PACKAGING AND LABELING DECISIONS

PACKAGING:

Packaging is the science, art and technology of enclosing or protecting products for
distribution, storage, sale, and use. Packaging also refers to the process of design,
evaluation, and production of packages.

Packaging can also be described as a coordinated system of preparing goods for transport,
warehousing, logistics, sale, and end use. Packaging contains, protects, preserves,
transports, informs, and sells.
Purpose of Packaging:
Packaging has several objectives:
Brand Identification – Packages contributes to instant recognition of the company’s
brand.
Physical protection - The objects enclosed in the package may require protection from,
among other things, shock, vibration, compression, temperature, etc.
Barrier protection - A barrier from oxygen, water vapor, dust, etc., is often required.
Permeation is a critical factor in design. Some packages contain desiccants or Oxygen
absorbers to help extend shelf life. Modified atmospheres or controlled atmospheres are
also maintained in some food packages. Keeping the contents clean, fresh, and safe for
the intended shelf life is a primary function.
Containment or agglomeration - Small objects are typically grouped together in one
package for reasons of efficiency. For example, a single box of 1000 pencils requires less
physical handling than 1000 single pencils. Liquids, powders, and granules need
containment.
Marketing - The packaging can be used by marketers to encourage potential buyers to
purchase the product. Package design has been an 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.
Security - Packaging can play an important role in reducing the security risks of
shipment. Packages can be made with improved tamper resistance to deter tampering and
also can have tamper-evident features to help indicate tampering. Packages can be
engineered to help reduce the risks of package pilferage: Some package constructions are
more resistant to pilferage and some have pilfer indicating seals. Packages may include
authentication seals to help indicate that the package and contents are not counterfeit.
Convenience - Packages can have features which add convenience in distribution,
handling, stacking, display, sale, opening, reclosing, use, and reuse.
Portion control - Single serving or single dosage packaging has a precise amount of
contents to control usage. Bulk commodities (such as salt) can be divided into packages
that are a more suitable size for individual households. It is also aids the control of
inventory: selling sealed one-liter-bottles of milk, rather than having people bring their
own bottles to fill themselves.
 Packaging as a Marketing Tool:

Various factors have contributed to the growing use of packaging as a marketing tool:
Self-Service – Due to an increasing number of super markets where a shopper passes by
many items per minute, it becomes necessary for the products to attract attention and
make favorable overall impression.
Consumer Affluence – Due to rising consumer affluence, consumers are willing to pay a
little more for the convenience, appearance, dependability, and prestige of better
packages.
Company and Brand Image - Packages contribute to instant recognition of the company
or brand.
Innovation Opportunity – Innovative packaging can bring large benefits to customers
and as a result large profits to producers.

Packaging Decisions

Fulfill the Objectives:

From the perspective of both the firm and consumers, packaging must achieve a number
of objectives:
• Identify the brand,
• Convey descriptive and persuasive information,
• Facilitate product transportation and protection,
• Assist 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 Shapes:
It has to be decided that what the exact size of package is and in what shape should be the
package which is both attractive for the customer and convenient to use.
Package’s Color, text and graphics:
To 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.
Package’s Cushion Material:

Cushioning is that part of packaging, which protects the article from damage due to shock
and vibration. The main functions of cushioning materials can be detailed as follows:
• Shock protection against vibration
• Protection against abrasion
• Protection of grease proof and water proof barriers at point of contact with solid
blocks
• Protection of moisture vapours barriers at points of contact with sharp edges of
the article itself.
• Protection of small projections

2
 • Filling of void space in the container
• Other secondary purposes
•
It has to be chosen that what material has to be used for cushioning which fulfills these
purposes and also is affordable to the company.
Packaging Cost: The most important aspect when we look into packaging is the
packaging cost. Packaging cost includes the following:

Material cost: It means the cost of the pack and quality control cost.

• Storage and handling cost of empty packages: This include the handling cost of
bulky packages, heavy materials of construction, drums etc.
• Packaging operation costs: This includes the cost involved in operations like,
cleaning the package product filling – closing, labeling – unitizing, stenciling,
handling cylindrical slums etc.
• Storage of filled packages: This includes the cost incurred to shift the goods from
one form of packaging to another.
• Transportation cost of filled packages: This involves the transportation cost by
sea, air etc. (freight by volume)
• Loss and Damage cost: It is related to the loss and damage during operation,
transportation delivery etc.
• Insurance cost: It varies depending on the vulnerability of package
• Effect of packages on sales: The package that influence on sales.
• Obsolescence Cost: This cost involves when changes in the packaging materials,
packages and labels happen.
• Package developmental cost: This include the evaluation cost, pilot test cost,
field testing cost, consumer research cost, feed back cost,
• final trial cost etc.

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.

Testing Packaging: After packaging is designed, it must be tested. Engineering tests

are conducted to ensure that the package stands up under normal conditions; visual
tests to ensure that the script is legible and the colors harmonious; dealer tests to
ensure that dealers find the packages attractive and easy to handle; consumer tests to
ensure favorable consumer response.

LABELING:

3
 Labeling is any written, electronic, or graphic communications on the packaging or on a
separate but associated label. Sellers must label products. The label may be a simple tag
attached to the product or an elaborately designed graphic that is part of the package. The
label might carry only the brand name or a great deal of information.

Purposes of Labeling:

Labels perform several functions:

Brand Identification – The label identifies the product or brand.

Product Grading – The label might also grade the product; canned fruits are grade
labeled A, B and C.

Product Description – The label describes the product: who made it, where it was made,
when it was made, what it contains, how it is to be used, and how to use it safely.

Product Promotion – The label might promote the product through attractive graphics.
Labeling Decisions:

Brand Name:

It is necessary for the label to contain the brand name. It has to be decided that how
should that brand name appear on the product. It is advisable to scale the logo as large as
possible in keeping with the overall design, while maintaining a control space around the
logo of 1/2 inch.

Label Text, Graphics and Design:

Text, graphics and design on the label must be carefully selected because label in as
important part of branding process. It plays a role in communicating the image and
identity of a company.

Features and Benefits

Listing a product’s key benefits on its label helps support the brand promise and can help
differentiate the product from others, while reaching out to customers seeking those
particular benefits.

Weights and Measures

Weights on measure of a product are important for stocking, inventory and selection.
There are international standards that apply for formatting this information. Identifying
the weights and measures of products helps customers select the appropriate amount of

4
product to suit their needs. While there are no consistent worldwide standards, in the
United States and many other countries, the information is highly regulated by truth-in-
labeling laws.

Instructions for Use

Listing a product’s key benefits on its label helps support the brand promise and can help
differentiate the product from others, while reaching out to customers seeking those
particular benefits.

Package Inserts

Package inserts, which may contain instructions for using a product, are made when the
information cannot fit on the product itself.

Safety Hazards

Possible dangers that could result from misusing a product must be identified on products
to reduce liability and comply with regulations.

Statement of Contents

The contents of a product must be accurately described on its packaging label according
to local regulations.

Nutritional Labeling (incase of Food Products):

Nutritional labeling should clearly state the amounts of protein, fat, carbohydrates, and
calories contained in products, as well as their vitamin and mineral content as a
percentage of the recommended daily allowance.

Additional Labeling:

Additional labeling includes open dating (to describe freshness), unit pricing (to state the
product cost in standard measurement units), grade labeling (to rate the quality level), and
percentage labeling (to show the percentage of each important ingredient).

Labeling Laws:

Labels must comply with local or international truth-in-packaging-and-labeling laws, as

well as regulations on hazard warnings and other declarations.

5
6