Strategic Management: Formulation and Implementation

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:

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.