Successful Packaging and Consumer Perception Term Paper

Executive Summary

Packaging is one of the most important tasks of marketing a product. It is the art of protecting the product from malfunctioning of outside and presenting the product to the customer attractively. Packaging is a sensitive issue not only for marketers but for the customers as well. Good packaging system has the functionalities of identification, protection, storage support, containment, conveying of information, advertising tool and consumption aid. Introducing good packaging techniques makes a number of companies successful. Al Ain Dairy and Al Marai are two of the local Arab companies who use better packaging of their products. Apple Inc and Cadbury Schweppes are the two international companies who also became successful through their exclusive packaging. It is obvious that good packaging is what attracts consumers in the first ranks, this is why a descriptive mini-marketing research is needed in order to find out whether a nice packaging is indeed what attracts the consumers most of all.

Introduction

Marketing is an important but a rather difficult & challenging part of business. The production, introduction & promotion of a product are loosing their historical considerable attributes because of the growing pressure of diversified and sensitive consumer needs. Production and Marketing becomes customer oriented and businesses are becoming customer driven. To be a high-qualified and efficient marketer, one has to use innovative and diversified types of marketing tools worldwide. Packaging is one of those sectors of marketing which are emerging as key features for appropriate, timely and strong introduction and promotion of products. Organizations implement various types of packaging technologies to become successful in marketing. Effective packaging not only attracts customers but gives certain competitive and comparative advantages in the market. For the consumers, irrespective of their age and ethnicity, the packaging of the products seems to be more important than their contents. Since the consumers are apt to buy a product with a more alluring packaging, organizations should pay special attention to the packaging segment.

Definition of packaging

Packaging is providing a product with an appropriate covering which would protect it from being wasted, rotten, damaged, or broken, in other words, in defective condition, due to the influence from the outside. It can be considered as a sort of a skill to place, introduce or present a product. Warehousing, distribution and selling of the product may result in its being spoiled or damaged that’s why reliable packaging is what should be taken into account first of all. Packaging can be also defined as the activities of making a perfect, suitable, innovative and differentiated container or packet for the purpose of designing and promoting a product.

Packaging

Kotler & Keller (2006) stated that packaging has mainly 3 levels and these are primary, secondary and tertiary or shipping packaging. If the packaging example of full cream milk powder is considered, the primary packaging is the foil packet of the milk in which the milk powder exists. Secondary packaging is the cardboard or paper or tinned packet, which the foil pack of the milk powder consists of. The shipping packaging is the final packet or final alignment of the product for the purpose of transportation. Therefore, the shipping packaging is the collection of 10 to 20 card boarded milk powder packets packed together in a carton or in a simple polythene pack.

Levels of Packaging

Packaging is a combination of 5 basic activities of producing a product or service. Transporting or delivering, warehousing or storing, legal support, selling and using – all these five particulars are effected by packaging. In the path of transportation any damage or stealing or wastage can happen. If the product has an appropriate packaging, the wastage or damage in the warehousing or during the transportation can be avoided. Legal support means the help regarding some patent or copyright of the product. Every product and every service have legal existence. If the legality of a product or service is threatened good-packaging can help to overcome this threat because it contains the necessary information about the product and its manufacturer. In case of selling, good-packaging technique has a role of an advertiser drawing the consumers’ attention to the product. It provides the customer with necessary information about the product, namely its and what it consists of. In terms of using the product the packaging may help to make the consumption process easier.

Main Activities of Packaging

Packaging of product and packaging of service is almost the same but there may be some differences. The first one helps to suggest an imagery or message of likeness of the product inside. Its function is to get some sensory or emotional reaction from the customers. In service packaging there exist other types of features like the internal environment of the service place. The delivery process of the service is also a significant ingredient of packaging. It can be described as the way to present a product and service for getting some functional benefits, like protection, attention of customers and so on.

Functions of packaging

From the ancient times of marketing packaging is being used as a helping tool for the successful marketers. In some cases packaging is not only helpful but also a major need for marketing a product. The strongest functionalities of packaging are described bellow:

Identification of product: Kotler & Keller, (2006) argued that it is a tool by which customers can identify a product/service. In the time of purchase, customers search for a specific product or brand items and it helps them to find the suitable product because it forms the brand name.

Protection of the product: Kotler & Keller, (2006) also argued that the packaging works as a physical protection from the outer environment for the product. It means protection from density, stress, vibration and so on. A product can face these physical problems in many stages of marketing and production system. Environmental protection is another work done by packaging such as protection from heat, water, extra existence of oxygen or other chemicals. The cover, which is a component of the packaging, is what mainly gives the protection.

Protection types

Making storage aid of product: Packaging is perfectly usable as a storage tool. A product can be stored in a packet, like in a cardboard packet, safely enough. While the product is being preserved in a place, the packaging, especially the packet of the product, helps it to be stored in a right and safe way. Again after the purchase, it helps the consumers to preserve the product for the maximum possible period of time.

Containment aid: In some way, packaging may help a package of similar products to be sold together. For example, a packet of 100 pens is much easier to handle than, for instance, one pen separately. Containment functionality is very important for the liquid and powder type products. To handle or deliver the liquid/powder products cardboard or foil pack is far more convenient.

Conveying of information: Zikmund, W. G., (2003) asserted that to express information about product, good packaging is helpful. This information may convey what the product is like, what ingredients it consists of, why this product is unique, as well as data about the consumption process, storage instructions, handling cautions, production and expiry time, brand name, production related information, product price and so on.

Advertising tool: The cover and the packet of the product, in case they are good, can become a way to attract the customers. They can advertise through descriptive and persuasive sentences. Consumer’s need of getting information about the product can be satisfied by the packet or the container of the product. Thus, giving the product a better cover the marketers can attract more customers and increase the number of sold products.

Consumption aid: Packaging often contains necessary information about using the product. It can be useful for those consumers who bought the product for the first time and do not know exactly how to open it or what is the exact function of it. Most of the packages contain descriptions of how to open the product in the right way and how to use what’s inside of it as well as cautions in case the product is misused.

Local Example

Kingdom of Saudi Arabia (K.S.A.) is a well-known and famous country of Arab peninsula. It has 2,240,000 square kilometers. Its population is about 12,304,000 people and it has a unique nature of doing business. Companies of all over the world find it suitable for operation. In Saudi Arab, there is a great number of Local companies. For the research in this term paper two companies, Al Ain dairy and Al Marai dairy have been selected.

Packaging of AL Ain Dairy

Al Ain Dairy is a UAE based company established in 1981. At the beginning it was started with only 200 milking cows but now it has almost 1000 milking cows and 230 milking camels.

It manufactures such products as Milk, Flavored milk, yoghurt drinks, juices, camel milk, yoghurt, healthy products, value added products and coffee drinks. The packaging of each of these categories is divided into sub-categories for the purpose of convenience for the consumers. The packaging is further divided according to volume differences. Packaging of each kind of product provides the consumer with such information as the identification of the company name and the product’s category. For example, if the category milk and subcategory full cream milk is considered, the label is doing the job of identification that this is a product of AL-Ain and this is full cream milk. The container of the milk is the most attractive packaging tool. The container of 2litre category is the highest one which has a handle in the upper side of the container. The container is strong enough to protect the liquid from pouring out. The label of the container provides all of the information including production and expiry date, price of the milk and the volume of the milk inside. Considering the category of yoghurt, it can be identified that the container is quite different from the liquid products. The container is also attractive and it has a convenient feature of easy and quick opening system which makes the consumption of the product much easier. However, the other liquid products are stored in a different bottled container¹.

Al-Marai Dairy

Almarai is the largest dairy company of the world. The company is basically based in Riyadh, but it has branches and businesses in almost all over the Arab peninsula. Product categories of Almarai are Zady fresh fruit dairy snacks, dairy liquids, cheese, labneh, ghee, yoghurt, child food, dessert, juice, general food and sub-categories of the products. The packaging strategy of Al-Marai accounts for its products’ strong position in Saudi and global market. They package their products according to the consumer preferences. For instance, dairy liquid section has subsection of dairy milk which is also divided into other sections like fresh milk, skimmed milk and so on. The container of the fresh milk shows clearly these sections and also the identification that this is a product of Al-Marai. In the lagan section, under the dairy liquid category, there are 4 other convenient categories. The low-fat lagan is available in 4 different sizes. These size differentiation dimensions are also attracting the different type of consumers and gain the functionality of being a good packaging instrument. Al-Marai uses their innovative ideas in packaging and gives different looks to different products. They have foil packed product, tinned product, hardboard cover and plastic containers. The similar thing here is the uniqueness in packaging in each case. The containers have relevant information which is frequently searched by the consumers. A unique feature is that in case of foil packets, the opening system is mentioned at the top. It is an important example of the efficiency of Al-Marai’s good-packaging that shows that they are helping the customer to open the packet².

International Example

For International example two companies, Cadbury Schweppes and apple Inc., have been selected.

Cadbury global

Cadbury’s main featured products are chocolate or milk flavored solid food items. The renowned products of Cadbury are- Bubbaloo, Bubblicious, crème egg, Cadbury dairy milk, Clorets, Dentyne ice, Eclairs, Flake, stimorol, the natural confectionery, trident and so on.

COnsidering the most famous brand Cadbury dairy milk, it should be noted that the company is doing good packaging. It is easily identifiable from the packet that the product is from Cadbury global and this is the dairy milk chocolate. The packing of the chocolate is suitable for the instant consumption after purchase. It also contains relevant information about the ingredients, expiry date and price. The packet saves the chocolate from being spoiled and helps in storing the product. The packaging of other products helps to differentiate from not only similar products but also from the products of the same company. The packets of the products are always attracting the consumer and thus play as an advertising media. They maintained re-cycling procedures and use 100% environment friendly materials which are safe for health. The packet has convenient to handle and open and it is also easy to store and consume it.

Apple Inc

Apple inc. is the one of the pioneers in the world computer and electronics market. These days computers and computer aided or containing electronic devices is widespread and available. The combination of quality, innovativeness and availability made Apple products so popular. The company produces various types of products such as apple TV, Computer, Server, iphone, itune, ipod, Mac-operating system and various types of software. It is necessary to mention that one of the first reasons why Apple products are so popular is that their packaging system is unique. Apple has made the packaging process an art of marketing. Taking the ipod as an example, it would be possible to see functionality of packaging. The unique shape of ipod is so popular that anyone can recognize an ipod easily. When looking at the ipod more attentively, it can be easily seen that this is a product of Apple. So, the packaging of the ipod works here as an identification tool. In case with the Iphone the proper packaging of the phone distinguishes it from the other products of this kind since namely Apple iphone has unique features of a touch-screen mobile phone. The Mac operating system has the convenient nature of packaging in this category.

From the four examples mentioned above, it can be identified that all these companies became successful in their field through their strong and unique process of packaging. In all the cases, the main functionalities of the good-packaging system were defined and discussed.

Mini marketing research

Problem identification: Find out perceptions consumers have about packaging of products.

Objectives: The objectives of this mini-research are:

• To find out what consumers mean by packaging
• To explore what do consumers think about a packaging of the product should be
• To illustrate the effects of packaging on consumers consumption process
• To demonstrate the effect of packaging for getting a strong position among consumers
• To identify the major packaging facilities preferred by most of the consumers

Research Methodology

Since the research is going to be conducted in order to describe the consumer perceptions about the packaging, the research type used will be a descriptive research. Descriptive research means doing activities to describe characteristics of certain facts. It has to be done for finding answers to the questions stating who, what, when, where, and how did something. The ‘what’-question was of the biggest problem here. The main objective of this research is to find the factors of perception which consumers have on their mind about packaging.

Types and sources of data: Secondary sources of data will be used here. The main sources will be the web sites, blogs or e-books retrieved from the internet.

Consumer’s perception through packaging: In modern-days, consumers are the main driving factors for all business. From time to time, both service and product industries become consumer oriented. In every stage of production of a product consumers play the leading role. Manufacturers along with the successful marketers pay higher attention to consumer’s preference.

Considering the food processing industry as example, continuously fine tuned product packaging is the only issue to balance customer satisfaction. As a member of the society, every consumer wants to see packaging as a friend to the society. They want to take packaging as a protector of the bought product, which will prevent the product from being damaged or being spoiled and save the key nutrients and features of the product. Most of the consumers are price sensitive, so consumers expect the packaging to reduce the cost of not only buying but also carrying, preserving and consumption of the product. Environment friendly nature of packaging is also of a great importance for the consumer. Consumer prefers the packaging that is not hampering or disturbing to the environment. The after usage stage is the closest to the environment. For example, polythene is a harmful ingredient which damages the productivity of the soil if dumped into it. So, consumers prefer the paper or cardboard or foil packets. Packaging is the way to present the product. Consumers want the presentation of the product to be hygienic as well as attractive. If the product’s package does not correspond to these standards, the consumers may refuse to buy the product or will give preference to another manufacturer. Another important demand of the consumers is the presence of relevant information on the packaging. Consumers want all the information regarding the product to be given through packaging system. Price, production and expiration date, key ingredients, way to use, process of preserving and so on are important pieces of information which consumers normally want to know. Convenience is one of the most important factors. Consumers want to buy products which have convenient packaging. Ease of opening, ease of disposal, ease of getting the product, ease of searching, ease of buying, ease of carrying and ease of consumption are the key issues, in which the food industries are now paying their concern regarding consumer needs.

Coles, R., (2000) said that packaging of a product is a source to introduce the brand, the manufacturer, the retailer and the total industry as well. Consumer uses the packaging to assess the quality of the product as a whole. In cases of generic products, packaging is the only way to differentiate the product from the competitive one. Packaging plays a significant role in producing the first impression of the customer. If the packaging is attractive, that will create a positive impression on the consumer and will make them to buy and, perhaps, even repeat purchase. Thus the packaging can create impulsive brand value which leads to brand loyalty of the consumers³.

Findings

From the above descriptive analysis, it becomes obvious that consumers have their own idea about packaging which reflects their expectations about it influencing their consumption process, creating strong positioning and illustrating some key functionality preferred by the consumers.

Consumers have a meaning of packaging in a way that reflects the integration of qualitative presentation of quality products, presence of relevant information, convenient features, availability, and variety, safety of the product and combination of healthy and environment friendliness.

Consumers keep to the point that packaging should be convenient to use and it should contain necessary information about the product. The consumption process is also affected by the packaging of the product. A consumer is likely not only to buy a product but also become a regular customer if the packaging is appropriate and can draw the attention of the consumers. Consumers never pay any attention to a simple or unattractively packaged product.

Conclusion

Taking into consideration everything mentioned above, it can be concluded that packaging is indeed a separate art and having mastered this art the company can reach unbelievable success in the market. This paper has only covered the food and electronics markets but it should be noted that good packaging is helpful for all industries.

Bibliography

1. Al Ain Dairy Farm, (2006), Short History of Al Ain Dairy.
2. Al Ain Dairy Farm (2006), Products.
3. Al Marai (2007). Almarai.
4. Al Marai (2007). Everything you ever wanted to know about Almarai products.[internet]
5. Apple (2009) Apple- iPod+iTunes, Web.
6. Cadbury Schweppes (2008), Annual Report & Accounts.
7. Cadbury Schweppes (2009), Our Brands.
8. Coles, R., Mcdowel, D & Kirwan, M. J., (2000) Food packaging Technology.
9. Kotler, P., Armstrong, G. (2006), Principles of Marketing, 11th Edition, Prentice-Hall of India Private Limited, New Delhi, ISBN: 81-203-2825-6
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