Wednesday, July 30, 2008

Packaging Paraphernalia

To some, the word packaging refers to what contains a product, the 'wrapper'. But there are major marketing implications that need to be recognised as well.

There are 3 main purposes for the product packaging:
1. Safety and utilitarian porposes. It protects a product on its journey from manufacturer to customer. It mustn't be tampered with, might need to be child-proof, and may need to be resistant to factors eg evaporation, spoilage or spilling.

2. Packaging implements a brand's marketing guidelines. It helps identify the product and therefore might prevent substitution of competitive products. It's a "silent salesman" in a way. Often the packaging design is what differentiates the product when other attributes seem common. Eg non-drip spout, a reusable container, or just something innovative (like the pump-pack toothpaste was).

3. Companies may package a product in a way so as to increase profit potential. A package may be so attractive (think Apple) that people will pay more just to get the special package, even though the additional price exceeds the additional cost of packaging.

Some criticisms of packaging include:
  • Packaging depletes our natural resources (hence a trend to produce with green materials)

  • Packaging is excessively expensive (eg beer, it accounts for roughly half the production cost)

  • Health hazards may be an issue (aerosols, substrates for food packs)

  • Packaging can be deceptive (wrong, or missing information)

and so marketers face some real challenges in satisfying these complaints while at the same time retaining the marketing effectiveness, consumer convenience and product protection features of packaging.

New trends are on their way too such as neon drink containers like this. And down the track we'll see interactivity built in (eg for sales promotions, product feedback etc). It's interesting that the new technology arising sees improvements in non-packaging areas, ie with the neon example it doesn't directly address the 3 fundamentals, it simply screams "I'm glowing green, look at me look at me buy me buy me 'cause I'm nifty!" (which will work a treat).

The point of all this is that a product these days isn't simply the tangeable outcome of the purchase. It's the whole experience from research through to usage. If the experience is positive, it should make for repeat purchase, extended word of mouth or both. Companies that skimp on packaging budgets should think again, as it lays before usage in the experience chain.

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