Packaging plays an important role in marketing by influencing purchase decisions. Research shows that new packaging can significantly increase sales by conveying brand messages effectively and offering convenience. For example, introducing combo meals increased orders at fast food restaurants by bundling items together conveniently. A brewery saw a 25% rise in ale sales after switching to a distinctive bottle design and updating labels. Heinz also aimed to improve convenience with a new ketchup packet that can both dip and squeeze out product easily. Effective packaging promotes products and influences consumers' choices.

1. Packaging

2. 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.

3. Packaging….
Packaging has an enormous impact on each brand's
success, as it directly impacts the many purchase
decisions that are made at the point-of-sale, and can
also influence customer satisfaction and likelihood of
re-purchase.
However, many companies lack consistent and
consumer-driven processes for guiding packaging
decisions, and either forgo packaging research
altogether or use it inappropriately. As a result, they
make unnecessary packaging changes, or fail to
invest in new packaging systems that could drive
sales.

4. Packaging Research
 Package graphics and copy are critical marketing
variables in many product categories, particularly
for non-advertised or under-advertised brands in
self-serve shopping environments.
 The package on a retail shelf is the last
opportunity to influence consumers before they
decide to buy. It’s the final sales pitch at the
“moment of truth,” when the brand-choice
decision is made.
 The better the package design and copy, the
greater is the likelihood that consumers will choose
that brand. Any new package design, or significant
change in an existing package, should always be
subjected to the scrutiny of objective consumer
research.

5. Procedure of Packaging
research
 Package Optimization
 Package Screen
 Package Check
 Package Test
Custom/Ad Hoc Packaging Research
 Shelf Impact
 Qualitative Research

6. Package Optimization
 Once the basic variables of effective packaging for a brand
are identified through qualitative research, PackageOpt™ is a
research method to help create prototype packaging
concepts, using choice-modeling experiments.
 Different brand name treatments, messages, themes,
illustrations, imagery, colors, layouts, etc., can represent
thousands of possible package designs.
 Each respondent usually sees five to 10 scenarios (i.e.,
combinations of variables). PackageOpt™ tests subsets of all
of these possible combinations to predict the effectiveness of
every possible set of elements.
 The top 10 or top 15 packaging concepts are identified for
additional package testing, beginning with PackageScreen

7. Package Screen
 A low-cost packaging research system to evaluate early-stage
packaging ideas and concepts in batches of 10 to 20 at a time.
 The package design process typically begins with the creation
of a large number of "rough" or early-stage designs. The
research objective is to identify the package designs that
resonate with consumers, so that creative efforts can be
focused on further development of the better designs.
PackageScreen® is our Internet-based system to accomplish
this winnowing task
Working
 A representative sample of 200 to 300 target audience
consumers are recruited from our Internet panel. These
participants are invited to come to our encrypted Webserver
and view the early-stage package designs. Each respondents
sees all of the package designs one at a time (front panel only)
on his/her computer monitor, in randomized order. Then each
person views the package designs a second time and answers
a series of questions about each design. The answers to the
survey are fed into a mathematical model to calculate an overall
score for each design. The highest-rated designs are
recommended for further development.

8. PackageCheck
 A proprietary Internet-based, monadic packaging research
pretesting system to evaluate early-stage packaging ideas.
 The next step in the design process is to learn more about the
better designs so that further improvements can be made.
PackageCheck® provides this diagnostic feedback.
Working
A representative sample of target-audience consumers are
recruited to visit our website and view each package design.
The respondents see only one package design (i.e., a monadic
test) and then answer a series of questions about their
reactions, including a series of open-ended questions. The
report includes answers to standard questions, compared to
Decision Analyst's action standards, as well as verbatim
responses to open-ended questions. The verbatim detail is
valuable to creative teams as they strive to improve the graphic
design, as well as the copy, on the package. A typical Package
Check study is based on 75 completed interviews.

9. PackageTest
 A comprehensive, Internet-based packaging research system
to evaluate finished (or near-finished) package designs.
 As packages near the end of the design process, a more
complete evaluation is required, with comprehensive
measurements to assess all of the important elements of
package design
Working
 A representative sample is recruited from one of our
worldwide Internet panels, and qualified respondents are
invited to evaluate the package design. Recommended
sample size is 300. Respondents first see the package's front
panel, and later view the other panels. The research design is
monadic (i.e., no respondent evaluates more than one
package design). Then the respondents complete a battery of
questions and diagnostic ratings about the package. The
report includes answers to standard questions, as well as the
coded responses to all open-ended questions, along with our
analysis and interpretation.
 Our SellingPower™ mathematical model, based on a
number of key variables, calculates an overall score for the
package design and compares it to our action standards

10. Custom/Ad Hoc Packaging Research
 Shelf Impact
 Regardless of the method of testing, one of the focal points of
package research is the shelf impact or attention value of the
package in the context of competitive packages. Does the
consumer notice the package on the shelf? Can the
consumer quickly identify the brand? Is the package
appealing enough that the brand gets considered for
purchase?
 To evaluate shelf impact, we typically create representative
displays of the test package in a competitive environment.
The test package is rotated within the display. The displays
(with the rotations) are shown to a representative sample of
consumers. The respondents are questioned about what they
see and what they understand as the length-of-time exposure
increases. This methodology helps determine the visibility (or
attention value) of a test package, relative to competitive
packages. The attention value and brand registration of every
package design are constant focal points of Decision
Analyst‟s research.

11. Qualitative Research
 Before a new package is designed (or redesigned),
qualitative research is always recommended. The
understanding produced by the qualitative research helps in
the package design process, and helps identify the critical
variables to include in the quantitative package testing later
on. Qualitative research is also valuable in learning how to
improve preliminary designs, before those designs go into
quantitative screening and testing.
 Depth interviews are especially valuable for exploring
package graphics and copy. What is the package
communicating? What is the package failing to
communicate? Is the package registering the brand name?
What impressions of the brand are conveyed by the
package? What elements or symbols on the package are
most appealing? Most noticeable? What package elements or
symbols resonate with consumers? What about the colors?
What are they communicating? What information is missing?
Does the consumer have unanswered questions? How does
the package compare to competitive packages? And, based
on the packages alone, which brand would they choose and
why? The consumer‟s reactions to every detail of package
graphics and copy are explored in the depth interview

12. key measurement in Packaging
research
◦ Attention value of the package design
◦ Purchase intent and “share of market”
versus competitive packages
◦ Expected purchase frequency
◦ Brand fit or compatibility
◦ Image projected by the package design
◦ Pricing expectations related to the
package design

13. Dangers for Established Brands
 In the final evaluation of new package designs for an
established brand, great care must be taken to ensure that
the new package design is not so radical as to break
“continuity” with existing consumers. We have seen radical
new package designs trigger precipitous declines in a brand‟s
market share. The greater a brand‟s market share, the
greater the risks associated with a radical change in package
design. If a brand has a tiny market share, the downside risks
of a new package design are much lower. Any radical change
in package design for an established brand should be
supported with massive advertising, as though a totally new
product were being introduced.

14.  Finally, if a brand is not adequately supported with
media advertising, the packaging must play a
greater role in the brand‟s marketing. Without
advertising support, the face of the package must
be thought of as the principal advertising medium.
This makes packaging research even more
important, because the package has to carry the
preponderant burden of marketing the brand.
 An optimal package can create positive momentum
for a brand. Major competitive packages change
from time to time, however, and destabilize the
product category, so package designs must be
updated periodically and the whole research cycle
must be repeated. Packaging is a moving target.
Winning the competitive battle at the final point of
purchase, the ultimate moment of truth, is the
promise and potential of good packaging research.

15. LEVELS OF PACKAGING
Packaging
Levels

16. PRIMARY PACKAGING
 The customer actually handles the product
in its primary packaging.
 This level of packaging may be the one that
the consumer sees.
 It is kept till it is opened or throughout the
product‟s life.
Examples

17. SECONDARY PACKAGING
 The Secondary packaging provides
information to the consumer about the
product.
 Additional layers of protection that are kept
till the product is ready for use.
 Examples

18. TRANSPORTATION PACKAGING
It Refers to the further packaging components
necessary for :-
 Storage,
 Identification,
 Protection against damage and
 Durability.

19. Innovation in packaging

20. How to plan before packaging
Marketers charged with the task of launching a new
product or refreshing the look of an established brand
should conduct research to:
Understand how consumers shop the product category and what role
packaging plays in purchase decisions
Understand brand and product perceptions and how deeply rooted they
are
 Identify unmet needs
Understand how the new packaging departs from consumers’ expectations
and what visual elements can be used to preserve brand
identity
 Assesshow the new packaging will stand out in a cluttered
environment among competitor brands
Test different packaging concepts and evaluate the effectiveness of
graphic elements and label information in adding uniqueness and
encouraging purchase intent

21. NECESSITIES OF PACKAGING
 Packaging is a very important marketing strategy to
glamorize your product in order to attract the
consumer‟s attention. Sometimes packaging is so
important that it cost more than the product itself in
order to lure the consumers to buy it.
 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.
 Packaging should definitely be included in the 4
major P’s of marketing (Product, Place, Promotion
and Price).

22. FUNCTIONS OF PACKAGING
 Product Identification:- Packaging greatly
helps in identification of products.
 Product Protection:- Packaging protects the
contents of a product from spoilage,
breakage, leakage, etc.
 Facilitating the use of product:- Packaging
should be convenience to open, handle and
use for the consumers.
 Product Promotion:- Packaging is also used
for promotional and attracting the attention
of the people while purchasing.

23. The purposes of packaging
 Physical protection – The objects enclosed in the package
may require protection from, among other things, mechanical
shock, vibration, electrostatic
discharge, compression, temperature, etc.
 Barrier protection – A barrier from oxygen, water
vapor, dust, etc., is often required. Permeation is a critical
factor in design. Some packages contain desiccants or
Oxygen absorbers to help extend shelf life. Modified
atmospheresor controlled atmospheres are also maintained
in some food packages. Keeping the contents
clean, fresh, sterile and safe for the intended shelf life is a
primary function.
 Containment or agglomeration – Small objects are typically
grouped together in one package for reasons of efficiency.
For example, a single box of 1000 pencils requires less
physical handling than 1000 single pencils.

24.  Information transmission – Packages and labels
communicate how to use, transport, recycle, or dispose of the
package or product. With pharmaceuticals, food, medical,
and chemical products, some types of information are
required by governments. Some packages and labels also
are used for track and trace purposes.
 Marketing – The packaging and labels can be used by
marketers to encourage potential buyers to purchase the
product. Package graphic design and physical design have
been important and constantly evolving phenomenon for
several decades. Marketing communications and graphic
design are applied to the surface of the package and (in
many cases) the point of sale display.
 Convenience – Packages can have features that add
convenience in distribution, handling, stacking, display, sale,
opening, reclosing, use, dispensing, reuse, recycling, and
ease of disposal

25. IMPORTANCE OF PACKAGING

26. Increase Sales through Better Packaging
 This is about the success of combo meals at the fast food
restaurants. Before I tell you how you can apply this to any
business, I will summarize some key concepts from the study.
 1. The customer ordered the combo meal even if there was
not a price discount.
 2. The customer ordered less food when there were no
combo meals offered on the menu.
 What were the benefits to the customer if there was not a
price discount?
 The customer valued the convenience of ordering the whole
meal with one request, i.e. ” I will have the number 3″.
 You can see that the customer appreciated this convenience,
because they ordered less food when they had to read the
menu and make individual choices.

27. New packaging leads to 25% increase in
Wahoo Premium Ale sales
 Western Australia’s Gage Roads Brewing Co. has reported a
25% year-on-year increase in Wahoo Premium Ale sales, since
the introduction of O-I’s Vortex™ bottle and changes to the
beer’s label and secondary packaging.
 In June last year, Gage Roads became the first company in Asia
Pacific to launch the new internal embossed Vortex bottle,
featuring distinctive grooves on the inside of the bottle’s neck
while providing a smooth exterior for easy labelling.
 Gage Roads Brewing Co.’s CEO, John Hoedemaker, said the
changes to Wahoo Premium Ale’s packaging had a significant
impact on sales.

28.  “The introduction of the Vortex™ bottle and colour
changes to the brand‟s label and secondary
packaging had a positive impact on sales,” said Mr
Hoedemaker.
 “We‟re delighted this innovation in glass packaging
has led to more consumers experiencing Wahoo
and its award winning great taste.”
 “The Vortex™ bottle was one of the biggest
packaging innovations in 2011 and it‟s no surprise
that it helped achieve a great sales result for Gage
Roads and its Wahoo Premium Ale,” said O-I
Oceania „s Vice President Sales and Marketing,
Jacqueline Moth. The Gage Roads Wahoo
Vortex™ bottle was designed in Melbourne and is
manufactured at O-I‟s Sydney plant. Other internal
embossing designs are available to customers
wishing to explore this unique branding opportunity.

29.  Heinz is at it again. They have found another way to revamp their
ketchup packaging, this time on a smaller scale. We all have been in the
situation involving those frustrating and hard to open ketchup packets.
Well Heinz has developed a solution to that problem by introducing
their Dip & Squeeze packaging. Not only can you peel back the label
and dip food into the ketchup, it can also be squeezed out easily by
tearing off the top. Also there is no need to grab handfuls of packets
because one Heinz Dip & Squeeze holds three times as much ketchup
as the traditional packet.
 The new packaging allows for consumers to enjoy the convenience as
well as ease of use. Heinz released their Dip & Squeeze ketchup in 2010
and since then they have traveled 5500 miles on a road trip to provide
consumers with a chance to try the new ketchup packaging and listen
to their feedback. Heinz has received an overwhelming amount of
positive feedback, which has helped bring the Dip & Squeeze ketchup
packaging to consumers nationwide.

30.  Coca-Cola has made fridge friendly packaging for its 12
packs. The packaging design is slimmer making it easy to
store in the fridge and takes up less room. The packaging is
also designed to dispense after one can gets taken out.
 These examples are just a few of the cupboard to fridge
packaging designs that are present. Keep your eyes open for
other packaging designs that have left the cupboard and
moved to the fridge.

31.  The Heinz® Fridge Door Fit™ bottle launched in 2006 offering
storage flexibility – which increased ketchup consumption
by 68% - is a good example of how packaging can drive sales.
Consumers may not be aware they have this type of needs until
they see a solution. In this case new brain connections sprout
and with them new expectations about a product or a whole
product category are born.