Marketing Management, Millenium Edition - epiheirimatikotita.gr

Packaging and Labeling 195ing itself the Uncola and positioning itself as a youthful and refreshing drink, the oneto reach for instead of a cola. Thus, 7-Up successfully established itself as the alternativeto colas, not just another soft drink.PACKAGING AND LABELINGMost physical products have to be packaged and labeled. Some packages—such as theCoke bottle—are world famous. Many marketers have called packaging a fifth P, alongwith price, product, place, and promotion; however, packaging and labeling are usuallytreated as an element of product strategy.PackagingPackaging includes the activities of designing and producing the container for a product.The container is called the package, and it might include up to three levels of material.Old Spice aftershave lotion is in a bottle (primary package) that is in a cardboardbox (secondary package) that is in a corrugated box (shipping package) containing sixdozen boxes of Old Spice.The following factors have contributed to packaging’s growing use as a potentmarketing tool:➤➤➤➤Self-service: The typical supermarket shopper passes by some 300 items per minute.Given that 53 percent of all purchases are made on impulse, an effective packageattracts attention, describes features, creates confidence, and makes a favorableimpression.Consumer affluence: Rising consumer affluence means consumers are willing to pay alittle more for the convenience, appearance, dependability, and prestige of betterpackages.Company and brand image: Packages contribute to instant recognition of the companyor brand. Campbell Soup estimates that the average shopper sees its red and whitecan 76 times a year, the equivalent of $26 million worth of advertising.Innovation opportunity: Innovative packaging can bring benefits to consumers andprofits to producers. Toothpaste pump dispensers, for example, have captured 12percent of the toothpaste market because they are more convenient and lessmessy.Developing an effective package for a new product requires several decisions.The first task is to establish the packaging concept, defining what the package shouldbasically be or do for the particular product. Then decisions must be made on additionalelements—size, shape, materials, color, text, and brand mark, plus the use ofany “tamperproof” devices. All packaging elements must be in harmony and, in turn,must harmonize with the product’s pricing, advertising, and other marketing elements.Next come engineering tests to ensure that the package stands up under normalconditions; visual tests, to ensure that the script is legible and the colors harmonious;dealer tests, to ensure that dealers find the packages attractive and easy tohandle; and, finally, consumer tests, to ensure favorable response.Tetra Pak, a major Swedish multinational, provides an example of the power ofinnovative packaging and customer orientation. The firm invented an “aseptic” packagethat enables milk, fruit juice, and other perishable liquid foods to be distributedwithout refrigeration. This allows dairies to distribute milk over a wider area withoutinvesting in refrigerated trucks and facilities. Supermarkets can carry Tetra Pak pack-