1.

SIGNIFICANCE OF THE PROJECT

The aim of this project topic is to find the role of packaging on consumer buying behaviour.
The basic purpose behind it is to find out how such factors act behind the success of
packaging. According to this research I try to find the positive relationship between
independent variable and dependent variables. For collecting the data I had used the
questionnaire.
The significance of the study, its limitations are discussed. The consumer buying behaviour
is dependent variable. The packaging is the most important factor. Packaging elements like
Packaging colour. Background Image, Packaging Material, Font Style, Design of wrapper,
Printed Information and Innovation is taken as predictors.
Due to increasing self-service and changing consumers lifestyle the interest in package as a
tool of sales promotion and stimulator of impulsive buying behaviour is growing
increasingly. So package performs an important role in marketing communications,
especially in the point of sale and could be treated as one of the most important factors
influencing consumers purchase decision. Literature analysis on question under
investigation has shown that there is no agreement on classification of package elements as
well as on research methods of package impact on consumers purchase decision.
By this article we seek to reveal elements of package having the ultimate effect on consumer
choice. Taking into consideration that package could be treated as a set of various elements
communicating different messages to a consumer; the research model was developed and
tested in order to reveal impact of visual and verbal package elements on consumers
purchase decisions.

Objective of the Project:

Important attribute in the research Convenience, Materials, Aesthetic, Information.
To find out these Attributes affect Consumer Behaviour Significantly.
To find out the priority of consumers towards Packaging.
To find out the demand for after-use Packaging and eco-friendly Packaging.
Is there any significant difference between the Variables as there is change in Products?
To find out the Consumer Attitude towards the new Packaging of Preserved Products.
Is Packaging Influence Consumer to switch from one to another Brand?
Are consumers willing to pay premium prices for better packaging?

Hypothesis:
Packaging has least influence on consumer buying behaviour.
Packaging only provides information.
Packaging cannot be used as a tool of marketing.
There is no difference in sales if the Packaging of a particular product is being changed.
People do not purchase eco-friendly Packaged products.

Methodology:
The methodology for the survey on Consumer Behaviour towards Packaging of FMCG
Products is the Questionnaire method where in questionnaire are answered by 50
respondents (including Male and Female respondents) of 4 age groups.
The responses are gathered in a standardized way, so questionnaires are more objective,
certainly more so than interviews. Generally it is relatively quick to collect information
using a questionnaire. However in some situations they can take a long time not only to
design but also to apply and analyse.

Limitations:
The only limitation behind this project was that people were not responding as seriously as it
was expected and it is assumed that people have seriously filled the questionnaires for the
exact result.

2. INTRODUCTION
JO DIKHTA HAI WOH HI BIKTA HAI
The earlier approach to marketing was simple enough to make sure that the product is
visible - on store shelves and through mass media advertising - and it will more or less sell
itself. With the evolution of modern retail, though, the emphasis is shifting to in-store
displays and promotions - probably also because for the first time, the space for such
initiatives is available.
But manufacturers no longer have the last word on what will happen at the store. "Modern
trade has a significant say in promotions, perhaps because it offers far superior results with a
much faster lead time," says Future Group's Mall.

Cadbury India's Sethi points out that retailer are more

open to brand promotions and displays - including
posters, gondolas and danglers - when manufacturers
back up their ideas with shopper insights. "There will be
a

shift

from

traditional

media

to

increased

communication at the point of purchase," he says.

Initiatives that help grow the category as a whole are
particularly welcome, say analysts, since that boosts the
retailers' revenue. And many FMCG companies are predicting that spends on promotion, instore and point of purchase displays will increase significantly from the present 20-30 per
cent share of the marketing budget.
Consumer goods companies need to make several changes in strategy and in attitude, if they
are to achieve the same level of success with organized retail as they have with traditional
formats. Printing barcodes on their products would probably be a good place to start.

Meaning:
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 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. In many countries it is fully integrated into
government, business, and institutional, industrial, and personal use.
The wrapping material around a consumer item that serves to contain, identify, describe,
protect, display, promote and otherwise make the product marketable and keep it clean is
said to be Packaging.
Packaging is more than just a product's pretty face. A package design may affect everything
from breakage rates in shipment to whether stores will be willing to stock it. For example,
"display ability" is an important concern. The original slanted-roof metal container used for
Log Cabin Syrup was changed to a design that was easier to stack after grocers became
reluctant to devote the necessary amounts of shelf space to the awkward packages.

Other distribution-related packaging considerations include: Labelling: It may be required to include certain information on the label of your
product when it is distributed in specific ways. For example, labels of food products
sold in retail outlets must contain information about their ingredients and nutritional
value.
Opening: If a product is one that will be distributed in such a way that customers will
want to, and should be able to, sample or examine it before buying, the packaging will
have to be easy to open and to reclose. If, on the other hand, the product should not be
opened by anyone other than the purchaser, an over-the-counter medication, for
instance--then the packaging will have to be designed to resist and reveal tampering.
Size: If the product must have to be shipped a long distance to its distribution point,
then bulky or heavy packaging may add too much to transportation costs.
Durability: Many products endure rough handling between their production point and
their ultimate consumer. If the distribution system can't be relied upon to protect the
product, the packaging will have to do the job.

History:
From the very earliest times, humans consumed food where it was found. Families and
villages made or caught what they used. They were also self-sufficient, so there was little
need for packaging of goods, either for storage or transportation. When containers were
needed, nature provided gourds, shells, and leaves. Later, containers were fashioned from
natural materials, such as hollowed logs, woven grasses and animal organs. As ores and
chemical compounds were discovered, metals and pottery were developed, leading to other
packaging forms. Packaging is used for several purposes:
Contain products, defining the amount the consumer will purchase.
Protects products from contamination, from environmental damage and from theft.
Facilitate transportation and storing of products.
Carry information and colourful designs that make attractive displays.
For each product's needs, there are good packaging solutions. Though packages are often
taken for granted, they are the result of many years of innovation. A brief review of the more
popular packaging developments is included in this fact sheet:

Paper and Paper Products:

One way of placing packages into categories is to describe them as flexible, semi-flexible, or
rigid. Flexible packaging includes the paper sacks that dog food comes in, the plastic bags
that hold potato chips and the paper or plastic sacks in which we carry home our purchases.
An example of semi-flexible packaging is the paperboard boxes that cereal, many other food
products, small household items, and many toys are packaged in. For many non-food items,
the packaging is made more rigid by formed packing materials that slip inside the box and
hold the product and its accessories or components in place. Forms of rigid packaging

include crates, glass bottles, and metal cans. Cloth or paper may be the oldest forms of
flexible packaging.

Glass:
Although glass-making began in 7000 B.C. as an offshoot of pottery, it was first
industrialized in Egyptian 1500 B.C. Made from base materials (limestone, soda, sand and
silica), which were in plentiful supply, all ingredients were simply melted together and
moulded while hot. Since that early discovery, the mixing process and the ingredients have
changed very little, but the moulding techniques have progressed dramatically.
At first, ropes of molten glass were coiled into shapes and fused together. By 1200 B.C.,
glass was pressed into moulds to make cups and bowls. When the blowpipe was invented by
the Phoenicians in 3000 B.C., it not only speeded production but allowed for round
containers. Colours were available from the beginning, but clear, transparent glass was not
discovered until the start of the Christian era. During the next 1000 years, the process spread
steadily, but slowly, across Europe.
The split mould, which was developed in the 17th and 18th centuries, further provided for
irregular shapes and raised decorations. The identification of the maker and the product
name could then be moulded into the glass container as it was manufactured.

As techniques were further refined in the 18th and 19thcenturies, prices of glass containers
continued to decrease. Owens invented the first automatic rotary bottle-making machine,
patented in1889. Suddenly, glass containers of all shapes and sizes became economically
attractive for consumer products, and from the early 1900s until the late1960s glass
containers dominated the market for liquid products. A typical modern bottle-making
machine automatically produces 20,000 bottles per day.

While other packaging products, such as metals and plastics, were gaining popularity in the
1970s, packaging in glass tended to be reserved for high value products. As a type of "rigid
packaging," glass has many uses today. High weight, fragility and cost have reduced the
glass markets in favour of metal and plastic containers. Still, for products that have a high
quality image and a desire for high flavour or aroma protection, glass is an effective
packaging material. The packaging glass used today is the only type of glass accepted in US
recycling programs.

Metals:
Ancient boxes and cups, made from silver and gold, were much too valuable for common
use. Metal did not become a common packaging material until other metals, stronger alloys,
thinner gauges and coatings were eventually developed. One of the "new metals' that
allowed metal to bemused in packaging was tin. Tin is a corrosion-resistant metal, and

ounce-for-ounce, its value is comparable to silver. However, tin can be "plated" in very thin
layers over cheaper metals, and this process made it economical for containers. The process
of tin plating was discovered in Bohemia in 1200 A.D., and cans of iron coated within were
known in Bavaria as early as the 14th century. After William Underwood transferred the
process to the United States via Boston, steel replaced iron, which improved both output and
quality.
The term 'tin can' referred to a tin-plated iron or steel can and was considered a cheap item.
Tin foil also was made long before aluminum foil. Today many still refer to metal cans as
'tin cans' and aluminum foil as 'tin foil', a carryover from times well past. In 1764, London
tobacconists began selling snuffing metal canisters, another type of today's "rigid
packaging." But no one was willing to use metal for food since it was considered poisonous.
The safe preservation of foods in metal Containers were finally realized in France in the
early1800s. In 1809, General Napoleon Bonaparte offered 12, 000 francs to anyone who
could preserve food for his army. Nicholas Appert, a Parisian chef and confectioner, found
that food sealed in tin containers and sterilized by boiling could be preserved for long
periods. A year later (1810), Peter Durand of Britain received a patent for tinplate after
devising the sealed cylindrical can. Since food was now safe within metal packaging, other
products were made available in metal boxes. In the 1830s, cookies and matches were sold
in tins and by 1866 the first printed metal boxes were made in the United States for cakes of
Dr. Lyon's toothpowder.

10

The first cans produced were lead-soldered by hand, leaving a 1 1/2-inch hole in the top to
force in the food. A patch was then soldered in place but a small air hole remained during
the cooking process. Another small drop of solder then closed the air hole. At this rate, only
60cans per day could be manufactured. In 1868, interior enamels for cans were developed
but double seam closures using a sealing compound were not available until
1888.Aluminum particles were first extracted from bauxite ore in 1825 at the high price of
$545 per pound.
When the development of better processes began in 1852, the prices steadily declined until
1942, when the price of a pound of aluminum was $14.Although commercial foils entered
the market in1910, the first aluminum foil containers were designed in the early 1950s while
the aluminum can appeared in 1959.

Plastics:
Plastic is the newest packaging material in comparison with metal, glass, and paper.
Although discovered in the 19th century, most plastics were reserved for military and
wartime use.
Plastics have become very important materials and a wide variety of plastics have been
developed over the past 170years. Several plastics were discovered in the nineteenth
century: styrene in 1831, vinyl chloride in 1835, and celluloid in the late 1860s.
However, none of these materials became practical for packaging until the twentieth century.
Styrene was first distilled from a balsam tree in 1831, but the early products were brittle and
shattered easily. Germany refined the process in 1933 and by the 1950s Styrofoam was
available worldwide. Insulation and cushioning materials as well as foam boxes, cups and
meat trays for the food industry became popular.
Vinyl chloride, discovered in 1835, provided for the further development of rubber
chemistry. For packaging, molded deodorant squeeze bottles were introduced in 1947 and in
1958; heat shrinkable films were developed from blending styrene with synthetic rubber.
Today some water and vegetable oil containers are made from vinyl chloride. Celluloid was

11

invented during the American Civil War. Due to a shortage of ivory, a United States
manufacturer of billiard balls offered a $10,000 Reward for an ivory substitute.
A New York engineer, John Wesley Hyatt, with his brother Isaiah Smith Hyatt,
experimented several years before creating the new material. Patented in 1870, "celluloid"
could not be molded, but rather carved and shaped, just like ivory. Cellulose acetate was
first derived from wood pulp in 1900 and developed for photographic uses in1909. Although
DuPont manufactured cellophane in New York in 1924, it wasn't commercially used for
packaging until the late 1950s and early 1960s.

A Review:
From containers provided by nature to the use of complex materials and processes,
packaging has certainly changed. Various factors contributed to this growth: the needs and
concerns of people, competition in the marketplace, unusual events (such as wars), shifting
lifestyles, as well as discoveries and inventions. Just as no single cause influenced past
development, a variety of forces will be required to create the packages of the future, but a
very important factor will always be consumer choice. Ultimately, only the packaging that
our society demands is produced. We choose by the products we purchase.
Current packaging designs are beginning to incorporate recyclable and recycled plastics but
the search for reuse functions continues.

12

3. PACKAGING INDUSTRY
History:
In pre industrial society, packaging of food was far from being unknown. It was used for
food storage at home and for transport from the production place, the farm, or workshop to
the local or regional market. Examples are the transport of cereals or flour in bags, tea in
wooden boxes or tinplate canisters, and oils in jars. At the household level, people salted
meat and pickled vegetables and preserved them in jars. In groceries at the end of the
nineteenth century, most commodities were still unpacked and sold in bulk. Products such as
tea, coffee, sugar, flour, or dried fruits were weighed out in front of the customer and
wrapped in paper or put into a bag. In major cities in the 1880s, the milkman came around
with a dipper and can to deliver milk, which was often dirty.

Origin of Modern Packaging and Canning:

Early methods of sealing jars included waxed paper, leather, or skin, followed by cork
stoppers and wax sealers. The beginning of modern food technology started with the
experiments of the French confectioner Nicolas Appert (17501841). In 1795, the French
government offered a prize of 12,000 francs to anyone who could find a way to preserve
food because Napoleon Bonaparte needed to provide the military with a safe food supply.
(The requirements of providing adequate food supplies for armies and navies have been of
great significance in the history of modern packaging and food preservation.) After fourteen
years of experimentation, Appert developed a method for preserving foods by heating.
The food, meat, or vegetables, was first cooked in open kettles and placed in glass jars. After
removing as much air as possible, the jars were carefully sealed with corks wired in place
and then submersed in boiling water.

13

Appert chose glass for the container because he believed that it was air that caused the
spoilage, glass is a material least penetrated by air. It is of importance to note that, in
Appert's time, it was not known that microorganisms caused food to spoil.
The processes involved in food spoilage were not understood until the second half of the
nineteenth century as a result of the work of scientists such as Louis Pasteur (18221895) on
microorganisms (Thorne, 1986).
In 1810 Appert published his prize-winning essay on food preservation and the French
emperor Napoleon awarded the 12,000-franc prize to him. Within a year, an English version
appeared in London, and the new method of preserving food in glass spread quickly to other
countries.

Canning:
Two individuals in England are given credit for applying and improving Appert's invention,
Bryan Donkin and Peter Durand. Bryan Donkin, an associate of John Hall's at his Dartford
Iron Works, realized in 1811 that iron containers could be used instead of the fragile glass,
and in 1812 the factory began to produce canned food such as meat. In 1810, Peter Durand
patented the use of metal containers, which were easier to make and harder to break than
glass jars. (The glass jars used by Appert frequently broke.) He covered iron cans, which
were prone to rust, with a thin plating of tin (which is not adversely affected by water), and
invented the "tin can." By 1813, Durand was selling canned meat to the Royal Navy. The
British admiralty bought these foods as part of the medical stores for distribution to sick men
as well as to supply expeditions.
By 1819 canning had arrived in the United States, but no one wanted canned food until the
Civil War started. In 1821, the William Underwood Company in Boston introduced
commercial canning in the United States. For a long time, people regarded canned foods
with suspicion, and for good reasons. In the middle of the nineteenth century, the foods
produced by the canning industry were as likely to spoil as not because of inadequate
heating techniques (Morris, 1958). Then, beginning in 1868, first in the United States and

14

later in Europe, handmade cans were replaced by machine-cut types. The new technology
made it possible for giant meat-canning firms like P. D. Armour to emerge in Chicago and
Cincinnati. The product, however, was packed in big, thick, clumsy red cans and was not
very appetizing.
The American Gail Borden was a pioneer in food canning. In 1856, he successfully
produced sweetened condensed milk in cans and was granted a patent on the process. With
financial support, the New York Condensed Milk Company was established in 1857.
The demand for condensed milk was at first limited, but during the American Civil War
(18611865) it was introduced on a large scale. The Civil War contributed significantly to
the popularization of canned foods in general (Clark, 1977). The army had to be fed and the
government contracted with firms to supply food. Under difficult circumstances, people
learned that canned foods such as condensed milk can be tasty and nourishing. The
invention of practical can openers at the end of the nineteenth century made cans easier to
open, making them even more convenient for consumers.
For many years, however, the flavour of most canned food left much to be desired. On the
other hand, it should be realized that products such as canned peas and salmon were usually
sold to people living on the American prairies or in the urban slums in Great Britain, most of
whom had never eaten the fresh product. In addition, losses due to spoilage caused by
microorganisms remained high. It was not until the end of the nineteenth century that
research carried out at Massachusetts Institute of Technology made a substantial
contribution to improving the keeping quality, nutritional value, and taste of food products
preserved in cans and glass.
In the early twentieth century, the heavy cans were replaced by those made of lighter
materials, and manufacturers could stress that their products were hygienically processed
and, therefore, safer to eat than the traditionally unpackaged products that had been sold in
bulk. As food technology advanced, numerous chemical additives were developed to control
or speed up food processing and to increase the keeping quality of canned foods.

15

Originally, the nutritional value of food preserved by canning was not high, mainly due to
the length of time required by the heating techniques. From the 1920s onward, however, the
nutritional value of canned foods gradually approached that of the fresh product, thanks to
modern food technology.
Finally, in the 1960s, Reynolds and Alcoa companies succeeded in making all-aluminum
cans out of one piece of metal, thereby solving the problem of the weight of the cans; only
the lid needed to be attached (Clark, 1977). At the same time, the invention of the rip-off
closure and the pop-top lid on aluminium cans made them even more convenient, and made
can openers unnecessary. For consumers, the choice between fresh or canned food became
largely a question of taste, convenience, and preference.

Overview:
The global packaging industry is approximately a $433 billion market. The domestic
packaging market, which is the major focus of this report, represents approximately 29%, or
$124 billion of the global market. The industry consists of four general segments classified
by material type: paper and board, plastics, glass and metal. The largest segments of the
industry are paper and board and plastics, which account for 36% and 35%, respectively, of
the global packaging market.
The packaging industry is a large, fragmented market with thousands of competitors. While
packaging companies serve a variety of markets, the largest end markets for packaging
products are food and beverage. Food packaging accounts for approximately 40% ($175
billion) of all packaging applications. Beverages represent approximately 18% or $80 billion.
These end markets are stable, non-cyclical, steadily growing markets that are consequently
attractive, regardless of the economic climate.
The growth rate of the packaging industry is primarily driven by growth rates and market
trends within various end markets. Growth rates vary from a low of 3.2% for beverages to a

16

high of approximately 5% for health care products. The largest end market, food, has
historically grown at slightly less than 4% annually. It should be noted that sub segments of
an end market may grow at higher rates than the end market itself. For example, while the
beverage market has generally been a low growth market, the bottled water sub segment of
the beverage market has recently achieved very strong growth.
With liberalized trade and economic policy, The Nation has achieved a higher rate of growth
and accelerated the reform revolution. Advance estimate for GDP growth for 2005-06
expects the economy to grow by
8.1 %. Manufacturing Sector is said to grow at 9.4% in 2005-06 compared to 8.1 % in 200405. Agricultural Sector is projected to expand at 2.5 % in 2005-06 compared to 0.3% growth
in 2004-05. Due to FDI in retail sectors, the Retail Sector in India is expected to grow by
20 % in the next 10 years. These developments will give a boost to all the sectors,
Packaging Industry in particulars and open up tremendous opportunities in the packaging
Industry.

Indian Packaging Scenario:

Indian Packaging Industry is worth ` 2,00,000 crores with growth rate varying from
5% in some sectors to as much as 20% in Sectors like Flexible Packaging, compared to
3% in developed countries.

Most of the basic raw materials needed for Packaging Industry such as Paper, Board,
Plastic, Glass, Metal and others are available in abundance.

Packaging Machinery Sector involved in making Packaging Converting Machines,

Product Packaging Machines and allied equipments have adopted modern technology
are exporting the machines even to developed economies of the world.

17

Over 40% of Export is done by small and medium Sector Industries where Packaging
Industry has its major presence.

A number of State of Art Package Converting and Manufacturing plants have been set
up in the country; some of them are exporting to developed countries.

Major Players:

1. In Flexible Packaging:
Overview:

Consists of typically multi-layered laminated sheets or a combination of various

subtracts such as polymers, aluminium fibres and paper.

Market around ` 2,000 crores (US $ 465 mn.)

Laminated sheets are generally a combination of polyester films, BOPP, Polyethylene,

etc. Others - metallic packaging, co-extruded fibres, lamination.

BOPP and polyester film are major raw materials - account for 60% of the raw
materials cost.

Industry:

There are over 150 manufacturers in the sector.

There are nearly 100-150 manufacturers in the small scale industry with capacities <
250 tonnes per annum and 10-15 players with capacities over 1000 tonnes per annum.

18

Major players - Paper Products, Akar Group (Akar Laminates, Sharp Industries,
Vishnu Vijay Packers, Orient Press, India Foils, Flex Industries, RT Packaging,
Mukund Flex Pack, etc.

Players categorised as class A, B & C. Class A caters to premium brands of MNCs and
large companies. Class B caters to lesser known brands - cost conscious segments.

Import duty : Basic - 35%; Surcharge - 10%; Countervailing Duty (CVD) - 16% and
Special Additional Duty (SAD) - 4%

Usage:
Flexible packaging is primarily used in the packaging of food and beverages.
Food sector alone consumes two third of laminates produced in the country.
Personal products such as hair care products, pan masala, tea, coffee and industrial
products account for the balance.

19

2. In Films:
BOPP films first used in 1960 in the packaging industry.
Polypropylene is the basic raw material for BOPP films.
Many manufacturers depend on imports to meet raw material requirement.
Market around ` 400 crores (US $ 90 mn.)
Indias share of the world market of 2 mntpa (million tonnes per annum) is very low <
5%
Share of BOPP improving over competitive materials such as PET and Cellophane.
BOPP may substitute polyester films as it is cheaper to PF, however converters need to
upgrade their technology.

Players:
Segment dominated by Cosmo Film (14500 T) and Gujarat Propak (11500 T).
Others - Sharp Industries, Max India, Supreme Oriented Films, MM Rubber Co.,
Hindustan Adhesives, etc.

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3. Polyester Films:
Industry:
Market around ` 850 crores (US $ 195 mn.)
First segment to enter packaging.
Initially polyester films were imported.
Now packaging polyester films are made from polyester films which are in turn made
from Dimethylterepathalate (DMT), Purified Terapthalic Acid (PTA) or Monoethylene
Glycol (MEG).

Players:
Garware Polyester was the first to set-up a unit in 1981.
Major players in this sector are Garware Polyester, Polyplex Corporation, Ester
Industries, Venlon Polyester, Siltap Chemicals, Jindal Polyester, Jalpac India, Amco
Vinyl, etc.

4. In Laminate Tubes:
Industry:

Market around ` 750 crs. (US $ 175 mn.)

Tubes are of two types - laminate tube and seamless tube.

Laminate tube comprises of 5 layer printed laminate where as a seamless tube body
comprises mono or multi layered extruded.

Seamless tubes (no seam in the tube) was first introduced in 1996.

21

Properties of these tubes can be varied by using a variety of polymers.

Popularly used in cosmetic, dentrifice, pharmaceuticals, etc.

Usage:

Major applications.

Seamless - cosmetics, pharmaceuticals, processed food, industrial products, etc.

Laminate - Cosmetics, pharmaceuticals, processed food, adhesives, industrial greases,

chewing gums, etc.

Players:

Sector dominated by Essel Packaging.

Others - Paper Products; Akar Laminates.

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4.

TYPES OF PACKAGING

Protecting goods is very important. Food, electronics, clothes, furniture and other consumer
goods all come in packaging meant to protect them during transportation and storage. There
are different types of packaging solutions and materials. Packaging can be standard or
custom made, for instance.

Paper and Carton Packaging:

Paper and carton packaging is used for different types of goods (food, electronics, toys,
shoes, kitchenware and even other packaging materials). Paper and carton packaging
companies produce wrapping paper, inflated paper, sheets, boxes, tubes, pallets,
interlayers, corners, edges and custom protective systems (depending on the dimension
and shape of the packed good, the carton is cut and modelled to fix and protect the
product). Paper can be used to laminate other materials in order to make them stronger.
There is also anticorrosive paper that can be used to wrap goods or to laminate other
materials.

Film Packaging:
There are multiple types of films used in the packaging industry, most commonly
polyethylene (PE), polypropylene (PP), polyolefin and polyvinyl chloride (PVC) films.
The films usually come on a roll and are used to wrap goods, cover goods, protect boxes
and make other packaging products (such as bags, tubes, bubble wrap and sheets). Films

23

can be used for lamination, printed or perforated. They can be anticorrosive, antistatic,
shrinkable or non shrinkable, and slippery or non slippery.

Foam Packaging:
Foam used for packaging can be produced on a roll or in sheets of different thicknesses.
The foam is used to wrap goods or make bags (usually laminated with high-density PE),
corners, edges and custom systems. The corners and edges are used to protect flat glass,
furniture and sharp edges. Foam can be cut and modelled on the product's shape to fix
and protect it. It can be antistatic and has good insulation properties.

Textile Packaging:
There are some goods that are best protected by textiles. For example, there are custommade textile insertions used in the automotive industry to protect car parts during

24

transportation. The textile insert is put on a metal frame that fits into a metal container.
There is also textile material used for box covers.

Plastic Boxes and Containers:

Multiple types of plastic boxes and containers are used in all industries. For example, in
the food industry there are plastic containers for goods like ketchup, yogurt, milk and
juices. Plastic boxes are mainly used for transporting goods and are reusable. They can
be stacked, folded when empty to save storage space and recycled.

Packaging Systems:
Packaging companies offer different types of systems that can be divided into two
categories: special solutions and packaging machines. The special solutions are used for
valuable products that don't have a regular, simple shape. For example, parts of
airplanes or expensive decorative glass objects need special solutions to be packed. The
goods fit perfectly into the packaging and are protected against damages. Packaging

25

machines are used for wrapping (wrapping the stretch film on the pallet), strapping
(applying and sealing straps on boxes), sealing (with tape for boxes and with heat for
films) and shrink wrapping (applying PVC or polyolefin film on products or boxes).
There are also machines that inflate film, paper and instant foam.

Other Types:
Adhesive tapes are also considered packaging materials, as they help seal boxes. They
are usually made out of PE or PP film that has acrylic or solvent glue applied to it and
that can be printed on. Strapping tapes are usually applied on boxes or pallets. They are
made out of PE or PP and can be printed with one color. The standard colors are black
and clear for PP and green for PE.

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5. FUNCTIONS OF PACKAGING
The basic functions of packaging is to protect, distribute, inform, attract and sell. The choice
of material is crucial. Durability, weight, formability, colour, texture, touch and feel, costs,
filling line requirements, source reduction and other ecological aspects. In primary
packaging, glass and plastic are the predominant options but not the only ones. For example,
paperboard cartons with carefully tailored barrier properties could be just the solution; if
needed, the package can even be made airtight.
In secondary packaging, paperboard carton is the clear winner with superb performance
across all packaging functions. The heart of the matter, however, is not the material, but how
to use it.
Billions of pounds are spent on packaging food and other items each year. Sixty percent of
all packaging is for food products. At the beginning of the 20th century most food was sold
loose. It was weighed and measured out and placed in bags or directly into the shoppers bag
to carry home. Packaging and advertising were virtually unknown. Today packaging is a
massive, lucrative industry and often it is the way the packaging looks that persuades the
shopper to buy the product inside it.

Functions:
Protective Function:
The protective function of packaging essentially involves protecting the contents from
the environment and vice versa. The inward protective function is intended to ensure
full retention of the utility value of the packaged goods. The packaging is thus intended
to protect the goods from loss, damage and theft.
In addition, packaging must also reliably be able to withstand the many different static
and dynamic forces to which it is subjected during transport, handling and storage
operations. The goods frequently also require protection from climatic conditions, such

27

as temperature, humidity, precipitation and solar radiation, which may require "inward
packaging measures" in addition to any "outward packaging measures".
The outward protection provided by the packaging must prevent any environmental
degradation by the goods. This requirement is of particular significance in the transport
of hazardous materials, with protection of human beings of primary importance. The
packaging must furthermore as far as possible prevent any contamination, damage or
other negative impact upon the environment and other goods.
The inward and outward protective function primarily places demands upon the
strength, resistance and leak proof properties of transport packaging.

Sales Function:
The purpose of the sales function of a package is to enable or promote the sales process
and to make it more efficient. It is rightly said that packaging works as silent salesman.
It catches the attention of customers, who pick up the product, go through its description
and are induced to purchase the product. Self service is becoming more and more
common in the field of shopping, where the customer picks up the product himself and
makes its payment on the counter. Packaging in these circumstances promotes the sales.

Promotion Function:
Promotional material placed on the packaging is intended to attract the
potential purchaser's attention and to have a positive impact upon the
purchasing decision. Promotional material on packaging plays a
particularly important role on sales packaging as it is directly addressed to
the consumer. This function is of subordinate significance in transport
packaging. While product awareness is indeed generated along the
transport chain, excessive promotion also increases the risk of theft.

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 Service Function:
The various items of information printed on packaging provide the consumer with
details about the contents and use of the particular product. Examples are the nutritional
details on yogurt pots or dosage information on medicines.The package may also
perform a further function once the contents have been used (e.g. storage container,
toy).
Guarantee Function:
By supplying an undamaged and unblemished package, the manufacturer guarantees
that the details on the packaging correspond to the contents. The packaging is therefore
the basis for branded goods, consumer protection and product liability. There are
legislative requirements which demand that goods be clearly marked with details
indicating their nature, composition, weight, and quantity and storage life.

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6.

PACKAGING AND MARKETING

Thousands of new products are introduced every year, more than 15,000 to be exact. How
can a product compete, not only with established brands but with the plethora of new
products that are being introduced? The answer of course is THE PACKAGING. The right
packaging with the right message will rise above the competitive landscape. But very few
companies understand the value behind packaging as a marketing tool. Most just look at as a
way to convey the product or recycle tired images and product packaging that doesn't work.
Understanding the complexities of how a package reaches out to a consumer is one of the
most important things to understand. Communicating that message on product packaging is
a time consuming and difficult challenge. The answer derives from understanding what the
consumer wants from their product packaging.
What compels us to look at a new product? What drew us to pick it up and take a closer
look? Our answer may be different from that of another member of our family or a
significant other but the message is the same. We were intrigued enough by whatever that
made us pick up the product and take a closer look. That's half the battle won because a
product will never sell if someone doesn't pick it up in the first place.
It's a trite saying by now but seriously "think outside the box." That is what makes a product
unique from its competitors. Here are a few questions to ask yourself about your package.
Remember think from the consumers' perspective not from the manufacturers.
Rank these attributes for our product and then the nearest competitive product or a product
that we recently purchased that was outside our normal buying pattern.
Is it new and innovative?
Is it fulfilling a need?
Is it easy to use and convenient?

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 Is it a good value?
Does it make the consumer happy?
Does it inspire consumer trust and loyalty?
Is it safe and secure?
Does it compel you to want to know more?
So how does your product stack up in solving a consumer want or need?
Would your package make someone desire to take a closer look?

Remember it's the package talking here. It's the one doing the work marketing what's inside
to the customer. That's what we need to drill in our brain about our package.
Evaluating or developing product packaging with the consumer in mind is the first step in
creating a package that markets all the products attributes to the ultimate decision maker, the
customer.The "consumer connection" is what we try to create. Of course the more needs we
can fulfil the better "connection" to the consumer. So think outside the typical behaviour and
solve the hidden need that will make a consumer buy our product and not competitors.
Branding and packaging are two of the most important components of marketing. Branding
is a term used to describe the name, description and design of a product. Branding
differentiates a company's product from their competition. Packing is a marketing tool used
to reflect the brand. A company uses packaging to sell the product inside. The colours, fonts,
descriptions and logo are designed to drive consumers to buy the product.

Sales:
The entire focus of a marketing department is to strategize methods to sell the company's
products. Branding and packaging are two of the most effective ways to do this. Once a
brand has been determined, methods are employed to sell the product. Advertising, the
company website and product packaging must all present a cohesive brand or image. In
successful brand campaigns, customers recognize the company's product packaging and
purchase in part because they identify with the brand.

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Branding:
When a company brands a product, they determine its "personality." Creating a brand that is
instantly recognizable and perceived positively is the ultimate goal. Branding integrates
components such as colour, style and visual imagery to distinguish a company's products
from the competition. Developing logos, slogans and tag lines are all ways that marketers
communicate a specific brand.

Slogans:
One of the most effective methods of branding is the use of slogans. Companies often
identify a specific characteristic that sets their product apart from the competition. The
slogan becomes a key component in all marketing efforts, including packaging. For example,
Nike has effectively marketed both their logo and slogan "Just do it" into an easily
recognized brand.

Packaging:
Packing is designed to capture a customer's attention and it can directly effect whether they
buy the product or not. Innovation and creativity come into play when it comes to packaging.
A well-marketed product is packaged in a way that compels the customer to pick it up and
take a closer look, at which point product descriptions and graphics must be clear.

Packaging Tools:
Colours, fonts, descriptions and logos are the tools that are used in packaging design.
Companies market their brands by creating a specific "look and feel" to their product's
packaging. A customer must feel comfortable enough with the presentation of the company's
brand to want to purchase the product.

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Company Image:
Branding and packaging are created by a company. While these efforts are used to market
products, they in turn market the company itself. Branding reflects the image that the
company seeks to project. For example, IBM takes on a more conservative, well-established
corporate image while Apple brands itself as a hip and cutting edge company. These images
reflect the market that the company has identified as target customers.

Marketing Role - Brand Identity and Differentiation:

As the only part of the marketing communication that the consumer takes home, Packaging
plays a key role in communicating and reinforcing brand values over time. Packaging has
the power to make, but also to break brand relationships.
A key example of the latter, is a case cited by Hofmeyr and Rice, where a change in pack
design contributed towards a drop in a leading beer brands market share by more than 20%
in the space of just one year. Nothing other than the packaging had changed, the product
itself had not changed in any way. The pack change, although not dramatic (the same style
but with lighter colouring) led to a perception that the beers quality had been compromised
and that it was now weaker. This caused many previously loyal consumers to lose faith in
the brand and to move to the brands stronger competitors instead. This is a clear example
of the power of bad packaging. Although a non-favourable advertisement might be quickly
forgotten, poor packaging (if it remains with the brand throughout its usage cycle) provides
a continual reminder of the brands perceived failing. Likewise, favorable packaging can be
a means of continually reinforcing the brands appeal.

33

Also, an example of the worlds largest selling biscuits i.e PARLE-G is that after
launching a new packaging of a high-class biscuit in the name of same brand did not made
huge sales as huge as the original package. This resulted also because of price variation. The
original biscuit was named PARLE-G while the new packaged biscuit named PARLE-G
GOLD. The packaging of both of them is:

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7.

WASTE MANAGEMENT
PACKAGING
Package

development

involves

OF

considerations

MATERIAL
for

sustainability,

USED

IN

environmental

responsibility, and applicable environmental and recycling regulations. It may involve a

lifecycle assessment which considers the material and energy inputs and outputs to the
package, the packaged product (contents), the packaging process, the logistics system, waste
management, etc. It is necessary to know the relevant regulatory requirements for point of
manufacture, sale, and use.
The traditional three Rs of reduce; reuse, and recycle are part of a waste hierarchy which
may be considered in product and package development.

Most favoured
option

Least
favoured
option

35

THE WASTE HIERARCHY

1) Prevention:
Waste prevention is a primary goal. Packaging should be used only where needed.
Proper packaging can also help prevent waste. Packaging plays an important part in
preventing loss or damage to the packaged-product (contents). Usually, the energy
content and material usage of the product being packaged are much greater than that of
the package. A vital function of the package is to protect the product for its intended
use: if the product is damaged or degraded, its entire energy and material content may
be lost.

2) Minimization:
The mass and volume of packaging (per unit of contents) can be measured and used as
one of the criteria to minimize during the package design process. Usually reduced
packaging also helps minimize costs. Packaging engineers continue to work toward
reduced packaging.

3) Re-use:
The reuse of a package or component for other purposes is encouraged. Returnable
packaging has long been useful (and economically viable) for closed loop logistics
systems. Inspection, cleaning, repair are often needed. Some manufacturers re-use the
packaging of the incoming parts for a product, either as packaging for the outgoing
product or as part of the product itself.

4) Re-cycling:
Recycling is the reprocessing of materials (pre- and post-consumer) into new products.
Emphasis is focused on recycling the largest primary components of a package: steel,
aluminum, papers, plastics, etc. Small components can be chosen which are not difficult
to separate and do not contaminate recycling operations.

36

5) Energy Recovery:
Waste-to-energy and Refuse-derived fuel in approved facilities are able to make use of
the heat available from the packaging components.

6) Disposal:
Incineration and placement in a sanitary landfill are needed for some materials. Certain
states within the US regulate packages for toxic contents, which have the potential to
contaminate emissions and ash from incineration and leach ate from landfill. Packages
should not be littered.

Development of sustainable packaging is an area of considerable interest by

standards organizations, government, consumers, packagers, and retailers
Sustainable packaging is the development and use of packaging which results in improved
sustainability. At the end stage of design it involves increased use of life cycle inventory
(LCI) and life cycle assessment (LCA) to help guide the use of packaging which reduces the
environmental and ecological footprint, but in the very first steps requires a look at the
whole of the supply chain: from basic function, to marketing, and then through to end of life
(LCA) and rebirth. The goals are to improve the long term viability and quality of life for
humans and the longevity of natural ecosystems.
Sustainable packaging must meet the functional and economic needs of the present without
compromising the ability of future generations to meet the functional and economic needs of
the present without compromising the ability of future generations to meet their own needs.
Sustainable packaging is a relatively new addition to the environmental considerations for
packaging. It requires more analysis and documentation to look at the package design,
choice of materials, processing, and life cycle.

37

This is not just the vague "green movement" that many businesses and companies have been
trying to include over the past years. Companies implementing these eco-friendly actions are
reducing their carbon footprint, using more recycled materials, reusing more package
components, etc. They often encourage suppliers, contract packagers, and distributors to do
likewise.
For example, researchers at the Agricultural Research Service are looking into using dairybased films as an alternative to petroleum-based packaging. Instead of being made of
synthetic polymers, these dairy-based films would be composed of proteins such as casein
and whey, which are found in milk. The films would be biodegradable and offer better
oxygen barriers than synthetic, chemical-based films. More research must be done to
improve the water barrier quality of the dairy-based film, but advances in sustainable
packaging are actively being pursued.
Environmental marketing claims on packages need to be made (and read) with caution.
Ambiguous titles such as green packaging and environmentally friendly can be confusing
without specific definition. Some regulators, such as the US Federal Trade Commission, are
providing guidance to packagers.
Companies have long been reusing and recycling packaging when economically viable.
Using minimal packaging has also been a common goal to help reduce costs. Recent years
have accelerated these efforts based on social movements, consumer pressure, and
regulation.

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8.

OVERVIEW OF FMCG INDUSTRY

The FMCG industry manages consumer packaged goods - production, distribution to

marketing.
The Indian FMCG industry is the fourth largest industrial sector that has stayed recessionresilient and shown signs of bright future.
The Fast Moving Consumer Goods (FMCG) industry primarily deals with the production,
distribution and marketing of consumer packaged goods, i.e. those categories of products
that are consumed at regular intervals. Examples include food & beverage, personal care,
pharmaceuticals, plastic goods, paper & stationery and household products etc. The industry
is vast and offers a wide range of job opportunities in functions such as sales, supply chain,
finance, marketing, operations, purchasing, human resources, product development and
general management. Global leaders in the FMCG segment are Sara Lee, Nestl, Reckitt
Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills,
Pepsi and Mars etc.

39

Performance:
In India, the FMCG industry is the fourth largest sector with a total (organized) market size
of over US$15 billion in 2007, and can be classified under the premium and popular
segments. The premium segment (~25%) caters mostly to the higher/upper middle income
consumers while the price sensitive popular or mass segment (~75%) consists of consumers
belonging mainly to the semi-urban or rural areas that are not, and cannot afford to be, brand
conscious.
The market growth over the past 5 years has been phenomenal, primarily due to consumers
growing disposable income which is directly linked to an increased demand for FMCG
goods and services. Indeed, it is widely acknowledged that the large young population in the
rural and semi-urban regions is driving demand growth, with the continuous rise in their
disposable income, life style, food habits etc. On the supply side, the wide availability of
raw materials, vast agricultural produce, low cost of labour and increased organized retail
have helped the competitiveness of players.
At a time when the economy and other large industrial sectors such as automobiles, aviation
and financial services are reeling from the global slowdown, the consumer goods sector in
India has managed to defy the trend. As very categorically said by the Amway India
Enterprises managing director and chief executive, Mr. William Pinckney, I am not saying
that our company [sector] is recession-proof but it is recession-resilient. This statement on
the whole stands strong for most the leading players in the FMCG sector.
While a price hike and cost-cutting were the first lines of defense in a bid to protect margins,
Indian manufacturers were able to let logic rather than bottom lines dictate measures, with
increased marketing efforts, a well-thought product mix and new launches helping them
emerge unscathed from the turmoil. The prospects going forward also remain promising.

Future Prospects:
The only threats to this strong growth trajectory remain the high portion of unorganized
trade, the limited distribution network of new entrants and the pressure on profit margins
due to increasing competition. But these are likely to be of diminished importance as
proportion of organized trade increases and players invest in improving distribution. Going

40

forward, the industry prospects remain attractive, and new graduates can hope to leverage
the training and on-the-job learning at the leading players in various functional roles, across
the Metros as well as the interior heartlands on India.

Scope of the Sector:

Hair care, household care, male grooming, female hygiene, and the chocolates and
confectionery categories are estimated to be the fastest growing segments, says an HSBC
report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make
a fine recovery since then.
For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last
quarter. An estimated double-digit growth over the next few years shows that the good times
are likely to continue.

Growth Prospects:
Indian rural FMCG market is something no one can overlook. Increased focus on farm
sector will boost rural incomes, hence providing better growth prospects to the FMCG
companies. Better infrastructure facilities will improve their supply chain.
FMCG sector is also likely to benefit from growing demand in the market. Because of the
low per capita consumption for almost all the products in the country, FMCG companies
have immense possibilities for growth. And if the companies are able to change the mindset
of the consumers, i.e. if they are able to take the consumers to branded products and offer
new generation products, they would be able to generate higher growth in the near future.
Also, increase in the urban population, along with increase in income levels and the
availability of new categories, would help the urban areas maintain their position in terms of
consumption. At present, urban India accounts for 66% of total FMCG consumption, with
rural India accounting for the remaining 34%. However, rural India accounts for more than
40% consumption in major FMCG categories such as personal care, fabric care, and hot
beverages.

41

In urban areas, home and personal care category, including skin care, household care and
feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment,
it is estimated that processed foods, bakery, and dairy are long-term growth categories in
both rural and urban areas.

Indian Competitiveness and Comparison with the World Markets:

The following factors make India a competitive player in FMCG sector:

1. Availability of raw materials:

Because of the diverse agro-climatic conditions in India, there is a large raw material base
suitable for food processing industries. India is the largest producer of livestock, milk,
sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat
and fruits &vegetables. India also produces caustic soda and soda ash, which are required
for the production of soaps and detergents. The availability of these raw materials gives
India the location advantage.

2. Labour cost comparison:

Low cost labour gives India a competitive advantage. India's labour cost is amongst the
lowest in the world, after China & Indonesia. Low labour costs give the advantage of low
cost of production. Many MNC's have established their plants in India to outsource for
domestic and export markets.

3. Presence across value chain:

Indian companies have their presence across the value chain of FMCG sector, right from
the supply of raw materials to packaged goods in the food-processing sector. This brings
India a more cost competitive advantage. For example, Amul supplies milk as well as
dairy products like cheese, butter, etc.

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9.

MARKETING STRATEGIES ADOPTED BY FMCG

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable
competitive. A marketing strategy should be centered on the key concept that customer is
the main goal.
SWOT Analysis Strategy:

1. Strengths:
Low operational costs.
Presence of established distribution networks in both urban and rural areas.
Presence of well-known brands in FMCG sector.

2. Weaknesses:
Lower scope of investing in technology and achieving economies of scale, especially
in small sectors.
Low exports levels.

43

3. Opportunities:
Untapped rural market.
Rising income levels i.e. increase in purchasing power of consumers.
Large domestic market- a population of over one billion.
Export potential.
High consumer goods spending.

4. Threats:
Removal of import restrictions resulting in replacing of domestic brands.
Slowdown in rural demand.
Tax and regulatory structure.

FMCG marketing Strategy in Rural India:

Barring a few, notable exceptions, rural marketing in India is still about a van campaign, a
badly-made commercial, a few painted walls and the occasional participation in village haats
and melas.But then, "rural" means different things to different people: from 5,00,000 people
for consumer durables, to less than 50,000 for fast-moving consumer goods.Still, it is
heartening to note the increasing awareness of the importance of rural markets - or, at least,
of companies wanting to move beyond urban boundaries.
According to estimates by the Rural Marketing Agencies Association of India, the total
budget for rural marketing is only about ` 500 crores (` 5 billion), compared to the over`
13,000 crores (` 130 billion) allotted to mass media.This is grossly inadequate to cover the
huge potential for different products in rural markets. Of course, clientsreluctance to spend
big money for bigger results in rural markets is because there are no standard performance
yardsticks for judging the efficacy of the rural marketing efforts.The TRPs and NRS/IRS
data help to determine the efficacy of TV and press marketing. But there is no study to tell
what is the ideal cost per contact or What is the ideal number of eyeballs or footfalls for
different rural activities.But only consider the huge successes of some regional brands,
especially in the FMCG sector, which are giving the multinationals a run for their money.

44

Companies like CavinKare (Chik Shampoo, Meera Herbal Powder, Fairever Cream and so
on), Anchor (100 per cent vegetarian toothpaste), Ghadi detergent powder and Power soap
are proof that regional brands can become brands to reckon with. And don't forget Nirma,
the most enduring example of a brand that began as a regional player and is now a giant.

What did these products do that was so different? Most of them identified a segment that
was vacant in terms of product and area of operation. They all started in small, concentrated
markets, appealing to the local ethos and aspirations of the targeted area.Their
communication, be it a simple radio spot or a wall painting or a theatre film, touched a chord
in the target audience. And, most importantly, their policies were flexible and they could
adopt to fast changing marketing situations. What should companies do to step up their
payback from rural marketing efforts? Here are some steps that should help:

45

People power:
Total commitment from top leadership, keeping in mind that rural marketing is a long-term
relationship, is imperative - the successes of Hindustan Unilever and ITC are proof of this
statement. But even more important is the need for a dedicated task force.
Rural marketing efforts need special mindsets, which many of the urban-oriented
management graduates who are at the helm of affairs at most organizations do not possess.A
separate marketing and sales vertical headed by people with passion and commitment to
rural marketing and supported by a field team that can face the rough and tough of the vast
country-side with courage and conviction is a must.The best bet is to recruit students from
specialized institutes such as the Indian Institute of Rural Management, or at least,
management graduates who have studied the subject as an elective.

Know your customers:

A good place to begin is studying the mindset of the customers, so we can create a
customized plan of action. All too often, clients insist their knowledge of their customers
(based on studies of urban India) is enough on which to base an action plan. Our experience
shows that the attitudes, aspirations and fears of rural customers, with regard to products and
brands, are very different from their urban counterparts.
Research can give invaluable ideas for new product development as well as new methods of
reaching the target audience. The refrigerator with standby power for 12 hours, pressure
cookers with two handles and a radio with key-winding mechanism are all the result of
research.
More and more companies turn to the local haats to sell their products. While haats offer
opportunities to target consumers from several villages at one place, and to that extent make
your effort cost-effective, ensure that the people who patronize these haatsare the kind who
will buy the product or brand.

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Ensure availability:
Most anecdotes about rural marketing centre on the distribution aspect - the humongous task
of physically reaching the product to over 6,00,000 villages, most of them without
motorable roads. But it's not really as nightmarish as it is made out to be, at least keeping in
mind the present goals of marketing companies in rural India.
We've all heard about the shampoo sachets that are available in even the smallest villages.
How does that happen? It's a direct result of rising aspirations, fuelled by television
commercials. The consumer demands the product from the local shopkeeper, who then buys
the products from the nearest feeder markets which means if we can ensure distribution to
the feeder markets in towns or villages with populations of 10,000 - 15,000, weve already
taken the first step towards reaching our target customer.
Studies also indicate that rural consumers prefer to shop for durables such as televisions,
automobiles and appliances in the nearest big town or city. So, if our products are in towns
with populations of 50,000, we're closer to the rural consumer than you would have thought.

The Mystery Game:

It was a complete Mystery, HUL foxes P&G through successful Ambush Marketing.

47

It was a great outdoor marketing campaign by P&G in Mumbai, and it did get foxed and
frustrated by HUL, but the outcome of the whole melodrama that followed is still uncertain.
There were huge outdoor hoardings, model bus-stops, and full page print ads by P&G to
create excitement over Pantene and its new packaging. Carefully ironed out, or so P&G
envisaged. It was too open to attack, and Dove took the bold step and stepped into the fray.
Kudos to HUL for getting it done within a dayit was more of a done within a month than a
day. Competition intelligence as they call it has definitely come into play here. HUL was
waiting for the bait to get hooked on. But still, a campaign rolled out within a few weeks is
commendable. But did it achieve anything for HUL? Brand connotation with the Mystery
Shampoo is and will always be Pantene; Dove did nothing to change that.
All that HUL visualized was a retort back at P&G through the necessary buzz within
everybodys mind. They achieved the buzz, but inside the marketers head. The consumer
was left lurking during the delivery of the Dove message.(There is no Mystery, Dove is
the No.1 Shampoo)

48

Marketing circles were talking about it for weeks. But the real consumer, the actual user of
the brand & the product didnt see any value in the fracas between HUL and P&G. Sadly,
this event might in the short run; temporarily, end such campaigns, where the consumer is
kept at the edge of his/her seat before the prized message is communicated.

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10.

ROLE OF PACKAGING IN FMCG

The importance of packaging design as a vehicle for communication and branding is

growing in competitive markets for packaged FMCG products. This research utilized a focus
group methodology to understand consumer behaviour towards such products.The challenge
for researchers is to integrate packaging into an effective purchasing decision model, by
understanding Consumers behavior towards the packaging of FMCG products.
When consumers search for and process information in-store, the product's package can
contain relevant and useful information for the consumer. Product packaging forms the end
of the 'promotion-chain' and is close in time to the actual purchase and may therefore play an
important role in predicting consumer outcomes.
Packages also deliver brand identification and label information like usage instructions,
contents, list of ingredients or raw materials, warnings for use and directives for care of
product.
Packaging is the container for a product encompassing the physical appearance of the
container and including the design, colour, shape, labelling and materials used
Packaging has a huge role to play in the positioning of products. Package design shapes
consumer perceptions can be the determining factor in point-of-purchase decisions which
characterize the majority of shopping occasions.In recent years the marketing environment
has become increasingly complex and competitive. A products packaging is something
which all buyers experience and which has strong potential to engage the majority of the
target market. This makes it an extremely powerful and unique tool in the modern marketing
environment.In addition to its benefits in terms of reach, some marketers believe that
packaging is actually more influential than advertising in influencing consumers, as it has a
more direct impact on how they perceive and experience the product.
In most cases, the experience has been that pack designs are more likely to influence
the consumer perception of the brand. For products with low advertising support,

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packaging takes on an even more significant role as the key vehicle for communicating the
brand positioning.
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods
(CPG), are products that are sold quickly at relatively low cost. Though the absolute profit
made on FMCG products is relatively small, they generally sell in large quantities, so the
cumulative profit on such products can be large.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper
products and plastic goods. FMCG may also include pharmaceuticals, consumer packaged
food products and drinks.
Some of the best known examples of Fast Moving Consumer Goods companies includes,
General Mills, H. J. Heinz, Reckitt Benckiser, Sara Lee, Nestl, Unilever, Procter &
Gamble, Coca-Cola, Carlsberg, Kleenex, Kraft, Pepsi, Wilkinson and Mars. Unlike
other economy sectors, FMCG share float in a steady manner irrespective of global market
dip, because they generally satisfy rather fundamental - as opposed to luxurious - needs.

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The Relevance of Packaging as a Marketing Tool:

Never underestimate the importance of packaging. Marketers often measure consumer brand
perceptions and ignore the pack. Yet we know from the way that consumers react to
unbranded products that packaging plays a huge role in reinforcing consumer perceptions.
Packaging helps to drive the way consumers experience a product. Yet, we spend little time
researching the connections between packaging and the direct experience of the product.
What relevance does packaging have in the marketing world of today?

Reaching the target market:

In recent years the marketing environment has become increasingly complex and
competitive. Although advertising can be a highly effective means of communication for
those consumers who are exposed to it, reaching the entire target market for most products is
generally not a feasible prospect.
Media fragmentation has meant that it is becoming increasingly difficult and expensive to
reach and communicate with customers and potential customers, forcing marketers to adopt
more innovative means of reaching their target market.
In contrast to advertising, which has limited reach, a products packaging is something
which all buyers experience and which has strong potential to engage the majority of the
target market. This makes it an extremely powerful and unique tool in the modern marketing
environment. In addition to its benefits in terms of reach, some marketers believe that
packaging is actually more influential than advertising in influencing consumers, as it has a
more direct impact on how they perceive and experience the product.

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Winning at the First and Second Moment of Truth:

Packagings dual role is what makes it a truly unique marketing tool. Unlike other forms of
communication which tend to be fleeting, packaging plays a crucial role not only at the point
of sale, but also after the actual purchase of the product. The packaging has to provide
consumers with the right cues and clues both at the point of purchase and during usage.
The first moment of truth is about obtaining customers attention and communicating the
benefits of the offer. The second moment of truth is about providing the tools the customer
needs to experience the benefits when using the product.

The Point Of Sale (The 1st Moment Of Truth):

The importance of making an impact at the point of sale cannot be underestimated. A recent
Point of Purchase Advertising Institute (POPAI) survey in the UK found that over 70% of
all purchasing decisions are made in-store at the point of purchase. Brand purchases are
being made or broken in the final five seconds.At the point of purchase, packaging serves a
number of key functions, namely:
1. Cutting through the clutter actually getting the consumer to notice/see the
product.
2. Communicating marketing information.
3. Stimulating or creating brand impressions.
4. Providing various brand cues:
Value.
Quality.
Safety.
Of course, if packaging does not cut through the clutter and catch the consumers attention,
none of packaging do other functions even come into play. The most brilliant and creative
packaging is useless unless it is seen. Creating a powerful shelf presence so that the brand
stands out from the crowd and is actually noticed is the first and most vital step for any
product on a shelf.In our experience, most categories have a mixture of customers with high
and low Involvement levels. Even categories which are traditionally considered high
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involvement decisions, such as motor vehicles, have people for whom the decision is made
without much consideration and categories which are often considered to have few
involved consumers, such as soap, is an important, deliberated decision and assessed in
depth by some.

Usage (The 2nd Moment of Truth):

Unlike advertising exposure which can be relatively brief, packaging continues to build
brand values during the extended usage of the product and can drive brand equity and
loyalty.
After purchase, packaging plays both a functional and a marketing role.

1. Functional Role:
From a functional perspective, packaging is often part of the usage/consumption,
experience not only is a means of providing any necessary information, but it can
also form a part of the actual product and provides functional benefits (e.g. being
easy to use, fitting into storage space, etc.). If packaging is unwieldy it can hamper
the relationship with the brand for instance if it breaks easily, doesnt fit in the
fridge, can cut the consumer, etc., the experience with the product can be negative.

2. Marketing Role - Brand Identity and Differentiation:

As the only part of the marketing communication that the consumer takes home,
Packaging plays a key role in communicating and reinforcing brand values over time.
Packaging has the power to make, but also to break brand relationships.
A key example of the latter, is a case cited by Hofmeyr and Rice, where a change in
pack design contributed towards a drop in a leading beer brands market share by more
than 20% in the space of just one year. Nothing other than the packaging had changed
the product itself had not changed in any way. The pack change, although not dramatic
(the same style but with lighter colouring) led to a perception that the beers quality had
been compromised and that it was now weaker.

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This caused many previously loyal consumers to lose faith in the brand and to move to
the brands stronger competitors instead. This is a clear example of the power of bad
packaging. Although a non-favourable advertisement might be quickly forgotten, poor
packaging provides a continual reminder of the brands perceived failing. Likewise,
favourable packaging can be a means of continually reinforcing the brands appeal.

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11. FACTORS INFLUENCING PACKAGING DECISIONS

Packaging decisions are important for several reasons including:

Protection:
Packaging is used to protect the product from damage during shipping and handling,
and to lessen spoilage if the protect is exposed to air or other elements.

Visibility:
Packaging design is used to capture customers attention as they are shopping or
glancing through a catalog or website. This is particularly important for customers who
are not familiar with the product and in situations, such as those found in grocery stores,
where a product must stand out among thousands of other products. Packaging designs
that standout are more likely to be remembered on future shopping trips.

Added Value:
Packaging design and structure can add value to a product. For instance, benefits can be
obtained from package structures that make the product easier to use while stylistic
designs can make the product more attractive to display in the customers home.

Distributor Acceptance :
Packaging decisions must not only be accepted by the final customer, they may also
have to be accepted by distributors who sell the product for the supplier. For instance, a
retailer may not accept packages unless they conform to requirements they have for
storing products on their shelves.

Cost :
Packaging can represent a significant portion of a products selling price. For example,
it is estimated that in the cosmetics industry the packaging cost of some products may

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be as high as 40% of a products selling price. Smart packaging decisions can help
reduce costs and possibly lead to higher profits.

Expensive to Create:
Developing new packaging can be extremely expensive. The costs involved in creating
new packaging include: graphic and structural design, production, customer testing,
possible destruction of leftover old packaging, and possible advertising to inform
customer of the new packaging.

Long Term Decision:

When companies create a new package it is most often with the intention of having the
design on the market for an extended period of time. In fact, changing a products
packaging too frequently can have negative effects since customers become conditioned
to locate the product based on its package and may be confused if the design is altered.

Environmental or Legal Issues:

Packaging decisions must also include an assessment of its environmental impact
especially for products with packages that are frequently discarded. Packages that are
not easily bio-degradable could draw customer and possibly governmental concern.
Also, caution must be exercised in order to create packages that do not infringe on
intellectual property, such as copyrights, trademarks or patents, held by others.

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12. PACKAGING EXPENDITURE

Packaging today provides the basis for many forms of shelf-life extension, essential for
modern retailing. However, packaging is often criticized on the grounds of cost and of being
a waste of natural resources and energy. Packaging is necessary to protect the product from
spoilage and to maintain public health and that the packaging industry, just like any other
industry, cannot exist without raw materials and energy.
The total value of the UK packaging industry is 4,000 million per annum (approx 2,600
million for foods). However the total energy involved is only about 5% of the national
energy consumption. The food packaging industry has always been anxious to conserve
resources due to economic pressures. This has been achieved by using less packaging
material, or by turning to cheaper, more abundant materials. In addition, recycling and
package reuse/refilling schemes have been introduced voluntarily to save materials and
energy and to protect the environment.
A sharp surge in packaging costs is tormenting consumer product marketers, squeezing their
margins and forcing them to consider increasing prices of processed food and some other
products in a cut-throat market. Prices of packaging materials such as aluminium foil, Kraft
paper, and adhesives for corrugated boxes and packaging plastics have increased up to 25%
in the last five months, forcing companies such as Marico and Dabur to talk price hike in a
marketplace where increasing prices and cutting advertising spends could prove fatal.
FMCG companies, working with extremely low margins after absorbing most of last years
rise in raw material prices and higher logistics costs due to fuel price hike, are also exploring
innovation in packaging and hedging materials to retain profitability.In the current scenario
FMCG companies will exercise options like trimming internal costs, hedging in the
packaging materials or cut down advertising & promotional expenses for a quarter if they
are not launching any new products. A Dabur India official said while the company has
absorbed higher packaging costs so far, it may increase prices in some categories if costs
rise further.

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Companies are also exploring innovation in packaging. Shyam Sunder, senior design
manager at IDE (Innovation Design Engineering) division of Tata ELXSI, said many FMCG
companies now demand for smarter and cost-efficient packaging solutions. Packaging costs
typically account of 8-10% of the total costs in a FMCG company. According to Maricos
Gupta, rising material prices have increased packaging costs about 7-8 % year-on-year. This
will rise if the administered fuel prices policy is scrapped, he added. The government is
reported to be working to end fuel subsidies let market forces decide the pricing. The prices
of corrugated boxes have increased 25-30% in last quarter because of low availability of
Kraft paper. An HUL official said the firms bottom line has been dented due to mounting
costs, branding expenses and the demanding nature of consumers. Thats the story of every
FMCG company.

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13. PACKAGING AS A MEDIUM TO INCREASE SALES

Catching consumers attention is the first step in making the sale
Packaging plays an important role as a medium in the marketing mix, in promotion
campaigns, as a pricing criterion, in defining the character of new products, as a setter of
trends and as an instrument to create brand identity and self impact in all product groups.
The findings of many other research projects are supplemented by the survey carried out by
IRI (Information Resources Inc.), which provides information about this subject from
extensive, in-depth interviews and POS polls, specifically including the issue of
multisensory appeal, which is a particular trend. It also presents new arguments and
evidence confirming a central conviction held by the packaging industry: that the shopper
appreciates and in fact explicitly wants to receive stimulation for the buying decision he is
making when standing in front of the supermarket shelf, often even preferring this to other
forms of communication. He is keen to be informed and inspired, tempted and pampered by
surprising and persuasive functions, emotions and sensual impressions.

The top ten requests about packaging:

Even though the consumer is not dissatisfied with the packaging available on the market, he
would still like to be tempted by functional and attractive packaging ideas, by multisensory
appeal and creative design - preferably with packaging ideas made from board. He
acknowledges additional benefits and appeal and is even willing to pay an extra charge for
them. Good starting points for improvements, changes, innovations which optimize the
features of packaging that determine buying decisions and thus generate new market
potential can be summarized in consumers' top ten requests about product packaging:

1. Eye-catching appearance:
A distinctive, unmistakable and eye-catching appearance is a signal at the POS to which all
consumers and particularly the younger ones respond positively. Whatever stands out clearly
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in the monotonous competitive environment, whatever is surprising scores points with the
consumer. Special effort makes a special impression - and is allowed to cost more too.

2. Design, shape and colour:

The purpose of well-considered design, creative printing and finishing is to entice the
consumer to devote attention to the pack and its contents at the POS. Aesthetics and
attractiveness are major distinctive features - and are in fact essential in some product
segments: beautiful packaging design is of central importance in the cosmetics and
confectionery product groups. Consumers like to buy agreeably designed and decorative
products!

3. Functionality:
Functional aspects are the basis for all successful packaging and for thus greater product
success too. Product and aroma protection, hygiene and tightness, environmental

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responsibility and practical handling (in both use and storage) are just as important here
as ideas that improve comfort.

4. Innovation:
Novelty has exceptionally strong appeal. An innovative pack can even make "new
products" out of familiar ones. Unusual solutions, functional new developments and
originality not only set design trends but also boost sales!

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5. Material:
What is printed on board is read particularly willingly, while what is packaged in board
sells particularly well. Sustainability, easy disposal and, above all, great design variety
and potential are particular features of the material. Popular with consumers,
particularly high appeal and many other advantages too.

6. Efficient communication:
The packaging is the credible medium at the point of sale and is consulted willingly and
intensively (see "Material"). This makes it an efficient means of communication and, in
addition, one that gets closer to the consumer than all others. If several of his senses are
appealed to as well, he can be persuaded particularly successfully.

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7. Multisensory appeal:
Anyone who approaches consumers via several of his senses attracts greater attention,
intensifies perception and stimulates interest in buying. Packaging that can be felt,
smelled and heard as well as looked at wins the customer's favour. So much so that he is
willing to pay a higher price for this multisensory appeal.

8. Appropriateness:
For the product Packaging is considered to be an important indicator of quality. The
quality of the product therefore has to be communicated by good packaging and not just
by promises of quality made in the text on the packaging. A credible "overall work of
art" is created as a result, in which the contents and the packaging are coherent and the
consumer is convinced by their consistency.

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9. Value Packaging:
It is an excellent way to communicate sophistication, class and value. This makes it an
ideal strategic option for expressing premium positioning - as well as being the
instrument of choice when a product needs to be upgraded or a brand needs to be
revitalised. Products in classy packaging are particularly popular presents too.

10. Additional benefits:

Successful packaging not only combines what is pleasant with what is functionally
useful but also provides additional benefits. For example, as a gift or for presentation,
with entertaining components or simply by making it possible to continue using the
packaging for something else after the product has been consumed.

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Increase Sales with Functional Packaging:

There are several aspects that make up the packaging, but often consumers do not realize the
amount of thought that goes into the design, manufacture, and role it plays in marketing.
Prior to the advent of the modern supermarket and department store, manufacturers shipped
merchandise in bulk containers such as barrels, sacks, and tubs. Retail merchants repacked
the contents into smaller, more convenient packs to meet customer needs. With the growth
of mass merchandising and self-service, manufacturers realized the value of packaging as a
marketing tool. Today, it is a vital part of a firm's product-development strategy; a package
may even be an integral part of product itself, for instance, the aerosol spray can for
insecticide. Packaging decisions must serve both the distributor channel and final consumer
needs. Plans are often made in conjunction with production and logistical factors.
James Shi, design director of Cre8tive Labels, a design firm, says a packaging label
indicates the product's brand name, the company logo, ingredients, promotional messages,
inventory control codes, and often, directions for use. Inserts can take the form of detailed
instructions and safety information that are carried in drug, toy, and other packages or can be
coupons, prizes, or recipes.

The Changing Role of Packaging:

Product packaging has evolved in its role in marketing strategy. For many years, packaging
received little, if any consideration as part of the product. It merely provided a storage
function. Then, when marketers understood that brand associations related to packaging are
held by consumers. Thus, packaging became part of brand building efforts, with notable
examples being Coke's contour bottle and Apple's all-in-one iMac.

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Today, packaging takes on an even more prominent role and can actually be a point of
differentiation. Packaging can enable product use in different situations (e.g., Yoplait's GoGURT), product easier to use (e.g., Heinz ketchup in bottles designed for refrigerator doors),
or shape a brand image that can command a price premium (Apple iPod and I Phone).

In the future, product packaging will take on greater significance for what it does not do...
waste natural resources. Concern about protecting the environment has spurred a call for
coming up with ways to reduce the amount of materials used in product packaging. WalMart has a Packaging Scorecard initiative that assesses its suppliers efforts to reduce
packaging waste. Focusing on packaging can not result in a successful marketing outcome;
it is the socially responsible thing to do!

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The Importance of Packaging:

Packaging is a very important marketing strategy to glamorize your product in order to
attract the consumers attention. Sometimes packaging is so important that it cost more than
the product itself in order to lure the consumers to buy it. Packaging should definitely be
included in the 4 major Ps of marketing (product, place, promotion and price).
Most consumers judge a product by its packaging before buying. So it is logical to say
attractive packaging is crucial in order to get the first time buyers to buy your products.
Without attractive packaging, who would buy it in order to try it? The first step to enter the
market is crushed if the packaging is ugly. Having attractive packaging doesnt mean we
should neglect quality either. In fact, we need to make high quality products in order to have
repeated sales. Converting first time buyers into loyal customers should be the main goal of
the business and packaging is the door to it. Packaging is one of those crucial steps that are
often neglected in business.

Role of packaging on consumer buying behaviour:

If we consider packaging as a communications medium, which we surely must as companies
spend as much money developing innovative new packaging solutions as they do on many
other elements of the marketing mix, in order for it to be successful it must deliver on both a
functional and an emotional level. Content without creativity is just plain boring, but
creativity in the absence of content is simply noise!
The role of packaging, as with any marketing medium, is to help move the consumer further
along the buying cycle - it may simply raise awareness, help us to research alternatives, to
form a preference etc. From a functional perspective packaging can influence behaviour especially if the product is highly commoditized. On a simpler level, the physical state of
packaging influences our buying behaviour - the dented can of food will remain on the shelf,
the wet carton of milk will stay in the chilled cabinet.

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Packaging is protection. Well-packaged items are less likely to be damaged in transit and
engender a sense of quality. Poorly packaged items suggest the quality of the product itself
may be suspect. If we are looking to purchase an unfamiliar product, packaging can play an
important role - what information does the packaging contain, in what language? A lack of
familiarity with a product leads to an increased level of risk associated with the purchase.
By raising the topic of risk, we touch on another influencing factor when it comes to
packaging - the emotional connection. This is where the almighty brand comes into play. On
a fundamental level, packaging allows potential consumers to identify brands that they are
familiar with at a glance. So, packaging is also an advertising medium - and we all know
how much influence advertising has.

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14. TRENDS OF PACKAGING

While the world continues to debate on finding out ways to decrease the amount and perils
of packaging in the food industry through environment-friendly, sustainable and minimal
packaging, globally there has not been any dearth of innovations in food packaging. Food
packaging across the globe has seen a continuous shift over the past 30 years. Consumers'
tastes and preferences are changing rapidly, whilst consumption patterns are seeing a radical
shift. As a result, marketers have to respond to this changing environment. Innovation in
product packaging is central as they offer benefits beyond just being a medium to withstand
storage and distribution challenges. Riding on the rapid shift in consumer graphics and
spectrum in India, food packaging emerged as the new value differentiator for the FMCG
companies in India.
In the last couple of years, Indian FMCG sector has been marked with receding margins on
the back of steep increase in the input prices as well as aggressive price competition at the
retailing front. Favoured by highly positive income elasticity, international brands have
intensified the competition at every segment of the industry and made the task at hand for
the home-grown manufacturers more challenging.In addition, the consumer graphics and
spectrum in India in the last five years have undergone a sea change. Consumers have
become more informed, discerning and price sensitive. Their lifestyle transformed and
lifestages have become much more complex and overlapping. As consumers have become
more mobile and crunched for time, they have started seeking a number of auxiliary benefits
such as convenience of consumption and usage.
The 'Great Indian Retail Revolution', initiated at the break of the current century, has gained
momentum all along the first decade. The organized retailing industry in India is at the
threshold of mass adoption. Consumer packaged good industry has had many reasons to
celebrate this revolution as packaged food rapidly replaced loose staples and locallyproduced eatables. The advent of organized retailing has also brought about the 'shelf war'
amongst the FMCG manufacturers. They have to plan and optimize the usage of
increasingly costlier shelf spaces at the organized retail destinations.

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Although Indian manufacturers have brought about a number of innovations in food

packaging, such as sachet, micro-packaging, etc., it has largely taken inspirations from the
more developed Western economies to find out opportunities to differentiate their
merchandise from the competitors through packaging.
Data monitor analysed the global scenario in the past one year to assess various packaging
trends across the globe. Their analysis revealed four prominent trends driving the packaging
innovations, a) convenience of usage, b) freshness and improved shelf life, c) sustainable
and environment-friendly, and d) packaging as a tool to position and promotes the brand.
Data monitor predicts a multi-dimensional shift in food packaging in India in the next five
years. Advanced packaging techniques and concepts such as aseptic packaging and retortable packages, although coming into existence, are yet to make a mark in India. However,
with the consistent rise in the adoption of 'Ready to Eat/Drink' products amongst Indian
consumers, it is expected to be only a matter of time before Indian FMCG market would be
filled with products using advanced packaging technologies, primarily aimed at enhancing
the shelf life of the products and to offer additional convenience to the consumers in terms
of storage, consumption and portioning.
Traditionally, product packaging has not been seen as a vehicle to promote the brand while
it is changing now. For example Kissan Jams, targeted at the kids segment, is now using
tube packages with catchy graphics to appeal the target audience, BRU Coffee's aroma-lock
packaging appeals to the staunch coffee lovers, who worried about retaining the aroma upon
multiple usage from a single pack. In the coming years we could see lot many such
examples.

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Packaging Trend: The Future Outlook

The packaging industry is going under transformation almost everyday and new
technologies that are better than before are taking their place. Consumer behaviour, product
demand and the current level of global warming are all going to have a direct impact on the
future of packaging. This write up deals with all the factors that are going to help the
packaging and material handling industry to face this transmutation with a bang. The future
of the packaging market is certainly looking bright. Packaging is believed to be the key
method of communicating the value added benefits of a product to the consumer. Thus,
there is a need to implement a global mega trend to make it even more popular. Following
are some of the key trends that if implemented are going to keep this industry on its prime.

The Convenience for Society:

All over the world, convenience seem to have emerged as an important characteristic in life
of the people. Various changes in the societal outlook viz, structure of the family, number of
working women rising, longer working hours and increase in commuting time, have also
contributed to the need for convenience. Thus, the need for those kind of packaging, that
enables the adult as well as children to open them, has risen. Also the future will see a great
rise in the kind of packaging that allows one to indulge in multi-tasking.

Health and Nutrition:

This is also a driving factor in the future of packaging. With the people becoming more and
more cognizant about their health viz obesity, low carbohydrate, less fat etc, the
manufacturers are deemed to introduce packaging that delivers the various information
regarding the product in a convenient, easy to read manner. With the rise in the demand for
the food items that contain active ingredients to achieve lifestyle as well as the launch of
competitive products in the flicker of a second, the need for changes in packaging in
inevitable.

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 Green Trends:
With the rate of green house emissions touching the skies, there is an urgent need to change
the packaging trends that have been followed so callously in the past. The fact that even the
people have become more sensitive towards the need of green technology, will surely help
in making the future of packaging more eco friendly. Various packaging options like paper
bags instead of plastics and other environmentally safe technology are surely going to rule
this industry.

Speed to Market:
In this fast pacing world, it is important for the manufacturers as well as suppliers to keep
abreast with their demand and supply chain. With the world being predicted to keep moving
faster everyday, it becomes important for the packaging industry to move with the tide.
Speed to the market is another future trend of packaging that is surely going to change the
way this industry looks today. Development of an electronic business-to-business network is
the call of the hour.

Packaging Trends for 2014:

Seven key observers identify the economy, sustainability, private branding and other
developments likely to impact packaging during the coming year. If it were easy to foretell
the future, we'd all be millionaires. However, predicting what's ahead for the packaging
community in 2014 is not like picking horses at the racetrack. Packaging Digest reached out
to seven packaging observers to discover their informed opinions on what trends are likely
to impact packaging in the coming year. Not surprisingly, respondents unanimously mention
sustainability as a major trend that will continue to affect operations in packaging. However,
several foresee some new twists on the sustainability imperative in 2014.
In a sure sign that the U.S. has not fully recovered from its worst economic slump in decades,
the economy is listed as another major concern for packagers. At the same time and perhaps

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because of the slowdown, private branding has shown impressive growth and is developing
into a trend to watch. Product and food safety also are likely to impact packaging, the seven
say, while offering observations on other developing topics such as consolidation, material
costs, colour coding, value promises, open innovation and the integration of product
processing and packaging.

Economy drives many trends:

Since the start of the global recession, consumers for obvious reasons, have taken a keener
interest in searching for value in the products they purchase. There is evidence to suggest
that these changes in buying behaviour will last beyond the economic recovery. Additionally,
in many industrialized countries the consumer base is undergoing a longer-term shift as the
large Boomer group reaches retirement age and starts to spend less.
With many consumers believing that products simply have too much packaging,
manufacturers are downsizing and lightening the protective covering that goes around their
products. The benefits from these efforts are that many companies are realizing material
savings in cost structures and increased demand from green consumers.

Consolidation's competitive impact:

Consolidations will continue to impact most segments of packaging with fewer packaging
suppliers creating increased competition. Despite the widespread economic weakness,
Conroy says global consumer interest in sustainability has not lessened. Consumers are
increasingly interested in their personal impact on the environment and are demanding more
from manufacturers. Further, escalating disposal costs from governments are creating new
demand for packaging. The economy is a big driver of how consumers make their choices.

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Harmony sought on sustainability:

While sustainability considerations have become a fact of life, there is an emerging strong
push for coordinated and cooperative efforts in packaging sustainability. U.S. packaging
industry will definitely be impacted by the work of International Organization for
Standardization (ISO) to harmonize packaging sustainability, with the possibility of bringing
in elements of the European Union's Packaging Directive. The CEO Forum's Global
Packaging Initiative and the Walmart-supported Sustainability Index Consortium will be
creating measurement tools that packaging manufacturers will have to consider. Climate
change efforts around the world will also contribute to the need to consider sustainability in
packaging decisions.
Companies are understanding and increasingly using life-cycle assessments to look at the
tradeoffs between rigid and flexible packaging, he says, pointing out that with flexible
packaging, two pallets of materials can equal a whole truckload of rigid incoming materials.
Packagers and their suppliers are making advances in manufacturing flexible packaging
from renewable resources such as sugar cane. It will be more than incremental. It's about
beginning to make some investment and think from a systems point of view to make it more
than just an efficiency and productivity effort, which is then labelled as 'sustainable.

Private brands are growing:

Shifting consumer preferences in a slow-growth economic environment will likely continue
to impact retailers and CPG manufacturers and their suppliers. Many retailers looking to
improve margins are undergoing shelf-space rationalization, seeking to keep only the
products that are most in demand. Additionally, interest in private-label products continues
to ramp up. Consumers' frugal frame of mind will continue to encourage a hunt for value,
with national value products

and private-label brands as viable options. This mindset is

forcing brand owners to reformulate, rebrand and reprice products to avoid competing
strictly on price.

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It's also increasing the importance of the package as a differentiator. While consumers are
also more educated about the products they buy, they are still seeking, and positively
responding to, innovations in products, packaging, advertising and branding.

Packaging enhances value:

Nationally branded consumer product companies concerned about losing market share are
responding to these changes by offering enhanced value to their core customer base. As part
of this effort, packaging is changing, particularly in many price-sensitive categories. Some
companies are redesigning packaging to more strongly differentiate their brands.
Packaging uniqueness is going to be a major differentiator for successful products, adding
that colour coding on packaging within a product line to differentiate that packaging is
another developing trend. A recent Mintel survey shows 64 percent of people in the U.S. say
they like to see color-coded packages to help them distinguish between products. Vitamin
Water as an example, where every label color is for a different flavor and signifies a
different functional benefit. This simplifies the consumer shopping experience.

Open innovation requires more than just innovation. Open innovation is looking outside the
company's four walls for creative ideas and thinking that gets implemented into something
successful. Some companies have recognized the need to go outside the company for
innovation.

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Food-safety concerns:
Food safety is the number-one issue for the public and will continue to affect packaging
materials. As a result, companies are seeking new packaging that helps ensure healthy and
safe products. Recalls can be particularly damaging to a company's bottom line so packaging
that can help prevent mislabelling, spoilage, product tampering, contamination or damage
will likely be in demand. RFID (Radio Frequency IDentification) -enabled packaging, in the
years ahead, will help improve traceability, which is particularly important to fresh produce
and meat companies.
Most companies understand that the added expense of improving packaging to help prevent
recalls or a liability case is often far less than the cost of losing many customers because of
an unhealthy or unsafe product. Concerns go beyond preventing product recalls. Health
issues are encouraging consumers to seek out smaller portions and better-for-you versions of
packaged food products. This is increasing the demand for new packaging. microwave
packaging innovations that tie in with healthy living and foresees more steaming and
susceptor technology, which both browns and cooks foods, in microwave packaging.

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15. Survey on: Consumer Behaviour towards Packaging of

FMCG Products

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Sample Design:
The sample design for the survey is classified according to the age and gender; total 50
respondents are selected for the survey which are being distributed as follows:
AGE GROUP
BELOW 20
21 25
26 30
ABOVE 30
TOTAL

MALE
RESPONDENTS
17
3
3
2
25

FEMALE
RESPONDENTS
17
3
3
2
25

TOTAL
RESPONDENTS
34
6
6
4
50

Pie-representation:

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Questionnaire Analysis and Research Findings:

1.

Influence of Packaging in Consumer Buying Behaviour:

Response (Based on Gender):

Description:
From the above results we can say that there is a high degree of impact of packaging on
consumer behaviour. 52% of Male & 64% of Female says that they get influenced by the
packaging of the product. Whereas, 40% of Male and 32% of Female are influenced by
packaging of a product sometimes and hardly 8% of Male and 4% of Female are not at all
influenced by the packaging of a particular product.

Age wise Response:

Age - group

Yes

No

Sometimes

Below 20

59%

6%

35%

21 25

50%

17%

33%

26 30

33%

66%

Above 30

100%

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2.

Brand switching due to change in packaging of existing brand:

Response (Based on Gender):

Description:
There is a lesser degree of a consumer to change their brand due to change in the packaging
of the existing products. According to the research, I found that 8% and 20% of Male and
Female respectively tend to change their brand if they find any change in the packaging of
their existing brand and can switch to other brands which have attractive packaging. 28% of
Male and 36% of Female sometimes change their brands if there is a major change in the
packaging of their product. Major people i.e. 64% of Male and 44% of Female do not
change their brands although there are many changes in the packaging of the existing
product.

Age wise Response:

Age - group
Below 20
21 25
26 30
Above 30

Yes
18%
17%
-

No
59%
83%
50%

Sometimes
23%
17%
83%
50%

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3.

Aesthetic factor attracting towards purchasing of the product:

Response (Based on Gender):

Description:
Many people are now-a-days attracted towards the offer price of the product. Generally a
new product launches huge offer prices to stay in the market and in the minds of the people.
Here also we can see that 72% of Male and 64% of Female are attracted towards the offer
price of a particular product. The other aesthetic factors like the Text and Graphics of the
product package attracts 8% Males and 16% Females whereas Shape and Size of the product
attracts 16% of Males and 12% of Females and similarly the Colour of the product packet
attracts hardly a few i.e. 4% of Males and 8% of Females.

Age wise Response:

Age - group
Below 20
21 25
26 30
Above 30

Colour
5%
25%

Shape & Size

15%
17%
25%

Text & Graphics Offer price

15%
65%
100%
17%
66%
50%

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4.

Parameter of packaging for preference to purchase:

Response (Based on Gender):

Description:
While framing a packaging strategy these question should be addressed by the management
of the organization. These factor or parameters add on to the marketing competitive edge for
the products. Packaging on the basis of its convenience is observed by 8% Male and 24%
Female and Material use is observed by 8% Male and Female each. Packaging parameter for
Information seems no response in the survey whereas for Aesthetic factor 24% of Males and
12% of Females and maximum is for All of the parameters having 60% of Males and 56%
of Females.

Age wise Response:

Agegroup
Below 20
21 25
26 30
Above 30

Convenience
20%
17%
-

Material use
9%
17%
-

Information
-

Aesthetic
20%
17%
25%

All of them
51%
66%
83%
75%

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5.

Preference for Eco - friendly packaging products:

Response (Based on Gender):

Description:
Now-a-days, people are becoming more aware for eco-friendly packaged products.
According to the survey, 32% of Males use eco-friendly packaged products and rest 68% of
them use it but not very often and there is not a single male who is not using eco-friendly
packaged products. Similarly, 48% of Females are using eco-friendly packed goods and
40% of them use it less often whereas there are also 12% of them who do not use ecofriendly packed goods any time.

Age wise Response:

Age - group
Below 20
21 25
26 30
Above 30

Yes
44%
50%
33%
-

No
9%
-

Sometimes
47%
50%
67%
100%

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6.

Preference for various packets:

Response (Based on Gender):

Description:
Preference for sizes of the packets also varies from person to person based on the
geographical area. Here, we can see hardly any difference in the response of the people. It
was observed that Big and Small packets are purchased by 12% of Males and Females each
respectively. Men and Women usually buy Combo offer packets i.e. 52% of them and 44%
of Females. 24% of Males and 32% of Females buy Buy 1 get 1 scheme offer packets.

Age wise Response:

Age - group

Big packets

Small packets

Below 20
21 25
26 30
Above 30

18%
-

12%
33%
-

Combo
packets
50%
34%
50%
50%

offe Buy 1
packets
20%
33%
50%
50%

get

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7.

Satisfaction of information printed on the packets:

Response (Based on Gender):

Description:
Information regarding the manufacturing and usage of the product is now-a-days printed on
each and every packet of various products. 76% of Males and 80% of Females are satisfied
with whatever information is being printed on the product package whereas 20% of Males
and 16% of Females are not satisfied with the information printed and 4% of Male and
Female each believe that they are not satisfied for some products like there is lack of
information regarding dark chocolate in Cadbury Bournville.

Age wise Response:

Age - group
Below 20
21 25
26 30
Above 30

Yes
74%
100%
83%
75%

No
20%
17%
25%

Not for all products

6%
-

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8.

Willingness to pay premium price for better packaging:

Response (Based on Gender):

Description:
Today people are willing to pay higher prices just to get a good packaged product.
Packaging has now changed the thinking and buying behaviour of many people. With the
help of this survey, we can come to know that 60% of Males are willing to pay higher prices
and still 40% are not. For Females, around 56% of them are willing to pay higher prices and
44% are not for packaging of a particular product.

Age wise Response:

Age - group

Yes

No

Below 20

65%

35%

21 25

17%

83%

26 30

67%

33%

Above 30

50%

50%

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CASE STUDY

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CASE STUDY: BRU

Bru:
Brand:
Company:

Happiness Begins with Bru

Bru.
Hindustan Unilever.

Bru is a power brand from the HUL's stable. A brand which pioneered the instant coffee
category in Indian market in 1969 is also an example of many successful marketing
practices. According to HUL, Bru is the market leader in coffee segment with a value share
of 46.9 %.
Prior to 2004, HUL had many brands in the coffee category. It had Deluxe Green Label and
Bru instant as the main brands and small brands like Dilkush, Cafe and Cafe Gold. In 2004,
as a part of the power brand strategy, HLL decided to phase out Dilkush and Cafe brands. It
then consolidated the coffee brands under the Masterbrand Bru.Bru before becoming the
family brand was positioned as a coffee that tasted just like filter coffee. But after the
elevation to master brand, Bru took the positioning around happiness.
Bru was synonymous for instant coffee and had an astounding 21% market share in the first
year of launch itself. All these years, the brand has been fighting for the numerous positions
with Nestle whose iconic Nescafe brand was the market leader. But in 2008, the brand
pushed Nescafe to the second position.

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The Success factor is:

Innovation in Product
Innovation in Packaging
Aggressive Advertisements
Nestle lost out because of lethargy. The company failed to consistently invest in its Nescafe
brand.HUL's marketing acumen is vivid in the rise of Bru as the market leader. It has never
stopped innovating for this new brand.Bru was able to give new offerings to customers on a
regular basis. One of the recent successful new products was the cappuccino packs. The new
flavour gave the brand a new thrust in the market. The new flavours even prompted hardcore
tea lovers to try out these flavours. The best part was that these cappuccino was available in
single serve sachets which prompted consumers to test the flavours.

Another innovation was the cold coffee. Bru launched the cold coffee variants which again
captured the attention of the consumers. These thrusts in new product development and roll
out are visible when one visits a super market. The coffee section is full of various flavours
and packs of Bru which itself creates a positive vibration for the brand.
Another factor which made Bru successful was the campaigns. The brand is famous for two
campaigns. One featuring AmrithaRao was a big hit. The theme revolves around the shy girl
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wanting to introduce her boyfriend Sagar to her father. Another campaign which was highly
popular was the 'little cup' ad. The ad shows the wife announcing the good news
through a symbolic ' little cup'.
Bru is positioned on the theme of happiness. The brand has the tagline Happiness begins
with Bru ". The positioning and communication has been consistent with the brand's promise
of kick starting one's day with a Bru. These slice of life ads put Bru in a growth orbit.
Consumers started loving the brand for its innovation and campaigns. For the Bru
Cappuccino, it had roped in the Bollywood Director Karan Johar to endorse the brand.
Another critical factor that aided Bru's success was the innovation in packaging. The brand
made the entry barrier low by launching small affordable SKUs (Stock Keeping Units).
There are single serve and large packs at different price points making the brand
affordable .The brand although is positioned as an aspirational brand is priced affordable
thus making it a perfect example of a Masstige brand.
Recently the brand has yet again come out with a customer centric innovation in the form of
a flavor lock. Most of the customers worry about losing the flavor of coffee powder once the
pack is cut open. The flavor lock is a plastic clip which will lock the flavor from escaping.
More than actually locking the flavor, the lock gives a psychological belief that the flavor
wills not the lost.

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This little plastic lock also gives more convenience to the home maker. Typically when
buying powders in packs home makers have to transfer the powder to a container to preserve
it for long. This lock effectively eliminates the need for such a container. Bru is a brand
which has reached the commanding position following methodologically all the critical
elements for marketing success: customer centric innovation, aggression and new product
development.

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CASE STUDY : COCA COLA

Introduction:
As the world's largest manufacturer, distributor, and marketer of non-alcoholic beverage
concentrates and syrups, operating in more than 200 countries, the firm supplies many
products in addition to its flagship brand. These include fruit-based and other carbonated
beverages tailored to local tastes as well as newer variants of the main brand, such as Diet,
Cherry, and Vanilla Coke. Although the company did experiment with diversification in
recent decades (for example, motion pictures, coffee, and wine), current corporate strategy
has emphasized the non-alcoholic beverage market. Although carbonated beverages
represented 85 percent of worldwide sales volume in 2002, increased market share for the
Coke products Dasani bottled water, PowerAde sports drink, and Minute Maid orange juice
have demonstrated growth in the noncarbonated sector.

History of Coca Cola:

Coca Cola, re-branded India in 1993, after having withdrawn from the country in the late
1970s in the wake of Foreign Exchange Regulation Act (FERA) of 1973. India is the home
to one of the most ancient cultures in the world dating back over 5000 years. At the
beginning of the twenty-first century, 26 different languages were spoken across the India,
30% of the population knew English, and greater than 40% were illiterate. In the process,
India has created the worlds largest middle class, secondly to China. Coca cola cited this as
a opportunity. Coca Cola was the leading.

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Soft drink brand in India Cokes acquisition of local popular Indian brand including Thumps
up Maaza, Citra, and Gold spot provided not only physical manufacturing, bottling and
distribution asset but also strong consumer preference. In 2000 the company launched the
Kinley water brand and in 2001 Shock energy drink. From 1993 to 2003 Coca cola invested
more than US 1Billion in India. Coca cola India had won the prestigious Woodruff cup from
among 22 divisions.

Product List:

With a portfolio of more than 3,300 beverages, from diet and regular sparkling beverages to
still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy
drinks, teas and coffees, and milk-and soy-based beverages, its variety spans the globe.

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Branding and Packaging of Coca Cola:

Branding:

From the Three As to the Three Ps:

Coca-Cola used to focus its strategy on the three As: availability, acceptability, and
affordability. While these provided for tremendous growth, they also led to lowered entry
barriers. Today, Coca-Colas mantra is the three Ps: preference, pervasive penetration,
and price-related value.

The Power of Brand Accessibility:

If we were another soft drink company, we might define our competitive frame of
reference as the cola market or the soft drink market or even the beverage market. But
Coke thinks of its business and its market share in terms of share of human liquid
consumption. This makes water a competitor. In fact, a Coke executive has said that he
wont be satisfied until there is a Coca-Cola faucet in every home. Coca-Colas
mantra is within an arms reach of desire.

Coca-Cola is Serious about Brand Building:

Each month, Coca-Cola tests 20 brand attributes with 4,000 consumers to measure
movement. The company also compensates (bonus and other compensation components)
a large portion of its senior managers based on brand preference.
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One Final Coca-Cola Fact:

A recent Coca-Cola annual report reported that the second most recognized expression in
the world after ok? is Coca-Cola.

Packaging:

The Coca-Cola bottle is probably the most easily recognized containers in the world. It
was described by the 'Pop' artist Andy Warhol as, the 'design icon of the decade'.The
smooth, organically shaped bottle was originally conceived in the early 1900's. It was a
time when both the packaging and the actual Coca-Cola product was being imitated.
In response to this the company, in 1916 set a brief , which was to find: 'A Coca-Cola
bottle which a person will recognize as a Coca-Cola bottle even if he feels it in the dark.
The Coca-Cola bottle should be shaped that, even if broken, one could tell at a glance
what it was'.The bottle shown below is the 192ml size bottle. It is still sold in many
96

countries throughout the world today. The bottle design was re-launched in Britain as
recently as 1997. Coca-Cola conducted research which confirmed that consumers still
preferred to drink Coca-Cola from a glass bottle.
Coca Cola had a number of achievements in 2003 and all were related to a renewed focus
on understanding the consumer. This is especially important from a packaging standpoint
and they were able to achieve business results by introducing packaging innovations to
satisfy consumer needs. The most notable achievements are the Fridge Pack national
rollout, 1.5 litre development, Simply Orange national rollout of the PET carafe and the
development of the Simply Orange small carafe.
Packaging is more important than ever to The Coca-Cola Co. In February 2003, they
fully integrated packaging with marketing, media, promotion and sports and
entertainment marketing. The results of this endeavour have been increased synergy for
one of the most important initiatives of the company: Coca-Cola C2. This synergy is one
of the main reasons they were able to go to market so quickly with C2.This Cokeproduct
was marketed as having half the carbohydrates,sugarsand calories compared to standard
Coke.

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Bottling/Packaging Trends of Coca Cola:

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed
that Coca-Cola became the world-famous brand it is today.

1894 A modest start for a bold idea:

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage
called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling
Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a
case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no

98

action. One of his nephews already had urged that Coca-Cola be bottled, but Candler
focused on fountain sales.

1899 The first bottling agreement:

Two young attorneys from Chattanooga, Tennessee believed they could build a business
around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph
B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United
States (specifically excluding Vicksburg) -- for the sum of one dollar. A third
Chattanooga lawyer, John T. Lupton, soon joined their venture.

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1900-1909 Rapid growth:

The three pioneer bottlers divided the country into territories and sold bottling rights to
local entrepreneurs. Their efforts were boosted by major progress in bottling technology,
which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling
plants were operating, most of them family-owned businesses. Some were open only
during hot-weather months when demand was high.

1916 Birth of the contour bottle:

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Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with
imitators. A group representing the Company and bottlers asked glass manufacturers to
offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre
Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The
contour bottle became one of the few packages ever granted trademark status by the U.S.
Patent Office. Today, it's one of the most recognized icons in the world - even in the
dark!

1920s Bottling overtakes fountain sales:

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S.
Their ideas and zeal fuelled steady growth. Six-bottle cartons were a huge hit after their
1923 introduction. A few years later, open-top metal coolers became the forerunners of
automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola
exceeded fountain sales.

1920s and 30s International expansion:

Led by longtime Company leader Robert W. Woodruff, chief executive officer and
chairman of the Board, the Company began a major push to establish bottling operations
outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium,
Italy, Peru, Spain, Australia and South Africa. By the time World War II began, CocaCola was being bottled in 44 countries.

1940s Post-war growth:

During the war, 64 bottling plants were set up around the world to supply the troops. This
followed an urgent request for bottling equipment and materials from General
Eisenhower's base in North Africa. Many of these war-time plants were later converted to

101

civilian use, permanently enlarging the bottling system and accelerating the growth of the
Company's worldwide business.

1950s Packaging innovations:

For the first time, consumers had choices of Coca-Cola package size and type -- the
traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce
versions. Cans were also introduced, becoming generally available in 1960.

1960s New brands introduced:

Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brand CocaCola in the 1960s. Mr.Pibb and Mello Yello were added in the 1970s. The 1980s brought
diet Coke and Cherry Coke, followed by POWERADE and DASANI in the 1990s. Today
hundreds of other brands are offered to meet consumer preferences in local markets
around the world.

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1970s and 80s Consolidation to serve customers:

As technology led to a global economy, the retailers who sold Coca-Cola merged and
evolved into international mega-chains. Such customers required a new approach. In
response, many small and medium-size bottlers consolidated to better serve giant
international customers. The Company encouraged and invested in a number of bottler
consolidations to assure that its largest bottling partners would have capacity to lead the
system in working with global retailers.

1990s New and growing markets:

Political and economic changes opened vast markets that were closed or underdeveloped
for decades. After the fall of the Berlin Wall, the Company invested heavily to build
plants in Eastern Europe. And as the century closed, more than $1.5 billion was
committed to new bottling facilities in Africa.

21st Century

The Coca-Cola bottling system grew up with roots deeply planted in local communities.
This heritage serves the Company well today as people seek brands that honour local
identity and the distinctiveness of local markets. As was true a century ago, strong locally
based relationships between Coca-Cola bottlers, customers and communities are the
foundation on which the entire business grows.

103

16. RECOMMENDATIONS
Brand is important and its strategy is in consideration in the units. Product packaging is
valuable for brand equity, product differentiation, market segmentation, new product
introduction, pricing, promotion etc. Brand name using plan implementation must be
effective in the units.
All the marketing units pay attention for good packaging. They accept that poor
packaging is one of the causes of product failure in the market. It is necessary to set the
packaging standard and to implement accordingly for better protection and promotion of
a product.
Consumer new product manufacturers mostly use the label in their products. Basically
they describe that made it, where it was made, when it was made, what it contains, how
to use it etc. Further more they believe that the consumers are properly guided by label
to use the products. The information given in the label and its value have to be
highlighted while promoting the product in the market. It must also be more useful
technically.
I do believe that culture difference does have an impact on companies initiatives to
design the product package, for instance, during the research; the choices of packaging
colours are quite different between the West and Far East. Thus, we think that it is
important for international companies to take a consideration of culture differences
when they design the product package.
Suggested areas for future research include a more in-depth analysis into the
relationship between product attributes and total product assessment how exactly does
the research process influence overall opinions, what is the best way to gain insight into
preference, etc.

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17. CONCLUSION:
Results of research on role of packaging on consumers buying behaviour stipulated
following conclusions:
Package could be treated as one of most valuable tool in todays marketing
communications, necessitating more detail analysis of its elements and an impact of
those elements on consumer buying behaviour.
Appropriate and vivid picture or packaging colour which delivers them a happy feeling,
or an easy handle/open/dose/dispose package shape. All these elements contribute each
important effort to catch consumers attention and interest. Besides each elements
single function, we think that a good combination of those elements may let the product
more eye-catching and attractive.
The impact of package and its elements on consumers purchase decision can be
revealed by analysing an importance of its separate elements for consumers choice. For
this purpose main packages elements could be identified: graphic, colour, size, form,
and material of packaging are considered, wrapper design, printed information,
innovation while product information, producer, country-of-origin and brand are
considered as important ones. Moreover, the impact of package elements on consumers
purchase decisions should be evaluated depending on the consumers involvement level,
time pressure or individual characteristics of consumers.
Empirically testing the research model proposed, package elements having the ultimate
effect on consumer choice in a case of different products from group of convenience
goods were determined.
It has revealed that elements of package are the most important for consumers purchase
decision. For a major part of consumers a size and material are the main visual
elements, while product information is also the main verbal elements when purchasing
milk and washing-powder.
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 Results of analysing the impact of package elements on consumers purchase decisions

depending on level of involvement correspond with those of theoretical studies and let
us stating that visual elements of package have relatively stronger influence on
consumers purchasing when they are in the level of low involvement, in opposite to
those who are in the level of high involvement.
Packaging has a better reach than advertising does, and can set a brand apart from its
competitors. It promotes and reinforces the purchase decision not only at the point of
purchase, but also every time the product is used. Packaging in different serving sizes
can extend a product into new target markets or help to overcome cost barriers.
Packaging can even drive the brand choice (especially in the context of childrens
products).
Research into packaging has found that different packaging cues impact how a product
is perceived. Often the packaging is perceived to be part of the product and it can be
difficult for consumers to separate the two. Aspects such as packaging colour,
typography, illustrations and graphics can influence how a product is perceived.
According to my research, I found out that most consumers like the product quality after
they purchased their desired packaged products. Based on those facts, we can not say
there is a 100% equal relationship between good package and good product quality, but
there is a positive thinking and trend about well-designed package shows high product
quality. As a matter of fact, people are becoming more and more demanding; packaging
has been gradually shown his important role in a way to serving consumer by providing
information and delivering functions. With its different functionality to ease and to
communicate with consumers, there is no doubt about increasingly important role of
packaging as a strategic tool to attract consumers attention and their perception on the
product quality.

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18. BIBLIOGRAPHY
Websites:
http://www.indiapackingshow.com
http://packnomics.com
http://www.indianmba.com/faculty
http://www.packingtoday.com
http://www.brandchannel.com
http://print-packing.com/education.html

http://www.cosmetic-packing.com-manufacturers.com

Books:
Kotler, Ph (2003) Marketing Management , 9th ed. Upper Saddle
Packaging designing workbook

Newspapers:
The Times Of India
The Economic Times
Hindustan Times
The Hindu
DNA

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