Packaging, Labeling,Warranties, and Guarantees

Some product packages—such as the Coke bottle and Red Bull can—are world famous. Many
marketers have called packaging a fifth P, along with price, product, place, and promotion.
Most, however, treat packaging and labeling as an element of product strategy. Warranties
and guarantees can also be an important part of the product strategy and often appear on the
package.

PackagingPackaging includes all the activities of designing and producing the container for a product.
Packages might have up to three layers. Cool Water cologne comes in a bottle (primary package) in
a cardboard box (secondary package) in a corrugated box (shipping package) containing six dozen
bottles in cardboard boxes.
The package is the buyer’s first encounter with the product. A good package draws the consumer
in and encourages product choice. In effect, they can act as “five-second commercials” for the product.
Packaging also affects consumers’ later product experiences when they go to open the package
and use the product at home. Some packages can even be attractively displayed at home. Distinctive
packaging like that for Kiwi shoe polish, Altoids mints, and Absolut vodka is an important part of a
brand’s equity.56
Various factors contribute to the growing use of packaging as a marketing tool:
• Self-service. An increasing number of products are sold on a self-serve basis. In an average supermarket,
which may stock 15,000 items, the typical shopper passes some 300 products per
minute. Given that 50 percent to 70 percent of all purchases are made in the store, the effective
package must perform many sales tasks: attract attention, describe the product’s features, create
consumer confidence, and make a favorable overall impression.
• Consumer affluence. Rising affluence means consumers are willing to pay a little more for the
convenience, appearance, dependability, and prestige of better packages.
• Company and brand image. Packages contribute to instant recognition of the company or
brand. In the store, they can create a billboard effect, such as Garnier Fructis with its bright
green packaging in the hair care aisle.
• Innovation opportunity. Unique or innovative packaging such as resealable spouts can bring
big benefits to consumers and profits to producers.
1. Identify the brand.
2. Convey descriptive and persuasive information.
3. Facilitate product transportation and protection.
4. Assist at-home storage.
5. Aid product consumption.
To achieve these objectives and satisfy consumers’ desires, marketers must choose the
aesthetic and functional components of packaging correctly. Aesthetic considerations relate
to a package’s size and shape, material, color, text, and graphics. There are a number of
factors and criteria in each area.
Color is a particularly important aspect of packaging and carries different meanings
in different cultures and market segments. Table 12.3 summarizes the beliefs of
some visual marketing experts about its role.