Role of Packaging and Labelling in International Markets

Labelling

Like in the branding decision, the informational and promotional contents of the product label are influenced as well by the legal requirements as by the exporting firm’s product and promotion policy.

Labelling not only serves to express the contents of the product, but maybe promotional. For example, the EU is now putting very stringent regulations in force on labelling, even to the degree that the pesticides and insecticides used in horticultural produce have to be listed. This could be very demanding for producers, especially small-scale ones, where production techniques may not be standardised. Government labelling regulations vary from country to country. Labels may have to be multilingual, especially if the product is a world brand. Translation could be a problem with many words being translated with difficulty. Again, labelling is expensive, and in promotion terms non-standard labels are more expensive than standard ones.

While the aspects concerning name of manufacturer, date of manufacture, shelf-life, weight, contents, ingredients, price and handling instructions vary with the legal requirements and the international marketing policy of the firm, the languages) of the host country, and the level of literacy of its people determine the graphics and visuals to be used on the product label.

Importance of labelling in marketing

Marketers use labelling to their products to bring identification. This kind of labelling helps a viewer to differentiate the product from the rest in the shelves of the market. There are several used of the label for the products in the market.

Labelling is used for packaging the product. In marketing, a marketer can also use a sticker inedible product to impart knowledge of the ingredients of the food items. This helps to spread awareness among the customers about the item they are consuming and labelling also helps to mention ingredients.

A label needs to comply with the Competition and Consumer Act 2010 (CCA). This Act is required to give information to consumers, such as:

• The mandatory consumer product information standards under the CCA
• Industry specific regulations, such as the Food Standards Code
• Labels required by customs for some imported products under the Commerce (Trade Descriptions) Act.

Packaging

Packaging is an integral component of a product and it plays an important role in its salability. Packaging is no longer a mere outer covering of a product for its protection; it is very much a contributing factor for its increasing marketability. A vividly beautiful packaging of a product, to some extent, develops a positive image about it in the minds of the consumers. Thus packaging is not merely used as a means of product’s protection during transportation and storage but it is also used as a marketing and promotional tool.

Earlier the role of packaging was merely to protect the product from sun and dust and also from damage during handling. With advancement of the nations, new legislation has been incorporated for the merchandising of the goods. This has resulted into the importance as well as the necessity for an appropriate quality and type of packaging.

A package as simple as it may look, is influenced in its design, material, shape and weight by a large number of factors. Packaging serves many purposes. It protects the product from damage, which could be incurred in handling and transportation and also has a promotional aspect. It can be very expensive. ‘Size, unit type, weight and volume are very important in packaging. For aircraft cargo the; package needs to be light but strong, for sea cargo containers are often the best form. The customer may also decide the best form of packaging. Costs of packaging have always to be weighed against the advantage gained by it.

Increasingly, environmental aspects are coming into play. Packaging which is nondegradable; plastic, for example; is less in demand. Bio-degradable, recyclable, reusable packaging is now the order of the day. This can be both expensive and demanding for many developing countries.

The important factors of packaging are:

Safety and security of the product within the package in terms of temperature limits, barometric pressure, corrodibility, colour retention, vibrations, and even the ecological effect of the package in itself:

• Transportation hazards, weight and package construction in case of air shipment, and the handling and warehousing needs of the package.
• Customer perceptions in terms of shape, size, colour, storage life, reusability and aesthetics.
• Product promotion in terms of display value of the package, shelf-life, package attractiveness as a silent salesperson, brand and label information and sales promotion aids like coupons, stickers, etc.
• Compliance with legal requirements, and how much does the package cost in the light of the role it performs.

These factors force the exporting firm to keep in touch with innovative packaging materials and be on the look out to make their packaging cost effective.

Importance of Packaging

Depending on the products and the industry, the packaging can have different levels of importance. Sometimes packaging becomes the most important way of delivering the good, and its cost represents the largest part of the total cost of the product.

Packaging becomes the most important way of delivering the goods, and its cost represents the largest part of the total cost of the product”. Packaging serves a number of utilities which the marketer’s want to communicate to the consumer to attract him to purchase his brand. Through packaging the important information about the product, price, manufacturer and the consumption precautions etc. can be conveyed to the buyer.

Product packaging decisions are very important and the marketers need to be very careful about it, as packaging is sometimes the key factor of success or failure of a new launch.

Packaging, as a function, has two separate dimensions – the science and technology and the behavioural aspect related to the art of product design which enhances the value of the contents and passes on the impression to the consumer directly or subtly.

Overall, it can be concluded that packaging is an integral and an important component of the product. It not only helps in protecting the product from being damaged during its handling but also protects it as an attractive packaging works as a silent salesman.

Packaging Decisions

Packaging decisions are very important for the marketing because now-a- days the consumers pay a lot of attention and care for selecting a product. They usually prefer a product which is adequately packaged; the outer cover contains all the necessary information about the product and the manufacturer and also the method of using, consuming or operating the product. More so, packaging carries some aesthetic value also. So, in the modern days, the marketing managers pay a lot of care for making the packaging decisions of the products being marketed by them.

The marketers, in the present era of cut throat competition, are also turning to innovative packaging in order to establish a distinctive edge over the competitor’s brands. This is especially true in the case of marketing of consumer products, cosmetics, perfumes, toiletries and other personal care products. Marketers try to add value to their brands by way to packaging as a tool. Thus they want to pass on greater benefits to the customers and attempt to increase their brand’s value.

The marketers have to take the packaging decisions which should meet the twin tasks of keeping the packaging cost low and yet carry it safely enough up to the customer without any damage. It might not always be possible to merely reduce the cost of packaging without affecting the various components of the marketing mix because the packaging decisions affect all the four components of the marketing mix. Good and attractive packaging adds to product attraction but not without adding to its cost. It may also add to the convenience of handling and act as a tool of promotion. So, the marketing firms have to take such decisions which will be beneficial for all and the overall equation of cost benefit analysis is favourable for each.

Packaging designs are also of vital importance as they often help the consumer to recognize the product and literally sell it off the shelf, especially at the point of sale. The labelling used on the packaging also serves as a means of communication about the product contents, quality, quantity etc. e.g. eco-labelling on the packaging of a product is a proof that the product is environmentally friendly.

Since the last few years, the packaging material has become more and more an object of creativity of the marketing people rather than the domain of the production and technical engineers. From being functional initially and addressing the need for protection during the time in-between production and consumption of the products, packaging is becoming vehicle for communication, used to effectively influence the end consumer.

These days when we talk about innovation, we not only refer to product quality but include its packaging also. These days the consumer readily pays the price of the packaging if it helps in adding to its quality and hygiene, so therefore, the marketers should take decisions in favor of improving the acceptance level of their brand by adopting appropriate packaging designs made with appropriate materials.

Useful Features of Packaging

Packaging deals with the nature of the container/wrapper, its size, shape, color and the message printed on it. It represents the talents of the various specialists viz. researcher, designer, engineer, marketer and others.

The packaging of a product may also attract the attention of the consumers at the very first sight if its features appear to be attractive. The marketers need to take care of these marketing aspects also.

The usual features of packaging are the following:

a) The container should be strong so that it can stand the strain of transportation and handling. It should be strong also to ensure a long shelf-life.

b) While being strong, it should avoid being too heavy so that it remains easy to handle and inexpensive on freight.

Over and above the usual features, the packaging should also have certain features from the marketing angle, as a well-designed packaging is often described as the silent sales representative. These marketing features of packaging are as follows:

a) It must advertise the brand and the manufacturer.

b) It must be distinctive and capable of ‘differentiating’ the product.

c) It must be suitable for display.

d) It must be helpful in identifying the product.

e) It must carry the brand name, brand / trade mark and all the other required information.

f) It must be attractive.

g) It must be so designed as to add convenience for carrying and handling the product.

h) It should require the minimum shelf space.

i) The colours and the material used for outer packaging must not create any socially or psychologically bad image about the product.

j) Packaging must be capable of keeping intact the hygiene of the product for its shelf life.