Table of Contents

Contents
Pages
I. Preface......................................................................................................................................1
II. Product Planning......................................................................................................................2
2.1. What is Product Planning?................................................................................................2
2.2. Objectives of Product Planning.........................................................................................3
2.3. New Product Strategy........................................................................................................3
2.4. Product Planning Process..................................................................................................4
2.4.1. Identify Opportunities..............................................................................................4
2.4.2. Evaluate and Prioritize Projects...............................................................................5
2.4.3. Allocate Resources and Plan Timing.......................................................................6
2.4.4. Complete Pre-Project Planning................................................................................7
2.4.5. Product Development Process.................................................................................7
2.5. Causes of New Product Failure.........................................................................................8
2.6. Needs of Research.............................................................................................................9
III. Branding.................................................................................................................................10
3.1. What is Branding?...........................................................................................................10
3.1.1. All Characteristics of Brand...................................................................................10
3.1.2. The Brand Identity.................................................................................................10
3.1.3. The Audience’s Ongoing Perception of the Brand................................................11
3.2. Elements of Branding......................................................................................................11
3.2.1. Brand Name...........................................................................................................12
3.2.2. Trade Name............................................................................................................12
3.2.3. Brand Mark and Trade Character...........................................................................12
3.2.4. Trademark..............................................................................................................12
3.3. Types of Branding...........................................................................................................13
3.3.1. National Brands......................................................................................................13
3.3.2. Private Distributor Brands.....................................................................................13
3.3.3. Generic Brands.......................................................................................................14
3.4. Generating Brand Names.................................................................................................14
3.5. Branding Strategies.........................................................................................................14
3.5.1. Brand Extension.....................................................................................................14
3.5.2. Brand Licensing.....................................................................................................15
3.5.3. Mixed Brands.........................................................................................................15

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 3.5.4. Co-Branding...........................................................................................................15
3.6. Importance of Brands in Product Planning......................................................................15
3.7. Difficulties of Creating or Maintaining a Brand.............................................................16
IV. Packaging...............................................................................................................................18
4.1. Definition.........................................................................................................................18
4.2. Functions of Packaging...................................................................................................19
4.3. Types of Packaging.........................................................................................................20
4.3.1. By Function............................................................................................................20
4.3.2. By Type..................................................................................................................20
4.4. Packaging Design Considerations...................................................................................21
4.4.1. Identifying the Requirements of the Product.........................................................21
4.4.2. Performance Criteria..............................................................................................22
4.4.3. The Time Targets...................................................................................................22
4.4.4. Resource Available and Cost targets......................................................................22
4.5. Contemporary Packaging Issues......................................................................................22
4.5.1. Aseptic Packaging..................................................................................................22
4.5.2. Environmental Packaging......................................................................................22
4.5.3. Cause Packaging....................................................................................................23
4.6. Future Packaging.............................................................................................................23
4.6.1. Environment...........................................................................................................23
4.6.2. Globalization..........................................................................................................24
4.6.3. Energy....................................................................................................................24
4.6.4. Legal Regulations..................................................................................................24
4.6.5. Technology.............................................................................................................24
V. Labeling..................................................................................................................................25
5.1. What is Label?.................................................................................................................25
5.2. Kinds of Label.................................................................................................................25
5.3. Labeling Law...................................................................................................................25
VI. Conclusion..............................................................................................................................26
VII. References..............................................................................................................................28

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I. Preface

Business organizations made important decisions in the development and marketing of

individual products and services. These decisions are about product attributes, branding,
packaging, labeling, and product support services. Companies have to develop strategies for the
items of their product lines. Marketers make individual product decisions for each product
including: product attributes decisions, brand, packaging, labeling, and product-support services
decisions. Product attributes deliver benefits through tangible aspects of the product including
features, & design as well as through intangible features such as quality and experiential aspects.

A brand is a way to identify and differentiate goods and services through use of a name or
distinctive design element, resulting in long-term value known as brand equity. The product
package and labeling are also important elements in the product decision mix, as they both carry
brand equity through appearance and affect product performance with functionality.

However, before a product development project is formally approved and what product, with
what branding, packaging and labeling styles to be produced decided, business organizations
undertake the product planning process before substantial resources are applied, and before the
larger development team is formed.

Based on this flow concept, our paper is composed of four parts: Product planning, branding,
packaging, and labeling. At the very beginning of this paper, we have tried to discuss product
planning which is the stepping stone of product development. Under product planning definition
of product planning, its objectives, product planning process, causes of new product failure, and
the need of further research is pointed out and discussed in detail.

The next topics composed of product features like branding, packaging and labeling, which are
crucial elements of decisions of product planning. Under these topics, we have also tried to
define each term, identify their types; importance and other related topics have been discussed.

In order to prepare this paper, we have tried to refer various collections of books and surf
different websites. Since the topics are contemporary and broad in nature, we have also tried to

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make brief and interesting by supporting with examples as possible. As a result, we hope that the
paper will give important notes regarding the topics.

II. Product Planning

II.1. What is Product Planning?

Product planning is an activity that considers the portfolio of projects that an organization might
pursue and determines what subset of these projects will pursued over what time period. The
product planning activity ensures that product development projects support the broader business
strategy of the company.

Product planning is the starting point of entire marketing program in a firm. A successful product
starts with a good plan. It involves all activities which enable producers and middlemen to
determine what should constitute a company's line of products. Product planning decides the
nature and other related aspects of the articles produced and sold.

Product plan identifies product portfolio & development schedule. It considers, analyzes, and
tries to answer the following interrelated questions like: -

 What products should we develop?

 How to produce and what features should the product encompasses?
 When should we release the product?
 What mix of products should we make?
 What market segments should we target?
 What are our manufacturing goals?
 What new technologies go into the product?
 What are our financial targets?
 What budget and schedule should we target?

The product plan is regularly updated to reflect changes in the competitive environment, changes
in technology, and information on the success of existing products. Product plans are developed
with the company’s goals, capabilities, constraints, and competitive environment in mind.

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II.2. Objectives of Product Planning

Business organizations typically plan products many years in advance. Product planning ensures
that products support overall business strategy. It identifies the portfolio of products to be
developed by the organization and the timing of their introduction to the market.

Product planning identifies the portfolio of projects to be pursued by the business organizations.
Product Planning: -

 Establishes which market segments to target

 Determines which product development projects will be undertaken
 Decides on the mix of new products vs. upgrades
 Determines the timing and sequence of the projects

II.3. New Product Strategy

In developing new products, the first question a marketing manager must ask is, in how many
ways can a product be new? C. Merle Crawford developed a definition of new products based on
the following five different categories:

i. New-to-the-world products: - Products that are inventions, for example, Polaroid camera, the
first car, rayon, the laser printer, in-line skates.
ii. New category entries: - Products that take a firm into a category new to it. Products are not
new to the world; for example, Classy packed water for Moha Soft Drink Company.
iii. Additions to product line: - Products that are line extensions, flankers, and so on, to the firm’s
current markets, for example, if Oromia International Bank S.C. starts ATM service which is
not new for the market but for the company, it can be considered as new category entry.
iv. Product improvements: - Current products made better; virtually every product on the market
has been improved, often many times.
v. Repositioning: - Products that are retargeted for a new use or application; a classic case is
Arm & Hammer baking soda, which was repositioned several times as drain deodorant,
refrigerator freshener, toothpaste, deodorant, and so on.

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II.4. Product Planning Process

The activities of selecting promising projects and allocating resources are inherently iterative.
The realities of schedules and budgets often force a reassessment of priorities and further
refinement and culling of potential projects. The product plan is therefore reevaluated frequently
and should be modified based on the latest information from development teams, research
laboratories, production, marketing, and service organizations.

II.4.1.Identify Opportunities
The planning process begins with the identification of product development opportunities. Such
opportunities may involve any of the four types of projects defined earlier. This step can be
thought of as the opportunity funnel because it brings together inputs from across the enterprise.
Ideas for new products or features of products may come from several sources like

 Marketing and sales personnel.

Research and technology development organizations.
Current product development teams.
Manufacturing and operations organizations.
Current or potential customers.
Third parties such as suppliers, inventors, and business partners.

When employed actively, the opportunity funnel collects ideas continuously, and new product
opportunities may arise at any time.

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II.4.2.Evaluate and Prioritize Projects
The opportunity funnel can collect hundreds or even thousands of opportunities during a year.
Some of these opportunities do not make sense in the context of the firm’s other activities, and in
most cases, there are simply too many opportunities for the firm to pursue at once. The second
step in the product planning process is therefore to select the most promising projects to pursue.
The following four perspectives are useful in evaluating and prioritizing opportunities for new
products.

i. Competitive Strategy: - An organization’s competitive strategy defines a basic approach to

markets and products with respect to competitors. The choice of which opportunities to
pursue can be guided by this strategy. Several strategies are possible, such as:
 Technology leadership: To implement this strategy, the firm places great emphasis on
basic research and development of new technologies and on the deployment of these
technologies through product development.
 Cost leadership: This strategy requires the firm to compete on production efficiency,
either through economies of scale, use of superior manufacturing methods, low cost
labor, or better management of production system.
 Customer focus: To follow this strategy, the firm works closely with new and existing
customers to assess their changing needs and preferences. Carefully designed product
platforms facilitate the rapid development of derivative products with new features or
functions of interest to customers.
 Imitative: This strategy involves closely following trends in the market, allowing
competitors to explore which new products are successful for each segment. When
viable opportunities have been identified, the firm quickly launches new products to
imitate the successful competitors. A fast development process is essential to effectively
implement this strategy.
ii. Market segmentation: - Customers can be usefully thought of as belonging to distinct market
segments. Dividing a market into segments allows the firm to consider the actions of
competitors and the strength of the firm’s existing products with respect to each well defined
group of customers. By mapping competitors’ products and firm’s own products onto

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 segments, the firm can assess which product opportunities best address weaknesses in its own
product line and which exploit weaknesses in the offerings of the competitors.
iii. Technological Trajectories: - In technology intensive business, a key product planning
decision is when to adopt a new basic technology in a product line.
iv. Product Platform Planning: - The product platform is the set of assets shared across a set of
products. Components and subassemblies are often the most important of these assets. An
effective platform can allow a variety of derivative products to be created more rapidly and
easily, with each product providing the features and functions desired by a particular market
segment. Decisions about product platforms are very closely related to the technology
development efforts of the firm and to decisions about which technologies to employ.

II.4.3.Allocate Resources and Plan Timing

It is likely that the firm cannot afford to invest in every product development opportunity in its
desired balanced portfolio of projects. Aggregate planning helps an organization make efficient
use of its resources by pursuing only those projects that can reasonably be completed with the
budgeted resources.

Project Timing: Determining the timing and sequence of projects, sometimes called pipeline
management, must consider a number of factors.

 Timing of product introduction: Generally the sooner a product is brought to market the
better. However, launching a product before it is of adequate quality can damage the
reputation of the firm.
 Technology readiness: the robustness of the underlying technologies plays a critical role
in the planning process. A proven, robust technology can be integrated into products
much more quickly and reliably.
 Market readiness: The sequence of product introductions determines whether early
adopters buy the low end product and trade up or whether they buy the high end product
offered at a high initial price. Releasing improvements too quickly can frustrate
customers who want to keep up; on the other hand, releasing new products too slowly
risks lagging behind competitors.
 Competition: The anticipated release of competing products may accelerate the timing
of development projects.

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The set of projects approved by the planning process, sequenced in time, becomes the product plan.

II.4.4.Complete Pre-Project Planning

Once the project has been approved, but before substantial resources are applied, a pre-project
planning activity takes place. This activity involves a small, cross functional team of people,
often known as the core team. At this point, the earlier opportunity statement may be rewritten as
a product vision statement. The objective defined by a product vision statement may be very
general. It may not say which specific new technologies should be used, nor does it necessarily
specify the goals and constraints of functions such as production and service operations. In order
to provide clear guidance for the product development organization, the team formulates a more
detailed definition of the target market and of the assumptions under which the development
team will operate. These decisions are captured in a mission statement.

II.4.5.Product Development Process

In order to be successful a company must make a consistent commitment of its resources to new
product development, design a new product strategy linked to its strategic planning process and
establish a formal mechanism for managing the new product development process. Stages in new
product development process include:

i. Idea generation: - The actual process for developing a new product starts with the search for
ideas for that product which can be derived from a number of sources such as customers,
researchers, competitors, etc. A company should tap these sources to the maximum possible
extent for obtaining useful ideas for new products.
ii. Idea screening: - The primary function of the idea screening process is twofold: first, to
eliminate ideas for new products that could not be profitably marketed by the firm and
second, to expand viable ideas into full product concepts.
iii. Project planning: - This stage of the process involves several steps. It is here that the new
product proposal is evaluated further and responsibility for the project is assigned to a project
team. The proposal is analyzed in terms of production, marketing, financial and competitive
factors. A development budget is established and some preliminary marketing and technical
research is undertaken. Alternative product features and component specifications are
outlined. Finally, a project plan is written up, which includes estimates of future

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 development, production and marketing costs along with capital requirements and manpower
needs. Project proposal is given to top management for a go or no-go decision.
iv. Product Development: - At this juncture, the product idea has been evaluated from the
standpoint of engineering, manufacturing, finance and marketing. If it has met all
expectation, it is considered a candidate for further research and testing.
v. Test Marketing: - Up until mow the product has been a company secret. Now management
goes outside the company and submits the product candidate for customer’s approval. Test
marketing is a controlled experiment in a limited geographic area to test the new product or
in some cases certain aspects of the marketing strategy, such as packaging or advertising. The
main goal of a test market is to evaluate and adjust the general marketing strategy to be used
and the appropriate marketing mix.
vi. Commercialization: - This is the launching step in which the firm commits to introducing the
product into the marketplace. During this stage, heavy emphasis is placed on the organization
structure and management talent needed to implement the marketing strategy. Emphasis is
also given to following up on such things as bugs in the design, production costs, quality
control, and inventory requirements.

II.5. Causes of New Product Failure

Many new products with satisfactory potential have failed to make the grade. Here is a brief list
of some of the more important causes of new product failures after the products have been
carefully screened, developed and marketed:

 No competitive point of difference, unexpected reactions from competitors;

 Poor positioning and quality of product;
 Non-delivery of promised benefits of product and too little marketing support;
 Poor perceived price/quality value;
 Faulty estimates of market potential and other marketing research mistake;
 Faulty estimates of production and marketing costs;
 Improper channels of distribution and marketing costs;
 Rapid change in the market after the product was introduced.

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Some of these problems are beyond the control of management; but it is clear that successful
new product planning requires large amounts of reliable information in diverse areas.

II.6. Needs of Research

The keystone activity of any new product planning system is research – not just marketing
research, but technical research as well. This need will be more clearly understood if some of the
specific questions commonly raised in evaluating product ideas are examined:

 What is the anticipated market demand over time? Are the potential applications for the
product restricted?
 Can the item be patented? Are there any antitrust problems?
 Can the product be sold through present channels and sales force?
 At different volume levels, what will be the unit of manufacturing costs?
 What is the most appropriate package to use in terms of color, material, design and so
forth?
 What is the estimated return on investment?
 What is the appropriate pricing strategy?

While this list is not intended to be exhaustive, it serves to illustrate the serious need for reliable
information. Some of the essential facts required to answer these questions can only be obtained
through time-consuming and expensive marketing research studies. Other data can be generated
in the engineering laboratories or pulled from accounting records. Certain types of information
must be based on assumptions, which may or may not hold true, and on expectations about what
will happen in the future, as in the case of anticipated competitive reaction or the projected level
of sales.

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III. Branding

III.1. What is Branding?

In today’s overcrowded marketplace, almost all of the brands are parity goods and services—
products that are equivalent in value. In essence, without brand names, each product or service is
a commodity. It is the branding that distinguishes each one.

“Products are made in the factory; brands are created in the mind.” - Walter Landor

Very basically, a brand is a proprietary name for a product, service, or group1. On a more
multifaceted level, a brand is the sum total of all functional and emotional assets of the product,
service, or group that differentiate it among the competition. The term brand could be seen from
three integrated perspectives:

III.1.1.All Characteristics of Brand

Each product, service, or group has functionalities, features, or capabilities, which may or may
not be unique to the product or service category. Also, each product, service, or group—due to
its heritage, parent company, logo, visual identity, advertising, and audience perception—carries
or assumes emotional assets. Emotional (as well as cultural) associations arise in response to the
spirit of the brand identity, the emotional content or spirit of the advertising, and the
communities and celebrities who adopt the brand or support the group as part of their lives.

Hence, a brand is the sum total of all functional and emotional assets that differentiate it among
the competition and distinguish it in the audience’s mind.

III.1.2.The Brand Identity

The brand identity is the visual and verbal articulation of a brand, including all pertinent design
applications, such as logo, business card, letterhead, or packaging. A brand identity is a program
that integrates every visual and verbal element of a company’s graphic design, including

1
The term “group” is used to denote a company, organization, corporation, social cause, issue, or political group.

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typography, color, imagery, and its application to print, digital media, environmental graphics,
and any other conventional or unconventional media.
A very carefully planned strategic brand identity that is memorable, consistent, and distinctive
can be able to maintain consumer loyalty and positive consumer perception.

A brand identity usually consists of the following integrated components:

 Brand name  Logo  Letterhead

 Packaging  Web site  Business card

 Any other application pertinent to a particular brand

III.1.3.The Audience’s Ongoing Perception of the Brand

The audience is whoever is on the receiving end of a brand experience, brand advertising, or
social cause communication—whether it is a large number of people or an individual. A target
audience is a specific group of people or consumers targeted for any brand application or
experience, whether it’s a brand identity, traditional or unconventional advertising, public service
advertising, or entire brand experience.

The scope of an audience can be:

 Global  National
 International  Regional  Local

III.2. Elements of Branding

Brands are developed to target customers’ needs and preferences and include elements such as
brand names, trade names, brand marks, trade characters, and trademarks. These elements are
often combined to form a firm’s corporate symbol or name.

Effective brands have tremendous value and frequently become global brands. Global brands
appeal to consumers beyond cultural or political boundaries. For example, McDonald’s is an
effective global brand. The company’s brand seeks to project an image of consistent quality in
product and service.

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III.2.1.Brand Name
A brand name, also called a product brand, is a word, group of words, letters, or numbers that
represent a product or service. An effective brand name should be easily pronounced, distinctive,
and recognizable. Examples include Pepsi, Sony, Nokia, Toyota, BMW, etc.

III.2.2.Trade Name
A trade name, or corporate brand, identifies and promotes a company or a division of a
particular corporation. The trade name is the legal name that a company uses when it does
business and is used to promote a positive image of the organization such as quality, value, and
reliability. Google, Dell, Disney, Nike, and Yahoo! are all examples of trade name. The trade
names support the company’s product brands.

III.2.3.Brand Mark and Trade Character

Many brands incorporate a unique symbol, coloring, lettering, or other design elements known as
a brand mark. A brand mark is recognizable visually and does not need to be pronounced. Some
examples of brand marks are the Apple Computer’s apple or Dell Computer’s.

A trade character is a specific type of brand mark, one with human form or characteristics.
Some examples of trade characters include Green Giant’s Jolly Green Giant, the Pillsbury
Doughboy, and the Keebler Elves.

III.2.4.Trademark
A trademark is a word, name, symbol, device, sometimes sound, color, and smell or a
combination of these elements that is given legal protection by the federal government.
Trademarks are used to prevent other companies from using a similar element that might be
confused with the trademarked one. For example, the image of the golden arches is a trademark
of McDonald’s. No other company can use this symbol.

Trademarks are followed by a registered trademark symbol (®). When brand names, brand
marks, trade characters, and other elements of branding are registered as trademarks, they cannot
be used or misused by other companies.

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III.3. Types of Branding

There are three classifications of brands, one for each type of company that brands its products:
national brands (manufacturers), private distributor brands (whole sellers and retailers), and
generic brands.

III.3.1.National Brands
National brands, also called producer brands, are owned and initiated by national manufacturers
or by companies that provide services. Examples of national brands for consumer goods include
McDonald, Ford, Dell, etc. Examples of service companies that generate national brands are
Hilton, Sheraton, Bank One, Ethiopian Airlines, Google, Yahoo! etc.

III.3.2.Private Distributor Brands

Private distributor brands, also called private brands, store brands, dealer brands, or private
labels, are developed and owned by wholesalers and retailers. The manufacturer’s name does not
appear on the product. Wal-Mart’s George is an example of private distributor brand.

Private distributor brands appeal to customers who desire the quality and performance of
national brands at a lower price. Many large supermarket and retail chains have private
distributor brands.

Private brands are popular with retailers because they usually carry higher gross margins and
thus are more profitable for the seller than manufacturer brands. Also, because private brands
cannot be sold at competitors’ stores, they help cultivate customer loyalty.

III.3.3.Generic Brands
Generic brands are products that do not carry a company identity. The packing for generic
products usually features a description of the product, such as “pancake mix” or “paper towels.”
Generic brands are generally sold in supermarkets and discount stores. These unbranded
products are often priced 30 to 50 percent lower than manufactured brands and 10 to 15 percent

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lower than private distributor brands. Companies that manufacture and sell generic brands do not
heavily advertise or promote these products and, therefore, can pass on savings to customers.

III.4. Generating Brand Names

How does company create brand name? Some companies turn to computer software programs
that specialize in generating brand names. These programs will check to see if a name is already
owned and trademarked by another company. Other companies hire branding agencies, naming
consultants, or public relations firms to generate and check the availability of brand names.

Branding is so important to product planning that over 60 percent (in USA) of all companies
conduct market research to test new brand names before they are released. After a name has been
generated and researched, companies will then conduct brand-loyalty research to gauge the brand
effectiveness. Once established, brand names are carefully protected and rarely changed.

III.5. Branding Strategies

Companies develop and rely on a variety of branding strategies to meet sales & their objectives.
Some of these strategies are brand extensions, brand licensing, mixed branding, and co-branding.
Effective use of different brand strategies can increase sales and maximize company profits.

III.5.1.Brand Extension
Brand extension is a branding strategy that uses an existing brand name to promote a new or
improved product in a company’s product line. For example, Ambo spring water bottling
company extended its product line by adding flavors, including apple, orange, lemon and the
like. Toyota Company develops new model automobiles with the same name Toyota. Launching
new products is costly, and failure rate for new products is high. Sometimes companies can
reduce this risk by using an already established brand name.

One risk that companies face when they employ a brand extension strategy is overextending a
product line and diluting the brand. If a brand includes too many products, the product line may
lose recognition and appeal with customers.

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III.5.2.Brand Licensing
Some companies allow other organizations to use their brand, brand mark, or trade character
through brand licensing. This authorization is a legal licensing agreement for which the
licensing company receives a fee, such as a royalty, in return for the authorization. The
agreement delineates all the terms and conditions under which the brand may be used.
III.5.3.Mixed Brands
Some manufacturers and retailers use a mixed-brand strategy to sell products. They offer a
combination of manufacturer, private distributor, and generic brands. A manufacturer of a
national brand will agree to make a product for sale under another company’s brand. A mixed
brand strategy enables a business to maintain brand loyalty through its national brand and reach
several different target markets through private brands, thus increasing its overall product mix. It
can maximize its profits by selling a private brand product without damaging the reputation and
the sales of its national brand product.

III.5.4.Co-Branding
A co-branding strategy combines one or more brands in the manufacture of a product or in the
delivery of a service. This strategy enables companies to capitalize on the popularity of other
companies’ products and services to reach new customers and ideally, increase sales for both
companies’ brands. Co-branding can work with one or many partners.

Co-branding can also work when two or more retailers share the same location. Starbucks Coffee
Co. has an agreement with Barnes & Noble to open coffee shops inside their bookstores.

III.6. Importance of Brands in Product Planning

Branding establishes an image for a product or company and projects that image to customers
and the marketplace. The use of brands is important in product planning for several reasons.

 To build product recognition and customer loyalty: - It is important that satisfied customers
be able to easily recognize a company’s branded products when they return to make repeat
purchases.
 To ensure quality and consistency: - Through branding, companies communicate to
customers consistent quality and performance, purchase after purchase. Branding connotes
consistency.

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 To capitalize on brand exposure: - Branding helps companies extended their products or
services into new target markets. It also helps introduce new product lines or categories.
Customers and prospects are more willing to try new products that carry a familiar brand
name.

III.7.Difficulties of Creating or Maintaining a Brand

Brand building has become a complicated and complex task. Whether existing companies or new
ones the tasks of creating or maintaining a brand is difficult. There are many reasons for this and
some of them are: -

 Pressure to compete on price: - Customers always like to get their value of money. When
two similar brands offer their products one of the first things the customers compare is the
price. A higher priced product is less likely to have a trial as compared to a low priced.
 Increase in competitors: - As competitors increase the choice for a customer also increases.
Each competitor’s product is not much different from the each other. Hence creating a
unique selling proposition in the customers mind becomes all the more difficult and
expensive especially for new entrants.
 Fragmentation of markets and medias: - Customers have lots of choice of social Medias
like TV and radio channels, newspapers, magazines, and the like. As a result, they can
switch channels as soon as an advertisement appears. Hence for companies to make their
presence felt they must send a lot of money over several channels and yet they will not be
sure that the complete target segment is seeing them. This makes brand building very
expensive and difficult.
 Complex brand relationships and strategies: - Since brand building is difficult companies
try to leverage existing brands and create sub brands under a mega brand (brand extension).
This causes strategies in brand building to become more complicated as different products
will have a larger customer preference in some markets and others in other market.
Sometimes building one sub brand may eat into the sales of the other sub brands.
 Bias toward changing strategies: - As a product goes through its life cycle it is handled by
different people at different points of time (simply because people come and go within an
organization). Each person who comes in new would like to do something new so as to
enhance the brand equity just because he has come in freshly and must show his worth.

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 Bias against innovation: -This is just the opposite of the above point where the company
does not like to change anything about the brand because it has been performing so well in
the past. They do not look at the changed market realities and are likely to fall prey to a
aggressive competitor.
 Pressure to invest elsewhere: - Once strong brands are established companies begin to feel
that they do not have to spend money on them in order to maintain it. They tend to take the
money needed for promotion and invest it in other areas.
 Short term pressures: - Brand building is a long term activity and needs a vision and
resources. However resources are always in short supply and so immediate requirements
tend to take precedence over brand building.

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IV. Packaging

IV.1. Definition
Packaging is the science, art and technology of enclosing or protecting products for distribution,
storage, sale, and use. It is the process of preparing items of equipment for transportation and
storage and which embraces preservation, identification and packaging of products. Packaging
also refers to the process of design, evaluation, and production of packages. It is now regarded as
an essential component of our modern lifestyle and the way business is organized. According to
Panwar(2004), Packaging is the act of containing, protecting and presenting the contents through
the long chain of production, handling and transportation to their destinations in as good a state,
as they were, at the time of production. Packaging is an important part of the branding process as
it plays a role in communicating the image and identity of a company.

Due to increasing self-service and changing consumers’ lifestyle, the interest in package as a tool
of sales promotion and stimulator of impulsive buying behavior is also growing increasingly. So
packaging has an important role in marketing communications, especially from the point of sales
and could be treated as one of the most important factors influencing Consumer’s purchase
decision. Consequently, the role of package in marketing communications increases: it must
attract consumer’s attention and transmit adequate value of product to consumer in the short
period right in the place of sale. Therefore, there is a necessity to explore package and its
elements in more detail, in order to understand which of these elements are the most important
for consumer’s purchase decision.

On the other hand Lamb et al, (2004), argue that there are four important functions for
packaging, and the current study focuses on these functions, to study the role of packaging in
Jordanian consumer's perception of product quality at the point of purchase. These four
dimensions include all kolters' dimensions but in other names, these dimensions are: Protection

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of products and consumer, Promotion of products, Facilitation of storage, use, and convenience
of products and facilitation of recycling and reducing environmental damage.

IV.2. Functions of Packaging

Understanding what packaging is intended for is essential if packaging is to be re-designed.

Packaging has various roles. However, some of functions of packaging are listed below.

a. Containment
The kind of packaging needed to contain a product depends on the physical form of the product
and the nature of the product itself. Products come in all shapes and sizes and they also react in
different ways to their surroundings. For example, a corrosive chemical needs to be contained in
a pack that does not allow the chemical to leak, react with its surroundings, react with its
packaging or become contaminated. All need to be considered before designing or modifying the
type of packaging used.

b. Preservation
The preservation function in this context means stopping or inhibiting chemical and biological
changes. The most common examples would be extending the shelf life of a food product beyond
its natural life, or maintaining sterility in food or medical products. Preserving a product requires
understanding of the conditions beyond which unacceptable deterioration may occur. Therefore
limits must be established so that packaging can be designed to preserve a product to an
acceptable level within these limits.

c. Protection
The protection function in this context means guarding against physical damage. This could arise
through shock, vibration or compression damage. Although corrugated cardboard boxes used for
distribution packaging is the most recognizable example of protection against these hazards,
there are many other pack types that could be employed to protect against physical damage. For
example, paper pulp molded packaging or plastic blister packaging can also be used to cushion a
product.

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d. Providing Information on a Product
This means communicating information on a pack to a consumer. As well as helping to identify
and market the product, there may also be legal requirements as to the information a pack must
contain. These vary from industry to industry, depending on the nature of the product being
packaged.

e. Convenience for Handling

This means all aspects of the movement and use of the product from the packaging line to final
use and disposal. Handling a single product, groups of products and pallet loads etc. must be
considered, as well as various transport methods, handling techniques, and storage conditions.

f. Promoting and Selling the Product

As well as communicating factual information, a pack must be effective in promoting the
contained product. This can be done by showing the product, using illustrations, branding the
product name or the company that manufactures it, as well as using enticing pack shapes, colors,
designs, etc. These matching skills are normally the preserve of the sales and marketing team.

IV.3. Types of Packaging

There are two ways in which we can classify packaging. It can be classified either by the type of
packaging or by the function the packaging performs.

IV.3.1. By Function
Packaging types can be classified from the function they perform starting from the first layer
toward the outside part of the package.

 Primary Packaging: -This is the first layer of packaging over the product. If we take the
example of the medicine strip –the covering over the medicine is the primary packaging.
 Secondary Packaging: - This is the packaging that is outside the primary packaging. In
the case of the medicine strip it is the box that collates the 10 or 20 strips.
 Tertiary Packaging: - This is the packaging that is usually used for bulk transport. In the
case of the medicine strip several boxes each containing strips will be packed in a larger carton
and then shipped.

IV.3.2. By Type
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Another way to identify packaging types is to classify them by their type. Blister packaging, skin
packaging, vacuum packing, box packing, carton packing, metalized film packing, bottle
packing, cans and palletizing are among examples of packaging by types.

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IV.4. Packaging Design Considerations

Packaging design and development is usually done at the time of product development since it
helps in the comprehensive development of the product and understanding of all costs and issues
related to the products performance in the market. The following should be taken into
consideration while developing packaging design: -

IV.4.1. Identifying the Requirements of the Product

Packaging design begins by understanding the requirements of the product to be packed and
identify requirements related to: -

 Marketing: - The marketing requirements of the product must be met. If the new product is
from an existing family of products then its packaging cannot be significantly different from the
earlier products otherwise the customer may not recognize it.
 Product Display: - Depending on the product type the product needs to be displayed at the
retail counter. The product packing must be able to display the brand and the marketing message
clearly to the customer.
 Ensuring quality of delivery: - Packing must be developed in a manner that ensures that the
product is delivered from manufacture to the customer in a safe manner that is free from any
form of damage minor or major.
 Transportation: - During transportation the product has to be loaded and unloaded onto
transport and moved to and from the warehouse.
 Government Regulatory requirements: - These are some of the mandatory requirements
that every manufacturer has to display on the product. These have been mandated by the
government so as to inform and protect the consumer so that the manufacturer or the retailer does
not take unfair advantage of the consumer. These are things like Price, Net Weight, Gross
weight, composition of contents, expiry date, storage conditions, health hazards, etc.
 Shelf life: - is the length of time that food, drink, medicine and other perishable items are
given before they are considered unsuitable for sale or consumption.
 Environmental issues: - Environmental concerns are growing by the day. We now know
that we are living in a finite environment and we cannot undertake infinite pollution.

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IV.4.2. Performance Criteria
Any packing design must be able to meet the performance desired from it. However, if the
packaging does not perform to its performance criteria, the product will get damaged during
transit.

IV.4.3. The Time Targets

Any development takes time from concept to completion. However since we have a product to
launch it is imperative that the product packaging is released on time. The product development
team must freeze the time target with the team developing the packaging as any other milestone
in the product development and this must be adhered to.

IV.4.4. Resource Available and Cost targets

The designed packing should not cost more than a specified amount otherwise the product will
become unviable in the market. This cost limit is also specified by the product development team
at the start of the project.

IV.5. Contemporary Packaging Issues

Product Packaging offers companies unique opportunities to incorporate the latest technologies
and address lifestyle changes as well as environmental, social, and political concerns.

IV.5.1. Aseptic Packaging

Aseptic packaging incorporates a technology that keeps foods fresh without refrigeration for
extended periods. The process involves separately sterilizing the package and the food product,
and filling and sealing the package in a sterile environment. Canning and bottling are aseptic
methods for food storage.

IV.5.2. Environmental Packaging

Companies are trying to develop packages that respond to consumer demand for environmentally
sensitive designs. Consumers demand less wasteful packaging and even willing to pay more for
products that reduce waste. In response to consumer concern, companies are making more
packages that are reusable, recyclable, and safer for the environment.

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Hence, while designing packaging, environmental impact should be taking into consideration. It
should be sourced responsibly, designed to be effective and safe throughout its life cycle, meets
market criteria for performance and cost, is made entirely using renewable energy, and once
used, is recycled efficiently to provide a valuable resource for subsequent generations.

IV.5.3. Cause Packaging

Some companies are also using their packages to promote social and political causes. This
practice is known as cause packaging. The issues on the packages may be totally unrelated to
the products inside. For example, if Yes Bottled Water writes “Save the forest!” on its package
which is not directly related with the product, it is cause packaging.

Printing messages on packages encourages consumers to participate in or think about issues. In

many ways, cause packaging is also a company’s attempt to differentiate its products from those
of its competitors.

IV.6.Future Packaging

The packaging industry is very dynamic and has undergone a great deal of change because of the
changing world around it. Laws and regulations, new products, the globalization of technologies,
and a general increase in competitiveness have accelerated from time to time, and there are
greater concerns with health and reliability issues.

There's a need for a more comprehensive and integrated view for the packaging industry to plan
on a more informed and inclusive basis. The following areas are where the impact of packaging
is going to play an important role in the near future:

IV.6.1. Environment
Different types of packing materials are becoming a virtual nuisance in society and are affecting
the ground, ground water, and river water. While we try to deal with the situation, the waste
heaps continue to grow larger. As a result, careful must be taken while designing and producing
packages to make our world clean and comfortable to live in.

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IV.6.2. Globalization
As companies go global, the challenges for packaging become much more complex. This is
partially due to the fact that different countries have different legal requirements and different
connotations for different names, numbers and colors which relate to the culture and life styles of
the country which companies must take cognizance of.

IV.6.3. Energy
Today there is a global movement towards sustainability and packaging while having to satisfy
its needs in the market will have to make sure that it is scoring high on the sustainability scale.
This will mean that the energy consumption and thus the carbon dioxide generation of each
packaging and the product will come under greater scrutiny over the years.

IV.6.4. Legal Regulations

In the future will see that in the domestic and export markets regulations will require
compliances in three areas:

 Recycling: - involves processing used, unwanted or waste materials into new products to
reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution (from
burning waste) and water pollution (from land filling) and lower greenhouse gas emissions as
compared to fresh production.
 Reclamation: - is the recovery of useful substances from waste products or recovering
usable parts.
 Remanufacturing: - industrial processes in which worn-out products are restored to like-
new condition.

IV.6.5. Technology
Intelligent packing is going to become more and more important as technology advances.

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V. Labeling

V.1.What is Label?

A label is an information tag, wrapper, seal, or imprinted message that is attached to a product or
its package. The main function of a label is to inform customers about a product’s contents and
give directions for use. Labels also protect businesses from legal liability if a consumer is injured
during the use of its product. Fear of litigation, consumer pressure, government regulation, and
concern for consumer safety are all factors that have compelled manufacturers to place more
detailed information on labels.

V.2.Kinds of Label

There are three kinds of labels: brand, descriptive, and grade. The brand label gives the brand
name, trademark, or logo. A descriptive label gives information about the product’s use,
construction, care, performance, and other features. For example, food labels include product
illustrations, weight statements, dating and storage information, ingredients, product guarantees,
and the manufacturer’s name and address. Product illustrations must represent what is in the
package. Weight statements give the net weight of the entire product. Descriptive labels do not
necessarily contain all the information that consumers need when making a buying decision.

A grade label states the quality of the product. For example, sheet metal labeled G28, G32, G35
and the like.

V.3.Labeling Law

In the past, companies have failed to offer complete and truthful information on product labels.
Consumers also complained about the lack of uniformity in labeling. As a result of these
complaints and concerns, labeling laws were established. Many package labels must now meet
local, state and federal standards. Federal mandates require that the name and address of the
manufacturer, packer, or distributor and the quantity of contents appear on labels. These
standards prevent manufacturers from misleading consumers with deceptive or incomplete
packing labels.

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VI. Conclusion

 Product Planning

Product planning is an activity that considers the portfolio of projects that an organization might
pursue and determines what subset of these projects will pursued over what time period. It
involves all activities which enable producers and middlemen to determine what should
constitute a company's line of products.

Product planning involves a five-step process: Identify opportunities, evaluate and prioritize
projects, allocate resources and plan timing, complete pre-project planning, and reflect on the
results and the process.

Improper planning and lack of due care will bring severe problem to the business organization,
unless management takes precaution and develops a plan for dealing with the problem; it is
likely to operate at a severe competitive disadvantage in the marketplace. As a result, greater
emphasis and due care should taken while undertaking product planning. Undertaking research is
also another keystone activity of any product planning to protect new products from failure.

 Branding

A brand is a name, term, design, or symbol (or combination of these elements) that identifies a
product or service. It is the sum total of all functional and emotional assets of the product,
service, or group that differentiate it among the competition. A very carefully planned strategic
brand identity that is memorable, consistent, and distinctive can be able to maintain consumer
loyalty and positive consumer perception.

Brands can include a number of elements, such as a trade name, brand name, brand mark, trade
character, and trademark. There are also three classifications of branding: national brands
(manufacturers), private distributor brands (whole sellers and retailers), and generic brands.
Companies develop and rely on a variety of branding. Some of these strategies are brand
extensions, brand licensing, mixed branding, and co-branding.

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Branding establishes an image for a product or company and projects that image to customers
and the marketplace. As a result, the use of brands is important in product planning. However,
nowadays building brand has become a complicated and complex task. Whether existing
companies or new ones the tasks of creating or maintaining a brand is difficult. In order to escape
from such difficulties, business organizations must be responsive to market trends, economic
climates, public opinion, and every slight change in consumer behavior, and be able to anticipate
trends, and reinvent or revitalize a brand accordingly.

 Packaging

Packaging is an important aspect of marketing since it carries out several marketing functions
and helps fulfill Governmental regulations. It helps to protect, preserve, transmit information,
bulk pack, and move the material through the distribution channel and to ensure that the product
is not tampered before the consumer begins to use it.

Packaging can be classified in by function or by type of packaging. Its design is depends on its
need in the market –for marketing, product display, or to ensure its quality till delivery and to
ensure that the Govt. Regulations can be displayed in an adequate manner.

The packaging must also address the environmental issues and the end use of the product. In
future energy and environment are going to be very critical and any packaging must conserve
energy to the extent possible and must not degrade the environment for these legal requirements
are going to become stricter. New technology in packaging will have a significant impact on the
way material is packed and handled and so marketers must keep abreast with it.

 Labeling

A label is an information tag, wrapper, seal, or imprinted message that is attached to a product or
its package. The main function of a label is to inform customers about a product’s contents and
give directions for use. It also protects businesses from legal liability if a consumer is injured
during the use of its product. As a result, many package labels must meet local, state and federal
standards. Therefore, business organizations should oblige to those standards and meet customer
requirements to be free from litigation and attract customers.

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VII. References

Crawford, C. Merle. New Products Management. 5th ed. Burr Ridge, IL: Irwin McGraw-Hill,
1997.

Lamb, Charles. W., Hair, Joseph. F., and Carl, Mcdaniel., (2004), Marketing, 7th edition,
Thomson, south-western, Canada.

Lockhart, H. A paradigm for packaging. Packaging Technology and Science. 1997.

Kotler, Philip, Marketing Management. 14th ed., New Delhi, India, Prentice Hall of India, 2012

Panwar, J.S., (2004), "Beyond Consumer Marketing: Sectoral Marketing and Emerging Trends",
Tejeshwar singh for response books, typeset in 10 pt, New Delhi.

Ulrich and Eppinger, Product Design and Development, 2nd ed. TMH, 2002.

Kahn, Kenneth B., New Product Planning, New Delhi, India, 2001.

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