* 1.
Introduction and Meaning
Packaging is an important product related decision. Traditionally, the function of packaging was to
protect the product, but nowadays packaging has also become a promotional tool. Packaging also
helps the consumer in product identification. Package is a wrapper, container, box, can, crate, jar,
tube, drum, etc. in which product is enclosed. Package prevents liquid product to flow out, maintain
freshness and quality and helps to prevent any adulteration. Good package serves as a silent
salesman. Some definitions of package are given below:
(i) According to Philip Kotler, "A package may be a specially designed wrapper, box, carton, can,
crate, bottle, jar, tube, barrel, drum or pallet for convenient distribution of product." (il) According
to Mason and Rath, "Packaging is the use of containers and wrapping material plus decoration and
labelling to protect the product, to help and promote its sale and make it convenient for the
customers to use the product."
(ill) According to William I Stanton, "Packaging may be defined as the general group of activities in
product planning which involues wrapping/packing the produci, designing arid producing the
containers or wrapper for a product.
Packaging helps in differentiating the product from competitors' products. Labelling is not possible
without packaging. It helps in maintaining freshness and quality of the product. Packaging prevents
adulteration of product. It keeps the product safe and in good condition from the time of production
till the time of consumption. It is essential for transportation and handling of goods. It is a silent
salesman.
* 2. Functions of Packaging
(1) Protection: The package keeps the contents of product fresh, clean and moisture-proof. It
protects the product from leakage, spoilage, breakage, theft, evaporation, insects, dust, sun-heat,
adulteration, etc. in the process of movement of product from one distribution channel to other
distribution channel.
(2) Convenience in Handling: Packaging facilitates handling, display, storage, transportation, loading,
unloading, etc. Packaging provides convenience to manufacturers, wholesalers, retailers and
consumers in handling the product. It also helps the consumers in using the product. For example,
tear tape, squeeze bottles, pouch packaging, aerosol cans, small jars with pores, pult tubes,
wrappers, etc. provide convenience in using the product to ultimate consumers. In case of food
processing industry, the microwave friendly container, in which food is sold, can be used for cooking,
and after cooking the food, it can be served in same container.
(3) Facilitates Labelling: Labelling is just not possible without packaging. Label is an informative
tag/sticker attached to package of product. Label gives verbal information about the product like its
contents, price, brand name, manufacturing date, expiry date, method of using the product, licence
number of manufacturer, address of manufacturer, etc. Without packaging, labelling is not possible.
(4) Identification: Wherrgoods are stored in warehouses, these need to be identified as to their type,
make and also need to be clearly distinguished from one brand to another. This can be Mop9 done
by packaging. Packaging facilitates identification. Product of one manufacturer can be easily
identified from competitor's product with the help of unique packaging. Packaging of Y its one
product is different from other products. The colour combination, material used in packaging,
graphics, etc. are unique. So even illiterate persons can identify the product with the help of unique
packaging.
(5) Promotion: Packaging is a silent salesman. Attractive packaging attracts retailers and end-users.
At the initial stage, it is package which attracts the consumers. Good packaging helps to promote
sales. The attractive colourful package, design, picture, printed informative matter, colour
combination, etc.- all these aspects of packaging help to attract customers and thereby promote
sales.
(6) Economy in Use: Good packaging increases the economic life of product. The consumer can
extract only that much quantity out of the packing, which is to be used at a time. So its wastage can
be avoided. Otherwise, unpacked product will go waste due to exposure to moisture, dust, heat, etc.
(7) Check on Adulteration: There is minimum possibility of adulteration of goods if these are
properly packed. So the consumers get original product.
(8) Self-Service: The concept of self-service has become very popular with the development of malls
and organised retailing. Instead of display of goods by salesman, the well packed product itself
speaks to customer. Package, alongwith its label, is self-explanatory of features of product. It works
like a silent salesman.
1 3. Packaging Considerations in International Marketing
(1) Legal Regulations: Packaging regulations and standards are different among various nations of
the world. Safety standards and material to be used in packing and packaging are defined differently
in different nations. In developed countries, packing norms are strict.
International marketer has to keep in mind the packing regulations of the country where it
intends to export the goods.
(2) Recyclable: Packaging material should be easily disposable and recyclable.
Non-bio-degradable and non-recyclable packing material causes serious environmental hazards. For
example, some of the plastic materials are non bio-degradable. Such materials should not be used
for packing goods. In many countries of the world, the use of such harmful packaging material is
banned.
(3) Weather and Climatic Conditions: International markets are spread over many countries of the
world. There are extreme variations in weather and climatic conditions in various nations. Packaging
should be designed considering the weather and climatic conditions of the destination country.
Further, the goods have to be transported usually through sea route. So weather conditions in the
sea may be unfavourable due to excessive humidity, rain, storm, etc. It may cause extreme
dampness thereby causing damage to basic product. So packing should be designed to protect the
basic product from such unfavourable weather conditions.
(4) Packing Specifications: Some international buyers/shipping companies/insurance companies (for
insurance of goods in transit) give their own specifications regarding quality of packaging. The
insurance company may not accept the claim of loss on account of damage of goods in transit, if
packing specifications defined in insurance cover are not complied with.
The shipping company may also refuse to take delivery of goods if packing is not as per
specifications. Even the importer may also refuse to accept the goods if these are not packed
according to directions. So packing specifications given by foreign buyers/shipping
company/insurance company must be considered seriously.
(5) Convenience in Handling: Packing should done in such a way that it can be handled easily, i.e., it
can be pushed, pulled, dragged, rolled and picked up without much difficulty.
Easy to handle packets/bundles can be conveniently loaded, unloaded, moved from one place of
ship to other. The liquids, semi-liquids like shampoo, toothpaste, cream should be packed in stand-
up pouch. Heavy consumer products like ghee, rice, should be packed in containers with handle for
the convenience of ultimate consumers.
Socio-cultural Factors: The socio-cultural variables of host country like customs, traditions,
perception of colour, symbols, etc. should also be considered while taking packaging decision.
Different colours, symbols have different perception/interpretation in different countries. For
example, in some countries, red colour packet gives indication that the packet contains some
dangerous products. In Germany, green dot on the package indicates that package is recyclable and
is easily acceptable in the market.
(7) Retailing Characteristics: If the product is sold through self-service retail outlets then packaging
design should be very attractive as these work as point of purchase (POP)
Advertising within the store.
(8) Cost: Better quality of packaging results in increase in cost of packaging which in turn leads to
increase in price. The international marketer has to maintain balance between packaging quality and
packaging cost. If the goods are to be sold in under-developed countries, where most of the
consumers are price conscious, then efforts are made to reduce packing/packaging cost, so as to
keep a check on final price of the product. On the other hand, if products are to be sold in developed
nations, where consumers are quality conscious and are ready to pay even higher price for products
then better quality packaging material is used even if it inflates the final price of product.
(9) Flexible Packing: In international marketing, goods are to be transported to other nations
requiring custom clearance. Sometimes, custom authorities require the packets to be opened for
physical checking of goods. After physical examination, the goods are to be packed again.
So the marketer should pack the goods in a flexible manner so that these can be opened and packed
again without any harm to goods.
10) Labelling Requirements: Packaging and lebelling are highly related as label is pasted/printed on
the package itself. In some countries, detailed information is required to be provided on the label of
product. Further, in some countries, information on label is to be compulsorily provided in two
languages; like in Canada, for some consumer goods, label must be in both English and French. So in
such cases, size of package should be large enough so that detailed label can be pasted/printed on it.
(11) Physical and Chemical Features of Product: Physical features of product include features like
shape, size, weight, volume, rigidity, fragility, etc. Chemical features include effect of moisture, light,
temperature, bacteria, fungus, etc. on the product. The packaging of product should be designed
considering the physical and chemical features of the product.
The product may be solid, liquid, semi-solid, in powdered from, in gaseous form, etc. All these
different types of products need specific type of packaging. For example, perfume spray,
mosquito/cockroach spray need specific type of compressed packing with hole in the lid to release
the contents as per requirement. Similarly, marine products like fish and sea food are packed in
thermocol boxes in which ice-slices can be packed along with the product.
Electronic and electric goods are packed in air bubble pouches. These bubble bags protect the
delicate products against transit and storage breakages.
4. Types/Methods of Packaging
(1) Consumer Packaging: It refers to package in which ultimate consumer actually gets the product.
Consumer packaging is done in different sizes viz. large, medium, small as ultimate consumer buys
the goods in different quantity depending upon the family size and budget.
For example, shampoo, oil, face wash, toothpaste, etc. are available in different quantities.
Consumer packaging must be attractive and easy to handle.
(2) Transit Packing: In international marketing. goods are transported from one country to other
country often through sea route. So goods are to be packed in a way that these are not damaged in
transit. So products require an extra cover/outside package in which it is transported. It is called
transit packaging. It lays stress on safety and not on attractiveness.
Sacks, drums, cartons, wooden cases, tins, jute bags, casks, boxes, etc. are used for transit
packaging.
(3) Family Packaging: Under this method of packaging, marketer uses same type of
container/wrapper for all of its products. Colour, material used in packaging, shape, design, etc. are
same for all the products of manufacturer/marketer. It gives easy recognition to family brands.
When the marketer follows the policy of family branding then family packaging gives better meaning
and recognition to it.
(4) Multiple Packaging: In this method of packaging, small sized inter-related products are packed
together in the same wrapper/container; like shaving set, consisting of razor, shaving cream, shaving
brush, blades, after shave lotion, is packed in a single container. It helps in selling related products
together. The retailer is relieved of packing and labelling every unit separately. Similarly, in case of
baby care kit, make-up-kit, multiple products are packed together.
(5) Disposable Packaging: Under this method, goods are packed in such containers as are supposed
to be disposed off or thrown away after use. Such packaging is also called 'Use and Throw Away
Packaging'. For example, soft drink packed in iron tin, frooti in tetrapack.
(6) Re-use Packaging: Under this method, container can be re-used after consuming product of
packet. It offers additional benefit without any extra cost. If goods are to be marketed in developing
nations, then such packaging has special significance.
(7) Product Line Packaging: When all the products marketed/manufactured by a business unit,
belonging to same product line are packed in a similar manner, using similar packaging material with
similar appearance, it is called product line packaging. It is a type of family packaging. In family
packaging, all products of manufacturer have same packaging material and design; but in product
line packaging, products of one line (same natured products) have similar packaging design and
packaging material.