Packing And Labelling Decisions
Most marketers treat packing as an element of product strategy. Packing can be define as
"the activities of designing and producing the container or wrapper for a product."... "Labelling is part of packing and consists of printed information that describes the product, appearing on or with the package" (Philip Kotler and Ronald E. Turner).
Physical products require packing decisions to create such benefits as protection, economy, convenience, and promotion. Physical products also require labelling for identification and possible grading, description, and promotion of the product. Also laws require sellers to present certain minimum information on the label to inform and protect consumers.
Innovative Packing Strategies
The fact is, the number of consumers willing to pay a premium for products that save time and are more convenient will continue to grow in the next decade. Therefore, effective execution of packing will be the key to tapping the potential of this market.
Sue Bassin distinguishes four strategies that can boost sale and profits through innovative package design:
- Convert to a different technical package for an existing product.
One of the quickest approaches to developing an innovative successful package is to put an existing product in a different package. For example, by putting soup in a package shape like a brick, Campbell Soup Company can offer a product that is lighter in weight and more portable that cans. These packages increase convenience and lead to lower costs.
- Develop a new package for an existing product that better solves key marketing problems.
An existing product in an innovative new package can bring new sales to the company. Moreover, repacking an existing product can solve problems with existing product delivery systems. By creating a more convenient portable product, a product manager can obtain better margins.
- Choose the best package for a new product, looking outside your category industry.
A third strategy to get new products to market is to take a new formula or new product and select an existing package that can be adopted to the product. However, to introduce a new product in an existing package successfully, one must understand how the product will be used and what will be most convenient from the consumers' perspective. Moreover, packing design should be used to help communicate the innovation.
- Develop the new product and new package together.
This approach helps to optimize the overall performance to optimize the overall performance of the product because it is in a package designed to deliver exactly what is required by the task.
These four approaches to new packaging enable a company to stimulate the market, establish a position, and gain a reputation for leadership.
Moreover, innovative new packages and products can even offer an opportunity to create whole new businesses, and therefore new sources of sales and profits.