent change in packaging
Will prefer unpacked food product
Will prefer hygienic packaging

52

Because packaging helps to control the immediate environment of a food product, it is useful in creating
conditions that extend the storage life of a food. Packaging materials commonly used for foods may be
classified as flexible (paper, thin laminates, and plastic film), semi-rigid (aluminum foil, laminates,
paperboard, and thermoformed plastic), and rigid (metal, glass, and thick plastic). Plastic materials are
widely used in food packaging because they are relatively cheap, lightweight, and easy to form into
desired shapes.

54.1% respondents prefer hygienic packaging for preserved products

37.7% respondents prefer innovative packaging

6.6% respondents dont like frequent changes in the packaging

You change your purchase decision when you see eco-friendly printed on the label of a

product:
o Often
o Sometimes
o Never

Eco-friendly packaging is the development and use of packaging which results in improved sustainability.
This involves increased use of life cycle inventory (LCI) and life cycle assessment (LCA), to help guide
the use of packaging which reduces the environmental impact and ecological footprint.

47.5% respondents sometimes changed their purchase decision when they saw eco-friendly

printed on the label

27.9% respondents never changed their purchase decision when they saw eco-friendly printed on

the label
24.6% respondents often changed their purchase decision when they saw eco-friendly printed on
the label

10 You are willing to pay more for eco-friendly FMCG products:

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o Always
o Sometimes
o No

The process of engineering more environmentally acceptable packages can include consideration of the
costs. Some companies claim that their environmental packaging program is cost effective. Some
alternative materials that are recycled/recyclable and/or less damaging to the environment can lead to
companies incurring increased costs. It is common that when any product begins to carry the true cost of
its production (producer pays, producer responsibility laws, take-back laws), there may be an expensive
and lengthy process before the new forms of packaging are deemed safe to the public, and these
incremental costs are ultimately passed on to the ultimate buyer.

47.5% respondents are sometimes willing to pay more for eco-friendly FMCG products

32.8% respondents are always willing to pay more for eco-friendly FMCG products

19.7% respondents are not willing to pay more for eco-friendly FMCG products

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RECOMMENDATIONS
-

Product packaging is valuable for brand equity, product differentiation, market segmentation, new
product introduction, pricing, promotion etc. Brand name using plan implementation must be
effective in the units.

All the marketing units must pay attention towards good packaging as people identify a brand
through its packaging; it induces them to purchase FMCG products and it also leads to shifting
customer loyalty. They accept that poor packaging is one of the causes of product failure in the
market. It is necessary to set the packaging standard and to implement accordingly for better
protection and promotion of a product.

The package must be of such material that the customer prefers and which has a reusable value to
the end customer.

New consumer product manufacturers mostly use the package as a communication medium. It
describes where it was made, when it was made, what it contains, how to use it etc. Furthermore
they believe that the consumers are properly guided by label to use the products.

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The eco-friendly label has an immense value and must be highlighted while promoting the
product in the market. There is a section of society that is environment conscious and would not
mind paying a higher price for products with an eco-friendly package.

CONCLUSION
The world is rapidly turning into a global village and with the passage of time business is being
expanded; and the importance of using correct type of packaging material has become essential.

Packaging is rightly called an art because packaging material is first the introduction of any
product to the consumers, as well as it provides a physical blockade between a product and the
surroundings by maintaining hygiene and reducing the risk of product wastage due to impurity.
Packaging is indispensable for a safe distribution, storage, sale, and use.

Packaging can be described as a coordinated system of preparing goods for safe, efficient and
cost-effective transport, distribution, storage, retailing, consumption and recovery, reuse or
disposal combined with maximizing consumer value, sales and hence profit.

Packaging is a tool to form good relationship between Retailers and Food Manufacturers because
both work more closely to create products designed for current lifestyles, based on the latest
technology. A Retailer, having direct link with end users, can easily be well aware of the
perception of consumers. On the other hand manufacturers modify packaging style and product
quality on the basis of information provided by retailers.

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Numerous market trends suggest a growing role of packaging as a brand communication vehicle
that helps in reducing expenses on traditional brand building mass media advertising. Importance
of the role of packaging is acknowledged round the globe for brand building and consequently the
expenses on advertisement have been found to be reduced. Once a brand becomes familiar and
captitalizes on factors such as Color, Texture and Contrast, Shape and Size, Cultural References,

Emotional Response companies do not have to spend a huge amount on advertising because
consumer will reach the brand automatically.

Packaging attracts and sustains attention, helping consumers identify with the images presented
and therefore induce them to purchase the product or shift brand loyalty.

BIBLIOGRAPHY
RESEARCH PAPERS:
-

Sahil Mahajan, Rahul O Vaishya, Anurag Gupta, Veejhay Dholle "Role of Packaging for
Enhancing the Sales Appeal" Global Research Analysis International July 2013

WEB LINKS:

http://www.ukessays.com/essays/business/the-relationship-between-different-packagingcharacteristics-business-essay.php#ixzz2HanAaW4e

www.marketinglord.blogspot.com

www.packaginghub.org

http://www.foodproductiondaily.com/Packaging/Effective-packaging-grabs-snackers

http://www.britannica.com/EBchecked/topic/212684/food-preservation/50583/Packaging
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http://blog.hubspot.com/marketing/why-people-buy-factors-influence-purchase-descision

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