Page 601 - Encyclopedia of Business and Finance

eobf_P 7/5/06 3:18 PM Page 578

Packaging

cern is to protect the product from tampering and, in
some cases, shoplifting.
Size, weight, dimensions, and stackability are just a
few of the factors that need to be considered in designing
packaging for easy and efficient handling of the product.
Some automated product handlers have limitations that
may influence the package dimensions or weight. How
efficiently the product uses allotted space in the tractor
trailer can reduce shipping costs. How much space a prod-
uct uses and how easy it is to stack on the shelf may deter-
mine if a retailer carries certain products. These are just a
few of the logistical concerns that need to be considered
when creating the packaging for a product.
Certain basic identification and information will
need to be included on the various layers of packaging
required for a product. The shipping cartons will need to
identify such things as the product, the brand/company,
the quantity, handling instruction, and any dangers asso-
ciated with handling the product. The primary package
and/or the secondary package, if that is what the con-
Prescription bottles and colorful rings make up the ClearRx sumer sees on the shelf, will need information such as: the
prescription system. The bottle is flattened with easier-to-read
lables and rings that can be color-coded for each family member. brand name; quantity; contents or ingredients; suggested
AP IMAGES usage and instructions for use; any legally required infor-
mation; “use-before” dates; and the Universal Product
Code.
dozen boxed tubes of toothpaste to a carton). It is easy to Finally, the marketing and promotional function
see that, in some cases, the cost of packaging a product should definitely be considered in designing the primary
(toothpaste) may far exceed the value of the actual prod- product packaging. This function is concerned with two
uct (the paste). characteristics of the package: attracting attention and the
marketable attributes of the product. It is vital that the
product’s package attract the attention of shopping con-
FUNCTIONS OF PACKAGING sumers. The use of color, shape, size, and graphic design
Packaging is designed to serve one or more of several func- are some of the common elements used to attract atten-
tions: product protection; easy and efficient handling and tion.
storage; providing useful identification and information; There are four situations when the ability of the pack-
and contributing to the marketing and promotional age to attract the attention of shoppers is beneficial. In
efforts. Products need to be protected from rough han- some cases the design, particularly the color graphics,
dling, the environment, and spoilage. Most products need allows for more efficient shopping by consumers who are
to move through a marketing channel from the end of the looking for a brand they normally purchase. Shoppers do
production line to the home of the final consumer. A not initially read brand names, but rather they look for
number of different people and machines will physically the familiar package and then confirm the brand name
(such as Tide in the bright orange box). Being able to find
handle (or mishandle) the product as it flows through the
preferred brands quickly will significantly reduce the
channel, which will likely involve loading and unloading,
chance of shoppers buying competing brands.
transporting, storing, and stocking the product on the
The second situation is when the package design is
vendors’ shelves. The shipping containers must be
recognized from previous exposure of the consumer to
designed to withstand all of the rough handling to which promotional advertisements. Seeing the package on the
a package and product may be exposed.
shelf could cause consumers to consciously, or subcon-
The environment poses other dangers to products. sciously, recall a favorable attitude toward the product and
Light (which affects milk and beer), moisture (chips and increase the likelihood of purchasing the product. It is also
dried soups), temperature (ice cream and meats), and a common occurrence that the shopper wants to buy a
excessive movement (soft drinks) are a few of the environ- given item but is not familiar with any of the brands. The
mental concerns for certain products. Another major con- package then becomes the primary source of informa-

578 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION