Business Project:

Packaging

Done By:

Acknowledgement

• I would like to give sincere Thanks to my Business teacher Mrs. Shobha Ma’am for giving me the opportunity for making this project. With this I would also like to thank my friends for their encouragement & support and my parents for their support without which the completion of this project would have been Impossible.

Table of Contents• What is Packaging?

• History

• Importance of Packaging

• Purpose of Packaging

• Advantages & Disadvantages

• Types of Packaging

• Harmony Between Different Elements of Packaging

• Packaging Decisions and Strategies

• Packaging for consumer needs

• Conclusion

• Bibliography

What is Packaging?

• Packaging can be defined as the general group of activities in product planning which involves designing and producing a container or wrapper for a product

• It is usually done for the purpose of transportation and storage.

• Color, size, shape, fonts, and images are all carefully taken into consideration when designing a package for maximum visibility and lure.

Plastic

Glass Aluminum

History Ancient Era:The first packages used the natural materials available at the time: Baskets of reeds, wineskins (Bota bags), wooden boxes, pottery vases, ceramic amphorae, wooden barrels, woven bags, etc. Processed materials were used to form packages as they were developed: for example, early glass and bronze vessels. The study of old packages is an important aspect of archaeology.

The earliest recorded use of paper for packaging dates back to 1035, when a Persian traveler visiting markets in Cairo noted that vegetables, spices and hardware were wrapped in paper for the customers after they were sold.

History – Modern Era:

There are many materials used to package a product , they’re as follows :

• PLASTICS : Polythene (high density) HDPE - Used for buckets, bowls, pipes etcPET (Polyethylene terephthalate) - It is shatter proof, light weight and 90% recyclable. PVC - Polyvinyl Chloride - Used for soft drinks containers that are not pressurized.Polythene (low density) LDPE - A softer plastic used for plastic bags, squeezy bottles for substances such as detergents. These containers are flexible, shatter proof, and cheap to produce.

History – Modern Era• TIN PLATE AND ALUMINIUM : Tin plate cans are normally used for packaging foods such as processed vegetables and products such as tuna and many more.The most recognizable ‘metal’ material used for packaging food products is aluminum. It is used for drink cans, trays, wrappings, etc. Aluminum cans are also lightweight.

• PAPER AND CELLULOSE FILM :This type of packaging material is easy to print on and can be coated, treated or laminated. Often it is manufactured from renewable materials (recycled paper and pulp). It is easy to handle and lightweight.

• GLASS : Glass can be molded into a variety of shapes. It can also be manufactured in a variety of colors. One of the reasons for using glass is that the product (normally a liquid) can be seen inside it. All these factors make glass a desirable packaging material.

Importance• Packaging plays an important role as a medium

in the marketing mix, in promotion campaigns, as a pricing criterion, in defining the character of new products, as a setter of trends and as an instrument to create brand identity and shelf impact in all product groups.

• Many product providers may think that the product and its performance is more important than what the packaging looks like, but the product packaging can play a role in the success or failure of the sales of the product

Purpose of Packaging Physical protection– The objects

enclosed in the package may require protection from, among other things, mechanical shock, vibration, electrostatic discharge, compression, temperature, etc.

• Convenience– Packages can have features that add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, dispensing, reuse, recycling, and ease of disposal

• 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

Purpose of Packaging• Information transmission: Packages and

labels communicate how to use, transport, recycle, or dispose of the package or product. Some packages and labels also are used for track and trace purposes.

• Barrier protection: A barrier from oxygen, water vapor, dust, etc., is often required. Some packages contain desiccants or oxygen absorbency to help extend shelf life. Keeping the contents clean, fresh, sterile and safe for the intended shelf life is a primary function.

Advantages• Rising Standards of Health and Sanitation:As the people are becoming health conscious they like to buy packed goods. The reason is that the chances of adulteration in such goods are minimized.• Self-service Outlets:Nowadays self-service retail shops are becoming very popular, particularly in big cities. Because of this, the role of sales assistants has gone to packaging.• Innovational Opportunity:With the increasing use of packaging more innovational opportunity becomes available in this area for the researchers.• Product Differentiation:Packaging is helpful in creating product differentiation. The color, material and size of the package makes difference in the perception of the buyers about the quality of the product.

Disadvantages• Cost:While packaging can do a lot to get customer attention, and may even add value to a product, it also adds to the cost of production and the eventual retail price. Packaging can represent as much as 40 per cent of the selling price of products in industries such as the cosmetic industry. New packaging can be expensive to develop, adding to the cost of products.

• Production Footprint:Products with more packaging also use more resources in production. According to Green Living Tips, around 12 million barrels of oil are used to make shopping bags for U.S. consumers each year. Over 10 million barrels are used to make water bottles. Production also requires energy, usually sourced from burning fossil fuels, and may produce air and water pollution.

Disadvantages - 2• Landfill ImpactPackaging is responsible for significant portions of the waste stream. According to the Ashland Food Cooperative, packaging is responsible for about one third of the municipal waste in the United States. Some waste can be recycled, but many materials are not appropriate for recycling. Post-consumer recycled content is often usable only in specific contexts. Much of the waste produced by packaging ends up in a landfill.

Types of Packaging• Packaging may be described in relation to the

type of product being packaged: medical device packaging, bulk chemical packaging, retail food packaging, military materiel packaging, pharmaceutical packaging, etc. It is sometimes convenient to categorize packages by layer or function: "Primary", "Secondary" and “ Tertiary” :

• Primary packaging is the material that first envelops the product and holds it. This usually is the smallest unit of distribution or use and is the package which is in direct contact with the contents.

• Secondary packaging is outside the primary packaging, perhaps used to group primary packages together.

• Tertiary packaging is used for bulk handling, warehouse storage and transport shipping. The most common form is a palletized unit load that packs tightly into container

Tertiary Packaging

PrimaryPackaging

Secondary

Packaging

Harmony between various elements of Packaging

The various packaging elements must be harmonized. The packaging elements also are harmonized with decisions on pricing, advertising, and other parts of marketing program.1. Testing PackagingAfter packaging is designed, it must be tested. • Engineering tests To ensure that the package stands up under normal conditions.• Visual testsTo ensure that the script is legible and the colors harmonious.• Dealer testsTo ensure that dealers find the packages attractive and easy to handle.• Consumer testsTo ensure favorable consumer response.

1. Green PackagingDue to increased consumer awareness, companies also have to pay attention to growing environmental and safety concerns about packaging. Packaging creates a major problem for solid waste disposal, requiring huge amounts of labor, energy and expense. The traditional “three R’s” of reduce; reuse, and recycle are part of a waste hierarchy which may be considered in product and package development.

2. Innovation Packaging:Packaging innovation over the years has resulted in packages becoming resalable, tamper-proof and more convenient to use (easy-to-hold, easy-to-open, or squeezable). Innovative packaging helps a great deal in increasing the sale of product. So company should try its best to develop an innovative package.

Packaging DecisionsFrom the perspective of both the firm and consumers, packaging must achieve a number of objectives:• Fulfill the objectivesPackaging identifies the brand. It facilitates product transportation and protection. It assists at home storage and aid product consumption. It must be confirmed to develop an effective package that these objectives are fulfilled.• Package’s Size and ShapesIt has to be decided that what the exact size of package is and in what shapes should be the package which is both attractive for the customers and convenient to use.• Package’s Color, text and graphicsTo attract the customers, the package should have an appealing color, text and graphics on it. Color must be carefully chosen: Blue is cool and serene, red is active and lively, yellow is medicinal and weak, pastel colors are famine and dark colors are masculine. Similarly, text and graphics also have a great psychological impact on customers and should be chosen carefully.

Packaging for Consumers' needs

• Attention grabbing: A distinctive, unmistakable and eye-catching appearance is a signal at the point-of-sale to which all consumers respond positively. Whatever stands out clearly in the monotonous competitive environment scores points with the consumer. Think carefully about where you want your products to be most visible.

• 88888Multi-sensory appeal: Packaging which appeals to more than one sense attracts greater attention, intensifies perception and stimulates interest in buying. Packaging that can be felt, smelled and heard as well as looked at wins the customer's favor, which often means that he will be prepared to pay a higher cost for that product. Innovative packaging makes new products stand out over trusted, familiar ones.

• Functionality: Product and aroma protection, hygiene and tightness, environmental responsibility and practical handling are just as important as ideas that improve comfort, such as closure mechanisms, for example.

• Added value: Cross merchandising and buy-one-get-one-free promotions increases value-for-money perception in the mind of the consumer.

Packaging Strategies

• 1. Make your product stand outFirst of all, we have to recognize that our products are competing for a few short seconds of attention. In any one supermarket there are around 40,000 different products on display and the average shopper spends no more than an hour in store during their weekly shop. So you'd need to register more than 10 products per second if you were to see every product! The first and most important rule, therefore, is to get your product noticed - it must stand out rather than blend in.

• 2. Break with conventionNext time you go shopping, take a look at the humble OXO pack and see how something so small fights above its weight. Similarly, think about breaking the rules of a category. Innocent is perhaps an often and overused example but still a great one. When it launched into the highly colorful category of soft drinks, it went with a very white pack as opposed to the category norm of using pictures of fruit with similarly vibrant fruity graphics. Finally, shape is the first thing the human eye recognizes, so unique packaging shapes are a great way to help your product stand out - think Perrier and Toilet Duck.

• 3. Products with purposeWe are seeing a consumer backlash against big corporate fat cats and a growing desire to support real brands with real beliefs and values. What this means is that brands big and small need to have a clear purpose beyond price and demonstrate that they are good corporate citizens. Take the bottled water market, for example, which has recently come under fire from government ministers for being environmentally and socially unethical. Bottled water is shipped around the world, adding to the issue of climate change, when most of us could make do with tap water, especially when so many people in countries such as Africa go without. Cue Thirsty Planet, a new water brand that provides free drinking water for an African child for life, when you purchase just one multi-pack of the water.

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• 4. Add personalityBuilding on the idea of leveraging a brand's authenticity, the next step is to bring packs to life with a strong personality (what we call 'authentic attitude'). In short, think about language and imagery that helps to tell an engaging story rather than just being matter of fact. Filthy is a new brand of highly indulgent chilled chocolate desserts and its name gives consumers permission to be unashamedly naughty.

• 5. Feel-good factorWe live in a frightening world, a world of anxiety fuelled by the media's exposure of terrorism, food scares, global warming, child abuse and abduction. An antidote for this is to make people smile and/or remind us of the time when life appeared to be safer. Anything you can do to make your designs resonate with today's anxious consumer will give you an advantage. Competitors may well copy your product specification, but it's much more difficult to copy how your brand makes a customer feel. So packs that bring a smile to faces, like our own new tea brand Make Mine a Builders, complete with builder's cleavage on the 'bottom' of the pack, are the order of the day.

• 6. Keep it simpleWith so much to say about health, nutrition, cooking or usage instructions on your products and yet a desire to cut back on the amount of packaging, the key is to keep things simple. Going back to the principle of 'standout', make sure you don't compromise legibility by overcomplicating packs with too many messages. In a one-second world, less is definitely more.

• 7. Tiered brandingThe own-brand strategy we developed with Coles supermarket in Australia designed to ensure that their stores provide customers with products that meet their everyday needs in every way. The new own brand hierarchy involves three distinct tiers: cheapest on display, mid tier and premium tier. The mid-tier proposition, "You'll love Coles...", is based on the principle that consumers will love Coles products because they make their lives easier. Coles will help them eat better, save money, save time and reduce waste. An important element of the new offer is the use of a product advocate - real customers and colleagues who appear on the packs to highlight the key benefits of the product and give reasons to buy.

• 8. The cost of transportRetailers and consumers are ever more obsessed with the green agenda. There's nothing new about recycling, but there are a number of new dimensions to green packaging that relate to transport. In simple terms, the challenge is to 'ship less air'. In other words, you need to make sure your packaging is as minimal as possible because the more products you can get on a pallet, the less trucks will need to be on the road. As well as saving on CO2 emissions, these measures also save on transport costs.

• 9. Speed to shelfIf there are 40,000 different packs in a store then every second counts in the delivery and stocking process. Just think how many man-hours per day you would save by making your outer shipping case also your 'display on shelf' case. If you can save a retailer just 10 seconds per pack in its time to decant from warehouse to shelf, you will also certainly gain grace and favor too.

Conclusion :

All in all the comparison of where our everyday packaging comes from is rather interesting and just shows that ideas and inventions from centuries ago are still being used and developed upon due to the effectiveness and uses that several packaging types and methods have. Also it just shows that ideas no matter how small can be a revelation for today’s and future society.