PACKAGING:

A tool for successful Branding

Subject : Brand Building
Group: Aditya Thakur Akash Purswani Kalpesh Panchal Sanjay Rohra Sonal Lalwani

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VES College of Arts, Science and Commerce

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[PACKAGING:A TOOL FOR SUCCESSFUL BRANDING]

INDEX:

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Topic Packaging Evolution of Packaging Role, Importance and Purpose of Packaging Types of Packaging Examples of Packaging Case Study Future of Packaging References

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Packaging: Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells. In many countries it is fully integrated into government, business, institutional, industrial, and personal use. Packaging may refer to a container or wrapper for a consumer product that serves a number of purposes including protection and description of the contents, theft deterrence, and product promotion. Innovative packaging may actually add value to the product if it meets a consumer need such as portion control, recyclability, tamper-proofing, child-proofing, easy-open, easy-store, easy-carry, and nonbreakability. The labels on packages are important components of the overall marketing mix and can support advertising claims, establish brand identity, enhance name recognition, and optimize shelf space allocations. When designing packaging, the cost to manufacture, ship, and display the package must be considered. Packaging must be small enough to accommodate available shelf space and large enough to deter theft. It must also contain an adequate amount of product to keep the unit price competitive. Packaging should be designed to highlight product benefits and can be an integral part of the product itself, like facial tissue boxes. For some products, such as Pez Popper candy, the package is the product. Innovative packaging can create a whole new product class like juice boxes.

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Evolution Of Packaging: In the rural society which prevailed until the industrial revolution of the 19th century, packaging was as rudimentary as the living conditions of the time. Packaging was often standardized and could be used for a number of different purposes: transporting food, wood or tools. We are talking more about receptacles than about packaging, a role they did not fulfill with much success. The role of packaging was just to ensure the conservation and transportation of products. There were considerable losses of resources. The individual was not a consumer but a user of resources that were essential for survival. The industrial revolution gave a considerable impetus to the need for packaging. Mass production and developments in modes of transport created new needs. We moved from a society where trade was limited and each community produced goods it needed to a society where activities became more and more specialized. Products were no longer used by their producer or his or her immediate neighbours, but were now transported, sold and consumed. New manufacturing procedures and transport conditions determined the forms that packaging should take. That is how barrels evolved especially adapted for sea transportation, as well as boxes that were easy to move and store. The packaging of products had the principal aims of protecting them and facilitating their transport, making them available to more people. Retailers would then simply unpack products before selling them. Individual packaging was not yet used and no real thought had been given to packaging as a means of communication or as a sales tool. Products were packaged and then sold in bulk. Shopkeepers handled the products, weighing them and wrapping them individually, with little concern for hygiene, while their customers watched carefully to make sure they were getting what they asked for. Modern society as we know it was still in an embryonic stage. The second packaging revolution came after the Second World War, parallel to the development of the post-war economy. After having been used to serve the needs principally of the product (protection) and then the producer (transportation), packaging began to focus on the needs of the consumer.
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Distribution systems were in the process of changing radically, from open markets and small local grocery stores to supermarkets. From then on, packaging was used for each individual product, so that it was ready to be picked up from the shelf and taken away by the consumer. The era of self-service had begun thanks to packaging of pre-packed products. Products were pre-packed. Another consequence of this new method of consumption was that information about the product could be printed on the packaging. After all, the shopkeeper was no longer able to convey the necessary information in a large supermarket. Consumption rose considerably, as did the population. This was the age of the baby boom, which was twinned by a consumption boom, packaging being the pre-condition for the modern retail trade. Packaged products soon became a much-desired commodity and packaging had to adapt to the latest trends. It is no coincidence that the mass introduction of plastic packaging dates from this era. Packaging was to emerge as an industry, and was automated to keep up with the accelerating pace of developments. Demands for quality began to rise, thus making ever greater demands on state-ofthe-art technologies. The increasing importance placed on the individual and the increase of working women made it once again necessary for packaging to find a means of surpassing itself. Consumption became mobile, people were on the move and time was precious. Packaging faced up to this new challenge by means of vacuum-packed food, using materials that could withstand the impact of being taken out of the deep-freezer to be popped into a microwave. As if this growing complexity was not enough, consumption also became more global. Products made on the other side of the world had to be able to arrive in our shops in perfect condition. Packaging had to be made even more resistant, protective, and easily transportable. The end of this story is evident in our shops and daily lives. Our supermarkets are able to offer ever more exotic products, our household appliances have sometimes travelled many kilometers before reaching our homes, and our fridges are filled with convenience foods. The world is becoming a truly global village.
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Role of Packaging The role of packaging is containment, protection, safety, and display. If you are selling your product through retail stores, you are trying to use your packaging to : 1. Catch the browsers attention 2. Create desire 3. Inspire confidence Why Packaging Is Important? Companies know that consumers judge a product by its package. But the image of a product is not the only consideration---the effects of packaging on the supply chain and accounting department should also be measured. Marketing departments weigh several aspects when deciding how to package a product. Image Packaging sets the tone of the product. Artists carefully consider the image used on their CD because they see it as representing their identity. Products are the same way. Packaging should convey the personality of a product. Companies use certain colors and shapes to entice their targeted demographics. Products targeted toward young girls are cased in bright colors, often pink and purple, using hearts, swirls and other designs. When consumers decide which product to purchase, the packaging of a product could influence the decision. Preservation Perishable products, like food, must have appropriate packaging to keep the product fresh. The company must consider how to keep some foods crunchy and other foods moist. These constraints require specialized packaging. In some cases, packaging affects the safety of the food. For example, the Food and Drug Administration provides an extensive guideline for companies considering recycled plastics for packaging.

Price
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Choice of packaging dictates price and profit margins. For example, some iced teas are in aluminum cans, some in plastic bottles and others in glass. Each of these packaging choices affects the cost of production. The company that sells tea in glass bottles instead of plastic likely pays more per unit, but the attractiveness of the glass bottle might sway some consumers. Companies should recognize cost when analyzing packaging. Knowthis.com states that in the cosmetics industry, packaging accounts for 40 percent of the selling price per product. Shipping The product is shipped by truck, rail, air or ship. These distribution methods can determine how an item should be packaged. If the product is being distributed by truck, for example, the packaging should protect the product from different temperatures. Companies also must consider how much packaging should encase the item. For example, adding extra bubble wrap might allow fewer units to fit on the truck, resulting in extra shipping costs. But using less bubble wrap might mean more units are destroyed en route. The company must evaluate cost factors such as these to determined how a product should be shipped. Environment Some packaging is better for the environment than others. Many plastics are not biodegradable, meaning that once discarded, they cannot be decomposed by the earth. Using eco-friendly material, like recycled cardboard or BPA-free plastic, might be more expensive. But should the government legislate against the use of harmful plastics in packaging, the company's initial eco-friendly decision will save costs in the long run by avoiding legal fees and switching costs. Importance of Packaging: Physical protection - The objects enclosed in the package may require protection from, among other things, shock, vibration, compression, temperature, etc. Barrier protection - A barrier from oxygen, water vapor, dust, etc., is often required. Permeation is a critical factor in design. Some packages contain desiccants or Oxygen absorbers to help extend shelf life. Modified atmospheres or controlled atmospheres are also maintained in some food
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packages. Keeping the contents clean, intended shelf life is a primary function.

fresh, sterile and

safe

for

the

Containment or agglomeration - Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Liquids, powders, and granular materials need containment. Information transmission - Packages and labels communicate how to use, transport, recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and chemical products, some types of information are required by governments. Some packages and labels also are used for track and trace purposes. Marketing - The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package graphic design and physical design have been important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display. Security - Packaging can play an important role in reducing the security risks of shipment. Packages can be made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering. Packages can be engineered to help reduce the risks of package pilferage: Some package constructions are more resistant to pilferage and some have pilfered indicating seals. Packages may include authentication seals and use security printing to help indicate that the package and contents are not counterfeit. Packages also can include anti-theft devices, such as dye-packs, RFID tags, or electronic article surveillance tags that can be activated or detected by devices at exit points and require specialized tools to deactivate. Using packaging in this way is a means of loss prevention. Convenience - Packages can have features that add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, dispensing, and reuse. Portion control - Single serving or single dosage packaging has a precise amount of contents to control usage. Bulk commodities (such as salt) can be
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divided into packages that are a more suitable size for individual households. It is also aids the control of inventory: selling sealed one-liter-bottles of milk, rather than having people bring their own bottles to fill themselves. Five Purposes of Packaging Each package for any product basically serves up to five of the following purposes: Contain- To hold the product directly; this is PRIMARY packaging. Examples include the tube or pump for toothpaste, the can or jar for food, the bottled beverage, the drum for a cleaning product. Inform -To identify the brand and any related companies, to explain how it should be used, to warn about the hazards for misuse, and to reveal product contents. Much of this information is required according to various laws and agencies. Protect -To prevent spoilage, leakage, breakage, moisture changes, theft and tampering. These packages: seal out contaminants in the environment (germs, dirt, dust, moisture, etc.); protect against tampering, theft, breakage, and spoilage. Transport- To easily and safely move the product from the manufacturer, perhaps to a warehouse, then to the retailer and finally, to the consumer. Instead of all communities manufacturing all goods for their residents, costs are -I reduced when production centers can specialize in the development of a particular item. Parts and/or products can then be transported to communities when completed and/or needed. And storage space at these various locations can be used much more efficiently when cartons are stacked. Display -To attractively display, to sell (a marketing tool). Size, cost, colors, brands, illustrations and shape are all considered for display. As this country changed from the sales person mode to self-service, the package was needed to inform and sell the product. With 10,000 products available in today's typical supermarket, a virtual "jungle" exists. So companies find that investments in packaging bring higher returns than traditional advertising.

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Types of Packaging Paper and Carton Packaging Paper and carton packaging is used for different types of goods (food, electronics, toys, shoes, kitchenware and even other packaging materials). Paper and carton packaging companies produce wrapping paper, inflated paper, sheets, boxes, tubes, pallets, interlayers, corners, edges and custom protective systems (depending on the dimension and shape of the packed good, the carton is cut and modeled to fix and protect the product). Paper can be used to laminate other materials in order to make them stronger. There is also anticorrosive paper that can be used to wrap goods or to laminate other materials. Film Packaging There are multiple types of films used in the packaging industry, most commonly polyethylene (PE), polypropylene (PP), polyolefin and polyvinyl chloride (PVC) films. The films usually come on a roll and are used to wrap goods, cover goods, protect boxes and make other packaging products (such as bags, tubes, bubble wrap and sheets). Films can be used for lamination, printed or perforated.
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They can be anticorrosive, antistatic, shrinkable or nonshrinkable, and slippery or nonslippery Foam Packaging Foam used for packaging can be produced on a roll or in sheets of different thicknesses. The foam is used to wrap goods or make bags (usually laminated with high-density PE), corners, edges and custom systems. The corners and edges are used to protect flat glass, furniture and sharp edges. Foam can be cut and modeled on the product's shape to fix and protect it. It can be antistatic and has good insulation properties. Textile Packaging There are some goods that are best protected by textiles. For example, there are custom-made textile insertions used in the automotive industry to protect car parts during transportation. The textile insert is put on a metal frame that fits into a metal container. There is also textile material used for box covers. Plastic Boxes and Containers Multiple types of plastic boxes and containers are used in all industries. For example, in the food industry there are plastic containers for goods like ketchup, yogurt, milk and juices. Plastic boxes are mainly used for transporting goods and are reusable. They can be stacked, folded when empty to save storage space and recycled. Packaging Systems Packaging companies offer different types of systems that can be divided into two categories: special solutions and packaging machines. The special
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solutions are used for valuable products that don't have a regular, simple shape. For example, parts of airplanes or expensive decorative glass objects need special solutions to be packed. The goods fit perfectly into the packaging and are protected against damages. Packaging machines are used for wrapping (wrapping the stretch film on the pallet), strapping (applying and sealing straps on boxes), sealing (with tape for boxes and with heat for films) and shrink wrapping (applying PVC or polyolefin film on products or boxes). There are also machines that inflate film, paper and instant foam. Other Types Adhesive tapes are also considered packaging materials, as they help seal boxes. They are usually made out of PE or PP film that has acrylic or solvent glue applied to it and that can be printed on. Strapping tapes are usually applied on boxes or pallets. They are made out of PE or PP and can be printed with one color. The standard colors are black and clear for PP and green for PE.

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Examples Of Innovative packaging:

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Case Study: Makeover of Britannia: A Path Less Travelled An old maxim goes, 'Why mend something when it isnt broken?' This may be the credo of most firms, but not of the food major, Britannia Industries Limited (BIL). In 1997, BIL, whose business seemed to be doing well, instead of concentrating on it, virtually charted a new course by seeking to reinvent itself. It built a new corporate identity and adopted a colourful and identifiable logo with a new base line - 'Eat Healthy, Think better.' From being a manufacturer of baked products, BIL kicked off a diversification exercise to become a comprehensive foods and beverages company making cheese and other dairy products, in addition to its bakery products. BIL seemed to be doing something radical by venturing into totally new areas, while this puzzled many, some analysts felt that it was BIL was doing this out of compulsion. They reasoned that the 16% growth rate of BIL sales, which was just 8% in real terms when corrected for inflation, though good by the standards of a mature market, was not good enough for a growing market like India, especially in the foods segment. Others felt that BIL's makeover decision may have been influenced by the threat of potential competition. They also felt that with the organized biscuit market in India being commoditized, and the major chunk being controlled by the unbranded segment, reliance on biscuits alone could be detrimental to its longterm interests. However, some analysts were of the opinion that the diversification of BIL into relatively new areas was risky, and that it should have concentrated on its core competence, the biscuit business. By the end of 2000 the exploits of BIL seemed to have fructified, at least in the short-run. In a survey conducted by A&M, BIL emerged as the number one food company well ahead of competitive brands like Nestle and Cadbury. BIL's dairy business seemed to be doing reasonably well.

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7Up looks new, with heightened lemon cues PepsiCo India has spent about Rs 25 lakh on the new look of the brand. PepsiCo India has brought in a change in the New Year - an icy lemony look for its brand, 7Up. A switch in design template - a change in the packaging, including the label and the can - has been undertaken for the brand. The brand's packaging was last refurbished towards the end of 2006. Talking about the new guise for 7Up, Alpana Titus, executive vice-president - flavours, PepsiCo India tells afaqs!, "A conscious decision has been taken to take the look to newer heights of lemon refreshment. The lemon cues and lemon colour codes have been heightened in the visual codes." A Spanish production house, Garrigosa Studio was roped in to create the new look. It took about a month to complete, and involved taking over a thousand pictures of water splashes appearing in the shape of lemons. Sources reveal that PepsiCo India has spent about Rs 25 lakh on the initiative, which is almost the cost of producing a television commercial. To unveil the new look, a television commercial has been launched, which will be supported with a special focus on outdoor. The images for the outdoor hoardings have been created using a photographic technology hitherto unused in India. The new commercial communicates the refreshment that 7Up gives to a couple, who is getting bored in a cafeteria. It takes the viewer on a sensorial ride of lemon refreshment. The film has been conceptualized by BBDO India and produced by Cutting Edge Productions. Speaking about the film, Manoj Deb, executive creative director, BBDO India says, "The challenge for us was to create a look that's fresh and strongly
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communicates the message that 7Up has natural lemon flavour. Keeping in mind that pictures speak louder than words, especially in the OOH medium, we created water splashes in shape of lemon slices, which made them visually delightful. Such a look is distinctly different from what others have attempted in the category." Titus reveals that the company is looking at a selective number of outdoors across their core markets, but is definitely high on quality. The markets include Bengaluru, the top five cities in Gujarat, Karnataka, UP, Gurgaon, Kanpur, Ghaziabad, Meerut, NOIDA, Mumbai, Delhi, Jamshedpur and Ranchi. Apart from television and outdoor, other collaterals would also find place in the mix. This will include on-ground activation, inducing trial-driving refreshment and highlighting the new look. Titus reveals that specific consumer engagement programmes have been put in place for the core markets.

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Future Of Packaging: The packaging industry is going under transformation almost everyday and new technologies that are better than before are taking their place. Consumer behavior, product demand and the current level of global warming are all going to have a direct impact on the future of packaging. The future of the packaging market is certainly looking bright. Packaging is believed to be the key method of communicating the value added benefits of a product to the consumer. Thus, there is a need to implement a global mega trend to make it even more popular. Following are some of the key trends that if implemented are going to keep this industry on its prime. The Convenience for Society All over the world, convenience seem to have emerged as an important characteristic in life of the people. Various changes in the societal outlook viz., structure of the family, number of working women rising, longer working hours and increase in commuting time, have also contributed to the need for convenience. Thus, the need for those kind of packaging, that enables the adult as well as children to open them, has risen. Also the future will see a great rise in the kind of packaging that allows one to indulge in multi tasking, for example, hand held consumption that is easy to open even in a car. Health and Nutrition This is also a driving factor in the future of packaging. With the people becoming more and more cognizant about their health viz obesity, low carbohydrate, less fat etc, the manufacturers are deemed to introduce packaging that delivers the various information regarding the product in a convenient, easy to read manner. With the rise in the demand for the food items that contain active ingredients to achieve lifestyle as well as the launch of competitive products in the flicker of a second, the need for changes in packaging in inevitable. Green Trends
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With the rate of green house emissions touching the skies, there is an urgent need to change the packaging trends that have been followed so callously in the past. The fact that even the people have become more sensitive towards the need of green technology, will surely helped in making the future of packaging more eco friendly. Various packaging options like paper bags instead of plastics and other environmentally safe technology are surely going to rule this industry. Speed to Market In this fast pacing world, it is important for the manufacturers as well as suppliers to keep abreast with their demand and supply chain. With the world being predicted to keep moving faster every day, it becomes important for the packaging industry to move with the tide. Speed to the market is another future trend of packaging that is surely going to change the way this industry looks today. Development of an electronic business-to-business network is the call of the hour.

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Reference: Packaging Designs - http://www.boredpanda.com/creative-packaging-designs/ Definitions http://en.wikipedia.org/wiki/Packaging http://www.answers.com/topic/packaging Other Sources http://www.thedieline.com/ http://lovelypackage.com http://www.industrymart.com/material-handling/ http://ezinearticles.com/?Packaging-Trend---The-FutureOutlook&id=2178513 http://www.zdnet.com/blog/btl/the-future-of-packaging/37245 http://www.afaqs.com/ ____________

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