EXECUTIVE SUMMARY

Hindustan Unilever Limited (HUL) is India’s largest Fast Moving

Consumer Goods Company, touching the lives of two out of three

Indians with over 20 distinct categories in Home & Personal Care

Products and Foods & Beverages. They endow the company with a

scale of combined volumes of about 4 million units and sales of Rs.10,

000 crores.

HUL is also one of the country’s largest exporters; it has been

recognized as a Golden Super Star Trading House by the Government
of India. Hence, research aims is that to study the existing marketing
practices, emerging marketing plans and understanding companies
business strategy with its profile. The main recommendations have
been made on the addressing of the advertising message to the
customers. An attempt has been made to formulate the
communication in a way to build it on a platform of the basic need for
buying HUL products. In another recommendation the suggestions
towards better dealer interest in HUL products has been given a
chance.
 HISTORY

Over 100 years' link with India. In the summer of 1888, visitors to the

Kolkata harbor & noticed crates full of Sunlight soap bars, embossed

with the words "Made in England by Lever Brothers". With it, began an

era of marketing branded. Fast Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous brands like
Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous
Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan

Vanaspati Manufacturing Company, followed by Lever Brothers India

Limited (1933) and United Traders Limited (1935). These three

companies merged to form HUL in November 1956; HUL offered 10%

of its equity to the Indian public, being the first among the foreign

subsidiaries to do so. Unilever now holds 51.55% equity in the

company. The rest of the shareholding is distributed among about

380,000 individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By

1903, the company had launched Red Label tea in the country. In

1912, Brooke Bond & Co. India Limited was formed. Brooke Bond
joined the Unilever fold in 1984 through an international acquisition.

The erstwhile Lipton's links with India were forged in 1898. Unilever

acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was

incorporated.

Pond's (India) Limited had been present in India since 1947. It joined

the Unilever fold through an international acquisition of Chesebrough

Pond's USA in 1986.

Since the very early years, HUL has vigorously responded to the

stimulus of economic growth. The growth process has been

accompanied by judicious diversification, always in line with Indian

opinions and aspirations.

The liberalization of the Indian economy, started in 1991, clearly

marked an inflexion in HUL's and the Group's growth curve. Removal

of the regulatory framework allowed the company to explore every

single product and opportunity segment, without any constraints on

production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and

mergers. In one of the most visible and talked about events of India's
corporate history, the erstwhile Tata Oil Mills Company (TOMCO)

merged with HUL, effective from April 1, 1993. In 1995, HUL and yet

another Tata company, Lakme Limited, formed a 50:50 joint venture,

Lakme Lever Limited, to market Lakme's market-leading cosmetics

and other appropriate products of both the companies. Subsequently

in 1998, Lakme Limited sold its brands to HUL and divested its 50%

stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark

Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies

Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in

Nepal, Nepal Lever Limited (NLL), and its factory represents the

largest manufacturing investment in the Himalayan kingdom. The NLL

factory manufactures HUL's products like Soaps, Detergents and

Personal Products both for the domestic market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and

alliances on the Foods and Beverages front. In 1992, the erstwhile

Brooke Bond acquired Kothari General Foods, with significant interests

in Instant Coffee. In 1993, it acquired the Kissan business from the UB

Group and the Dollops Icecream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma,

two plantation companies of Unilever, were merged with Brooke Bond.

Then in July 1993, Brooke Bond India and Lipton India merged to form

Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and

ensuring synergy in the traditional Beverages business. 1994

witnessed BBLIL launching the Wall's range of Frozen Desserts. By the

end of the year, the company entered into a strategic alliance with the

Kwality Icecream Group families and in 1995 the Milkfood 100%

Icecream marketing and distribution rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The

internal restructuring culminated in the merger of Pond's (India)

Limited (PIL) with HUL in 1998. The two companies had significant

overlaps in Personal Products, Specialty Chemicals and Exports

businesses, besides a common distribution system since 1993 for

Personal Products. The two also had a common management pool and

a technology base. The amalgamation was done to ensure for the

Group, benefits from scale economies both in domestic and export

markets and enable it to fund investments required for aggressively

building new categories.

technology in all its operations. The Hindustan Lever Research Centre

(HLRC) was set up in 1958, and now has facilities in Mumbai and

Bangalore. HLRC and the Global Technology Centres in India have over

200 highly qualified scientists and technologists, many with post-

doctoral experience acquired in the US and Europe.

HUL believes that an organisation's worth is also in the service it

renders to the community. HUL is focusing on health & hygiene

education, women empowerment, and water management. It is also

involved in education and rehabilitation of special or underprivileged

children, care for the destitute and HIV-positive, and rural

development. HUL has also responded in case of national calamities /

adversities and contributes through various welfare measures, most

recent being the village built by HUL in earthquake affected Gujarat,

and relief & rehabilitation after the Tsunami caused devastation in

South India.

Over the last three years the company has embarked on an ambitious

programme, Shakti. Through Shakti, HUL is creating micro-enterprise

opportunities for rural women, thereby improving their livelihood and

the standard of living in rural communities. Shakti also includes health

and hygiene education through the Shakti Vani Programme, and

creating access to relevant information through the iShakti community

portal. The programme now covers about 50,000 villages in 12 states.

HUL's vision is to take this programme to 100,000 villages impacting

the lives of over a 100 million rural Indians.

HUL is also running a rural health programme – Lifebuoy Swasthya

Chetana. The programme endeavtheirs to induce adoption of hygienic

practices among rural Indians and aims to bring down the incidence of

diarrhoea. It has already touched 70 million people in approximately

15000 villages of 8 states. The vision is to make a billion Indians feel

safe and secure. If Hindustan Lever straddles the Indian corporate

world, it is because of being single-minded in identifying itself with

Indian aspirations and needs in every walk of life.

 HISTORY OF HUL

 1888- Lever brothers came to India Sunlight soap introduced in India.

 1895-Lifebuoy soap launched.

 1905-Lux soap introduced in India.

 1913-Vim scouring powder introduced.

1930-Unilever is formed on January 1st through merger of Lever Brother and

Margarine Unite.

 1931-Company registered on November 27th ; Sewri factory site bought.

 1932-Hindustan Vanaspati Manufacturing Vanaspati manufacture starts at Sewri 

1947- Pond’s Cold Cream launched.

 1959-surf launched.

 1969-RIN bar launched; Braun coffee launched.

 1971-Climic shampoo launched.

 1978-Fair & Lovely skin cream launched.

 1993-The erstwhile Brooke Bond India acquires the kissan brand from the United
Breweries Group, giving HLL an entry into the foods business.

 1994-Tata oil Mills Company merges with HLL, the largest merger in Indian
corporate history.

 1994-Brooke Bound India and Lipton India merged to form Brooke Bond Lipton
India Limited.

 1995-Kissan Annapurna salt is launched.

 1996-Brooke Bond Lipton India Limited merges with HLL.

 1996-Lakme Lever Limited, a joint venture with Lakme limitedis formed

  1998-pond’s India limited merges with HLL.

 1998-HLL acquires 100% shareholding of Lakme in Lakme lever limited.

 2001-HLL identifies 35 ‘power’ brands form a total of 110 brands, to be Be pushed

for higher growth.

 2002-Modern becomes a wholly owned subsidiary of HLL.

 2007-Name formally changed to Hindustan Unilever Limited.

17th October 2008-HUL Completed 75 years of corporate existence in India.

 October 2013-Mr.Sanjiv Mehta (53) joined the Board of the Company.  October

17th –HUL Completed 80 years.

PRODUCT DECISION

INTRODUCTION

M arketing starts w ith the product since it is w hat an organization has to offer its target m arket .
T he product offering , the heart of a firm ’s entire m arketing effort , is usually the starting point in
creating a m arketing m ix . A m arketing m anager cannot determ ine a price , design a prom otion
strategy , or create a distribution channel until the firm has a product to sell . M oreover , an excellent
distribution channel , a persuasive prom otion cam paign and a fair price have no value if they are
associated w ith a poor or inadequate product offering . A n organization attem pts to provide solutions
to a target m arket ’s problem s . T hese solutions include tangible or intangible (or both ) product
offerings m arketed by an organization.
Product decisions need to be m ade after researching the target m arket and w ith the needs of that
m arket in m ind . Q uestions like , “ W hat does the custom er w ant and need ?” and “ H ow w ill the
custom er use it?” are exam ples of the answ ers required to m ake good product decisions . “W hat does
it look like ?” and “H ow w ill it be unique ?” are som e other great questions . T he m arket m anager is
going to have to m ake decisions about things like: quality, design, sizes,
w arranties, returns, brand nam e, features, functionality, colour, safety, repairs, support, styling,
accessories and m uch m ore.T hese are not static decisions because every product is subject to the
product life cycle that includes introduction, grow th, m aturity and decline stages that
w ill require m odifications to the product decisions to rem ain com petitive and optim ize
profitability at each stage.

Product is one w hich has the capacity to satisfy our w ants /needs . A product is the item
offered for sale . A product can be a service or an item . It can be physical or in virtual or cyber
form . E very product is m ade at a cost and each is sold at a price . E ach product has a useful life
after w hich it needs replacem ent , and a life cycle after w hich it has to be re -invented . In
m a rk etin g , a p ro d u ct is anything that can be offered to a m a rk et that m ight satisfy a w ant or
need . In reta ilin g , products are called merchandise . In m anufacturing , products are bought as
ra w m a teria ls and sold as fin ish ed g o o d s . O ne can say a product is a good , service , or idea
consisting of a bundle of tangible and in ta n g ib le attributes that satisfies consum ers and is received
in exchange for m oney or som e other unit of value.

Definitions of Product:

1. Philip Kotler:
“Product is anything that can be offered to someone to satisfy a need or a want.”
2. William Stanton:
“Product is complex of tangible and intangible attributes, including packaging, colour, price, prestige,
and services, that satisfy needs and wants of people.”
3. W. Alderson:
“Product is a bundle of utilities, consisting of various product features and accompanying services.”
4. We can also define the term as:
Product is a vehicle or medium that delivers service to customers.

T he products are classified into tw o m ajor groups nam ely C onsum er G oods and Industrial
G oods.

(1) CONSUMER GOODS

Products w hich are for direct consum ption or w hich require no further processing are
know n as consum er goods . A lternatively called final goods , consum er goods are the end
result of production and m anufacturing and are w hat a consum er w ill see on the store shelf .
C lothing , food, autom obiles and jew ellery are all exam ples of consum er goods. B asic m aterials
such as copper are not considered consum er goods because they m ust be transform ed into
usable products . So it can be said that the C o n su m er g o o d s are g o o d s that are ultim ately
consum ed rather than used in the production of another g o o d .
C onsum er products can be further classified into follow ing categories.
A. ON THE BASIS OF DURABILITY

(i) Durable Products

(a ) T he goods w hich are used for a longer period of tim e are know n as durable goods .
T hese goods are generally of high price and require after sale service and prom otion tools for
sale. examples:T eley ism n , refrig era to r, fa n s, ca rs, etc.

(ii) Non-Durable Products

G oods w hich are consum ed in short period of
products are generally sold at low price and w ith
have short life . T hey m ust be consum ed w ithin
E x a m p le : m ilk , cheese , vegetables , etc . M ost
consum ed or used in three years or less.
tim e are called non -durable goods . T hese
few er profit m argins .N on durable goods
short tim e after they are m anufactured .
non - durable goods are expected to be

(iii) Services
Services refer to benefits or satisfactions w hich are offered for sale.
M a in fea tu res o f serv ices:
1. Sendees are intangible in nature.
2. It is inseparable from its source.
3. It cannot be stored.
4 . T hese are heterogeneous in nature i.e ., services are highly variable as the
quality and type of service vary from person to person w ho perform s it.

B. CLASSIFICATION BASED ON CONSUMER BUYING BEHAVIOUR AND

ATTITUDE
U nder this classification there are three types of goods:

(i) Convenient Goods

T he item s w hich are bought frequently , im m ediately and w ith m inim um shopping efforts
are convenience goods . T hese include candy , ice - cream , cold drinks , cigarettes ,
m agazines , m edicines , salt , m atch box , bread etc . T he shops w hich keep the convenience
goods are called convenience stores. O ften convenient goods are non - durable goods.

Features of Convenient Goods

1. T hese can be purchased w ith m inim um shopping efforts.
2. T hese products have regular and continuous dem and.
3. T hese units are generally of low prices.
4. T hese have standardised price,
5. T here is high com petition in these goods.
6. Sales prom otion incentives are generally used to increase the sale of these products.

(ii) Shopping Goods

S h o p p in g is th e a ctiv ity o f ex a m in a tio n a n d selectio n o f th e g o o d s o r serv ices fro m reta ilers
 w ith the intent to purchase at that tim e . Shopping goods are those goods w hich are
purchased by the consum er only after com paring quality , price , suitability and style such
as furniture , shoes , readym ade garm ents , etc . So these goods or services are bought after
som e shopping efforts i.e., search or com parison of goods. M ost of the shopping goods are
durable goods.

Features of Shopping Goods

1. T hese are generally durable goods.
2. Prices of such goods are generally high.
3. C ustom ers generally com pare these goods and then buy such goods.
4. R etailers play an im portant role in selling shopping goods.
5. People plan the buying of such goods.

(iii) Speciality Goods

Speciality G oods have unique characteristics for w hich a significant group of buyers are
habitually w illing to m ake a special purchasing effort . T hese goods are of higher value (
costly ) and are not purchased frequently . E x a m p le : air conditioners , refrigerators , T V , C ars,
etc . T hese are the goods of unique nature and hold special im portance for custom ers . T hese
can be low priced or high priced for exam ple , designerclothes , and cars such as M ercedes
etc . T he rare arts collections , antiques , prestige brands , style goods , autom obiles etc . are
som e other exam ples of goods and the particular hotel , restaurant , hair salon , spa & resorts
are exam ples of services. T he com parison factor is absent in specialty goods.

Features of Speciality Goods

1. D em ands for such products are lim ited.
2. T hese products are of high price.
3. T hese products are available at few selected places only.
4. T hese products are sold as a result of aggressive prom otion techniques.
5. A fter sale service is very im portant in these products.

(2) INDUSTRIAL GOODS

Industrial goods are those goods w hich are used by the m anufacturers for further
production of goods . Som e exam ples are M achinery , m anufacturing plants , m aterials , and
other goods or com ponent parts for use or consum ption by other industries or firm s .
D em and for industrial goods is usually based on the dem and for consum er goods they help
to produce (called derived dem and). T hey are classified as (1 ) P ro d u ctio n g o o d s, that enter
the production of a final p ro d u ct , such as the raw m aterials and com ponent parts, or (2 )
S u p p o rt g o o d s, that assist in the production process, such as fixed equipm ent and m achinery ,
instrum ents, jigs, tools, etc.
In d u stria l g o o d s m ay be classified as -
1 . R a w m a teria ls : R aw m aterials include products w hich require processing
E xam ple: cotton, steel, class.
2 . E q u ip m en ts : E quipm ents include installations such as boilers , lathes ,
accessory equipm entssuch as w elding equipm ent, tools, etc.
 3. F a b rica ted M a teria ls : T hey are part of finished
goods and are directly
used in the m anufactured goods like batteries, spark plugs, types etc.
4. O p era tin g su p p lies : T hese
supplies are essential to the business
operations such as fuel, oil, coal, lubricants, etc.

Features of Industrial Products

1. N um bers of buyers of industrial products are lim ited as com pared to
consum er products.
2. Shorter channel of distribution is used for sale of industrial products as
there are lim ited buyers.
3. G enerally the dem and for industrial products is not scattered but is concentrated
at a fixed geographical location.
4 . Industrial products are dem anded to produce consum er products that is w hy it is
called derived dem and , as dem and of sugarcane depends upon the dem and of
sugar in the . country.

5. Industrial products are produced as a result of com plex process so there is m ore '
technical consideration of these products.
6 . Som e industries buy product from a com pany w ith intention of selling the
finished goods to the sam e com pany . For exam ple the M aruti C o . m ay buy tyres
from M R F C om pany and tyre C om pany m ay in turn buy car from M aruti C o.
7 . N ow adays instead of buying , industrialists prefer to take fixed assets on lease ,
because of high prices of these products.

Product line is a group of related products m anufactured by a single com pany . It is a

products that are closely related to each other by function , custom er group,
price range . T hey are closely related because they function in a sim ilar w ay , are sold to the
sam e consum er groups , are m arketed through the sam e type of outlet or fall w ithin given
price range . F o r ex a m p le , a cosm etic com pany 's m akeup product line m ight include
foundation , concealer , pow der , blush , eyeliner , eyeshadow , m ascara and lipstick products
that are all closely related . A product line is typically m anaged by a p ro d u ct lin e m a n a g er ,
w ho m ay supervise several p ro d u ct m a n a g ers w ho are responsible for individual products in
the line . Product line m anagers usually have the responsibility of determ ining w hether the
product line should expand and w hether products should be rem oved from the line. T hey w ill
also analyze the effects of the product expansion or contraction on the profitability of other
products in the line . O ne com pany can offer m ore than one product Jine . T his helps to
enhance the business by adding item s to the product line w hich is already established . A s
people are already fam iliar w ith the brand and there are m ore chances of a purchase.

Characteristics
1. Product line consists of closely related item s.
2. T here is difference in the price of item s.
 i

3. T he purpose of offering sim ilar item s in each of the product line m ay be to a ttra ct
custom ers by offering varieties of goods to them .
4. T he product item s in the product line have m ore or less sam e utility.
5. T hey are sold to sam e consum er group.
6. T hey can be m anufactured using sam e technology.
7. T he product item s are distributed through the sam e distribution channels . Product
item s are various varieties offered w ithin the product line , w hich are sim ilar in one or
other w ays.

PRODUCT MIX
Product m ix consists of various decisions related to product . Product is the basic
elem ent of m arketing m ix because all other elem ents are required only w hen there is
product . Product m ix , also know n as product assortm ent , refers to the total num ber of
product lines that a com pany offers to its custom ers . H ere , product includes both goods and
services . M arketer can satisfy needs and w ants of consum ers by product . Product is the
vehicle, m edium , or m eans by w hich consum ers can satisfy their needs. For exam ple a sm all
com pany m ay sell m ultiple lines of products . Som etim es , these product lines are fairly
sim ilar , such as dish w ashing liquid and bar soap , w hich are used for cleaning and use
sim ilar technologies . O ther tim es , the product lines are vastly different , such as diapers and
razors . T he four dim ensions to a com pany 's product m ix include w idth , length , depth and
consistency.
P ro d u ct m ix co n cern s w ith fo llo w in g d ecisio n s:
1. D evelopm ent and introduction of new products.
2. M atching the products w ith needs and w ants of target consum ers.
3 . M odifications ( in term of qualities , features , and perform ance ) on existing
products.
4. * Product-related strategies including branding , packaging , labeling , colour,
w eight, grading, etc.
5 . Product line decisions including different varieties or m odels , and product m ix
decisions including w idth , depth , length , and consistency .
6 . Product -related services like after -sales services , hom e delivery , guarantee ,
w arrantee, and dem onstration.
7. Study of com petitive (or com parative) advantages of products.
8. Product life cycle, relevant strategies for each of the stages of product life cycle,
and consumer adoption process.
1 . P ro d u ct D esig n : T he m arketingdecisions start w ith designing the product .
Products have to be designed i.e. planning of the form , colour , appearance so
as to enhance their utility , attractiveness , safety and ultim ately increasing their
sales volum e.
2 . P ro d u ct P a ck a g e : Package is the containing or w rapper used to cover the product .
D eciding about the product package is im portant because it protects the products , provides
convinience to the custom ers , increases econom y and is also a source of com m unication to
the consum ers regarding the product.
 3 . P ro d u ct q u a lity : C ertain standards or grades of quality are established for the
product . T hese standards are set in term s of colour , texture , w eight , size , appearance
and other physical features of the product.
4 . P ro d u ct la b elin g : A label m eans a strip /piece of paper giving detail fixed on a
thing . L abel is a paper or plastic piece that gives detail about nam e , use , instruction ,
cant features of the product , the process of deciding the label for the product is called
labelling . L abels are fixed to the product to identify them from other products and to
describe their ingredients, quality, quality and other characteristics.
5 * P ro d u ct b ra n d in g : A brand is a nam e , sym bol or sign by w hich a product can
be distinguished from other products available in the m arket . E x a m p les : C olgate
toothpaste, close up, are all different brands of toothpastes.
6 . P ro d u ct R ela ted D ecisio n s : A ddition , D iversification , sim plification
are
im portant decisions of m arketing to decide w hether a new line of product has to be
added (know n as product addition ), w hether the product line has to be changed entirely
(diversity the business ) or w hether a firm has to delete a line of product w hich is
not profitable for the business (Sim plification of the product).
7 . P ro d u ct R ela ted serv ices : It includes after sale services , hom e delivery ,
guarantee, w arrant and dem onstration.
8 . S tu d y o f co m p etitio n : It is necessaryto study the various com petitors of the
sam e product (a firm is m anufacturing ) so as to analyse its ow n products and m ake
im provem ents, if required to cater to the needs of the target m arket.
9 . P ro d u ct life cy cle : D ecision to be taken regarding form ulation of strategies
in the different stages of product life cycle - introduction , grow th , m aturity , and
declive.

FACTORS AFFECTING THE PRODUCT MIX

P ro d u ct m ix is ex p a n d ed , co n tra cted , m o d ified d ep en d in g u p o n th e fo llo w in g

fa cto rs:
1 . P ro fita b ility : M odifications in the product m ix are m ade w ith respect to
m axim ize the profits of the com pany . A com pany m ay add or delete a product
line or any item of the product line depending on the situation w hether it is
running into profits or losses.
2 . O b jectiv es a n d p o licy o f th e co m p a n y : C om pany fram es its product m ix
according to the objectives and policies of the com pany.
3. P ro d u ctio n ca p a city : Production capacity determ ines a com pany ’s product m ix .
A com pany w ill design its product m ix in a w ay that there is optim um use of
production capacity.
4 . D em a n d : Product m ix decisions are taken on the basis of studying consum er
dem ands , fashion , preferences , needs , interest so that goods are produced
according to consum er satisfaction , A com pany w ill try to include those
products in its product m ix w hich are dem anded by the target m arket.
5 . P ro d u ctio n co st : Product m ix decisions also depend upon the production
costs . C om pany w ill prefer to m ake those products w hich are w ithin its budget.
E ven if the com pany w ants to add a product line or any item of the product line,
it w ill have to see its resources and the cost of m aking the product to take any
kind oftlecision.
 A brand is a nam e, sym bol or sign by w hich a product can be distinguished from other
products available in the m arket. E xam ples: C olgate toothpaste, close up, C ibaca are all
different brands of toothpastes. T he process involved in creating a unique nam e and im age for
a product in the consum ers' m ind, m ainly through advertising cam paigns w ith a consistent
them e. B randing aim s to establish a significant and differentiated presence in the m arket that
attracts and retains loyal custom ers. It
• D elivers the m essage clearly
• C onfirm s your credibility
• C onnects your target prospects em otionally
• M otivates the buyer
• C oncretes U ser L oyalty
T o succeed in branding the com pany m ust understand the needs and w ants of the custom ers
and prospects. T he com pany can do this by integrating the brand strategies through the
com pany at every point of public contact. T he nam e of a com pany or its short form like ‘coca cola’
brand used by the coca cola com pany doesn’t only represents com pany’s face to the external
w orld but also how that nam e is usually expressed through a logo and now that nam e and logo
collectively be used in com pany’s com m unications.T he com ponents of brand that takes com pany
to heights are brand personality, brand attributes, core value (com pany’s value statem ent),
brand characteristics, brand developm ent strategy (w hy, w hat, w ho and w here of brand) and an
efficient brand m anagem ent strategy that keeps pace w ith the m erging opportunities in w hich
the brand w ill participate. B rands have certain recognizable elem ents that differentiate a brand
from its com petitors.
T hese are : B rand N am e, L ogo, Sign, T radem ark etc.

MEANING
Packing and packaging are closely related concepts though being totally different. T he task
of -keeping, packing, w rapping, or binding com m odity in sack, cloth, paper, box, can, bottle etc.
according to the nature of product is called packing. Packing is m eant for the basic protection of
the goods like dam age, leakage, pilferage etc. w hile packaging is m ore about the design, the
appearance, colours as perceived by the consum ers. B ut the w ord packaging does not lim it the
m eaning to only packing, w rapping or binding in anything, rather it also w orks for sales
prom otion. Packaging is also concerned w ith the m atter how to put or keep a com m odity in a
container, box or can in an attractive, safe and com fortable m anner. It is m ostly done by factory
ow ner w ho have to send products in bulk. Packaging refers to placing inside individual products
into a carton using w rapping m aterials to protect products from any dam age. Packaging plays a
crucial role in attracting custom ers and in their decision to purchase a product. E x: A m ulT aaza
m ilk is stored in tetrapacks to preserve them for longer periods as m ilk is a product that perishes
very fast. T he tetrapacks provide the freshness needed to keep the m ilk in good condition w hile
 A label m eans a strip /piece of paper giving detail fixed on a thing . L abel is a paper or
plastic piece that gives detail about nam e , use , instruction , cant features of the product , the
process of deciding the label for the product is called labelling . If inform ation about the
product is printed on the package or pasted on it, then it is called label . A label can be printed
statem ent or w ritten in paper , or it m ay be unprinted piece or leather piece . A label is a carrier
of inform ation about the product. T he attached label provides custom ers w ith inform ation to
aid their purchase decision or help im prove the experience of using the product.
L abels can include:
• C are and use of the product
• R ecipes or suggestions
• Ingredients or nutritional inform ation
• Product guarantees
• M anufacturer nam e and address
• W eight statem ent
• Sell by date and expiration dates
• W arnings
T he label is the prim ary point of contact betw een the producer and the purchaser and should
be thought of as an integral part of the producer 's m arketing plan . It is not just a piece of paper
stuck onto the container but should be an expression of a num ber of im portant decisions that have
been m ade about m arketing.

T he custom ers can com pare the products and know about the quality of the product from
the label pasted , put or printed on the package . L abel provides inform ation about the nam e ,
feature , quality , price , utility , nature , ingredients etc . of the product and also m anufactured
date , place and producer 's identification . It also gives instruction how to use and handle the
product. In the label used on m edicine package, m anufactured date, expiry date, com position of
the ingredients , using instruction etc . are m entioned . C ustom ers can get inform ation about
the ingredients or com position used in m anufacturing the m edicine from label on the bottle or
packet. In the lack of proper inform ation , the custom ers hesitate to buy any products. L abel
gives inform ation or answ ers of all possible questions that the custom ers m ay raise about the
product. It also m entions , m axim um retail prices of the products . So , labeling is an
im portant part of branding and m arketing.