Chapter 31 Branding, Packaging, and Labeling 1

Marketing Essentials

Packaging and Labeling

Chapter 31 Branding, Packaging, and Labeling 2

Packaging and Labeling

Why It's Important

While branding gives a specific brand personality, packaging puts a face on a product. Effective packaging creates a good impression, helps to sell the product, and communicates benefits to customers.

Chapter 31 Branding, Packaging, and Labeling 3

Packaging and Labeling

A package is the physical container or wrapping for a product.

10 percent of a product's retail price is spent on package development and design and the package itself.

Packaging

Chapter 31 Branding, Packaging, and Labeling 4

Packaging and Labeling

Functions of Packaging

A package is a selling tool. Its functions include: promoting and selling the product defining product identity providing information meeting customer needs ensuring safe use protecting the product

Chapter 31 Branding, Packaging, and Labeling 5

Packaging and Labeling

Functions of Packaging

Promoting and Selling the Product Customer reaction to a package and brand name is an important factor in determining marketplace success or failure.

Defining Product Identity Packages can invoke prestige, convenience, status, or other positive attributes.

Slide 1 of 3

Chapter 31 Branding, Packaging, and Labeling 6

Packaging and Labeling

Functions of Packaging

Providing Information Packages give directions for product use, information about contents, guarantees, nutritional information, and potential hazards.

Meeting Customer Needs Various sizes meet the needs of different market segments: family packs meet the needs of larger families; smaller packages are made for individuals.

Slide 2 of 3

Chapter 31 Branding, Packaging, and Labeling 7

Packaging and Labeling

Ensuring Safe Use Plastic packaging, tamper-resistant packaging, and childproof containers protect customers.

Protecting the Product Packages protect a product during shipping, storage, and display, prevent tampering, and sometimes help prevent shoplifting of the product.

Functions of Packaging

Slide 3 of 3

Chapter 31 Branding, Packaging, and Labeling 8

Packaging and Labeling

Product packaging offers companies unique opportunities to address lifestyle changes as well as social and political concerns. Companies often consider using:

environmentally friendly packaging packaging that makes social and

political statements

Contemporary Packaging Issues

Slide 1 of 2

Chapter 31 Branding, Packaging, and Labeling 9

Packaging and Labeling

Contemporary Packaging Issues

Environmental Packaging Some customers are willing to pay more for products with packages that are reusable, recyclable, less wasteful, and safer for the environment.

Cause Packaging Some companies use packages to promote social issues. Example: Ben & Jerry’s Homemade ice cream cartons promote saving the rain forest.

Slide 2 of 2

Chapter 31 Branding, Packaging, and Labeling 10

Packaging and Labeling

LabelingA label is an information tag, wrapper, seal, or imprinted message that is attached to a product or its package. A label’s purpose is to:

inform about a product’s contents and direction for use

protect companies from legal liability contain a brand name, logo, ingredients,

special promotional messages, and other useful information

Chapter 31 Branding, Packaging, and Labeling 11

Packaging and Labeling

Labeling Laws

Many package labels must meet local, state, and federal standards to prevent manufacturers from misleading consumers.