6. Packaging

Nearly all products require a packaging decision. In most cases, the product is contained in a package when purchased by the customer. In a few cases, such as with certain produce items, the final customer may purchase the product without a package but the produce marketer still faces packaging decisions when it comes to shipping to the store. Thus, for many products there are two packaging decisions – customer and distribution.

Customer Packaging

This relates to the package purchasers receive in exchange for their payment. This packaging can be further divided into the following:

• First-Level Package - This is packaging that holds the actual product (e.g., Tylenol Bottle). In some cases this packaging is minimal since it only serves to protect the product. For instance, certain frozen food products are sold to consumers in a cardboard box with the product itself contained in a plastic bag found inside the box. This plastic bag represents the first level package. In other cases frozen food products are sold in the plastic bag that contains the product. In these cases the plastic bag is both first-level package and the primary package for convey product information.

• Second-Level Package – In some cases the first level package is protected by one or more outer(зовнішній) packages (e.g., box holding the Tylenol Bottle). This second-level package may act as the primary package for the product.

• Inserts(вкладки) - Marketers use a variety of other methods to communicate with customers after they open the product package. These methods are often inserted within, or sometimes on, the product’s package. Insertions include information such as instruction manuals and warranty cards, promotional incentives(стимули) such as coupons, and items that add(додають) value such as recipes and software(програмне забезпечення).

Distribution Packaging

This packaging is used to transport the customer package through the supply chain. It generally holds multiple(численні) customer packages and also offers a higher level of damage(пошкодження) protection than that of customer packaging.

Factors to Consider When Making Packaging Decision

Packaging decisions are important for several reasons including:

• Protection – Packaging is used to protect the product from damage during shipping and handling(транспортування), and to lessen(зменшити) spoilage(псування) if the protect is exposed(піддається дії) to air or other elements.

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

• Added Value(додана вартість) – Packaging design and structure can add value to a product. For instance, benefits can be obtained(отримані) from package structures that make the product easier to use while stylistic designs can make the product more attractive to display in the customer’s home.

• Distributor Acceptance – Packaging decisions must not only be accepted(прийняті) by the final customer, they may also have to be accepted by distributors who sell the product for the supplier(постачальник). For instance, a retailer(роздрібний торговець) may not accept(не прийме) packages unless they conform(якщо вони не відповідають) to requirements(вимогам) they have for storing(зберігання) products on their shelves(полиці).

• Cost – Packaging can represent a significant(вагома) portion(частина) of a product’s selling price. For example, it is estimated that in the cosmetics industry the packaging cost of some products may be as high as 40% of a product’s selling price. Smart(розумні) packaging decisions can help reduce(зменшити) costs and possibly lead(приводять) to higher profits.

• Expensive to Create - Developing new packaging can be extremely(надзвичайно) expensive. The costs involved in creating new packaging include: graphic and structural design, production, customer testing, possible destruction(знищення) of leftover(залишкового) 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(намір) of having the design on the market for an extended(тривалий) period of time. In fact, changing a product’s packaging too frequently(надто часто) can have negative effects since customers become conditioned(звикли) to locate(виявляти) the product based on its package and may be confused(спантеличен) if the design is altered(змінено).

• Environmental or Legal Issues – Packaging decisions must also include an assessment(оцінка) of its environmental impact(вплив) especially for products with packages that are frequently(часто) discarded(забраковувати). Packages that are not easily bio-degradable (не здатні до біологічного розкладання) could draw(провокувати) customer and possibly governmental concern(занепокоєння). Also, caution(обережність, застереження) must be exercised(здійснювати, застосовувати, проявляти) in order to create packages that do not infringe(не порушують) on intellectual property(власність), such as copyrights(авторське право), trademarks or patents, held by others.