CHAPTER 2: LECTURE NOTES FOR PACKAGING AND BRANDING PDF

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PAN AFRICAN INSTITUTE FOR DEVELOPMENT -WEST AFRICA (PAID-WA) BUEA DEPARTMENT OF BUSINESS AND MANAGEMENT STUDIES LECTURE NOTES FOR PACKAGING AND BRANDING PROGRAMME: Bsc. MARKETING COURSE TITLE: PACKAGING AND BRANDING COURSE CODE: MAMA213 TOTAL CREDITS: 3 BY NGANG PEREZ (MAJOR 1) 1 WEEK 2: SESSION 2/C...

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PAN AFRICAN INSTITUTE FOR DEVELOPMENT -WEST AFRICA (PAID-WA) BUEA

DEPARTMENT OF BUSINESS AND MANAGEMENT STUDIES

LECTURE NOTES FOR PACKAGING AND BRANDING PROGRAMME: Bsc. MARKETING

COURSE TITLE: PACKAGING AND BRANDING COURSE CODE: MAMA213 TOTAL CREDITS: 3

BY NGANG PEREZ (MAJOR 1)

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WEEK 2: SESSION 2/CHAPTER 2 TYPES AND FUNCTIONS OF PACKAGING 2.0 Brief Introduction: Physical products require packaging to protect them from damage and to present both the product and its brand attractively to a target group of consumers. Packaging provides a surface upon which to communicate information about the product and the brand, and as such, it is an essential element of product branding. Through the use of text, images and other communication devices, packaging can articulate the attributes and benefits of a product to consumers. Packaging also works to convey the brand characteristics that will position it within the minds of consumers and that will ultimately differentiate it from its competitors. Packaging is often the first point of contact that a consumer has with a brand, so it is hugely important that it initially draws their attention and also quickly conveys the messages that both present and support the brand. Communicating a brand message extends beyond the information and visual content of packaging. The physical materials used for packaging products also importantly contribute to the overall brand statement projected. A brand cannot be positioned as a high quality or luxury product if its packaging is fragile and low quality. There has to be a direct correlation between the packaging’s physical attributes and the messages that the brand seeks to project. 2.1 Learning Objectives By the end of this session, students should be able to: •

Identify the different types/levels of packaging

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Outline the characteristics of packaging materials

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Categorize the materials used in packaging

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Bring out the functions of packaging

2.2 Definition of Key Terms (a) Primary Package: Primary packaging is the term used to designate the layer of packaging in immediate contact with the product; in other words, it is the first packaging layer in which the product is contained. As such, primary packaging is constructed both with the product itself and any existing secondary layers of packaging in mind. (b) Secondary Package: Secondary packaging is intended to protect not only the product, but also the primary packaging, which often is the packaging most visible to the consumer in retail displays. The most common examples of secondary packaging include cardboard cartons, cardboard boxes and cardboard/plastic crates.

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(c) Tertiary Packaging: Tertiary packaging is the type which is typically not seen by consumers since it is usually removed by retailers before products are displayed for sale. Examples of tertiary packaging might include brown cardboard boxes, wood pallets and shrink wrap. 2.3 Main Content As a reminder, 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 designing, evaluating, and producing 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, institutional, industrial, and personal use. In this chapter we shall be looking in details the various types of packaging, the characteristics of packaging, the materials used in packaging and the functions of packaging. 2.3.1 Types of Packaging Have you ever wondered why popular companies such as Apple or Nike spend a lot of money on just the packaging of your product or why everything is done so efficiently that it is almost like playing a game of "I spy" to find one single flaw? The answer is simple. It takes money to make money, and that is something not all industries comprehend the same way as others do. Different products command different packaging types. The purpose of product packaging is to protect the product from damage. Packaging not only protects the product during transit from the manufacturer to the retailer, but it also prevents damage while the product sits on retail shelves. Most products have some form of packaging. For example, cometics must have a container and package while apples may have packaging for transport but not to sell the product from the produce department of the local grocery store. When considering the nature of packaging, it must be kept in mind that there may be different packaging classifications or types. However there exist four principal types of packaging which consist of primary packaging, secondary packaging, tertiary packaging and the unit load. The are described below in details. 2.3.1.1 Primary packaging or sales packaging: Primary packaging is the term used to designate the layer of packaging in immediate contact with the product; in other words, it is the first packaging layer in which the product is contained. As such, primary packaging is constructed both with the product itself and any existing secondary layers of packaging in mind. For example, a beverage can, a paper envelope for a tea bag, an inner bag in a cereal box and an individual candy wrap in a pouch are primary packages, and their main function is to contain and preserve the product. Beyond this packaging lies the product itself. Primary packages must be compatible with the product

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Therefore it is said to be the packaging that wraps the product when being sold to the end consumer. It contains the packaging that is in direct contact with the product and the other packaging components (e.g. cap and label) that are needed to complete the sales unit. 2.3.1.2 Secondary packaging or group packaging: Secondary packaging is intended to protect not only the product, but also the primary packaging, which often is the packaging most visible to the consumer in retail displays. The most common examples of secondary packaging include cardboard cartons, cardboard boxes and cardboard/plastic crates. It could be said to be the packaging used for gathering the sales units in order to allow for easy handling practices in the sales environment. This process can be performed by grouping the products in order to sell them to the consumer (e.g. shrink film and corrugated cardboard box). The secondary package contains two or more primary packages and protects the primary packages from damage during distribution and storage. Its main aim is branding display and logistical purposes as well as protecting and collating individual units during storage. Secondary packaging is often used by the beverage, food and cosmetic sectors for displaying primary packs on shelves therefore it is often referred to as display packaging. 2.3.1.3 Tertiary packaging or transport packaging: Tertiary packaging is the type which is typically not seen by consumers since it is usually removed by retailers before products are displayed for sale. Examples of tertiary packaging might include brown cardboard boxes, wood pallets and shrink wrap. It is used to facilitate the handling/ transportation of a series of sales units or secondary packaging in order to prevent the physical damage that may occur during handling/transportation (e.g. corrugated cardboard box). The tertiary package typically contains a number of the primary or secondary packages. Tertiary packaging is used for bulk handling warehouse storage and transport shipping therefore it is also called as “distribution package”. It facilitates the protection, handling and transportation of a series of sales units or secondary packaging in order to group everything into unit loads during transit. This type of packaging is rarely seen by the consumer. 2.3.1.4 Unit load: Unit load is the group of packaging in which more than one delivery packaging are brought together for loading/unloading work (e.g. unit which is repacked on the palette using stretch film).

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Figure 2.1: Types of Packaging

Generally there are two dimensions of the various types of packages. Whether primary or secondary or tertiary every packaged product is either a consumer packaging or an industrial packaging. Consumer packaging: The packaging that starts from a commercial sales point and arrives at the consumer as a sales unit. Industrial packaging: The packaging that is used to deliver goods from producer to consumer. Industrial packaging is, not always but generally, used to transfer goods to the next point of production.

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2.3.2 Packaging Materials Packaging is not supposed to be an obstacle to people buying the products. Anyone who’s purchased anything from Apple in the last decade knows how beautiful an experience unboxing their products is. Not only is this an exciting process but there’s an aura of intrigue that makes the product something greater. Be it plastic, iron, wood or glass, a product ought to be packaged in the most appropriate way to portray its beauty as well as preserve its content. But what are the characteristics of these various packaging materials? 2.3.2.1 Characteristics of Packaging Materials Food and Drug Administration (FDA) of the United States regulates the safety of substances added to food. It also regulates how most food is processed, packaged, and labeled. FDA maintains educational information, databases and listings related to food allergens, ingredients, food additives, color additives and other substances. It accesses program information, inventories, and databases related to food packaging and other substances that come in contact with food. FDA provides regulatory and scientific information about irradiated food and packaging. Irradiation may be used to increase shelf-life and reduce harmful bacteria in meat, poultry, vegetables and other foods. FDA assesses the environmental impact of its regulatory actions. Therefore, manufacturers must include an environmental assessment with their petitions and notifications, unless exempt. According to the FDA, figure 2.2 describes the characteristics of packaging materials Figure 2.2 Characteristics of Packaging Materials

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2.3.2.2 Materials used in Packaging Annual Packaging costs for products bought and sold throughout the world are several billions of dollars. It is estimated that 10% of the overall cost of all retail products is packaging costs. Companies spend millions of dollars using packaging as a form of marketing to attract customers while products are on the shelf. There are a large variety of materials and containers that are used for packaging. Packaging will only vary in every industry depending on how the product will be marketed. Different industries will definitely use different types of packaging but the objective will still remain constant. As most businessmen would always say packaging can be the difference in successfully shipping a product to the market in one piece or in pieces. The right packaging material can be the difference between successfully shipping a fragile item or having it arrive in pieces. Some factors that should be considered when choosing a packaging material include the strength of the item being packed, its weight, the value of the item, and whether the package will be subjected to moisture or other adverse conditions. If you are unsure how much protection your item needs, choose the stronger packaging material, just in case. Figure 2.3 illustrates the different kinds of basic materials used for packaging: Figure 2.3 Basic Packaging Materials

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2.3.3The Functions of Packaging There are different functions of packaging. Brands should always be aware of all these kinds of purpose to have a well done plan when they start to create and design package for their products. The complexity of packaging has increased during the last years. Today, no company can manage this process without the right technology and the right workflow plan. A well organize program can simplify the packing process and ensure everything runs efficiently. Basically there are four functions of packaging which are containment, protection, convenience and communication. 2.3.3.1 Containment This function of packaging is so obvious as to be overlooked by many, but it is probably the basic function of packaging. With the exception of large, discrete products, all other products must be contained before they can be moved from one place to another. The "package", whether it be a milk bottle or a bulk cement rail wagon, must contain the product to function successfully. Without containment, pollution could become widespread. The containment function of packaging makes a huge contribution to protecting the environment from the myriad of products, which are moved from one place to another on numerous occasions each day in any modern society. Faulty packaging (or under packaging) could result in major pollution of the environment. A study of packaging systems in China (Packaging Today – Australia 1979) found that: • 17.5% of the country’s cement is lost in transit • 50% of grain is lost in transit • 20% of all glass is damaged before it can be used • 40% of microscopes are broken before reaching the buyer. While in North America, Northern Europe and Australasia only 2% - 3% of food is lost through spoilage, in developing countries food spoilage and damage is estimated to be between 30 to 50% of production. This is supported by information from Russia from the 1970s and 1980s, where a lack of packaging, distribution and storage facilities resulted in annual losses of: • 45% of fresh vegetables • 55% of fresh fruit • 70% of potatoes • 50% of grain • One million tons of meat • One and a half million ton of fish 8

A study by Harvey Alter of US Chamber of Commerce provides strong evidence that packaging saves waste. It shows that there is a strong relationship between the amount of packaging waste and the amount of food waste in municipal solid waste (MSW) worldwide: as the amount of packaging increased, the amount of food waste is decreased. Note this could also be partly accounted for by the high use of refrigerators in the countries that have high packaging waste figures. 2.3.3.2 Protection This is often regarded as the primary function of the package: to protect its contents from outside environmental effects, be they water, moisture vapour, gases, odours, microorganisms, dust, shocks, vibrations, compressive forces, etc., and to protect the environment from the product. This is especially important for those products such as toxic chemicals which may seriously damage the environment. In the case of the majority of food products, the protection afforded by the package is an essential part of the preservation process. For example, aseptically packaged milk and fruit juices in cartons only remain aseptic for as long as the package provides protection; vacuum-packaged meat will not achieve its desired shelf life if the package permits oxygen to enter. In general, once the integrity of the package is breached, the product is no longer preserved. Packaging also protects or conserves much of the energy expended during the production and processing of the product. For example, to produce, transport, sell and store 1 kg of bread requires 15.8 mega joules (MJ) of energy. This energy is required in the form of transport fuel, heat, power and refrigeration in farming and milling the wheat, baking and retailing the bread, and in distributing both the raw materials and the finished product. To produce the polyethylene bag to package a 1 kg loaf of bread requires 1.4 MJ of energy. This means that each unit of energy in the packaging protects eleven units of energy in the product. While eliminating the packaging might save 1.4 MJ of energy, it would also lead to spoilage of the bread and a consequent loss of 15.8 MJ of energy. Since the 1980's consumer demand for tamper-evident packaging has increased. In 1982 six people died from cyanide in the US following the malicious tampering of Tylenol painkiller capsules. The UK baby food market suffered a dramatic downturn in 1990 after a series of tampering incidents involving glass deliberately added to the baby food containers. Along with requirements for childresistant closures on pharmaceutical and house hold chemicals, the need for tamper-evident features is necessarily increasing the complexity of packaging and hence its protection features. 2.3.3.3 Convenience Modern industrialized societies have brought about tremendous changes in life styles and the packaging industry has had to respond to those changes. One of the major changes has been in the nature of the family and the role of women. Now an ever-increasing number of households are

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single-person; many couples either delay having children or opt not to at all; there is a greater percentage than ever before of women in the work force. All these changes, as well as other factors such as the trend towards "grazing" (i.e. eating snack type meals frequently but on-the-run rather than regular meals), the demand for a wide variety of food and drink at outdoor functions such as sports events, and increased leisure time, have created a demand for greater convenience in household products: foods which are pre-prepared and can be cooked or reheated in a very short time, preferably without removing them from their primary package; condiments that can be applied simply through aerosol or pump action packages; dispensers for sauces or dressings which minimize mess, etc. Thus packaging plays an important role in allowing products to be used conveniently. Two other aspects of convenience are important in package design. One of these can best be described as the apportionment function of packaging. In this context, the package functions by reducing the output from industrial production to a manageable, desirable "consumer" size. Thus a vat of wine is "apportioned" by filling into bottles; a churn of butter is "apportioned" by packaging into 10 gram minipats and minitubs; a batch of ice cream is "apportioned" by filling into 2 litre plastic tubs. Put simply, the large scale production of products which characterizes a modern society could not succeed without the apportionment function of packaging. The relative cheapness of consumer products is largely because of their production on an enormous scale and the associated savings which result. But as the scale of production has increased, so too has the need for effective methods of apportioning the product into consumer-sized dimensions. An associated aspect is the shape (relative proportions) of the primary package in relation to convenience in use by consumers (e.g. easy to hold, open and pour as appropriate) and efficiency in building into secondary and tertiary packages. In the movement of packaged goods in interstate and international trade, it is clearly inefficient to handle each primary package individually. Here packaging plays another very important role in permitting primary packages to be unitized into secondary packages (e.g. placed inside a corrugated case) and then for these secondary packages to be unitized into a tertiary package (e.g. a stretch-wrapped pallet). This unitizing activity can be carried a further stage to produce a quaternary package (e.g. a container which is loaded with several pallets). If the dimensions of the primary and secondary packages are optimal, then the maximum space available on the pallet can be used. As a consequence of this unitizing function, materials handling is optimized since only a minimal number of discrete packages or loads need to be handled. 2.3.3.4 Communication There is an old saying that "a package must protect what it sells and sell what it protects". It may be old, but it is still true; a package functions as a "silent salesman". The modern methods of consumer marketing would fail were it not for the messages communicated by the package. The ability of consumers to instantly recognize produ...